1. June 2006 - August 2006, we intend to hire a technically trained consultant to compile exploration data, analyze it and compile a map. We have no selected a consultant as of the date of this prospectus. This phase 1 reconnaissance work requires approximately one week of field work by a two person crew. The whole phase, including the initial compilation and the later presentation to management, is estimated to cost $5,000.
2. August 2006 - December 2006 , we intend to pursue a field program of prospecting and geochemical surveying to determine the extent and distribution of mineralization on the surface of the property which may indicate the potential presence of a reserve. Geochemical surveys involve a consulting geologist gathering samples of soil and rock from property areas with the most potential to host economically significant mineralization. All samples gathered will be sent to a laboratory where they are crushed and analyzed for metal content. Cost for Phase 2 is estimated to be $15,000.
3. January 2007 - March 2007, we intend to conduct a detailed field examination of potential exploration sites including localized geophysical surveys and localized magnetometer and soil surveys over the prime indicated anomalous zones. We anticipate this phase will cost approximately $20,000.
4. March 2007 - June 2007, we intend to begin core drilling. Core drilling will cost $20.00 per foot. We intend to drill 36 holes to a depth of 100 feet for a total cost of $72,000. Core drilling will be subcontracted to non-affiliated third parties. No power source is need for core drilling. The drilling rig operates on diesel fuel. All electric power need, for light and heating while on the property will be generated from gasoline powered generators.
3. July 2007 - August 2007, we intend to have an independent third party analyze the samples from the core drilling to determine if mineralized material is below the ground. If mineralized material is found, define the body. We estimate that it will cost $3,000 to analyze the core samples.
All funds for the foregoing activities have been obtained from our private placement or will be obtained from a future private placement, a public offering or a loan from Mr. Brenner.
There is no historical financial information about us upon which to base an evaluation of our performance. We are an exploration stage corporation and have not generated any revenues from activities. We cannot guarantee we will be successful in our business activities. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in the exploration of our properties, and possible cost overruns due to price and cost increases in services.
Table of Contents
To become profitable and competitive, we conduct research and exploration of our properties before we start production of any minerals we may find. We are seeking equity financing to provide for the capital required to implement our research and exploration phases.
We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our activities. Equity financing could result in additional dilution to existing shareholders.
Results of Activities
From Inception on May 12, 2005
We acquired the right to explore one property containing one claim. We do not own any interest in any property, but merely have the right to conduct exploration activities on one property. The property has been staked and we intend to begin exploration activities in June 2006.
Since inception, we have used loans from Mr. Brenner, our president, to stake the property, to incorporate us, and for legal and accounting expenses. Net cash provided by him since inception on May 12, 2005 to February 28, 2006 was $80. The loans are not evidenced by any written instrument and are to be repaid at our discretion. The loans are without interest.
Liquidity and Capital Resources
As of the date of this prospectus, we have yet to generate any revenues from our business activities.
We issued 3,000,000 shares of our common stock to Mr. Walter Brenner on September 1, 2005 pursuant to Reg. S of the Securities Act of 1933. Mr. Brenner is our president, chief executive officer, treasurer, principal financial officer and a director. Mr. Brenner acquired these shares at a price of $0.001 per share for total proceeds to us of $3,000.00.
We completed a private placement of 2,100,000 restricted shares of our common stock at a price of $0.001 per share to the five purchasers on September 1, 2005 pursuant to Reg. S of the Securities Act of 1933. The total amount received from the private placement was $2,100.
We completed a private placement of 800,000 restricted shares of our common stock at a price of
$0.01 per share to eight purchasers on November 1, 2005 pursuant to Reg. S of the Securities Act of 1933.
The total amount received from the private placement was $8,000.
We completed a private placement of 200,000 restricted shares of our common stock at a price of
$0.20 per share to ten purchasers on November 30, 2005 pursuant to Reg. S of the Securities Act of 1933. The total amount received from this offering was $10,000.
As of February 28, 2006, our total assets were $13,565 and our total liabilities were $1,280.
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MANAGEMENT
Officers and Directors
Our directors serves until his or her successor is elected and qualified. Each of our officers is elected by the board of directors to a term of one (1) year and serves until his or her successor is duly elected and qualified, or until he or she is removed from office. The board of directors has no nominating, auditing or compensation committees.
The name, age and position of our officers and directors are set forth below:
Name | Age | Position Held |
| | |
Walter Brenner | 40 | President, Principal Executive Officer, and Director |
| | Principal Financial Officer, Principal Accounting Officer, Treasurer, Secretary and Director |
Directors serve until our next annual meeting of the stockholders or unless they resign earlier. The Board of Directors elects officers and their terms of office are at the discretion of the Board of Directors.
