ITEM 1. FINANCIAL STATEMENTS
The un-audited quarterly financial statements for the period ended August 31,
2007, prepared by the company, immediately follow.
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Rite Time Mining, Inc.
(A development stage company)
Balance Sheet
As of As of
quarter ended Year Ended
8/31/2007 11/30/06
--------- --------
Audited
ASSETS
Current Assets
Cash $ 23,638 $ 4,854
-------- --------
Total Current Assets 23,638 4,854
Fixed Asstes
Total Fixed Assets -- --
-------- --------
Total Assets $ 23,638 $ 4,854
======== ========
LIABILITIES
Current Liabilities $ 5,000 $ --
-------- --------
Total Current Liabilities 5,000 --
-------- --------
Long term Liabilities -- --
-------- --------
Total Liabilities $ 5,000 $ --
======== ========
EQUITY
Additional Paid in Capital $ 29,750 $ 6,000
Common Stock par value 0.001 per share, 75,000,000
Shares authorized 2,750,000 shares Issued and outstanding 2,750 1,500
Retained Earnings (2,646) (13,862)
Net Income (11,216) --
-------- --------
Total Stockholders Equity 18,638 (6,362)
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 23,638 $ (6,362)
======== ========
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The accompanying notes are an integral part of these financial statements.
3
Rite Time Mining, Inc.
(A development stage company)
Income Statement
Inception Through
Current Quarter
Three Months Ended Nine Months Ended Ended
8/31/2007 8/31/2007 8/31/2007
----------- ----------- -----------
Revenue $ -- $ -- $ --
----------- ----------- -----------
Expenses
Accounting & Legal Fees 1,100 4,000 4,000
Bank Service Charge 36 148 172
Incorporation 850
Licenses and Permits 100 200
Minersl Expenditures 750 4,250 5,660
Office Expense 365 1,369 1,635
Professional Fees 850 850
Transfer Agent fees 500 500
----------- ----------- -----------
Total Expenses 2,251 11,217 13,867
Other Income (expenses)
Recognition of an Impairment Loss
(Mineral Claims) -- -- --
----------- ----------- -----------
Income
Interest Income -- 1 5
----------- ----------- -----------
Net Income (Loss) $ (2,251) $ (11,216) $ (13,862)
=========== =========== ===========
Basic & Diluted (Loss) per Share $ -- $ --
=========== ===========
Weighted Average Number of Shares 2,750,000 2,202,682
=========== ===========
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The accompanying notes are an integral part of these financial statements.
4
Rite Time Mining, Inc.
(A development stage company)
Statement of Stockholder's Equity
From Inception May 3, 2006 to Current quarter ended August 31, 2007
Deficit
Accumulated
During
Common Stock Paid in Development Total
Shares Amount Capital Stage Equity
------ ------ ------- ----- ------
Shares issued to founders at
$0.005 per share, par value .0001 1,500,000 $ 1,500 $ 6,000 $ $ 7,500
Net (Loss) for period (2,646) (2,646)
---------- ------- ------- -------- --------
Balance, November 30, 2006 1,500,000 1,500 6,000 (2,646) 4,854
Common Shares issued for Cash
between 12/1/2006 to 2/28/2007
No shares were issued this period -- -- --
Net (Loss) (6,780) (6,780)
---------- ------- ------- -------- --------
BALANCE, FEBRUARY 28, 2007 1,500,000 1,500 6,000 (9,426) (1,926)
Common Shares issued for Cash
between 3/1/2007 to 5/31/2007 1,250,000 1,250 23,750 25,000
Net (Loss) (2,185) (2,185)
---------- ------- ------- -------- --------
BALANCE, MAY 31, 2007 2,750,000 2,750 29,750 (11,611) 20,889
Common Shares issued for Cash
between 6/1/2007 to 8/31/2007
Net (Loss) (2,251) (2,251)
---------- ------- ------- -------- --------
BALANCE, AUGUST 31, 2007 2,750,000 $ 2,750 $29,750 $(13,862) $ 18,638
========== ======= ======= ======== ========
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The accompanying notes are an integral part of these financial statements.
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Rite Time Mining, Inc.
