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, 2012
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from __________ to __________
Commission File Number: 333-139482
VIKING MINERALS INC.
(Exact name of Registrant as specified in its charter)
Nevada 98-0492900
(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
7558 W. Thunderbird Ste. 486
Peoria, AZ, 85381 Telephone: 602-885-9792
(Address of principal executive offices) (Registrant's telephone number,
including area code)
Former Name, Address and Fiscal Year, If Changed Since Last Report
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 past 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 [X] NO [ ]
We had a total of 108,000 shares of common stock issued and outstanding at
August 14, 2012.
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
Transitional Small Business Disclosure Format: Yes [ ] No [X]
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The interim financial statements included herein are unaudited but reflect, in
management's opinion, all adjustments, consisting only of normal recurring
adjustments that are necessary for a fair presentation of our financial position
and the results of our operations for the interim periods presented. Because of
the nature of our business, the results of operations for the three months ended
June 30, 2012 are not necessarily indicative of the results that may be expected
for the full fiscal year.
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VIKING MINERALS INC.
(A Pre-Exploration Stage Company)
Balance Sheets
(Stated in US Dollars)
As of As of
June 30, 2012 March 31, 2012
------------- --------------
(Unaudited) (Audited)
Assets
Current assets
Cash $ -- $ --
--------- ---------
Total current assets -- --
Total Assets $ -- $ --
========= =========
Liabilities
Current liabilities
Accounts payable $ 51,748 $ 56,099
Advances from related party 12,071 7,106
Advance 25,000 25,000
--------- ---------
Total current liabilities 88,819 88,205
Long Term Liabilities -- --
Total Liabilities 88,819 88,205
--------- ---------
Stockholders' Deficiency
Common Stock, $0.001 par value
400,000,00 Common Shares Authorized
108,000 Shares Issued and Outstanding 108 108
Additional paid-in capital 27,392 27,392
Deficit accumuated during exploration period (116,319) (115,705)
--------- ---------
Total stockholders deficit (88,819) (88,205)
--------- ---------
Total liabilites and stockholders equity $ -- $ --
========= =========
The accompanying notes are an integral part of these financial statements.
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VIKING MINERALS INC.
(A Pre-Exploration Stage Company)
Statements of Operations
(Stated in US Dollars)
(Unaudited)
For the For the
three month three month From inception
period ended period ended (March 24, 2006) to
June 30, 2012 June 30, 2011 June 30, 2012
------------- ------------- -------------
Revenue $ -- $ -- $ --
--------- --------- ---------
Expenses
Recognition of an Impairment Loss
(Property Expenses) -- -- 50,624
Accounting & Professional Fees 614 11,282 65,695
--------- --------- ---------
Total Expenses 614 11,282 116,319
--------- --------- ---------
Net Income (Loss) $ (614) $ (11,282)
========= =========
Basic & Diluted (Loss) per Common Share $ (0.01) $ (0.03)
--------- ---------
Weighted Average Number of Common Shares 108,000 331,918
The accompanying notes are an integral part of these financial statements.
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VIKING MINERALS INC.
(A Pre-Exploration
Stage Company)
Statements of Cash Flows
(Stated in US Dollars)
(Unaudited)
For the For the
three month three month From inception
period ended period ended (March 24, 2006) to
June 30, 2012 June 30, 2011 June 30, 2012
------------- ------------- -------------
OPERATING ACTIVITIES
Net income (loss) $ (614) $ (11,282) $(116,319)
Recognition of an Impairment Loss
(Mineral Claims) -- -- 50,624
Stock issued for service -- -- 7,500
Accounts payable (4,351) 11,282 51,748
--------- --------- ---------
NET CASH USED IN OPERATING ACTIVITIES (4,965) -- (6,447)
INVESTING ACTIVITES
Purchase of mineral claim -- -- (50,624)
--------- --------- ---------
NET CASH USED IN INVESTING ACTIVITIES -- -- (50,624)
FINANCING ACTIVITIES
Advances -- -- 25,000
Advances from related party 4,965 -- 12,071
Common stock issued for cash -- -- 20,000
--------- --------- ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES 4,965 -- 57,071
Cash at beginning of period -- -- --
CASH AT END OF PERIOD $ -- $ -- $ --
========= ========= =========
Cash Paid For:
Interest $ -- $ -- $ --
========= ========= =========
Income Tax $ -- $ -- $ --
========= ========= =========
SUPPLEMENTAL DISCLOSURE OF NON-CASH
FINANCING ACTIVITIES:
Stock issued for services $ -- $ -- $ 7,500
========= ========= =========
The accompanying notes are an integral part of these financial statements.
