U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File No. 33-2150-LA
PHANTOMFILM.COM
---------------
(Name of Small Business Issuer in its Charter)
NEVADA 95-3932052
------ ----------
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
Suite 400, 1111 W. Georgia Street
Vancouver, British Columbia V6E 4M3
Canada
------
(Address of Principal Executive Offices)
Issuer's Telephone Number: (604) 689-5377
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 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.
(1) Yes X No (2) Yes X No
--- --- --- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date:
December 31, 2000
7,183,142
---------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
The Financial Statements of PhantomFilm.com, a Nevada corporation
(the "Company"), required to be filed with this 10-QSB Quarterly Report were
prepared by management, and commence on the following page, together with
Related Notes. In the opinion of management, the Financial Statements fairly
present the financial condition of the Company.
PHANTOMFILM.COM
(A Development Stage Company)
CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2000 and March 31, 2000
PHANTOMFILM.COM
(A Development Stage Company)
Consolidated Balance Sheets
ASSETS
December 31, March 31,
2000 2000
(Unaudited)
CURRENT ASSETS
Cash $ - $ 2,499
Prepaid expenses 4,000 10,677
Total Current Assets 4,000 13,176
FURNITURE AND EQUIPMENT, NET (Note 4) - -
OTHER ASSETS
Mineral properties (Note 5) - -
Total Other Assets - -
TOTAL ASSETS $ 4,000 $ 13,176
PHANTOMFILM.COM
(A Development Stage Company)
Consolidated Balance Sheets (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
December 31, March 31,
2000 2000
(Unaudited)
CURRENT LIABILITIES
Accounts payable $ 27,612 $ 27,967
Accounts payable - related party 875 -
Reserve for discontinued operations (Note 6) 205,676 205,676
Total Current Liabilities 234,163 233,643
COMMITMENTS AND CONTINGENCIES (Note 7)
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock: 10,000,000 shares authorized of
$0.001 par value, 2,000,000 shares issued and
outstanding 2,000 2,000
Common stock: 100,000,000 shares authorized of
$0.001 par value, 7,183,142 shares issued and
outstanding 7,183 7,083
Additional paid-in capital 11,484,203 11,476,303
Deficit accumulated during the
development stage (11,723,549)(11,705,853)
Total Stockholders' Equity (Deficit) (230,163) (220,467)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) $ 4,000 $ 13,176
PHANTOMFILM.COM
(A Development Stage Company)
Consolidated Statements of Operations
(Unaudited)
From
Inception on
For the For the November 10,
Nine Months Ended Three Months Ended 1995 Through
December 31, December 31, December 31,
2000 1999 2000 1999 2000
REVENUES $ - $ - $ - $ - $ -
EXPENSES
Depreciation and
amortization - 77,656 - 36,599 170,538
General and administrative 17,696 625,649 5,127 76,464 643,552
Total Expenses 17,696 703,305 5,127 113,063 814,090
LOSS FROM OPERATIONS (17,696) (703,305) (5,127) (113,063) (814,090)
LOSS FROM DISCONTINUED
OPERATIONS (Note 6) - - - - (10,909,730)
OTHER INCOME (EXPENSE)
Interest income - 377 - 106 271
Total Other Income (Expense) - 377 - 106 271
NET LOSS $ (17,696)$(702,928)$(5,127)$(112,957)$(11,723,549)
BASIC LOSS PER SHARE OF
COMMON STOCK $ (0.00)$ (0.11)$ (0.00)$ (0.02)
PHANTOMFILM.COM
(A Development Stage Company)
Consolidated Statements of Stockholders' Equity (Deficit)
Preferred Stock Common Stock
Shares Amount Shares Amount
Balance at November 10, 1995
(Inception) - $ - - $ -
Common stock issued for cash at
approximately $0.00 per share - - - -
Currency translation adjustment - - - -
Net loss for the year ended
March 31, 1996 - - - -
Balance, March 31, 1996 - - - -
Common stock issued for cash at
approximately $3.80 per share - - 288,500 288
Common stock issued for services
at approximately $7.60 per share - - 11,500 12
Currency translation adjustment - - - -
