Attached files
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 30, 2009
Commission File Number 333-156383
BOMPS MINING, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
3960 W. Point Loma Blvd., Suite H-436
San Diego, CA 92110
(Address of principal executive offices, including zip code)
Telephone 1-480-451-7056
Facsimile 1-443-458-7056
(Telephone number, including area code)
Copy to:
Robert C. Weaver, Jr.
721 Devon Court
San Diego, CA 92109
Phone (858)488-4433 Fax (858) 488-2555
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 last 90 days. YES [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of
this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files). YES [ ] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer,"
"non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the
Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 or the Exchange Act). YES [X] NO [ ]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 4,000,000 shares as of January 14,
2010.
ITEM 1. FINANCIAL STATEMENTS
The un-audited quarterly financial statements for the 3 months ended November
30, 2009, prepared by the company, immediately follow.
2
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Balance Sheets
November 30, August 31,
2009 2009
-------- --------
ASSETS
Current Assets
Cash $ 29,140 $ --
Restricted cash -- 26,400
-------- --------
Total Current Assets 29,140 26,400
-------- --------
Total Assets $ 29,140 $ 26,400
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Outstanding checks in excess of bank balance $ -- $ 820
Accounts payable 5,310 1,500
Loan from director 4,250 4,200
-------- --------
Current Liabilities $ 9,560 $ 6,520
-------- --------
STOCKHOLDERS' EQUITY
Common stock subscribed -- 26,400
Common stock: $0.0001 par value; 80,000,000 authorized;
4,000,000 common shares issued and outstanding at
November 30, 2009 and August 31, 2009 400 300
Additional paid in capital 44,600 14,700
Accumulated deficit during exploration stage (25,420) (21,520)
-------- --------
Total stockholders' equity 19,580 19,880
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 29,140 $ 26,400
======== ========
The accompanying notes are an integral part of these financial statements.
3
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Statements of Operations
July 16, 2008
(Date of Inception)
3 months Ended 3 months Ended through
November 30, November 30, November 30,
2009 2008 2009
---------- ---------- ----------
Revenue $ -- $ -- $ --
---------- ---------- ----------
Cost of revenue -- -- --
Gross profit -- -- --
General, selling, and administrative expenses 3,900 2,960 18,420
Mineral Expenditures -- 7,000
---------- ---------- ----------
Operating loss (3,900) (2,960) (25,420)
Non-operating income (expense) -- -- --
---------- ---------- ----------
Net loss $ (3,900) $ (2,960) $ (25,420)
========== ========== ==========
Net loss per share, basic and diluted $ (0.00) $ (0.00)
========== ==========
Weighted average number of common shares outstanding 3,813,187 3,000,000
========== ==========
The accompanying notes are an integral part of these financial statements.
4
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Statement of Stockholders' Equity
From Inception July 16, 2008 to November 30, 2009
Deficit
Accumulated
Common During
Common Stock Paid in Stock Exploration Total
Shares Amount Capital Subscribed Stage Equity
------ ------ ------- ---------- ----- ------
Common Shares issued to founders
@ $0.005 per share 3,000,000 $ 300 $ 14,700 $ -- $ -- $ 15,000
Net loss, August 31, 2008 -- -- -- -- (7,394) (7,394)
--------- ------ -------- -------- --------- --------
Balance, August 31, 2008 3,000,000 $ 300 $ 14,700 $ -- $ (7,394) $ 7,606
========= ====== ======== ======== ========= ========
Common stock subscribed, 880,000
shares at $0.03 per share -- -- -- 26,400 -- 26,400
Net loss, August 31, 2009 -- -- -- -- (14,126) (14,126)
--------- ------ -------- -------- --------- --------
Balance, August 31, 2009 3,000,000 $ 300 $ 14,700 $ 26,400 $ (21,520) $ 19,880
========= ====== ======== ======== ========= ========
Common stock issued, 1,000,000
shares at $0.03 per share 1,000,000 100 29,900 (26,400) -- 3,600
Net loss, November 30, 2009 -- -- -- -- (3,900) (3,900)
--------- ------ -------- -------- --------- --------
Balance, November 30, 2009 4,000,000 $ 400 $ 44,600 $ -- $ (25,420) $ 19,580
========= ====== ======== ======== ========= ========
The accompanying notes are an integral part of these financial statements.
