Bravo Multinational Inc. - Quarter Report: 2011 March (Form 10-Q)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2011
or
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to __________
Commission file number 000-53505
GOLDLAND HOLDINGS, CO.
(Exact name of small business issuer as specified in its charter)
DELAWARE | 90-0350814 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
5709 Manatee Avenue West, Bradenton, Florida 34209
(Address of principal executive offices)
(941) 761-7819
(Issuer’s telephone number, including area code)
_______________________________________________________
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether 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 such filing requirements for the past 90 days. x Yes o 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” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer o Accelerated filer o Non-accelerated filer o 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 o No x
State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: 238,887,553 shares as of May 10, 2011.
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GOLDLAND HOLDINGS, CO.
FORM 10-Q REPORT INDEX
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
Item 4. Controls and Procedures.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults upon Senior Securities.
Item 4. (Removed and Reserved)
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GOLDLAND HOLDINGS, CO.
BALANCE SHEET
MARCH 31, 2011 AND DECEMBER 31, 2010
See accompanying notes to financial statements
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GOLDLAND HOLDINGS, CO.
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(UNAUDITED)
2011 | 2010 | ||
Revenues: | $ - | $ - | |
Expenses: | |||
Consulting fees | 24,656 | 45,582 | |
Compensation expense | 150,500 | 43,750 | |
General and administrative | 2,039 | 1,485 | |
Total expenses | 177,195 | 90,817 | |
Loss from operations | (177,195) | (90,817) | |
Interest expense | - | (7,814) | |
Net Loss | $ (177,195) | $ (98,631) | |
Net loss per common share – basic and fully diluted | $ - | $ - | |
Weighted average number of common shares outstanding – fully diluted | 238,573,285 | 201,655,648 |
See accompanying notes to financial statements.
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GOLDLAND HOLDINGS, CO.
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(UNAUDITED)
2011 | 2010 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ (177,195) | $ (98,631) | |
Adjustments to reconcile net earnings (loss) to net cash (used in) operating activities: | |||
Issuance of common stock for services | 10,500 | 48,455 | |
Increase (decrease) in operating assets and liabilities: | |||
Accounts payable and accrued expenses | (8,515) | (8,330) | |
Accrued payroll and payroll liabilities | 115,000 | 43,750 | |
Prepaid expenses | 35,500 | - | |
Due to related party | - | 7,000 | |
Accrued interest | - | 7,814 | |
Net cash provided by (used in) operating activities | (24,710) | 58 | |
Cash flows from financing activities: | |||
Proceeds from Director’s loan | - | - | |
- | - | ||
Net increase (decrease) in cash and cash equivalents | (24,710) | 58 | |
Cash and equivalents at beginning of period | 82,483 | - | |
Cash and equivalents at end of period | $ 57,773 | $ 58 | |
2011 | 2010 | |
SUPPLEMENTARY DISCLOSURE OF NONCASH TRANSACTIONS | ||
Shares issued for services | $ 10,500 | $ 48,455 |
Shares issued for compensation | $ 142,000 | $ -- |
See accompanying notes to financial statements.
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GOLDLAND HOLDINGS, CO.
STATEMENT OF STOCKHOLDERS' DEFICIT
FOR THE THREE MONTHS ENDED MARCH 31, 2011
(UNAUDITED)
Common Shares | Preferred Shares | Common Stock, At Par | Preferred Stock | Additional Paid in Capital | Accumulated Deficit | Total Shareholder's Deficit | |
Balance at 12/31/10 | 218,592,756 | - | $ 21,859 | $ - | $ 6,037,394 | (7,128,799) | $ (1,069,546) |
Shares issued for services | 135,919 | - | 13 | - | 10,487 | 10,500 | |
Shares issued for accrued compensation | 18,095,242 | - | 1,810 | - | 1,264,857 | 1,266,667 | |
Shares issued for compensation Net loss | 2,000,000 | - | 200 | - | 141,800 | (177,195) | 142,000 (177,195) |
Balance at 03/31/11 | 238,823,917 | - | $ 23,882 | $ - | $ 7,454,538 | $ (7,305,994) | $ 172,426 |
See accompanying notes to financial statements.
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GOLDLAND HOLDINGS, CO.
