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Tundra Resources Inc – ‘10KSB’ for 12/31/03

On:  Wednesday, 1/26/05, at 8:26am ET   ·   For:  12/31/03   ·   Accession #:  1117768-5-9   ·   File #:  0-31661

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 1/26/05  Tundra Resources Inc              10KSB      12/31/03    3:110K                                   123EDGARDIRECT Inc/FA

Annual Report — Small Business   —   Form 10-KSB
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10KSB       Annual Report -- Small Business                     HTML    104K 
 2: EX-31       Certification per Sarbanes-Oxley Act (Section 302)  HTML      9K 
 3: EX-32       Certification per Sarbanes-Oxley Act (Section 906)  HTML      5K 


10KSB   —   Annual Report — Small Business


This is an HTML Document rendered as filed.  [ Alternative Formats ]



  Form 10-KSB  

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-KSB

Mark One

[X]          ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
                EXCHANGE OF 1934

FOR THE FISCAL YEAR ENDED: December 31, 2003

OR

[ ]            TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
                EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO N/A

COMMISSION FILE NUMBER:  000-31661

TUNDRA RESOURCES, INC.

(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)

NEVADA

88-0421134

STATE OF INCORPORATION

(I.R.S. EMPLOYER IDENTIFICATION NUMBER)

1350 East Flamingo Road
Suite 688
Las Vegas, Nevada  89119

(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES INCLUDING (ZIP CODE)

(702) 289-6665

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:  NONE

Securities registered pursuant to Section 12(g) of the Act:  NONE

Indicate by check mark whether the Registration (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 files such reports), and (2) has been subject to such filing requirements for the past 90 days. (1) X YES as to filing;  (2) X Yes as to requirement.

As of December 31, 2003, and extended to the filing date of this Report, the aggregate value of the voting stock held by non-affiliates of the Registrant, computed by  reference  to the average of the bid and ask price on such date was $0.00 as the Registrant has no current trading market.

As of December 31, 2003, and currently, the Registrant has outstanding approximately 1,665,830 shares of common stock ($.001 par value).



TABLE OF CONTENTS TO ANNUAL REPORT

ON FORM 10-KSB

YEAR ENDED DECEMBER 31, 2003

PART I

Page Number

Item 1.

Description of Business

Item 2.

Description of Property

Item 3.

Legal Proceedings

Item 4.

Submission of matters to a Vote of Security Holders

PART II

Item 5.

Market for Registrant's Common Equity & Related Stockholders' Matters

Item 6.

Management's Discussion & Analysis of Financial Condition & Results of Operations

Item 7.

Financial Statements

Item 8.

Changes in and Disagreements with Accountants on Accounting & Financial Disclosure

PART III

Item 9.

Directors & Executive Officers, Promoters & Control Persons, Compliance with Section 16 (a) of the Exchange Act

Item 10.

Executive Compensation

Item 11.

Security Ownership of Certain Beneficial Owners & Management

Item 12.

Certain Relationships & Related Transactions

Item 13.

Exhibits & Reports on Form 8-K


PART I.

ITEM 1.  DESCRIPTION OF BUSINESS

A.            GENERAL

Tundra Resources, Inc. is a Nevada corporation formed on December 31, 1998.  Its principal place of business is located at, 1350 East Flamingo Road, Suite 688, Las Vegas, NV 89119.

Business of Issuer

TUNDRA RESOURCES, INC. was organized to engage in any lawful corporate business, including but not limited to, exploration, development, production and sale of oil and gas and secondarily in the development of mineral properties.  The primary activity of TUNDRA RESOURCES, INC. currently involves the procurement of mineral leasehold interest in Arizona.  The Company has no current business operations.

EMPLOYEES

The Company has no full time employees.  The Company's President has agreed to allocate a portion of his time to the activities of the Registrant, without compensation.  The President anticipates that the business plan of the Company can be implemented by his devoting approximately 10 hours per month to the business affairs of the Company and, consequently, conflicts of interest may arise with respect to the limited time commitment by such officer.

ITEM 2.  DESCRIPTION OF PROPERTIES

The Company has no significant assets, property, or operating capital.

