UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Amendment No. 1
(Mark One)
|X| QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2006
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D)
OF THE EXCHANGE ACT
For the transition period from ________ to __________
Commission file number: 000-28481
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ANGLOTAJIK MINERALS INC.
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(Exact name of small business as specified in its charter)
NEVADA 86-0891931
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
15760 Ventura Blvd., Suite 700, Encino, California
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(Address of principal executive offices)
((818) 325-3848
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(Issuer's telephone number)
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(Former name, former address, and former fiscal year,
if changed since last report)
-i-
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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. Yes |X| No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be file
by Section 12, 13, or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by the court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
Issued and outstanding as of March 31, 2006: 51,820,458 shares
common stock, $0.001 par value
Transitional Small Business Disclosure Format (Check one): Yes [ ] No |X|
-ii-
Explanatory Note
We are filing this Amendment Number 1 to our Quarterly Report on Form 10-QSB for
the three months ended March 31, 2006, to restate the balance sheet, statement
of operations, cash flow and stock options for the quarter then ended, and to
clarify certain disclosures regarding our internal controls and procedures. See
Item 1, Financial Statements, and Item 3, Internal Controls and Procedures, for
further information.
This Amendment Number 1 to Form 10-QSB for the quarter ended March 31, 2006 does
not otherwise change or update the disclosures set forth in the Form 10-QSB as
originally filed and does not otherwise reflect events occurring after the
filing of the form 10-QSB. For a description of our business and the risk
related to our business, see our Annual Report on Form 10-KSB/A for the year
ended December 31, 2005.
PART 1 - FINANCIAL INFORMATION
Item 1 - Financial Statements
The accompanying unaudited financial statements of Anglotajik Minerals, Inc.
(the "Company"), have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB. Accordingly, these financial statements may not
include all of the information and disclosures required by generally accepted
accounting principles for complete financial statements. These financial
statements should be read in conjunction with the audited financial statements
and the notes thereto for the fiscal year ending December 31, 2005. In the
opinion of management, the accompanying unaudited financial statements contain
all adjustments necessary to fairly present the Company's financial position as
of March 31, 2006 and its results of operations and its cash flows for the three
months ended March 31, 2006.
ANGLOTAJIK MINERALS, INC.
FINANCIAL STATEMENTS
March 31, 2006
(Unaudited)
C O N T E N T S
Balance Sheets............................................ 6
Statements of Operations.................................. 7
Statements of Cash Flows.................................. 8
Notes to the Financial Statements..........................9
Anglotajik Minerals, Inc.
(A Company in the Exploration Stage)
Balance Sheets
March 31, December 31
ASSETS 2006 2005
(Unaudited) (Restated)
(Restated)
-------------- --------------
Current Assets
Cash $ 67 $ -
-------------- --------------
Other Current Assets
Advance to stockholder 2 -
-------------- --------------
Total current assets 69 -
-------------- --------------
Total assets 69 -
============== ==============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Bank overdraft $ - $ 8
Accounts payable - -
Accrued expenses 17,176 17,706
Accrued compensation 431,802 353,176
Interest payable 10,433 9,795
Note payable - current 28,343 28,343
Note payable - related party 17,548 10,828
-------------- --------------
Total current and total liabilities 505,302 419,856
-------------- --------------
Stockholders' Deficit
Common Stock, $.001 Par Value, 300,000,000 Shares Authorized;
51,820,458 Shares Issued and Outstanding, respectively 51,820 51,820
Additional paid-in capital 4,679,039 4,639,080
Deficit accumulated during exploration stage (5,236,092) (5,110,756)
-------------- --------------
Total Stockholders' Equity (505,233) (419,856)
-------------- --------------
Total liabilities and stockholders' equity $ 69 $ -
============== ==============
The accompanying notes are an integral part of these financial statements.
Anglotajik Minerals, Inc.
