GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
CONSOLIDATED FINANCIAL STATEMENTS
FOR NINE MONTHS ENDED MAY 31, 2009 AND 2008
(UNAUDITED – PREPARED BY MANAGEMENT)
The financial statements for the nine-month period ended May 31, 2009
have not been reviewed by the Company’s auditors.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEETS
| | MAY 31 | AUGUST 31 |
| | 2009 | 2008 |
| | (Unaudited) |
|
| | |
|
|
ASSETS | |
| |
|
| | |
| |
|
Current | |
| |
|
Cash | $ | 156,047 | $ | 119,831 |
Short-term investments (Note 4) | | 725,570 | | 2,558,945 |
Accounts receivable (Note 5) | | 140,106 | | 177,176 |
Accounts due from related parties (Note 9) | | 13,529 | | - |
Prepaid expenses | | 10,592 | | 26,490 |
| | | 1,045,844 | | 2,882,442 |
| | | | | |
Exploration Advances | | 23,461 | | 20,171 |
Mineral Property Acquisition Costs (Note 6) | | 334,773 | | 334,773 |
Mineral Property Exploration Costs (Note 6) | | 8,321,099 | | 7,449,608 |
Property and Equipment (Note 7) | | 109,356 | | 108,727 |
| | |
| |
|
| | $ | 9,834,533 | $ | 10,795,721 |
| | |
| | |
LIABILITIES | |
| | |
| | |
| | |
Current | |
| | |
Accounts payable and accrued liabilities | $ | 69,431 | $ | 454,703 |
| | |
| |
|
Employment Benefit Obligations | | 46,000 | | 46,000 |
| | | 115,431 | | 500,703 |
| | |
| |
|
SHAREHOLDERS’ EQUITY | |
| |
|
| | |
| |
|
Share Capital (Note 8) | | 19,133,783 | | 19,133,783 |
| | |
| |
|
Contributed Surplus(Note 8) | | 1,562,625 | | 1,511,677 |
| | |
| |
|
Deficit | | (10,977,306) | | (10,350,442) |
| | | 9,719,102 | | 10,295,018 |
| | |
| |
|
| | $ | 9,834,533 | $ | 10,795,721 |
Approved on behalf of the Board of Directors: |
| | | |
“J. Paul Sorbara” | | “Stephen W. Pearce” |
Director | | Director |
The accompanying notes are integral part of these consolidated financial statements.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
(Unaudited)
| | THREE MONTHS ENDED | NINE MONTHS ENDED |
| | May 31 | May 31 |
| | 2009 | 2008 | 2009 | 2008 |
| | | | | |
Expenses |
|
|
|
|
| |
|
|
|
|
Amortization | $ 5,847 | $ 5,096 | $ 17,646 | $ 13,838 |
Automobile | 770 | 801 | 2,101 | 2,227 |
Consulting fees | 19,582 | 15,002 | 50,957 | 45,141 |
Foreign exchange loss | 12,398 | 14,818 | 33,132 | 61,554 |
Investor relations | 2,027 | 42,092 | 29,941 | 115,189 |
Management fees | 30,000 | 30,000 | 90,000 | 90,000 |
Office and general | 20,567 | 45,441 | 41,791 | 116,586 |
Professional fees | 2,002 | 297 | 69,385 | 44,057 |
Rent and utilities | 12,784 | 16,498 | 45,314 | 49,264 |
Transfer agent and filing fees | 6,378 | 20,402 | 14,191 | 41,107 |
Travel | 8,939 | 18,345 | 34,839 | 37,775 |
Stock based compensation | 20,185 | - | 50,948 | 90,888 |
Wages and benefits | 44,035 | 58,777 | 169,561 | 185,859 |
Loss Before The Following | 185,514 | 267,569 | 649,806 | 893,485 |
| | | |
|
|
Gain from sale of fixed assets | - | - | (2,302) | - |
Interest Income | (1,411) | (45,831) | (20,640) | (167,895) |
| |
|
|
|
|
Net Loss For The Period | 184,103 | 221,738 | 626,864 | 725,590 |
| | | |
|
|
Deficit, Beginning Of Period | 10,532,948 | 10,033,217 | 10,350,442 | 9,529,365 |
| | | |
|
|
Deficit, End Of Year Period | $10,717,051 | $10,254,955 | $10,977,306 | $10,254,955 |
| |
|
|
|
|
| |
|
|
|
|
