UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] | QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED FEBRUARY 29, 2008. | |
OR | |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 |
Commission file number 000-53160
FLM MINERALS INC.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation or organization)
#308 - 837 West Hastings Street
Vancouver, British Columbia
Canada V6C 3N6
(Address of principal executive offices, including zip code.)
(604) 632-0085
(telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days.
YES [X] NO [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer, “accelerated filer,” “non-accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | [ ] | Accelerated filer | [ ] |
Non-accelerated filer | [ ] | Smaller reporting company | [X] |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [X] NO [ ]
State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date:6,906,300 as of April 7, 2008.
PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FLM MINERALS INC. | ||||||
(An Exploration Stage Company) | ||||||
Interim Balance Sheets | ||||||
At February 29, 2008 with audited figures at November 30, 2007 | ||||||
(Unaudited - Prepared by Management) | ||||||
(Expressed in US Dollars) | ||||||
February 29, | November 30, | |||||
2008 | 2007 | |||||
Assets | (Unaudited) | (Audited) | ||||
Current Assets | ||||||
Cash | $ | 180,197 | $ | 181,480 | ||
Total assets | $ | 180,197 | $ | 181,480 | ||
Liabilities and Stockholders' Equity | ||||||
Current Liabilities | ||||||
Accounts payable and accrued liabilities | $ | 9,550 | $ | 6,100 | ||
Total Liabilities | 9,550 | 6,100 | ||||
Stockholders' Equity | ||||||
Preferred Stock, 100,000,000 shares authorized, $0.00001 par value | ||||||
None issued | ||||||
Common Stock, 100,000,000 shares authorized, $0.00001 par value | ||||||
6,906,300 (November 30, 2007 - 6,906,300) shares issued and | 69 | 69 | ||||
outstanding - par value | ||||||
Additional paid in capital | 271,881 | 271,881 | ||||
Deficit accumulated during the exploration stage | (101,303 | ) | (96,570 | ) | ||
Total Stockholders' Equity | 170,647 | 175,380 | ||||
Total liabilities and stockholders' equity | $ | 180,197 | $ | 181,480 | ||
Going concern (Note 1) | ||||||
Commitments (Note 4) |
The Accompanying Note are an Integral Part of These Financial Statements
F-1
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FLM MINERALS INC. | |||||||
(An Exploration Stage Company) | |||||||
Interim Statements of Operations | |||||||
For the Three Months Ended February 29, 2008 | |||||||
(Unaudited - Prepared by Management) | |||||||
(Expressed in US Dollars) | |||||||
Period | |||||||
Three Month | From | ||||||
Period | August 31, 2006 | ||||||
Ended | (Date of Inception) | ||||||
February 29, | February 28, | to February 29, | |||||
2008 | 2007 | 2008 | |||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||
Expenses | |||||||
General and administrative | $ | 901 | $ | 859 | $ | 30,216 | |
Mineral property costs (Note 4) | - | 13,039 | 25,227 | ||||
Professional fees | 3,832 | 23,415 | 45,860 | ||||
Total expenses | 4,733 | 37,313 | 101,303 | ||||
Net loss for the period | $ | (4,733 | ) $ | (37,313 | ) $ | (101,303 | ) |
Net loss per share | |||||||
Basic and diluted | $ | (0.00 | ) $ | (0.01 | ) | ||
Weighted average number of shares outstanding - basic and diluted | 6,906,300 | 6,906,300 | |||||
The Accompanying Note are an Integral Part of These Financial Statements
F-2
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FLM MINERALS INC.
