Registration No. 333-149680
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM S-1/A-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
RIORIDGE RESOURCES CORP.
(Name of small business issuer in its charter)
Nevada | 1081 |
(State or Other Jurisdiction of Organization) | (Primary Standard Industrial Classification Code) |
_________________________
200 Centennial Avenue | National Registered Agents Inc. of NV |
Suite 200 | 1000 East Williams Street, Suite 204 |
Piscataway, New Jersey 08854 | Carson City, Nevada 89701 |
732-377-2000 | (800) 550-6724 |
(Address and telephone number of registrant's | (Name, address and telephone |
executive office) | number of agent for service) |
_________________________
Copies to:
The Law Office of Conrad C. Lysiak, P.S.
601 West First Avenue, Suite 903
Spokane, Washington 99201
(509) 624-1475
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
If any of the securities being registered on the Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933 check the following box: [ X ]
If this Form is filed to register additional common stock for an offering under Rule 462(b) of the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
If this Form is a post-effective amendment filed under Rule 462(c) of the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.
If this Form is a post-effective amendment filed under Rule 462(d) of the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. [ ]
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” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated Filer | [ | ] | Accelerated Filer | [ ] |
|
Non-accelerated Filer | [ | ] | Smaller reporting company | [X] |
(Do not check if a smaller reporting company) | | |
CALCULATION OF REGISTRATION FEE |
|
Securities to be | Amount To Be | Offering Price Per | Aggregate | Registration Fee |
Registered | Registered | Share | Offering Price | [1] |
Common Stock by | | | | | | | | |
Selling Shareholders: | 4,100,000 | $ | 0.01 | $ | 41,000 | $ | | 1.61 |
|
Total | 4,100,000 | $ | 0.01 | $ | 41,000 | $ | | 1.61 |
|
[1] | | Estimated solely for purposes of calculating the registration fee under Rule 457. | | |
REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933, OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON DATES AS THE COMMISSION, ACTING UNDER SAID SECTION 8(a), MAY DETERMINE.
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Prospectus
RIORIDGE RESOURCES CORP.
4,100,000 Shares of Common Stock
We are registering for sale by selling shareholders, 4,100,000 shares of common stock. We will not receive any proceeds from the shares sold by the selling shareholders.
The sales price to the public is fixed at $0.01 per share until such time as the shares of our common stock become traded on the Bulletin Board operated by the Financial Industry Regulatory Authority or another exchange. If our common stock becomes quoted on the Bulletin Board or another exchange, then the sales price to the public will vary according to the selling decisions of each selling shareholder and the market for our stock at the time of resale.
Our shares of common stock are not traded anywhere.
Investing in our common stock involves risks. See "Risk Factors" starting at page 6.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. It is illegal to tell you otherwise.
The date of this prospectus is ____________________.
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TABLE OF CONTENTS |
| PageNo. |
| |
Summary of Prospectus | 5 |
| |
Risk Factors | 6 |
| |
Use of Proceeds | 11 |
| |
Determination of Offering Price | 11 |
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Dilution of the Price You Pay for Your Shares | 11 |
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Plan of Distribution; Terms of the Offering | 11 |
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Management's Discussion and Analysis of Financial Condition or Plan of Operation | 14 |
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Business | 17 |
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Management | 24 |
| |
Executive Compensation | 25 |
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Principal and Selling Shareholders | 27 |
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Description of Securities | 30 |
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Certain Transactions | 31 |
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Litigation | 31 |
| |
Experts | 32 |
| |
Legal Matters | 32 |
| |
Financial Statements | 32 |
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SUMMARY OF OUR OFFERING
Our business
We are an exploration stage corporation. We own one property. The one property consists of mining claims. We intend to explore for gold on the property.
Our principal executive office is located at 200 Centennial Avenue, Suite 200, Piscataway, New Jersey 08854. Our telephone number is 732-377-2000 and our registered agent for service of process is the National Registered Agents Inc. of NV, located at 1000 East William Street, Suite 204, Carson City, Nevada 89701. Our fiscal year end is December 31.
Management, or affiliates thereof, will not purchase shares in this offering.
The offering
Following is a brief summary of this offering:
Securities being offered by selling shareholders | | 4,100,000 shares of common stock |
Offering price per share | | $0.01 |
Net proceeds to us | | None |
Number of shares outstanding before the offering | | 9,100,000 |
Number of shares outstanding after the offering if all of the | | 9,100,000 |
shares are sold | | |
Selected financial data
The following financial information summarizes the more complete historical financial information at the end of this prospectus.
| | As of December 31, 2007 |
| | (Audited) |
Balance Sheet | | |
Total Assets | $ | 20,833 |
Total Liabilities | $ | 125 |
Stockholders Deficiency | $ | 20,708 |
| | Period from |
| | November 13, 2007 (date of |
| | inception) to December 31, 2007 |
| | (Audited) |
Income Statement | | |
Revenue | $ | 0 |
Total Expenses | $ | 26,792 |
Net Loss | $ | 26,792 |
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RISK FACTORS
Please consider the following risk factors before deciding to invest in our common stock.
Risks associated with RIORIDGE RESOURCES CORP.
1. Because our auditors have issued a going concern opinion, there is substantial uncertainty we will continue operations, in which case you could lose your investment.
Our auditors have issued a going concern opinion. This means that there is substantial doubt that we can continue as an ongoing business for the next twelve months. As such, we may have to cease operations and you could lose your investment.
2.Because the probability of an individual prospect ever having reserves is extremely remote, any funds spent on exploration will probably be lost.
The probability of an individual prospect ever having reserves is extremely remote. In all probability the property does not contain any reserves. As such, any funds spent on exploration will probably be lost, which would result in a loss of your investment.
3.We lack an operating history and have losses which we expect to continue into the future. As a result, we may have to suspend or cease operations.
We were incorporated on November 13, 2007 and we have not started our proposed business operations or realized any revenues. We have no operating history upon which an evaluation of our future success or failure can be made. Our net loss since inception is $26,792. The loss was a result of the payment of fees for our claims, incorporation, legal and accounting services. Our ability to achieve and maintain profitability and positive cash flow is dependent upon:
| * | our ability to find mineralized material |
| * | our ability to extra the mineralized material |
| * | our ability to generate revenues from the sale of mineralized material |
Based upon current plans, we expect to incur operating losses in future periods. This will happen because there are expenses associated with the research and exploration of our mineral properties. As a result, we may not generate revenues in the future. Failure to generate revenues will cause us to suspend or cease operations.
4.We have no history of mineral production or mining operations.
There is no assurance that commercial quantities of gold will be discovered, nor is there any assurance that our exploration program thereon will yield positive results. Even if commercial quantities of gold are discovered, there can be no assurance that any of our properties will ever be brought to a stage where gold resources can profitably be produced. Factors which may limit our ability to produce gold resources from our properties include, but are not limited to, the spot price of gold, availability of additional capital and financing and the nature of any mineral deposits. We do not have a history of mining operations and there is no assurance that we will produce revenue, operate profitably or provide a return on investment in the future.
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5. Title to our properties may be subject to other claims.
There may be valid challenges to the title to properties we own or control which, if successful, could impair our exploration activities on them. Title to such properties may be challenged or impugned due to unknown prior unrecorded agreements or transfers or undetected defects in titles. Our mineral rights consist of “unpatented” lode mining claims created and maintained on state lands in accordance with the laws governing Nevada state mining claims. Unpatented mining claims are unique property interests, and are generally considered to be subject to greater title risk than other real property interests because the validity of unpatented mining claims is often uncertain. Also, unpatented mining claims are always subject to possible challenges by third parties or validity contests by the federal and state governments. In addition, there are few public records that definitively determine the issues of validity and ownership of unpatented state mining claims.
6. Estimates of mineralized material are subject to evaluation uncertainties that could result in project failure.
Our exploration and future mining operations, if any, will be subject to risks associated with being able to accurately predict the quantity and quality of mineralized material within the earth using statistical sampling techniques. Estimates of any mineralized material on any of our properties would be made using samples obtained from appropriately placed underground workings and intelligently designed drilling. There is an inherent variability of assays between check and duplicate samples taken adjacent to each other and between sampling points that cannot be reasonably eliminated. Additionally, there also may be unknown geologic details that have not been identified or correctly appreciated at the current level of accumulated knowledge about our properties. This could result in uncertainties that cannot be reasonably eliminated from the process of estimating mineralized material. If these estimates were to prove to be unreliable, we could implement an exploitation plan that may not lead to commercially viable operations in the future.
