UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2002
[ ] 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 1-5996
QUAD METALS CORPORATION
(Exact name of small business issuer as specified in its charter)
WASHINGTON 91-0835748
(State or other jurisdiction of (IRS Employer Id. Number)
incorporation or organization)
601 WEST MAIN AVENUE, SUITE 714 SPOKANE, WA 99201
(Address of principal executive offices)
Registrant's Telephone Number, Including Area Code: (509) 455-9077
COMMON STOCK (NONE)
Title of each class Name and exchange on which registered
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 as the registrant was
required to file such reports), and (2) has been subject to filing requirements
for the past 90 days.
Yes [ ] No [X]
At April 26, 2002, 95,474,665 shares of the registrant's common stock were
outstanding.
<page>
TABLE OF CONTENTS
PART I
PAGE
ITEM 1 Balance Sheets as of March 31, 2002
and December 31, 2001 3
Statements of Operations For the Three Month
Periods Ended March 31, 2002 and 2001 4
Statements of Cash Flows For the Three Month Periods
Ended March 31, 2002 and 2001 5
Notes to Financial Statements 6
ITEM 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II
ITEM 1 Legal Proceedings 8
ITEM 2 Changes in Securities 8
ITEM 3 Defaults Upon Senior Securities 8
ITEM 4 Submission of Matters to a Vote of Security Holders 8
ITEM 5 Other Information 8
ITEM 6 Exhibits and Reports on Form 8-K 8
Signatures 9
<page>
PART I.
ITEM 1: FINANCIAL STATEMENTS
BALANCE SHEETS AS OF MARCH 31, 2002
QUAD METALS CORPORATION AND DECEMBER 31, 2001
MARCH 31, DECEMBER 31,
2002 2001
(UNAUDITED)
-------------- --------------
ASSETS
CURRENT ASSETS:
Cash $ 34,344 $ 40,431
-------------- --------------
Total current assets $ 34,344 $ 40,431
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,986 $ 4,370
-------------- --------------
Total current liabilities 4,986 4,370
-------------- --------------
STOCKHOLDERS' EQUITY
Common stock; no par value; 100,000,000
shares authorized; 95,474,665 shares
issued and outstanding 2,252,824 2,252,824
Preferred stock; no par value; 10,000,000
shares authorized; none issued and
outstanding - -
Accumulated deficit (2,223,466) (2,216,763)
-------------- --------------
Total stockholders' equity 29,358 36,061
-------------- --------------
Total liabilities and stockholders' equity $ 34,344 $ 40,431
============== ==============
See the accompanying notes.
<page>
QUAD METALS CORPORATION STATEMENTS OF OPERATIONS FOR THE THREE MONTH
(UNAUDITED) PERIODS ENDED MARCH 31, 2002 AND 2001
MARCH 31, MARCH 31,
2002 2001
-------------- --------------
OPERATING EXPENSES:
General and administrative expenses $ 6,838 $ -0-
-------------- --------------
Total operating expenses 6,838 -0-
-------------- --------------
OTHER (INCOME):
Interest income (135) -0-
-------------- --------------
NET LOSS $ 6,703 $ -0-
============== ==============
NET LOSS PER COMMON SHARE $ Nil $ Nil
============== ==============
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING - BASIC 95,474,665 35,474,665
============== ==============
See the accompanying notes.
<page>
QUAD METALS CORPORATION STATEMENTS OF CASH FLOWS FOR THE THREE MONTH
(UNAUDITED) PERIODS ENDED MARCH 31, 2002 AND 2001
MARCH 31, MARCH 31,
2002 2001
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ 6,703 $ -0-
Change in:
Increase in accounts payable (616) -0-
-------------- --------------
Net cash flows used by operating activities 6,087 -0-
-------------- --------------
NET DECREASE IN CASH 6,087 -0-
CASH AT BEGINNING OF PERIOD 40,431 -0-
-------------- --------------
CASH AT END OF PERIOD $ 34,344 $ -0-
============== ==============
See the accompanying notes.
<page>
QUAD METALS CORPORATTION
(UNAUDITED) NOTES TO FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION:
The financial statements of Quad Metals Corporation included herein have been
prepared without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Although certain information normally included in
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America has been condensed or omitted, Quad
Metals Corporation believes that the disclosures are adequate to make the
information presented not misleading. These financial statements should be read
in conjunction with the financial statements and notes thereto for the fiscal
year ended December 31, 2001 included in the registrant's Form 10-KSB.
The financial statements included herein reflect all normal recurring
adjustments that, in the opinion of management, are necessary for a fair
presentation. The results for interim periods are not necessarily indicative of
trends or of results to be expected for the full year ending December 31, 2002.
2. NATURE OF BUSINESS AND PLAN OF OPERATION:
The objectives of the Company are to seek, investigate and, if such
investigation warrants, acquire an interest in business opportunities presented
to it by persons or firms who or which desire to seek the perceived advantages
of a publicly registered corporation. The Company has no recurring source of
revenue and has incurred operating losses since inception. These conditions
raise substantial doubt about the Company's ability to continue as a going
concern as expressed by the Company's independent accountants in their report on
the Company's December 31, 2001, financial statements. The interim financial
statements do not contain any adjustments which might be necessary if the
Company is unable to continue as a going concern.
[The balance of this page left intentionally blank.]
<page>
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
This report contains both historical and prospective statements concerning the
Company and its operations. Prospective statements (known as "forward-looking
statements") may or may not prove true with the passage of time because of
future risks and uncertainties. The Company cannot predict what factors might
cause actual results to differ materially from those indicated by prospective
statements.
RESULTS OF OPERATIONS
For the three month period ended March 31, 2002 compared to the three month
period ended March 31, 2001
For the three months ended March 31, 2002, the Company had a net loss of $6,703
and was inactive during the comparable period of 2001. The loss in the first
quarter 2002 is primarily due to increased general and administrative expenses
associated with the audit of the Company's financial statements and the
preparation and filing of Form 10-KSB with the Securities and Exchange
Commission.
FINANCIAL CONDITION AND LIQUIDITY
During the three month period ended March 31, 2002, the Company used $6,087 of
cash in operating activities. The Company has no recurring revenue from
operating activities and has no immediate plans to sell additional shares of
common stock. The Company anticipates being able to fund its operations for the
remainder of 2002 through its existing cash resources.
<page>
PART II
ITEM 1 LEGAL PROCEEDINGS
NONE
ITEM 2 CHANGES IN SECURITIES
NONE
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS
NONE
ITEM 5 OTHER INFORMATION
NONE
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
NONE
<page>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(b) of the Securities and
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Quad Metals Corporation
-----------------------
(Registrant)
By: /s/ Robert W. O'Brien 5/02/02
- ----------------------------- ---------------
Robert W. O'Brien Date
President, Director and Principal Financial Officer