Background of officers and directors
Mr. Walter Brenner has been our president, principal executive officer and director since our inception on May 12, 2005. Mr. Brenner graduated from York University's Osgoode Hall Law School in 1991 with a Bachelor of Laws degree. Since 1993, Mr. Brenner has been a director and senior officer of Hellix Ventures Inc. a British Columbia and Alberta reporting issuer listed on the TSX Venture Exchange. Hellix is listed as a mining company and also has producing petroleum properties. Mr. Brenner is also founder of Abington Ventures Inc. and has been its president and director of since 1999. Abington is a British Columbia and Alberta reporting issuer listed on the TSX Venture Exchange as a mining company. Mr. Brenner devotes approximately 25% of his time to our affairs.
Audit Committee Financial Expert
We do not have an audit committee financial expert. We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive. Further, because we are only beginning our commercial operations, at the present time, we believe the services of a financial expert are not warranted.
Conflicts of Interest
There are currently no conflicts of interest and we do not foresee any conflicts of interest in the future.
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Table of Contents
EXECUTIVE COMPENSATION
The following table sets forth information with respect to compensation paid by us to our officers and directors during the three most recent fiscal years. This information includes the dollar value of base salaries, bonus awards and number of stock options granted, and certain other compensation, if any.
Summary Compensation Table
| | | Long Term Compensation | |
| | Annual Compensation | Awards | Payouts | |
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) |
| | | | Other | | | | |
| | | | Annual | Restricted | Securities | | |
| | | | Compen | Stock | Underlying | LTIP | All Other |
Name and Principal | | Salary | Bonus | sation | Award(s) | Options / | Payouts | Compens |
Position [1]
| Year
| ($)
| ($)
| ($)
| ($)
| SARs (#)
| ($)
| ation ($)
|
Walter Brenner | 2005 | 1,500 | 0 | 0 | 0 | 0 | 0 | 0 |
President and Director | 2004 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2003 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
[1] All compensation received by the officers and directors has been disclosed.
Option/SAR Grants
There are no stock option, retirement, pension, or profit sharing plans for the benefit of our officers and directors.
Long-Term Incentive Plan Awards
We do not have any long-term incentive plans.
Compensation of Directors
We do not have any plans to pay our directors any money.
Indemnification
Under our Articles of Incorporation and Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a law suit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the office or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Nevada.
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Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Nevada law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.
PRINCIPAL AND SELLING SHAREHOLDERS
The following table sets forth, as of the date of this prospectus, the total number of shares owned beneficially by each of our directors, officers and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The table also reflects what their ownership will be assuming completion of the sale of all shares in this offering. The stockholders listed below have direct ownership of his/her shares and possess voting and dispositive power with respect to the shares. Our office address is at 794 East 20th Avenue, Vancouver, British Columbia, Canada V5V 1N3 and our telephone number is (778)863-0186.
| Direct Amount of | | Percent |
Name of Beneficial Owner
| Beneficial Owner
| Position
| of Class
|
Walter Brenner [1] | 3,000,000 | President, Principal Executive Officer, | 49.18% |
| | Principal Financial Officer, Principal | |
| | Accounting Officer, Treasurer, Secretary and Director | |
| | | |
All Officers and Directors as a | | | |
Group (1 Person) | 3,000,000 | | 49.18% |
Securities authorized for issuance under equity compensation plans.
We have no equity compensation plans.
Selling Shareholders
The following table sets forth the name of each selling shareholder, the total number of shares owned prior to the offering, the percentage of shares owned prior to the offering, the number of shares offered, and the percentage of shares owned after the offering, assuming the selling shareholder sells all of his shares and we sell the maximum number of shares.