(An Exploration Stage Company)
Interim Statements of Cash Flows
For the Three Months Ended February 29, 2008
(Unaudited - Prepared by Management)
(Expressed in US Dollars)
Period | |||||||||
Three Month | From | ||||||||
Period | August 31, 2006 | ||||||||
Ended | (Date of Inception) | ||||||||
February 29, | February 28, | to February 29, | |||||||
2008 | 2007 | 2008 | |||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||
Cash flows used in operating activities | |||||||||
Net loss for the period | $ | (4,733 | ) | $ | (37,313 | ) | $ | (101,303 | ) |
Changes in operating assets and liabilities | |||||||||
Increase in accounts payable and accrued liabilities | 3,450 | 26,454 | 9,550 | ||||||
Net cash used in operating activities | (1,283 | ) | (10,859 | ) | (91,753 | ) | |||
Cash flows from financing activities | |||||||||
Capital stock issued | - | - | 271,950 | ||||||
Subscriptions collected | - | 42,600 | - | ||||||
Net cash from financial activities | - | 42,600 | 271,950 | ||||||
Cash flows used in investing activities | |||||||||
Due from related party | - | 6,480 | - | ||||||
Net cash used in investing activities | - | 6,480 | - | ||||||
Cash increase during the period | (1,283 | ) | 38,221 | 180,197 | |||||
Cash beginning of the period | 181,480 | 209,670 | - | ||||||
Cash end of the period | $ | 180,197 | $ | 247,891 | $ | 180,197 | |||
The Accompanying Notes are an Integral Part of These Financial Statements
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FLM MINERALS INC.
(An Exploration Stage Company)
Interim Statement of Stockholders' Equity
At February 29, 2008
(Unaudited - Prepared by Management)
(Expressed in US Dollars)
Deficit | |||||||||||||
Accumulated | |||||||||||||
Additional | During the | Total | |||||||||||
Common Stock | Paid-in | Subscriptions | Exploration | Stockholders' | |||||||||
Number | Par value | Capital | Receivable | Stage | Equity | ||||||||
Balance, August 31, 2006 | |||||||||||||
(date of inception) | -- | $ | -- | $ | -- | $ | -- | $ | -- | $ | -- | ||
Capital stock issued for cash | |||||||||||||
at $0.00001 per share | 6,000,000 | 60 | -- | -- | -- | 60 | |||||||
at $0.30 per share | 906,300 | 9 | 271,881 | (42,600 | ) | -- | 229,290 | ||||||
Net loss, for the period from date of inception | |||||||||||||
on August 31, 2006 to November 30, 2006 | -- | -- | - | -- | (18,200 | ) | (18,200 | ) | |||||
Balance, November 30, 2006 | 6,906,300 | 69 | 271,881 | (42,600 | ) | (18,200 | ) | 211,150 | |||||
Share subscriptions received | -- | -- | -- | 42,600 | -- | 42,600 | |||||||
Net loss for year | |||||||||||||
ended November 30, 2007 | -- | -- | -- | -- | (78,370 | ) | (78,370 | ) | |||||
Balance, November 30, 2007 | 6,906,300 | 69 | 271,881 | -- | (96,570 | ) | 175,380 | ||||||
Net loss for three months | |||||||||||||
ended February 29, 2008 | (4,733 | ) | (4,733 | ) | |||||||||
Balance, February 29, 2008 | 6,906,300 | $ | 69 | $ | 271,881 | $ | -- | $ | (101,303 | ) $ | 170,647 | ||
The Accompanying Notes are an Integral Part of These Financial Statements
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FLM Minerals Inc.
(An Exploration Stage Company)
Notes to Interim Financial Statements
For The Three Month Period Ended February 29, 2008
(Unaudited)
(Expressed in U.S. dollars)
1. | Nature of Operations and Continuance of Business |
FLM Minerals Inc. (the “Company”) was incorporated in the State of Nevada on August 31, 2006. The Company is an Exploration Stage Company. The Company’s principal business is the acquisition and exploration of mineral properties. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable. | |
The accompanying 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 29, 2008, the Company has never generated any revenues and has an accumulated loss of $101,303 since inception. These factors raise substantial doubt regarding the Company’s ability to continue a s a going concern. These interim 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 filed an SB-2 Registration Statement with the United States Securities and Exchange Commission to register 906,300 shares of common stock for resale.This was accepted. The effective date was March 9, 2007. | |
2. | Basis of Presentation |
These interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The Company applies the same accounting policies and methods in its interim financial statements as those in the audited annual financial statements. | |
3. | Newly Adopted Accounting Standards |
In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities”. This Statement permits entities to choose to measure many financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. SFAS No. 159 is effective for fiscal years beginning after November 15, 2007. The Company adopted SFAS No. 159 effective December 1, 2007. | |
In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements” ("SFAS No. 157"). SFAS 157 establishes framework for measuring fair value and expands disclosures about fair value measurements. The changes to current practice resulting from the application of this statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. The statement is effective for fiscal years beginning after November 15, 2007 and periods within those fiscal years. The Company adopted SFAS No. 157 effective December 1, 2007. | |
In June 2006, the Financial Accounting Standards Board ("FASB") issued Accounting for Uncertain Tax Positions - an Interpretation of FASB Statement No. 109, FIN 48, which prescribes a recognition and measurement model for uncertain tax positions taken or expected to be taken in the Company's tax returns. FIN 48 provides guidance on recognition, classification, presentation, and disclosure of unrecognized tax benefits. FIN 48 was effective for fiscal years beginning after December 15, 2006. The Company adopted FIN 48 effective December 1, 2007. | |
The adoption of these new pronouncements does not have a material effect on the Company’s financial position or results of operations.
