UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDED FORM 10-QSB
(X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITES EXCHANGE
ACT OF 1934
For the quarterly period ended October 31, 2000
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File number 0-31501
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QUINCY RESOURCES INC.
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(Exact name of registrant as specified in charter)
Nevada 98-0218264
- ------------------------------------ -------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1327 Laburnum Street
Vancouver, BC, Canada V6J 2W4
- -------------------------------------------- ------------------
(Address of principal executive offices) (Zip Code)
250-736-7481
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Registrant's telephone number, including area code
(Former name, address, and fiscal year, if changed since last report)
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), Yes [X] ___ No [ ] and ( ) has
been subject to filing requirements for the past 90 days. ___ Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
Class Outstanding as of October 31, 2000
- ----------------------------------- -----------------------------------
Common Stock, $0.001 per share 10,026,500
ANDERSEN ANDERSEN & STRONG, L.C. 941 East 3300 South, Suite202
- -------------------------------- Salt Lake City, Utah 84106
Certified Public Accountants and Business Consultants
Telephone 801-486-0096
Fax 801-486-0098
REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
Quincy Resources Inc.
We have reviewed the condensed balance sheet of the above Company (development
stage company) as of October 31, 2000 and the related statements of operations
and the statements of cash flows for the six months ended October 31, 2000 and
1999 and the period May 5, 1999 (date of inception) to October 31, 2000. These
financial statements are the responsibility of the company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.
/ s/ "Andersen Andersen and Strong"
Salt Lake City, Utah
December 18, 2000
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INDEX
Page
Number
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PART 1.
ITEM 1. Financial Statements.................................................. 4
Balance Sheet as at October 31, 2000 and April 30, 2000............... 5
Statement of Operations
For the three months ended October 31, 2000 and 1999 for the six
months ended October 31, 2000 and 1999 and for the period
from May 5, 1999 (Date of Inception) to October 31, 2000....... 6
Statement of Cash Flows
For the six months ended October 31, 2000 and 1999 and for the
period from May 5, 1999 (Date of Inception) to October 31, 2000..... 7
Notes to the Financial Statements..................................... 8
ITEM 2. Plan of Operations.................................................... 11
PART 11.
Signatures............................................................ 12
3
PART 1 - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheet of Quincy Resources Inc. (an exploration stage
company) at October 31, 2000 and April 30, 2000 and the statement of operations
and statement of cash flow for the six months ended October 31, 2000 and 1999,
for the six months ended October 31, 2000 and 1999 and for the period from May
5, 1999 (date of inception) to October 31, 2000 have been prepared by the
Company's management and they do not include all information and notes to the
financial statements necessary for a complete presentation of the financial
position, results of operations, cash flows, and stockholders' equity in
conformity with generally accepted accounting principles. In the opinion of
management, all adjustments considered necessary for a fair presentation of the
results of operations and financial position have been included and all such
adjustments are of a normal recurring nature.
Operating results for the quarter ended October 31, 2000, are not necessarily
indicative of the results that can be expected for the year ending April 30,
2001.
4
QUINCY RESOURCES INC.
(Exploration Stage Company)
BALANCE SHEET
October 31 and April 30, 2000
October 31,
2000 April 30, 2000
---- --------------
ASSETS
CURRENT ASSETS
Cash $ 9 $ 567
----- -----
Total Current Assets
9 567
MINERAL LEASE - Note 3
-- --
----- -----
$ 9 $ 567
===== =====
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable - related party 100 100
Accounts payable 1,700 1,075
----- -----
Total Current Liabilities 1,800 1,175
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value; 10,026,500 shares issued and
outstanding 10,027 10,027
Capital in excess of par value 18,823 13,423
Deficit accumulated during the exploration
Stage (30,641) (24,058)
------- -------
Total Stockholders' Deficiency (1,791) (608)
-------- --------
$ 9 $ 567
======= ======
The accompanying notes are an integral part of these financial statements
5
QUINCY RESOURCES INC.
(Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three months ended October 31, 2000 and 1999,
for the six months ended October 31, 2000 and 1999 and for the
period May 5, 1999 (Date of Inception) to October 31,2000
Three Three Six Six
Months Months Months Months
Ended Ended Ended Ended Inception to
October October October October October 31,
31, 2000 31,1999 31, 2000 31, 1999 2000
-------- ------- -------- -------- ----
SALES $ -- $ -- $ -- $ -- $ --
-------- -------- -------- ---------- ------------
GENERAL AND ADMINISTRATIVE
EXPENSES:
Accounting 950 -- 625 -- 3,950
Bank charges 18 22 59 44 168
Consulting -- -- -- -- 1,000
Geology report -- -- -- 863 1,950
Incorporation costs -- -- -- 670 670
Management fees 1,500 1,500 3,000 3,000 9,000
Office 116 -- 284 -- 727
Rent 900 900 1,800 1,800 5,400
Staking fees -- -- -- 1,105 1,105
Telephone 300 300 600 600 1,800
Transfer agent -- -- 215 -- 2,558
Travel -- -- -- -- 2,313
----------- ---------- ----------- ---------- -------
NET LOSS $ 3,784 $ 2,722 $ 6,583 $ 8,082 $30,641
=========== ========== =========== ========== =======
NET LOSS PER COMMON SHARE
Basic $ -- $ -- $ -- $ --
========== =========== ========== ==========
AVERAGE OUTSTANDING SHARES
Basic 10,026,500 8,751,016 10,026,500 4,472,742
========== =========== ========== ==========
The accompanying notes are an integral part of these financial statements
6
QUINCY RESOURCES INC.