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Table of Contents
| | | | Percentage of shares |
| | | | owned after the |
| Total number of | Percentage of | Number of | offering assuming |
| shares owned | shares owned | shares being | all of the share are |
Name | prior to offering | prior to offering | offered | sold in the offering |
| | | | |
Renata Brenner | 300,000 | | 300,000 | 0% |
801 - 2066 Pendrell St. | | | | |
Vancouver B.C. | | | | |
| | | | |
Kari Taneda | 300,000 | | 300,000 | 0% |
3455 Glenco Road | | | | |
Kelowna B.C. | | | | |
| | | | |
C. Larry Carlson | 300,000 | | 300,000 | 0% |
#708 - 350 Douglas St. | | | | |
Victoria B.C. | | | | |
| | | | |
Steven Feldman | 300,000 | | 300,000 | 0% |
150 - 15550 26th Ave | | | | |
Surrey B.C. | | | | |
| | | | |
Zeny Manalo | 300,000 | | 300,000 | 0% |
C - 1275 27th St. | | | | |
North Vancouver B.C. | | | | |
| | | | |
Barry Underhill | 300,000 | | 300,000 | 0% |
#205 - 2770 Burrard St. | | | | |
Vancouver B.C. | | | | |
| | | | |
Corinne Siemens | 300,000 | | 300,000 | 0% |
1363 Clyde Ave apt 109 | | | | |
West Vancouver B.C. | | | | |
| | | | |
Dan Mijailovic | 100,000 | | 100,000 | 0% |
315-1333 Hornby St. | | | | |
Vancouver B.C. | | | | |
| | | | |
Leanne Feldman | 100,000 | | 100,000 | 0% |
150 - 15550 26 Ave. | | | | |
Surrey, B.C. | | | | |
| | | | |
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Rose Amann | 100,000 | | 100,000 | 0% |
#315 - 1333 Hornby St. | | | | |
Vancouver B.C. | | | | |
| | | | |
Janice Feldman | 100,000 | | 100,000 | 0% |
1207 Beach Grove Road | | | | |
Tsawwassen BC | | | | |
| | | | |
Jill Field | 100,000 | | 100,000 | 0% |
6518 - 121 St. Unit 5 | | | | |
Surrey BC | | | | |
| | | | |
Allan Feldman | 100,000 | | 100,000 | 0% |
1207 Beach Grove Rd. | | | | |
Delta B.C. | | | | |
| | | | |
Erik Graham | 100,000 | | 100,000 | 0% |
Apt 2 - 1379 - 15th Ave. West | | | | |
Vancouver B.C. | | | | |
| | | | |
Mike Ranger | 100,000 | | 100,000 | 0% |
287 Seymour River Pl. | | | | |
North Vancouver B.C. | | | | |
| | | | |
Robert Engh | 20,000 | | 20,000 | 0% |
Unit 1 45986 Bridal Ridge Cres. | | | | |
Chilliwack BC | | | | |
| | | | |
Normita Manalo | 20,000 | | 20,000 | 0% |
Unit C - 1275 East 27th St. | | | | |
North Vancouver B.C. | | | | |
| | | | |
Jian Ping Zhang | 20,000 | | 20,000 | 0% |
1026 Tuxedo Drive | | | | |
Port Moody BC | | | | |
| | | | |
Yuezhi Zhao | 20,000 | | 20,000 | 0% |
549 Yale Road | | | | |
Port Moody B.C. | | | | |
| | | | |
Bruce Townsend | 20,000 | | 20,000 | 0% |
224 Sarsons Dr. | | | | |
Vernon B.C. | | | | |
| | | | |
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Dusan Berka | 20,000 | | 20,000 | 0% |
#201 - 1935 Haro St. | | | | |
Vancouver B.C. | | | | |
| | | | |
Robert Kline | 20,000 | | 20,000 | 0% |
429 West 41St Ave | | | | |
Vancouver B.C. | | | | |
| | | | |
Edgar Fenwick | 20,000 | | 20,000 | 0% |
455 Abbot St. | | | | |
Vancouver B.C. | | | | |
| | | | |
Yu Li | 20,000 | | 20,000 | 0% |
219 - 1680 56 St. | | | | |
Delta B.C. | | | | |
| | | | |
Cui Wei Jean Jin | 20,000 | | 20,000 | 0% |
1170 Howse Place | | | | |
Coquitlam B.C. | | | | |
| | | | |
Total
|
3,100,000
|
50.82%
|
3,100,000
|
0%
|
All of our issued and outstanding shares of common stock were issued as restricted securities pursuant to Reg. S of the Securities Act of 1933 in that all of the sales took place outside the United States of America with non-US persons.
The following is a summary of the issuances of all shares pursuant to Reg. S of the Act.
a) | We issued 3,000,000 shares of our common stock to Mr. Walter Brenner on September 1, 2005. Mr. Brenner is our president, chief executive officer, treasurer, principal financial officer and a director. Mr. Brenner acquired these shares at a price of $0.001 per share for total proceeds to us of $3,000.00 |
| |
b) | We completed a private placement of 2,100,000 restricted shares of our common stock at a price of $0.001 per share to the five purchasers on September 1, 2005. The total amount received from the private placement was $2,100. |
| |
c) | We completed a private placement of 800,000 restricted shares of our common stock at a price of $0.01 per share to eight purchasers on November 1, 2005. The total amount received from the private placement was $8,000 |
| |
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d) | We completed a private placement of 200,000 restricted shares of our common stock at a price of $0.20 per share to ten purchasers on November 30, 2005. The total amount received from this offering was $10,000. |
None of the selling shareholders has, or has had within the past three years, any position, office, or other material relationship with us or any of our predecessors or affiliates.
None of the selling shareholders is a broker-dealer or an affiliate of a broker dealer.
Future Sales of Shares
A total of 6,100,000 shares of common stock are issued and outstanding. Of the 6,100,000 shares outstanding, all are restricted securities as defined in Rule 144 of the Securities Act of 1933. 3,100,000 are being offered for sale by the selling shareholders in this offering.