ITEM 3.  LEGAL PROCEEDINGS

The Company is not a party to, nor are its properties the subject of, any pending legal proceedings and no such proceedings are known to the Company to be threatened or contemplated by or against it.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matter was submitted to a vote of the security holders during the 4th quarter of the fiscal year covered by this report.  A notice of the completed reorganization, as described above, was mailed to all shareholders of record.

PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY & RELATED STOCKHOLDER MATTERS

Market Information

To the knowledge of current management, there is no public trading market for the Company's common stock.

Holders

At December 31, 2003, there were approximately 88 holders of record of the Company's common stock.  As of December 31, 2003, there were approximately 1,665,830 shares outstanding.


Dividends

The Company has not declared any cash dividends within the past two years on its common stock. The Company does not anticipate or contemplate paying dividends in the foreseeable future.  It is the present intention of management to utilize available funds, if any, for the development of the Company's business.

ITEM 6.  MANAGEMENT'S  DISCUSSION & ANALYSIS OF FINANCIAL  CONDITION & RESULTS

OF OPERATIONS

Forward-Looking Statements

The discussion in this Report on Form 10-KSB contains forward-looking statements that have been made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business, based on management's current beliefs and assumptions made by management. Words such as "expects", "anticipates", "intends", "believes", "plans", "seeks", "estimates" and similar expressions or variations of these words are intended to identify such forward-looking statements. Additionally, statements that refer to the Company's estimated or anticipated future results, sales or marketing strategies, new product development or performance or other non-historical facts are forward-looking and reflect the Company's current perspective based on existing information. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict.  Therefore, actual results and outcomes may differ materially from what is expressed or forecasted in any such forward-looking statements.  Such risks and uncertainties include those set forth herein below under "Risk Factors That May Affect Future Results of Operations" as well as previous public filings with the Securities and Exchange Commission. The discussion of the Company's financial condition and results of operations should also be read in conjunction with the financial statements and related notes included in Item 1 of this quarterly report.  The Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Results of Operations

The Company has had no operations during this quarter.  Management discussions centered on the need for additional financing.  Due to an earlier set back resulting from the nature of short selling by brokers on the pink sheet market the Company has resolved that it should file all its Securities and Exchange Commission delinquent quarterly and annual filings and ultimately seek application to the OTCBB market.  There is no guaranty that the Company will be able to achieve this endeavor, however, Management is working hard towards this goal.  The OTCBB market exposure should enable the Company to raise additional capital which is vital for its continued operations.

ITEM 7.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company does not have any material risk with respect to changes in foreign currency exchange rates, commodities prices or interest rates. The Company does not believe that it has any other relevant market risk with respect to the categories intended to be discussed in this item of this Report.

ITEM 8.   CONTROLS AND PROCEDURES

The Company's Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934, as amended) as of September 30, 2003, (the "Evaluation Date"), have concluded that, as of the Evaluation Date, the Company's disclosure controls and procedures were effective to ensure the timely collection, evaluation, and disclosure of information relating to the Company that would potentially be subject to disclosure under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated under the Act. There were no significant changes in the Company's internal controls or in other factors that could significantly affect the internal controls subsequent to the Evaluation Date.

ITEM 9.  FINANCIAL STATEMENTS

The following are the audited financial statements.

TUNDRA RESOURCES, INC.
  (A PRE-EXPLORATION STAGE COMPANY)
FINANCIAL STATEMENTS
DECEMBER 31, 2003 AND 2002

 

 

 

 



TUNDRA RESOURCES, INC.
  (A PRE-EXPLORATION STAGE COMPANY)
INDEX TO FINANCIAL STATEMENTS
 

Page(s)

Report of Independent Registered Public Accounting Firm – 2003

1

Independent Auditors’ Report – 2002

2

Balance Sheets as of December 31, 2003 and 2002

3

Statements of Operations for the Years Ended December 31, 2003 and 2002
with Cumulative Totals Since Inception

4

Statement of Changes in Stockholders’ Deficit for the Period December 31, 1998
(Inception) to December 31, 2003

5

Statements of Cash Flows for the Years Ended December 31, 2003 and 2002
with Cumulative Totals Since Inception

6

Notes to Financial Statements

7-12




BAGELL, JOSEPHS & COMPANY, L.L.C.
Certified Public Accountants
High Ridge Commons
Suites 400-403
200 Haddonfield Berlin Road
Gibbsboro, New Jersey 08026
(856) 346-2828  Fax (856) 346-2882

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors
Tundra Resources, Inc.
Las Vegas, Nevada

We have audited the accompanying balance sheet of Tundra Resources, Inc. as of December 31, 2003 and the related statements of operations, changes in stockholders’ (deficit), and cash flows for the year then ended with cumulative totals since inception, December 31, 1998.  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 audit.