F-5
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FLM Minerals Inc.
(An Exploration Stage Company)
Notes to Interim Financial Statements
For The Three Month Period Ended February 29, 2008
(Unaudited)
(Expressed in U.S. dollars)
4. | Mineral Properties | ||
On October 18, 2006, the Company signed an option to purchase a royalty agreement with Altair Minerals Inc. (“Altair”). FLM will be granted an option to acquire an undivided 100% of the right, title and interest of four unpatented mining claims located in Elko County, Nevada. Terms and conditions are as follows: | |||
a) | $50,000 cash payment by FLM: | ||
(i) | $5,000 on execution of this agreement (paid); | ||
(ii) | $10,000 on or before October 18, 2007 (see note 6); | ||
(iii) | $15,000 on or before October 18, 2008; and | ||
(iv) | $20,000 on or before October 18, 2009; | ||
b) | 500,000 common shares of FLM to be allotted and issued and certificates therefore delivered to Altair as follows: | ||
(i) | 250,000 common shares on October 18, 2007 (see note 6, no liability set up); | ||
(ii) | 250,000 common shares on October 18, 2008 |
In addition, FLM shall, in order to maintain its interest in the property, make advance royalty payments to Altair, commencing on October 18, 2010 and continuing on the 18th day of October each and every year thereafter for so long as FLM or its assigns retains its interest in the property, of $5,000 per year.
FLM will pay to Altair an annual royalty equal to three percent of Net Smelter Returns. FLM shall have the right to purchase up to one and one-half royalty percentage points and reduce the royalty to 1.5% by paying $500,000 for each 0.5% royalty purchased. For greater certainty, upon payment by FLM of $1,500,000, the royalty shall be reduced to 1.5% of Net Smelter Returns.
The cost of the mineral property was not capitalized. Cumulative to February 29, 2008, the Company has recognized property expenses of $25,227 ($5,000 for option payment; $20,227 for property evaluation), as it has not yet been determined whether there are proven or probable reserves on the property.
5. | Financial Instruments |
The Company's financial instruments consist of cash and accounts payable and accrued liabilities Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency, or credit risks arising from these financial instruments. The fair values of these financial instruments approximate their carrying value, unless otherwise noted. | |
Currency risk is the risk to the Company's earnings that arises from fluctuations of foreign exchange rates and the degree of volatility of these rates. The Company does not use derivative instruments to reduce its exposure to foreign currency risk. | |
At February 29, 2008 the Company had the following financial assets and liabilities in Canadian dollars: | |||||
USD equivalent | CDN Dollars | ||||
Cash on deposit | $ | 5,405 | $ | 5,405 | |
Accounts payable and accrued liabilities | $ | 9,450 | $ | 9,450 |
At February 29, 2008 US dollar amounts were converted at a rate of $1.00 Canadian dollars to $1.00 US dollar.
6. Subsequent Events
Subsequent to February 29, 2008, the Company is negotiating with Altair Minerals Inc. to reduce the option payments. No agreement has been reached. Technically the agreement with Altair Minerals Inc. is in default, however, the Company is attempting to renegotiate the terms.
