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 June 30, 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 July 12, 2002, 95,474,665 shares of the registrant's common stock were
outstanding.
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TABLE OF CONTENTS
PAGE
PART I
ITEM 1. Financial Statements
Balance Sheets as of June 30, 2002
and December 31, 2001 3
Statements of Operations For the Three and Six Month
Periods Ended June 30, 2002 and 2001 4
Statements of Cash Flows For the Six Month Periods
Ended June 30, 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 8
PART I.
ITEM 1: FINANCIAL STATEMENTS
QUAD METALS CORPORATION BALANCE SHEETS AS OF JUNE 30, 2002
(UNAUDITED) AND DECEMBER 31, 2001
(UNAUDITED)
JUNE 30, DECEMBER 31,
2002 2001
----------- -----------
ASSETS
CURRENT ASSETS:
Cash $ 25,497 $ 40,431
----------- -----------
Total current assets $ 25,497 $ 40,431
=========== ===========
LIABILITES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 510 $ 4,370
----------- -----------
Total current liabilities 510 4,370
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock; no par value;
100,000,000
shares authorized; 95,474,665
shares issued and outstanding - -
Paid-in capital 2,252,824 2,252,824
Preferred stock; no par value;
10,000,000 shares
authorized; none issued and
outstanding - -
Accumulated deficit (2,227,837) (2,216,763)
----------- -----------
Total stockholders' equity 24,987 36,061
----------- -----------
Total liabilities and
stockholders' equity $ 25,497 $ 40,431
=========== ===========
The accompanying notes are an integral part of these financial statements.
QUAD METALS CORPORATION STATEMENTS OF OPERATIONS FOR THE THREE AND SIX
(UNAUDITED) MONTH PERIODS ENDED JUNE 30, 2002 AND 2001
JUNE 30, 2002 JUNE 30, 2001
------------------------ ------------------------
THREE SIX THREE SIX
MONTHS MONTHS MONTHS MONTHS
----------- ----------- ----------- -----------
OPERATING EXPENSES:
General and administrative
Expenses $ 4,480 $ 11,318 $ - $ -
----------- ----------- ----------- -----------
Total operating expenses 4,480 11,318 - -
----------- ----------- ----------- -----------
OTHER (INCOME):
Interest income (109) (244) - -
----------- ----------- ----------- -----------
NET LOSS $ 4,371 $ 11,074 $ - $ -
=========== =========== =========== ===========
NET LOSS PER COMMON SHARE $ Nil $ Nil $ Nil $ Nil
=========== =========== =========== ===========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING-BASIC 95,474,655 95,474,655 35,474,655 35,474,655
=========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
QUAD METALS CORPORATION STATEMENTS OF CASH FLOWS FOR THE THREE MONTH
(UNAUDITED) PERIODS ENDED JUNE 30, 2002 AND 2001
SIX MONTHS ENDED
JUNE 30,
-------------------------
2002 2001
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ 11,074 $ -
Change in
Decrease in accounts payable 3,860 -
Net cash used by operating activities 14,934 -
----------- -----------
NET DECREASE IN CASH 14,934 -
CASH AT BEGINNING OF PERIOD 40,431 -
----------- -----------
CASH AT END OF PERIOD $ 25,497 $ -
=========== ===========
The accompanying notes are an integral part of these financial statements.
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.
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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 June 30, 2002 compared to the three month
period ended June 30, 2001
For the three months ended June 30, 2002, the Company had a net loss of $4,371
and was inactive during the comparable period of 2001. The loss in the second
quarter 2002 is primarily due to increased legal fees included in the Company's
general and administrative expenses.
FINANCIAL CONDITION AND LIQUIDITY
During the six month period ended June 30, 2002, the Company used $14,934 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.
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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
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 7/11/02
- ------------------------------------- --------
Robert W. O'Brien Date
President, Director and Principal Financial Officer