UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2010
Commission file number 333-140839
LUCKY STRIKE EXPLORATIONS INC.
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation or organization)
4100 W. Flamingo Road, Suite 2750
Las Vegas, NV 89103
(Address of principal executive offices, including zip code.)
(702) 922-2700
(Telephone number, including area code)
Michael Noble
4100 W. Flamingo Road, Suite 2750
Las Vegas, NV 89103
(702)922-2700
(Name and Address of Agent for Service)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the last 90 days. YES [X] NO [ ]
Indicate by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of
this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files). YES [ ] NO [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer, "accelerated filer,"
"non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). YES [X] NO [ ]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 5,800,000 shares as of August 5, 2010
ITEM 1. FINANCIAL STATEMENTS
The un-audited financial statements for the quarter ended June 30, 2010
immediately follow.
2
GEORGE STEWART, CPA
316 17TH AVENUE SOUTH
SEATTLE, WASHINGTON 98144
(206) 328-8554 FAX (206) 328-0383
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and
Stockholders of Lucky Strike Explorations, Inc.
I have reviewed the condensed balance sheet of Lucky Strike Explorations, Inc.
(an Exploration Stage Company) as of June 30, 2010, and the related condensed
statements of operations for the three and six months ended June 30, 2010 and
2009 and for the period from December 15, 2006 (inception) to June 30, 2010, and
condensed statements of cash flows for the six months ended June 30, 2010 and
2009 and for the period from December 15, 2006 (inception) to June 30, 2010.
These financial statements are the responsibility of the company's management.
I conducted my review in accordance with the standards of the Public Company
Accounting Oversight Board (United States). A review of interim financial
information consists principally of applying analytical procedures and making
inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with standards
of the Public Company Accounting Oversight Board (United States), the objective
of which is the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, I do not express such an opinion.
Based on my review, I am not aware of any material modifications that should be
made to the accompanying interim financial statements for them to be in
conformity with generally accepted accounting principles in the United States of
America.
I have previously audited, in accordance with auditing standards of the Public
Company Accounting Oversight Board (United States), the balance sheet of Lucky
Strike Explorations, Inc. (an Exploration Stage Company) as of December 31,
2009, and the related statements of operations, retained earnings and cash flows
for the year then ended (not presented herein); and in my report dated February
8, 2010, I expressed a going concern opinion on those financial statements. In
my opinion, the information set forth in the accompanying condensed balance
sheet as of December 31, 2009, is fairly stated, in all material respects, in
relation to the balance sheet from which it has been derived.
/s/ George Stewart, CPA
- -------------------------------
Seattle, Washington
August 3, 2010
3
LUCKY STRIKE EXPLORATIONS, INC.
(An Exploration Stage Company)
Balance Sheets (Unaudited)
- --------------------------------------------------------------------------------
As of As of
June 30, December 31,
2010 2009
-------- --------
ASSETS
CURRENT ASSETS
Cash $ 16,197 $ 27,140
Deposit 4,335 --
-------- --------
TOTAL CURRENT ASSETS 20,532 27,140
-------- --------
$ 20,532 $ 27,140
======== ========
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts Payable $ 1,920 $ 1,740
-------- --------
TOTAL CURRENT LIABILITIES 1,920 1,740
-------- --------
TOTAL LIABILITIES 1,920 1,740
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, ($0.001 par value, 75,000,000 shares
authorized; 5,800,000 shares and shares issued and
outstanding as of June 30, 2010 and December 31, 2009) 5,800 5,800
Additional paid-in capital 68,200 68,200
Deficit accumulated during exploration stage (55,388) (48,600)
-------- --------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 18,612 25,400
-------- --------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) $ 20,532 $ 27,140
======== ========
See Accompanying Notes and Accountant's Report
4
LUCKY STRIKE EXPLORATIONS, INC
(An Exploration Stage Company)
Statements of Operations ( Unaudited)
- --------------------------------------------------------------------------------
December 15, 2006
Three Months Three Months Six Months Six Months (inception)
Ended Ended Ended Ended through
June 30, June 30, June 30, June 30, June 30,
2010 2009 2010 2009 2010
---------- ---------- ---------- --------- ----------
REVENUES
Revenues $ -- $ -- $ -- $ -- $ --
---------- ---------- ---------- ---------- ----------
TOTAL REVENUES -- -- -- -- --
OPERATING COSTS
Mineral Property Expenditures -- -- -- -- 16,328
Administrative Expenses 660 630 1,623 1,450 12,495
Professional Fees 2,165 1,400 5,165 4,300 26,565
---------- ---------- ---------- ---------- ----------
TOTAL OPERATING COSTS 2,825 2,030 6,788 5,750 55,388
---------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) $ (2,825) $ (2,030) $ (6,788) $ (5,750) $ (55,388)
========== ========== ========== ========== ==========
BASIC EARNINGS (LOSS) PER SHARE $ (0.00) $ (0.00) $ (0.00) $ (0.00)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 5,800,000 5,800,000 5,800,000 5,800,000
========== ========== ========== ==========
See Accompanying Notes and Accountant's Report
5
LUCKY STRIKE EXPLORATIONS, INC.