7. Our activities are subject to environmental laws and regulation which may materially adversely affect our future operations, in which case our operations could be suspended or terminated.
We are subject to a variety of federal, state and local statutes, rules and regulations in connection with our exploration activities. We are required to obtain various governmental permits to conduct exploration at our properties. Obtaining the necessary governmental permits is often a complex and time-consuming process involving numerous federal, state and local agencies. The duration and success of each permitting effort is contingent upon many variables not within our control. In the context of permitting, including the approval of reclamation plans, we must comply with known standards, existing laws, and regulations that may entail greater or lesser costs and delays depending on the nature of the activity to be permitted and the interpretation of the laws and regulations implemented by the permitting authority. The failure to obtain certain permits or the adoption of more stringent permitting requireme nts could have a material adverse effect on our business, plans of operation, and properties in that we may not be able to proceed with our exploration programs. Federal legislation and regulations adopted and administered by the U.S. Environmental Protection Agency, Forest Service, Bureau of Land Management, Fish and Wildlife Service, Mine Safety and Health Administration, and other federal agencies, and legislation such as the Federal Clean
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Water Act, Clean Air Act, National Environmental Policy Act, Endangered Species Act, and Comprehensive Environmental Response, Compensation, and Liability Act, have a direct bearing on U.S. exploration and mining operations. These regulations will make the process for preparing and obtaining approval of a plan of operations much more time-consuming, expensive, and uncertain. Plans of operation will be required to include detailed baseline environmental information and address how detailed reclamation performance standards will be met.
8. Title to our properties may be defective.
We hold our interests in our properties in the form of unpatented mining claims. Unpatented mining claims are unique property interests, in that they are subject to the paramount title of the United States of America, and rights of third parties to uses of the surface and to minerals within their boundaries, and are generally considered to be subject to greater title risk than other real property interests. The validity of all unpatented mining claims is dependent upon inherent uncertainties and conditions.
9.We may have to deviate from our plan of operation, however, if you we do, we will not return any funds to you.
Mining exploration is speculative and chancy. If we are not successful in locating mineralized material, we will have to cease operations or seek another exploration project. Whatever the outcome of our current exploration program, our officers and directors are entrusted with our management for the benefit of our stockholders. As such our management is bound to act in the best interests of our shareholders. If it is in the best interests of our shareholders to modify a proposed exploration program, expand operations into new areas, or entirely change our business operations, it must and will be done. If we deviate from our plan of operation, we will not return any funds to you.
10.We rely on our sole officer and director, outside contractors, experts and other advisors and the loss of any of them, if they cannot be replaced, could have a material adverse effect on our business and financial performance.
The success of our operations and activities is dependent to a significant extent on the efforts and abilities of our sole officer and director, as well as outside contractors, experts and other advisors. In making an investment in our securities, you must be willing to rely to a significant extent on our sole officer’s and director’s discretion and judgment, as well as the expertise and competence of outside contractors, experts and other advisors that we hire to advise us. The loss of our sole officer and director wil adversely affect our operations and financial performance.
11.Because we are small and do not have any ore reserves or much capital, we may have to limit our exploration activity which may result in a loss of your investment.
Because we are small and do not have ore reserves or much capital, we must limit our exploration activity. As such we may not be able to complete an exploration program that is as thorough as we would like. In that event, an existing ore body may go undiscovered. Without an ore body, we cannot generate revenues and you will lose your investment.
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12.We may not have access to all of the supplies and materials we need to begin exploration, which could cause us to delay or suspend operations.
Competition and unforeseen limited sources of supplies in the industry could result in occasional spot shortages of supplies, such as dynamite, and certain equipment such as bulldozers and excavators that we might need to conduct exploration. We have not attempted to locate or negotiate with any suppliers of products, equipment or materials. We will attempt to locate products, equipment and materials after this offering is complete. If we cannot find the products and equipment we need, we will have to suspend our exploration plans until we do find the products and equipment we need.
13.Because our sole officer and director has other outside business activities and will only be devoting 10% of his time or approximately four hours per week to our operations, our operations may be sporadic which may result in periodic interruptions or suspensions of exploration.
Because our sole officer and director has other outside business activities and will only be devoting 10% of their time or four hours per week to our operations, our operations may be sporadic and occur at times which are convenient to him. As a result, exploration of the property may be periodically interrupted or suspended.
14.We are subject to potential risks and liabilities associated with pollution of the environment and disposal of waste products from our mining activities.
All phases of our operations are subject to environmental regulation in the jurisdictions in which we operate. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set forth limitations on the generation, transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect our operations. Environmental hazards may exist on the properties which are unknown to us at present and which have been caused by previous or exist ing owners or operators of the properties. We are subject to potential risks and liabilities associated with pollution of the environment and disposal of waste products from our mining activities. Reclamation costs are uncertain and planned expenditures estimated by management may differ from the actual expenditures required. The payment of any liabilities or the costs that we may incur to remedy environmental impacts would reduce funds otherwise available to us for operations. We might be required to suspend operations or enter into interim compliance measures pending completion of the required remedy. The potential financial exposure to us may be significant. We have not purchased insurance for environmental risks (including potential liability for pollution or other hazards as a result of the disposal or waste products occurring from exploration and production) as it is not generally available at what we believe to be a reasonable price.
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15.Because our management does not have technical training or experience in exploring for, starting, and operating an exploration program, we will have to hire qualified personnel. If we can’t locate qualified personnel, we may have to suspend or cease operations which will result in the loss of your investment.
Because our management is inexperienced with exploring for, starting, and operating an exploration program, we will have to hire qualified persons to perform surveying, exploration, and excavation of the property. Our management has no direct training or experience in these areas and as a result may not be fully aware of many of the specific requirements related to working within the industry. Management’s decisions and choices may not take into account standard engineering or managerial approaches, mineral exploration companies commonly use. Consequently our operations, earnings and ultimate financial success could suffer irreparable harm due to management’s lack of experience in this industry. As a result we may have to suspend or cease operations which will result in the loss of your investment.
Risks associated with this offering:
16.Because our sole officer and director owns more than 50% of the outstanding shares, he is able to decide who will be directors and you will not be able to elect any directors or control operations.
Our sole officer and director owns 5,000,000 shares of our common stock and will continue to control us. As a result, our sole officer and director is able to elect all of our directors and control our operations.
17.Because there is no public trading market for our common stock, you may not be able to resell your stock and as a result your investment is illiquid.
There is currently no public trading market for our common stock. Therefore there is no central place, such as stock exchange or electronic trading system, to resell your shares. If you do want to resell your shares, you will have to locate a buyer and negotiate your own sale, of which there is no assurance. As a result, your investment is illiquid.
USE OF PROCEEDS
We will not receive any proceeds from the sale of the shares of common stock in this offering. All proceeds from the sale of the shares of common stock will be received by the selling shareholders.
DETERMINATION OF OFFERING PRICE
The price of the shares has been determined by our board of directors. We selected the $0.01 price for the sale of our shares of common stock. Currently there is no market for the shares and we wanted to give our shareholders the ability to sell their shares for the price they paid us. If our shares are listed for trading on the Bulletin Board, the price of the shares will be established by the market.
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DILUTION
Since all of the shares of common stock being registered are already issued and outstanding, no dilution will result from this offering.
PLAN OF DISTRIBUTION; TERMS OF THE OFFERING
There are forty one selling shareholders. They may be deemed underwriters. They may sell some or all of their common stock in one or more transactions, including block transactions:
| 1. | On such public markets or exchanges as the common stock may from time to time be trading; |
| 2. | In privately negotiated transactions; |
| 3. | Through the writing of options on the common stock; |
| 4. | In short sales; or |
| 5. | In any combination of these methods of distribution. |
The sales price to the public is fixed at $0.01 per share until such time as the shares of our common stock become traded on the Bulletin Board operated by the Financial Industry Regulatory Authority or another exchange. If our common stock becomes quoted on the Bulletin Board or another exchange, then the sales price to the public will vary according to the selling decisions of each selling shareholder and the market for our stock at the time of resale. In these circumstances, the sales price to the public may be:
| 1. | The market price of our common stock prevailing at the time of sale; |
| 2. | A price related to such prevailing market price of our common stock; or |
| 3. | Such other price as the selling shareholders determine from time to time. |
The shares may also be sold in compliance with the Securities and Exchange Commission's Rule 144. The selling shareholders may also sell their shares directly to market makers acting as principals or brokers or dealers, who may act as agent or acquire the common stock as a principal. Any broker or dealer participating in such transactions as agent may receive a commission from the selling shareholders, or, if they act as agent for the purchaser of such common stock, from such purchaser. The selling shareholders will likely pay the usual and customary brokerage fees for such services. Brokers or dealers may agree with the selling shareholders to sell a specified number of shares at a stipulated price per share and, to the extent such broker or dealer is unable to do so acting as agent for the selling shareholders, to purchase, as principal, any unsold shares at the price required to fulfill the respective br oker's or dealer's commitment to the selling shareholders. Brokers or dealers who acquire shares as principals may thereafter resell such shares from time to time in transactions in a market or on an exchange, in negotiated transactions or otherwise, at market prices prevailing at the time of sale or at negotiated prices, and in connection with such re-sales may pay or receive commissions to or from the purchasers of such shares. These transactions may involve cross and block transactions that may involve sales to and through other brokers or dealers.