We have conducted our audit in accordance with auditing standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 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.  We believe that our audit provides a reasonable basis for our opinion.

The accompanying financial statements for the year ended December 31, 2003 have been prepared assuming that the Company will continue as a going concern.   As discussed in Note 5 to the financial statements, the Company has sustained operating losses and capital deficits that raise substantial doubt about its ability to continue as a going concern.  Management’s operating and financing plans in regard to these matters are also discussed in Note 5.  The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tundra Resources, Inc. as of December 31, 2003 and the results of its operations, changes in stockholders’ (deficit) and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

BAGELL, JOSEPHS & COMPANY, L.L.C.

BAGELL, JOSEPHS & COMPANY, L.L.C.
Certified Public Accountants|
Gibbsboro, New Jersey

October 3, 2004

                                                MEMBER OF:         AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
                                                                                NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
                                                                                PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

                         


1

David E. Coffey,        6767 W. Tropicana Ave., Suite 216, Las Vegas, NV 89103
Certified Public Accountant                             Phone (702) 871-3979 FAX (702) 871-6769

INDEPENDENT ACCOUNTANTS REPORT

To the Board of Directors and Stockholders
of Tundra Resources, Inc.
Las Vegas, Nevada

I have audited the accompanying balance sheets of Tundra Resources, Inc. (a pre-exploration stage company) as of December 31, 2002 and December 31, 2001 and the related statements of operations, cash flows and changes in stockholders’ equity for the periods then ended, as well as the cumulative period from December 31, 1998 (date of inception) to December 31, 2002. These statements are the responsibility of Tundra Resources, Inc.’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about 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. I believe that my audit provides a reasonable basis for my opinion.

In my opinion, the accompanying financial statements present fairly, in all material aspects, the financial position of Tundra Resources, Inc. as of December 31, 2002 and December 31, 2001 and the results of operations, cash flows, and changes in stockholders’ equity for the years then ended, as well as the cumulative period from December 31, 1998 (date of inception) through December 31, 2002, in conformity with generally accepted accounting principles.

David E. Coffey, C.P.A.
Las Vegas, Nevada
January 31, 2003


2

TUNDRA RESOURCES, INC.
(A PRE-EXPLORATION STAGE COMPANY)
BALANCE SHEET
DECEMBER 31, 2003 AND 2002

ASSETS

2003

2002

Current Assets

  Cash and cash equivalents

  $                -  

  $        3,884

  Loans to stockholders

           15,659

         12,364

    Total Current Assets

           15,659

         16,248

   Notes receivable and accrued interest

         325,227

       307,132

TOTAL ASSETS

  $      340,886
=========

  $    323,380
========

  

  

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Current Liabilities

  Accounts payable and accrued expenses

  $        12,975

  $        6,900

      Total Current Liabilities

           12,975

           6,900

      Total Liabilities

           12,975

           6,900

STOCKHOLDERS' EQUITY

 

Common stock, par value $.001, 50,000,000 shares authorized and  1,665,830 shares issued and outstanding

             1,666

           1,666

  Additional paid-in capital

         549,978

       549,978

  Deficit accumulated during the development stage

        (223,733)

      (235,164)

      Total Stockholders' Equity

         327,911

       316,480

TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)

  $      340,886
=========

  $     323,380
========

The accompanying notes are an integral part of these financial statements.