(A Company in the Exploration Stage)
Statements of Operations
Cumulative During
the Exploration
For the Three Month Ended Stage
March 31, March 31,
2006 2005 2006
(Restated) (Restated)
-------------- -------------- ----------------
Revenue
Operating costs and expenses
Operating and
administrative expenses $ 124,698 $ 86,199 $ 5,077,840
Depreciation expense - - 5,562
Amortization expense - - 16,500
-------------- -------------- ----------------
Total operating costs and
expenses 124,698 86,199 5,099,902
-------------- -------------- ----------------
Loss from operations (124,698) (86,199) (5,099,902)
Other income (expense)
Dividend income - - 1,212
Gain on cancellation of
contracts - - 90,604
Loss on disposal of assets - - (59,641)
-------------- -------------- ----------------
Total other income - - 32,175
-------------- -------------- ----------------
Interest expense (638) (638) (168,365)
----------------
-------------- -------------- ----------------
(125,336) (85,561) (5,236,092)
Net loss before income taxes
Provision for income taxes - - -
Net loss $ (125,336) $ (85,561) $ (5,236,092)
============== ============== ================
Loss per common share - basic $ - $ - $
Weighted average common shares -
basic $ 51,820,458 $ 51,820,458 $
The accompanying notes are an integral part of these financial statements.
Anglotajik Minerals, Inc.
(A Company in the Exploration Stage)
Statements of Cash Flows
(Unaudited)
Cumulative During
the Exploration
For the Three Month Ended Stage
March 31, March 31,
2006 2005 2006
------------- ------------- ---------------
Cash Flows from Operating Activities
Net loss $ (125,336) $ (86,199) $ (5,236,093)
Adjustment to reconcile net loss to
net cash used in operating
activities:
Relief of payables by issuance
of common stock - - 1,855,244
Expenses paid by issuance of
common stock - - 2,055,124
Amortization and depreciation
expense - - 22,062
Deferred compensation expense - - 400,000
Option Issued for employee
services 39,959 - 39,959
Gain on cancellation of
amortization - - (90,604)
Loss on disposal of assets - - 59,641
Change in assets & liabilities
Increase (decrease) in wages
payable 78,626 (320,773) 357,954
Increase in interest payable 638 638 10,4333
Increase (decrease) in related
party payable 6,718 (38,278) 17,546
Increase in accrued expense (530) (106,154) 91,025
------------- ------------- ---------------
Net Cash used in operating
activities (75) (550,766) (417,709)
------------- ------------- ---------------
Cash Flow from Investing Activities
Acquisition of assets - - (65,203)
------------- ------------- ---------------
Net cash used in investing - - (65,203)
activities
------------- ------------- ---------------
Cash Flow from Financing Activities
-----------------------------------
Proceeds received from issuance of
stock - 547,196 454,636
Proceeds received from officer
advances - 3,521 -
Proceeds from bank overdraft - - 30,591
Payment on bank overdraft (8) - (30,591)
Payment on line of credit - - (842,156)
Proceeds received from line of
credit - - 870,499
------------- ------------- ---------------
Net cash provided by 67 550,717 482,979
financing activities
------------- ------------- ---------------
Net increase in cash 67 (49) 67
The accompanying notes are an integral part of these financial statements.
Anglotajik Minerals, Inc.
(A Company in the Exploration Stage)
Statements of Cash Flows
(Unaudited)
Cash and cash equivalents at
(Inception) March 31, 2006 and
2005 - 72 -
Cash and cash equivalents at March
31, 2006 and 2005 $ 67 $ 24 $ 67
============= ============= ===============
Supplementary Information
During the years ended December 31, 2005 and 2004, no amounts were paid for
either interest or income taxes.
On October 13, 2003, the company issued 1,000,000 common shares for legal
services valued at $370,000.
In August 2003 the company issued 16,999,984 common shares to shareholders in
exchange for interest payable of $150,519.
In July 2003 the Company issued 286,713 common shares to the President to
relieve an advance of $48,773 and set up a receivable of $51,227. Also in July
2003 a $100,000 signing bonus was paid via the issuance of 279,720 common
shares.
In May 2003 the Company issued 2,797 common shares in exchange for consulting
expenses of $13,500. Also in May 2003 the Company issued 13,986 common shares to
the President pursuant to a stock option agreement, to relieve $100,000 in
officer advances and consulting fees payable.
In April 2003 the mining rights contract and the related shares were cancelled.