(An Exploration Stage Company)
Statements of Cash Flows (Unaudited)
- --------------------------------------------------------------------------------
December 15, 2006
Six Months Six Months (inception)
Ended Ended through
June 30, June 30, June 30,
2010 2009 2010
-------- -------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (6,788) $ (5,750) $(55,388)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Changes in operating assets and liabilities:
(Increase) decrease in Deposit (4,335) -- (4,335)
Increase (Decrease) in Accounts Payable 180 (1,758) 1,920
-------- -------- --------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (10,943) (7,507) (57,803)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of equipment -- -- --
-------- -------- --------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES -- -- --
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock -- -- 74,000
-------- -------- --------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES -- -- 74,000
-------- -------- --------
NET INCREASE (DECREASE) IN CASH (10,943) (7,507) 16,197
CASH AT BEGINNING OF PERIOD 27,140 37,313 --
-------- -------- --------
CASH AT END OF PERIOD $ 16,197 $ 29,805 $ 16,197
======== ======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during year for :
Interest $ -- $ -- $ --
======== ======== ========
Income Taxes $ -- $ -- $ --
======== ======== ========
See Accompanying Notes and Accountant's Report
6
LUCKY STRIKE EXPLORATIONS INC.
(An Exploration Stage Company)
Notes to Financial Statements
June 30, 2010
NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS
Lucky Strike Explorations Inc. (the Company) was incorporated under the laws of
the State of Nevada on December 15, 2006. The Company was formed to engage in
the acquisition, exploration and development of natural resource properties.
The Company is in the exploration stage. Its activities to date have been
limited to capital formation, organization and development of its business plan.
The Company has performed limited exploration work and is currently seeking new
mining properties for exploration.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Company's financial statements are prepared using the accrual method of
accounting. The Company has elected a December 31, year-end.
BASIC EARNINGS (LOSS) PER SHARE
ASC No. 260, "Earnings Per Share", specifies the computation, presentation and
disclosure requirements for earnings (loss) per share for entities with publicly
held common stock. The Company has adopted the provisions of ASC No. 260.
Basic net earnings (loss) per share amounts is computed by dividing the net
earnings (loss) by the weighted average number of common shares outstanding.
Diluted earnings (loss) per share are the same as basic earnings (loss) per
share due to the lack of dilutive items in the Company.
CASH EQUIVALENTS
The Company considers all highly liquid investments purchased with an original
maturity of three months or less to be cash equivalents.
USE OF ESTIMATES AND ASSUMPTIONS
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. In accordance with ASC No. 250
all adjustments are normal and recurring.
7
LUCKY STRIKE EXPLORATIONS INC.
(An Exploration Stage Company)
Notes to Financial Statements
June 30, 2010
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INCOME TAXES
Income taxes are provided in accordance with ASC No. 740, Accounting for Income
Taxes. A deferred tax asset or liability is recorded for all temporary
differences between financial and tax reporting and net operating loss
carryforwards. Deferred tax expense (benefit) results from the net change during
the year of deferred tax assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion of all of the deferred
tax assets will be realized. Deferred tax assets and liabilities are adjusted
for the effects of changes in tax laws and rates on the date of enactment.