We can provide no assurance that all or any of the common stock offered will be sold by the selling shareholders. We are bearing all costs relating to the registration of the common stock, estimated to be $30,000. The selling shareholders, however, will pay commissions or other fees
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payable to brokers or dealers in connection with any sale of the common stock. The selling shareholders must comply with the requirements of the Securities Act of 1933 and the Securities Exchange Act of 1934 in the offer and sale of the common stock. In particular, during such times as the selling shareholders may be deemed to be engaged in a distribution of the common stock, and therefore be considered to be an underwriter, they must comply with applicable law and may, among other things:
1. Not engage in any stabilization activities in connection with our common stock;
2. Furnish each broker or dealer through which common stock may be offered, such as copies of this prospectus, as amended from time to time, as may be required by such broker or dealer; and
3. Not bid for or purchase any of our securities or attempt to induce any person to purchase any of our securities other than as permitted under the Securities Exchange Act of 1934.
There is no assurance that any of the selling shareholders will sell any or all of the shares offered by them. Under the securities laws of certain states, the shares may be sold in such states only through registered or licensed brokers or dealers. In addition, in certain states the shares may not be sold unless they have been registered or qualified for sale in that state or an exemption from registration or qualification is available and is met.
Of the 9,100,000 shares of common stock outstanding as of December 31, 2007, 5,000,000 are owned by our sole officer and director and may only be resold pursuant to this registration statement or in compliance with Rule 144 of the Securities Act of 1933.
We have not declared any cash dividends, nor do we intend to do so. We are not subject to any legal restrictions respecting the payment of dividends, except that they may not be paid to render us insolvent. Dividend policy will be based on our cash resources and needs and it is anticipated that all available cash will be needed for our operations in the foreseeable future.
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Section 15(g) of the Exchange Act
Our shares are covered by Section 15(g) of the Securities Exchange Act of 1934, as amended, and Rules 15g-1 through 15g-6 and Rule 15g-9 promulgated thereunder. They impose additional sales practice requirements on broker/dealers who sell our securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouses). While Section 15(g) and Rules 15g-1 through 15g-6 apply to brokers-dealers, they do not apply to us.
Rule 15g-1 exempts a number of specific transactions from the scope of the penny stock rules. Rule 15g-2 declares unlawful broker/dealer transactions in penny stocks unless the broker/dealer has first provided to the customer a standardized disclosure document.
Rule 15g-3 provides that it is unlawful for a broker/dealer to engage in a penny stock transaction unless the broker/dealer first discloses and subsequently confirms to the customer current quotation prices or similar market information concerning the penny stock in question.
Rule 15g-4 prohibits broker/dealers from completing penny stock transactions for a customer unless the broker/dealer first discloses to the customer the amount of compensation or other remuneration received as a result of the penny stock transaction.
Rule 15g-5 requires that a broker/dealer executing a penny stock transaction, other than one exempt under Rule 15g-1, disclose to its customer, at the time of or prior to the transaction, information about the sales persons compensation.
Rule 15g-6 requires broker/dealers selling penny stocks to provide their customers with monthly account statements.
Rule 15g-9 requires broker/dealers to approved the transaction for the customer's account; obtain a written agreement from the customer setting forth the identity and quantity of the stock being purchased; obtain from the customer information regarding his investment experience; make a determination that the investment is suitable for the investor; deliver to the customer a written statement for the basis for the suitability determination; notify the customer of his rights and remedies in cases of fraud in penny stock transactions; and, the FINRA's toll free telephone number and the central number of the North American Administrators Association, for information on the disciplinary history of broker/dealers and their associated persons. The application of the penny stock rules may affect your ability to resell your shares.
The application of the penny stock rules may affect your ability to resell your shares.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This section of the prospectus 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 prospectus. These forward-looking states are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.
Plan of Operation
We are a start-up, exploration stage corporation and have not yet generated or realized any revenues from our business activities.
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 sources for cash at this time is loans from related parties and additional sales of common stock. Our success or failure will be determined by what additional financing we obtain and 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 sole officer and director is unwilling to make any commitment to loan us any money except to cover expenses relating to reclamation if materialized material is not found 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 of this prospectus. 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.
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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.
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.
Milestones
The milestones are as follows:
1. April 2008 to July 2008 - retain our consultant to manage the exploration of the property. -Maximum cost of $5,000. Time of retention 0-90 days.
2. August 2008 to November 2008 - trenching and sampling. The total cost will be $14,000. The activity will be subcontracted to non-affiliated third parties. Time to conduct trenching and sampling - 120 days.
3. December 2008 to March 2009 - have an independent third party analyze the samples. We estimate that it will cost $2,000 to analyze the samples and will take 30 days.
Funds for the foregoing activities are expected to be obtained from existing cash and additional loans from related parties and/or additional sales of common stock.
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 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.
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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 operations. Equity financing could result in additional dilution to existing shareholders.
Liquidity and Capital Resources
Since inception, we have issued 9,100,000 shares of our common stock and received $46,000.
As of the date of this prospectus, we have yet to begin operations and therefore have not generated any revenues.
In November, 2007, we issued 5,000,000 shares of common stock to our sole officer and director, Venugopal Rao Balla, pursuant to the exemption from registration contained in Regulation S of the Securities Act of 1933. The purchase price of the shares was $5,000. This was accounted for as an acquisition of shares. Venugopal Rao Balla covered some of our initial expenses by paying $125.00 for incorporation documents. The amount owed to Mr. Balla is non-interest bearing, unsecured and due on demand. Further the agreement with Mr. Balla is oral and there is no written document evidencing the agreement.
As of December 31, 2007, our total assets were $20,833 and our total liabilities were $125.
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BUSINESS
General
We were incorporated in the State of Nevada on November 13, 2007. We are an exploration stage corporation. An exploration stage corporation is one engaged in the search of mineral deposits or reserves which are not in either the development or production stage. We intend to conduct exploration activities on the Rioridge Claim located in Clark County, Nevada. We maintain our statutory registered agent's office at National Registered Agents, Inc. of NV, 1000 East William Street, Suite 204, Carson City, Nevada 89701 and our business office is located at 200 Centennial Avenue, Suite 200, Piscataway, New Jersey 08854. Our telephone number is 732-377-2000. This is our mailing address as well.
There is no assurance that a commercially viable mineral deposit exists on the property and further exploration will be required before a final evaluation as to the economic feasibility is determined.
We have no plans to change its business activities or to combine with another business, and is not aware of any events or circumstances that might cause its plans to change.
We have no revenues, have achieved losses since inception, have no operations, have been issued a going concern opinion and rely upon the sale of our securities and loans from our officer and director to fund operations.
The fee simple title to the property is owned by the United States of America. Mineral Property Services staked the land and has obtained a lease from the BLM. The property is referred to as The Rio Lode Claim. The lease grants us the right to enter on the property with our employees, representatives and agents, and to prospect, explore, test, develop, work and mine the property.
The property is unencumbered and there are no competitive conditions which affect the property. Further, there is no insurance covering the property and we believe that no insurance is necessary since the property is unimproved and contains no buildings or improvements.
To date we have not performed any work on the property. We are presently in the exploration stage and we cannot guarantee that a commercially viable mineral deposit, a reserve, exists in the property until further exploration is done and a comprehensive evaluation concludes economic and legal feasibility.