In June 2002 the Company issued 20,797 shares of its common stock for consulting
services of $75,000.
During the three months ending March 31, 2005 the company issued 3,916,434
restricted common shares in exchange for printing and reproductions expenses of
$35,237, as well as, 3,916,434 restricted common shares in exchange for
consulting expenses of $ 34,285. Also the company issued 24,867,132 restricted
common shares in lieu of the company's debts to the President of $386,773 for
wages payable, $47,375.66 for advance from shareholder, and $47,047 for vacation
accrued. The total amount of the debt to the President was $481,195.
Anglotajik Minerals, Inc.
(A Company in the Exploration Stage)
Notes to the Financial Statements
NOTE 1 - Summary of Significant Accounting Policies
a.Organization
Anglotajik Minerals, Inc. (the "Company") was incorporated in the State of
Nevada in August 1997, under the name Meximed Industries, Inc. In January
1999 the Company changed its name to Digital Video Display Technology
Corporation and in July 2001 to Iconet, Inc. With new management in the
middle of 2003 the company again changed its name to Anglotajik Minerals,
Inc. The Company is considered to be in the exploration stage as its
operations principally involve research and exploration, market analysis, and
other business planning activities, and no revenue has been generated from
its business activities.
These financial statements have been prepared assuming that the Company will
continue as a going concern. The Company is currently in the exploration
stage and existing cash and available credit are insufficient to fund the
Company's cash flow needs for the next year. The Company plans to raise
additional capital through private placements. The preparation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ
from those estimates.
b.Cash and cash equivalents
For purposes of the statement of cash flows, the Company considers all highly
liquid debt instruments purchased with a maturity of three months or less to
be cash equivalents. As of March 31, 2006, and 2005, the Company held no cash
equivalents.
c.Fair Value of Financial Instruments
Unless otherwise indicated, the fair values of all reported assets and
liabilities which represent financial instruments (none of which are held for
trading purposes) approximate the carrying values of such amounts.
d. Provision for Income taxes (Restated)
No provision for income taxes has been recorded due to net operating loss
carryforwards totaling over $5.2 million that will be offset against future
taxable income. Thes NOL carryforwards begin to expire in the year 2017. No
tax benefit has been reported in the financial statements because the Company
believes there is a 50% or greater chance the carryforward will expire
unused.
The deferred tax asset and the valuation account is as follows at March 31,
2006 and 2005:
March 31, March 31,
2006 2005
---------------- ----------------
(Restated)
Deferred tax asset:
Deferred noncurrent tax asset $ 1,780,272 $ 1,928,755
Valuation allowance (1,780,272) (1,928,755)
---------------- ----------------
Total - -
================ ================
e. Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying
notes. In these financial statements, assets, liabilities and earnings
involve extensive reliance on managements estimates. Actual results could
differ from those estimates.
f. Earning (loss) per share (Restated)
Net loss per share is provided in accordance with Statement of Financial
Accounting Standards (SFAS) No. 128 Earnings Per Share. Basic loss per share
for each period is computed by dividing net loss by the weighted average
number of shares of common stock outstanding during the period. Diluted loss
per share is computed in a manner consistent with that of basic loss per
share while giving effect to all potentially dilutive common shares that were
outstanding during the period. The number of additional shares is calculated
by assuming that outstanding stock options were exercised and that the
proceeds from such exercises were used to acquire shares of common stock at
the average market price during the reporting period. The weighted averages
for the years ended December 31, 2003, and 2002, and from inception reflect
the reverse stock split of 1:200 that was approved by the board of directors
in July 2001, the 1:143 reverse stock split effective July 16, 2003 and the
2:1 forward split on September 15, 2003.
The computation of earnings (loss) per share of common stock is based on the
weighted average number of shares outstanding at the date of the financial
statements. Outstanding employee warrants have been considered in the fully
diluted earnings per share calculation in 2006 and 2005.
