CATACA RESOURCES, INC.
Condensed Balance
Sheets
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash
|
$
|
18,862
|
|
$
|
4,537
|
|
Total current assets
|
|
18,862
|
|
|
4,537
|
|
|
|
|
|
|
|
|
Mineral property
|
|
5,000
|
|
|
5,000
|
|
Total assets
|
$
|
23,862
|
|
$
|
9,537
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY (DEFICIT)
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
$
|
7,043
|
|
$
|
1,026
|
|
Related party
obligation payable
|
|
125,000
|
|
|
105,000
|
|
Total current liabilities
|
|
132,043
|
|
|
106,026
|
|
Total Liabilities
|
|
132,043
|
|
|
106,026
|
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (deficit):
|
|
|
|
|
|
|
Common stock: 75,000,000
shares authorized of $0.001 par
value;
30,000,000
shares issued and outstanding as of March 31, 2016
and
December
31, 2015
|
|
30,000
|
|
|
30,000
|
|
Additional paid-in
capital
|
|
-
|
|
|
-
|
|
Accumulated deficit
|
|
(138,181
|
)
|
|
(126,489
|
)
|
Accumulated other
comprehensive income (loss)
|
|
-
|
|
|
-
|
|
Total shareholders' equity (deficit)
|
|
(108,181
|
)
|
|
(96,489
|
)
|
Total liabilities and shareholders' equity (deficit)
|
$
|
23,862
|
|
$
|
9,537
|
|
The accompanying notes are an integral part of these condensed
financial statements
4
CATACA RESOURCES, INC.
Condensed Statements of
Operations
(Unaudited)
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Operating costs:
|
|
|
|
|
|
|
Mining and exploration license
|
$
|
-
|
|
$
|
-
|
|
Other general
& administrative expenses
|
|
11,692
|
|
|
11,568
|
|
Total operating costs
|
|
11,692
|
|
|
11,568
|
|
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
|
|
Foreign exchange
gain (loss)
|
|
-
|
|
|
-
|
|
Total other income (expense)
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
Net (loss) income
|
$
|
(11,692
|
)
|
$
|
(11,568
|
)
|
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
|
Basic and diluted
|
$
|
0.00
|
|
$
|
0.00
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
Basic and diluted
|
|
30,000,000
|
|
|
30,000,000
|
|
The accompanying notes are an integral part of these condensed
financial statements
5
CATACA
RESOURCES,
INC.
Condensed
Statements
of
Changes
in
Stockholders
Equity
(Deficit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Common
|
|
|
Additional
|
|
|
|
|
|
other
|
|
|
|
|
|
|
Common
|
|
|
Stock
|
|
|
paid-in
|
|
|
Accumulated
|
|
|
comprehensive
|
|
|
|
|
|
|
stock
|
|
|
amount
|
|
|
capital
|
|
|
deficit
|
|
|
income
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2013
|
|
30,000,000
|
|
|
30,000
|
|
|
-
|
|
|
(26,448
|
)
|
|
-
|
|
|
3,552
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss, December 31, 2014
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(37,499
|
)
|
|
-
|
|
|
(37,499
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2014
|
|
30,000,000
|
|
|
30,000
|
|
|
-
|
|
|
(63,947
|
)
|
|
-
|
|
|
(33,947
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss, December 31, 2015
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(54,486
|
)
|
|
-
|
|
|
(54,486
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2015
|
|
30,000,000
|
|
$
|
30,000
|
|
$
|
-
|
|
$
|
(126,489
|
)
|
$
|
-
|
|
$
|
(96,489
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss, March 31, 2016
(unaudited)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(11,692
|
)
|
|
-
|
|
|
(11,692
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, March 31, 2016 (unaudited)
|
|
30,000,000
|
|
$
|
30,000
|
|
$
|
-
|
|
$
|
(138,181
|
)
|
$
|
-
|
|
$
|
(108,181
|
)
|
The accompanying notes are an integral part of these condensed
financial statements
6
CATACA RESOURCES, INC.