Loss Per Share – Basic And Diluted | $ (0.00) | $ (0.00) | $ (0.00) | $ (0.01) |
| |
|
|
|
|
Weighted Average Number of Shares Outstanding – Basic And Diluted |
60,934,037 |
60,934,037 |
60,934,037 |
60,855,862 |
The accompanying notes are integral part of these consolidated financial statements.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| | THREE MONTHS ENDED | NINE MONTHS ENDED |
| | May 31 | May 31 |
| | 2009 | 2008 | 2009 | 2008 |
| | |
|
|
|
| | | |
|
|
Cash Provided By (Used For) | | |
|
|
| | | |
|
|
Operating Activities | | |
|
|
Net loss for the period | (184,103) | $ (221,738) | $(626,864) | $(725,590) |
Items not affecting cash: | | |
|
|
Amortization | 5,847 | 4,934 | 17,646 | 13,677 |
Gain on sale of property and equipment | - | - | (2,302) | - |
Stock based compensation | 20,185 | - | 50,948 | 90,888 |
Change in non-cash working capital items: | | |
|
|
Accounts receivable | (42,767) | 126,784 | 23,541 | 15,582 |
Accounts payable and accrued liabilities | (19,490) | 84,482 | (385,272) | 161,870 |
Prepaid expenses | 2,405 | (3,406) | 15,898 | 2,276 |
| | (217,923) | (8,944) | (906,405) | (441,297) |
| | | |
|
|
Investing Activities | | |
|
|
Exploration Advances | (3,290) | - | (3.290) | 74,403 |
Expenditures on mineral properties | (22,012) | (1,094,126) | (871,491) | (3,085,513) |
Proceeds from redemption of short term investments |
213,952 |
1,072,000 |
1,833,375 |
3,392,000 |
Purchase of property and equipment | - | - | (21,249) | (40,980) |
Proceeds from sale of property and equipment |
- |
- | 5,276 | -
|
| | 188,650 | (22,126) | 942,621 | 339,910 |
| | | |
|
|
Financing Activities | | |
|
|
Share issuances for cash | - | - | - | 45,000 |
| | - | - | - | 45,000 |
| | | | |
|
Increase (Decrease) In Cash | (29,273) | (31,070) | 36,216 | (56,387) |
| | | |
|
|
Cash Beginning Of Period |
185,320 |
159,261 |
119,831 |
184,578 |
| | | |
|
|
Cash End Of period | 156,047 | $ 128,191 | 156,047 | $ 128,191 |
| | | |
|
|
The accompanying notes are integral part of these consolidated financial statements.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
1.
GOING CONCERN AND NATURE OF OPERATIONS
Golden Goliath Resources Ltd. (the “Company”) was incorporated under the Company Act of British Columbia on June 12, 1996. The Company is a public company listed on the Toronto Stock Venture Exchange (the “TSX.V”), trading under the “GNG” symbol.
The Company’s principal business activity is the exploration of mineral properties in Mexico. The Company has not yet determined whether these properties contain reserves that are economically recoverable.
These interim consolidated financial statements have been prepared on a going-concern basis, which implies that the Company will continue realizing its assets and discharging its liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities, contingent obligations and commitments in other than the normal course of business and at amounts different from those in these financial statements.
The Company had a loss of $626,864 for the nine months ended May 31, 2009, and the Company had a working capital, defined as current assets less current liabilities, as at May 31, 2009, of $930,413, with an accumulated deficit of $10,977,306.