(A development stage company)
Statement of Cash Flows
Inception Through
Current Quarter
Three Months Ended Nine Months Ended Ended
8/31/2007 8/31/2007 8/31/2007
----------- ----------- -----------
CASH FLOW FROM OPERATING ACTIVITIES
Net Income (Loss) $ (2,251) $(11,216) $(13,862)
-------- -------- --------
NET CASH FROM OPERATING ACTIVITIES (2,251) (11,216) (13,862)
Net Cash After Operating Activities (2,251) (11,216) (13,862)
CASH FLOW FROM INVESTING ACTIVITIES
NET CASH FROM FINANCING ACTIVITIES -- 5,000 5,000
-------- -------- --------
Net Cash after Operating and Financial Activities (2,251) (6,216) (8,862)
CASH FLOW FROM FINANCING ACTIVITIES
Shares Issued at Founders, @ $0.005 Per Share -- -- 7,500
1,250,000 Shares Issued @ .02 Per Share -- 25,000 25,000
-------- -------- --------
NET CASH FROM INVESTING ACTIVITIES -- 25,000 32,500
Net Cash After Operating, Financial and
Investing Activities (2,251) 18,784 23,638
-------- -------- --------
Cash at Beginning of Period 25,889 4,854 --
-------- -------- --------
CASH AT END OF PERIOD $ 23,638 $ 23,638 $ 23,638
======== ======== ========
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The accompanying notes are an integral part of these financial statements.
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RITE TIME MINING CORP.
(AN EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
August 31, 2007
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Rite Time Mining Corp. (the Company) was incorporated on May 3, 2006 under the
laws of the State of Nevada. The Company is primarily engaged in the acquisition
and exploration of mining properties.
The Company has been in the exploration stage since its formation and has not
yet realized any revenues from its planned operations. Upon the location of
commercially mineable reserves, the Company plans to prepare for mineral
extraction and enter the development stage.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Company reports revenue and expenses using the accrual method of accounting
for financial and tax reporting purposes.
USE OF ESTIMATES
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities, and the reported revenues
and expenses.
PRO FORMA COMPENSATION EXPENSE
No stock options have been issued by Rite Time Mining Corp. Accordingly; no pro
forma compensation expense is reported in these financial statements.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS
The Company expenses all costs related to the acquisition and exploration of
mineral properties in which it has secured exploration rights prior to
establishment of proven and probable reserves. To date, the Company has not
established the commercial feasibility of any exploration prospects; therefore,
all costs are being expensed.
DEPRECIATION, AMORTIZATION AND CAPITALIZATION
The Company records depreciation and amortization, when appropriate, using both
straight-line and declining balance methods over the estimated useful life of
the assets (five to seven years). Expenditures for maintenance and repairs are
charged to expense as incurred. Additions, major renewals and replacements that
increase the property's useful life are capitalized. Property sold or retired,
7
RITE TIME MINING CORP.
(AN EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
August 31, 2007
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
together with the related accumulated Depreciation is removed from the
appropriate accounts and the resultant gain or loss is included in net income.
INCOME TAXES
The Company accounts for its income taxes in accordance with Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes". Under
Statement 109, a liability method is used whereby deferred tax assets and
liabilities are determined based on temporary differences between basis used for
financial reporting and income tax reporting purposes. Income taxes are provided
based on tax rates in effect at the time such temporary differences are expected
to reverse. A valuation allowance is provided for certain deferred tax assets if
it is more likely than not, that the Company will not realize the tax assets
through future operations.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial accounting Standards Statement No. 107, "Disclosures about Fair Value
of Financial Instruments", requires the Company to disclose, when reasonably
attainable, the fair market values of its assets and liabilities which are
deemed to be financial instruments. The Company's financial instruments consist
primarily of cash and certain investments.
INVESTMENTS
Investments that are purchased in other companies are valued at cost less any
impairment in the value that is other than temporary in nature.
PER SHARE INFORMATION
The Company computes per share information by dividing the net loss for the
period presented by the weighted average number of shares outstanding during
such period.
NOTE 3 - PROVISION FOR INCOME TAXES
The provision for income taxes for the period ended August 31, 2007 represents
the minimum state income tax expense of the Company, which is not considered
significant.
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RITE TIME MINING CORP.
(AN EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
August 31, 2007
NOTE 4 - COMMITMENTS AND CONTINGENCIES
LITIGATION
The Company is not presently involved in any litigation.
NOTE 5 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Recently issued accounting pronouncements will have no significant impact on the
Company and its reporting methods.
NOTE 6 - GOING CONCERN
Future issuances of the Company's equity or debt securities will be required in
order for the Company to continue to finance its operations and continue as a
going concern. The Company's present revenues are insufficient to meet operating
expenses.
The consolidated financial statements of the Company have been prepared assuming
that the Company will continue as a going concern, which contemplates, among
other things, the realization of assets and the satisfaction of liabilities in
the normal course of business. The Company has incurred cumulative net losses of
$ 13,862 since its inception and requires capital for its contemplated
operational and marketing activities to take place. The Company's ability to
raise additional capital through the future issuances of common stock is
unknown. The obtainment of additional financing, the successful development of
the Company's contemplated plan of operations, and its transition, ultimately,
to the attainment of profitable operations are necessary for the Company to
continue operations. The ability to successfully resolve these factors raise
substantial doubt about the Company's ability to continue as a going concern.
The consolidated financial statements of the Company do not include any
adjustments that may result from the outcome of these aforementioned
uncertainties.