NOTES TO INTERIM FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2011 AND 2010
(UNAUDITED)
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
GoldLand Holdings, CO, (the “Company,” “we” or “us”) was originally formed as Montrose Ventures, Inc. in the State of Delaware on May 25, 1989. On April 23, 1996, the Company’s name was changed to Java Group, Inc., and on September 1, 2004 the name was changed to Consolidated General Corp. On August 7, 2007, the company’s name was changed to GoldCorp Holdings Co. On October 15, 2010, our name was changed to GoldLand Holdings Co.
The Company) owns land and lease claims on War Eagle Mountain in the state of Idaho. The Company has entered into a lease agreement with Silver Falcon Mining, Inc. (“Silver Falcon”) under which Silver Falcon is entitled to mine the land and the Company is entitled to a 15% royalty on all minerals extracted by Silver Falcon.
Basis of Presentation
The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Regulation S-X as promulgated by the Securities and Exchange Commission (“SEC”). Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements and the notes thereto included on Form 10-K for the year ended December 31, 2010. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.
The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumption are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions that could have a material effect on the reported amounts of the Company’s financial position and results of operations.
Operating results for the three months period ended March 31, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition
Revenue is recognized when earned according to lease and royalty agreements. Lease income is recognized as earned on a monthly basis according to the terms of the lease. Royalty income is recognized as ore is extracted and refined.
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Cash and Cash Equivalents
Cash and cash equivalents consist of all cash balances and highly liquid investments with an original maturity of three months or less. Because of the short maturity of these investments, the carrying amounts approximate their fair value.
Investments
Management determines the appropriate classification of its investments in equity securities at the time of purchase and reevaluates such determinations at each reporting date. Investments in incorporated entities in which the Company’s ownership is greater than 20% and less than 50%, or which the Company does not control through majority ownership or means other than voting rights, are accounted for by the equity method and are included in long-term assets. The Company accounts for its equity security investments as available for sale securities in accordance with Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards (“FAS”) No. 115, “Accounting for Certain Investments in Debt and Equity Securities.” The Company periodically evaluates whether declines in fair values of its investments below the Company’s carrying value are other-than-temporary in accordance with FSP FAS 115 No. 115-1 and FAS 124-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments.” The Company’s policy is to generally treat a decline in the investment’s quoted market value that has lasted continuously for more than six months as an other-than-temporary decline in value. The Company also monitors its investments for events or changes in circumstances that have occurred that may have a significant adverse effect on the fair value of the investment and evaluates qualitative and quantitative factors regarding the severity and duration of the unrealized loss and the Company’s ability to hold the investment until a forecasted recovery occurs to determine if the decline in value of an investment is other-than-temporary. Declines in fair value below the Company’s carrying value deemed to be other-than-temporary are charged to earnings. Additional information concerning the Company’s equity method and security investments is included in Note 15.
The Company accounts for its investments in auction rate securities in accordance with FAS No. 115. Specifically, when the underlying security of an auction rate security has a stated or contractual maturity date in excess of 90 days, regardless of the frequency of the interest rate reset date, the security is classified as an available-for-sale marketable debt security.
Facilities and equipment
Expenditures for new facilities or equipment and expenditures that extend the useful lives of existing facilities or equipment are capitalized and recorded at cost. The facilities and equipment are depreciated using the straight-line method at rates sufficient to depreciate such costs over the estimated productive lives, which do not exceed the related estimated mine lives, of such facilities based on proven and probable reserves.
Impairment of Long-Lived Assets
The Company reviews and evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable. An impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets, including goodwill, if any. An impairment loss is measured and recorded based on discounted estimated future cash flows. Future cash flows are estimated based on quantities of recoverable minerals, expected gold and other commodity prices (considering current and historical prices, price trends and related factors), production levels and operating costs of production and capital, all based on life-of-mine plans. Existing proven and probable reserves and value beyond proven and probable reserves, including mineralization other than proven and probable reserves and other material that is not part of the measured, indicated or inferred resource base, are included when determining the fair value of mine site reporting units at acquisition and, subsequently, in determining whether the assets are impaired. The term “recoverable minerals” refers to the estimated amount of gold or other commodities that will be obtained after taking into account losses during ore processing and treatment. Estimates of recoverable minerals from such exploration stage mineral interests are risk adjusted based on management’s relative confidence in such materials. In estimating future cash flows, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of future cash flows from other asset groups. The Company’s estimates of future cash flows are based on numerous assumptions and it is possible that actual future cash flows will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and operating costs of production and capital are each subject to significant risks and uncertainties.