Net loss for the year ended
March 31, 1997 - - - -
<CONTINUED>
Deficit
Accumulated
Additional Stock Other During the
Paid-In Subscription Comprehensive Developmental
Capital Receivable Income (Loss) Stage
Balance, November 10, 1995 - $ - $ - $ -
Common stock issued for cash at
approximately $0.00 per share - - - -
Currency translation adjustment - - (1,230) -
Net loss for the year ended
March 31, 1996 - - - (157,549)
Balance, March 31, 1996 - - (1,230) (157,549)
Common stock issued for cash at
approximately $3.80 per share 1,089,199 - - -
Common stock issued for services
at approximately $7.60 per share 87,544 - - -
Currency translation adjustment - - 8,542 -
Net loss for the year ended
March 31, 1997 - - - (1,388,389)
Balance, March 31, 1997 $1,176,743 $ - $ 7,312$(1,545,938)
PHANTOMFILM.COM
(A Development Stage Company)
Consolidated Statements of Stockholders' Equity (Deficit)
Preferred Stock Common Stock
Shares Amount Shares Amount
Balance, March 31, 1997 - $ - 300,000 300
Recapitalization (Note 1) - - 1,230,899 1,231
Common stock issued for cash at
approximately $3.60 per share - - 610,761 611
Common stock issued for services
at approximately $3.60 per share - - 336,650 336
Issuance of warrants - - - -
Common stock issued for debt at
approximately $2.60 per share - - 382,800 383
Common stock issued for mineral
properties at $10.00 per share - - 55,000 55
Preferred stock issued for
services at $1.80 per share 2,000,000 200,000 - -
Currency translation adjustment - - - -
Net loss for the year ended
March 31, 1998 - - - -
Balance, March 31, 1998 2,000,000 200,000 2,916,110 2,916
<CONTINUED>
Deficit
Accumulated
Additional Stock Other During the
Paid-In Subscription Comprehensive Developmental
Capital Receivable Income (Loss) Stage
Balance, March 31, 1997 1,176,745 $ - 7,312 $(1,545,938)
Recapitalization (Note 1) 392,831 - - -
Common stock issued for cash at
approximately $3.60 per share 2,821,516 (100,000) - -
Common stock issued for services
at approximately $3.60 per share 1,179,289 (154,281) - -
Issuance of warrants 17,220 - - -
Common stock issued for debt at
approximately $2.60 per share 995,336 - - -
Common stock issued for mineral
properties at $10.00 per share 549,945 - - -
Preferred stock issued for
services at $1.80 per share 160,000 - - -
Currency translation adjustment - - 260,719 -
Net loss for the year ended
March 31, 1998 - - - (3,332,577)
Balance, March 31, 1998 7,292,881 (254,281) 268,031(4,878,515)
PHANTOMFILM.COM
(Formerly Panther Resources, Ltd.)
(A Development Stage Company)
Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
Preferred Stock Common Stock
Shares Amount Shares Amount
Balance, March 31, 1998 2,000,000 $ 200,000 2,916,110 $ 2,916
Common stock issued for cash at
approximately $1.40 per share - - 856,333 856
Common stock issued for services
at approximately $1.50 per
share - - 1,022,717 1,023
Receipt of subscription
receivable - - - -
Common stock issued for debt at
approximately $2.00 per share - - 12,000 12
Currency translation adjustment - - - -
Net loss for the year ended
March 31, 1999 - - - -
Balance, March 31, 1999 2,000,000 $ 200,000 4,807,160 $ 4,807
<CONTINUED>
Deficit
Accumulated
Additional Stock Other During the
Paid-in Subscription Comprehensive Development
Capitol Receivable Income (Loss) Stage
Balance, March 31, 1998 $7,292,881 $(254,281) $ 268,031$(4,878,515)
Common stock issued for cash at
approximately $1.40 per share 1,223,424 - - -
Common stock issued for
services at approximately
$1.50 per share 1,494,199 - - -
Receipt of subscription
receivable - 254,281 - -
Common stock issued for debt at
approximately $2.00 per share 23,988 - - -
Currency translation adjustment - - (268,031) -
Net loss for the year ended
March 31, 1999 - - - (6,031,215)
Balance, March 31, 1999 $10,034,492 - - (10,909,730)
PHANTOMFILM.COM
(Formerly Panther Resources, Ltd.)