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the six months ended October 31, 2000 and 1999 and for the period
from May 5, 1999 (Date of Inception) to October 31, 2000
Six months Six months
Ended ended Inception to
October 31, 2000 October 31, 1999 October 31, 2000
---------------- ---------------- ----------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $ (6,583) $ (8,082) $ (30,641)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Capital contribution - expenses 5,400 5,400 16,200
Increase in accounts payable 625 -- 1,700
Increase in due to a director -- 100 100
--------- -------- --------
Net cash from operations (558) (2,582) (12,641)
--------- -------- --------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Proceeds from issuance of common
Stock -- 12,650 12,650
--------- -------- ---------
-- 12,650 12,650
--------- -------- ---------
Net Increase in Cash (558) 10,068 9
Cash at Beginning of Period 567 -- --
--------- -------- --------
CASH AT END OF PERIOD $ 9 $ 10,068 $ 9
=========== ========== ===========
The accompanying notes are an integral part of these financial statements
7
QUINCY RESOURCES, INC.
(EXPLORATION STAGE COMPANY)
NOTES TO FINANCLAL STATEMENTS
OCTOBER 31, 2000
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on May
5, 1999 with authorized common stock of 200,000,000 shares with $0.001 par
value.
The Company was organized for the purpose of acquiring and developing
mineral properties. At the report date mineral claims, with unknown
reserves, had been acquired. The Company has not established the existence
of a commercially minable ore deposit and therefore has not reached the
development stage and is considered to be in the exploration stage.
Since inception the Company has completed Regulation D offerings of
10,026,500 shares of its capital stock for cash.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICILES
Accounting Methods
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The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
---------------
The Company has not yet adopted a policy regarding payment of dividends.
Income Taxes
------------
On October 31, 2000, the Company had a net operating loss carry forward of
$30,641. The tax benefit from the loss carry forward has been fully offset
by a valuation reserve because the use of the future tax benefit is
doubtful since the Company has no operations. The net operating loss
expires in 2021.
Basic and Diluted Net Income (Loss) Per Share
---------------------------------------------
Basic net income (loss) per share amounts are computed based on the
weighted average number of shares actually outstanding. Diluted net income
(loss) per share amounts are computed using the weighted average number of
common shares and common equivalent shares outstanding as if shares had
been issued on the exercise of the preferred share rights unless the
exercise becomes antidilutive and then only the basic per share amounts are
shown in the report.
8
QUINCY RESOURCES, INC.
(EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Capitalization of Mining Claim Costs
- ------------------------------------
Costs of acquisition, exploration, carrying, and retaining unproven properties
are expensed as incurred. Cost incurred in proving and developing a property
ready for production are capitalized and amortized over the life of the mineral
deposit or over a shorter period if the property is shown to have an impairment
in value. Expenditures for mine equipment will be capitalized and depreciated
over their useful lives.
Environmental Requirements
- --------------------------
At the report date environmental requirements related to the mineral leases
acquired are unknown and therefore an estimate of any future cost cannot be
made.
Comprehensive Income
- --------------------
The Company adopted Statement of Financial Accounting Standards No. 130. The
adoption of this standard had no impact on the total stockholder's equity.
Recent Accounting Pronouncements
- --------------------------------
The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact on its financial statements.
Financial Instruments
- ---------------------
The carrying amounts of financial instruments are considered by management to be
their estimated fair values.
Estimates and Assumptions
- -------------------------
Management uses estimates and assumptions in preparing financial statements in
accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could vary from the estimates that were assumed in
preparing these financial statements.
9
QUINCY RESOURCES, INC.
(EXPLORATION STAGE COMPANY)
NOTES TO FINANCLAL STATEMENTS (CONTINUED)
OCTOBER 31, 2000
3. ACQUISITION OF MINERAL LEASE
The Company acquired and staked an undeveloped mineral claim containing 16 units
covering 256 hectares located in the Ferrier Creek area of the English Township
in the Porcupine mining Division of Ontario, Canada approximately 50 kilometres
south of the mining community of Timmins.
Assessment work in the amount of $6,400 is due on or before May 31, 2001 to
maintain the property in good standing.
4. RELATED PARTY TRANSACTIONS
Related parties have acquired 40% of the common stock issued.
5. GOING CONCERN
The Company will need additional working capital to be successful in its efforts
to develop the mineral lease acquired and continuation of the Company as a going
concern is dependent upon obtaining additional working capital and the
management of the Company has developed a strategy, which it believes will
accomplish this objective through additional equity funding, and long term
financing, which will enable the Company to operate in the coming year.
10
ITEM 2. PLAN OF OPERATIONS
The Company has not undertaken any assessment work on its mineral claim to date
other than having a geological report prepared thereon. Management has not yet
decided when it will undertake any exploration activities since the winter
months are not convenient for such work due to the heavy snow conditions in the
area. It is expected that snow conditions will clear by the middle of May and
then a decision can be made as to what work should be undertaken on the
property.
Liquidity and Cash Reserves
The Company has virtually no available cash on hand to undertake an exploration
program on its mineral claims and does not have adequate funds at this time to
meet its ongoing commitments such as accounting, audit, transfer agent and Edgar
filing fees.
Management will be addressing this situation within the next short period of
time and might have to consider making personal loans to the Company in order to
maintain it in good standing until funds can be raised from other sources.
Sources available to the Company are bank financing supported by personal
guarantees from the directors and officers or by way of the issuance of its
common shares. No decision in this regard has been made the directors to date.
Results of operations
The Company has had not results from its operations to date. No funds have been
generated from its mineral claim and none are expected to be generated in the
foreseeable future.
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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 he
undersigned thereunto duly authorized.
QUINCY RESOURCES INC.
May 11, 2001 /s/ "Adam Smith"
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Date Adam Smith
President and Director
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