Claim
The Rio Lode Claim was located on November 24, 2007 and filed on December 7, 2007 in the Clark County recorder’s office in Las Vegas as File 081, Page 0010 in the official records book No. T20070212450. The Rio Lode Claim is located within Section 6, Township 25-S, Range 58-E, in the Yellow Pine Mining District of Clark County, Nevada.
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Location and Access
The Rio Lode Claim is located within Section 6, Range 58E, Township 25S in the Yellow Pine Mining District of Clark County, Nevada. Access from Las Vegas, Nevada to the Rio Lode Claim is southward via Interstate Highway #15 for approximately 28 miles to the town of Jean then westward for eight miles to Goodsprings and the Sandy Valley Road to the Rio Lode Claim which straddles the road.
History
There is no reported production from the Rio Lode Claim, however prospect pits within the confines of the Rio Lode Claim indicates former exploration of mineral zones.
Physiography, Climate, Vegetation and Water
The central portion of the Rio Lode Claim is situated within the Sandy Valley at an elevation of 1,100 feet. The northwestern portion of the Claim covers gentle slopes reaching an elevation of 1,140 feet. The eastern portion of the Claim covers moderate slopes reaching an elevation of 1,320 feet at the eastern boundary. The area is of a typically desert climate with relatively high temperatures and low precipitation. Vegetation consists mainly of desert shrubs and cactus. Sources of water are available from valley wells.
Regional Geology
The area consists mainly of Paleozoic sediments which have undergone intense folding accompanied by faulting. A series of Carboniferous sediments consist largely of siliceous limestones and include strata of pure crystalline limestone and dolomite with occasional intercalated beds of fine grained sandstone. These strata have a general west to southwest dip of from 15 to 45 degrees which is occasionally disturbed by local folds. Igneous rocks are scarce and are represented chiefly by quartz-monzonite porphyry dikes and sills. The quartz-monzonite porphyry is intruded into these strata and is of post-Jurassic age, perhaps Tertiary.
Property Geology
The Rio Lode Claim is indicated to be underlain by the Anchor Limestone Member of the Monte Cristo Limestone Formation and the overlying Bird Springs Formation.
Property Mineralization
There are no reports or information available on the mineralization on the Rio Lode Claim ground; however, prospect pits within the Rio Lode Claim indicate that mineral zones were explored.
Supplies
Supplies and manpower are readily available for exploration of the property.
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Other
Other than our interest in the property, we own no plans or other property.
Our Proposed Exploration Program
Working with a $21,000 budget, we plan on doing trenching work with a back-hoe to expose bedrock. Metal detecting, soil and rock chip sampling, and geological mapping will be done once the bedrock is exposed. The object of this work will be to determine if there is an economically recoverable gold resource on this property. All sample locations will be marked and mapped. The initial phase of work will provide enough information to allow the company to decide whether or not to proceed to the next phase of exploration.
It will take us two to three weeks to complete the trenching and collect the samples. Samples will be shipped to American Assay Labs of Reno Nevada, certified assayers. It will take another two to three weeks to obtain results from the lab. We will plot all sample locations on enlarged topographical maps and provide GPS with these locations.
Funds will be used exclusively for trenching, grid installation, metal detection, sample collecting, supplies, shipping, lab costs, meals, motels, truck fuel and labor.
We must conduct exploration to determine what amount of minerals, if any, exist on our properties and if any minerals which are found can be economically extracted and profitably processed.
The property is undeveloped raw land. Exploration and surveying has not been initiated and will not be completed until we raise additional money. That is because we do not have money to complete exploration.
Before minerals retrieval can begin, we must explore for and find mineralized material. After that has occurred we have to determine if it is economically feasible to remove the mineralized material. Economically feasible means that the costs associated with the removal of the mineralized material will not exceed the price at which we can sell the mineralized material. We can't predict what that will be until we find mineralized material.
We do not claim to have any minerals or reserves whatsoever at this time on any of the property.
The costs of our work program were provided by Professional Engineer and Geologist, Laurence Sookochoff. We have no relationship with Mr. Sookochoff. We will begin exploration activity in the spring of 2008.
We cannot provide you with a more detailed discussion of how our exploration program will work and what we expect will be our likelihood of success. That is because we have a piece of raw land and we intend to look for a gold ore body. We may or may not find an ore body. We have the right to prospect, explore, test, develop, work and mine the property. We hope we do, but it is impossible to predict the likelihood of such an event. In addition, the nature and direction of the exploration may change depending upon initial results.
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We do not have any plan to take our company to revenue generation. That is because we have not found economic mineralization yet and it is impossible to project revenue generation from nothing.
The following is an outline of the estimated costs of this first phase of exploration of this property:
Consulting Services | $ | 5,000 |
Trenching and Sampling | $ | 14,000 |
Analyzing Samples | $ | 2,000 |
Competitive Factors
The gold mining industry is fragmented, that is there are many, many gold prospectors and producers, small and large. We do not compete with anyone. That is because there is no competition for the exploration or removal of minerals from the property. We will either find gold on the property or not. If we do not, we will cease or suspend operations. We are one of the smallest exploration companies in existence. We are an infinitely small participant in the gold mining market. Readily available gold markets exist in the United States and around the world for the sale of gold. Therefore, we will be able to sell any gold that we are able to recover.
Rental Fee Requirement
The Federal government's Continuing Act of 2002 extends the requirement of rental or maintenance fees in place of assessment work for filing and holding mining claims with the BLM. All claimants must pay a yearly maintenance fee of $125 per claim for all or part of the mining claim assessment year. The fee must be paid at the State Office of the Bureau of Land Management by August 31, of each year. Rioridge Resources Corp. has paid this fee through 2008. The assessment year ends on noon of September 1 of each year. The initial maintenance fee is paid at the time the Notice of Location is filed with the BLM and covers the remainder of the assessment year in which the claim was located. There are no exemptions from the initial fee. Some claim holders may qualify for a Small Miner Exemption waiver of the maintenance fee for assessment years after the year in which the claim was located. We do not qualify for a Small Miner Exemption. The following sets forth the BLM fee schedule:
Fee Schedule (per claim) |
Location Fee | $ | 30.00 |
Maintenance Fee. | $ | 125.00 |
Service Charges | $ | 10.00 |
Transfer Fee | $ | 5.00 |
Proof of Labor | $ | 5.00 |
Notice of Intent to Hold | $ | 5.00 |
Transfer of Interest | $ | 5.00 |
Amendment | $ | 5.00 |
Petition for Deferment of Assessment Work | $ | 25.00 |
Notice of Intent to Locate on Stock Raising Homestead land | $ | 25.00 |
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The BLM regulations provide for three types of operations on public lands: 1. Casual Use level, 2. Notice level and 3. Plan of Operation level.
1. Casual Use means activities ordinarily resulting in no or negligible disturbance of the public lands or resources. Casual Use operations involve simple prospecting with hand tools such as picks, shovels, and metal detectors. Small-scale mining devices such as dry washers having engines with less than 10 brake-horsepower are allowed, provided they are fed using only hand tools. Casual Use level operations are not required to file an application to conduct activities or post a financial guarantee.
2. Notice level operations include only exploration activities in which five or less acres of disturbance are proposed. Presently, all Notice Level operations require a written notice and must be bonded for all activities other than reclamation.
3. Plans of Operation activities include all mining and processing (regardless of the size of the proposed disturbance), plus all other activities exceeding five acres of proposed public land disturbance.
Operators are encouraged to conduct a thorough inventory of the claim to determine the full extent of any existing disturbance and to meet with field office personnel at the site before developing an estimate. The inventory should include photographs taken "before" and "after" any mining activity.
If an operator constructs access or uses an existing access way for an operation and would object to BLM blocking, removing, or claiming that access, then the operator must post a financial guarantee that covers the reclamation of the access.
Concurrence by the BLM for occupancy is required whenever residential occupancy is proposed or when fences, gates, or signs will be used to restrict public access or when structures that could be used for shelter are placed on a claim. It is the claimant's responsibility to prepare a complete notice or plan of operators.
Mining Claims On State Land
The Nevada law authorizing location of claims on State Lands was repealed in 1998. Acquisition of mineral rights on Nevada trust land can only be accomplished by application for a prospecting permit, mineral lease, or lease of common variety materials.
We will secure all necessary permits for exploration and, if development is warranted on the property, will file final plans of operation before we start any mining operations. We anticipate no discharge of water into active stream, creek, river, lake or any other body of water regulated by environmental law or regulation. No endangered species will be disturbed. Restoration of the disturbed land will be completed according to law. All holes, pits and shafts will be sealed upon abandonment of the property. It is difficult to estimate the cost of compliance with the environmental law since the full nature and extent of our proposed activities cannot be determined until we start our operations and know what that will involve from an environmental standpoint.