(A Development Stage Company)
Consolidated Statements of Stockholders' Equity (Deficit) (Continued)
Preferred Stock Common Stock
Shares Amount Shares Amount
Balance, March 31, 1999 2,000,000 $ 200,000 4,807,160 $ 4,807
Common stock issued for debt
at $2.50 per share - - 736,196 736
Common stock issued for cash
at $0.50 per share - - 100,000 100
Common stock issued for services
at approximately $0.46 per share - - 1,192,286 1,192
Common stock issued for License
at $0.50 per share (unaudited) - - 250,000 250
Cancellation of common stock - - (2,500) (2)
Change in preferred stock at par
value - (198,000) - -
Net loss for the year ended
March 31, 2000 - - - -
Balance, March 31, 2000 2,000,000 $ 2,000 7,083,142 $ 7,083
Common stock issued for services
at $0.08 per share (unaudited) - - 100,000 100
Net loss for the nine months
ended December 31, 2000
(unaudited) - - - -
Balance, December 31, 2000
(unaudited) 2,000,000 $ 2,000 7,183,142 $ 7,183
<CONTINUED>
Deficit
Accumulated
Additional Stock Other During the
Paid-in Subscription Comprehensive Development
Balance, March 31, 1999 $10,034,492 $ - $ - $(10,909,730)
Common stock issued for debt
at $2.50 per share 520,210 - - -
Common stock issued for cash
at $0.50 per share 49,900 - - -
Common stock issued for
services at approximately
$0.46 per share 552,699 - - -
Common stock issued for
License at $0.50 per share 124,750 - - -
Cancellation of common stock (3,748) - - -
Change in preferred stock at
par value 198,000 - - -
Net loss for the year ended
March 31, 2000 - - - (796,123)
Balance, March 31, 2000 $11,476,303 $ - $ - $(11,705,853)
Common stock issued for services
at $0.08 per share (unaudited) 7,900 - - -
Net loss for the nine months
ended December 31, 2000
(unaudited) - - - (17,696)
Balance, December 31, 2000
(unaudited) $11,484,203 $ - $ - $(11,723,549)
PHANTOMFILM.COM
(A Development Stage Company)
Consolidated Statements of Cash Flows
(Unaudited)
From
Inception on
For the For the November 10,
Nine Months Ended Three Months Ended 1995 Through
December 31, December 31, December 31,
2000 1999 2000 1999 2000
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $(17,696) $(702,928) $(5,127) $(112,957)$(11,723,549)
Adjustments to
reconcile net loss to
net cash used by
operating activities:
Depreciation and
amortization expense - 77,656 - 32,036 194,021
Stock issued for
services 8,000 371,247 8,000 - 3,526,273
Bad debt expense - - - - 224,941
Write-off mineral property - - - - 3,914,434
Issuance of warrants - - - - 17,220
Currency translation
adjustment - - - - (168,626)
Changes in operating
assets and liabilities:
(Increase) decrease in
accounts receivable - (10,677) - (10,677) (213,312)
(Increase) decrease in
deposits and prepaid
expenses 6,676 46,419 (4,000) 123,299 (89,365)
Increase (decrease) in
cash overdraft - - (1,551) - -
Increase (decrease) in
accounts payable (354) (91,802) 1,803 (80,491) 157,885
Increase in reserve for
discontinued operations - - - 89,076 258,161
Increase (decrease) in
accounts payable -
related party 875 - 875 (6,278) 875
Net Cash (Used) by
Operating Activities (2,499) (310,085) - 35,008 (3,901,042)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of fixed assets - - - - (149,014)
Purchase of mineral property
and deferred exploration
costs - - - - (2,762,539)
Net Cash (Used) by
Investing Activities - - - - (2,911,553)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from common stock - 556,421 - - 5,340,175
