ITEM 1. FINANCIAL STATEMENTS
The un-audited quarterly financial statements for the period ended February 29,
2008, prepared by the company, immediately follow.
Notes to Financial Statements
February 29, 2008
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Rite Time Mining Corp. (the Company) was incorporated on May 3, 2006 under the
laws of the State of Nevada. The Company is primarily engaged in the acquisition
and exploration of mining properties.
The Company has been in the exploration stage since its formation and has not
yet realized any revenues from its planned operations. Upon the location of
commercially mineable reserves, the Company plans to prepare for mineral
extraction and enter the development stage.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The Company reports revenue and expenses using the accrual method of accounting
for financial and tax reporting purposes.
USE OF ESTIMATES
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities, and the reported revenues
and expenses.
MINERAL PROPERTY ACQUISITION AND EXPLORATION COSTS
Mineral property acquisition, exploration and development costs are expensed as
incurred until such time as economic reserves are quantified. To date the
Company has not established any proven or probable reserves on its mineral
properties.
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DEPRECIATION, AMORTIZATION AND CAPITALIZATION
The Company records depreciation and amortization, when appropriate, using
straight-line method over the estimated useful lives of the assets (five to
seven years). Expenditures for maintenance and repairs are charged to expense as
incurred. Additions, major renewals and replacements that increase the
property's useful life are capitalized. Property sold or retired, together with
the related accumulated depreciation is removed from the appropriate accounts
and the resultant gain or loss is included in net income.
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Rite Time Mining Corp.
(An Exploration Stage Company)
Notes to Financial Statements
February 29, 2008
INCOME TAXES
The Company accounts for its income taxes in accordance with Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes". Under
Statement 109, a liability method is used whereby deferred tax assets and
liabilities are determined based on temporary differences between basis used for
financial reporting and income tax reporting purposes. Income taxes are provided
based on tax rates in effect at the time such temporary differences are expected
to reverse. A valuation allowance is provided for certain deferred tax assets if
it is more likely than not, that the Company will not realize the tax assets
through future operations.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Financial accounting Standards Statement No. 107, "Disclosures about Fair Value
of Financial Instruments", requires the Company to disclose, when reasonably
attainable, the fair market values of its assets and liabilities which are
deemed to be financial instruments. The Company's financial instruments consist
primarily of cash and certain investments.
INVESTMENTS
Investments that are purchased in other companies are valued at cost less any
impairment in the value that is other than temporary in nature.
PER SHARE INFORMATION
The Company computes per share information by dividing the net loss for the
period presented by the weighted average number of shares outstanding during
such period.
NOTE 3 - PROVISION FOR INCOME TAXES
The provision for income taxes for the period ended February 29, 2008 represents
the minimum state income tax expense of the Company, which is not considered
significant.
NOTE 4 - COMMITMENTS AND CONTINGENCIES
LITIGATION
The Company is not presently involved in any litigation.
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Rite Time Mining Corp.
(An Exploration Stage Company)
Notes to Financial Statements
February 29, 2008
NOTE 5 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Instruments-an amendment of FASB Statements No. 133 and 140" to
simplify and make more consistent the accounting for certain financial
instruments. SFAS No. 155 amends SFAS No. 133 "Accounting for Derivative
Instruments and Hedging Activities", to permit fair value re-measurement for any
hybrid financial instrument with an embedded derivative that otherwise would
require bifurcation, provided that the whole instrument is accounted for on a
fair value basis. SFAS NO. 155 amends SFAS NO. 140, "Accounting for the
Impairment or disposal of Long-Lived Assets" to allow a qualifying
special-purpose entity to hold a derivative financial instrument that pertains
to a beneficial interest other than another derivative financial instrument.
SFAS No. 155 applies to all financial instruments acquired or issued after the
beginning of an entity's first fiscal year that begins after September 15, 2006,
with earlier application allowed.
In March 2006, the FASB issued SFAS No. 156 "Accounting for Servicing of
Financial Assets, an amendment of FASB Statement NO. 140, Accounting for
Transfers and Servicing of Financial Assets and Extinguishments of Liabilities".