March 31,
---------
2006 2005
(Restated)
------------------ -----------------
Basic Earnings Per Share
Income (Loss) (numerator) $ (125,336) $ (86,199)
Shares (denominator) 51,820,458 50,718,211
$ (.00) $ (.00)
================== =================
Fully Diluted Earnings Per Share
Income (Loss) (numerator) $ (125,336) $ (86,199)
Shares (denominator) 51,417,512 51,417,512
$ (.00) $ (.00)
================== =================
NOTE 2 - New Technical Pronouncements (restated)
In November 2004, the FASB issued SFAS No. 151, Inventory Costs--an
amendment of ARB No. 43, Chapter 4 This Statement amends the guidance in
ARB No. 43, Chapter 4 Inventory Pricing. SFAS No. 151 clarifies the
accounting for abnormal amounts of idle facility expense, freight, handling
costs, and wasted material (spoilage). SFAS No. 149 is effective for
inventory costs incurred during fiscal years beginning after June 15, 2005.
The adoption of SFAS No. 151 will not have an impact on the Company's
consolidated financial statements.
In December 2004, the FASB issued SFAS No. 152, Amendment of FASB Statement
No. 66, Accounting for Sales of Real Estate, which references the financial
accounting and reporting guidance for real estate time-sharing transactions
that is provided in AICPA Statement of Position. This Statement also amends
FASB Statement No. 67, Accounting for Costs and Initial Rental Operations of
Real Estate Projects, to state that the guidance for incidental operations and
costs incurred to sell real estate projects does not apply to real estate
time-sharing transactions. SFAS No. 152 is effective for financial statements
for fiscal years beginning after June 15, 2005. The adoption of SFAS No. 152
will not have an impact on the Company's consolidated financial statements.
In May 2005, the FASB issued SFAS No. 154, Accounting Changes and Error
Corrections. This Statement replaces APB No. 20, Accounting Changes and FASB
No. 3, Reporting Accounting Changes in Interim Financial Statements, and
changes the requirements for the accounting for and reporting of a change in
accounting principle. This Statement applies it all voluntary changes in
accounting principle. It also applies to changes required by an accounting
pronouncement in the unusual instance that the pronouncement includes specific
transition provisions. When a pronouncement includes specific transition
provisions, those provisions should be followed. This Statement requires
retrospective application to prior periods' financial statements of changes in
accounting principle, unless it is impracticable to determine either the
period-specific effects or the cumulative effect of the change. The adoption
of SFAS No. 154 did not have an impact on the Company's consolidated financial
statements.
In February 2006, the FASB issued SFAS No. 155, Accounting for Certain
Hybrid Financial Instruments - An Amendment of FASB Statements No. 133 and
140. This Statement amends FASB Statements No. 133, Accounting for
Derivative Instruments and Hedging Activities, and No. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities. This statement resolves issues addressed in Statement 133
Implementation Issued No. D1, "Application of Statement 133 to Beneficial
Interests in Securitized Financial Assets." The adoption of SFAS No. 155
did not have an impact on the Company's consolidated financial statements.
In March 2006, the FASB issued SFAS No. 156, Accounting for Servicing of
Financial Assets - An Amendment of FASB Statement No. 140. This Statement
amends FASB Statement No. 140, Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities, with respect to the
accounting for separately recognized servicing assets and servicing
liabilities. The adoption of SFAS No. 156 did not have an impact on the
Company's consolidated financial statements.
NOTE 3 - Stock Options (Restated)
---------------------------------
The Company has stock option plans that provide for stock-based employee
compensation, including the granting of stock options, to certain key employees.
Prior to January 1, 2006, the Company applied APB Opinion No. 25, "Accounting
for Stock Issued to Employees", and related Interpretations in accounting for
awards made under the Company's stock-based compensation plans. Under this
method, compensation expense was recorded on the date of grant only if the
current market price of the underlying stock exceeded the exercise price.
During the periods presented in the accompanying financial statements, the
Company has granted options under its 2001 Equity Incentive Plan. The Company
has adopted the provisions of SFAS No. 123R using the modified-prospective
transition method and the disclosures that follow are based on applying SFAS No.
