FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED APRIL 30, 2002.
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM _______ TO _______
Commission file number: 0-9060
ROCKY MOUNTAIN MINERALS, INC.
(Exact name of Registrant as specified in its Charter)
Wyoming 83-0221102
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) Number)
2480 North Tolemac Way, Prescott, AZ 86305
(Address of principal executive offices and Zip Code)
(928) 778-1450
(Registrant's telephone number)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the Registrant was required to file such reports)
and (2) has been subject to such filing requirements for the past
90 days: Yes / X / No / /
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
Class Outstanding at April 30, 2002
Common stock, $.001 par value 85,712,039 shares
ROCKY MOUNTAIN MINERALS, INC.
INDEX TO FORM 10-Q
PAGE
PART 1. FINANCIAL INFORMATION:
Item 1. Financial Statements
Balance Sheets, October 31, 2001 and
April 30, 2002 . . . . . . . . 1 - 2
Statements of Operations for the
Six Months and Three Months
ended April 30, 2002 and 2001 . . . . . 3
Statements of Cash Flows Six Months
Ended April 30, 2002 and 2001 . . . . . 4
Notes to Financial Statements . . . . . 5
Item 2. Management's Discussion and Analysis
of Financial Condition and
Results of Operations . . . . . 6 - 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . 8
Signatures . . . . . 8
PART I. FINANCIAL INFORMATION
ITEM 1. ROCKY MOUNTAIN MINERALS, INC.
(A Development Stage Company)
BALANCE SHEET
(Unaudited)
ASSETS
(Amounts in thousand, except per share data)
October 31, April 30,
2001 2002
(Audited) (Unaudited)
<s> <c> <c>
ASSETS
Current Assets:
Cash $ 139 $ 72
Assets held for sale 500 500
Deposits 8 4
________ _______
Total current assets 647 576
________ _______
TOTAL ASSETS $ 647 $ 576
See accompanying notes.
(1)
ROCKY MOUNTAIN MINERALS, INC.
(A Development Stage Company)
BALANCE SHEET
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
(Amounts in thousands, except per share data)
October 31, April 30,
2001 2002
(Audited) (Unaudited)
<s> <c> <c>
Total liabilities
Accounts payable $ 9 $ -
Stockholders' equity:
Preferred Stock; $.05 par value,
$.015 cumulative dividends,
convertible; 44,000,000 shares
authorized, 24,908,450 shares
issued and outstanding 1,245 1,245
Common Stock; $.001 par value,
250,000,000 shares authorized
85,712,039 shares issued and
outstanding 86 86
Capital in excess of par value 4,373 4,373
Deficit accumulated during the
development stage (5,066) (5,128)
__________ _________
Total stockholder's equity 647 576
__________ _________
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 647 $ 576
See accompanying notes.
(2)
ROCKY MOUNTAIN MINERALS, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
(Unaudited)
For the Six Months For the Three Months
Ended April 30, Ended April 30,
2001 2002 2001 2002
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Revenues:
Interest $ 5 - $ 2 -
_______ _______ _______ ______
5 - 2 -
Costs and expenses:
General and
administrative 26 62 21 25
_______ _______ _______ ______
Net loss (Note 2) $ (21) (62) (19) (25)
Loss per share
(Note 3): $ * $ * $ * $ *
======= ======= ======= =======
*Less than $0.01 per share.
See accompanying notes.
(3)
ROCKY MOUNTAIN MINERALS, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(Unaudited)
ASSETS
For the Six Months Ended April 30,
2001 2002
<s> <c> <c>
Cash flows from operating activities:
Net loss $ (21) $ (62)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation, depletion
and amortization - -
Changes in assets and liabilities:
Decrease in prepaid expenses
and deposits - 4
Decrease in accounts payable - (9)
______ ______
Net cash used in operating
activities (21) (67)
______ ______
Cash flows from investing activities:
Acquisition of property and
equipment - -
______ ______
Net cash from investing activities - -
______ ______
Cash flows from financing activities:
Proceeds from payment on long
term debt - -
______ ______
Net cash from financing activities - -
______ ______
Decrease in cash (21) (67)
Cash at beginning of period 229 139
______ ______
Cash at end of period $ 208 $ 72
====== ======
See accompanying notes.