REVENUE
The Company records revenue on the accrual basis when all goods and services
have been performed and delivered, the amounts are readily determinable, and
collection is reasonably assured. The Company has not generated any revenue
since its inception.
ADVERTISING
The Company will expense its advertising when incurred. There has been no
advertising since inception.
RECENT ACCOUNTING PRONOUNCEMENTS
The Company has evaluated all the recent accounting pronouncements through the
date the financial statements were issued and filed with the Securities and
Exchange Commission and believe that none of them will have a material effect on
the company's financial statements.
NOTE 3. GOING CONCERN
The accompanying financial statements are presented on a going concern basis.
The Company had no operations during the period from December 15, 2006 (date of
inception) to June 30, 2010 and generated a net loss of $55,388. This condition
raises substantial doubt about the Company's ability to continue as a going
concern. Because the Company is currently in the exploration stage and has
minimal expenses, management believes that the company's current cash and cash
equivalents of $20,532 is sufficient to cover the expenses they will incur
during the next twelve months in a limited operations scenario or until they
raise additional funding.
8
LUCKY STRIKE EXPLORATIONS INC.
(An Exploration Stage Company)
Notes to Financial Statements
June 30, 2010
NOTE 4. WARRANTS AND OPTIONS
There are no warrants or options outstanding to acquire any additional shares of
common.
NOTE 5. RELATED PARTY TRANSACTIONS
The officers and directors of the Company may, in the future, become involved in
other business opportunities as they become available, they may face a conflict
in selecting between the Company and their other business opportunities. The
Company has not formulated a policy for the resolution of such conflicts.
NOTE 6. INCOME TAXES
As of June 30,
2010
--------
Deferred tax assets:
Net operating tax carryforwards $ 55,388
Tax rate 34%
--------
Gross deferred tax assets 18,832
Valuation allowance (18,832)
--------
Net deferred tax assets $ 0
========
Realization of deferred tax assets is dependent upon sufficient future taxable
income during the period that deductible temporary differences and carryforwards
are expected to be available to reduce taxable income. As the achievement of
required future taxable income is uncertain, the Company recorded a valuation
allowance.
NOTE 7. NET OPERATING LOSSES
As of June 30, 2010, the Company has a net operating loss carryforward of
approximately $55,388. Net operating loss carryforwards expires twenty years
from the date the loss was incurred.
NOTE 8. STOCK TRANSACTIONS
Transactions, other than employees' stock issuance, are in accordance with ASC
No. 505. Thus issuances shall be accounted for based on the fair value of the
consideration received. Transactions with employees' stock issuance are in
accordance with ASC No. 718. These issuances shall be accounted for based on the
fair value of the consideration received or the fair value of the equity
instruments issued, or whichever is more readily determinable.
9
LUCKY STRIKE EXPLORATIONS INC.
(An Exploration Stage Company)
Notes to Financial Statements
June 30, 2010
NOTE 8. STOCK TRANSACTIONS (CONTINUED)
On December 15, 2006, the Company issued a total of 2,000,000 shares of common
stock to Michael Noble for cash in the amount of $0.005 per share for a total of
$10,000.
On February 23, 2007, the Company issued a total of 800,000 shares of common
stock to Michael Noble for cash in the amount of $0.005 per share for a total of
$4,000.
On April 5, 2007, the Company issued a total of 3,000,000 shares of common stock
from its registered SB-2 offering to 27 shareholders at $.02 per share to raise
an aggregate amount of $60,000.
As of June 30, 2010 the Company had 5,800,000 shares of common stock issued and
outstanding.
NOTE 9. STOCKHOLDERS' EQUITY
The stockholders' equity section of the Company contains the following classes
of capital stock as of June 30, 2010:
Common stock, $ 0.001 par value: 75,000,000 shares authorized; 5,800,000 shares
issued and outstanding.
NOTE 10. SUBSEQUENT EVENTS
The Company evaluated all events or transactions that occurred after June 30,
2010 up through date the Company issued these financial statements. During this
period, the Company did not have any material recognizable subsequent events.