3


TUNDRA RESOURCES, INC.
( A PRE-EXPLORATION STAGE COMPANY )
STATEMENTS OF OPERATIONS
FOR YEARS ENDED DECEMBER 31, 2003 AND 2002
(WITH CUMULATIVE TOTALS SINCE INCEPTION)



               2003    



     2002    

Cumulative Totals
December 31, 1998 to
December 31, 2003

INCOME

  $                   -

  $                   -

  $                           -  

OPERATING EXPENSES

     Organizational expenses

                       -

                      -

400

     Consulting

                      -

            93,000

217,000

     Research and development

                      -

                      -

2,000

     Office expenses

                 590

                 175

1,444

     Service fees

                   75

                 950

1,025

     Rent

                      -

              1,065

3,776

     Administrative and secretarial

                      -

                      -

11,250

     Licenses and fees

                      -

                      -

1,229

     Professional fees

              6,000

              6,000

30,195

       Total Operating Expenses

              6,665

          101,190

          268,319

OTHER INCOME

Interest, net

            18,096

            18,304

44,586

      Total other income

            18,096

            18,304

44,586

NET INCOME (LOSS) APPLICABLE TO COMMON SHARES

  $         11,431
==========

  $        (82,886)
===========

  $       (223,733)
===========

NET INCOME (LOSS) PER BASIC AND DILUTED SHARES

  $         0.0069
=========

  $        (0.0499)
==========

    WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

1,665,830
=========

1,661,663
==========

The accompanying notes are an integral part of these financial statements.


4


TUNDRA RESOURCES, INC.
(A PRE-EXPLORATION STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FROM DECEMBER 31, 1998, (Inception) TO DECEMBER 31, 2003

Common Stock

Additional
Paid-in
Capital

Deficit accumulated
during the
pre-exploration stage

Stockholders’
Equity

Shares

Amount


December  31, 1998 (Inception)

-

-

-

-

-

Issuance of common stock for cash, December 31, 1998

200,000

$

200

$

-

$

-

$

200

Less net loss

                 -

             -

              -

                (400)

           (400)

Balance, December 31, 1998

      200,000

         200

              -

                (400)

           (200)

Issuance of common stock for cash, May 18, 1999

300,000

300

29,700

-

30,000

Less offering costs

-

-

(7,750)

-

(7,750)

Less net loss

                 -

             -

               -

            (4,814)

       (4,814)

Balance, December 31, 1999

     500,000

         500

      21,950

            (5,214)

        17,236

Issuance of common stock for cash, January 27, 2000

250,000

250

24,750

-

25,000

Issuance of common stock for cash, February 14, 2000

4,000

4

396

-

400

Issuance of common stock for cash, June 30, 2000

196,000

196

19,404

-

19,600

Issuance of common stock for cash, July 28, 2000

250,000

250

24,750

-

25,000

Issuance of common stock for cash, August 24, 2000

28,830

29

28,801

-

28,830

Issuance of common stock for cash, Sept. 22, 2000

1,000

1

999

-

1,000

Less offering costs

-

-

(6,636)

-

(6,636)

Less net loss

               -

             0

              0

          (46,311)

     (46,311)

Balance, December 31, 2000

1,229,830

      1,230

   114,414

          (51,525)

        64,119

Issuance of common stock for cash, March 2, 2001

14,000

14

13,986

0

14,000

Issuance of common stock for cash, April 19, 2001

25,000

25

24,975

0

25,000

Issuance of common stock for cash, Sept. 13, 2001

25,000

25

24,975

0

25,000

Issuance of common stock for cash, Sept. 28, 2001

300,000

300

299,700

0

300,000

Issuance of common stock for cash, Oct. 4, 2001

22,000

22

21,978

0

22,000

Less net loss

              -

             -

                 -

       (100,753)

     (100,753)

Balance, December 31, 2001

1,615,830

1,616

500,028

(152,278)

349,366

Issuance of common stock for cash, January 23, 2002

50,000

50

49,950

-

50,000

Less net loss

               -

               -

                 -

     (82,886)

      (82,886)

Balance, December 31, 2002

1,665,830

        1,666

      549,978

     (235,164)

     316,480

Add net income

              -

               -

                  -

         11,431

         11,431

Balance, December 31, 2003

1,665,830
=======

$

1,666
=======

$

549,978
=========

$

(223,733)
=========

$

327,911
=========

The accompanying notes are an integral part of these financial statements.