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We are in compliance with all laws and will continue to comply with the laws in the future. We believe that compliance with the laws will not adversely affect our business operations.
We are responsible to provide a safe working environment, not disrupt archaeological sites, and conduct our activities to prevent unnecessary damage to the property.
We will secure all necessary permits for exploration and, if development is warranted on the property, will file final plans of operation before we start any mining operations. At this point, a permit from the BLM would be required. Also, we would be required to comply with the laws of the state of Nevada and federal regulations. We anticipate no discharge of water into active stream, creek, river, lake or any other body of water regulated by environmental law or regulation. No endangered species will be disturbed. Restoration of the disturbed land will be completed according to law. All holes, pits and shafts will be sealed upon abandonment of the property. It is difficult to estimate the cost of compliance with the environmental law since the full nature and extent of our proposed activities cannot be determined until we start our operations and know what that will involve from an environmental standpoint .
Exploration stage companies have no need to discuss environmental matters, except as they relate to exploration activities. The only "cost and effect" of compliance with environmental regulations in the State of Nevada is returning the surface to its previous condition upon abandonment of the property. We will only be using "non-intrusive" exploration techniques and will not leave any indication that a sample was taken from the area. Gold Property Services, Ltd. and the employees will be required to leave the area in the same condition as they found it - on a daily basis.
We have not allocated any funds for the cost of reclamation of the property. Mr. Balla, our president, has agreed to pay the cost of reclamation should we not find mineralized material.
Subcontractors
We intend to use the services of a consultant who will supervise the subcontractors for manual labor exploration work on our property. We have not selected the consultant as of the date of this prospectus and will not do so until we have completed this offering.
Employees and Employment Agreements
At present, we have no full-time employees. Our sole officer and director is a part-time employee devotes about 10% of his time or four hours per week to our operation. Our sole officer and director does not have an employment agreement with us. We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, we may adopt plans in the future. There are presently no personal benefits available to our officer and director. Our sole officer and director will handle our administrative duties. Because our sole officer and director is inexperienced with exploration, he will hire qualified persons to perform our exploration activities. As of today, we have not looked for or talked to any geologists or engineers who will perform work for us in the future. We do not intend to do so until we complete this offering.
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Property Interests and Mining Claims in General
Mining claims are subject to the same risk of defective title that is common to all real property interests. Additionally, mining claims are self-initiated and self-maintained and therefore, possess some unique vulnerabilities not associated with other types of property interests. It is impossible to ascertain the validity of unpatented mining claims solely from an examination of the public real estate records and, therefore, it can be difficult or impossible to confirm that all of the requisite steps have been followed for location and maintenance of a claim. If the validity of a patented mining claim is challenged by the BLM or the U.S. Forest Service on the grounds that mineralization has not been demonstrated, the claimant has the burden of proving the present economic feasibility of mining minerals located thereon. Such a challenge might be raised when a patent application is submitted or when the gove rnment seeks to include the land in an area to be dedicated to another use.
Reclamation
We generally are required to mitigate long-term environmental impacts by stabilizing, contouring, resloping and revegetating various portions of a site after mining and mineral processing operations are completed. These reclamation efforts will be conducted in accordance with detailed plans, which must be reviewed and approved by the appropriate regulatory agencies.
Government Regulation
Mining operations and exploration activities are subject to various national, state, and local laws and regulations in the United States, which govern prospecting, development, mining, production, exports, taxes, labor standards, occupational health, waste disposal, protection of the environment, mine safety, hazardous substances and other matters. We will obtain the licenses, permits or other authorizations currently required to conduct our exploration program. We believe that we are in compliance in all material respects with applicable mining, health, safety and environmental statutes and the regulations passed thereunder in the Nevada and United States.
The prospecting on the property is provided under the existing 1872 Mining Law and all permits for exploration and testing must be obtained through the local Bureau of Land Management (BLM) office of the Department of Interior. Obtaining permits for minimal disturbance as envisioned by this exploration program will require making the appropriate application and filing of the bond to cover the reclamation of the test areas. From time to time, an archeological clearance may need to be contracted to allow the testing program to proceed.
Environment Regulations
Our activities are subject to various federal and state laws and regulations governing protection of the environment. These laws are continually changing and, in general, are becoming more restrictive. We intend to conduct business in a way that safeguards public health and the environment. We will conduct our operational compliance with applicable laws and regulations.
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Changes to current state or federal laws and regulations in Nevada, where we intend to operate could in the future require additional capital expenditures and increased operating and/or reclamation costs. Although we are unable to predict what additional legislation, if any, might be proposed or enacted, additional regulatory requirements could impact the economics of our projects.
During 2007, there were no material environmental incidents or non-compliance with any applicable environmental regulations on the Rio Lode Claim
Our Office
Our office is located at 200 Centennial Avenue, Suite 200, Piscataway, New Jersey 08854. Our telephone number is 732-377-2000. We lease the office from Stratis Business Centers of Piscataway on a month to month basis. Our monthly rental is $119.
MANAGEMENT
Officers and Directors
Our sole director will serve until his successor is elected and qualified. Our sole officer 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, address, age and position of our present officers and directors are set forth below:
Name and Address | Age | Position(s) |
|
Venugopal Rao Balla | 47 | president, principal executive officer, secretary, |
312-2645 Kipling Avenue | | treasurer, principal financial officer, principal |
Toronto, Ontario | | accounting officer and sole member of the board of |
Canada M9V 3S6 | | directors. |
The person named above has held his offices/positions since inception of our company and is expected to hold his offices/positions until the next annual meeting of our stockholders.
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Background of officers and directors
Since our inception on November 13, 2007, Venugopal Rao Balla has been our president, principal executive officer, secretary, treasurer, principal financial officer, principal accounting officer and sole member of the board of directors. Since July 2007, Mr. Balla has been an accountant to CCT Global Sourcing Inc. in Toronto, Ontario, Canada. From August 2006 to May 2007, Mr. Balla was an accountant for the Forzani Group Ltd. (Fitness Source) in Toronto, Ontario, Canada. From August 2004 to July 2006. Mr. Balla served as Financial Controller for Steel & Allied Center Limited located in Nairobi, Kenya. From January 1999, to June 2004, Mr. Balla served as Financial Controller for Blue Nile (E.A.) Limited located in Nairobi, Kenya.
During the past five years, Mr. Balla has not been the subject of the following events:
1. Any bankruptcy petition filed by or against any business of which Mr. Balla was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.
2. Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.
3. An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Mr. Balla’s involvement in any type of business, securities or banking activities.
4. Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
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 have no operations, at the present time, we believe the services of a financial expert are not warranted.
Conflicts of Interest
The only conflict that we foresee are that our sole officer and director will devote time to projects that do not involve us.
EXECUTIVE COMPENSATION
The following table sets forth the compensation paid by us for the last three fiscal years ending December 31, 2007 for each or our officers. This information includes the dollar value of base salaries, bonus awards and number of stock options granted, and certain other compensation, if any. The compensation discussed addresses all compensation awarded to, earned by, or paid or named executive officers.
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EXECUTIVE OFFICER COMPENSATION TABLE
| | | | | | Non- | Nonqualified | | |
| | | | | | Equity | Deferred | All | |
Name | | | | | | Incentive | Compensa- | Other | |
and | | | | Stock | Option | Plan | tion | Compen- | |
Principal | | Salary | Bonus | Awards | Awards | Compensation | Earnings | sation | Total |
Position | Year | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) |
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) |
|
Venugopal Rao Balla | 2007 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
President | 2006 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2005 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
We have no employment agreements with any of our officers. We do not contemplate entering into any employment agreements until such time as we begin profitable operations.
The compensation discussed herein addresses all compensation awarded to, earned by, or paid to our named executive officers.
There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our officers and directors other than as described herein.
Compensation of Directors
The member of our board of directors is not compensated for his services as a director. The board has not implemented a plan to award options to any directors. There are no contractual arrangements with any member of the board of directors. We have no director's service contracts.
DIRECTOR’S COMPENSATION TABLE |
|
| Fees | | | | | | |
| Earned | | | | Nonqualified | | |
| or | | | Non-Equity | Deferred | | |
| Paid in | Stock | Option | Incentive Plan | Compensation | All Other | |
| Cash | Awards | Awards | Compensation | Earnings | Compensation | Total |
Name | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) | (US$) |
(a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) |
|
Venugopal Rao Balla | 2007 | 0 | 0 | 0 | 0 | 0 | 0 |
Long-Term Incentive Plan Awards
We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance.