Proceeds on notes payable - - - - 1,713,292
Payments on notes payable - (240,872) - (29,530) (240,872)
Net Cash Provided by
Financing Activities $ - $315,549 $ - $(29,500) $ 6,812,595
PHANTOMFILM.COM
(A Development Stage Company)
Consolidated Statements of Cash Flows (Continued)
(Unaudited)
From
Inception on
For the For the November 10,
Nine Months Ended Three Months Ended 1995 Through
December 31, December 31, December 31,
2000 1999 2000 1999 2000
NET INCREASE IN CASH $(2,499) $ (5,464) $ - $ 5,478 $ -
CASH AT BEGINNING OF PERIOD 2,499 82 - 68 -
CASH AT END OF PERIOD $ - $ 5,546 $ - $ 5,546 $ -
CASH PAID FOR:
Interest $ - $ - $ - $ - $ -
Income taxes $ - $ - $ - $ - $ -
NON-CASH FINANCING ACTIVITIES
Common stock issued for
acquisition $ - $ - $ - $ - $ 394,062
Common stock issued for
debt conversion $ - $ - $ - $ - $ 1,210,719
Common stock issued for
mineral properties $ - $ - $ - $ - $ 550,000
Common stock issued for
services $ 8,000 $371,247 $ 8,000 $ - $ 3,526,273
Common stock issued for
license $ - $125,000 $ - $ - $ 125,000
PHANTOMFILM.COM
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2000 and 1999
NOTE 1 - ORGANIZATION AND HISTORY
The consolidated financial statements presented are those of
Panther Resources Ltd. (the Company). The Company was originally
incorporated as Thermacor Technology, Inc. on September 21, 1984
under the laws of the State of Nevada. On March 26, 1997, the
Company changed its name to Golden Panther Resources, Ltd. and on
March 10, 1998, the Company changed its name to Panther Resources
Ltd. On June 11, 2000, the Company changed its name to
PhantomFilm.com.
Golden Panther Resources Ltd. (premerger) (GPR) was incorporated
under the Company Act of British Columbia on November 10, 1995 as
508556 B.C. Ltd. and changed its name to Golden Panther Resources
Ltd. on March 28, 1996.
On April 2, 1997, Panther Resources Ltd. and Golden Panther
Resources, Ltd. completed an Agreement and Plan of Reorganization
whereby the Company issued 300,000 shares of its common stock in
exchange for all of the outstanding common stock of GPR.
Immediately prior to the Agreement and Plan or Reorganization, the
Company had 1,230,890 shares of common stock issued and
outstanding.
The acquisition was accounted for as a recapitalization of GPR
because the shareholders of GPR controlled the Company after the
acquisition. Therefore, GPR is treated as the acquiring entity.
There was no adjustment to the carrying value of the assets or
liabilities of GPR in the exchange. The Company is the acquiring
entity for legal purposes and GPR is the surviving entity for
accounting purposes. On March 1, 1997, the Company completed a
reverse stock split of 1-for-10 shares. On March 22, 1997, the
shareholders of the Company authorized a reverse stock split of 1-
for-20 shares. On June 11, 2000, the shareholders of the Company
authorized a reverse stock split of 1-for-10 shares. All
references to common stock have been retroactively restated.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
a. Accounting Method
The Company's financial statements are prepared using the accrual
method of accounting. The Company has elected a March 31 year
end.
b. Cash and Cash Equivalents
Cash equivalents include short term, highly liquid investments
with maturities of three months or less at the time of
acquisition.
