SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
CIK NO.: 0001039466
For Quarter Ended Commission File Number
June 30, 2001 000-29621
SUN RIVER MINING, INC.
-------------------
(Name of Small Business Issuer in its charter)
COLORADO 84-1384159
------------------------------------ ----------
State or other jurisdiction of IRS Employer ID Number
incorporation or organization
P. O. Box 723, Evergreen, Colorado 80437
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number: (720) 318-7339
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 the filing
requirements for at least the past 90 days.
Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
15,362,970 as of June 30, 2001
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Sun River Mining, Inc.
(Exploration Stage Company)
Consolidated Balance Sheets
(Unaudited)
June 30, September 30,
2001 2000
----------------- ------------------
ASSETS:
Current assets:
Cash $ 2 $ 2
Prepaid Expenses -
Accounts Receivable - Del Cielo 1,884 1,884
----------------- ------------------
Total current assets 1,886 1,886
----------------- ------------------
Fixed assets
Office equipment - (Net $3,062 depreciation for March, 2001, 924 1,156
and $2,446 for March, 2000) ----------------- ------------------
Total fixed assets 924 1,156
----------------- ------------------
TOTAL ASSETS $ 2,810 $ 3,042
================= ==================
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts Payable $ 70,180 $ 101,238
Accrued Expenses 375,774 330,509
Directors' Fee Payable 8,683 9,683
Notes Payable 234,109 234,003
----------------- ------------------
Total Current Liabilities 688,746 675,433
----------------- ------------------
STOCKHOLDERS' EQUITY:
Preferred Stock, par value $0.01 per share; 50,000,000
shares authorized; no shares issued and outstanding - -
Common Stock, no par value; 500,000,000 shares authorized;
15,362,970 shares issued and outstanding for December, 1,921,419 1,921,419
2000 and 15,362,970 shares issued and outstanding for
September, 2000.
Deficit accumulated during the exploratory stage (2,607,355) (2,593,810)
----------------- ------------------
Total Stockholders' Deficit (685,936) (672,391)
----------------- ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,810 $ 3,042
================= ==================
The accompanying notes are an integral part of these financial statements.
Sun River Mining, Inc.
(Exploration Stage Company)
Consolidated Statements of Operations
(Unaudited)
Feb. 25, 1997
Three-Months Ended Nine-Months Ended (Inception) to
June 30, June 30, June 30,
-------------------------- --------------------------
2001 2000 2001 2000 2001
----------- ----------- ----------- ----------- ------------
REVENUE $ - $ - $ - $ - $ -
EXPENSES:
Advertising - - - - 18,500
Bank Charges - 63 7 199 1,667
Consulting - 6,000 - 24,000 878,939
Depreciation 116 192 348 384 3,062
Directors' Fees - - - 5,378 11,983
Due Diligence - - - - 45,832
Equipment Rental - - - - 1,733
Interest 5,137 5,389 15,411 10,778 66,209
Impairment loss - - - - 923,834
Legal & Accounting 6,242 4,906 8,524 9,812 86,022
Licenses & Fees - - - - 6,220
Meals & Entertainment - - - - 4,119
Office Expenses - - - 730 13,781
Officer's Salaries - 37,500 - 90,000 380,750
Postage & Shipping - - - - 3,217
Printing - - - - 5,580
Public Relations - - - 425 85,505
Rent - - - 730 8,058
Taxes - - - 53 4,657
Telephone - 536 - 1,093 30,545
Transfer Agent Expense 375 345 1,125 845 8,246
Travel - - - 809 59,293
----------- ----------- ----------- ----------- ------------
TOTAL EXPENSES 11,870 54,931 25,415 145,236 2,647,752
EXTRAORDINARY (GAIN)
Forgiveness of Debt - (40,397) - (40,397) (40,397)
----------- ----------- ----------- ----------- ------------
NET (LOSS) $ (11,870) $ (14,534) $ (25,415) $ (104,839) $ (2,607,355)
----------- ----------- ----------- ----------- ------------
PER SHARE INFORMATION:
Weighted average number of
common shares outstanding 15,362,970 15,260,124 15,362,970 15,260,124
----------- ----------- ----------- -----------
NET LOSS PER COMMON SHARE * * * *
=========== =========== =========== ===========
* Less than $.01
The accompanying notes are an integral part of these financial statements.
