Condensed Notes to Interim Financial Statements
June 30, 2009
(Amounts expressed in US Dollars)
(Unaudited)
1.
Basis of Presentation
The accompanying unaudited financial statements do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management. all adjustments (consisting of recurring accruals) considered necessary for fair presentation have been included. Operating results for the interim period are not necessarily indicative of the results that may be expected for the year ended September 30. 2009. Interim financial statements should be read in conjunction with the company's annual audited financial statements for the year ended September 30. 2008.
Effective February 1. 2007. the Board of Directors changed the name of the corporation from "Brownsville Company" to "Uranium Hunter Corporation".
The consolidated financial statements include the accounts of Uranium Hunter Corporation (the "Company") and its wholly owned subsidiary Uranium Hunter Corporation (Ontario) (Formerly Brownsville Exploration Inc.) in Canada ("BEI"). All material intercompany accounts and transactions have been eliminated.
2.
Nature of Operations and Going Concern
Nature of operations
Uranium Hunter Corporation (formerly Brownsville Company) was incorporated in the State of Nevada on September 4. 2003. The Company's operation began in May 2004. Since inception, the Company operated a boat launch and convenience store. In July 2006. the Company entered into a letter of intent to acquire a uranium mining property in Tanzania. In November 2006. the Company sold the assets related to the boat launch and convenience store.
Effective January I. 2007 the Company has changed its primary operation from operating a boat launch to mining exploration.
6
URANIUM HUNTER CORPORATION.
Condensed Notes to Interim Financial Statements
June 30.2009
(Amounts expressed in US Dollars
(Unaudited)
2.
Nature of Operations and Going Concern contd
The Company is now an exploration stage mining company and has not realized any revenues from its operations. It is primarily engaged in the acquisition. exploration and development of uranium mining properties in Africa.
The Company's financial statements arc presented on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has no source for operating revenue and expects to incur significant expenses before establishing operating revenue. The Company has a need for equity capital and financing for working capital and exploration of its properties. Because of continuing operating losses, negative working capital and cash outflows from operations, the Company's continuance as a going concern is dependent upon its ability to obtain adequate financing and to reach profitable levels of operation. The Company's future success is dependent upon its continued ability to raise sufficient capital. not only to maintain its operating expenses. but to explore for uranium reserves. There is no guarantee that such capital will continue to be available on acceptable terms, if at all or if the Company will attain profitable levels of operation. Management's plans to mitigate these conditions are described below.
The Company is in the exploration stage and has not yet realized revenues from its planned operations. The Company has incurred a loss of $223.153 for the nine month period ended June 30, 2009 which includes non-cash stock based compensation expense for $74,083. At June 30. 2009, the Company had an accumulated deficit of 51107.720. The Company has funded operations through the issuance of capital stock. In January 2007. the Company received stock subscriptions for issue of its common stock for gross proceeds of 575.000. In April 2007, the Company received stock subscription of $600,000, In April 2008, the Company received stock subscription for 520,000. in May 2008 the Company received stock subscription for 525.000. During the three months ended September 30. 2008. the Company received stock subscription for 550,000.In October. 2008, the Company received an additional stock subscription for $25,000. In March 2009. the Company issued 1.270.836 common shares to all subscribers who had subscribed to the Company's stock from Jan 2007 to December 2008. In June, 2009, the Company received stock subscription for $36,000. Subsequent to the quarter ended June 30, 2009, the Company received stock subscription for $12,500. Management's plan is to continue raising additional
funds
through future equity or debt financing until it achieves profitable operations from its mineral extraction activities.
3.
Capital Stock
Authorized:
6,000,000,000 common shares $0.001 par value
Issued:
71,740,836 common shares $0.001 par value
Year ended September 30. 2008
In April 2008, the Company received $20.000 stock subscription for 33334 common shares at $0.60 per share, as part of its efforts to raise funds through private placement of shares. The Company issued shares on March 9. 2009. In May 2008. the Company received 825.000 stock subscription far 83.334 common shares at $0.30 per share. as part of its efforts to raise funds through private placement of shares. The Company issued shares on March 9, 2009. During the three months of July to September 2008. the Company received an additional $50.000 stock subscription for 166,667 common shares at $0.30 per share, as part of its efforts to raise funds through private placement of shares. The Company issued shares on March 9. 2009.
Three month period ended December 31. 2008
In October 2008. the Company received $25.000 stock subscription for 312.500 common shares at $0.08 per share, as part of its efforts to raise funds through private placement of shares. The Company issued shares on March 9. 2009.