PHANTOMFILM.COM
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2000 and 1999
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
c. Basic Loss Per Share
For the Three Months Ended For the Nine Months Ended
December 31, 2000 December 31, 2000
Loss Shares Per Share Loss Shares Per Share
(Numerator) (Denominator) Amount (Numerator)(Denominator) Amount
$ (5,127) 7,152,809 $ (0.00) $ (17,696) 7,102,809 $ (0.00)
For the Three Months Ended For the Nine Months Ended
December 31, 1999 December 31, 1999
Loss Shares Per Share Loss Shares Per Share
(Numerator) (Denominator) Amount (Numerator)(Denominator) Amount
$(112,957) 7,245,645 $ (0.02) $(702,928) 6,433,069 $ (0.11)
The computations of basic loss per share of common stock are based
on the weighted average number of shares outstanding at the date of
the financial statements.
d. Provision for Taxes
At December 31, 2000, the Company had net operating loss
carryforwards of approximately $4,200,000 that may be offset against
future taxable income through 2019. No tax benefit has been
reported in the consolidated financial statements, because the
Company believes there is a 50% or greater chance the carryforward
will expire unused. Accordingly, the potential tax benefits of the
loss carryforward are offset by a valuation account of the same
amount.
e. Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results
could differ from those estimates.
f. Preferred Stock
The Company has authorized 10,000,000 shares of preferred stock, par
value $0.001 per share. 2,000,000 shares of the preferred stock
have been issued as a Class A issuance. Each share is convertible
into 5 shares of common stock at $0.10 per share.
PHANTOMFILM.COM
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2000 and 1999
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
g. Mineral Properties
The costs associated with acquiring and exploring mineral properties
are capitalized on an individual property basis. When a property is
developed to the stage of commercial production, the related costs
will be amortized over the estimated reserve life of the property.
If a property is abandoned or if it is determined that its net
recoverable value is less than book value, the related costs will be
charged against operations in the year of abandonment or impairment
in value.
The recorded amounts represent cost to date and do not necessarily
reflect present or future value.
Mineral property option payments received by the Company upon sale
of an interest in a mining property are considered a recovery of
costs and are recorded as a reduction of the mineral property costs.
The Company has set up an allowance for the full amount of the
mineral properties due to the doubtfulness of the recoverability of
the costs (Note 5).
h. Title to Mineral Properties
Although it is the Company's policy to confirm the validity of its
rights to title to, or contract rights with respect to, each mineral
property in which it has a material interest, there is no guarantee
that title to its properties will not be challenged or impugned.
Title insurance generally is not available, and the Company's
ability to ensure that it has obtained secure claim to individual
mineral properties or mining concessions may be severely
constrained. The Company has conducted surveys of all of the claims
in which it holds direct or indirect interests and, therefore, the
precise area and location of such claims is not in doubt. All
mineral properties have a full allowance because of the doubtful
nature of future cash flows.
PHANTOMFILM.COM
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2000 and 1999
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
i. Concentrations of Risk - Foreign Operations
The Company has conducted exploration activities in countries with
developing economies, including Mexico and Indonesia. Both of these
countries have experienced recently, or are experiencing currently,
economic or political instability. Hyperinflation, volatile
exchange rates and rapid political and legal change, often
accompanied by military insurrection, have been common in these and
certain other emerging markets in which the Company may conduct
operations. The Company may be materially adversely affected by
possible political or economic instability in any one or more of
those countries. The risks include, but are not limited to
terrorism, military repression, expropriation, changing fiscal
regimes, extreme fluctuations in currency exchange rates, high rates
of inflation and the absence of industrial and economic
infrastructure. Changes in mining or investment policies or shifts
in the prevailing political climate in any of the countries in which
the Company conducts exploration and development activities could
adversely affect the Company's business. Operations may be affected
in varying degrees by government regulations with respect to
production restrictions, price controls, export controls, income and
other taxes, expropriation of property, maintenance of claims,
environmental legislation, labor, welfare benefit policies, land
use, land claims of local residents, water use and mine safety. The
effect of these factors cannot be accurately predicted. Currently,
the Company is not conducting operations in Mexico or Indonesia.