123R. Under this transition method, compensation expense recognized during the
three months ended March 31, 2005 included: (a) compensation expense for all
share-based awards granted prior to, but not yet vested as of January 1, 2006,
and (b) compensation expense for all share-based awards granted on or after
January 1, 2006. Accordingly, compensation cost of $39,959 has been recognized
for grants of options to employees and directors in the accompanying statements
of operations with a associated recognized tax benefit of $0 of which $0 was
capitalized as an asset for the period ended March 31, 2006. In accordance with
the modified-prospective transition method, the Company's financial statements
for the prior year have not been restated to reflect, and do not include, the
impact of SFAS 123R. Had compensation cost for the Company's stock option plans
and agreements been determined based on the fair value at the grant date for
awards in 2005 consistent with the provisions of SFAS No. 123R, the Company's
net loss and basic net loss per common share would have been increased to the
pro forma amounts indicated below:
Three Months Ended
March 31,
2006
(Restated)
----------------
Net loss, as reported $ (125,336)
Plus stock-based employee compensation
expense included in reported net loss,
net of related tax effects -
Less stock-based employee compensation expense determined under fair
value based method for all awards, net of related tax effects (39,959)
===============
Pro forma net loss $ (165,295)
===============
Basic and diluted net loss per common share, as reported $ (0.00)
Basic net loss per share, pro forma $ (0.00)
Diluted net loss per share, pro forma $ (0.00)
NOTE 4 - Related Party Transactions
During the three months ended March 31, 2006, and 2005, the Company charged
$1,746, and $4,105 respectively, to accounting and legal fees for services
rendered by directors or stockholders of the Company. Outstanding balances
payable for consulting and legal fees to these related parties were $450,465
and $450,465 at March 31, 2006, and 2005, respectively.
The President of Anglotajik Minerals, Inc. advanced the Company funds to
pay expenses. The reimbursed funds advanced totaled $17,548 at March 31,
2006.
In May 2003 the Company issued 13,986 shares of its common stock to the
officer pursuant to a stock option dated September 1, 2001. This issuance
relieved officer advances payable and consulting fees payable by $31,900 and
$68,100, respectively.
In July 2003 the Board of Directors authorized the issuance of 286,713
restricted common shares to the President to relieve the shareholder advance
of $48,773 and for a receivable of $51,227 from the President.
During the third quarter of 2003, the President was the only member of the
Board of Directors. In July 2003 the Company issued an option to purchase
699,301 shares of common stock at $0.21 per share to a Director of the
Company. Also in July 2003 a signing bonus of $100,000 was paid to the
President via the issuance of 279,720 shares of restricted common stock.
Wages payable to the President of $120,000 for 3rd and 4th quarter of 2003
were accrued during the 2003 year. Additionally $252,000 in wages payable to
the President was accrued during the 2004 year. During the first quarter of
2006, the President accrued in wages payable $72,500.
During the year ended December 31, 2003, the Company issued a total of
16,999,984 common shares to each of the shareholders to whom interest was due
on the old line of credit. The issuance of these shares relieved the entire
outstanding payable of $150,519.
NOTE 5 - Stockholders' Equity
In July 2003 the Board of Directors authorized the issuance of 286,713
restricted common shares to the President in exchange for a shareholder
advance of $48,773 and a receivable from the President of $51,227. The
President is the only member of the Board of Directors. Also in July 2003 a
signing bonus of $100,000 was paid to the President via the issuance of
279,720 shares of restricted common stock.
In July 2003 a reverse stock split of 1:143 was authorized by the Board of
Directors, and the number of authorized shares was increased to 300 million.
The financial statements have been retroactively restated to reflect the
reverse stock split.
In August 2003 the Company issued 16,999,984 common shares to the
shareholders to whom interest was due on the line of credit. The issuance of
these shares relieved the entire outstanding payable of $150,519.
In September 2003 a 2:1 forward stock split was authorized by the Board
of Directors. The financial statements have been retroactively restated to
reflect the forward stock split.
On October 13, 2003 the board of directors authorized the issuance of
1,000,000 shares of restricted common stock to a law firm for services valued
at $370,000.
During the three months ending March 31, 2005 the company issued 3,916,434
restricted common shares in exchange for printing and reproductions expenses
of $35,237, as well as, 3,916,434 restricted common shares in exchange for
consulting expenses of $ 34,285. Also the company issued 24,867,132
restricted common shares in lieu of the company's debts to the President of
$386,773 for wages payable, $47,375.66 for advance from shareholder, and
$47,047 for vacation accrued. The total amount of the debt to the President
was $481,195.
