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 AUGUST 31, 2002
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RIPPED CANADA ARTISTS INC.
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ONTARIO
390 BAY STREET - SUITE 1620
TORONTO, ONTARIO M5H 2Y2
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 416.368.6161
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 AUGUST 31, 2002 WAS 6,474,378.
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Financial Statements of
CONDOR GOLD CORP.
(FORMERLY: RIPPED CANADA ARTISTS INC.)
Nine months ended August 31, 2002
(Unaudited - Prepared by Management)
CONDOR GOLD CORP.
(Formerly: Ripped Canada Artists Inc.)
Balance Sheets
(Prepared by Management)
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August 31, November 30,
2002 2001
(Unaudited) (Audited)
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Assets
Current assets:
Cash $ 70 $ 3,150
Accounts receivable 3,012 3,012
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3,082 6,162
Other
Organization costs 1,572 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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$ 670,448 $ 675,995
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Liabilities and Shareholder's Equity
Current liabilities:
Accounts payable and accrued liabilities $ 58,799 $ 48,299
Loans and advances from related parties 32,101 171,714
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90,900 220,013
Shareholders' equity
Share capital 1,456,785 1,285,071
Deficit (877,237) (829,089)
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579,548 455,982
$ 670,448 $ 675,995
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CONDOR GOLD CORP.
(Formerly: Ripped Canada Artists Inc.)
Statements of Operations and Deficit
Nine months ended August 31, 2002 and 2001
(Unaudited - Prepared by Management)
2002 2001
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3 Months Year to Date 3 Months Year to Date
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Revenue
Revenue from disc sales $ 514 $ 23,083 $ 6,150 $ 6,150
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Expenses:
Abandoned mining claims - - 20,949 260,476
Management fees 15,000 45,000 33,000 45,000
Consulting fees - 10,500 12,765 12,765
Office, general and administration 371 3,012 (4,692) 9,643
Occupancy costs - 4,500 2,250 7,000
Professional fees - - - 2,300
Shareholder information 267 1,594 - -
Listing and transfer agents fees - 250 1,486 3,739
Amortization 2,125 6,375 5,775 6,375
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17,763 71,231 71,533 347,297
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Income (loss) for the period (17,249) (48,148) (65,383) (341,148)
Deficit, beginning of period (859,988) (829,089) (752,086) (476,321)
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Deficit, end of period $ (877,237) $ (877,237) (817,469) (817,469)
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Loss per share $ (0.002) $ (0.007) $ (0.016) $ (0.079)
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CONDOR GOLD CORP.
(Formerly: Ripped Canada Artists Inc.)
Statements of Cash Flows
Nine months ended August 31, 2002 and 2001
(Unaudited - Prepared by Management)
2002 2001
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3 Months Year to Date 3 Months Year to Date
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Cash provided by (used) in:
Operating activities:
Loss for the period $ (17,249) $ (48,148) $ (65,383) $ (341,148)
Items not involving cash:
Amortization 2,125 6,375 5,775 6,375
Write down of mining interests - - 20,949 260,476
Changes in non-cash operating
working capital balances - 10,500 (12,361) (11,649)
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(15,124) (31,273) (51,020) (74,297)
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Financing activities:
Loans and advances from related parties
(156,614) (139,613) 50,200 59,958
Issue of common shares 171,714 171,714 6,500 34,625
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15,100 32,101 56,700 94,583
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Investing activities:
Investment in film productions - (3,908) 4,978) (7,641)
Investment in marketable securities - - - (45,000)
Reduction in oil and gas assets - - - 45,000
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- (3,908) (4,978) (7,641)
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Increase (decrease) in cash (24) (3,080) 702 996
Cash, beginning of period 94 3,150 1,059 765
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Cash, end of period $ 70 $ 70 $ 1,761 $ 1,761
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CONDOR GOLD CORP.
(Formerly: Ripped Canada Artists Inc.)
Notes to Financial Statements
Nine months ended August 31, 2002 and 2001
(Unaudited - Prepared by Management)
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1. Accounting policies:
The enclosed unaudited financial statements for the nine months ended
August 31, 2002 and 2001 conform with generally accepted accounting
principals in Canada for interim financial reporting. However, the
unaudited financial statements for the nine months ended August 31, 2002
and 2001 do not conform in all respects to the disclosure and information
that is required for annual financial statements. For further information,
see the Corporation's November 30, 2001 audited financial statements. The
accounting policies and methods followed in preparing these financial
statements are those used by Condor Gold Corp. (the "Corporation") as set
out in the November 30, 2001 audited financial statements, except for the
following:
Stock Option Compensation
The Company has adopted section 3870 of the CICA Handbook from the Canadian
Institute of Chartered Accountants for stock-based compensation and other
stock-based payments. This section required the Company to provide pro
forma earnings and earnings per share, as if the fair market based
accounting had been used to account for stock-based compensation costs, if
the fair market based accounting method was not presented in the statement
of operations
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 August 31, 2002 are not indicative of the
results that may be expected for the full year ended November 30, 2002.
2. Share capital:
(a) Authorized:
Unlimited number of common shares
(b) Issued:
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Number
Amount of shares
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Balance, November 30, 2001 4,757,238 $ 1,285,071
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Issued on settlement of debts 1,717,140 171,714
Balance, August 31, 2002 6,474,378 $ 1,456,785
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CONDOR GOLD CORP.
(Formerly: Ripped Canada Artists Inc.)
Notes to Financial Statements
Nine months ended August 31, 2002 and 2001
(Unaudited - Prepared by Management)
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2. Share capital (continued):
(c) Stock options:
At August 31, 2002 there were employee stock options outstanding to
purchase 65,000 common shares at prices between $0.25 and $0.35 per
share until March 27, 2006.
3. Income taxes:
At August 31, 2002 the Corporation's income tax expense was nil. No
benefit related to available non-capital loss carry forwards has been
recognized in these financial statements.
The future income tax assets or liabilities that may result from
differences in tax values and accounting values have not been
reflected in these financial statements.
5. Related party transactions:
Related party transactions not disclosed elsewhere in these financial
statements are as follows:
(a) During the period ended August 31, 2002 the Company paid $ 45,000
(2001: $ 36,000) for management, consulting, rent and administrative
services to companies related by virtue of common directors.
(b) The loans and advances from related parties are interest free and have
no fixed terms of repayment.
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 the
undersigned there unto duly authorized.
Condor Gold Corp.
/s/ Alexander Stewart
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Name: Alexander Stewart
Title: Chairman and C.E.O
/s/ Stephen Stewart
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Name: Stephen Stewart
Title: C.F.O and V.P.
Dated: October 15, 2002