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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 lawsuit, 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 officer 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.
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 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 their shares and possesses sole voting and dispositive power with respect to the shares.
| | | | | Number of Shares | Percentage of |
| | | | Percentage of | After Offering | Ownership After |
| | | Number of | Ownership | Assuming all of | the Offering |
Name and Address | Shares Before | Before the | the Shares are | Assuming all of the |
Beneficial Owner [1] | the Offering | Offering | Sold | Shares are Sold |
|
Venugopal Rao Balla | 5,000,000 | 54.95% | 5,000,000 | 54.95% |
312-2645 Kipling Avenue | | | | |
Toronto, Ontario | | | | |
Canada M9V 3S6 | | | | |
|
[ 1 | ] | The person named above may be deemed to be a "parent" and "promoter" of our company, |
| | within the meaning of such terms under the Securities Act of 1933, as amended, by virtue of |
| | his/its direct and indirect stock holdings. Mr. Balla is the only "promoter" of our company. |
Securities authorized for issuance under equity compensation plans.
We have no equity compensation plans.
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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.
| | | | 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 |
|
Adams, Clarine | 100,000 | 0.011% | 100,000 | 0% |
Adams, Yokeisha | 100,000 | 0.011% | 100,000 | 0% |
Adams, Vivian | 100,000 | 0.011% | 100,000 | 0% |
Ann Goode, Lesley | 100,000 | 0.011% | 100,000 | 0% |
Bennett, Kemoy | 100,000 | 0.011% | 100,000 | 0% |
Bennett, Keenann | 100,000 | 0.011% | 100,000 | 0% |
Blake, Dawnette | 100,000 | 0.011% | 100,000 | 0% |
Clarke, Leonard | 100,000 | 0.011% | 100,000 | 0% |
Cole, Denise | 100,000 | 0.011% | 100,000 | 0% |
Dacosta, Rodney | 100,000 | 0.011% | 100,000 | 0% |
Drummond, Dwight | 100,000 | 0.011% | 100,000 | 0% |
Fletcher, Cynthia Elaine | 100,000 | 0.011% | 100,000 | 0% |
Francis, Camille | 100,000 | 0.011% | 100,000 | 0% |
Francis, Ann | 100,000 | 0.011% | 100,000 | 0% |
Gordon, Roxy | 100,000 | 0.011% | 100,000 | 0% |
Gray, Nigel | 100,000 | 0.011% | 100,000 | 0% |
Hanson, Seymour | 100,000 | 0.011% | 100,000 | 0% |
Haughton, Delroy | 100,000 | 0.011% | 100,000 | 0% |
Henry, Kenroy | 100,000 | 0.011% | 100,000 | 0% |
Johnson, Decoda | 100,000 | 0.011% | 100,000 | 0% |
Johnson, Melinda | 100,000 | 0.011% | 100,000 | 0% |
Llewellyn, Zetilda | 100,000 | 0.011% | 100,000 | 0% |
Moncrieffe, Delroy | 100,000 | 0.011% | 100,000 | 0% |
Morgan, Ann Marie | 100,000 | 0.011% | 100,000 | 0% |
Morris, Ralston | 100,000 | 0.011% | 100,000 | 0% |
Nesbeth, Nadine | 100,000 | 0.011% | 100,000 | 0% |
Reeves, Patroy | 100,000 | 0.011% | 100,000 | 0% |
Reeves, Pamela | 100,000 | 0.011% | 100,000 | 0% |
Robinson, Desrick | 100,000 | 0.011% | 100,000 | 0% |
Rose, Ithamar | 100,000 | 0.011% | 100,000 | 0% |
Smart, Sonia | 100,000 | 0.011% | 100,000 | 0% |
Smith, Nickeisha | 100,000 | 0.011% | 100,000 | 0% |
Taylor, Yvonne | 100,000 | 0.011% | 100,000 | 0% |
Vassel, Jacques | 100,000 | 0.011% | 100,000 | 0% |
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Virgo, George | 100,000 | 0.011% | 100,000 | 0% |
Wilmot, Audley | 100,000 | 0.011% | 100,000 | 0% |
Wilson, Daniel | 100,000 | 0.011% | 100,000 | 0% |
Wright, Gladston | 100,000 | 0.011% | 100,000 | 0% |
Wright, Clive | 100,000 | 0.011% | 100,000 | 0% |
Wynter, Vilma | 100,000 | 0.011% | 100,000 | 0% |
Wynter, Aldane | 100,000 | 0.011% | 100,000 | 0% |
TOTAL | 4,100,000 | 45.05% | 4,100,000 | 0% |
Other than investing money with us, the foregoing selling security holders have had no material relationship with us during the last three years.
All of persons named as selling security holders exercise voting and/or dispositive powers with respect to the securities to be offered for resale by our selling security holders.
No selling shareholder is an affiliate of a registered broker dealer.
The following is a summary of the issuances of all shares pursuant to Reg. S of the Act.
a) | On November 16, 2007, we issued 5,000,000 shares of common stock to , our sole officer and director in consideration of $0.001 per share or a total of $5,000. We issued the foregoing restricted shares of common stock pursuant to the exemption from registration contained in Section 4(2) of the Securities Act of 1933. He is a sophisticated investor, is our sole officer and director, and is in possession of all material information relating to us. Further, no commissions were paid to anyone in connection with the sale of the shares and general solicitation was not made to anyone. |
|
b) | On December 17, 2007, we issued 4,100,000 shares of common stock to forty-one individuals in consideration of $0.01 per share or a total of $41,000. The 4,100,000 shares so issued are being registered in this offering. The foregoing 4, 100,000 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. |
|
Future Sales of Shares
A total of 9,100,000 shares of common stock are issued and outstanding. Of the 9,100,000 shares outstanding, all are restricted securities as defined in Rule 144 of the Securities Act of 1933. 4,100,000 are being offered for sale by the selling shareholders in this offering.
Shares purchased in this offering will be immediately resalable without any restriction of any kind.
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DESCRIPTION OF SECURITIES
Common Stock
Our authorized capital stock consists of 100,000,000 shares of common stock, par value $0.00001 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 that 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.
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. After this offering is completed, assuming the sale of all of the shares of common stock, present stockholders will own approximately 54.95% of our outstanding shares.
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.
Preferred Stock
We are authorized to issue 100,000,000 shares of preferred stock with a par value of $0.00001 per share. The terms of the preferred shares are at the discretion of the board of directors. Currently no preferred shares are issued and outstanding.
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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-K, 10-Q, 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, N.E., 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 will be Empire Stock Transfer, Inc., 7251 West Lake Mead Boulevard, Las Vegas, Nevada 89128 . Its telephone number is (702) 562-4037.
CERTAIN TRANSACTIONS
In November 2007, we issued a total of 5,000,000 shares of restricted common stock to Venugopal Rao Balla, our sole officer and director in consideration of $5,000.
Further, Mr. Balla has advanced funds to us for some of our incorporation needs. As of December 31, 2007, Mr. Balla advanced us $125. There is no due date for the repayment of the funds advanced by Mr. Balla. Mr. Balla will be repaid from revenues or operations if and when we generate revenues to pay the obligation. There is no assurance that we will ever generate revenues from our operations. The obligation to Mr. Balla does not bear interest. There is no written agreement evidencing the advancement of funds by Mr. Balla or the repayment of the funds to Mr. Balla. The entire transaction was oral.
LITIGATION
We are not a party to any pending litigation and none is contemplated or threatened.
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EXPERTS
Our financial statements for the period from inception to December 31, 2007, included in this prospectus have been audited by Michael T. Studer, CPA, P.C., 18 East Sunrise Highway, Suite 311, Freeport, New York 11520, telephone number (516) 378-1000, as set forth in its report included in this prospectus. Its report is given upon its authority as experts in accounting and auditing.
LEGAL MATTERS
The Law Office of Conrad C. Lysiak, P.S., 601 West First Avenue, Suite 903, Spokane, Washington 99201, telephone (509) 624-1475 has acted as our legal counsel.
FINANCIAL STATEMENTS
Our fiscal year end is December 31. We will provide audited financial statements to our stockholders on an annual basis; the statements will be audited by a firm registered with the Public Company Accounting Oversight Board.