5


TUNDRA RESOURCES, INC.
(A PRE-EXPLORATION STAGE COMPANY)
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2003 AND 2002
(With Cumulative Totals From Inception)

2003

2002

Cumulative Totals
December 31, 1998 to
December 31, 2003

CASH FLOWS FROM OPERATING ACTIVITIES

   Net income (loss)

  $   11,431

$  (82,886)

  $        (223,733)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities

  Changes in assets and liabilities

     Decrease in prepaid expenses and deposits

-

600

-

     Loans to stock holders (increase) decrease

  (3,295)

  (12,364)

(15,659)

     Increase in accounts payable and accrued expenses

      6,075

       6,000

              12,975

     Total adjustments

2,780

(5,764)

  (2,684)

     Net cash provided by (used in) operating activities

14,211

(88,650)

  (226,417)

CASH FLOWS FROM INVESTING ACTIVITIES

       Net cash (used in) investing activities

  (18,095)

(18,095)

(325,227)

CASH FLOWS FROM FINANCING ACTIVITIES

    Sale of common stock

              -

50,000

  551,644

       Net cash provided by financing activities

              -

50,000

551,644

    NET INCREASE (DECREASE) IN CASH AND
    CASH EQUIVALENTS

  (3,884)

(56,745)

-

    CASH AND CASH EQUIVALENTS -
      BEGINNING OF PERIOD

3,884

60,629

              -

CASH AND CASH EQUIVALENTS - END OF PERIOD

  $           -
=======  

  $     3,884
========

$                      -  
===========

The accompanying notes are an integral part of these financial statements.


6

TUNDRA RESOURCES, INC.
  (A PRE-EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2003 AND 2002

NOTE 1-                ORGANIZATION AND BASIS OF PRESENTATION

The Company was incorporated on December 31, 1998 under the laws of the State of Nevada.  The business purpose of the Company is to acquire and develop oil and gas leases and, secondarily, to acquire and develop mineral properties.

NOTE 2-                SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Pre-exploration Stage Company

The Company is considered to be in the pre-exploration stage as defined in Statement of Financial Accounting Standards (SFAS) No. 7, “Accounting and Reporting by Development Stage Enterprises” as interpreted by the Securities and Exchange Commission for mining companies.  The Company is devoting substantially all of its efforts to development of business plans and the acquisition of oil and gas leases and mineral properties.

Use of Estimates

The preparation of condensed financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the condensed financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents consists principally of currency on hand, demand deposits at commercial banks, and liquid investment funds having a maturity of three months or less at the time of purchase.

Start-up Costs

In accordance with the American Institute of Certified Public Accountants Statement of Position 98-5, “Reporting on the Costs of Start-up Activities”, the Company expenses all costs incurred in connection with the start-up and organization of the Company.

Common Stock Issued For Other Than Cash

Services purchased and other transactions settled in the Company's common stock are recorded at the estimated fair value of the stock issued if that value is more readily determinable than the fair value of the consideration received.


7

TUNDRA RESOURCES, INC.
  (A PRE-EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2003 AND 2002

NOTE 2-                SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
                               (CONTINUED)

Net Income or (Loss) Per Share of Common Stock

The following table sets forth the computation of basic and diluted earnings per share:

                                                                                    YEAR ENDED
                                                                                   DECEMBER 31,
                                                                               2003                 2002     

        Net Income or (loss)                                $      11,431           $  (82,886)
                                                                        =========        ========

        Weighted average common shares             1,665,830              1,665,830
         outstanding (Basic)

               Options                                                            -                            -
                Warrants                                                         -                            -

        Weighted average common shares              1,665,830              1,661,663
                                                                         ========            ========

The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

Stock-Based Compensation

The Company has adopted the disclosure provisions of Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation” ("SFAS No. 123"). SFAS No. 123 permits the Company to continue accounting for stock-based compensation as set forth in Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” ("APB Opinion No. 25"), provided the Company discloses the pro forma effect on net income and earnings per share of adopting the full provisions of SFAS No. 123. Accordingly, the Company continues to account for stock-based compensation under APB Opinion No. 25 and has provided the required pro forma disclosures.