F-6
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking states are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or out predictions.
We are a start-up, exploration stage corporation and have not yet generated or realized any revenues from our business operations.
Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have not generated any revenues and no revenues are anticipated until we begin removing and selling minerals. Accordingly, we must raise cash from sources other than the sale of minerals found on the property. Our only other source for cash at this time is investment by others in our completed private placement. The cash we raised will allow us to stay in business for at least one year. Our success or failure will be determined by what we find under the ground.
To meet our need for cash we raised money from our private placement. If we find mineralized material and it is economically feasible to remove the mineralized material, we will attempt to raise additional money through a subsequent private placement, public offering or through loans. If we do not have enough money to complete our exploration of the property, we will have to find alternative sources, like a second public offering, a private placement of securities, or loans from our officers or others.
Our officers and directors are unwilling to make any commitment to loan us any money at this time. At the present time, we have not made any arrangements to raise additional cash. If we need additional cash and can't raise it, we will either have to suspend activities until we do raise the cash, or cease activities entirely. Other than as described in this paragraph, we have no other financing plans.
We do not own any interest in any property, but merely have the right to conduct exploration activities on one property. Even if we complete our current exploration program and it is successful in identifying a mineral deposit, we will have to spend substantial funds on further drilling and engineering studies before we will know if we have a commercially viable mineral deposit, a reserve.
We will be conducting research in the form of exploration of the property. Our exploration program is explained in as much detail as possible in the business section. We are not going to buy or sell any plant or significant equipment during the next twelve months. We will not buy any equipment until have located a reserve and we have determined it is economical to extract the minerals from the land.
We do not intend to interest other companies in the property if we find mineralized materials. We intend to try to develop the reserves ourselves.
If we are unable to complete any phase of exploration because we don’t have enough money, we will cease activities until we raise more money. If we can’t or don’t raise more money, we will cease activities. If we cease activities, we don’t know what we will do and we don’t have any plans to do anything.
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We do not intend to hire additional employees at this time. All of the work on the property will be conduct by unaffiliated independent contractors that we will hire. The independent contractors will be responsible for surveying, geology, engineering, exploration, and excavation. The geologists will evaluate the information derived from the exploration and excavation and the engineers will advise us on the economic feasibility of removing the mineralized material.
Results of Operations
From Inception on August 31, 2006 to February 29, 2008
We entered into an option agreement to purchase the New Dawn property comprised of four twenty acre mining claims.
We are negotiating with Altair Minerals Inc. to reduce the option payments. No agreement has been reached. Technically the agreement with Altair Minerals Inc. is in default, however, we are attempting to renegotiate the terms.
We raised $271,890 in a private placement pursuant to Regulation S of the Securities Act of 1933.
Since inception, we have used the proceeds from the private placement to fund our operations. No work has been done on the property as at February 29, 2008. Management has evaluated two potentially larger and presumably more financeable prospects in Mainland China. Based on our evaluations, neither has been acquired.
Our Proposed Exploration Program
We will be prospecting for gold with the goal of identifying mineralized material. Mineralized material is a mineralized body which has been delineated by appropriate spaced drilling or underground sampling to support sufficient tonnage and average grade of metals to justify removal.
We intend to employ a systematic exploration program utilizing surface geochemistry, radiometric surveys and geologic mapping is proposed. Any anomalies of interest may be further investigated by trenching. Targets identified, and considered significant enough to further explore, would be tested by an appropriate spaced drilling program.
At present, the property should be considered undeveloped raw land. Work to date has only included the staking of four contiguous lode claims and the required filing with both county and federal agencies.
The following is our plan and milestones for exploration:
The exploration work on this property should be conducted in two phases, with advancement to the second phase only upon successful completion of the first.
PHASE 1
1. Stake an additional 20 claims, adjoining to the north of the existing claims (in a 2 x 10 matrix); according to BLM records, this ground is unclaimed at present.
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2. If possible, obtain the data collected during previous exploration campaigns if any, from their respective operators. Establish the provenance of this data, verify it, and if suitable, digitize and transfer all available exploration data onto a base map.