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Goodwill
The Company evaluates, on at least an annual basis during the fourth quarter, the carrying amount of goodwill to determine whether current events and circumstances indicate that such carrying amount may no longer be recoverable. To accomplish this, the Company compares the estimated fair value of its reporting units to their carrying amounts. If the carrying value of a reporting unit exceeds its estimated fair value, the Company compares the implied fair value of the reporting unit’s goodwill to its carrying amount, and any excess of the carrying value over the fair value is charged to earnings. The Company’s fair value estimates are based on numerous assumptions and it is possible that actual fair value will be significantly different than the estimates, as actual future quantities of recoverable minerals, gold and other commodity prices, production levels and operating costs of production and capital are each subject to significant risks and uncertainties.
Stock Based Compensation
The Company has issued and may issue stock in lieu of cash for certain transactions. The fair value of the stock, which is based on comparable cash purchases, third party quotations, or the value of services, whichever is more readily determinable, is used to value the transaction
Use of Estimates
The Company’s Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the Company’s Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related 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. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results may differ significantly from these estimates under different assumptions or conditions.
Basic and Diluted Per Common Share
Under Statement of Financial Accounting Standards (“SFAS”) No. 128, “Earnings Per Share,” basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. Because the Company has incurred net losses, basic and diluted loss per share are the same since additional potential common shares would be anti-dilutive.
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Research and Development
The Company expenses research and development costs as incurred.
Significant Recent Accounting Pronouncements
In June 2009 the FASB established the Accounting Standards Codification (“Codification” or “ASC”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) issued under authority of federal securities laws are also sources of GAAP for SEC registrants. Existing GAAP was not intended to be changed as a result of the Codification, and accordingly the change did not impact our financial statements. The ASC does change the way the guidance is organized and presented.
Accounting Standards Update (“ASU”) ASU No. 2009-05 (ASC Topic 820), which amends Fair Value Measurements and Disclosures – Overall, ASU No. 2009-13 (ASC Topic 605), Multiple-Deliverable Revenue Arrangements, ASU No. 2009-14 (ASC Topic 985), Certain Revenue Arrangements that include Software Elements, and various other ASU’s No. 2009-2 through ASU No. 2010-18 which contain technical corrections to existing guidance or affect guidance to specialized industries or entities were recently issued. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.
In February 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-09, which, among other things, amends Subtopic 855-10 with respect to the date through which evaluation of subsequent events must occur and under which circumstances such date must be disclosed. The update amends subtopic 855-10 so that an SEC filer is not required to disclose the date through which subsequent events have been evaluated. This change alleviates potential conflicts between Subtopic 855-10 and the SEC’s requirements. All of the amendments in this update are effective upon issuance, with limited exceptions. Adoption of this guidance did not have a material impact on our financial statements.
During February 2010, the FASB also issued ASU 2010-08, which corrects existing guidance for various topics. The update is generally effective for the first reporting period (including interim periods) beginning after issuance. We believe these corrections will have minimal, if any, impact on our financial statements.
In January 2010, the FASB issued ASU 2010-06, which amends Subtopic 820-10 to require new disclosures regarding the amounts of and reasons for significant transfers in and out of Levels 1 and 2 fair value measurement categories, and separate information about purchases, sales, issuances, and settlements in Level 3 fair value measurements. ASU 2010-06 also clarifies existing fair value measurement disclosures to provide for fair value measurement disclosures for each class of assets and liabilities, even within a line item in the statement of financial position, and to provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either the Level 2 or Level 3 categories.
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ASU 2010-06 also includes conforming amendments to the guidance on employers’ disclosures about post-retirement benefit plan assets (Subtopic 715-20), changes the terminology in Subtopic 715-20 from major categories of assets to classes of assets, and provides a cross reference to the guidance in Subtopic 820-10 on how to determine appropriate classes to present fair value disclosures.
The new disclosures and clarifications of existing disclosures in ASU 2010-06 are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Adoption of this guidance has not had a material impact on our financial statements and is not expected to have a material impact on our financial statements in the future.
NOTE 3 - RELATED PARTY TRANSACTIONS
As of December 31, 2010 and March 31, 2011, the amount due from Silver Falcon Mining, Inc. was $2,000 and the amount due from Diamond Creek Mill, Inc., a wholly-owned subsidiary of Silver Falcon Mining, Inc., was $4,000.