8


TUNDRA RESOURCES, INC.
  (A PRE-EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2003 AND 2002

NOTE 2-                SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                                (CONTINUED)

Recent Accounting Pronouncements

In June 2001, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No. 141, Business Combinations,” which eliminated the pooling of interest method of accounting for all business combinations initiated after June 30, 2001 and addresses the initial recognition and measurement of goodwill and other intangible assets acquired in a business combination.  The Company adopted this accounting standard for business combinations initiated after June 30, 2001.

The Company adopted SFAS 142, Goodwill and Other Intangible Assets,” effective July 1, 2001.  SFAS 142 addresses the financial and accounting and reporting standards for the acquisition of intangible assets outside of a business combination and for goodwill (of which the Company has not recognized such intangible asset) and other intangible assets subsequent to their acquisition.  This accounting standard requires that goodwill be separately disclosed from other intangible assets in the statement of financial position, and no longer be amortized but tested for impairment on a periodic basis.  The provisions of this accounting standard also require the completion of a transitional impairment test within six months of adoption, with any impairments identified treated as a cumulative effect of a change in accounting principle.

In August 2002, the FASB issued SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets,” which supersedes SFAS No. 121 and provides a single accounting model for long-lived assets to be disposed of.  The new rules significantly change what would have to be met to classify an asset as held for sale.  In addition, more dispositions will qualify for discontinued operations treatment in the income statement as the criteria for discontinued operation presentation is changed to a component of the business rather than a segment of the business.  The Company is required to apply SFAS No. 144 as of October 1, 2003.

In April 2002, the FASB issued SFAS No. 145, “Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections”.  This statement rescinds SFAS No. 4, Reporting Gains and Losses from Extinguishment of Debt, and an amendment of that statement, SFAS No. 44, Accounting for Intangible Assets of Motor Carriers, and SFAS No. 64, Extinguishments of Debt Made to Satisfy Sinking‑Fund Requirements.  This statement amends SFAS No. 13, Accounting for Leases, to eliminate inconsistencies between the required accounting for sales‑leaseback transactions and the required accounting for certain lease modifications that have economic effects that are similar to sales‑leaseback transactions.


9


TUNDRA RESOURCES, INC.
  (A PRE-EXPLORATION STAGE COMPANY)
|NOTES TO FINANCIAL STATEMENTS (CONTINUED)
|DECEMBER 31, 2003 AND 2002

NOTE 2-                SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

                                (CONTINUED)

Recent Accounting Pronouncements (Continued)

Also, this statement amends other existing authoritative pronouncements to make various technical corrections, clarify meanings, or describe their applicability under changed conditions.  Provisions of SFAS No. 145 related to the rescissions of SFAS No. 4 were effective for the Company on November 1, 2002 and provisions affecting SFAS No. 13 were effective for transactions occurring after May 15, 2002.  The adoption of SFAS No. 145 did not have a significant impact on the Company's results of operations or financial position.

In June 2002, the FASB issued SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities”.  The statement addresses financial accounting and reporting for costs associated with exit or disposal activities and requires that a liability for a cost associated with an exit or disposal activity be recognized at fair value when the liability is incurred, rather than at the date of an entity’s commitment to an exit plan.  The provisions of SFAS No. 146 are effective for exit or disposal activities that are initiated after December 31, 2002, with early application encouraged.  The adoption of SFAS No. 146 did not have a significant impact on the Company's results of operations or financial position.

In December 2002, the FASB issued Statement No. 148, “Accounting for Stock-Based Compensation-Transition and Disclosure, an amendment of FASB Statement No. 123”(“SFAS 148”). SFAS 148 amends FASB Statement No. 123, Accounting for Stock-Based Compensation,” to provide alternative methods of transition for an entity that voluntarily changes to the fair value based method of accounting for stock-based employee compensation. It also amends the disclosure provisions of that Statement to require prominent disclosure about the effects on reported net income of an entity’s accounting policy decisions with respect to stock-based employee compensation. Finally, this Statement amends Accounting Principles Board (“APB”) Opinion No. 28, “Interim Financial Reporting”, to require disclosure about those effects in interim financial information. SFAS 148 is effective for financial statements for fiscal years ending after December 15, 2002. The Company will continue to account for stock-based employee compensation using the intrinsic value method of APB Opinion No. 25, Accounting for Stock Issued to Employees,” but has adopted the enhanced disclosure requirements of SFAS 148.