NOTE 7 - RELATED PARTY TRANSACTIONS
Linda Farrell, the sole officer and director of the Company may, in the future,
become involved in other business opportunities as they become available, thus
she may face a conflict in selecting between the Company and her other business
opportunities. The Company has not formulated a policy for the resolution of
such conflicts.
While the Company is seeking additional capital, Ms. Farrell has advanced funds
to the Company to pay for any costs incurred by it. These funds are interest
free. The balance due Ms. Farrell was $5,000 on August 31, 2007.
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RITE TIME MINING CORP.
(AN EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
August 31, 2007
NOTE 8 - STOCK TRANSACTIONS
Transactions, other than employees' stock issuance, are in accordance with
paragraph 8 of SFAS 123. Thus issuances shall be accounted for based on the fair
value of the consideration received. Transactions with employees' stock issuance
are in accordance with paragraphs (16-44) of SFAS 123. 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.
On August 4, 2006 the Company issued a total of 1,500,000 shares of common stock
to one director for cash in the amount of $0.005 per share for a total of
$7,500.
On March 29, 2007 the Company issued a total of 795,000 shares of common stock
for cash in the amount of $0 .02 per share for a total of $15,900.
On April 3, 2007 the Company issued a total of 80,000 shares of common stock for
cash in the amount of $0 .02 per share for a total of $1,600.
On April 4, 2007 the Company issued a total of 200,000 shares of common stock
for cash in the amount of $0 .02 per share for a total of $4,000
On April 16, 2007 the Company issued a total of 175,000 shares of common stock
for cash in the amount of $0 .02 per share for a total of $3,500
As of August 31, 2007 the Company had 2,750,000 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 August 31. 2007:
Common stock, $ 0.001 par value: 75,000,000 shares authorized; 2,750,000 shares
issued and outstanding.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
RESULTS OF OPERATIONS
We are still in our exploration stage and have generated no revenues to date.
We incurred operating expenses of $2,251 for the three months ended August 31,
2007. 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 periodic reports.
As of August 31, 2007 there was $5,000 owed to the officer and director of the
company, for which there is no specific terms of repayment.
Our net loss from inception through August 31, 2007 was $11,216.
Our auditors have issued a going concern opinion. This means that there is
substantial doubt that we can continue as an on-going business for the next
twelve months unless we obtain additional capital to pay our bills. This is
because we have not generated revenues and no revenues are anticipated until we
begin removing and selling minerals. There is no assurance we will ever reach
that point.
LIQUIDITY AND CAPITAL RESOURCES
Our current cash balance is $23,638. If we experience a shortage of funds during
our exploration stage our director has informally agreed to advance funds to
allow us to pay for operating expenses and filing fees for our required reports,
however our director has no formal commitment, arrangement or legal obligation
to advance or loan funds to us.
We registered 1,250,000 shares of our common stock pursuant to an SB-2
Registration Statement filed with the SEC under file number 333-140900. The
registration statement became effective on March 19, 2007. During March and
April 2007 we completed the offering for total proceeds of $25,000.
Prior to the offering we had sold $7,500 in equity securities to our director to
pay for our operations.
OFF-BALANCE SHEET ARRANGEMENTS
We have no off-balance sheet arrangements.
PLAN OF OPERATION
The consulting geologist, James McLeod completed the field work required for
Phase 1 of our exploration program on the Jeannie 1-4 Mineral Claims in August
2007. He is currently awaiting the results from the assay laboratory and will
then prepare his report and recommendations for further exploration. The cost of
Phase 1 is $7,000. In addition to the Phase 1 costs, we anticipate spending an
additional $13,000 on professional fees, including fees payable in connection
with complying with reporting obligations, and general administrative costs.
Total expenditures over the next 12 months are therefore expected to be
approximately $20,000.
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If the results of Phase 1 are favorable, we intend to proceed with phase two of
our exploration program if we are able to raise the funds necessary. The
estimated cost of this program is $14,000 and will take approximately 10 days to
complete and an additional two months for the consulting geologist to receive
the results from the assay lab and prepare his report.
PHASE 2
Magnetometer and VLF electromagnetic, grid controlled
surveys over the areas of interest determined by the Phase
1 survey. Included in this estimated cost is
transportation, accommodation, board, grid installation,
two geophysical surveys, maps and report $ 14,000
Following phase two of the exploration program, if it proves successful in
identifying mineral deposits, we intend to proceed with phase three of our
exploration program if we are able to raise the funds necessary. The estimated
cost of this program is $40,000 and will take approximately 2 weeks to complete
and an additional two months for the consulting geologist to receive the results
from the assay lab and prepare his report.