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VIKING MINERALS INC.
A Pre-Exploration Stage Company
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2012
(Stated in US Dollars)
(Unaudited)
1. ORGANIZATION
The company was incorporated under the laws of the state of Nevada on March 24,
2006 with 75,000,000 authorized common shares with a par value of $0.001. In
January 2011 the company filed an amendment with the state of Nevada to increase
the authorized shares to 400,000,000 shares of common stock at a par value of
$0.001 per share.
The company was organized for the purpose of acquiring and developing mineral
claims and is in the pre-exploration stage.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTING METHODS
The company recognizes income and expenses based on the accrual method of
accounting.
DIVIDEND POLICY
The company has not yet adapted a policy regarding payment of dividends.
INCOME TAX
The company utilizes the liability method of accounting for income taxes. Under
the liability method deferred tax assets and liabilities are determined based on
the differences between financial reporting and the tax bases of the assets and
liabilities and are measured using the enacted tax rates and laws that will be
in effect, when the differences are expected to be reverse. An allowance against
deferred tax assets is recorded, when it is more likely than not that such tax
benefits will not be realized.
On June 30, 2012, the company had a net loss available for carryforward of
$116,319. The income tax benefit of approximately $40,000 from the carryforward
has been fully offset by a valuation reserve because the use of the future tax
benefit is doubtful since the company has been unable to project a reliable
estimated net income for the future. The net operating loss will begin to expire
in 2026.
FINANCIAL AND CONCENTRATIONS RISK
The company has no financial and concentrations risks.
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding. Diluted net income (loss) per
share amounts are computed using the weighted average number of common and
common equivalent shares outstanding as if shares had been issued on the
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exercise of the common share rights unless the exercise becomes antidulutive and
then only the basic per share amounts are shown in the report.
STATEMENT OF CASH FLOWS
For the purposes of the statement of cash flows, the Company considers all
highly liquid investments with a maturity of three months or less to be cash
equivalents.
REVENUE RECOGNITION
Revenue is recognized on the sale and delivery of a product or the completion of
a service provided.
ADVERTISING AND MARKET DEVELOPMENT
The company expenses advertising and market development costs are research data
expenses.
IMPAIRMENT OF LONG-LIVED ASSETS
The Company reviews and evaluates long-lived assets for impairment when events
or changes in circumstances indicate that the related carrying amounts may not
be recoverable. The assets are subject to impairment consideration under ASC
360-10-35-17 if events or circumstances indicate that their carrying amount
might not be recoverable. When the Company determines that an impairment
analysis should be done, the analysis will be performed using the rules of ASC
930-360-35, Asset Impairment, and 360-10-15-3 through 15-5, Impairment or
Disposal of Long-Lived Assets.
ENVIRONMENTAL REQUIREMENTS
At the report date environmental requirements related to a formally held mineral
claim are unknown and therefore any estimate of future costs cannot be made.
MINERAL PROPERTY ACQUISITIONS COSTS
Costs of acquisition and option costs of mineral rights are capitalized upon
acquisition. Mine development costs incurred to develop new ore deposits, to
expand the capacity of mines, or to develop mine areas substantially in advance
of current production are also capitalized once proven and probable reserves
exist and the property is a commercially mineable property. Costs incurred to
maintain current production or to maintain assets on a standby basis are charged
to operations. If the Company does not continue with exploration after the
completion of the feasibility study, the mineral rights will be expensed at that
time. Costs of abandoned projects are charged to mining costs including related
property and equipment costs. To determine if these costs are in excess of their
recoverable amount periodic evaluation of carrying value of capitalized costs
and any related property and equipment costs are based upon expected future cash
flows and/or estimated salvage value in accordance with Accounting Standards
Codification (ASC) 360-10-35-15, Impairment or Disposal of Long-Lived Assets.
Various factors could impact our ability to achieve forecasted production
schedules. Additionally, commodity prices, capital expenditure requirements and
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reclamation costs could differ from the assumptions the Company may use in cash
flow models from exploration stage mineral interests involves further risks in
addition to those factors applicable to mineral interests where proven and
proven and probable reserves have been identified, due to the lower level of
confidence that the identified mineralized material can ultimately be mined
economically.
ESTIMATES AND ASSUMPTIONS
Management uses estimates and assumptions in preparing financial statements in
accordance with general accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could vary from the estimates that were assumed in
preparing these financial statements.