3. Carry out lithologic, structural, and alteration mapping, with particular focus on the Eocene rhyolite dike and the adjacent Palaeozoic rocks.
4. Carry out geochemical soil and rock-chip sampling. Analyses should include gold, its pathfinder elements (As, Sb, Hg, Tl), and elements associated with oilfield/basin brines (i.e., B, Br, F, I, Pb, Zn, V).
5. Conduct a CSAMT (Controlled Source Audio-frequency Magneto Tellurics ) geophysical survey along profiles across the entire property, and if possible, on the newly staked claims.
6. Review results of Phase 1 work, and, if warranted, select and prioritize targets for drilling.
Contingent on a review of the results of Phase 1 and approval by an independent qualified person, the project should continue to Phase 2.
PHASE 2
1. | Drill the targets identified by the Phase 1 work. |
2. | Sample and assay all drill core or cuttings obtained from altered rocks. |
3. | Review results of Phase 2 work, and, where warranted, select targets for further drilling. |
Cost Estimates | ||
Estimated Budget | ||
PHASE 1 | ||
Additional claim staking and recording | $ | 5,000 |
Digitizing data and transfer to base maps | $ | 5,000 |
Lithologic and structural mapping, sampling | $ | 5,000 |
Geochemical soil and rock chip survey, and analyses | $ | 10,000 |
Geophysical survey (CSAMT) | $ | 20,000 |
Independent consultants, supervision, and reports | $ | 5,000 |
Total Phase 1 | $ | 50,000 |
PHASE 2 | ||
Core or Reverse Circulation drilling (3,000 ft.) | $ | 60,000 |
Sampling and assays | $ | 10,000 |
Independent consultants, supervision, and reports | $ | 20,000 |
Contingencies | $ | 20,000 |
Total Phase 2 | $ | 110,000 |
We estimate that Phase 1 will take approximately six months and Phase 2 will take approximately eight months.
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We intend to initiate Phase 1 in May 2008. Management intends to evaluate several larger mining prospects located in Red Lake, Ontario, Canada and known mining regions of Mainland China.
Limited Operating History; Need for Additional Capital
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 operations. We cannot guarantee we will be successful in our business operations. 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.
To become profitable and competitive, we must 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 operations. Equity financing could result in additional dilution to existing shareholders.
Liquidity and Capital Resources
As of the date of this report, we have yet to generate any revenues from our business operations.
We issued 6,906,300 shares of common stock pursuant to the exemption from registration contained in Regulation S of the Securities Act of 1933. This was accounted for as a purchase of shares of common stock.
As of February 29, 2008, our total assets were $180,197 and our total liabilities were $9,550.
Recent accounting pronouncements
In February, 2007, the FASB issued Statement of Financial Accounting Standards No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities - Including an amendment of FASB Statement No. 115" (hereinafter "SFAS No. 159"). This statement permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This Statement is expected to expand the use of fair value measurement, which is consistent with the Board's long-term measurement objectives for accounting for financial instruments. This statement is effective as of the beginning of an entity's first fiscal year that begins after November 15, 2007, although earlier adoption is permitted. Management has not determined the effect that adopting this statement would have on the Company's financial condition or results of operation.
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In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106, and 132(R)”. This statement requires employers to recognize the overfunded or underfunded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not-for-profit organization. This statement also requires an employer to measure the funded status of a plan as of the date of its year-end statement of fina ncial position, with limited exceptions. The provisions of SFAS No. 158 are effective for employers with publicly traded equity securities as of the end of the fiscal year ending after December 15, 2006. The adoption of this statement is not expected to have a material effect on the Company's future reported financial position or results of operations.
In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements”. The objective of SFAS No. 157 is to increase consistency and comparability in fair value measurements and to expand disclosures about fair value measurements. SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements and does not require any new fair value measurements. The provisions of SFAS No. 157 are effective for fair value measurements made in fiscal years beginning after November 15, 2007. The adoption of this statement is not expected to have a m aterial effect on the Company's future reported financial position or results of operations.