10


TUNDRA RESOURCES, INC.
  (A PRE-EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2003 AND 2002

NOTE 3-                PROVISION FOR INCOME TAXES

The Company accounts for income taxes using the liability method.

At December 31, 2003 and 2002 deferred tax assets consist of the following:

 

                                                                         2003                 2002     

        Deferred tax assets                                   67,120            70,549

        Less valuation allowance                          (67,120)         (70,549)

        Net deferred tax assets                                       -                     -
                                                                    ========        =======

Net operating losses totaling approximately $223,733 are currently available and begin to expire in 2021.

A valuation allowance has been provided for the entire deferred tax asset amount until such time that the Company demonstrates the ability to produce taxable income.

NOTE 4 -               STOCKHOLDERS’ EQUITY

Common Stock

As of December 31, 2003 and 2002, the Company has 50,000,000 shares of common stock authorized and 1,665,830 issued and outstanding.

The following details the stock transactions for the Company:

On December 31, 1998 the Company sold 200,000 shares of its common stock at $.001 per share for $200 to provide initial working capital.

On May 18, 1999 the Company sold 300,000 shares of its common stock at $.10 per share to provide further working capital and to begin its operations.

Between January and September, 2000 the Company sold a total of 700,000 shares of its common stock at $.10 per share and 29, 830 shares at $1.00 per share.  The resulting $99,830, net of $6,636 offering costs, yielded $93,194 to be used to acquire oil and gas leases and mineral properties.

Between March, 2001 and January, 2002 the Company sold a total of 436,000 shares at $1.00 per share.  The resulting $436,000 was to be used to acquire oil and gas leases and mineral properties.  The Company invested the funds in interest-bearing notes as an interim strategy.


11


TUNDRA RESOURCES, INC.
(A PRE-EXPLORATION STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2003 AND 2002

 

NOTE 4-                STOCKHOLDERS’ DEFICIT (CONTINUED)

Common Stock (Continued)

The Company’s stock has no readily determinable market price and has been valued by the Company at par value, which estimates fair value.

NOTE 5-                GOING CONCERN

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, which contemplates continuation of the Company as a going concern.  The Company has had recurring operating deficits in the past few years and has large accumulated deficits and is in the development stage and has no recurring revenues. These items raise substantial doubt about the Company’s ability to continue as a going concern.

In view of these matters, realization of the assets of the Company is dependent upon the Company’s ability to meet its financial requirements and the success of future operations.  These financial statements do not include adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

The Company’s continued existence is dependent upon its ability to generate sufficient cash flows from equity financing.

NOTE 6-                SUBSEQUENT EVENTS

On June 24, 2004, the note receivable and accrued interest were paid off. The amount paid off was $283,250 for the note receivable and $45,004 for the accrued interest.

 

 


11


ITEM 10.               CHANGES IN &  DISAGREEMENTS  WITH  ACCOUNTANTS ON ACCOUNTING &
                              FINANCIAL DISCLOSURE

On June 15, 2004, David E. Coffey, Certified Public Accountant (“Coffey”) was dismissed as the independent registered public accounting firm for Tundra Resources, Inc. (the “Company”).  Effective October 5, 2004, Bagell, Josephs & Company, LLC was appointed as the new independent registered public accounting firm for the Company.  The decision to dismiss Coffey and to appoint Bagell, Josephs & Company, LLC was recommended and approved by the Company’s Board of Directors.

Coffey reports on the Company’s financial statements for the past two fiscal year did not contain an adverse opinion, disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.  Coffey served as our independent registered public accounting firm for two years.

During the Company’s most recent fiscal year and the period from January 1, 2004 through June 15, 2004, there were no disagreements with Coffey on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Coffey, would have caused it to make reference to the subject matter of the disagreements in connection with its report; and there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-B.

The Company provided Coffey with a copy of this Item and requested that Coffey furnish the Company with a letter addressed to the Commission stating whether it agrees with the statements by the Company in this Item and, if not, stating the respects in which it does not agree.  A letter from Coffey to such effect is attached hereto as Exhibit 16.1.