FINANCIAL INSTRUMENTS
The carrying amounts of financial instruments are considered by management to be
their estimated fair values due to their short term maturities.
RECENT ACCOUNTING PRONOUNCEMENTS
The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact on its financial statements.
3. ADVANCE
The Company received and advance of $25,000 from a third party in January 2011.
This advance is non-interest bearing and is payable on demand.
4. CAPITAL STOCK
On inception the company issued 10,000 private placement common shares for cash
of $20,000. On May 18, 2010 the company issued an additional 100 shares for
services, valued at $7,500. The value of these shares was calculated by using 75
hours of consulting at a charge rate of $100 per hour.
On January 18, 2011 the company executed a forward split of its common stock on
the basis of 35 new common shares for each existing 1 common share. The record
date for the action was January 27, 2011, and the payment date was January 28,
2011. The forward split was payable as a dividend. All share references in these
financial statements have been retroactively adjusted for this forward split.
On June 23, 2011 the company received notice that 245,500 common outstanding
shares were canceled.
On August 4, 2012, the company executed a reverse split decreasing shares by 1
for 1000. After this event the total number of common shares issued and
outstanding was 108,000. All share references in these financial statements have
been retroactively adjusted for this reverse split.
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5. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
Officer-directors have acquired 9.3% of the outstanding common capital stock of
the company.
During the three months ended June 30, 2012, the Director advanced $4,965 to the
Company. These advances are non-interest bearing and payable on demand. Also,
included in accounts payable are amounts payable to the Director of $17,500 for
accrued management fees.
6. GOING CONCERN
The accompanying financial statements have been prepared assuming that the
company will continue as a going concern. The company does not have a sufficient
working capital for its planned activity, and to service its debt, which raises
substantial doubt about its ability to continue as a going concern.
Continuation of the company as a going concern is dependent upon obtaining
additional working capital and the management of the company has developed a
strategy which it believes will accomplish this objective through short term
loans from an officer-director, and additional equity investments, which will
enable the company to continue operations for the coming year.
7. SUBSEQUENT EVENTS
On August 4, 2012, the company executed a reverse split decreasing shares by 1
for 1000.
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ITEM 2. MANAGEMENT`S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
This section of this report includes a number of forward-looking statements that
reflect our current views with respect to future events and financial
performance. Forward looking statements are often identified by words like:
believe, expect, estimate, anticipate, intend, project and similar expressions
or words which, by their nature, refer to future events. You should not place
undue certainty on these forward-looking statements, which apply only as of the
date of this report. These forward looking statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from historical results or our predictions.
OVERVIEW
Viking Minerals Inc. was incorporated in the State of Nevada as a for-profit
company on March 24, 2006. The Company is a pre-exploration stage company that
is presently seeking mineral claims for development.
PLAN OF OPERATION
The Company has not yet generated any revenue from its operations. As of the
fiscal quarter ended June 30, 2012 we had no cash on hand. We incurred operating
expenses in the amount of $614 in the three months ended June 30, 2012.
Our current cash holdings will not satisfy our liquidity requirements and we
will require additional financing to pursue our planned business activities. We
are in the process of seeking equity or debt financing to fund our operations
over the next 12 months. Management cautions that financing may not be available
to us on acceptable terms or at all, and thus we could fail to satisfy our
future cash requirements.
If we are unsuccessful in raising the additional proceeds through equity
financing we will then have to seek additional funds through debt financing,
which would be very difficult for a new pre-exploration stage company to secure.
If the company cannot raise proceeds via a financing through its common stock or
secure debt financing it would be required to cease business operations. As a
result, investors in the company would lose all of their investment.
Management does not plan to hire additional employees at this time. Our
President will be responsible for current operations. We will use third party
consultants should we require assistance in any activities.
OFF BALANCE SHEET ARRANGMENT
The Company does not have any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on the Company's financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are
material to investors.
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not required.
ITEM 4. CONTROLS AND PROCEDURES
The management of the Company is responsible for establishing and maintaining
adequate internal control over financial reporting, as required by
Sarbanes-Oxley (SOX) Section 404 A. The Company's internal control over
financial reporting is a process designed under the supervision of the Company's
Chief Executive Officer and Chief Financial Officer to provide reasonable
assurance regarding the reliability of financial reporting and the preparation
of the Company's financial statements for external purposes in accordance with
U.S. generally accepted accounting principles.