Shares purchased in this offering, which will be immediately resalable without restriction of any kind.
DESCRIPTION OF SECURITIES
Common Stock
Our authorized capital stock consists of 75,000,000 shares of common stock, $0.001 par value per share. The holders of our common stock:
* | have equal ratable rights to dividends from funds legally available if and when declared by our board of directors; |
* | are entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of our affairs; |
* | do not have preemptive, subscription or conversion rights and there are no redemption or sinking fund provisions or rights; and |
* | are entitled to one non-cumulative vote per share on all matters on which stockholders may vote. |
All shares of common stock now outstanding are fully paid for and non-assessable and all shares of common stock which are the subject of this offering, when issued, will be fully paid for and non-assessable. We refer you to our Articles of Incorporation, Bylaws and the applicable statutes of the state of Nevada for a more complete description of the rights and liabilities of holders of our securities.
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Table of Contents
Non-cumulative voting
Holders of shares of our common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in that event, the holders of the remaining shares will not be able to elect any of our directors.
Cash dividends
As of the date of this prospectus, we have not paid any cash dividends to stockholders. The declaration of any future cash dividend will be at the discretion of our board of directors and will depend upon our earnings, if any, our capital requirements and financial position, our general economic conditions, and other pertinent conditions. It is our present intention not to pay any cash dividends in the foreseeable future, but rather to reinvest earnings, if any, in our business operations.
Anti-takeover provisions
There are no Nevada anti-takeover provisions that may have the affect of delaying or preventing a change in control.
Reports
After we complete this offering, we will not be required to furnish you with an annual report. Further, we will not voluntarily send you an annual report. We will be required to file reports with the SEC under section 15(d) of the Securities Act. The reports will be filed electronically. The reports we will be required to file are Forms 10-KSB, 10-QSB, and 8-K. You may read copies of any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that will contain copies of the reports we file electronically. The address for the Internet site is www.sec.gov.
Stock transfer agent
Our stock transfer agent for our securities is Empire Stock Transfer, Inc., 7251 West Lake Mead Boulevard, Suite 300, Las Vegas, Nevada 89128 and its telephone number is 775-684-5708.
CERTAIN TRANSACTIONS
We issued 3,000,000 shares of our common stock to Mr. Walter Brenner on September 1, 2005 pursuant to Reg. S of the Securities Act of 1933. Mr. Brenner is our president, chief executive officer, treasurer, principal financial officer and a director. Mr. Brenner acquired these shares at a price of $0.001 per share for total proceeds to us of $3,000.00.
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Table of Contents
Mr. Brenner allows us to use a portion of his home as our office in consideration of $250.00 per month.
During the three month period ended February 28, 2006, a total of $3,000 was incurred by us for services rendered by Mr. Brenner in his capacity as principal executive officer.
During the three month period ended February 28, 2006, Mr. Brenner has loaned us $1,580 for our operations. The loan does not accure interest and is payable when funds become available to us. There is no written document evidencing the loan.
LITIGATION
We are not a party to any pending litigation and none is contemplated or threatened.
EXPERTS
Our financial statements for the period from inception to November 30, 2005, included in this prospectus have been audited by Manning Elliott LLC, Chartered Accountants, 701 West Georgia Street, Suite 1400, Vancouver, British Columbia V7Y 1C6.
LEGAL MATTERS
Conrad C. Lysiak, Attorney at Law, 601 West First Avenue, Suite 503, Spokane, Washington 99201, telephone (509) 624-1475 has acted as our legal counsel.
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Table of Contents
FINANCIAL STATEMENTS
Our fiscal year end is November 30. We will provide audited financial statements to our stockholders on an annual basis; the statements will be audited by a firm of Chartered Accountants.
Our financial statements from inception to February 28, 2006 (audited), immediately follow:
| |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | F-1 |
FINANCIAL STATEMENTS |
| Balance Sheet | F-2 |
| Statement of Operation | F-3 |
| Statement of Retained Earnings (Deficit) | F-4 |
| Statement of Cash Flows | F-5 |
| Statement of Stockholders' Equity | F-6 |
NOTES TO FINANCIAL STATEMENTS | F-7 |
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![](https://capedge.com/proxy/SB-2/0001002014-06-000425/manningelliottlogo.gif)
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of
Atwood Minerals and Mining Corp. (An Exploration Stage Company)
We have audited the accompanying balance sheet of Atwood Minerals and Mining Corp. (An Exploration Stage Company) as of November 30, 2005 and the related statements of operations, cash flows and stockholders' equity accumulated for the period from May 12, 2005 (Date of Inception) to November 30, 2005. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above, present fairly, in all material respects, the financial position of Atwood Minerals and Mining Corp. (An Exploration Stage Company), as of November 30, 2005, and the results of its operations and its cash flows accumulated for the period from May 12, 2005 (Date of Inception) to November 30, 2005, in conformity with accounting principles generally accepted in the United States.