Sun River Mining, Inc.
(Exploration Stage Company)
Consolidated Statement of Cash Flows
(Unaudited)
Feb. 25, 1997
Nine-Months Ended (Inception) to
June 30, June 30,
-------------------------------
2001 2000 2001
------------ ------------- -----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (25,415) $ (104,839) $ (2,600,976)
Adjustments to reconcile net loss to cash used in
operating activities:
Depreciation 348 384 3,178
Forgiveness of Debt - (40,397) (40,397)
Issuance of Common Stock for Services - - 482,700
Increase (Decrease) in Accounts Payable (54,644) 47,347 46,594
Increase (Decrease) in Accrued Liabilities 77,827 17,043 417,913
Decrease (Increase) in Accounts Rec - Shareholders 1,884 - (1,884)
Decrease (Increase) in Prepaid Expenses - - -
------------ ------------- -----------------
Net Cash Flows Used by Operations - (80,462) (1,692,872)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Fixed Assets - - (1,559)
------------ ------------- -----------------
Net Cash Flows Provided by Investing Activities - - (1,559)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Notes Payable - 53,383 217,744
Issuance of Common Stock - 27,000 1,476,689
------------ ------------- -----------------
Net Cash Flows Provided by Financing Activities - 80,383 1,694,433
Net Increase (Decrease) in Cash - (79) 2
------------ ------------- -----------------
Cash and cash equivalents - Beginning of period 2 81 -
------------ ------------- -----------------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 2 $ 2 $ 2
============ ============= =================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest $ - $ - $ -
============ ============= =================
Income Taxes $ - $ - $ -
============ ============= =================
NON-CASH TRANSACTIONS
Common stock issued in exchange for services $ - $ 40,000 482,700
============ ============= =================
The accompanying notes are an integral part of these financial statements.
Sun River Mining, Inc.
(Exploration Stage Company)
Stockholder's Equity
(Unaudited)
Deficit
Accumulated
During the
Common Stock Exploration
-----------------------------------
# of Shares Amount Stage Totals
---------------- ---------------- ---------------- ---------------
Inception - February 25, 1997 - $ - $ - $ -
Issuance of stock for cash 100,000 100 - 100
Issuance of stock for cash 111,800 111,800 - 111,800
Issuance of stock to Founders 282,200 - - -
Issuance of stock for Consolidation 8,900,000 312,106 - 312,106
Issuance of stock for cash 58,000 58,000 - 58,000
Issuance of stock for cash 47,800 47,800 47,800
Net Loss - - (193,973) (193,973)
---------------- ---------------- ---------------- ---------------
Balance - September 30, 1997 9,499,800 529,806 (193,973) 335,833
---------------- ---------------- ---------------- ---------------
Issuance of stock for compensation 30,000 30,000 - 30,000
Issuance of stock for cash 1,000,000 200,000 - 200,000
Consolidation stock cancelled (1,200,000) (50,000) - (50,000)
Issuance of stock for cash 4,000 4,000 - 4,000
Net Loss for year - - (799,451) (799,451)
---------------- ---------------- ---------------- ---------------
Balance - September 30, 1998 9,333,800 713,806 (993,424) (279,618)
---------------- ---------------- ---------------- ---------------
Issuance of stock for cash 424,670 159,367 - 159,367
Issuance of stock for compensation 800,000 40,000 - 40,000
Issuance of stock for cash 750,000 296,125 - 296,125
Issuance of stock for compensation 500,000 276,500 - 276,500
Issuance of stock for cash 150,000 70,313 - 70,313
Issuance of stock for cash & services 904,500 122,108 - 122,108
Issuance of stock for compensation 1,400,000 147,000 - 147,000
Issuance of stock for compensation 800,000 69,200 69,200
Net Loss for year (1,482,017) (1,482,017)
---------------- ---------------- ---------------- ---------------
Balance - September 30, 1999 15,062,970 1,894,419 (2,475,441) (581,022)
---------------- ---------------- ---------------- ---------------
Issuance of stock for cash 300,000 27,000 - 27,000
Net Loss for year - - (118,369) (118,369)
---------------- ---------------- ---------------- ---------------
Balance - September 30, 2000 15,362,970 1,921,419 (2,593,810) (672,391)
---------------- ---------------- ---------------- ---------------
Net Loss for period - - (13,545) (13,545)
---------------- ---------------- ---------------- ---------------
Balance - December 31, 2000 15,362,970 $1,921,419 $(2,607,355) $ (685,936)
================ ================ ================ ===============
The accompanying notes are an integral part of these financial statements.