NOTE 6 - Commitments and Contingencies
There are various claims and lawsuits pending against the Company arising in
the normal course of the Company's business. Although the amount of liability
at March 31, 2006 cannot be ascertained, management is of the opinion that
any resulting liability will not materially affect the Company's financial
position.
Merrill Lynch Canada Inc., has filed suit against the Company regarding a
dispute related to the sale of its restricted common stock by an unrelated
third party to Merrill Lynch. At this time the Company does not know if it
will sustain a loss, or the amount of the loss.
The Company settled an action by a bank regarding an overdraft. The
settlement carried an interest rate of 9.0% and twelve monthly payments of
$3,321. The Company made three payments before defaulting on this settlement.
The amount due as of March 31, 2006 is $28,343. Related interest of $10,433
has also been accrued by the Company.
Note 7 - RESTATEMENT AND RECLASSIFICATION
We have restated our financial statements for the three months ended March 31,
2006, to reflect certain issues identified during a regulatory review of our
financial statements associated with the SEC from 10QSB filing on June 30, 2006
which is pending effectiveness as of the date of this 10QSB/A filing. Our
management and our board of directors have concluded this restatement is
necessary to reflect the changes described below. There was no effect on cash
provided by operating activities or cash used by investing and financing
activities as a result of these corrections.
Revisions affecting our balance sheet and statement of operations:
o Due to correction error on accounts payable we have reduced the
accounts payable by $356,477. We have restated the balance sheet to
show the appropriated outstanding accounts payable. After the
reclassification, there was no effect on our net income (loss) for the
three months ended March 31, 2006.
o Due to correction error on related party payable, we have reduced the
related party payable by $450,465. We have restated the balance sheet
to show the appropriated outstanding related party payable. After the
reclassification, there was no effect on our net income (loss) for the
three months ended March 31, 2006.
o Reclassification of accrued expenses to note payable - related party
and accrued compensation, we have reduced the accrued expense by
$449,351 and reallocated to increase note payable - related party to
$17,548 and accrued compensation to $431,802. We have restated the
balance sheet to show the appropriated outstanding accrued expense,
note payable - related party and accrued compensation. After the
reclassification, there was no effect on our net income (loss) for the
three months ended March 31, 2006.
o During the three months ended March 31, 2006 the Company had adopted
the provisions of SFAS No. 123R using the modified-prospective
transition method and the disclosures that follow are based on applying
SFAS No. 123R from APB Opinion No. 25, "Accounting for Stock Issued to
Employees" method. We have since revised our balance sheet, statement
of operations, and cash flow for the three months ended March 31, 2006
to reflect the adjustment to additional paid-in-capital and
compensation expense recognized for grants of stock options to
employees and directors. The net income (loss) had an increase in loss
to ($125,336). The retained earnings (deficit) was increased to
(5,686,558).
A summary of the effects of these changes is as follows:
Anglotajik Minerals, Inc.
(A Company in the Exploration Stage)
Balance Sheets
For Three Months Ended March 31, 2006
As
Originally
Reported As Restated Change
-------------- ------------- ------------
ASSETS
Current Assets
Cash $ 67 $ 67 $ -
-------------- ------------- ------------
Other Current Assets
Advance to Stockholder 2 2 -
-------------- ------------- ------------
Total Current Assets 69 69 -
-------------- ------------- ------------
Total Assets $ 69 $ 69 $ -
============== ============= ------------
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilites
Bank Overdraft $ - $ - $ -
Accounts Payable 356,477 - (356,477) (b)
Accrued Expenses 466,527 17,176 (449,351) (c)
Accrued compensation - 431,802 431,802 (c)
Interest Payable 10,433 10,433 -
Notes Payable - Current 28,343 28,343 -
(b)
Note Payable - Related Party 450,465 17,548 (433,097) (c)
-------------- ------------- ------------
Total Current and Total Liabilities 1,312,245 505,302 (806,943) (b)
Stockholders' Deficit
Common Stock, $.001 Par Value, 300.000,000
Shares Authorized; 51,820,458 Shares Issued
and Outstanding, repectively 51,820 51,820 -
Additional Paid-In Capital 4,639,080 4,679,039 39,959 (d)
Deficit Accumulated During the Development (6,003,076) (5,236,092) 766,984 (b)
-------------- ------------- ------------
Total Stockholders' Deficit (1,312,176) (505,233) 806,943) (b)
Total Liabilities and Stockholders'
Equity $ - $ - $ -
============== ============= ============
-------------------------
(a) Increase due to reclassification of payable.