Without additional external funding to meet existing obligations and to finance further exploration and development work on its mineral properties, there is substantial doubt as to the Company’s ability to continue as a going concern. Although the Company has been successful securing financing to date, there can be no assurance that additional funding will be available in the future. The interim consolidated financial statements do not reflect the adjustments to the carrying values of assets and liabilities that would be necessary if the Company were unable to achieve profitable mining operations or obtain adequate financing. Such adjustments could be material.
The recoverability of amounts shown for mineral properties is dependent upon the discovery of economically recoverable reserves, confirmation of the Company’s interest in the underlying mineral concessions, the ability of the Company to obtain financing to complete the development, and to attain future profitable production from the properties or proceeds from disposition.
2.
SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (“GAAP”) as prescribed by The Canadian Institute of Chartered Accountants (“CICA”).
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
2.
SIGNIFICANT ACCOUNTING POLICIES(continued)
a)
Basis of Consolidation
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Minera Delta S.A. de C.V. of Mexico, and 4247 Investments Ltd. of British Columbia. Significant inter-company balances and transactions have been eliminated on consolidation.
b)
Basis of presentation
The accompanying consolidated financial statements for the interim periods ended May 31, 2009 and 2008, are prepared on the basis of accounting principles generally accepted in Canada and are unaudited, but in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary for fair presentation of the financial position, operations and changes in financial results for the interim periods presented. The financial statements for the interim periods are not necessarily indicative of the results to be expected for the full year. These financial statements do not contain the detail or footnote disclosure concerning accounting policies and other matters, which would be included in full year financial statements, and therefore should be read in conjunction with the Company’s audited consolidated financial statements for the year ended August 31, 2008. The accounting policies follow ed by the Company are set out in Note 2 to the audited financial statements for the year ended August 31, 2008, and have been consistently followed in the preparation of these financial statements except that the Company has adopted the following Canadian Institute of Chartered Accountants guidelines effective for the Company’s first interim period commencing September 1, 2008:
3.
NEWLY ADOPTED ACCOUNTING POLICIES
a)
Section 3855 - Financial Instruments – Recognition and Measurement
In accordance with this new standard, the Company now classifies all financial instruments as held-to-maturity, available-for-sale, held-for-trading, loans and receivables or financial liabilities. Financial instruments classified as held-to-maturity, loans and receivables and financial liabilities other than those held-for-trading are measured at amortized cost. Available-for-sale financial instruments are measured at fair value with unrealized gains and losses recorded in other comprehensive income. Instruments classified as held-for-trading are measured at fair value with unrealized gains and losses recognized on statement of operations for the period.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
3.
NEWLY ADOPTED ACCOUNTING POLICIES(Continued)
b)
Section 1530 - Comprehensive Income
This standard introduces the concept of comprehensive income, which consists of net income and other comprehensive income. Comprehensive income (loss) is the change in the Company’s net assets that results from transactions, events, and circumstances from other than the Company’s shareholders. This standard requires certain gains and losses that would otherwise be recorded as part of net earnings to be presented in other “comprehensive income (loss)” until it is considered appropriate to recognize into net income (loss). This standard requires the presentation of comprehensive income (loss), and its components in a separate financial statement that is displayed with the same prominence as the other financial statements.
c)
Section 3865 - Hedges
The new standard specifies the criteria under which hedge accounting can be applied and how hedge accounting can be executed. As at August 31, 2008, the Company has not designated any hedging relationships; therefore, the adoption of this accounting policy did not have an impact on the financial statements of the Company for the year ending August 31, 2008.
d)
Section 1506 – Accounting Changes
The new standard establishes criteria for changing accounting policies, together with the accounting treatment and disclosure of changes in accounting policies, changes in accounting estimates and the correction of errors. The disclosure is to include, on an interim and annual basis, a description and the impact on the Company of any new primary source of GAAP that has been issued but is not yet effective. The impact that the adoption of Section 1506 will have on the Company’s results of operations and financial condition will depend on the nature of future accounting changes.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
3.