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has not generated any revenue or profitable operations since inception and will need equity financing to begin realizing upon its business plan. These factors raise substantial doubt about the Company's ability to continue as a going concern. Management's plans in regard to these matters are also discussed in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
MANNING ELLIOTT LLP
CHARTERED ACCOUNTANTS
Vancouver, Canada
February 25, 2006
F-1
- 36 -
Atwood Minerals and Mining Corp.
(An Exploration Stage Company)
Balance Sheets
(Expressed in US dollars)
| February 28, 2006 $ | November 30, 2005 $ |
| (unaudited) | (audited) |
| | |
ASSETS | | |
| | |
Current Assets | | |
| | |
Cash
| 13,565
| 18,060
|
| | |
Total Assets
| 13,565
| 18,060
|
| | |
| | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| | |
Current Liabilities | | |
| | |
Accrued liabilities | 1,200 | 5,450 |
Due to related parties (Note 3)
| 80
| 80
|
| | |
Total Liabilities
| 1,280
| 5,530
|
| | |
| | |
Contingencies and Commitments (Notes 1 and 4) | | |
| | |
Stockholders' Equity | | |
| | |
Common Shares, 75,000,000 shares authorized, $0.001 par value 6,100,000 shares issued and outstanding | 6,100 | 6,100 |
| | |
Additional Paid-In Capital | 17,000 | 17,000 |
| | |
Donated Capital (Note 3) | 6,750 | 4,500 |
| | |
Deficit Accumulated During the Exploration Stage
| (17,565)
| (15,070)
|
| | |
Total Stockholders' Equity
| 12,285
| 12,530
|
| | |
Total Liabilities and Stockholders' Equity
| 13,565
| 18,060
|
| | |
F-2
(The Accompanying Notes are an integral part of these financial statements.)
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Atwood Minerals and Mining Corp.
(An Exploration Stage Company)
Statements of Operations
(Expressed in US dollars)
| Accumulated from | Three | From |
| May 12, 2005 (Date of Inception) | Months Ended | May 12, 2005 (Date of Inception) |
| To February 28, | February 28, | to November 30, |
| 2006 | 2006 | 2005 |
| $ | $ | $ |
| (unaudited) | (unaudited) | (audited) |
| | | |
Revenue
| -
| -
| -
|
| | | |
| | | |
Expenses | | | |
| | | |
Donated rent (Note 3) | 2,250 | 750 | 1,500 |
Donated services (Note 3) | 4,500 | 1,500 | 3,000 |
General and administrative | 165 | 45 | 120 |
Impairment loss on mineral property (Note 4) | 5,000 | - | 5,000 |
Professional fees
| 5,450
| 200
| 5,450
|
| | | |
Total Expenses
| 17,565
| 2,495
| 15,070
|
| | | |
Net Loss
| (17,565)
| (2,495)
| (15,070)
|
| | | |
| | | |
Net Loss Per Share - Basic and Diluted
|
| -
| (0.01)
|
| | | |
| | | |
Weighted Average Shares Outstanding
|
| 6,100,000
| 2,417,000
|
| | | |
F-3
(The Accompanying Notes are an integral part of these financial statements.)
- 38 -
Atwood Minerals and Mining Corp.
(An Exploration Stage Company)
Statements of Cash Flows
(Expressed in US dollars)
| From May 12, 2005 (Date of Inception) to February 28, 2006 $ | Three Months Ended February 28, 2006 $ | From May 12 , 2005 (Date of Inception) to November 30, 2005 $ |
| (unaudited) | (unaudited) | (audited) |
| | | |
Operating Activities | | | |
| | | |
Net loss | (17,565) | (2,495) | (15,070) |
| | | |
Adjustments to reconcile net loss to cash | | | |
Impairment loss on mineral property | 5,000 | - | 5,000 |
Donated services and expenses | 6,750 | 2,250 | 4,500 |
| | | |
Change in operating assets and liabilities | | | |
Accrued liabilities
| 1,200
| (4,250)
| 5,450
|
| | | |
Net Cash Used in Operating Activities
| (4,615)
| (4,495)
| (120)
|
| | | |
Investing Activities | | | |
| | | |
Mineral property acquisition costs
| (5,000)
| -
| (5,000)
|
| | | |
Net Cash Used in Investing Activities
| (5,000)
| -
| (5,000)
|
| | | |
Financing Activities | | | |
| | | |
Advances from related party | 80 | - | 80 |
Proceeds from issuance of common shares
| 23,100
| -
| 23,100
|
| | | |
Net Cash Flows Provided by Financing Activities
| 23,180
| -
| 23,180
|
| | | |
Increase (Decrease) in Cash | 13,565 | (4,495) | 18,060 |
| | | |
Cash - Beginning of Period
| -
| 18,060
| -
|
| | | |
Cash - End of Period
| 13,565
| 13,565
| 18,060
|
| | | |
Supplemental Disclosures | | | |
Interest paid | - | - | - |
Income taxes paid
| -
| -
| -
|
F-4
(The Accompanying Notes are an integral part of these financial statements.)