Our financial statements from inception to December 31, 2007 (audited), immediately follow:
INDEPENDENT AUDITOR'S REPORT | F-1 |
FINANCIAL STATEMENTS | |
Balance Sheet | F-2 |
Statement of Operations | F-3 |
Statement of Stockholders' Deficiency | F-4 |
Statement of Cash Flows | F-5 |
NOTES TO THE FINANCIAL STATEMENTS | F-6 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Rioridge Resources Corp.
I have audited the accompanying balance sheet of Rioridge Resources Corp. (the Company), an exploration stage company, as of December 31, 2007 and the related statements of operations, stockholders’ equity and cash flows for the period November 13, 2007 (inception) to December 31, 2007. These financial statements are the responsibility of the Company’s management. My responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I 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. I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Rioridge Resources Corp., an exploration stage company, as of December 31, 2007 and the results of its operations and its cash flows for the period November 13, 2007 (inception) to December 31, 2007 in conformity with accounting principles generally accepted in the United States.
The accompanying financial statements referred to above have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company’s present financial situation raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to this matter are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
| MICHAEL T. STUDER CPA P.C. |
| Michael T. Studer CPA P.C. |
Freeport, New York
March 10, 2007
F-1
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Rioridge Resources Corp. | | | |
(An Exploration Stage Company) | | | |
Balance Sheet | | | |
(Expressed in US Dollars) | | | |
|
| | December 31, | |
| | 2007 | |
|
ASSETS | | | |
Current Assets | | | |
Cash and cash equivalents | $ | 20,596 | |
Prepaid expenses | | 237 | |
Total Assets | $ | 20,833 | |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) | | | |
Current Liabilities | | | |
Due to related parties | $ | 125 | |
Total current liabilities | | 125 | |
|
|
Stockholders' Equity | | | |
Preferred Stock, $0.00001 par value; | | | |
|
authorized 100,000,000 shares, none issued and outstanding | | - | |
|
Common Stock, $0.00001 par value; | | | |
authorized 100,000,000 shares, | | | |
issued (or in process of issuance) and outstanding 9,100,000 shares | | 91 | |
Additional paid-in capital | | 47,409 | |
Deficit accumulated during the exploration stage | | (26,792 | ) |
Total stockholders' equity | | 20,708 | |
Total Liabilities and Stockholders' Equity | $ | 20,833 | |
See notes to financial statements.
F-2
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Rioridge Resources Corp. | | | |
(An Exploration Stage Company) | | | |
Statement of Operations | | | |
(Expressed in US Dollars) | | | |
|
|
| | Period from | |
| | November 13, 2007 | |
| | (Date of Inception) To | |
| | December 31, 2007 | |
|
|
|
Revenue | $ | - | |
|
Costs and expenses | | | |
Donated services | | 1,500 | |
General and administrative | | 1,292 | |
Impairment of mineral property cost | | 6,500 | |
Mineral property exploration and carrying costs | | 2,500 | |
Professional fees | | 15,000 | |
Total costs and expenses | | 26,792 | |
Net Loss | $ | (26,792 | ) |
|
Net loss per share | | | |
Basic and diluted | $ | (0.00 | ) |
|
|
Weighted Average Shares Outstanding | | | |
Basic and Diluted | | 5,883,000 | |
See notes to financial statements.
F-3
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Rioridge Resources Corp. | | | | | | | | | | |
(An Exploration Stage Company) | | | | | | | | | | |
Statement of Stockholders' Equity | | | | | | | | | | |
For the Period November 13, 2007 (Inception) to December 31, 2007 | | | | | | | |
(Expressed in US Dollars) | | | | | | | | | | |
|
| | | | | | | Deficit | | | |
| | | | | | | Accumulated | | | |
| Common Stock, | | Additional | | During the | | | |
| $0.00001 par value | | paid-in | | Exploration | | | |
| Shares | | Amount | | capital | | Stage | | Total | |
|
Common shares sold for cash at $0.001 per share | 5,000,000 | $ | 50 | $ | 4,950 | $ | - | $ | 5,000 | |
Common shares sold for cash at $0.01 per share | 4,100,000 | | 41 | | 40,959 | | - | | 41,000 | |
Donated services and expenses | - | | - | | 1,500 | | - | | 1,500 | |
Net Loss | - | | - | | - | | (26,792 | ) | (26,792 | ) |
Balance - December 31, 2007 | 9,100,000 | $ | 91 | $ | 47,409 | $ | (26,792 | ) $ | 20,708 | |
See notes to financial statements.
F-4
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Rioridge Resources Corp. | | | |
(An Exploration Stage Company) | | | |
Statement of Cash Flows | | | |
(Expressed in US Dollars) | | | |
|
|
| | Period from | |
| | November 13, 2007 | |
| | (Date of Inception) To | |
| | December 31, 2007 | |
|
Cash Flows from Operating Activities | | | |
Net loss | $ | (26,792 | ) |
Adjustments to reconcile net loss | | | |
to net cash provided by (used for) operating activities | | | |
Donated services and expenses | | 1,500 | |
Impairment of mineral property cost | | 6,500 | |
Change in operating assets and liabilities: | | | |
Prepaid expenses | | (237 | ) |
Due to related parties | | 125 | |
Net cash provided by (used for) operating activities | | (18,904 | ) |
|
Cash Flows from Investing Activities | | | |
Mineral property acquisition costs | | (6,500 | ) |
Net cash provided by (used for) investing activities | | (6,500 | ) |
|
Cash Flows from Financing Activities | | | |
Proceeds from sales of common stock | | 46,000 | |
Net cash provided by financing activities | | 46,000 | |
|
|
Increase in cash | | 20,596 | |
|
Cash - beginning of period | | - | |
|
Cash - end of period | $ | 20,596 | |
|
|
Supplemental disclosures of cash flow information: | | | |
Interest paid | $ | - | |
Income taxes paid | $ | - | |
See notes to financial statements.
F-5
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Rioridge Resources Corp.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 1. Exploration Stage Company
Rioridge Resources Corp. (the “Company”) was incorporated in the State of Nevada on November 13, 2007. The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (“SFAS”) No.7 “Accounting and Reporting by 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 December 31, 2007, the Company has accumulated losses of $26,792 since inception. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These f inancial 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.
Note 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 December 31, 2007. |
| |
| b) | Use of Estimates |
| |
| | The preparation of financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses in the reporting period. The Company regularly evaluates estimates and assumptions related to deferred income tax asset valuations and loss contingencies. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company& #146;s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
| |
F-6
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Rioridge Resources Corp.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
| c) | Basic and Diluted Net Earnings (Loss) Per Share |
| |
| | The Company computes net earnings (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. As at December 31, 2007, there were no dilutive potential common shares. |
| |
| 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 December 31, 2007, 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 inception on November 13, 2007 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. |
| |
F-7
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Rioridge Resources Corp.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
| g) | Financial Instruments |
| |
| | The fair values of financial instruments, which include cash, accounts payable and accrued liabilities and due to related parties, 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. |
| |
| h) | 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. |
| |
| i) | 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. |
| |
| j) | Recent Accounting Pronouncements |
| |
| | In December 2007, the Financial Accounting Standards Board (FASB) issued SFAS No. 141R,“Business Combinations”.This statement replaces SFAS 141 and defines the acquirer in a business combination as the entity that obtains control of one or more businesses in a business combination and establishes the acquisition date as the date that the acquirer achieves control. SFAS 141R requires an acquirer to recognize the assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date. SFAS 141R also requires the acquirer to recognize contingent consideration at the acquisition date, measured at its fair value at that date. This statement is effective for fiscal y ears, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. The adoption of this statement is not expected to have a material effect on the Company's financial statements. |
| |
F-8
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Rioridge Resources Corp.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements Liabilities –an Amendment of ARB No. 51”. This statement amends ARB 51 to establish accounting and reporting standards for the Noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This statement is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier adoption is prohibited. The adoption of this statement is not expected to have a material effect on the Company's Company's financial statements.
In February 2007, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 159,“The Fair Value Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 115”.This statement permits entities to choose to measure many financial instruments and certain other items at fair value. Most of the provisions of SFAS No. 159 apply only to entities that elect the fair value option. However, the amendment to SFAS No. 115“Accounting for Certain Investments in Debt and Equity Securities”applies to all entities with available-for-sale and trading securities. SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007. Early adoption is permitted as of the beginning of a fiscal year that begins on or before November 15, 2007, provided the entity also elects to apply the provision of SFAS No. 157,“Fair Value Measurements”. The adoption of this statement is not expected to have a material effect on the Company's financial statements.