5
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Statements of Cash Flows
July 16, 2008
(Date of Inception)
3 months Ended 3 months Ended through
November 30, November 30, November 30,
2009 2008 2009
-------- -------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (3,900) $ (2,960) $(25,420)
Increase in Accounts payable 3,810 2,425 5,310
-------- -------- --------
NET CASH USED IN OPERATING ACTIVITIES (90) (535) (20,110)
-------- -------- --------
CASH FLOWS FROM INVESTING ACTIVITIES -- -- --
-------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Outstanding checks in excess of bank balance (820) -- --
Increase in loan from director 50 -- 4,250
Issuance of common stock 30,000 -- 45,000
-------- -------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 29,230 -- 49,250
-------- -------- --------
Net increase in cash 29,140 (535) 29,140
Cash at Beginning of Year -- 7,606 --
-------- -------- --------
CASH AT END OF YEAR $ 29,140 $ 7,071 $ 29,140
======== ======== ========
Supplemental Disclosures for Cash Flow Information
Cash paid for:
Interest expense $ -- $ -- $ --
======== ======== ========
Income taxes $ -- $ -- $ --
======== ======== ========
The accompanying notes are an integral part of these financial statements.
6
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Notes to Financial Statements
(Unaudited)
November 30, 2009
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
BOMPS MINING, INC. (the Company) was incorporated on July 16, 2008 under the
laws of the State of Delaware. The Company is primarily engaged in the
acquisition and exploration of mining properties.
The Company currently has no operations and, in accordance with ASC 915
"DEVELOPMENT STAGE ENTITIES," is considered an Exploration Stage Enterprise. The
Company has been in the exploration stage since its formation and has not yet
realized any revenues from its planned operations.
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. Actual results could differ from those estimates.
CASH
For the Statement of Cash Flows, all highly liquid investments with maturity of
three months or less are considered to be cash equivalents. There were no cash
equivalents as of November 30, 2009 and August 31, 2009.
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.
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
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BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Notes to Financial Statements
(Unaudited)
November 30, 2009
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.
INCOME TAXES
The Company accounts for income taxes under ASC 740 "INCOME TAXES" which
codified SFAS 109, "ACCOUNTING FOR INCOME TAXES" and FIN 48 "ACCOUNTING FOR
UNCERTAINTY IN INCOME TAXES - AN INTERPRETATION OF FASB STATEMENT NO. 109."
Under the asset and liability method of ASC 740, deferred tax assets and
liabilities are recognized for the future tax consequences attributable to
differences between the financial statements carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be
recovered or settled. Under ASC 740, the effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period the
enactment occurs. A valuation allowance is provided for certain deferred tax
assets if it is more likely than not that the Company will not realize tax
assets through future operations.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company's financial instruments as defined by FASB ASC 825-10-50 include
cash, trade accounts receivable, and accounts payable and accrued expenses. All
instruments are accounted for on a historical cost basis, which, due to the
short maturity of these financial instruments, approximates fair value at
November 30, 2009.
FASB ASC 820 defines fair value, establishes a framework for measuring fair
value in accordance with generally accepted accounting principles, and expands
disclosures about fair value measurements. ASC 820 establishes a three-tier fair
value hierarchy which prioritizes the inputs used in measuring fair value as
follows:
Level 1. Observable inputs such as quoted prices in active markets;
Level 2. Inputs, other than the quoted prices in active markets, that are
observable either directly or indirectly; and
Level 3. Unobservable inputs in which there is little or no market data, which
requires the reporting entity to develop its own assumptions.
The Company does not have any assets or liabilities measured at fair value on a
recurring basis at November 30, 2009 and 2008. The Company did not have any fair
value adjustments for assets and liabilities measured at fair value on a
nonrecurring basis during the periods ended November 30, 2009 and 2008.
8
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Notes to Financial Statements
(Unaudited)
November 30, 2009
EARNINGS PER SHARE INFORMATION
FASB ASC 260, "EARNINGS PER SHARE" provides for calculation of "basic" and
"diluted" earnings per share. Basic earnings per share includes no dilution and
is computed by dividing net income (loss) available to common shareholders by
the weighted average common shares outstanding for the period. Diluted earnings
per share reflect the potential dilution of securities that could share in the
earnings of an entity similar to fully diluted earnings per share. Basic and
diluted loss per share were the same, at the reporting dates, as there were no
common stock equivalents outstanding.
