SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-1Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2001
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RIPPED CANADA ARTISTS INC.
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ONTARIO
56 TEMPERANCE STREET
6TH FLOOR
TORONTO, ONTARIO M5H 3V5
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 416.363.2114
INDICATE BY CHECK MARK 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), AND (2) HAS BEEN SUBJECT TO FILING REQUIREMENTS FOR THE
PAST 90 DAYS.
YES X NO
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THE NUMBER OF SHARES OUTSTANDING OF REGISTRANT'S COMMON STOCK, PAR VALUE $0.01,
ON OCTOBER 31, 2001 WAS 4,407,238.
Ripped Canada Artists Inc.
(Formerly: Findore Gold Resources Ltd.)
Financial Statements
(Prepared by Management)
August 31, 2001
Page
Balance Sheet 2
Statement of Loss and Deficit 3
Statement of Cash Flows 3
Notes to Financial Statements 4 - 5
1
RIPPED CANADA ARTISTS INC.
INTERIM BALANCE SHEETS
August 31st, 2001
(Prepared by Management)
Assets
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August November
31 30
2001 2000
=========== ===========
Current assets:
Cash $ 1,761 $ 765
Marketable securities (Note 4) 45,000 --
Accounts receivable 37 337
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46,798 1,102
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Organization costs $ 10,072 $ 16,447
Investment in private company 75,000 75,000
Investment in film and audio productions 423,702 416,061
Oil and gas assets -- 45,000
Mining claims and deferred exploration expenditures -- 254,527
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508,774 807,035
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$ 555,572 $ 808,137
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Liabilities
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Current liabilities:
Accounts payable and accrued liabilities $ 38,113 $ 44,113
Loans and advances from related parties 140,232 80,274
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Total Liabilities 178,345 124,387
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Shareholders Equity
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SHARE CAPITAL (Note 2) 1,194,696 1,160,071
DEFICIT (Page 3) (817,469) (476,321)
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377,227 683,750
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$ 555,572 $ 808,137
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See accompanying notes to financial statements
2
RIPPED CANADA ARTISTS INC.
STATEMENTS OF LOSS AND DEFICIT
3rd Quarter Ended August 31st, 2001
(Prepared by Management - Unaudited)
2001 2000
3 Month Year to 3 Month Year to
Period Date Period Date
INCOME
Revenue from disk sales $ 6,150 $ 6,150 $ -- $ --
EXPENSES
Abandoned mining claims 20,949 260,476 -- --
Management fees 33,000 45,000 18,000 18,000
Consulting fees 12,765 12,765 5,000 5,000
Office, general and administration (4,692) 9,643 2,734 4,960
Occupancy costs 2,250 7,000 3,750 3,750
Legal and audit -- 2.300 2,700 3,200
Listing fees & transfer agent fees 1,486 3,739 3,800 3,800
Amortization 5,775 6,375 3,375 3,375
71,533 347,297 39,359 42,085
Net loss for the period (65,383) (341,148) (39,359) (42,085)
Deficit, Beginning of Period (752,086) (476,321) (129,185) (362,323)
DEFICIT, END OF PERIOD (817,469) (817,469) (168,544) (404,408)
NET LOSS PER SHARE $ (0.016) $ (0.079) $ (0.012) $ (0.013)
STATEMENTS OF CASH FLOWS
3rd. Quarter Ended August 31st., 2001
(Prepared by Management - Unaudited)
2001 2000
3 Month Year to 3 Month Year to
Period Date Period Date
CASH PROVIDED BY (USED IN):
Operating Activities
Net loss for the period $ (65,383) $(341,148) $ (39,359) $ (42,085)
Add (Deduct) item not affecting
Amortization 5,775 6,375 3,375 3,375
Write down of mining claims and development
expenditures 20,949 260,476 -- --
(38,659) (74,297) (35,984) (38,710)
Changes in non-cash operating working capital
balances (12,361) (11,649) (1,221) (1,911)
(51,020) (85,946) (37,205 (40,621)
Financing Activities
Issuance of common shares 6,500 34,625 36,000 36,000
Loans and advances from related parties 50,200 59,958 27,820 29,070
56,700 94,583 63,820 65,070
Investing Activities
Investment in film production (4,978) (7,641) (22,305) (22,305)
Investment in marketable securities -- (45,000) -- --
Reduction in oil and gas assets -- 45,000 -- --
(4,978) (7,641) (22,305) (22,035)
INCREASE (DECREASE) IN CASH 702 996 4,310 2,144
CASH, BEGINNING OF PERIOD 1,059 765 537 2,703
CASH, END OF PERIOD 1,761 1,761 4,847 4,847
3
Ripped Canada Artists Inc.
Notes to Financial Statements
(Prepared by Management)
August 31, 2001
1. Summary of Significant Accounting Policies
The accompanying policies and methods followed in preparing these financial
statements are those used by Ripped Canada Artists Inc. (the "Company") as
set out in the November 30, 2000 audited financial statements. However, the
unaudited financial statements for the nine months ended August 31, 2001 do
not conform in all respects to the disclosures and information that is
required for annual financial statements. For further information, see the
Company's annual November 30, 2000 audited financial statements.
The enclosed unaudited financial statements for the nine months ended
August 31, 2001 conform to generally accepted accounting principles in
Canada for financial reporting for interim financial statements.
In the opinion of management, all adjustments considered necessary for fair
presentation have been included in these financial statements. Operating
results for the nine months ended August 31, 2001 is not indicative of the
results that may be expected for the full year ended November 30, 2000.
2. Share Capital
a) Authorized- An unlimited number of Common shares
- An unlimited number of Class A shares, without par value,
non-voting
- An unlimited number of Class B shares, without par value,
non-voting
b) Issued: Number $
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Common Shares
Balance, November 30, 2000 3,069,738 1,160,071
Issued on acquisition of film rights 300,000 6,000
Issued on exercise of employee stock options 937,500 28,125
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Issued in period 1,237,500 34,625
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Balance: August 31, 2001 4,307,238 $ 1,194,696
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c) Employee stock option plan
As at August 31, 2001 there were stock options outstanding to employee's
and officers of 217,500 which entitles the holder to acquire common shares
as follows:
- 125,000 at $0.50 per share until October 16, 2005
- 27,500 at $ 0.25 per share until November 24, 2002
- 30,000 at $0.35 per share until March 27, 2006
- 20,000 at $0.35 per share until April 23, 2003 and;
- 15,000 at $ 0.25 per share until June 19, 2003
4
Ripped Canada Artists Inc.
Notes to Financial Statements
(Prepared by Management)
August 31, 2001
3. Income taxes
As at August 31, 2001, the Company's income tax expense was nil. No benefit
has been recognized in these financial statements.
The future income tax assets and liabilities that may result from
differences in tax values and accounting values have not been reflected in
these financial statements.
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