Condensed Statements of
Cash Flows
(Unaudited)
|
|
Three
Months Ended
|
|
|
|
March
31,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net (loss) income
|
$
|
(11,692
|
)
|
$
|
(11,568
|
)
|
Adjustments to reconcile net loss to net
cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Increase (decrease) in accounts payable
|
|
6,017
|
|
|
1,114
|
|
Net cash (used in)
provided by operating activities
|
|
(5,675
|
)
|
|
(10,454
|
)
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
Acquisition of mineral property
|
|
-
|
|
|
-
|
|
Net cash (used in)
investing activities
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
Proceeds from stock issuances
|
|
-
|
|
|
-
|
|
Proceed from related party
obligation payable
|
|
20,000
|
|
|
10,000
|
|
Net cash provided by financing
activities
|
|
20,000
|
|
|
10,000
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
14,325
|
|
|
(454
|
)
|
Cash, beginning of the period
|
|
4,537
|
|
|
1,507
|
|
Cash, end of the period
|
$
|
18,862
|
|
$
|
1,053
|
|
|
|
|
|
|
|
|
Non-cash investing and financing
activities
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
Supplement cash flow disclosure:
|
|
|
|
|
|
|
Interest
paid
|
$
|
-
|
|
$
|
-
|
|
Income tax paid
|
$
|
-
|
|
$
|
-
|
|
The accompanying notes are an integral part of these condensed
financial statements
7
CATACA RESOURCES, INC.
Notes to Condensed
Financial Statements (Unaudited)
As of March 31, 2016
1.
|
Condensed financial
statements
|
Basis of Presentation
The accompanying unaudited condensed financial statements are
presented in United States dollars and have been prepared using the accrual
method of accounting in accordance with generally accepted accounting principles
in the United States of America (US GAAP) for interim financial reporting and
the instructions for Form 10-Q pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, they do not include all
information and footnote disclosures necessary for a complete presentation of
the financial position, results of operations, cash flows, and stockholders
equity in conformity with US GAAP. In the opinion of management, all adjustments
considered necessary for a fair presentation of the results of operations and
financial position have been included and all such adjustments are of a normal
recurring nature.
The unaudited condensed balance sheet of the Company as of
March 31, 2016, and the related balance sheet of the Company as of December 31,
2015, which is derived from the Company's audited financial statements, the
unaudited condensed statement of operations and cash flows for the three months
ended March 31, 2016 and 2015 and the condensed statement of stockholders equity
for the period of December 31, 2013 to March 31, 2016 are included in this
document. These unaudited condensed financial statements should be read in
conjunction with the audited financial statements and related notes included in
the Companys most recently filed Form 10K that was filed on March 28, 2016.
Operating results for the three months ended March 31, 2016 are
not necessarily indicative of the results that can be expected for the year
ending December 31, 2015.
Cataca Resources, Inc. (Company) was incorporated in the
State of Nevada as a for-profit company on December 11, 2012 and established a
fiscal year end of December 31. The Company is engaged in the acquisition,
exploration and development of natural resource properties. The Company has no
revenues and limited operating history.
The Company is in the process of evaluating its property and
has not yet determined whether the property contain reserves that are
economically recoverable. The success of the Company and the recoverability of
the amount shown for mineral property are dependent upon the existence of
economically recoverable reserves, the ability of the Company to obtain the
necessary financing to complete exploration and development of the reserves, and
upon future profitable production or proceeds from the disposition of the
property.
Use of Estimates and Assumptions
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make certain estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting periods presented. The Company is
required to make judgments and estimates about the effect of matters that are
inherently uncertain. The Company regularly evaluates estimates and assumptions
related to the useful life and recoverability of long-lived assets, deferred
income tax asset valuations and loss contingences. The Company bases its
estimates and assumptions on current facts, historical experience and various
other factors that it believes to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying value of
assets and liabilities and the accrual of costs and expenses that are not
readily apparent from other sources. Although, we believe our judgments and
estimates are appropriate, actual future results may be different; if different
assumptions or conditions were to prevail, the results could be materially
different from our reported results.
8
CATACA RESOURCES, INC.
Notes to Condensed
Financial Statements (Unaudited)
As of March 31, 2016
2.
|
Nature of operations
(continued)
|
Mineral Properties
Mineral property acquisition costs are capitalized in
accordance with Codification topic 930 Extractive Activities - Mining. Mineral
property exploration costs are expensed as incurred. When it has been determined
that a mineral property can be economically developed as a result of
establishing proven and probable reserves, the costs incurred to develop such
property are capitalized. To date the Company has not established any reserves
on its mineral property.
Recent Accounting Pronouncements
The Companys management has evaluated all the recently issued,
but not yet effective, accounting standards that have been issued or proposed by
the FASB or other standards-setting bodies through the filing date of these
financial statements and does not believe the future adoption of any such
pronouncements will have a material effect on the Companys financial position
and results of operations or cash flows.
On December 17, 2012, the Company entered into Mineral Rights
Agreement with Benefacio Minerals LLC to purchase a 100% interest in a 9 unit
claim block (the Lebak Gold Claim), containing approximately 91.5 hectares,
located in the province of Sultan Kudarat, Philippines, for the sum of $5,000
(the Assignment). The Assignment was filed with the Mineral Resources
Department of the Ministry of Energy and Mineral Resources of the Government of
the Republic of the Philippines on December 20, 2012. On December 21, 2012, the
Republic of the Philippines, Department of Environment and Natural Resources
(DENR) Mines and Geosciences granted the Company an annual license and
permit for mining and exploration of its Lebak Gold Claim (the License and
Permit). On December 17, 2013, the Company paid DENR $1,093 to renew its
License and Permit and was granted an annual extension to December 17, 2014. The
Company will be required to renew its License and Permit with the DENR prior to
commencing work the Lebak Gold Claim.
