The following discussion should be read in conjunction with our audited
financial statements and the related notes for the years ended
Our audited financial statements are stated in
Plan of Operation
During the next twelve month period, we intend to focus our efforts on exploring other mineral opportunities.
Not accounting for our working capital deficit of
If we are not able to obtain the additional financing on a timely basis, if and when it is needed, we will be forced to scale down or perhaps even cease the operation of our business.
We do not intend to invest in capital expenditures during the twelve-month period ending
General and Administrative Expenses
We expect to spend
We do not anticipate expending any funds on research and development, manufacturing and engineering over the twelve months ending
Purchase of Significant Equipment
We do not intend to purchase any significant equipment over the twelve months ending
15 Personnel Plan
We do not expect any material changes in the number of employees over the next 12 month period (although we may enter into employment or consulting agreements with our officers or directors). We do and will continue to outsource contract employment as needed.
Results of Operations for the Years Ended
The following summary of our results of operations should be read in conjunction with our audited financial statements for the years ended
Our operating results for the years ended
April 30, 2014and 2013 are summarized as follows: Year Ended April 30 2014 2013 Revenue $ Nil $ Nil Mining operation costs $ Nil $ Nil Geologist $ Nil $ Nil General administrative expenses $ 1,367 $ 72,321Other non- operational expenses and loss $ Nil $ Nil Depreciation and amortization $ Nil $ Nil Net Loss $ 1,367 $ 72,321
General Administrative Expenses
Our general administrative expenses for the year ended
Year Ended April 30 2014 2013 Filing fees $ -
$ 10,200Consulting fees $ Nil $ Nil Professional fees $ 1,367 $ 27,564Management fees $ Nil $ 34,557Facilities costs $ Nil $ Nil Investor relations $ Nil $ Nil Office costs $ Nil $ Nil Travel costs $ Nil $ Nil Registered fees $ Nil $ Nil Mineral property cost $ Nil $ Nil Promotion $ Nil $ Nil Salaries $ Nil $ Nil Taxes $ Nil $ Nil Bank service charges $ Nil $ Nil 16
The increase in operating expenses across all categories for the year ended
Liquidity and Financial Condition
We have suffered recurring losses from operations. The continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed. In this regard we have raised additional capital through equity offerings and loan transactions.
Cash Flows At At April April 30, 2013 30, 2014 Net Cash (Used in) Operating Activities
$ 1,267$ 20,000 Net Cash Provided by (Used In) Investing Activities $ Nil $ Nil Net Cash Provided by Financing Activities $ 1,267$ 20,000 Cash (decrease) increase during the year $ Nil $ Nil
We had cash in the amount of $nil as of
Our principal sources of funds have been from sales of our common stock.
As a "smaller reporting company", we are not required to provide tabular disclosure obligations.
The audited financial statements included with this annual report have been prepared on the going concern basis which assumes that adequate sources of financing will be obtained as required and that our assets will be realized and liabilities settled in the ordinary course of business. Accordingly, the consolidated audited financial statements do not include any adjustments related to the recoverability of assets and classification of assets and liabilities that might be necessary should we be unable to continue as a going concern.
Off-Balance Sheet Arrangements
We have no 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 stockholders.
The effect of inflation on our revenue and operating results has not been significant.
APPLICATION OF CRITICAL ACCOUNTING POLICIES
Our audited financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles used in
Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes arising on tax losses and temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statement at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in Accounting Standards Codification ("ASC") No. 740, Income Taxes ("ASC No. 740"). As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.
Loss per Share
The Company follows ASC No. 260, Earnings per Share that requires the reporting of both basic and diluted earnings per share. Basic earnings per share is computed by dividing net income available to common shareowners by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC No, 260, any anti-dilutive effects on net loss per share are excluded.
Foreign Currency Translation
The Company's functional and reporting currency is
Comprehensive income reflects changes in equity that results from transactions and economic events from non-owner sources. At
18 (k) Inventory
Inventory is recorded at the lower of cost or net realizable value. Cost is determined under the weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and estimated selling costs. Cost of inventories includes precious metals, materials and supplies.
Inventories are written down to net realizable value when the cost of inventories is not estimated to be recoverable. When the circumstances that previously caused inventories to be written down below cost no longer exist or when there is clear evidence of an increase in net realizable value because of changed economic circumstances, the amount of the write-down is reversed (the reversal is limited to the amount of the original write-down).
Mineral property acquisition costs and deferred exploration expenditures
Mineral property acquisition costs are expensed. Exploration costs and mine development costs to be incurred, including those to be incurred in advance of commercial production and those incurred to expand capacity of proposed mines, are expensed as incurred while our company is in the exploration stage. Mine development costs to be incurred to maintain production will be expensed as incurred. Depletion and amortization expense related to capitalized mineral properties and mine development costs will be computed using the units-of-production method based on proved and probable reserves.
a) US GAAP requires that whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, the entity shall estimate the future cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the discounted future cash flows is less than the carrying amount of the asset, an impairment loss (difference between the carrying amount and fair value) should be recognized as a component of income from continuing operations before income taxes.
b) Where properties are disposed of, the sale proceeds are, firstly, applied as a recovery of mineral property acquisition costs, and secondly, as a gain or loss recorded in current operations.
Asset retirement obligations
ASC No. 410 Accounting for Asset Retirement Obligations addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs. Specifically, ASC No. 410 requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. In addition, the asset retirement cost is capitalized as part of the asset's carrying value and subsequently allocated to expense over the asset's useful life.
Revenue is recognized on the sale and delivery of precious metals or the completion of a service provided.
ASC Topic 830, Accounting for the Impairment and Disposal of Long-Lived Assets, requires that long-lived assets to be held and used be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Determination of recoverability is based on the Company's judgment and estimates of undiscounted future cash flows resulting from the use of the assets and their eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the assets.
The carrying values of assets determined to be impaired are reduced to their estimated fair values. Fair values of any impaired assets would generally be determined using a market or income approach.
NEW ACCOUNTING PRONOUNCEMENTS