Three month period ended March 31. 2009
On March 9. 2009, the Company issued 1,270.836 common shares for a total of $795.000 stock subscriptions received during
the
prior period from January 2007 to December 2008.
URANIUM HUNTER CORPORATION.
Condensed Notes to Interim Financial Statements
June 30.2009
(Amounts expressed in US Dollars
(Unaudited)
3.
Capital Stock contd
Three month period ended June 30. 2009
In June 2009. the Company received $36.000 stock subscription for 360,000 common shares at $0.10 per share, as part of its efforts to raise funds through private placement of shares.. The Company also issued 500.000 restricted common shares to Sparrowtech Resources. Inc. ("Optionor") for a right to earn a 49% interest in the mineral claims situated in. La Paz. Arizona. USA. generally known and described as the "Eagle Nest Mining Property" ("Eagle Nest") The Company expensed this cost of 520.000 to project expense.
4.
Stock Based Compensation
In April 2007. the Board of Directors approved an employee stock option plan ("2007 Non-Qualified Stock Option Plan"). the purpose of which is to promote the financial success and interests of the Company and materially increase shareholder value by giving incentives to the eligible officers and other employees and directors of, and consultants and advisors to, the Company through providing opportunities to acquire stock in the Company. Under the 2007 Stock Option Plan. officers, directors, employees and consultants who provide services to the Company may be granted options to acquire common shares of the Company at not less than the fair market value of the stock on the date of grant. The total number of shares reserved for issuance under the 2007 Non Qualified Stock Option Plan is 2.000.000.
The Company has adopted SFAS123 (Revised) commencing as of July 1, 2005. The fair value of each grant was estimated at the grant date using the Black-Scholes option-pricing model. The Black-Scholes option pricing model requires the use of certain assumptions. including expected terms, expected volatility, expected dividends and risk-free interest rate to calculate the fair value of stock-based payment awards. The assumptions used in calculating the fair value of stock option awards involve inherent uncertainties and the application of management judgment.
The expected term calculation is based upon the expected term the option is to be held, which is the full term of the option. The risk-free interest rate is based upon the U.S. Treasury yield in effect at the time of grant for an instrument with a maturity that is commensurate with the expected term of the stock options. The dividend yield of zero is based on the fact that we have
never paid
cash dividends on our common stock and we have no present intention to pay cash dividends. The expected forfeiture rate of 0% is based on the vesting of stock options in a short period of time.
During the year ended September 30. 2008 the Company granted the following stock options:
On September 9. 2008 the Board granted stock options to two (2) Directors and One (1) Officer to purchase 250,000 common shares each at an exercise price of $0.24 per share for a total of 750.000 common shares and to the Company's Chief Executive Officer to purchase 1.000.000 common shares at an exercise price of $0.24 per common share. These options
are each
granted in accordance with the terms of the Company's 2007 Non-Qualified Stock Option Plan and shall vest as follows:
(i) one fourth (1/4 th) of the shares shall vest and exercisable on the grant date. (ii) one fourth (1/4
u
')
of the shares shall vest six months from the grant date (iii) one fourth (1/4 `
11
) of the shares shall vest twelve months from the grant date, and (iv) one fourth (114
'0
of the shares shall vest eighteen months from the grant date. The option granted shall be for a term of 5 years.
Due to the resignation of the Chief Executive Officer and two directors of the Company. in March 2009, their unvested options got cancelled.
8
URANIUM HUNTER CORPORATION.
Condensed Notes to Interim Financial Statements
June 30, 2009
(Amounts expressed in US Dollars)
{Unaudited)
4.
Stock Based Compensation-Cont'd
For this nine month period ended June 30. 2009. the Company has recognized in the financial statements, stock-based compensation costs as per the following details. The fair value of each option used for the purpose of estimating the stock compensation is based on the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:
|
|
Date of grant
|
9 September
|
|
2008
|
Risk free race
|
2.95%
|
Volatility factor
|
109.06%
|
Expected dividends
|
|
Forfeiture rate
|
0%
|
Expected life
|
5 years
|
Exercise price
|
0.24
|
Total number of options
|
1,750,000
|
Grant date fair value
|
0.17
|
Total number of options forfeited
|
1,500.000
|
Stock-based compensation cost expensed during the nine month period ended June 30. 2009
|
S 74.083
|
Unexpended Stock -based compensation cost deferred over the vesting period
|
S 15.071
|
As of June 30, 2009 there was S15.071 of unrecognized expenses related to non-vested stock-based compensation arrangements granted.
5.
Loss per share
Increase in shares as a result of the stock splits is given retroactive recognition and the loss per share
calculated for all periods presented is based on
the post split number of shares.
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