A two phased exploration program to further delineate the
mineralized system currently recognized on Lebak Gold Claim is recommended and
the proposed budget for the recommended work in PHP 810,000, equivalent to
$18,200 approximately.
4.
|
Related Party Obligation
Payable
|
Due to related party at March 31, 2016 and December 31, 2015
consisted of the following:
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2015
|
|
|
2015
|
|
|
|
|
|
|
|
|
Balance at beginning of the
period
|
$
|
105,000
|
|
$
|
40,000
|
|
Funds advanced
|
|
20,000
|
|
|
65,000
|
|
Repayments
|
|
-
|
|
|
-
|
|
Balance at end of the period
|
$
|
125,000
|
|
$
|
105,000
|
|
9
CATACA RESOURCES, INC.
Condensed Notes to
Financial Statements (Unaudited)
As of March 31, 2016
4.
|
Related Party Obligation Payable
(continued)
|
On December 1, 2013, March 31, July 18, and November 21, 2014,
January 29, April 13, April 24, May 8, June 5, July 30, December 8, 2015, and
March 14, 2016 Mr. Edward Barrios, the Companys President, CEO, and a Director,
advanced the Company $8,000, $10,000, $18,000 $4,000, $10,000, $4,000,
$12,000, $8,000, $15,000, $8,000, $8,000, and $20,000 as an unsecured
obligation, respectively. The aggregate obligation bears no interest, is due on
demand and is not evidenced by any written agreement.
These financial statements have been prepared on a going
concern basis which assumes the Company will be able to realize its assets and
discharge its liabilities in the normal course of business for the foreseeable
future. Realization values may be substantially different from carrying values
as shown and these financial statements do not give effect to adjustments that
would be necessary to the carrying values and classification of assets and
liabilities should the Company be unable to continue as a going concern. At
March 31, 2016, the Company had not yet achieved profitable operations, had
accumulated losses of $138,181 since its inception and expects to incur further
losses in the development of its business, all of which raises substantial doubt
about the Companys ability to continue as a going concern. The ability to
continue as a going concern is dependent upon the Companys ability to generate
future profitable operations and/or to obtain the necessary financing to meet
its obligations and repay its liabilities arising from normal business
operations when they come due.
The Company expects to continue to incur substantial losses as
it executes its business plan and does not expect to attain profitability in the
near future. Since its inception, the Company has funded operations through the
issuance of shares to its sole director and two officers and from a related
party borrowing from its sole director and officer. The Companys operating
expenditure plan for the current fiscal year ending December 31, 2016 will
require cash of approximately $80,000. Management intends to finance operating
costs over the next twelve months with existing cash on hand, from the issuance
of common shares, and additional related party borrowings from its sole
director. The Company's future operations are dependent upon external funding
and its ability to execute its business plan, realize sales and control
expenses. Management believes that sufficient funding will be available from
additional borrowings and private placements to meet its business objectives
including anticipated cash needs for working capital, for a reasonable period of
time. However, there can be no assurance that the Company will be able to obtain
sufficient funds to continue the development of its business operation, or if
obtained, upon terms favorable to the Company.
The Companys capitalization is 75,000,000 shares of common
stock, with a par value of $0.001 per share, with 30,000,000 shares issued and
outstanding at March 31, 2016 and December 31, 2015.
As of March 31, 2016, the Company has not granted any stock
options or stock warrants and has not recorded any stock-based compensation.
10
Item 2.
|
Management's Discussion and Analysis of
Financial Condition and Results of Operation
|
FORWARD-LOOKING STATEMENTS
This Management's Discussion and Analysis of Financial
Condition and Results of Operations (MD&A) contains forward-looking
statements that involve known and unknown risks, significant uncertainties and
other factors that may cause our actual results, levels of activity, performance
or achievements to be materially different from any future results, levels of
activity, performance or achievements expressed, or implied, by those
forward-looking statements. You can identify forward-looking statements by the
use of the words may, will, should, could, expects, plans, anticipates,
believes, estimates, predicts, intends, potential, proposed, or continue or the
negative of those terms. These statements are only predictions. In evaluating
these statements, you should consider various factors which may cause our actual
results to differ materially from any forward-looking statements. Although we
believe that the exceptions reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Therefore, actual results may differ materially and adversely
from those expressed in any forward-looking statements. We undertake no
obligation to revise or update publicly any forward-looking statements for any
reason.