SHARE BASED EXPENSES
ASC 718 "COMPENSATION - STOCK COMPENSATION" codified SFAS No. 123 prescribes
accounting and reporting standards for all stock-based payments award to
employees, including employee stock options, restricted stock, employee stock
purchase plans and stock appreciation rights. , may be classified as either
equity or liabilities. The Company should determine if a present obligation to
settle the share-based payment transaction in cash or other assets exists. A
present obligation to settle in cash or other assets exists if: (A) the option
to settle by issuing equity instruments lacks commercial substance or (B) the
present obligation is implied because of an entity's past practices or stated
policies. If a present obligation exists, the transaction should be recognized
as a liability; otherwise, the transaction should be recognized as equity
The Company accounts for stock-based compensation issued to non-employees and
consultants in accordance with the provisions of ASC 505-50 "EQUITY - BASED
PAYMENTS TO NON-EMPLOYEES" which codified SFAS 123 and the Emerging Issues Task
Force consensus in Issue No. 96-18 ("EITF 96-18"), "ACCOUNTING FOR EQUITY
INSTRUMENTS THAT ARE ISSUED TO OTHER THAN EMPLOYEES FOR ACQUIRING OR IN
CONJUNCTION WITH SELLING, GOODS OR SERVICES". Measurement of share-based payment
transactions with non-employees shall be based on the fair value of whichever is
more reliably measurable: (A) the goods or services received; or (B) the equity
instruments issued. The fair value of the share-based payment transaction should
be determined at the earlier of performance commitment date or performance
completion date.
NOTE 3 - COMMITMENTS AND CONTINGENCIES
The Company is not presently involved in any litigation.
9
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Notes to Financial Statements
(Unaudited)
November 30, 2009
NOTE 4 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
RECENTLY IMPLEMENTED STANDARDS
ASC 105, "GENERALLY ACCEPTED ACCOUNTING PRINCIPLES" (ASC 105) (formerly
Statement of Financial Accounting Standards No. 168, "THE FASB ACCOUNTING
STANDARDS CODIFICATION AND THE HIERARCHY OF GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES A REPLACEMENT OF FASB STATEMENT NO. 162)" reorganized by topic
existing accounting and reporting guidance issued by the Financial Accounting
Standards Board ("FASB") into a single source of authoritative generally
accepted accounting principles ("GAAP") to be applied by nongovernmental
entities. All guidance contained in the Accounting Standards Codification
("ASC") carries an equal level of authority. Rules and interpretive releases of
the Securities and Exchange Commission ("SEC") under authority of federal
securities laws are also sources of authoritative GAAP for SEC registrants.
Accordingly, all other accounting literature will be deemed "non-authoritative".
ASC 105 is effective on a prospective basis for financial statements issued for
interim and annual periods ending after September 15, 2009. The Company has
implemented the guidance included in ASC 105 as of July 1, 2009. The
implementation of this guidance changed the Company's references to GAAP
authoritative guidance but did not impact the Company's financial position or
results of operations.
ASC 855, "SUBSEQUENT EVENTS" (ASC 855) (formerly Statement of Financial
Accounting Standards No. 165, SUBSEQUENT EVENTS) includes guidance that was
issued by the FASB in May 2009, and is consistent with current auditing
standards in defining a subsequent event. Additionally, the guidance provides
for disclosure regarding the existence and timing of a company's evaluation of
its subsequent events. ASC 855 defines two types of subsequent events,
"recognized" and "non-recognized". Recognized subsequent events provide
additional evidence about conditions that existed at the date of the balance
sheet and are required to be reflected in the financial statements.
Non-recognized subsequent events provide evidence about conditions that did not
exist at the date of the balance sheet but arose after that date and, therefore;
are not required to be reflected in the financial statements. However, certain
non-recognized subsequent events may require disclosure to prevent the financial
statements from being misleading. This guidance was effective prospectively for
interim or annual financial periods ending after June 15, 2009. The Company
implemented the guidance included in ASC 855 as of April 1, 2009. The effect of
implementing this guidance was not material to the Company's financial position
or results of operations.