NEWLY ADOPTED ACCOUNTING POLICIES(Continued)
e)
EIC Abstract No. 166 – Accounting Policy Choice for Transaction Costs
On June 1, 2007, the Emerging Issues Committee of the CICA issued Abstract No. 166, “Accounting Policy Choice for Transaction Costs” (“EIC-166”). This EIC addresses the accounting policy choice of expensing or adding transaction costs related to the acquisition of financial assets and financial liabilities that are classified as other than held-for-trading. Specifically, it requires that the same accounting policy choice be applied to all similar financial instruments classified as other than held-for-trading, but permits a different policy choice for financial instruments that are not similar. The Company has adopted EIC-166 effective August 31, 2008, which requires retroactive application to all transaction costs accounted for in accordance with CICA Handbook Section 3855, Financial Instruments – Recognition and Measurement. The Company has evaluated the impact of EIC-166 and determined that no adjustments are currently required.
4.
SHORT-TERM INVESTMENTS
As at May 31, 2009, short–term investments in the amount of $725,000 (2008 - $2,558,945) were comprised of Canadian investments in guaranteed investment certificates maturity on May 21, 2010 and effective interest rates of 0.7% (2008 – 2.75%).
5.
ACCOUNTS RECEIVABLE
Accounts receivable consist of the following:
| | 2009 | 2008 |
| | |
|
Sales taxes recoverable | 79,559 | $ 149,806 |
Interest receivable | 139 | 20,822 |
Other receivable | 73,937 | 6,548 |
| | $ 153,635 | $ 177,176 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
6.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS
State of Chihuahua, Mexico
| | | | | | | | LAS BOLAS | | | |
| | | | | | |
BUFALO | TODOS SANTOS | | | |
| | | | | | | LA | LOS HILOS | NOPALERA | | |
| | | | | | | HERMOSA | EL MANTO | FLOR DEL | | |
| | SAN | | | | OTEROS | LA BARRANCA | DON LAZARO | TRIGO | TOTAL | TOTAL |
| | TIMOTEO | NUEVA | LA | | LA | BECK | AMPLIACION | EL CARNARIO | May 31, | May 31, |
| | ORO LEON | UNION | REFORMA | CORONA | ESPERANZA | EL CHAMIZAL | LA VERDE | LA CRUZ | 2009 | 2008 |
| | |
| |
| |
| |
| | | |
| | |
Acquisition costs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| | | | | | | | | | | | |
| | | |
| | | | |
Exploration costs | |
| | | |
| | | | | |
| | | |
| | | | |
Assaying | | 58,255 | | - | | - | | - | | - | | - | | 78,743 | | - | | 136,998 | | 286,586 |
Drilling | | - | | - | | - | | - | | - | | - | | 434,750 | | - | | 434,750 | | 2,205,032 |
Geology and mapping | | 12,535 | | 294 | | - | | - | | - | | - | | 55,180 | | - | | 68,009 | | 239,905 |
Property taxes and passage rights | |
1,172 | |
301 | |
5,223 | |
2,399 | |
1,496 | |
5,456 | |
2,166 | |
9,276 | |
27,489 | |
36,694 |
Salaries | | - | | 11 | | - | | - | | - | | - | | 243 | | - | | 254 | | 78,536 |
Travel | | 6,641 | | 5,411 | | - | | - | | - | | - | | 13,086 | | 8 | | 25,146 | | 6,624 |
Road construction and site preparation | |
6,160 | |
- | |
5,947 | |
- | |
- | |
- | |
18,350 | |
- | |
30,457 | |
127,730 |
Miscellaneous | | 17,434 | | 16,164 | | - | | - | | - | | - | | 112,705 | | 2,084 | | 148,387 | | 104,406 |
