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1 2 3 4 5 6 |
Statements of Operations and Deficit |
We have audited the balance sheets of Tres-Or Resources Ltd. as at February 28, 2003 and 2002 and the statements of operations and deficit and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Company as at February 28, 2003 and 2002 and the results of its operations and its cash flows for the years then ended in accordance with Canadian generally accepted accounting principles. As required by the Company Act of British Columbia, we report that, in our opinion, these principles have been applied on a consistent basis.
"DAVIDSON & COMPANY"
Vancouver Canada
Chartered Accountants
June 27, 2003
A Member of SC INTERNATIONAL
1200 - 609 Granville Street, P.O. Box 10372, Pacific Centre, Vancouver, BC,
Canada, V7Y 1G6
Telephone (604) 687-0947 Fax (604) 687-6172
AS AT FEBRUARY 28 2003
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2003 |
2002 |
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ASSETS |
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Current |
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Cash |
$ 254,852 |
$ 122,244 |
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Marketable securities (Note 3) |
50,500 |
4,500 |
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Receivables |
103,591 |
21,369 |
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408,943 |
148,113 |
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Capital assets (Note 4) |
1,002 |
1,432 |
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Mineral properties (Note 5) |
895,650 |
821,025 |
Deferred exploration costs (Note 6)
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808,176 |
615,628 |
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$ 2,113,771 |
$ 1,586,198 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current |
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Accounts payable and accrued liabilities |
$ 209,161 |
$ 120,030 |
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Due to related parties (Note 8) |
41,857 |
9,637 |
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251,018 |
129,667 |
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Shareholders' equity |
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Capital stock (Note 7) |
6,063,361 |
5,015,493 |
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Subscriptions receivable |
(89,500) |
(8,500) |
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Contributed surplus (Note 7) |
34,316 |
- |
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Deficit |
(4,145,424) |
(3,550,462) |
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1,862,753 |
1,456,531 |
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$ 2,113,771 |
$ 1,586,198 |
Nature
and continuance of operations (Note 1)
Contingencies (Note
11)
Subsequent events (Note 14)
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On behalf of the Board: |
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“N. Reid Toreson” |
Director |
“Laura Lee Duffett” |
Director |
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The accompanying notes are an integral part of these
financial statements.
YEAR ENDED FEBRUARY 28
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2003 |
2002 |
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EXPENSES |
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Amortization |
$ 430 |
$ 497 |
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Bank charges and interest |
708 |
4,473 |
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Consulting expense |
34,316 |
- |
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Expense recovery |
(43,939) |
(12,733) |
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Management fees |
20,000 |
23,900 |
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Office and miscellaneous |
28,940 |
18,984 |
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Professional fees |
120,292 |
29,284 |
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Telephone |
4,127 |
3,394 |
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Transfer agent and regulatory fees |
26,192 |
15,692 |
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Travel and promotion |
47,242 |
9,326 |
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(238,308) |
(92,817) |
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OTHER ITEMS |
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Write-down of marketable securities (Note
3) |
(42,500) |
(19,500) |
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Write-down of note receivable |
- |
(1,686) |
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Write-off of mineral properties (Note 5) |
(157,375) |
- |
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Write-off of deferred exploration costs
(Note 6) |
(394,825) |
- |
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(594,700) |
(21,186) |
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Loss before income taxes |
(833,008) |
(114,003) |
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Income tax recovery |
238,046 |
134,563 |
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Net income (loss) for the year |
(594,962) |
20,560 |
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Deficit, beginning of year |
(3,550,462) |
(3,571,022) |
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Deficit, end of year |
$ (4,145,424) |
$ (3,550,462) |
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Basic and diluted earnings (loss) per common share |
$ (0.04) |
$ 0.01 |
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Weighted average number of common shares outstanding |
16,343,024 |
11,241,069 |
The accompanying notes are an integral part of these
financial statements.
YEAR ENDED FEBRUARY 28
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2003 |
2002 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Income (loss) for the year |
$ (594,962) |
$ 20,560 |
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Items not affecting cash: |
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Amortization |
430 |
497 |
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Consulting expense (stock-based compensation) |
34,316 |
- |
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Write-down of marketable securities |
42,500 |
19,500 |
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Write-off of mineral properties |
157,375 |
- |
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Write-off of deferred exploration
costs |
394,825 |
- |
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Write-down of note receivable |
- |
1,686 |
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Income tax recovery |
(238,046) |
(134,563) |
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Changes in non-cash working capital items: |
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Increase in accounts receivable |
(82,222) |
(17,388) |
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Increase (decrease) in accounts payable |
89,131 |
(5,620) |
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Decrease in subscriptions receivable |
8,500 |
1,650 |
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Net cash used in operating activities |
(188,153) |
(113,678) |
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Issuance of capital stock |
818,414 |
844,611 |
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Advances from (repayment to) related parties |
32,220 |
(20,710) |
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Repayment on note receivable |
- |
2,000 |
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Net cash provided by financing activities |
850,634 |
825,901 |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Purchase of capital assets |
- |
(546) |
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Mineral properties, net of recoveries |
57,500 |
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