(4)
ROCKY MOUNTAIN MINERALS, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1) The accompanying financial statements of the Company have been
prepared in accordance with accounting principles generally accepted
in the United States of America for interim financial information and
with the instructions to Form10-Q. Certain notes and other information
have been condensed or omitted from the interim financial statements
presented in this report. Accordingly, they do not include all of the
information and footnotes required by accounting principles generally
accepted in the United States of America for complete financial
statements. In the opinion of management, the financial statements
reflect all adjustments considered necessary for a fair presentation.
The results of operations for the six months ended April 30, 2002 and
April 30, 2001 are not necessarily indicative of the results to be
expected for the full year. For further information, refer to the
financial statements and footnotes thereto included in the Company's
annual report on Form 10-K for the year ended October 31, 2001 as
filed with the Securities and Exchange Commission.
2) No provision for income taxes is required for the period ended
April 30, 2002 or 2001, because (a) in management's opinion, the current
year will result in a net operating loss, (b) there are no previous
earnings to which the current year's estimated loss may be carried back,
and (c) there are no recorded income tax deferrals to be eliminated.
3) Loss per share is based on the weighted average number of shares
of common stock outstanding during the six months ended April 30, 2002
and 2001, 85,712,000 shares.
(5)
ROCKY MOUNTAIN MINERALS, INC.
(A Development Stage Company)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The Registrant began operations on May 19, 1978 and is considered
to be a mining company in the exploratory stage and has had no significant
revenues. In 1984 the Company ceased gold extraction operations at its
Rochester, Montana mining property. During 1988, with the receipt of
funding from a stock purchase agreement, it resumed mineral exploration
both at Rochester and elsewhere in North America and Australia. Despite
detailed geologic investigations by the Company and by leading gold
exploration companies, there was insufficient encouragement from results
to warrant further investigations at Rochester. The Registrant later
became involved in waste management activities. Subsequent to October
31, 1991, and following the sale of the waste management interests, the
registrant has had limited receipts and expenditures.
General and administrative expenses increased for the six months
ending April 30, 2002 as compared to the six months ended April 30, 2001
primarily due to the Registrant's higher level of activity in evaluating
various business opportunities during 2002.
In January of 1984, the Registrant suspended milling operations
at its Rochester property. During 1990, the Registrant recorded a charge
to expense of $1,037,669 representing the excess of net book value over
the estimated recoverable value of the Rochester Mill (the Mill).
In December of 1990, the Registrant decided to sell certain assets at
the Mill, and the net assets were reclassified to net assets held for
sale and stated at their net realizable value. In 1991 and 1993, pursuant
to property appraisals, the Registrant recorded additional charges to
expense totaling $200,000, representing excess net book value over the
estimated recoverable value of the Mill. In 1997, a tax deed was issued
by the Madison County, Montana Treasurer for the Mill and related property,
and the Registrant wrote off the property and recorded a loss of
approximately $27,000.
The Registrant intends to resume oil and gas exploration and
production activities. In particular, the Company plans to seek out
oil and gas exploration and production properties in the Rocky Mountain
region of the U.S. and also in Australia. To advance these plans,
the Company will establish a representative office in Melbourne, Australia
and Denver, Colorado.
(6)
Liquidity and Capital Resources
Since ceasing milling operations at its Rochester, Montana
property in 1984, the Registrant has evaluated this and other mineral
properties, as well as having pursued waste management activities.
The waste management assets have been sold and the Registrant has
now placed its Rochester property on the market for sale and anticipates
receiving between $500,000 to $1,000,000 for the property.
Management plans to use the funds from the sale of the Rochester
property to fund the Company's evaluation of oil and gas exploration
and production opportunities. Plans for additional funding of these
activities include attempting to obtain external funding, either
through the sale of the Company's common or preferred stock.
Forward Looking Information
Statements of the Company's or management's intentions, beliefs,
anticipations, expectations and similar expressions concerning future
events contained in this document constitute forward looking statements
as defined in the Private Securities Litigation Reform Act of 1995.
As with any future event, there can be no assurance that the events
described in the forward looking statements made in this report will
occur or that the results of future events will not vary materially
from those described in the forward looking statements in this document.
(7)
PART II. OTHER INFORMATION
ROCKY MOUNTAIN MINERALS, INC.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits. None.
(b) Reports on Form 8-K.
Form 8-K filed on 10 April 2002.
SIGNATURES
Pursuant to the Requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
ROCKY MOUNTAIN MINERALS, INC.
(Registrant)
Date: May 30, 2002 By: /s/ W. Ray Hill
W. Ray Hill
Principal Financial Officer
Date: May 30, 2002 By: /s/ W. Ray Hill
W. Ray Hill
Principal Executive Officer
(8)