Current costs | | 102,197 | | 22,181 | | 11,170 | | 2,399 | | 1,496 | | 5,456 | | 715,223 | | 11,368 | | 871,490 | | 3,085,513 |
Balance, beginning of year | | 3,441,092 | | 111,893 | | 1,494,595 | | 35,473 | | 11,675 | | 36,337 | | 2,300,379 | | 352,938 | | 7,784,382 | | 3,763,023 |
Balance, end of period | $ | 3,543,289 | $ | 134,074 | $ | 1,505,765 | $ | 37,872 | $ | 13,171 | $ | 41,793 | $ | 3,015,602 | $ | 364,306 | $ | 8,655,870 | $ | 6,848,536 |
| | |
| | | | | | | | | | | | | |
| | | | |
Costs summary | | | | | |
| | | | | | | | | |
| | | | |
Acquisition | $ | 69,257 | $ | - | $ | 75,000 | $ | - | $ | - | $ | - | $ | 187,123 | $ | 3,393 | $ | 334,773 | | 334,773 |
Exploration | $ | 3,474,032 | $ | 134,074 | $ | 1,430,765 | $ | 37,872 | $ | 13,171 | $ | 41,793 | $ | 2,828,479 | $ | 360,913 | $ | 8,321,099 | | 6,513,763 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED AUGUST 31, 2008 AND 2007
(Unaudited – prepared by management)
6. MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS(Continued)
State of Chihuahua, Mexico
| | | | | | | BUFALO | LOS HILOS | | | |
| | | | | | | LA | LAS BOLAS | NOPALERA | | |
| | | | | | | HERMOSA | EL MANTO | FLOR DEL | | |
| | SAN | | | | OTEROS | LA BARRANCA | DON LAZARO | TRIGO | TOTAL | TOTAL |
| | TIMOTEO | NUEVA | LA | | LA | BECK | AMPLIACION | EL CARNARIO | AUGUST 31 | AUGUST 31 |
Year ended August 31, 2008 | ORO LEON | UNION | REFORMA | CORONA | ESPERANZA | EL CHAMIZAL | LA VERDE | LA CRUZ | 2008 | 2007 |
| | | | | | | | | | | | | | | |
Acquisition costs | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - |
| | |
| |
| | | | | | | |
| |
| |
| |
| | |
Exploration costs | | | |
| |
| |
| |
| |
| |
| |
| |
| | |
Assaying | | 274,301 | | - | | 70,051 | | - | | - | | - | | 38,421 | | - | | 382,773 | | 55,894 |
Drilling | | 1,540,075 | | - | | 761,226 | | - | | - | | - | | 449,468 | | - | | 2,750,769 | | 350,150 |
Geology and mapping | | 117,204 | | 221 | | 43,850 | | - | | - | | - | | 106,639 | | - | | 267,914 | | 89,548 |
Property taxes and passage rights | | 4,911 | | 577 | | 11,163 | | 6,693 | | 2,186 | | 12,998 | | 5,862 | | 14,548 | | 58,938 | |
48,639 |
Salaries | | 22,614 | | 12,276 | | 32,370 | | - | | - | | 139 | | 11,409 | | - | | 78,808 | | 52.171 |
Travel | | 1,720 | | 2,727 | | 4,058 | | - | | - | | - | | 3,183 | | - | | 11,688 | | 6,740 |
Road construction and site preparation | | 74,269 | | 11,673 | | 38,500 | | - | | - | | - | | 73,642 | | - | | 198,084 | |
85,455 |
Facilities and other | | 53,364 | | 29,028 | | 47,570 | | - | | - | | 1 | | 142,421 | | - | | 272,384 | | 100,974 |
Current costs | | 2,088,458 | | 56,502 | | 1,008,788 | | 6,693 | | 2,186 | | 13,138 | | 831,045 | | 14,548 | | 4,021,358 | | 789,571 |
Balance, beginning of year | | 1,352,634 | | 55,391 | | 485,806 | | 28,780 | | 9,489 | | 23,199 | | 1,469,334 | | 338,390 | | 3,763,023 | |
2,973,452 |
Balance, end of year | $ | 3,441,092 | $ | 111,893 | $ | 1,494,594 | $ | 35,473 | $ | 11,675 | $ | 36,337 | $ | 2,300,379 | $ | 352,938 | $ | 7,784,381 | $ | 3,763,023 |
| | | | | | | | | | | | | | | | | | | | | |
Costs summary | | | | | | | | | | | | | | | | | | | | |
Acquisition | $ | 69,257 | $ | - | $ | 75,000 | $ | - | $ | - | $ | - | $ | 187,123 | $ | 3,393 | $ | 334,773 | | 334,773 |