(b) Decrease due to reclassification of payable.
(c) Due to reclassification of accrued expense to accrued compensation and note payable - related party.
(d) Increase from restating compensation cost recognized for grants of stock options to employees and directors.
===========================================================================================================================
Anglotajik Minerals, Inc
(A Company in the Exploration Stage)
Statements of Operations
For Three Months Ended March 31, 2006
As Originally
Reported As Restated Change
-------------- -------------- --------------
Revenue
- -
-------------- -------------- --------------
Operating Costs and Expenses
----------------------------
Operating and administrative expenses $ 84,739 $ 124,698 $ (39,959) (a)
Depreciation expense - - -
Amortization expense - - -
-------------- -------------- --------------
Total operating costs and expenses 84,739 124,698 (39,959)
-------------- -------------- --------------
Non-operating Income
Dividend income - - -
Gain on cancellation of contracts - - -
Loss on disposal of assets
Interest Expense (638) (638) -
-------------- -------------- --------------
Total non-operating income (638) (638) -
-------------- -------------- --------------
Net loss before income taxes (85,377) (125,336) -
Provision for income taxes - - -
-------------- -------------- --------------
Net loss $ (85,377) $ (125,336) $ 39,959
=============== ============== ==============
----------------------------
(a) Increase from restating compensation cost recognized for grants of stock
options to employees and directors.
================================================================================================================
Anglotajik Minerals, Inc
(A Company in the Exploration Stage)
Statement of Cash Flow
For Three Months Ended March 31, 2006
As Originally
Reported As Restated Change
-------------- -------------- --------------
Cash Flows from Operating Activities
Net loss $ (85,377) $ (125,336) $ 39,959 (d)
Adjustment to reconcile net loss to net cash used in
operating activities: -
Expenses paid by issuance of common stock subscribed - - -
Relief of payables by issuance of common stock - - -
Expenses paid by issuance of common stock - - -
Amortization and depreciation expense - - -
Deferred compensation expense - - -
Options Issued for employee services - 39,959 (39,959) (d)
Gain on cancellation of amortization - - -
Loss on disposal of assets - - -
Decrease in prepaid expense - - -
Change in assets & liabilities
Increase (decrease) in accounts payable - - -
Increase (decrease) in wages payable 78,626 78,626 -
Increase in interest payable 638 638 -
Increase (decrease) in related party payable - 6,718 (6,718) (c)
Increase in accrued expense (530) (530) -
-------------- -------------- --------------
Net Cash used in operating activities 75 -
(6,643)
-------------- -------------- --------------
Cash Flow from Investing Activities
Deposits paid - - -
Purchase of fixed assets - - -
-------------- -------------- --------------
Net cash used in investing activities
- - -
-------------- -------------- --------------
Cash Flow from Financing Activities
Proceeds received from issuance of stock - - -
Proceeds received from officer advances 6,718 - 6,718 (c)
Proceeds from bank overdraft - - -
Payment on bank overdraft (8) (8) -
Payment of officers advances - - -
Payment on line of credit - - -
Proceeds received from line of credit - - -
-------------- -------------- --------------
Net cash provided by financing activities 6,710
-------------- -------------- --------------
Net increase (decrease) in cash 67 67 -
Cash and cash equivalents at (Inception) March 31, 2006 0 0 -
-------------- -------------- --------------
Cash and cash equivalents at March 31, 2006 $ 67 67 $ -
============== ============== ==============
---------------------------------------
(a) Increase due to reclassification of payable.
(b) Decrease due to reclassification of payable.