In August 2009, the FASB issued Accounting Standards Update No. 2009-05,
"MEASURING LIABILITIES AT FAIR VALUE," (ASU 2009-05). ASU 2009-05 provides
guidance on measuring the fair value of liabilities and is effective for the
first interim or annual reporting period beginning after its issuance. The
Company's adoption of ASU 2009-05 did not have an effect on its disclosure of
the fair value of its liabilities.
10
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Notes to Financial Statements
(Unaudited)
November 30, 2009
RECENTLY ISSUED STANDARDS
In September 2009, the FASB issued ASC Update No. 2009-12, "FAIR VALUE
MEASUREMENTS AND DISCLOSURES (TOPIC 820): INVESTMENTS IN CERTAIN ENTITIES THAT
CALCULATE NET ASSET VALUE PER SHARE (OR ITS EQUIVALENT)" (ASC Update No.
2009-12). This update sets forth guidance on using the net asset value per share
provided by an investee to estimate the fair value of an alternative investment.
Specifically, the update permits a reporting entity to measure the fair value of
this type of investment on the basis of the net asset value per share of the
investment (or its equivalent) if all or substantially all of the underlying
investments used in the calculation of the net asset value is consistent with
ASC 820. The update also requires additional disclosures by each major category
of investment, including, but not limited to, fair value of underlying
investments in the major category, significant investment strategies, redemption
restrictions, and unfunded commitments related to investments in the major
category. The amendments in this update are effective for interim and annual
periods ending after December 15, 2009 with early application permitted. The
Company does not expect that the implementation of ASC Update No. 2009-12 will
have a material effect on its financial position or results of operations.
In June 2009, FASB issued Statement of Financial Accounting Standards No. 167,
AMENDMENTS TO FASB INTERPRETATION NO. 46(R) ("Statement No. 167"). Statement No.
167 amends FASB Interpretation No. 46R, CONSOLIDATION OF VARIABLE INTEREST
ENTITIES AN INTERPRETATION OF ARB NO. 51 ("FIN 46R") to require an analysis to
determine whether a company has a controlling financial interest in a variable
interest entity. This analysis identifies the primary beneficiary of a variable
interest entity as the enterprise that has a) the power to direct the activities
of a variable interest entity that most significantly impact the entity's
economic performance and b) the obligation to absorb losses of the entity that
could potentially be significant to the variable interest entity or the right to
receive benefits from the entity that could potentially be significant to the
variable interest entity. The statement requires an ongoing assessment of
whether a company is the primary beneficiary of a variable interest entity when
the holders of the entity, as a group, lose power, through voting or similar
rights, to direct the actions that most significantly affect the entity's
economic performance. This statement also enhances disclosures about a company's
involvement in variable interest entities. Statement No. 167 is effective as of
the beginning of the first annual reporting period that begins after November
15, 2009. Although Statement No. 167 has not been incorporated into the
Codification, in accordance with ASC 105, the standard shall remain
authoritative until it is integrated. The Company does not expect the adoption
of Statement No. 167 to have a material impact on its financial position or
results of operations
In June 2009, the FASB issued Statement of Financial Accounting Standards No.
166, ACCOUNTING FOR TRANSFERS OF FINANCIAL ASSETS AN AMENDMENT OF FASB STATEMENT
NO. 140 ("Statement No. 166"). Statement No. 166 revises FASB Statement of
11
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Notes to Financial Statements
(Unaudited)
November 30, 2009
Financial Accounting Standards No. 140, ACCOUNTING FOR TRANSFERS AND
EXTINGUISHMENT OF LIABILITIES A REPLACEMENT OF FASB STATEMENT 125 ("Statement
No. 140") and requires additional disclosures about transfers of financial
assets, including securitization transactions, and any continuing exposure to
the risks related to transferred financial assets. It also eliminates the
concept of a "qualifying special-purpose entity", changes the requirements for
derecognizing financial assets, and enhances disclosure requirements. Statement
No. 166 is effective prospectively, for annual periods beginning after November
15, 2009, and interim and annual periods thereafter. Although Statement No. 166
has not been incorporated into the Codification, in accordance with ASC 105, the
standard shall remain authoritative until it is integrated. The Company does not
expect the adoption of Statement No. 166 will have a material impact on its
financial position or results of operations.
NOTE 5 - 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 statements 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
$25,420 since its inception and 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 statements of the Company do not include any adjustments that may
result from the outcome of these aforementioned uncertainties.