RESULTS OF OPERATIONS
Working Capital
|
|
|
March 31, 2016
|
|
|
December 31, 2015
|
|
|
|
|
$
|
|
|
$
|
|
|
Current Assets
|
|
18,862
|
|
|
4,537
|
|
|
Current Liabilities
|
|
132,043
|
|
|
106,026
|
|
|
Working Capital (Deficit)
|
|
(113,181
|
)
|
|
(101,489
|
)
|
Cash Flows
|
|
|
Three months ended
|
|
|
Three months ended
|
|
|
|
|
March 31, 2016
|
|
|
March 31, 2015
|
|
|
|
|
$
|
|
|
$
|
|
|
Cash Flows used in Operating
Activities
|
|
(5,675
|
)
|
|
(10,454
|
)
|
|
Cash Flows from (used in) Investing
Activities
|
|
-
|
|
|
-
|
|
|
Cash Flows from (used in)
Financing Activities
|
|
20,000
|
|
|
10,000
|
|
|
Net increase (decrease) in Cash During Period
|
|
14,325
|
|
|
(454
|
)
|
Operating Revenues
From December 11, 2012 (date of inception) to March 31, 2016,
the Company did not earn any revenues from its operations.
Operating Expenses and Net Loss
For the three months ended March 31, 2016, the Company incurred
operating expenses of $11,692 consisting primarily of professional fees relating
to accounting, audit, and legal expenses for the Companys SEC filings. The
Company operating expenses during the three months ended March 31, 2015 were
$11,568.
For the three months ended March 31, 2016, the Company incurred
a net loss of $11,692 and loss per share of $nil compared with a net loss of
$11,568 and loss per share of $nil for the quarter ended March 31, 2015.
Liquidity and Capital Resources
As at March 31, 2016, the Company had current assets of $18,862
compared with current assets of $4,537 at December 31, 2015. The increase in
current assets was due to an advance of cash to the Company by a related
party.
As at March 31, 2016, the Company had current liabilities of
$132,043 compared with current liabilities of $106,026 at December 31, 2015. The
increase in current liabilities was attributed to amounts due for administrative
expenses
11
As at March 31, 2016, the Company had a working capital deficit
of $113,181 compared with a working capital deficit of $101,489 at December 31,
2015. The increase in working capital deficit was due to an increase in total
liabilities due to amounts used to fund outstanding obligations of the Company.
Going Concern
We have not attained profitable operations and are dependent
upon obtaining financing to pursue any extensive acquisitions and activities.
For these reasons, our auditors stated in their report on our audited financial
statements that they have substantial doubt that we will be able to continue as
a going concern without further financing.
Future Financings
We will continue to rely on equity sales of our Common Shares
in order to continue to fund our business operations. Issuances of additional
shares will result in dilution to existing stockholders. There is no assurance
that we will achieve any additional sales of the equity securities or arrange
for debt or other financing to fund our operations and other activities.
Off-Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have
or are reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are
material to stockholders.
Recently Issued Accounting Pronouncements
The Company has implemented all new accounting pronouncements
that are in effect. These pronouncements did not have any material impact on the
financial statements unless otherwise disclosed, and the Company does not
believe that there are any other new accounting pronouncements that have been
issued that might have a material impact on its financial position or results of
operations.
Trends
We are in the exploration stage, have not generated any revenue
and have no prospects of generating any revenue in the foreseeable future. We
are unaware of any known trends, events or uncertainties that have had, or are
reasonably likely to have, a material impact on our business or income, either
in the long term of short term, other than as described in this section or in
Risk Factors.
Critical Accounting Policies
Our discussion and analysis of its financial condition and
results of operations, including the discussion on liquidity and capital
resources, are based upon our financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States.
The preparation of these financial statements requires us to make estimates and
judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. On an
ongoing basis, management re-evaluates its estimates and judgments.
The going concern basis of presentation assumes we will
continue in operation throughout the next fiscal year and into the foreseeable
future and will be able to realize our assets and discharge our liabilities and
commitments in the normal course of business. Certain conditions, discussed
below, are currently present that raise substantial doubt upon the validity of
this assumption. The financial statements do not include any adjustments that
might result from the outcome of the uncertainty.
Our intended exploration activities are dependent upon our
ability to obtain third party financing in the form of debt and equity and
ultimately to generate future profitable exploration activity or income from its
investments. As of the date of this report we have not generated revenues, and
have experienced negative cash flow from minimal exploration activities. We may
look to secure additional funds through future debt or equity financings. Such
financings may not be available or may not be available on reasonable terms.
Changes in and Disagreements with Accountants on Accounting
Procedures and Financial Disclosure
None exist.
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