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48,“Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statements No. 109”. FIN 48 clarifies the accounting for uncertainty in income taxes by prescribing a two-step method of first evaluating whether a tax position has met a more likely than not recognition threshold and second, measuring that tax position to determine the amount of benefit to be recognized in the financial statements. FIN 48 provides guidance on the presentation of such positions within a classified statement of financial position as well as on derecognition, interest and penalties, accounting in interim perio ds, disclosure, and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. The adoption of this statement is not expected to have a material effect on the Company's future reported financial position or results of operations.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures - Our Principal Executive Officer and Principal Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures, that our disclosure controls and procedures were effective.
Internal Controls Over Financial Reporting - We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.
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PART II. OTHER INFORMATION | |||||
ITEM 6. EXHIBITS. | |||||
Incorporated by reference | |||||
Exhibit | Filed | ||||
Number | Document Description | Form | Date | Number | herewith |
3.1 | Articles of Incorporation. | SB-2 | 2/28/07 | 3.1 | |
3.2 | Bylaws. | SB-2 | 2/28/07 | 3.2 | |
4.1 | Specimen Stock Certificate. | SB-2 | 2/28/07 | 4.1 | |
10.1 | Option Agreement | SB-2 | 2/28/07 | 10.1 | |
14.1 | Code of Ethics. | 10-K | 2/28/08 | 14.1 | |
31.1 | Certification of Principal Executive Officer pursuant to | X | |||
15d-15(e), promulgated under the Securities and | |||||
Exchange Act of 1934, as amended. | |||||
31.2 | Certification of Principal Financial Officer pursuant to | X | |||
15d-15(e), promulgated under the Securities and | |||||
Exchange Act of 1934, as amended. | |||||
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as | X | |||
adopted pursuant to Section 906 of the Sarbanes-Oxley | |||||
Act of 2002 (Chief Executive Office). | |||||
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as | X | |||
adopted pursuant to Section 906 of the Sarbanes-Oxley | |||||
Act of 2002 (Chief Financial Officer). | |||||
99.2 | Audit Committee Charter. | 10-K | 2/28/08 | 99.2 | |
99.3 | Disclosure Committee Charter. | 10-K | 2/28/08 | 99.3 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following person on behalf of the Registrant and in the capacities on this 10th day of April, 2008.
FLM MINERALS INC.
(Registrant)
BY: GEORGE HEARD
George Heard
President, Principal Executive Officer, and a
member of the Board of Directors
BY: JIANXING QIAN
Jianxing Qian
Principal Accounting Officer, Principal
Financial Officer, Secretary/Treasurer, and a
member of the Board of Directors
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EXHIBIT INDEX | |||||
Incorporated by reference | |||||
Exhibit | Filed | ||||
Number | Document Description | Form | Date | Number | herewith |
3.1 | Articles of Incorporation. | SB-2 | 2/28/07 | 3.1 | |
3.2 | Bylaws. | SB-2 | 2/28/07 | 3.2 | |
4.1 | Specimen Stock Certificate. | SB-2 | 2/28/07 | 4.1 | |
10.1 | Option Agreement | SB-2 | 2/28/07 | 10.1 | |
14.1 | Code of Ethics. | 10-K | 2/28/08 | 14.1 | |
31.1 | Certification of Principal Executive Officer pursuant to | X | |||
15d-15(e), promulgated under the Securities and | |||||
Exchange Act of 1934, as amended. | |||||
31.2 | Certification of Principal Financial Officer pursuant to | X | |||
15d-15(e), promulgated under the Securities and | |||||
Exchange Act of 1934, as amended. | |||||
32.1 | Certification pursuant to 18 U.S.C. Section 1350, as | X | |||
adopted pursuant to Section 906 of the Sarbanes-Oxley | |||||
Act of 2002 (Chief Executive Office). | |||||
32.2 | Certification pursuant to 18 U.S.C. Section 1350, as | X | |||
adopted pursuant to Section 906 of the Sarbanes-Oxley | |||||
Act of 2002 (Chief Financial Officer). | |||||
99.2 | Audit Committee Charter. | 10-K | 2/28/08 | 99.2 | |
99.3 | Disclosure Committee Charter. | 10-K | 2/28/08 | 99.3 |
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