j. Capital Assets and Amortization
Capital assets are recorded at cost and amortization is provided
over the estimated economic life on a straight line basis at the
following rates:
Office furniture and equipment 20% per year
Computer equipment 30% per year
Drilling equipment 20% per year
k. Foreign Currency Translation
Monetary assets and liabilities denominated in foreign currencies
are translated into United States dollars at the period and
exchange rate. Non-monetary assets are translated at the
historical exchange rate and all income and expenses are
translated at the exchange rates prevailing during the period.
Foreign exchange currency translation adjustments are included in
the stockholders' equity section.
l. Fair Value of Financial Instruments
As of December 31, 2000, the fair value of cash, accounts
receivable and accounts and advances payable including amounts due
to and from related parties, approximate carrying values because
of the short-term maturity of these instruments.
PHANTOMFILM.COM
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2000 and 1999
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
m. Principles of Consolidation
The consolidated financial statements include the accounts of
PhantomFilm.com, Golden Panther Resources, Incorporated, Golden
Panther Investments, Ltd. and Panther Group, Ltd. All significant
intercompany accounts have been eliminated.
n. Change in Accounting Principles
In June 1998, the FASB issued SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" which requires
companies to record derivatives as assets or liabilities, measured
at fair market value. Gains or losses resulting from changes in the
values of those derivatives would be accounted for depending on the
use of the derivative and whether it qualifies for hedge accounting.
The key criterion for hedge accounting is that the hedging
relationship must be highly effective in achieving offsetting
changes in fair value or cash flows. SFAS No. 133 is effective for
all fiscal quarters of fiscal years beginning after June 15, 1999.
The adoption of this statement had no material impact on the
Company's consolidated financial statements.
o. Unaudited Financial Statements
The accompanying unaudited financial statements include all of the
adjustments which, in the opinion of management, are necessary for a
fair presentation. Such adjustments are of a normal recurring
nature.
NOTE 3 - GOING CONCERN
The Company's consolidated financial statements are prepared using
generally accepted accounting principles applicable to a going
concern which contemplates the realization of assets and liquidation
of liabilities in the normal course of business. However, the
Company does not have significant cash or other current assets, nor
does it have an established source of revenues sufficient to cover
its operating costs and to allow it to continue as a going concern.
The Company intends to develop business on the internet. In the
interim, management is committed to meeting the operational cash
flow needs of the Company.
NOTE 4 - FURNITURE AND EQUIPMENT
December 31 and March 31, 2000
Accumulated Net Book
Cost Depreciation Value
Office furniture and equipment $ 71,260 $ 71,260 $ -
$ 71,260 $ 71,260 $ -
During the nine months ended December 31, 2000 and 1999, the Company
expensed $-0- and $77,656 in depreciation, respectively. These
amounts are included in loss from discontinued operations.
PHANTOMFILM.COM
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2000 and 1999
NOTE 5 - MINERAL PROPERTIES AND DEFERRED EXPENDITURES
La Verde, Mexico property $ 820,208
Exploration costs - La Verde property 1,161,485
Kutai property - East Kaumantan, Indonesia 1,250,000
Exploration and development costs - Kutai property 233,693
Allowance for loss on mineral properties (3,465,386)
$ -
Kutai Property, Indonesia
Panther acquired in 1996 a property known as Kutai. It is 123,548
acres (50,000 hectares) in size and is located in the province of
Eastern Kalimantan on the Island of Borneo. Panther has a joint
venture agreement on the property with an Indonesian partner, P.T.
Pertiwi Kencana Abadi (PKA), a company incorporated in Indonesia.
Panther has 80% of the concession while PKA has 20%. Panther can
acquire an additional 10% of the property for a $5,000,000 lump sum
payment to PKA.