NOTE 6 - RELATED PARTY TRANSACTIONS
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.
12
BOMPS MINING, INC.
(An Exploration Stage Enterprise)
Notes to Financial Statements
(Unaudited)
November 30, 2009
While the company is seeking additional capital the director has advanced funds
to the company to pay any cost incurred by it. These funds are interest free.
The balance due to the director was $4,250 and $4,200 at November 30, 2009 and
August 31, 2009, respectively.
NOTE 7 - STOCKHOLDERS' EQUITY
The stockholders' equity section of the Company contains the following classes
of capital stock as of November 30, 2009:
Common Stock, $ 0.0001 par value: 80,000,000 shares authorized; 4,000,000 shares
issued and outstanding.
On August 31, 2008 the Company issued a total of 3,000,000 shares of common
stock to one director for cash in the amount of $0.005 per share for a total of
$ 15,000.
On September 18, 2009 the Company issued a total of 1,000,000 shares of common
stock to various individuals for cash in the amount of $0.03 per share for a
total of $ 30,000 to complete its S-1 offering.
As of November 30, 2009 the Company had 4,000,000 shares of common stock issued
and outstanding.
NET LOSS PER COMMON SHARE
Net loss per share is calculated in accordance with SFAS No. 128, "EARNINGS PER
SHARE." The weighted-average number of common shares outstanding during each
period is used to compute basic loss per share. Diluted loss per share is
computed using the weighted averaged number of shares and dilutive potential
common shares outstanding. Dilutive potential common shares are additional
common shares assumed to be exercised.
Basic net loss per common share is based on the weighted average number of
shares of common stock outstanding of 3,813,187 for the three months ended
November 30, 2009 and 3,000,000 shares for three months ended November 30, 2008.
As of November 30, 2009, November 30, 2008 and since inception, the Company had
no dilutive potential common shares.
13
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This quarterly report on Form 10-Q contains forward-looking statements that
involve risk and uncertainties. We use words such as "anticipate", "believe",
"plan", "expect", "future", "intend", and similar expressions to identify such
forward-looking statements. Investors should be aware that all forward-looking
statements contained within this quarterly report are good faith estimates of
management as of the date of this quarterly report. Our actual results could
differ materially from those anticipated in these forward-looking statements for
many reasons.
BOMPS MINING, INC.
Bomps Mining, Inc. was incorporated in the State of Delaware on July 16, 2008 to
engage in the acquisition, exploration and development of natural resource
properties. We intend to use the net proceeds from an offering of registered
shares to develop our business operations. We are an exploration stage company
with no revenues or operating history. The principal executive offices are
located at 3960 W. Point Loma Blvd., Suite H-436, San Diego, CA 92110. The
telephone number is (480) 451-7056.
We received our initial funding of $15,000 through the sale of common stock to
our officer and director, Ms. Ertz, who purchased 3,000,000 shares of our common
stock at $0.005 per share on July 16, 2008. On September 18, 2009 the Company
issued a total of 1,000,000 shares of common stock to various individuals for
cash in the amount of $0.03 per share for a total of $ 30,000 to complete our
S-1 offering. Our financial statements from inception (July 16, 2008) through
the period ended November 30, 2009 report a net loss of $25,420 and no revenues.
Our independent auditor has issued an audit opinion for Bomps Mining, Inc. which
includes a statement expressing substantial doubt as to our ability to continue
as a going concern.
We currently own a 100% undivided interest in a mineral property, the Zag 5-8
Mineral Claims (known as the "Zag Property"). The Zag Property consists of an
area of 82.64 acres located in the Weepah Hills Area, Esmeralda County, Nevada.
Title to the Zag Property is held by Bomps Mining, Inc. Our plan of operation is
to conduct mineral exploration activities on the property in order to assess
whether it contains mineral deposits capable of commercial extraction.
We have not earned any revenues to date and we do not anticipate earning
revenues until such time as we enter into commercial production of our mineral
properties. We are presently in the exploration stage of our business and we can
provide no assurance that we will discover commercially exploitable levels of
mineral resources on our property. Moreover, if such deposits are discovered,
there is no guarantee that we will enter into further substantial exploration
programs.
14
There is no current public market for our securities. As our stock is not
publicly traded, investors should be aware they probably will be unable to sell
their shares and their investment in our securities is not liquid.