(c) Due to reclassification of accrued expense to accrued compensation and
note payable - related party. (d) Increase from restating compensation cost
recognized for grants of stock options to employees and directors.
================================================================================================================================
Item 2 - Management's Discussion and Analysis or Plan of Operation
NOTE: The following discussion and analysis should be read in conjunction with
the Company's Interim Financial Statements (unaudited) and the Notes to the
Financial Statements for the three month period ended March 31, 2006.
Plan of Operation
We are in the exploration stage and have no revenues from operations, nor
do we expect revenues for the foreseeable future. To date, we have funded our
various business activities through advances from officers and stockholders and
through the issuance of equity stock. Our officers are under no obligation to
continue to provide advances to the us.
We have no cash or cash equivalent resources, no lines of credit, nor any
other source of funds. We are negotiating with various commercial funding
sources in Europe to raise approximately $5,000,000 to fund our exploration
operations, although we have not yet received any commitments from any source
for any amount of funding. We will not be able to begin a meaningful exploration
program unless and until we acquire funding.
If we are able to obtain financing, we expect to spend approximately
$2,000,000 on exploration of the IKAR Deposit property before making a
determination whether or not to proceed with development. Whether we conduct any
other exploration activities will depend upon the amount of financing, if any,
we are able to obtain.
We have suspended our proposed activities in mineral exploration in the
Republic of Tajikistan because of our inability to secure funding, and are
currently exploring other business opportunities. Our ability to resume mineral
exploration, or to acquire or start another business, will likely depend upon
our success in raising capital through stock sales or some other means, of which
we cannot be certain."
If we sell equity stock to raise capital, our current stockholders will
experience substantial dilution of their shareholdings.
Uncertainty as to Certain Accounts Payable
We have reviewed, and continue to review our corporate files, books and
records, but remain unable to conclusively identify a basis or certain amount of
our Accounts Payable and for the Related Parties Payable to previous management
carried on our books. We are continuing to attempt to locate invoices or other
documentation regarding those payables.
We are restating the Form 10-QSB ending June 30, 2006, due to the inability
to locate invoices or documents to substantiate the Accounts Payables. The
Accounts Payable was originally written off to the "Other Income" column during
the period ending June 30, 2006 on Form 10QSB. During a regulatory review of
period ending June 30, 2006, the Accounts Payable issue was concluded to have
been a stating error, and should not be reflected in the "Other Income" column,
but against the Retained Earnings.
March 31, 2006 versus 2005
Operating expenses for the period decreased to $125,336 in 2006 compared to
$85,561 for the comparable period in 2005. As the company had no cash resources,
expenses were funded by issuance of common stock, by loans subsequently settled
by the issuance of our common stock, and by an increase in the Related Party
Payable account.
Item 3 - Controls and Procedures
Evalutaion of Disclosure Controls and Procedures
Our Chief Executive Officer, who is our principal executive officer and
also serves as our interim principal accounting officer. conducted an evaluation
of the effectiveness of the design and operation 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 the end of the period covered by this report (the
"evaluation date"). Based on this evaluation, the officer concluded as of the
evaluation date that our disclosure controls and procedures were effective such
that the material information required to be included in our periodic filings
with the Securities and Exchange Commission is accumulated and communicated to
management (including the principal executive officer) as appropriate to allow
timely decisions regarding required disclosure and recorded, processed,
summarized and reported within the time periods specified in SEC rules and forms
relating to the Company.
Changes in Internal Control Over Financial Reporting
There were no changes in internal control over financial reporting during
the period covered by this quarterly report that materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
There are various claims and lawsuits pending against the Company arising
in the normal course of the Company's business. Although the amount of liability
at September 30, 2003, cannot be ascertained, management is of the opinion that
any resulting liability will not materially affect the Company's financial
position. See Note 6 to the Interim Financial Statements.
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
None.
The following exhibits are filed herewith:
Ex. 31 Certification of CEO / CFO
Ex. 32 Certification of CEO / CFO
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.
ANGLOTAJIK MINERALS INC.
October 13, 2006 /s/ Matthew Markin
------------------ -----------------------------------------
Dated President, Acting Chief Financial Officer