As of June 30, 2012 management assessed the effectiveness of the Company's
internal control over financial reporting based on the criteria for effective
internal control over financial reporting established in SEC guidance on
conducting such assessments. Based on that evaluation, they concluded that,
during the period covered by this report, such internal controls and procedures
were not effective to detect the inappropriate application of US GAAP rules as
more fully described below. This was due to deficiencies that existed in the
design or operation of our internal control over financial reporting that
adversely affected our internal controls and that may be considered to be
material weaknesses.
The matters involving internal controls and procedures that the Company's
management considered to be material weaknesses under the standards of the
Public Company Accounting Oversight Board were: (1) lack of a functioning audit
committee and lack of a majority of outside directors on the Company's board of
directors, resulting in ineffective oversight in the establishment and
monitoring of required internal controls and procedures; (2) inadequate
segregation of duties consistent with control objectives; (3) insufficient
written policies and procedures for accounting and financial reporting with
respect to the requirements and application of US GAAP and SEC disclosure
requirements; and (4) ineffective controls over period end financial disclosure
and reporting processes. The aforementioned material weaknesses were identified
by the Company's Chief Financial Officer in connection with the review of our
financial statements as June 30, 2012 and communicated the matters to our
management.
Management believes that the material weaknesses set forth in items (2), (3) and
(4) above did not affect the Company's financial results. However, management
believes that the lack of a functioning audit committee and lack of a majority
of outside directors on the Company's board of directors, resulting in
ineffective oversight in the establishment and monitoring of required internal
controls and procedures can affect the Company's results and its financial
statements for the future years.
We are committed to improving our financial organization. As part of this
commitment, we will create a position to segregate duties consistent with
control objectives and will increase our personnel resources and technical
accounting expertise within the accounting function when funds are available to
the Company: i) Appointing one or more outside directors to our board of
directors who shall be appointed to the audit committee of the Company resulting
in a fully functioning audit committee who will undertake the oversight in the
establishment and monitoring of required internal controls and procedures; and
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ii) Preparing and implementing sufficient written policies and checklists which
will set forth procedures for accounting and financial reporting with respect to
the requirements and application of US GAAP and SEC disclosure requirements.
Management believes that the appointment of one or more outside directors, who
shall be appointed to a fully functioning audit committee, will remedy the lack
of a functioning audit committee and a lack of a majority of outside directors
on the Company's Board. In addition, management believes that preparing and
implementing sufficient written policies and checklists will remedy the
following material weaknesses (i) insufficient written policies and procedures
for accounting and financial reporting with respect to the requirements and
application of US GAAP and SEC disclosure requirements; and (ii) ineffective
controls over period end financial close and reporting processes. Further,
management believes that the hiring of additional personnel who have the
technical expertise and knowledge will result proper segregation of duties and
provide more checks and balances within the department. Additional personnel
will also provide the cross training needed to support the Company if personnel
turn over issues within the department occur. This coupled with the appointment
of additional outside directors will greatly decrease any control and procedure
issues the company may encounter in the future.
We will continue to monitor and evaluate the effectiveness of our internal
controls and procedures and our internal controls over financial reporting on an
ongoing basis and are committed to taking further action and implementing
additional enhancements or improvements, as necessary and as funds allow.
There have been no changes in our internal control over financial reporting
identified in connection with the evaluation required by paragraph (d) of Rules
13a-15 or 15d-15 under the Exchange Act that occurred during the small business
issuer's last fiscal quarter that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
We are not a party to any material legal proceedings and to our knowledge, no
such proceedings are threatened or contemplated.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
None.
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ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibit
Number Description of Exhibit
------ ----------------------
3.1 Articles of Incorporation (1)
3.2 Bylaws (1)
31.1 Certification by Chief Executive Officer and Chief Financial Officer
required by Rule 13a-14(a) or Rule 15d-14(a) of the Exchange Act,
promulgated pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
filed herewith
32.1 Certification by Chief Executive Officer and Chief Financial Officer,
required by Rule 13a-14(b) or Rule 15d-14(b) of the Exchange Act and
Section 1350 of Chapter 63 of Title 18 of the United States Code,
promulgated pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
filed herewith
101 Interactive data files pursuant to Rule 405 of Regulation S-T (2)
----------
(1) Filed with the SEC as an exhibit to our Form SB-1 Registration Statement
originally filed on December 19, 2006.
(2) To be filed by Amendment
SIGNATURES
In accordance with the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: August 14, 2012
Signature Title
--------- -----
By: /s/ Charles Irizarry Chief Executive Officer, Chief Financial
--------------------------- Officer, President, Secretary, Treasurer,
Charles Irizarry and Director (Principal Executive Officer
and Principal Accounting Officer)
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