On January 1, 2011, we issued 16,666,671 shares of our common stock to Pierre Quilliam in satisfaction of $1,166,667 of accrued compensation, and 1,428,571 shares of our common stock to Allan Breitkreuz in satisfaction of $100,000 of accrued compensation. Messrs. Quilliam and Breitkreuz are officers and directors of the Company. The shares were valued at the market price on the date of issuance.
NOTE 4 - COMMITMENTS AND CONTINGENCIES
We are obligated under employment agreements with our officers to make total salary payments of $460,000 per year.
NOTE 5 - CAPITAL STOCK
At March 31, 2011, the Company's authorized capital stock was 400,000,000 shares of Common Stock, par value $0.0001 per share, and 5,000,000 shares of Preferred Stock, par value $0.0001 per share. On that date, the Company had outstanding 238,823,917 shares of Common Stock, and no shares of Preferred Stock.
During the three months ended March 31, 2011, the Company issued shares of Common Stock in the following transactions:
·
135,919 shares of Common Stock were issued for consulting services valued at $10,500.
·
2,000,000 shares of Common Stock were issued in payment of compensation valued at $142,000.
·
18,095,242 shares of Common Stock valued at $1,266,667 were issued in payment of accrued compensation.
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NOTE 6 – GOING CONCERN
These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. However, the Company has incurred a net loss of ($177,195) for the three months ended March 31, 2011. The Company has remained in business primarily through the deferral of salaries by management, loans from the Company’s chief executive officer, loans from a significant shareholder, and the issuance of shares of common stock to procure certain services. The Company intends on financing its future development activities from the same sources, until such time that funds provided by operations are sufficient to fund working capital requirements.
These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.
NOTE 8 – SUBSEQUENT EVENTS
None
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Disclosure Regarding Forward Looking Statements
This Quarterly Report on Form 10-Q includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (“Forward Looking Statements”). All statements other than statements of historical fact included in this report are Forward Looking Statements. In the normal course of its business, the Company, in an effort to help keep its shareholders and the public informed about the Company’s operations, may from time-to-time issue certain statements, either in writing or orally, that contain or may contain Forward-Looking Statements. Although the Company believes that the expectations reflected in such Forward Looking Statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of such plans or strategies, past and possible future, of acquisitions and projected or anticipated benefits from acquisitions made by or to be made by the Company, or projections involving anticipated revenues, earnings, levels of capital expenditures or other aspects of operating results. All phases of the Company operations are subject to a number of uncertainties, risks and other influences, many of which are outside the control of the Company and any one of which, or a combination of which, could materially affect the results of the Company’s proposed operations and whether Forward Looking Statements made by the Company ultimately prove to be accurate. Such important factors (“Important Factors”) and other factors could cause actual results to differ materially from the Company’s expectations are disclosed in this report. All prior and subsequent written and oral Forward Looking Statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Important Factors described below that could cause actual results to differ materially from the Company’s expectations as set forth in any Forward Looking Statement made by or on behalf of the Company.
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Overview
On September 14, 2007, we acquired an interest in 174.82 acres of land on War Eagle Mountain in Idaho from two of our major shareholders for a total of 90,000,000 shares of our common stock. We acquired a 100% interest in 103 acres, and a 29.166% interest in 71.82 acres. We also lease five placer claims on War Eagle Mountain from the U.S. Bureau of Land Management, each of which covers approximately 20 acres, or approximately 100 acres in total.
On October 11, 2007, we entered into a lease of our mineral rights to Silver Falcon, which is responsible for all mining activities on War Eagle Mountain. We are entitled to annual lease payments of $1,000,000, payable on a monthly basis, a monthly nonaccountable expense reimbursement of $10,000 during any month in which ore is mined from the leased premises, and a royalty of 15% of all amounts paid to Silver Falcon from the processing of ore mined from our properties. The lease initially provided that lease payments must commence April 1, 2008. Because Silver Falcon has been unable to commence operations according to its original schedule, we have agreed to extend the commencement date several times, to July 1, 2010, and extended the lease term by an equal amount each time. Effective October 1, 2010, we agreed to allow Silver Falcon to defer lease payments until January 1, 2012, and agreed to extend the lease term by an equal amount of time..