This statement requires all separately recognized servicing assets and servicing
liabilities be initially measured at fair value, if practicable, and permits for
subsequent measurement using either fair value measurement with changes in fair
value reflected in earning or the amortization and impairment requirement of
Statement No. 140. The subsequent measurement of separately recognized servicing
assets and servicing liabilities at fair value eliminates the necessity for
entities that manage the risks inherent in servicing assets and servicing
liabilities with derivatives t qualify for hedge accounting treatment and
eliminates the characterization of declines in fair value as impairments or
direct write-downs. SFAS No. 156 is effective for an entity's first fiscal year
beginning after September 15, 2006.
These statements are not expected to have a significant effect on the Company's
future reported financial position or results of operations.
NOTE 6 - GOING CONCERN
Future issuances of the Company's equity or debt securities will be required in
order for the Company to continue to finance its operations and continue as a
going concern. The Company's present revenues are insufficient to meet operating
expenses.
The financial statement of the Company have been prepared assuming that the
Company will continue as a going concern, which contemplates, among other
things, the realization of assets and the satisfaction of liabilities in the
normal course of business. The Company has incurred cumulative net losses of $
20,836. since its inception and
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Rite Time Mining Corp.
(An Exploration Stage Company)
Notes to Financial Statements
February 29, 2008
NOTE 6 - GOING CONCERN (CONTINUED)
requires capital for its contemplated operational and marketing activities to
take place. The Company's ability to raise additional capital through the future
issuances of common stock is unknown. The obtainment of additional financing,
the successful development of the Company's contemplated plan of operations, and
its transition, ultimately, to the attainment of profitable operations are
necessary for the Company to continue operations. The ability to successfully
resolve these factors raise substantial doubt about the Company's ability to
continue as a going concern. The financial statement of the Company do not
include any adjustments that may result from the outcome of these aforementioned
uncertainties.
NOTE 7 - RELATED PARTY TRANSACTIONS
Linda Farrell, the sole officer and director of the Company may, in the future,
become involved in other business opportunities as they become available, thus
she may face a conflict in selecting between the Company and her other business
opportunities. The Company has not formulated a policy for the resolution of
such conflicts.
While the Company is seeking additional capital, Ms. Farrell has advanced funds
to the Company to pay for any costs incurred by it. These funds are interest
free. The balance due Ms. Farrell was $5,000 on February 29, 2008.
NOTE 8 - STOCK TRANSACTIONS
Transactions, other than employees' stock issuance, are in accordance with
paragraph 8 of SFAS 123. Thus issuances shall be accounted for based on the fair
value of the consideration received. Transactions with employees' stock issuance
are in accordance with paragraphs (16-44) of SFAS 123. These issuances shall be
accounted for based on the fair value of the consideration received or the fair
value of the equity instruments issued, or whichever is more readily
determinable.
On August 4, 2006 the Company issued a total of 1,500,000 shares of common stock
to one director for cash in the amount of $0.005 per share for a total of
$7,500.
On March 29, 2007 the Company issued a total of 795,000 shares of common stock
for cash in the amount of $0 .02 per share for a total of $15,900.
On April 3, 2007 the Company issued a total of 80,000 shares of common stock for
cash in the amount of $0 .02 per share for a total of $1,600.
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Rite Time Mining Corp.
(An Exploration Stage Company)
Notes to Financial Statements
February 29, 2008
On April 4, 2007 the Company issued a total of 200,000 shares of common stock
for cash in the amount of $0 .02 per share for a total of $4,000
On April 16, 2007 the Company issued a total of 175,000 shares of common stock
for cash in the amount of $0 .02 per share for a total of $3,500
As of February 29, 2008 the Company had 2,750,000 shares of common stock issued
and outstanding.
NOTE 9 - STOCKHOLDERS' EQUITY
The stockholders' equity section of the Company contains the following classes
of capital stock as of February 29, 2008:
Common stock, $ 0.001 par value: 75,000,000 shares authorized; 2,750,000 shares
issued and outstanding.
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