SUN RIVER MINING, INC.
Notes to Financial Statements
June 30, 2001
(Unaudited)
NOTE 1 - PRESENTATION OF INTERIM INFORMATION:
In the opinion of the management of Sun River Mining, Inc., the accompanying
unaudited financial statements include all normal adjustments considered
necessary to present fairly the financial position as of June 30, 2001 and the
results of operations for the three-months ended June 30, 2001 and 2000, and the
nine-months ended June 30, 2001 and 2000, and cash flows for the nine-months
ended June 30, 2001. Interim results are not necessarily indicative of results
for a full year.
The financial statements and notes are presented as permitted by Form 10-Q, and
do not contain certain information included in the Company's audited financial
statements and notes for the fiscal year ended September 30, 2000, and the
reader is cautioned to review the Audited Financial Statements for the year
ended September 30, 2000 and accompanying footnotes thereto.
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2001 COMPARED TO
THE SAME PERIOD IN 2000.
The Company incurred operating expenses for the three month period of
$11,870 in 2001 compared to $54,931 in the same period in 2000. The Company
recorded a net operating loss of $(11,870) for the 2001 period as compared to
($14,534) for the same period in fiscal year 2000. In the period in 2000 the
Company had an extraordinary gain of $40,000 from the forgiveness of debt.
The Company losses will continue until business and profitable operations
are achieved. While the Company is seeking capital sources for investment, there
is no assurance that capital sources can be found. The loss per share for the
fiscal quarter was less than ($.01) in 2001 and 2000.
RESULTS OF OPERATIONS FOR THE NINE MONTH PERIOD ENDED JUNE 30, 2001 COMPARED TO
THE SAME PERIOD IN 2000.
The Company incurred operating expenses for the nine month period of
$25,415 in 2001 compared to $145,236 in the same nine month period in 2000. The
Company recorded a net operating loss of $(25,415) for the 2001 period as
compared to ($104,839) for the same period in fiscal year 2000. In the period in
2000 the Company had an extraordinary gain of $40,000 from the forgiveness of
debt.
The Company losses will continue until business and profitable operations
are achieved. While the Company is seeking capital sources for investment, there
is no assurance that capital sources can be found. The loss per share for the
period was less than ($.01) in 2001 and 2000.
LIQUIDITY AND CAPITAL RESOURCES
The Company had current assets of $1,886 and $924 in fixed assets for total
assets of $2,810 at the end of the period. The Company will be forced to make
private placements of stock in order to fund operations continuance. No
assurance exists as to the ability to make private placements of stock. At June
30, 2001, it had $1,884 in accounts receivable. The Company has current
liabilities of $688,746 which exceed current assets by approximately $686,860.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings - None.
Item 2. Changes in securities - None.
Item 3. Defaults upon senior securities - None.
Item 4. Submission of matters to a vote of security holders - None.
Item 5. Other information - None.
Item 6. Exhibits and reports on Form 8-K
(a) The following are filed as Exhibits to this
Quarterly Report. The numbers refer to the Exhibit Table of
Item 601 of Regulation S-K:
None.
(b) Reports on Form 8-K filed during the three months
ended June 30, 2001. (incorporated by reference)
None.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
Dated: December 14, 2001
SUN RIVER MINING, INC.
by:/s/Stephen B. Doppler
Stephen B. Doppler, President