To date, Silver Falcon’s operations have consisted of processing tailings left on the mine site from prior mining operations. Silver Falcon has constructed a milling operation at the base of the mountain, and is in the process of constructing a smelter to further process concentrate produced in its milling operation. Silver Falcon has also made substantial capital improvements to the mountain and roads. Before Silver Falcon begins mining raw ore from the mountain, it will need to complete a confirmation phase designed to locate and prove up reserves in the mountain in order to develop a comprehensive plan for the full development of the mine site. Later, after Silver Falcon completes a confirmation program to prove up and locate reserves on the property, and make further capital improvements to the mine site, it plans to begin mining and processing raw ore.
Our revenue, profitability, and future growth rate depend substantially on factors beyond our control, including Silver Falcon’s success in the commencement of mining operations on our properties, as well as economic, political, and regulatory developments and fluctuations in the market prices of minerals processed from ore derived from our properties.
Results of Operations
Three Months ended March 31, 2011 and 2010
We reported no revenues during the three months ended March 31, 2011 and 2010.
We reported losses from operations during the three months ended March 31, 2011 and 2010 of ($177,195) and ($90,817), respectively. The increased operating loss in 2011 as compared to 2010 was largely attributable to an increase in compensation expense resulting from the increase in accruals of compensation offset by a decrease in consulting fees of $20,926.
We reported a net loss during the three months ended March 31, 2011 and 2010 of ($177,195) and ($98,631), respectively. The increased net loss in 2011 as compared to 2010 was attributable to higher loss from operations offset by lower interest expense. We had no notes payable outstanding during the three months ended March 31, 2011.
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Liquidity and Sources of Capital
The following table sets forth the major sources and uses of cash for our last three months ended March 31, 2011 and 2010:
Three months ended March 31, | |||
2011 | 2010 | ||
Net cash provided by (used) in operating activities | $ (24,710) | $ 58 | |
Net cash provided by (used) in investing activities | - | - | |
Net cash provided by (used) in financing activities | - | - | |
Net (decrease) increase in unrestricted cash and cash equivalents | $ (24,710) | $ 58 | |
Comparison of 2009 and 2010
Operating activities (used) contributed $(24,710) of cash in 2011, as compared to $58 of cash in 2010. Major non-cash items that affected our cash flow from operations in 2011 were accrued payroll of $115,000 and prepaid expenses of $35,500.
Major non-cash items that affected our cash flow from operations in 2010 were accrued payroll of $43,750 and $48,455 for the value of common stock issued for compensation. Investing activities did not use or supply any cash in the nine months ending September 30, 2010 or 2009.
There were no investing or financing activities in either 2010 or 2011.
Current Liquidity
Our balance sheet as of March 31, 2011 reflects cash and current assets of $173,273, current liabilities of $360,847, and a working capital deficit of ($187,574). However, most of our current liabilities consist of accrued compensation to our management or loans from management.
We have executed a lease agreement with Silver Falcon, which provides for an annual lease payment of $1,000,000 payable in monthly installments, and a royalty equal to 15% of the proceeds of any ore mined from our property on War Eagle Mountain. Effective October 1, 2010, we agreed to allow Silver Falcon to defer lease payments until January 1, 2012. During the period of the deferral, we will be dependent on the deferral of salaries by our management, the issuance of shares of our common stock for services, and on loans from Silver Falcon, our officers and a significant shareholder to pay other administrative expenses.
Critical Accounting Policies and Estimates
Our significant accounting policies are described in Note 2 of Notes to Financial Statements. At this time, we are not required to make any material estimates and assumptions that affect the reported amounts and related disclosures of assets, liabilities, revenue, and expenses. However, as we begin actual mining operations, we may be required to make estimates and assumptions typical of other companies in the mining business.
For example, we will be required to make critical accounting estimates related to future metals prices, obligations for environmental, reclamation, and closure matters, mineral reserves, and accounting for business combinations. The estimates will require us to rely upon assumptions that were highly uncertain at the time the accounting estimates are made, and changes in them are reasonably likely to occur from period to period. Changes in estimates used in these and other items could have a material impact on our financial statements in the future.
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Our estimates will be based on our experience and our interpretation of economic, political, regulatory, and other factors that affect our business prospects. Actual results may differ significantly from our estimates.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that 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 are material to investors.
Going Concern
The Company's financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. However, the Company has incurred a net loss of ($177,195) for the three months ended March 31, 2011. The Company has remained in business primarily through the deferral of salaries by management, loans from the Company’s chief executive officer, loans from a significant shareholder and the issuance of shares of common stock to procure certain services. The Company intends on financing its future development activities from the same sources, until such time that funds provided by operations are sufficient to fund working capital requirements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Because the Company is a smaller reporting company, it is not required to provide the information called for by this Item.
