12
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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 January 31, 2002
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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
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
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1327 Laburnum Street
Vancouver, BC, Canada V6J 2W4
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(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 January 31, 2002
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Common Stock, $0.001 per share 10,026,500
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INDEX
PAGE
NUMBER
PART 1.
ITEM 1.. Financial Statements 3
Balance Sheet as at January 31, 2002 and
April 30, 2001. . . . . . . . . . . . . . . . 4
Statement of Operations
For the three and nine months ended January
31, 2002 and 2001 and for the period
from May 5, 1999 (Date of Inception) to
January 31, 2002. . . . . . . . . . . . 5
Statement of Cash Flows
For the nine months ended January 31, 2002
and 2001 and for the period from May 5,
1999 (Date of Inception) to January 31,
2002 6
Notes to Financial Statements .. . . . . . . 7
ITEM 2. Plan of Operations 10
PART 11.
Signatures . . . . . . . . . . . . . . . . . . . 11
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PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying balance sheets of Quincy Resources Inc. (an exploration stage
company) at January 31, 2002 and April 30, 2001 and the statement of operations
and statement of cash flow for the nine months ended January 31, 2002 and 2001,
and for the period from May 5, 1999 (date of inception) to January 31, 2002 have
been prepared by the Company's management in conformity with accounting
principles generally accepted in the United States of America. 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 January 31, 2002, are not necessarily
indicative of the results that can be expected for the year ending April 30,
2002.
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QUINCY RESOURCES INC.
(Exploration Stage Company)
BALANCE SHEETS
January 31, 2002 and April 30, 2001
(Unaudited - Prepared by Management)
January 31, 2002 April 30, 2001
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ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . $ 57 $ -
------------------ ----------------
$ 57 $ -
==================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable - related party . . . . . . . . . 6,016 156
Accounts payable . . . . . . . . . . . . . . . . . 11,187 7,514
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Total Current Liabilities. . . . . . . . . . . 17,203 7,670
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value; 10,026,500 shares issued and
outstanding. . . . . . . . . . . . . . . . . 10,027 10,027
Capital in excess of par value. . . . . . . . . . 32,323 24,223
Deficit accumulated during the exploration
Stage. . . . . . . . . . . . . . . . . . . . (59,496) (41,920)
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Total Stockholders' Deficiency. . . . . . . . (17,146) (7,670)
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$ 57 $ -
================== ================
The accompanying notes are an integral part of these unaudited financial
statements
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QUINCY RESOURCES INC.
(Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three and nine months ended January 31, 2002 and 2001 and for the period
May 5, 1999 (Date of Inception) to January 31, 2002
(Unaudited - Prepared by Management)
Three Three
Months Months Nine Months Nine Months
Ended Ended Ended Ended Inception to
January January January 31 January 31, January
31, 2002 31, 2001 , 2002 2001 31, 2002
------------- ------------ ------------- ------------- ------------
SALES. . . . . . . . . . . $ - $ - $ - $ - $ -
------------- ------------ ------------- ------------- --------------
GENERAL AND ADMINISTRATIVE
EXPENSES:
Accounting. . . . . . 950 950 2,850 1,575 9,900
Bank charges. . . . . 20 17 84 74 263
Consulting. . . . . . - - - - 1,000
Edgar filing fees . . 200 1,224 659 1,224 2,083
Geology report. . . . - - - - 1,950
Incorporation costs . - - - - 670
Legal fees. . . . . . - - 465 - 465
Management fees . . . 1,500 1,500 4,500 4,500 16,500
Office. . . . . . . . 131 85 836 370 1,630
Rent. . . . . . . . . 900 900 2,700 2,700 9,900
Staking fees. . . . . - - 2,902 - 4,007
Telephone . . . . . . 300 300 900 900 3,300
Transfer agent. . . . 1,473 1,222 1,680 1,437 5,515
Travel. . . . . . . . - - - - 2,313
------------- ------------ ------------- ------------- --------------
NET LOSS . . . . . . . . . $ (5,474) $ (6,198) $ (17,576) $ (12,780) $ (59,496)
============= ============ ============= ============= ==============
NET LOSS PER COMMON SHARE
Basic . . . . . . . . $ - $ - $ - $ -
============= ============ ============= =============
AVERAGE OUTSTANDING SHARES
Basic . . . . . . . . 10,026,500 10,026,500 10,026,500 10,026,500
============= ============ ============= =============
The accompanying notes are an integral part of these unaudited financial
Statements
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QUINCY RESOURCES INC.
(Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the nine months ended January 31, 2002 and 2001 and
for the period from May 5,
1999 (Date of Inception) to January 31, 2002
(Unaudited - Prepared by Management)
Nine Months Nine Months
Ended Ended Inception to
January 31, January 31, January 31,
2002 2001 2002
------------- ------------------- --------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss. . . . . . . . . . . . . . . $ (17,576) $ (12,780) $ (59,496)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Capital contribution - expense . 8,100 8,100 29,700
Increase in accounts payable -
related party . . . . . . . 5,860 85 6,016
Increase in accounts payable . . 3,673 4,021 11,187
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Net cash from operations . . 57 (574) (12,593)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common
stock . . . . . . . . . . . - - 12,650
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- - 12,650
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Net Increase in Cash. . . . . . . . . . . 57 (574) 57
Cash at Beginning of Period . . . . . . . - 567 -
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CASH AT END OF PERIOD . . . . . . . . . . $ 57 $ (7) $ 57
============= =================== ==============
The accompanying notes are an integral part of these unaudited financial
statements
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QUINCY RESOURCES, INC.
(EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2002
(Unaudited - Prepared by Management)
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 POLICIES
Accounting Methods
- -------------------
The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
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The Company has not yet adopted a policy regarding payment of dividends.
Income Taxes
- -------------
On January 31, 2002, the Company had a net operating loss carry forward of
$59,496. The tax benefit of $17,849 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 2022.
Basic Net Income (Loss) Per Share
- --------------------------------------
Basic net income (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding.
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QUINCY RESOURCES, INC.
(EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2002
(Unaudited - Prepared by Management)
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. Costs 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 including accounts payable are
considered by management to be their estimated fair values.
Estimates and Assumptions
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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.
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QUINCY RESOURCES, INC.
(EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JANUARY 31, 2002
(Unaudited - Prepared by Management)
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.
The Company restaked their claims on June 13, 2001, and the claims are now in
good standing until June 13, 2003.
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.
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ITEM 2. PLAN OF OPERATIONS
The Company is anticipating undertaking an exploration program during the summer
of 2002. It is in the process of reviewing its geology report to determine the
extent of its field work. No decision has yet been made by the directors as to
the extent of the work program.
At the present time, Quincy Resources Inc. does not have sufficient funds to
undertake any exploration program on its property and therefore it will have to
determine the best method of raising funds to accomplish its goals. To satisfy
the need for funds the directors must consider whether to advance funds to the
Company personally, obtain additional funding by way of bank loans supported by
personal guarantees by the directors or to issue common shares of the Company.
No decision has been made in this regard at the present time.
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PART 11
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.
By
Adam Smith
President and Director
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