10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
FORWARD LOOKING STATEMENTS
This report contains forward-looking statements that involve risk and
uncertainties. We use words such as "anticipate", "believe", "plan", "expect",
"future", "intend", and similar expressions to identify such forward-looking
statements. Investors should be aware that all forward-looking statements
contained within this report are good faith estimates of management as of the
date of this report and actual results may differ materially from historical
results or our predictions of future results.
RESULTS OF OPERATIONS
We are still in our exploration stage and have generated no revenues to date.
We incurred operating expenses of $2,825 for the three months ended June 30,
2010. These expenses consisted of general operating expenses and professional
fees incurred in connection with the day to day operation of our business and
the preparation and filing of our required reports with the U.S. Securities and
Exchange Commission. Operating expenses for the same period ending June 30, 2009
were $2,030.
Our net loss from inception (December 15, 2006) through June 30, 2010 was
$55,388.
We have sold $74,000 in equity securities since inception, $14,000 from the sale
of 2,800,000 shares of stock to our officer and director and $60,000 from the
sale of 3,000,000 shares registered pursuant to our SB-2 Registration Statement
which became effective on March 12, 2007.
The following table provides selected financial data about our company for the
quarter ended June 30, 2010.
Balance Sheet Data: 6/30/10
------------------- -------
Cash $16,197
Total assets $20,532
Total liabilities $ 1,920
Shareholders' equity $18,612
LIQUIDITY AND CAPITAL RESOURCES
Our cash in the bank at June 30, 2010 was $16,197 with $1,920 in outstanding
liabilities. Management believes our cash on hand is sufficient to fund our
operations over the next twelve months.
11
PLAN OF OPERATION
The consulting geologist was paid $8,500 for Phase 1 of the exploration program
on the claims. He completed the field work and provided the company with his
recommendations. The first phase of exploration, which included detailed
prospecting and soil sampling, identified a minimal number of anomalies.
Management decided the results did not warrant further exploration and did not
renew the claim. The company is now investigating other properties to secure for
exploration or other available business opportunities to better utilize our
remaining cash resources.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to investors.
ITEM 4. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Under the supervision and with the participation of our management, including
our principal executive officer and the principal financial officer, we have
conducted an evaluation of the effectiveness of the design and operation of our
disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)
under the Securities and Exchange Act of 1934, as of the end of the period
covered by this report. Based on this evaluation, our principal executive
officer and principal financial officer concluded as of the evaluation date that
our disclosure controls and procedures were effective such that the material
information required to be included in our Securities and Exchange Commission
reports is accumulated and communicated to our management, including our
principal executive and financial officer, recorded, processed, summarized and
reported within the time periods specified in SEC rules and forms relating to
our company, particularly during the period when this report was being prepared.
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING
There have been no changes in our internal control over financial reporting that
occurred during the last fiscal quarter ended June 30, 2010 that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.
ITEM 5. OTHER INFORMATION
None.
12
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS
The following exhibits are included with this quarterly filing:
Exhibit No. Description
- ----------- -----------
3.1 Articles of Incorporation*
3.2 Bylaws*
31 Sec. 302 Certification of Principal Executive & Financial Officer
32 Sec. 906 Certification of Principal Executive & Financial Officer
- ----------
* Document is incorporated by reference and can be found in its entirety
in our Registration Statement on Form SB-2, SEC File Number
333-140839, at the Securities and Exchange Commission website at
www.sec.gov.
13
SIGNATURES
In accordance with the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe it meets all of
the requirements for filing Form 10-Q and authorized this report to be signed on
its behalf by the undersigned, in the city of Las Vegas, state of Nevada, on
August 5, 2010.
Lucky Strike Explorations Inc.
/s/ Michael Noble
----------------------------------
By: Michael Noble
(Principal Executive Officer)
In accordance with the requirements of the Securities Act of 1933, this
registration statement was signed by the following person in the capacities and
date stated.
/s/ Michael Noble August 5, 2010
- ------------------------------------------------- --------------
Michael Noble, President & Director Date
(Principal Executive Officer, Principal Financial
Officer, Principal Accounting Officer)
/s/ Christian Jean Prieur August 5, 2010
- ------------------------------------------------- --------------
Christian Jean Prieur, Director Date
14