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
Pierre Quilliam, our chief executive officer, and Tom Ridenour, our chief financial officer, are responsible for establishing and maintaining our disclosure controls and procedures. Disclosure controls and procedures means controls and other procedures that are designed to ensure that information we are required to disclose in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and to ensure that information required to be disclosed by us in those reports is accumulated and communicated to the our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our chief executive officer and chief financial officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of March 31, 2011. Based on that evaluation, our chief executive officer and chief financial officer have concluded that, as of the evaluation date, such controls and procedures were adequate.
Changes in internal controls
There were no changes in our internal controls over financial reporting that occurred during the quarter ended September 30, 2010 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION.
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 1A. RISK FACTORS.
Not applicable.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
During the three months ended March 31, 2011, the Company issued shares of Common Stock in the following unregistered transactions:
·
2,000,000 shares of Common Stock were issued in payment of compensation valued at $142,000.
·
16,666,671 shares of Common Stock valued at $1,166,667 were issued in payment of accrued compensation.
The shares were issued pursuant to the exemption from registration provided by Section 4(2) of the Securities Act of 1933.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. (REMOVED AND RESERVED)
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS.
Reference is made to the Index to Exhibits following the signature page to this report for a list of all exhibits filed as part of this report.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| GOLDLAND HOLDINGS, CO. |
Date: May 13, 2011 | /s/ Pierre Quilliam |
| By: Pierre Quilliam, Chief Executive Officer (principal executive officer) |
Date: May 13, 2011 | /s/ Thomas C. Ridenour |
By: Thomas C. Ridenour, Chief Financial Officer (principal financial and accounting officer) |
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EXHIBIT INDEX
Exhibit Number | Description of Exhibits |
3.1 | Amended and Restated Certificate of Incorporation of GoldCorp Holdings Co., a Delaware corporation, dated August 13, 2007 (incorporated by reference to the Form 10 Registration Statement filed November 24, 2008) |
3.2 | By-Laws (incorporated by reference to the Form 10 Registration Statement filed November 24, 2008) |
3.3 | Corrected Certificate of Amendment to Certificate of Incorporation filed October 5, 2010 (incorporated by reference to the Form 10-K filed March 31, 2011) |
4.1 | Form of Common Stock certificate (incorporated by reference to the Form 10 Registration Statement filed November 24, 2008) |
10.1 | Employment Agreement of Pierre Quilliam dated January 1, 2011 (incorporated by reference to the Form 10-K filed March 31, 2011) |
10.2 | Employment Agreement of Allan Breitkreuz dated January 1, 2011 (incorporated by reference to the Form 10-K filed March 31, 2011) |
10.3 | Lease Agreement between Goldcorp Holdings Co. and Silver Falcon Mining, Inc., dated October 11, 2007 (incorporated by reference to the Form 10 Registration Statement filed November 24, 2008) |
10.4 | Employment Agreement of Christian Quilliam dated January 1, 2011 (incorporated by reference to the Form 10-K filed March 31, 2011) |
10.5 | Employment Agreement of Thomas Ridenour dated January 1, 2011 (incorporated by reference to the Form 10-K filed March 31, 2011) |
10.6 | Employment Agreement of Denise Quilliam dated January 1, 2011 (incorporated by reference to the Form 10-K filed March 31, 2011) |
10.7 | Employment Agreement of D. Roger Scammell (incorporated by reference to the Form 8-K filed January 26, 2011) |
10.8 | Amendment to Lease between GoldLand Holdings Co. and Silver Falcon Mining, Inc., dated January 21, 2011 (incorporated by reference to the Form 8-K filed January 26, 2011) |
10.9 | 2010 Employee, Consultant and Advisor Stock Compensation Plan (incorporated by reference to the Form S-8 filed December 20, 2010) |
10.10 | Form on Stock Payment Agreement (incorporated by reference to the Form S-8 filed December 20, 2010) |
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10.11 | 2010 Stock Option Plan (incorporated by reference to the Form S-8 filed December 20, 2010) |
10.12 | Form of Stock Option Agreement (incorporated by reference to the Form S-8 filed December 20, 2010) |
10.13 | Amendment to Amendment to Lease dated March 24, 2011 |
11** | Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends |
31.1* | Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 |
31.2* | Certification Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934 |
32.1* | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2* | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
*
Filed herewith.
**
Included within financial statements.
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