During the Company’s two most recent fiscal years and through the date of this Form 8-K, the Company did not consult Bagell, Josephs & Company, LLC with respect to the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Company’s consolidated financial statements, or any other matters or reportable events listed in Items 304(a)(2)(i) and (ii) of Regulation S-B.

PART III

ITEM 11.                DIRECTORS, EXECUTIVE OFFICERS,  PROMOTERS & CONTROL PERSONS,

              COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

The Directors and Officers of the Company are as follows:

Name

Age

Positions and Offices Held

Fong Lee

46

President, Chief Executive Officer and Director

Set forth below are the names of all Directors and Executive Officers of the Company, all positions and offices with the Company held by each such person, the period during which he has served as such, and the business experience of such persons during at least the last five years:

Fong Lee.  Mr. Lee was born and educated in Beijing (Peking), China.  Mr. Lee graduated in 1981 with a Bachelor’s Degree in Science and worked for several European and Australian mining companies.  Since 1998, Mr. Lee has been a business consultant for Asian and North American companies.

Involvement in Certain Legal Proceedings

None of the director/officers have been involved in any material legal proceedings which occurred within the last five years of any type as described in Regulation S-K.

Compliance With Section 16(a) of the Exchange Act

The Company does not have a class of equity securities registered pursuant to Section 12 of the Exchange Act.  As a result, no reports are required to be filed pursuant to Section 16(a).

ITEM 12. EXECUTIVE COMPENSATION

During the last fiscal year, the Company's officer and director did not receive any salary, wage or other compensation.  During the current fiscal year the Company has no present plans or means to pay compensation to its officers and directors.

ITEM 13. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS & MANAGEMENT

The following table sets forth each person known to TUNDRA RESOURCES, INC., as of December 31, 2003, to be a beneficial owner of five percent (5%) or more of TUNDRA RESOURCES, INC.'s common stock, by TUNDRA RESOURCES, INC.'s directors individually, and by all of the TUNDRA RESOURCES, INC.'s directors and executive officers as a group.  Each person has sole voting and investment power with respect to the shares shown.

SECURITY OWNERSHIP OF BENEFICIAL OWNERS

Title of Class

Name of Owner

Shares Beneficially
Owned

Percentage of Ownership

Common

None

None

0%

SECURITY OWNERSHIP OF MANAGEMENT

Title of Class

Name of
Beneficial Owner

Amount and Nature
of Beneficial Owner

Percentage of Class

Common

None

None

0%

ITEM 15. CERTAIN RELATIONSHIPS & RELATED TRANSACTIONS

None.

ITEM 16. EXHIBITS AND REPORTS ON FROM 8-K

(a)           EXHIBITS.

EXHIBIT
NUMBER

DESCRIPTION

LOCATION

3.1

Articles of Incorporation

Incorporated by reference to Exhibit  3.1 to the Registrant's Form 10-SB Registration Statement filed on October 2, 2000

3.2

Bylaws

Incorporated by reference to Exhibit 3.2 to the Registrant's Form 10-SB Registration Statement filed on October 2, 2000

(b)           REPORTS ON FORM 8-K.

No reports on Form 8-K were filed during the year ending December 31, 2003.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunder duly authorized.

TUNDRA RESOURCES, INC.

Dated:  January 24, 2005

By: /s/ Fong Lee
             Fong Lee

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated:

SIGNATURE

TITLE

DATE

/s/Fong Lee
     Fong Lee

President, Chief Executive Officer
and Director

January 24, 2005


Dates Referenced Herein   and   Documents Incorporated by Reference

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Filed on:1/26/0510QSB
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10/5/048-K
10/3/04
6/24/04
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1/1/04
For Period End:12/31/03
10/1/03
9/30/0310QSB,  NT 10-Q
1/31/03
12/31/02NTN 10Q
12/15/02
11/1/02
5/15/0210QSB
1/23/02
12/31/0110KSB,  NT 10-K
10/4/01
9/28/01
9/13/01
7/1/01
6/30/0110QSB
4/19/01
3/2/01
12/31/0010KSB,  10KSB/A
10/2/0010SB12G
9/22/00
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