SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED FEBRUARY 28, 2002
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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 FEBRUARY 28, 2002 WAS 4,757,238.
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Ripped Canada Artists Inc.
Financial Statements
(Unaudited)
February 28, 2002
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Ripped Canada Artists Inc.
Balance Sheet
ASSETS
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Three Months Ended Year Ended
February 28, November 30,
2002 2001
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CURRENT (Unaudited) (Audited)
Cash $ 421 $ 3,150
Accounts receivable 3,012 3,012
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3,433 6,162
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OTHER
Organization costs 5,822 7,947
Investment in private film production company 100,000 100,000
Investment in TV and film productions 520,794 516,886
Marketable securities 45,000 45,000
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671,616 669,833
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$ 675,049 $ 675,995
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LIABILITIES
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CURRENT
Accounts payable and accrued liabilities $ 58,799 $ 48,299
Loans and advances from related parties 188,965 171,714
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Total Liabilities 247,764 220,013
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SHAREHOLDERS EQUITY
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SHARE CAPITAL (Note 2) 1,285,071 1,285,071
DEFICIT (Page 3) (857,786) (829,089)
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427,285 455,982
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$ 675,049 $ 675,995
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See accompanying notes unaudited to financial statements
Ripped Canada Artists Inc.
Statement of Loss and Deficit
Three Months Three Months
Ended Ended
February 28 February 28,
2002 2001
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(Unaudited) (Unaudited)
Income
Revenue from disk sales $ 4,722 $ -
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Office, general and administrative
Management fees, salaries and benefits $ 25,500 $ 6,000
Legal and audit - 2,300
Office, general and administration 1,968 6,133
Rent 2,250 2,250
Shareholder information 1,327
Transfer agent's fees 250 900
Amortization 2,125 300
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33,420 17,883
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Loss before the under noted item (28,698) (17,882)
Write down of mining claims and deferred exploration expenditures - (239,527)
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Net Loss for the Period (28,698) (257,410)
Deficit, Beginning of Period (829,089) (362.321)
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DEFICIT, END OF PERIOD $ (857,787) $ (733,731)
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NET LOSS PER SHARE $ (0.08) $ (0.08)
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See accompanying notes to unaudited financial statements
Ripped Canada Artists Inc.
Statement of Changes in Cash Flow
Three Months Three Months
Ended Ended
February 28 February 28,
2002 2001
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(Unaudited) (Unaudited)
Cash provided by (Used in):
Operating Activities
Net loss for the period $ (28,698) $ (257,410)
Add: item not affecting cash:
Amortization 2,125 300
Write down of mining claims and deferred exploration expenditures - 239,527
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(21,253) (17,583)
Changes in non-cash operating working capital balances 5,181 (5,700)
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(Used in) Operating Activities (16,072) (23,283)
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Financing Activities
Issuance of common shares - 22,125
Loans and advances from related parties 17,251 1,225
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Provided by Financing Activities 17,251 23,350
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Investing Activities
Marketable securities - (45,000)
Oil and gas interests - 45,000
Investment in film production (3,908) (750)
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(Used in) Investing Activities (3,908) (750)
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Decrease in Cash (2,729) (683)
Cash, beginning of period 3,150 765
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CASH, END OF PERIOD $ 421 $ 82
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See accompanying notes to unaudited financial statements
Ripped Canada
Artists Inc.
Notes to Financial Statements
(Unaudited)
February 28,2002
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, 2001 audited financial statements. However, the
unaudited financial statements for the three months ended February 28, 2002
do not conform in all respects to the disclosure and information that is
required for annual financial statements. For further information, see the
Company's November 30, 2001 audited financial statements.
The enclosed unaudited financial statements for the three months ended
February 28, 2002 conform with 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 three months ended February 28, 2002 is not indicative of
the results that may be expected for the full year ended November 30, 2002.
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, 2001 4,757,238 $ 1,285,071
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Balance: February 28, 2002 4,757,238 $ 1,285,071
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Officers, directors and employee stock option plan
As at February 28, 2002, stock options were outstanding to purchase up to
65,000 at prices between $0.25 per share and $0.35 per share until March
27, 2006.
3. Income taxes
At February 28, 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.
4 United States Accounting Principles
The financial statements presented are in accordance with Generally
Accepted Accounting Principals ("GAAP") in Canada, which do not present any
material differences with GAAP as it applies in the United States of
America, except that they are expressed in Canadian Dollars.