Exploration | $ | 3,371,835 | $ | 111,893 | $ | 1,419,594 | | 35,473 | $ | 11,675 | $ | 36,337 | $ | 2,113,256 | $ | 349,545 | $ | 7,449,608 | | 3,428,250 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
6.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS (Continued)
The Company has an extensive property portfolio of mining concessions, acquired mainly through staking, in the Uruachic District of Mexico covering approximately 10,000 hectares. The Company has various net smelter returns on specific claims forming a part of the Company’s properties. The net smelter returns range from 1% to 3%, which have buyouts ranging from US$250,000 to US$2,000,000.
In September 2007, the Company optioned a 60% interest in La Cruz Property to a company which undertook to make cash payments to the Company totaling US $300,000 (40,000 received) and spend US $450,000 on the property over a period of three years. The agreement was terminated in 2008.
In April 2007, the Company signed an agreement to acquire the Todos Santos 50 hectare mining concession for approximately $25,000. In April 2007 and July 2007, the Company paid $9,754 to bring the property into good standing with the Mexican authorities and paid $15,000 to complete the acquisition.
In May 2007 and amended October 2007, the Company optioned the Corona and El Chamizal properties to a company which undertook to spend $500,000 and $200,000 on the respective properties over a period of three years and issue 300,000 and 150,000 shares respectively to the Company over a period of three years from when the company lists its shares on a stock exchange. As of May 31, 2009 the shares have not been listed on the stock exchange or been received.
7.
PROPERTY AND EQUIPMENT
| | MAY 31, 2009 |
| |
| ACCUMULATED |
|
| | COST | AMORTIZATION | NET |
Equipment | $ | 70,119 | $ | 35,529 | $ | 34,590 |
Vehicles | | 91,416 | | 35,567 | | 55,849 |
Land | | 18,917 | | - | | 18,917 |
| | $ | 180,452 | $ | 71,096 | $ | 109,356 |
| |
|
| | AUGUST 31, 2008 |
| |
| ACCUMULATED |
|
| | COST | AMORTIZATION | NET |
Equipment | $ | 67,879 | $ | 31,592 | $ | 36,287 |
Vehicles | | 84,303 |
| 30,780 | | 53,523 |
Land | | 18,917 |
| - | | 18,917 |
| | $ | 171,099 | $ | 62,372 | $ | 108,727 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
8.
SHARE CAPITAL
Authorized
The authorized share capital of the Company consists of an unlimited number of common shares without par value.
Issued and Fully Paid
| | NUMBER OF SHARES |
AMOUNT |
| |
| |
|
Balance, August 31, 2007 | 60,754,037 | | 18,905,829 |
| | | | |
Issued for options exercised | 180,000 | | 45,000 |
Fair value of options allocated to shares on exercise | - | | 182,954 |
| | | | |
Balance, August 31 and May 31, 2009 | 60,934,037 | $ | 19,133,783 |
a)
Outstanding Warrants
During the nine months ended May 31, 2009 18,352,726 warrants expired unexercised. As at May 31, 2009, the Company had no share purchase warrants outstanding.
b)
Stock Options
In April 24, 2009, the Company granted 225,000 incentive stock options to Consultants of the Company, 75,000 at a price of $0.10 per share and 150,000 at a price of $0.12 per share, exercisable for a period of five years.