- 39 -
Atwood Minerals and Mining Corp.
(An Exploration Stage Company)
Statements of Stockholders' Equity
From May 12, 2005 (Date of Inception) to February 28, 2006
(Expressed in U.S. dollars)
| | | | | | | | | Deficit | | |
| | | | | | | | | Accumulated | | |
| | | | | Additional | | | | During the | | |
| Common | | | | Paid-in | | Donated | | Exploration | | |
| Stock | | Amount | | Capital | | Capital | | Stage | | Total |
| # | | $ | | $ | | $ | | $ | | $ |
| | | | | | | | | | | |
Balance - May 12, 2005 (Date of Inception) | - | | - | | - | | - | | - | | - |
| | | | | | | | | | | |
Issuance of common shares for cash | | | | | | | | | | | |
at $.001 per share | 5,100,000 | | 5,100 | | - | | - | | - | | 5,100 |
at $.01 per share | 800,000 | | 800 | | 7,200 | | - | | - | | 8,000 |
at $.05 per share | 200,000 | | 200 | | 9,800 | | - | | - | | 10,000 |
| | | | | | | | | | | |
Donated services and expenses | - | | - | | - | | 4,500 | | - | | 4,500 |
| | | | | | | | | | | |
Net loss
| -
|
| -
|
| -
|
| -
|
| (15,070)
|
| (15,070)
|
| | | | | | | | | | | |
Balance - November 30, 2005 (audited) | 6,100,000 | | 6,100 | | 17,000 | | 4,500 | | (15,070) | | 12,530 |
| | | | | | | | | | | |
Donated services and expenses | - | | - | | - | | 2,250 | | - | | 2,250 |
| | | | | | | | | | | |
Net loss
| -
|
| -
|
| -
|
| -
|
| (2,495)
|
| (2,495)
|
| | | | | | | | | | | |
Balance - February 28, 2006 (unaudited)
| 6,100,000
|
| 6,100
|
| 17,000
|
| 6,750
|
| (17,565)
|
| 12,285
|
F-5
(The Accompanying Notes are an integral part of these financial statements.)
- 40 -
Atwood Minerals and Mining Corp.
(An Exploration Stage Company)
Notes to the Financial Statements
February 28, 2008
1. | Exploration Stage Company |
|
| The Company was incorporated in the State of Nevada on May 12, 2005. The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (" SFAS" ) No. 7 "Accounting and Reporting for Development Stage Enterprises". The Company' s principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable. |
|
| These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, confirmation of the Company' s interests in the underlying properties, and the attainment of profitable operations. As at February 28, 2006, the Company has accumulated losses of $17,565 since inception. These factors raise substantial doubt regarding the Company' s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. |
|
| The Company plans to file an SB-2 Registration Statement with the United States Securities and Exchange Commission to register 3,100,000 shares of common stock for resale by existing stockholders of the Company at $0.05 per share until the shares are quoted on the OTC Bulletin Board, and thereafter at prevailing market prices. The Company will not receive any proceeds from the resale of shares of common stock by the selling stockholders. |
|
2. | Summary of Significant Accounting Policies |
|
| a) | Basis of Presentation |
|
| | These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The Company' s fiscal year-end is November 30. |
|
| b) | Use of Estimates |
|
| | The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
|
| c) | Basic and Diluted Net Income (Loss) Per Share |
|
| | The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. |
F-6
- 41 -
Atwood Minerals and Mining Corp.
(An Exploration Stage Company)
Notes to the Financial Statements
February 28, 2008
2. | Summary of Significant Accounting Policies (continued) |
|
| d) | Comprehensive Loss |
|
| | SFAS No. 130, "Reporting Comprehensive Income," establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at February 28, 2006, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements. |
|
| e) | Cash and Cash Equivalents |
|
| | The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents. |
|
| f) | Mineral Property Costs |
|
| | The Company has been in the exploration stage since its formation on May 12, 2005, and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property exploration costs are expensed as incurred. Mineral property acquisition costs are initially capitalized when incurred using the guidance in EITF 04-02, "Whether Mineral Rights Are Tangible or Intangible Assets". The Company assesses the carrying costs for impairment under SFAS 144, "Accounting for Impairment or Disposal of Long Lived Assets" at each fiscal quarter end. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs then incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations. |
|
| g) | Long-lived Assets |
|
| | In accordance with the Financial Accounting Standards Board (" FASB" ) SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets", the carrying value of intangible assets and other long-lived assets is reviewed on a regular basis for the existence of facts or circumstances that may suggest impairment. The Company recognizes an impairment when the sum of the expected undiscounted future cash flows is less than the carrying amount of the asset. Impairment losses, if any, are measured as the excess of the carrying amount of the asset over its estimated fair value. |
|
| h) | Financial Instruments |
|
| | The fair value of financial instruments, which include cash, accounts payable and accrued liabilities, were estimated to approximate their carrying values due to the immediate or short-term maturity of these financial instruments. The Company' s operations are in Canada, which results in exposure to market risks from changes in foreign currency rates. The financial risk is the risk to the Company' s operations that arise from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk. |
F-7
- 42 -
Atwood Minerals and Mining Corp.