PLAN OF OPERATION
Our plan of operation for the next twelve months is to complete the first two
phases of the exploration program on our claims consisting of geological
mapping, soil sampling and rock sampling. In addition to the $8,000 we
anticipate spending for Phase 1 and $9,000 on Phase 2 of the exploration program
as outlined below, we anticipate spending an additional $17,000 on professional
fees and complying with reporting obligations, and general administrative costs.
Total expenditures over the next 12 months are therefore expected to be
approximately $34,000. If we experience a shortage of funds during the next 12
months, we may utilize funds from our director, who has informally agreed to
advance funds to allow us to pay for professional fees and operation expenses,
however, she has no formal commitment, arrangement or legal obligation to
advance or loan funds to the company.
We engaged Mr. James W. McLeod, P. Geo., to prepare a geological evaluation
report on the Zag Property. Mr. McLeod's report summarizes the results of the
history of the exploration of the mineral claims, the regional and local geology
of the mineral claims and the mineralization and the geological formations
identified as a result of the prior exploration in the claim areas. The
geological report also gives conclusions regarding potential mineralization of
the mineral claims and recommends a further geological exploration program on
the mineral claims. The exploration program recommended by Mr. McLeod is as
follows:
Phase Exploration Program Cost Status
----- ------------------- ---- ------
Phase 1 Detailed Prospecting, mapping and soil $ 8,000 Expected to be completed in spring, 2010
geochemistry. The timeline for (depending on consulting geologist's
accomplishing this phase of fieldwork schedule).
including the turn-around time on analyses
is approximately two months.
Phase 2 Magnetometer and VLF electromagnetic, grid $ 9,000 Expected to be completed in spring, 2010
controlled surveys over the areas of (depending on the results of Phase 1, and
interest determined by the Phase 1 survey. consulting geologist's schedule).
Included in this estimated cost is
transportation, accommodation, board, grid
installation, two geophysical surveys, maps
and report
15
Phase 3 Induced polarization survey over grid $25,000 Dependent on the results of Phase 2, and
controlled anomalous area of interest consulting geologist's schedule.
outlined by Phase 1 and 2 fieldwork. Hoe or
bulldozer trenching, mapping and sampling of
bedrock anomalies. Includes assays, maps and
reports.
TOTAL ESTIMATED COST $42,000
We plan to commence Phase 1 of the exploration program on the claims in the
spring of 2010. We have a verbal agreement with James McLeod, the consulting
geologist, who prepared the geology report on our claims, to retain his services
for our planned exploration program. We expect this phase to take two weeks to
complete and an additional three months for the consulting geologist to receive
the results from the assay lab and prepare his report. If Phase 1 of the
exploration program is successful, we anticipate commencing Phase 2 in late
spring 2010. We expect this phase to take three weeks to complete and an
additional three months for the consulting geologist to receive the results from
the assay lab and prepare his report.
The above program costs are management's estimates based upon the
recommendations of the professional consulting geologist's report and the actual
project costs may exceed our estimates. To date, we have not commenced
exploration.
Following phase two of the exploration program, if it proves successful in
identifying mineral deposits, we intend to proceed with phase three of our
exploration program if we are able to raise the funds necessary. The estimated
cost of this program is $25,000 and will take approximately 4 weeks to complete
and an additional three to four months for the consulting geologist to receive
the results from the assay lab and prepare his report.
Subject to financing, we anticipate commencing the third phase sometime after
Phase 2 has been completed; the timing will depend on the consulting geologist's
schedule. We will require additional funding to proceed with phase three and any
subsequent work on the claims, we have no current plans on how to raise the
additional funding. We cannot provide investors with any assurance that we will
be able to raise sufficient funds to proceed with any work after the first two
phases of the exploration program.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any 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 is material to investors.
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LIMITED OPERATING HISTORY; NEED FOR ADDITIONAL CAPITAL
There is no historical financial information about us on which to base an
evaluation of our performance. We are an exploration stage company and have not
generated revenues from operations. We cannot guarantee we will be successful in
our business operations. Our business is subject to risks inherent in the
establishment of a new business enterprise, including limited capital resources,
possible delays in the exploration of our property, and possible cost overruns
due to increases in the cost of services.
To become profitable and competitive, we must conduct the exploration of our
properties before we start into production of any minerals we may find. We
believe that the funds from our offering will allow us to operate for one year.