La Verde Property, Sinaloa, Mexico
The La Verde properties are located near Cosala in the State of
Sinaloa, about 99 miles north of Mazatlan, Mexico, and 97 miles
southeast of Culiacan, the capital of Sinaloa.
Allowance for Loss on Mineral Properties
The Company has set up an allowance for 100% of the mineral
properties because of the change in the Company's business plan.
This amount is recorded in the loss from discontinued operations.
PHANTOMFILM.COM
(A Development Stage Company)
Notes to the Consolidated Financial Statements
December 31, 2000 and 1999
NOTE 6 - LOSS FROM DISCONTINUED OPERATIONS
On March 31, 1999, the Board of Directors of the Company decided to
discontinue the mining operations due to a lack of funding and low
precious metal prices. The following is a summary of the loss from
discontinued operations.
From
Inception on
November 10,
1995 Through
June 30,
1999
REVENUES $ -
EXPENSES
General and administrative 6,923,450
Depreciation 23,483
Total Expenses 6,946,933
LOSS FROM OPERATIONS (6,946,933)
OTHER INCOME (EXPENSE)
Currency translation income 168,626
Write-off of mineral property (3,914,434)
Bad debt expense (224,941)
Interest income 7,952
Total Other Income (Expense) (3,962,797)
NET LOSS $ (10,909,730)
The Company had liabilities of $205,676 which are associated with
the discontinued operations. No income tax benefit has been
attributed to the loss from discontinued operations
NOTE 7 - COMMITMENTS AND CONTINGENCIES
Lease
The Company has a month-to-month office lease agreement which calls
for payments of $6,292 per month.
NOTE 8 - COMMON STOCK
On October 31, 2000, the Company issued 100,000 shares of common
stock for services, valued at $0.08 per share for $8,000.
Item 2. Management's Discussion and Analysis or Plan of Operation.
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Plan of Operation.
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The Company's business plan calls for it to derive revenues from
licensing streaming video technology to other companies and from the sale of
advertising on its own Web sites, including gateway ads with guaranteed
"click-throughs," channel and event sponsorships, and traditional banner
advertisements. Management believes that streaming media technology is
essential to the evolution of the World Wide Web as a mass communication
medium since it provides a more compelling user experience.
Although the Company is not one of the early entrants into the
internet video market, it plans to establish strong brand recognition
for its streaming video Technology.
Results of Operation.
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From our inception through December 31, 2000, we have had no
revenues and our operating activities consisted primarily of investing in
mineral properties. On June 29th, 1999 the Company entered into a non-
exclusive licensing agreement wherein the Company obtained the right to market
streaming video technology on a non-exclusive basis. At the present time this
technology is not ready for commercial use. Future sales of business services
related to streaming media content and advertising are projected to be the
main sources of our revenues. The company plans to pursue other avenues of
the streaming video business through acquisition or joint venture arrangements
although there is nothing formalized at this time.
We have incurred significant losses since inception on November 10,
1995. From inception to December 31, 2000, the Company has incurred a net
loss of $11,723,549, with a net loss of $17,696 for the nine months ended
December 31, 2000.
We believe that our success will depend largely on our ability to
compete as a source for streaming media programming and business services to
the Web.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
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None; not applicable.
Item 2. Changes in Securities.
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None; not applicable.
Item 3. Defaults Upon Senior Securities.
- ------------------------------------------
None; not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
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None; not applicable.
Item 5. Other Information.
- ----------------------------
None; not applicable.
Item 6. Exhibits and Reports on Form 8-K.
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(a) Exhibits.
None.
(b) Reports on Form 8-K.
None.
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.
PHANTOMFILM.COM
Date: 20/02/01 By/s/Victor Cardenas
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Victor Cardenas
President/Director
Date: 20/02/01 By/s/Gordon Muir
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Gordon Muir
CEO/Director
Date: 20/02/01 By/s/Penny Perfect
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Penny Perfect
Director
Date: 20/02/01 By/s/Katharine Johnston
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Katharine Johnston
Director