(An Exploration Stage Company)
Notes to the Financial Statements
February 28, 2008
2. | Summary of Significant Accounting Policies (continued) |
|
| i) | Income Taxes |
|
| | Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 "Accounting for Income Taxes" as of its inception. Pursuant to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. |
|
| j) | Foreign Currency Translation |
|
| | The Company' s functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with SFAS No. 52 "Foreign Currency Translation", using the exchange rate prevailing at the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Canadian dollars. The Company has not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. |
|
| k) | Recent Accounting Pronouncements |
|
| | In May 2005, the Financial Accounting Standards Board (FASB) issued SFAS No. 154, "Accounting Changes and Error Corrections - A Replacement of APB Opinion No. 20 and SFAS No. 3". SFAS 154 changes the requirements for the accounting for and reporting of a change in accounting principle and applies to all voluntary changes in accounting principle. It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS 154 requires retrospective application to prior periods' financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The provisions of SFAS No. 154 are effective for accounting changes and correction of errors made in fiscal years beginning after December 15, 2005. The adoption of this standard is not expected to have a material effect on the Company' s results of operations or financial position. |
|
| l) | Recent Accounting Pronouncements (continued) |
|
| | The FASB has also issued SFAS No. 155 "Accounting for Certain Hybrid Financial Instruments" and SFAS No. 156 "Accounting for Servicing of Financial Assets", but they will not have any relationship to the operations of the Company. Therefore a description and its impact for each on the Company' s operations and financial position have not been disclosed. |
|
3. | Related Party Transactions |
|
| During the three month period ended February 28, 2006, the Company recognized a total of $1,500 (November 30, 2005 - $3,000) for donated services at $500 per month and $750 (November 30, 2005 - $1,500) for donated rent at $250 per month provided by the President of the Company. |
|
| At February 28, 2006, the Company is indebted to the President of the Company for cash advances of $80. The advance is unsecured, non-interest bearing and has no specific terms of repayment. |
F-8
- 43 -
Atwood Minerals and Mining Corp.
(An Exploration Stage Company)
Notes to the Financial Statements
February 28, 2008
4. | Mineral Properties |
|
| On October 20, 2005, the Company acquired the STEP mineral claim located in the Nicola Mining Division, British Columbia, Canada in consideration for $5,000. The claim is registered in the name of the vendor, who has executed a trust agreement to hold the claim in trust on behalf of the Company. There are situations that could prevent the Company from obtaining clear title to the mineral claims such as the bankruptcy or death of the vendor. The cost of mineral properties of $5,000 was initially capitalized. At November 30, 2005, the Company recognized an impairment loss of $5,000, as it has not yet been determined whether there are proven or probable reserves on the property. |
|
|
5. | Common Stock |
|
| On September 1, 2005, the Company issued 5,100,000 shares of common stock at a price of $0.001 per share for cash proceeds of $5,100. |
|
| On November 1, 2005, the Company issued 800,000 shares of common stock at a price of $0.01 per share for cash proceeds of $8,000. |
|
| On November 30, 2005, the Company issued 200,000 shares of common stock at a price of $0.05 per share for cash proceeds of $10,000. |
|
6. | Income Taxes |
|
| Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has net operating losses of $10,570, which commence expiring in 2025. Pursuant to SFAS No. 109, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefit of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. For the period ended November 30, 2005, the valuation allowance established against the deferred tax assets increased by $3,700. |
|
| The components of the net deferred tax asset at November 30, 2005, and the statutory tax rate, the effective tax rate and the elected amount of the valuation allowance are scheduled below: |
| | | | November 30, 2005 $ |
| | | | |
Net Operating Losses | | | | 10,570 |
| | | | |
Statutory Tax Rate | | | | 35% |
| | | | |
Effective Tax Rate | | | | - |
| | | | |
Deferred Tax Asset | | | | 3,700 |
| | | | |
Valuation Allowance
|
|
|
| (3,700)
|
| | | | |
Net Deferred Tax Asset
|
|
|
| -
|
| | | | |
F-9
- 44 -
Until _______________, 2006, ninety days after the date of this prospectus, all dealers effecting transactions in our registered securities, whether or not participating in this distribution, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
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Table of Contents
PART II. INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 24. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The only statute, charter provision, bylaw, contract, or other arrangement under which any controlling person, director or officer of the registrant is insured or indemnified in any manner against any liability which he may incur in his capacity as such, is as follows:
| 1 | Article XII of the Articles of Incorporation of the company, filed as Exhibit 3.1 to our Form SB-2 registration statement. |
| 2 | Article XIII of the Bylaws of the company, filed as Exhibit 3.2 to our Form SB-2 registration statement. |
| 3 | Nevada Revised Statutes, Chapter 78. |
The general effect of the foregoing is to indemnify a control person, officer or director from liability, thereby making the company responsible for any expenses or damages incurred by such control person, officer or director in any action brought against them based on their conduct in such capacity, provided they did not engage in fraud or criminal activity.