We have no assurance that future financing will materialize. If that financing
is not available to us for the third phase of our exploration program we may be
unable to continue.
LIQUIDITY AND CAPITAL RESOURCES
Our cash balance at November 30, 2009 was $29,140 with outstanding liabilities
of $9,560. If the first two phases of our exploration program are successful in
identifying mineral deposits we will attempt to raise the necessary funds to
proceed with phase three, and any subsequent drilling and extraction. The
sources of funding we may consider to fund this work include a second public
offering, a private placement of our securities or loans from our director or
others.
Our director has agreed to advance funds as needed and has agreed to pay the
cost of reclamation of the property should exploitable minerals not be found and
we abandon the third phase of our exploration program and there are no remaining
funds in the company. While she has agreed to advance the funds, the agreement
is verbal and is unenforceable as a matter of law. To date she has loaned the
company $4,250 for which there are no specific terms of repayment.
The property in the Company's portfolio, on which the net proceeds of our recent
offering will be spent, is the Zag 5-8 Mineral Claims. We have not carried out
any exploration work on the claims and have incurred no exploration costs.
RESULTS OF OPERATIONS
We are still in our exploration stage and have generated no revenues to date. We
received our initial funding of $15,000 through the sale of common stock to our
officer and director, Ms. Ertz, who purchased 3,000,000 shares of our common
stock at $0.005 per share on July 16, 2008. On September 18, 2009 the Company
issued a total of 1,000,000 shares of common stock to various individuals for
cash in the amount of $0.03 per share for a total of $ 30,000 to complete our
S-1 offering.
We incurred operating expenses of $3,900 and $2,960 for the three months ended
November 30, 2009 and 2008, respectively. These expenses consisted of general
17
operating expenses and professional fees incurred in connection with the day to
day operation of our business and the preparation and filing of our reports with
the Securities and Exchange Commission. Our financial statements from inception
(July 16, 2008) through the period ended November 30, 2009 report no revenues
and a net loss of $25,420.
ITEM 4. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Management maintains "disclosure controls and procedures," as such term is
defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the
"Exchange Act"), that are designed to ensure that information required to be
disclosed in Bomp Mining Inc.'s Exchange Act reports is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission rules and forms, and that such information is accumulated
and communicated to management, including our Chief Executive Officer and Chief
Financial Officer, as appropriate, to allow timely decisions regarding required
disclosure.
In connection with the preparation of this quarterly report on Form 10-Q, an
evaluation was carried out by management, with the participation of the Chief
Executive Officer and the Chief Financial Officer, of the effectiveness of our
disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
under the Exchange Act) as of November 30, 2009.
Based on that evaluation, management concluded, as of the end of the period
covered by this report, that Bomp Mining Inc.'s disclosure controls and
procedures were effective such that the material information required to be
included in our Securities and Exchange Commission reports is accumulated and
communicated to our management, including our principal executive and financial
officer and is recorded, processed, summarized and reported within the time
periods specified in Securities and Exchange Commission rules and forms relating
to our company.
CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING
As of the end of the period covered by this report, there have been no changes
in Bomp Mining Inc.'s internal controls over financial reporting during the
quarter ended November 30, 2009, that materially affected, or are reasonably
likely to materially affect, our internal control over financial reporting
subsequent to the date of management's last evaluation.
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PART II - OTHER INFORMATION
ITEM 6. EXHIBITS
Exhibit No. Description
----------- -----------
3.1 Articles of Incorporation*
3.2 Bylaws*
31.1 Sec. 302 Certification of Principal Executive Officer
31.2 Sec. 302 Certification of Principal Financial Officer
32.1 Sec. 906 Certification of Principal Executive Officer
32.2 Sec. 906 Certification of Principal Financial Officer
----------
* Exhibit is incorporated by reference and can be found in its entirety in
our Registration Statement on Form S-1 (SEC File Number 333-156383) on the
website at www.sec.gov
SIGNATURES
Pursuant to the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf in Scottsdale, AZ, by the undersigned, thereunto duly authorized.
January 14, 2010 Registrant: Bomps Mining, Inc.
By: /s/ Kris Ertz
--------------------------------------------------------
Kris Ertz, Director, President, Secretary, Treasurer and
Chief Financial Officer (Principal Executive Officer and
Principal Accounting Officer)
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