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 MAY 31, 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 MAY 31, 2002 WAS 4,757,238.
Ripped Canada Artists Inc.
Financial Statements
(Prepared by Management)
May 31, 2002
Page
Balance Sheet 2
Statement of Loss and Deficit 3
Statement of Cash Flows 3
Notes to Financial Statements 4
RIPPED CANADA ARTISTS INC.
INTERIM BALANCE SHEETS
May 31st, 2002
(Prepared by Management)
Assets
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May November
31 30
2002 2001
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Current assets:
Cash $ 94 $ 3,150
Accounts receivable 3,012 3,012
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3,106 6,162
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Organization costs $ 3,697 $ 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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669,491 669,833
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$ 672,597 $ 675,995
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Liabilities
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Current liabilities:
Accounts payable and accrued liabilities $ 58,799 $ 48,299
Loans and advances from related parties 188,715 171,714
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Total Liabilities 247,514 220,013
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Shareholders Equity
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SHARE CAPITAL (Note 2) 1,285,071 1,285,071
DEFICIT (Page 3) (859,988) (829,089)
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425,083 455,982
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$ 672,597 $ 675,995
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See accompanying notes to financial statements
2
RIPPED CANADA ARTISTS INC.
STATEMENTS OF LOSS AND DEFICIT
2nd. Quarter Ended May 31st, 2002
(Prepared by Management - Unaudited)
2002 2001
3 Month 3 Month
Period Year to Date Period Year to Date
INCOME
Revenue from disk sales $ 17,847 $ 22,569 $ -- $ --
EXPENSES
Abandoned mining claims -- -- -- 239,527
Management fees 15,000 30,000 15,000 21,000
Consulting fees -- 10,500 -- --
Office, general and administration 673 2,641 8,202 14,335
Occupancy costs 2,250 4,500 2,500 4,750
Legal and audit -- -- -- 2,300
Shareholder information -- 1,327
Listing fees & transfer agent fees -- 250 1,353 2,253
Amortization 2,125 4,250 300 600
20,048 53,468 27,355 284,765
Net loss for the period (2,201) (30,899) (27,355) (284,765)
Deficit, Beginning of Period (857,787) (829,089) (733,731) (476,321)
DEFICIT, END OF PERIOD (859,988) (859,988) (761,086) (761,086)
NET LOSS PER SHARE $ (0.000) $ (0.065) $ (0.006) $ (0.066)
STATEMENTS OF CASH FLOWS
2nd. Quarter Ended May 31st., 2002
(Prepared by Management - Unaudited)
2002 2001
3 Month 3 Month
Period Year to Date Period Year to Date
CASH PROVIDED BY (USED IN):
Operating Activities
Net loss for the period $ (2,201) $ (30,899) $ (27,355) $(284,765)
Add (Deduct) item not affecting
Amortization 2,125 4,250 300 600
Write down of mining claims and development
expenditures -- -- -- 239,527
(76) (26,649) (27,055) (44,638)
Changes in non-cash operating working capital
balances 4,977 10,500 (29,589) (35,289)
4,901 (16,149) (56,644) (79,827)
Financing Activities
Issuance of common shares -- -- 6,000 28,125
Loans and advances from related parties (250) 17,001 8,533 9,758
(250) 17,001 14,533 37,883
Investing Activities
Investment in film production (4,978) (3,908) (1,913) (2,663)
Investment in marketable securities -- (3,908) --
Reduction in oil and gas assets (4,978) -- 45,000 45,000
(4,978) () 43,087 42,337
INCREASE (DECREASE) IN CASH (327) (3,056) 976 293
CASH, BEGINNING OF PERIOD 421 3,150 82 765
CASH, END OF PERIOD 94 94 1,058 1,058
See accompanying Unaudited notes to financial statements
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Ripped Canada Artists
(Formerly: Findore Gold Resources Ltd.)
Notes to Financial Statements
November 30, 2000
Ripped Canada Artists Inc.
Notes to Financial Statements
(Unaudited)
May 31, 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 six months ended May 31, 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 six months ended May
31, 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 six months ended May 31, 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: May 31, 2002 4,757,238 $ 1,285,071
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Officers, directors and employee stock option plan
As at May 31, 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 May 31, 2002, 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.
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