PHASE 3
Induced polarization survey over grid controlled anomalous
areas of interest outlined by Phase 1&2 fieldwork. Hoe or
bulldozer trenching, mapping and sampling of bedrock
anomalies. Includes assays, detailed maps and reports $ 40,000
Subject to financing, we anticipate commencing the second phase of our
exploration program in spring 2008 and the third phase in summer 2008. We have a
verbal agreement with James McLeod, the consulting geologist who prepared the
geology report on our claim, to retain his services for the second and third
phases of the exploration program. We will require additional funding to proceed
with phase two and any subsequent work on the claim, we have no current plans on
how to raise the additional funding.
CRITICAL ACCOUNTING POLICIES
The un-audited financial statements as of August 31, 2007 included herein have
been prepared without audit pursuant to the rules and regulations of the U.S.
Securities and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with general
accepted accounting procedures have been condensed or omitted pursuant to such
rules and regulations. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. It is suggested that these financial statements be read in
conjunction with our November 30, 2006 audited financial statements and notes
thereto, which can be found in our Form SB-2 Registration Statement on the SEC
website at www.sec.gov under our SEC File Number 333-140900.
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The financial statements of the Company have been prepared in accordance with
generally accepted accounting principles in the United States. Because a precise
determination of many assets and liabilities is dependent upon future events,
the preparation of financial statements for a period necessarily involves the
use of estimates which have been made using careful judgment.
BASIS OF PRESENTATION
The Company reports revenue and expenses using the accrual method of accounting
for financial and tax reporting purposes.
USE OF ESTIMATES
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities, and the reported revenues
and expenses.
PRO FORMA COMPENSATION EXPENSE
No stock options have been issued by Rite Time Mining Corp. Accordingly; no pro
forma compensation expense is reported in these financial statements.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS
The Company expenses all costs related to the acquisition and exploration of
mineral properties in which it has secured exploration rights prior to
establishment of proven and probable reserves. To date, the Company has not
established the commercial feasibility of any exploration prospects; therefore,
all costs are being expensed.
DEPRECIATION, AMORTIZATION AND CAPITALIZATION
The Company records depreciation and amortization, when appropriate, using both
straight-line and declining balance methods over the estimated useful life of
the assets (five to seven years). Expenditures for maintenance and repairs are
charged to expense as incurred. Additions, major renewals and replacements that
increase the property's useful life are capitalized. Property sold or retired,
together with the related accumulated
Depreciation is removed from the appropriate accounts and the resultant gain or
loss is included in net income.
INCOME TAXES
The Company accounts for its income taxes in accordance with Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes". Under
Statement 109, a liability method is used whereby deferred tax assets and
liabilities are determined based on temporary differences between basis used for
financial reporting and income tax reporting purposes. Income taxes are provided
based on tax rates in effect at the time such temporary differences are expected
to reverse. A valuation allowance is provided for certain deferred tax assets if
it is more likely than not, that the Company will not realize the tax assets
through future operations.
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FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial accounting Standards Statement No. 107, "Disclosures about Fair Value
of Financial Instruments", requires the Company to disclose, when reasonably
attainable, the fair market values of its assets and liabilities which are
deemed to be financial instruments. The Company's financial instruments consist
primarily of cash and certain investments.
INVESTMENTS
Investments that are purchased in other companies are valued at cost less any
impairment in the value that is other than temporary in nature.
PER SHARE INFORMATION
The Company computes per share information by dividing the net loss for the
period presented by the weighted average number of shares outstanding during
such period.
FORWARD LOOKING STATEMENTS
Some of the statements contained in this Form 10-QSB that are not historical
facts are "forward-looking statements" which can be identified by the use of
terminology such as "estimates," "projects," "plans," "believes," "expects,"
"anticipates," "intends," or the negative or other variations, or by discussions
of strategy that involve risks and uncertainties. We urge you to be cautious of
the forward-looking statements, that such statements, which are contained in
this Form 10-QSB, reflect our current beliefs with respect to future events and
involve known and unknown risks, uncertainties and other factors affecting our
operations, market growth, services, products and licenses. No assurances can be
given regarding the achievement of future results, as actual results may differ
materially as a result of the risks we face, and actual events may differ from
the assumptions underlying the statements that have been made regarding
anticipated events.
All written forward-looking statements made in connection with this Form 10-QSB
that are attributable to us or persons acting on our behalf are expressly
qualified in their entirety by these cautionary statements. Given the
uncertainties that surround such statements, you are cautioned not to place
undue reliance on such forward-looking statements.
The safe harbors of forward-looking statements provided by the Securities
Litigation Reform Act of 1995 are unavailable to issuers not subject to the
reporting requirements set forth under Section 13(a) or 15(D) of the Securities
Exchange Act of 1934, as amended. As we have not registered our securities
pursuant to Section 12 of the Exchange Act, such safe harbors set forth under
the Reform Act are unavailable to us.
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