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 ex pected to have a material effect on the Company's future reported financial position or results of operations.
Note 3. Related Party Balances/Transactions
| a) | The Company receives services from its president at no cost to the Company. For accounting purposes, the estimated fair vale of these donated services ($750 per month for the services) is included in general and administrative expenses and additional paid-in capital is increased by the same amounts. For the period ended December 31, 2007, the Company expensed $1,500 in donated services. |
| |
| b) | As at December 31, 2007, the Company is indebted to the President of the Company for $125, representing expenses paid on behalf of the Company. This amount is unsecured, non-interest bearing and has no repayment terms. |
| |
| c) | On November 16, 2007, the Company issued 5,000,000 shares of common stock at $0.001 per share to the President of the Company for cash proceeds of $5,000. |
| |
F-9
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Rioridge Resources Corp.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 4. Mineral Property
On December 14, 2007, the Company acquired a 100% interest in a Mineral Claim located in Clark County, Nevada, in consideration for $6,500. The claims are registered in the name of the President of the Company, who has executed a trust agreement whereby the President agreed to hold the claims 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 President. The cost of the mineral property was initially capitalized. At December 31, 2007, the Company recognized an impairment loss of $6,500, as it has not yet been determined whether there are proven or probable reserves on the property.
Note 5. Common Stock
| a) | On November 16, 2007, the Company issued 5,000,000 shares of common stock at $0.001 per share to the Director of the Company for cash proceeds of $5,000. |
| |
| b) | On December 17, 2007, the Company issued 4,100,000 shares of common stock at $0.01 per share for cash proceeds of $41,000. |
| |
Note 6. Commitments
| a) | The Company entered into an agreement dated December 14, 2007 to pay legal fees of up to $25,000 with respect to its incorporation and the preparation and filing of a Registration Statement. |
| |
| | The Company was to pay $15,000 upon commencement of services (which was paid in 2007) and is obligated to pay an additional $10,000 once the Registration Statement has been declared effective by the Securities and Exchange Commission. |
| |
| b) | On November 8, 2007, the Company entered into an office service agreement with a company to provide office services to the Company for a one year term, renewable monthly. Under the agreement, the Company is obligated to pay $119 per month commencing November 9, 2007 and ending October 31, 2008. The Company incurred rent expense of $206 during the period ended December 31, 2007. |
| |
F-10
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Rioridge Resources Corp.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 2007
Note 7. Income Taxes
Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. At December 31, 2007, the Company has a net operating loss carryforward of approximately $25,292, which expires in 2027. 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.
The components of the net deferred tax asset at December 31, 2007 consists of:
| | December 31, | |
| | 2007 | |
Net operating loss carryforward | $ | 8,599 | |
Valuation allowance | | (8,599 | ) |
Net deferred income tax asset | $ | – | |
A reconciliation of the expected income tax expense (benefit) computed by applying the statutory income tax rate to income (loss) before income taxes to the provision for (benefit from) income taxes follows:
| | December 31, | |
| | 2007 | |
Income tax recovery at statutory rate | $ | 9,109 | |
Nondeductible donated services | | (510 | ) |
Valuation allowance change | | (8,599 | ) |
Provision for income taxes | $ | – | |
Current United States income tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited.
F-11
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PART II. INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The estimated expenses of the offering (assuming all shares are sold), all of which are to be paid by the registrant, are as follows:
SEC Registration Fee | $ | 1.61 |
Printing Expenses | | 200.00 |
Accounting Fees and Expenses | | 4,098.39 |
Legal Fees and Expenses | | 25,000.00 |
Blue Sky Fees/Expenses | | 500.00 |
Transfer Agent Fees | | 200.00 |
TOTAL | $ | 30,000.00 |
ITEM 14. 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 3 of the Articles of Incorporation of the company, filed as Exhibit 3.1 to the Registration Statement. |
2. | Article X of the Bylaws of the company, filed as Exhibit 3.2 to the 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 15. RECENT SALES OF UNREGISTERED SECURITIES.
Since inception, the Registrant has sold the following securities that were not registered under the Securities Act of 1933, as follows:
a) | On November 16, 2007, we issued 5,000,000 shares of common stock to , our sole officer and director in consideration of $0.001 per share or a total of $5,000. We issued the foregoing restricted shares of common stock pursuant to the exemption from registration contained in Section 4(2) of the Securities Act of 1933. He is a sophisticated investor, is our sole officer and director, and is in possession of all material information relating to us. Further, no commissions were paid to anyone in connection with the sale of the shares and general solicitation was not made to anyone. |
|
II-1
b) | On December 17, 2007, we issued 4,100,000 shares of common stock to forty-one individuals in consideration of $0.01 per share or a total of $41,000. The 4,100,000 shares so issued are being registered in this offering. The foregoing 4, 100,000 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. |
|
ITEM 16. EXHIBITS.
The following exhibits are filed as part of this registration statement, pursuant to Item 601 of Regulation S-K.
Exhibit No. | | Document Description |
3.1* | | Articles of Incorporation. |
3.2* | | Bylaws. |
4.1* | | Specimen Stock Certificate. |
5.1 | | Opinion of The Law Office of Conrad C. Lysiak, P.S. regarding the legality of the |
| | Securities being registered. |
10.1* | | Lease Agreement |
23.1* | | Consent of Michael T Studer, CPA, PC |
23.2 | | Consent of The Law Office of Conrad C. Lysiak, P.S. |
99.1* | | Subscription Agreement. |
|
* Previously filed. |
II-2
ITEM 17. UNDERTAKINGS.
A. | The undersigned Registrant hereby undertakes: |
|
| (1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement to: |
|
| | (a) | include any prospectus required by Section 10(a)(3) of the Securities Act; |
|
| | (b) | reflect in the prospectus any facts or events arising after the effective date of this Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement. Notwithstanding the foregoing, any increase or decrease in the 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) under the Securities Act if, in the aggregate, the changes in volume and price represent no more than a 20% change in maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
|
| | (c) | include any additional or changed material information with respect to 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 herein, and the offering of such securities at that time shall be deemed 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) | To provide to the underwriters at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser. |
|
| (5) | For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of a registration statement in reliance upon Rule 430A and contained in the form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of the registration statement as of the time it was declared effective. |
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(6) | For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
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(7) | For the purpose of determining liability under the Securities Act to any purchaser: |
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| Each prospectus filed pursuant to Rule 424(b) under the Securities Act 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 (§§230.430A of this chapter), 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 s tatement 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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(8) | For the purpose of determining liability of the registrant under the Securities Act to any purchaser in the initial distribution of securities: |
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| The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser: |
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| (a) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424 of this chapter; |
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| (b) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
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| (c) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
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| (d) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
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B. | Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the small business issuer pursuant to the foregoing provisions, or otherwise, the small business issuer has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against 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 small business issuer of expenses incurred or paid by a director, officer or controlling person of the small business issuer 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, the small business issuer will, unless in the opinion of its counsel the matter has been settled by controlling prec edent, 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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C. | To provide to the underwriter at the closing specified in the Underwriting Agreement certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser. |
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D. | The undersigned Registrant hereby undertakes that: |
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| (1) | For purposes of determining any liability under the Securities Act of 1933, 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 the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective. |
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| (2) | For the purpose of determining any liability under the Securities Act of 1933, each post- effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initialbona fideoffering thereof. |
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this amended registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Toronto, Ontario, Canada on this 2nd day of April, 2008.
| RIORIDGE RESOURCES CORP. |
| |
| BY: | VENUGOPAL RAO BALLA |
| | Venugopal Rao Balla, President, Principal Executive |
| | Officer, Secretary, Treasurer, Principal Financial |
| | Officer, Principal Accounting Officer and sole |
| | member of the Board of Directors. |
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EXHIBIT INDEX
Exhibit No. | | Document Description |
3.1* | | Articles of Incorporation. |
3.2* | | Bylaws. |
4.1* | | Specimen Stock Certificate. |
5.1 | | Opinion of The Law Office of Conrad C. Lysiak, P.S. regarding the legality of the |
| | Securities being registered. |
10.1* | | Lease Agreement |
23.1* | | Consent of Michael T Studer, CPA, PC |
23.2 | | Consent of The Law Office of Conrad C. Lysiak, P.S. |
99.1* | | Subscription Agreement. |
|
* Previously filed |
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