ITEM 25. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The estimated expenses of the offering, all of which are to be paid by the registrant, are as follows:
SEC Registration Fee | $ | 16.61 |
Printing Expenses | $ | 0 |
Accounting/administrative Fees and Expenses | $ | 9,983.39 |
Blue Sky Fees/Expenses | $ | 0 |
Legal Fees/ Expenses | $ | 20,000 |
Escrow fees/Expenses | $ | 0 |
Transfer Agent Fees | $ | 0 |
Miscellaneous Expenses
| $
| 0.00
|
TOTAL
| $
| 30,000
|
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Table of Contents
ITEM 26. RECENT SALES OF UNREGISTERED SECURITIES.
Since inception, the registrant has sold the following securities which were not registered under the Securities Act of 1933, as amended.
a) | We issued 3,000,000 shares of our common stock to Mr. Walter Brenner on September 1, 2005. Mr. Brenner is our president, chief executive officer, treasurer, principal financial officer and a director. Mr. Brenner acquired these shares at a price of $0.001 per share for total proceeds to us of $3,000.00 |
| |
b) | We completed a private placement of 2,100,000 restricted shares of our common stock at a price of $0.001 per share to the five purchasers on September 1, 2005. The total amount received from the private placement was $2,100. |
| |
c) | We completed a private placement of 800,000 restricted shares of our common stock at a price of $0.01 per share to eight purchasers on November 1, 2005. The total amount received from the private placement was $8,000 |
| |
d) | We completed a private placement of 200,000 restricted shares of our common stock at a price of $0.20 per share to ten purchasers on November 30, 2005. The total amount received from this offering was $10,000. |
We issued the foregoing 6,100,000 shares of common stock as restricted securities pursuant to Reg. S of the Securities Act of 1933 in that all of the sales took place outside the United States of America with non-US persons.
ITEM 27. EXHIBITS.
The following exhibits are filed with this Form SB-2 registration statement:
Exhibit No. | Document Description |
| |
3.1 | Articles of Incorporation |
3.2 | Bylaws |
4.1 | Specimen Stock Certificate |
5.1 | Opinion of Conrad C. Lysiak, Attorney at Law |
10.1 | Trust Declaration |
23.1 | Consent of Manning Elliott LLC, Chartered Accountants |
23.2 | Consent of Conrad C. Lysiak |
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Table of Contents
ITEM 28. UNDERTAKINGS.
We hereby undertake:
(1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement: |
|
| (i) | To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933; |
|
| (ii) | To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective Registration Statement; and |
|
| (iii) | To include any additional or changed material information on the plan of distribution. |
|
(2) | That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time to be the initial bona fide offering thereof. |
|
(3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
|
(4) | Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. |
|
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Table of Contents
(5) | For determining any liability under the Securities Act of 1933: |
|
| (i) | we shall treat the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by us under Rule 424(b)(1), or (4) or 497(h) under the Securities Act as part of this registration statement as of the time the Commission declared it effective. For determining any liability under the Securities Act of 1933, we shall treat each post-effective amendment that contains a form of prospectus as a new registration statement for the securities offered in the registration statement, and that offering of the securities at that time as the initial bona fide offering of those securities. |
|
| (ii) | we shall treat each prospectus filed by us pursuant to Rule 424(b)(3) as part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement. Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registra tion statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or |
|
| (iii) | we shall treat each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use. |
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Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing of this Form SB-2 Registration Statement and has duly caused this Form SB-2 Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Vancouver, British Columbia, Canada on this 6th of June, 2006.
| ATWOOD MINERALS AND MINING CORP. |
| |
| BY: | WALTER BRENNER |
| | Walter Brenner |
| | President, Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer, Secretary, Treasurer and sole Director |
- 50 -