Stock based compensation on options granted during the period amounted to $20,185. The fair value for options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted average assumptions: risk-free interest rate of 1.60% dividend yield of nil, volatility factor of 106.97%, and a weighted average expected life of the options of 5 years.
In December 2008, the Company granted 925,000 incentive stock options to directors and employees of the Company, at a price of $0.10 per share, exercisable for a period of five years.
Stock based compensation on options granted during the period amounted to $30,763. The fair value for options was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted average assumptions: risk-free interest rate of 2.15% dividend yield of nil, volatility factor of 99,50%, and a weighted average expected life of the options of 5 years.
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
8.
SHARE CAPITAL (Continued)
A summary of changes in stock options is presented below:
| | | WEIGHTED |
| | NUMBER | AVERAGE |
| | OF | EXERCISE |
| | SHARES | PRICE |
| | | |
|
Balance, August 31, 2007 | 4,985,000 | | 0.36 |
Granted | 545,000 | | 0.34 |
Exercised | (180,000) | | 0.25 |
Cancelled | (375,000) | | 0.35 |
Expired | (50,000) | | 0.25 |
Balance, August 31, 2008 | 4,925,000 | $ | 0.36 |
Expired | (430,000) | | 0.36 |
Balance, November 30, 2008 | 4,495,000 | $ | 0.36 |
Granted | 925,000 | | 0.10 |
Balance, Feb 28, 2009 | 5,420,000 | $ | 0.32 |
Granted | 225,000 | | 0.11 |
Cancelled | (175,000) | | 0.38 |
Balance, May 31, 2009 | 5,470,000 | $ | 0.31 |
| | | |
|
The following summarizes information about stock options outstanding at May 31, 2009:
OPTIONS OUTSTANDING | | OPTIONS EXERCISABLE |
| | WEIGHTED | | | | |
| | AVERAGE | WEIGHTED | | | WEIGHTED |
NUMBER | REMAINING | AVERAGE | | NUMBER | AVERAGE |
OF | CONTRACTUAL | EXERCISE | | OF | EXERCISE |
OPTIONS | LIFE | PRICE | | OPTIONS | PRICE |
| | | | | | | |
5,470,000 | 2.80 years | $0.31 | | 5,470,000 | $ | 0.31 |
c)
Contributed Surplus
The following table summarizes the Company’s Contributed Surplus:
Balance, August 31, 2007 | $ 1,571,851 |
Stock options granted | 122,780 |
Stock options exercised | (182,954) |
Balance, August 31, 2008 | $ 1,511,677 |
Stock options granted | 50,948 |
Balance, May 31, 2009 | $ 1,562,625 |
GOLDEN GOLIATH RESOURCES LTD.
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED MAY 31, 2009 AND 2008
(Unaudited – prepared by management)
9. RELATED PARTY TRANSACTIONS
Related party transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties.
a)
Accounts payable and accrued liabilities include $3,967 (2008 - $nil) due to a company controlled by a director.
b)
During the nine months ended May 31, 2009, the Company paid $90,000 (2008 - $90,000) recorded as management fees for geological and management services to a company controlled by a director.
c)
During the nine months ended May 31, 2009, the Company paid $49,689 (2008 - $85,887) in wages, benefits, and consulting fees to two directors of the Company.
d)
During the nine months ended May 31, 2009, the Company paid $41,805 (2008 - $40,500) in respect of office and administration costs to a management company controlled by a director of the Company.
e)
Accounts due from related parties consist of $13,339 (2008 - $nil) due from two companies controlled by a common director, and $190 (2008 - $nil) due from a director.
