This document provides financial statements for Prophecy Resource Corp. as of September 30, 2006. It includes an auditors' report stating the financial statements fairly represent the company's position. The balance sheet shows total assets of $310,106 including cash, mineral properties, and deferred exploration costs. Total liabilities are $23,292 and shareholders' equity is $286,814. The statement of operations shows a net loss of $98,686. Cash flow statements indicate $301,942 was provided by financing activities including share issuances. Notes provide details on the company's operations, accounting policies, mineral properties, and deferred finance fees.
Sample Financial Statements from Jazzit FundamentalsJazzit
Jazzit Fundamentals is Premier Financial Statement CaseWare Templates for the use of Canadian accountants, and includes up to date ASPE regulations. It is a deeply integrated and flexible template collection of Financial Statements for various entity structures with up to 20 attached schedules and more than 100 working paper and letter templates to automate year-end engagements with your corporate clients.
Founded in 2000, Jazzit is Canada’s leading supplier of premium CaseWare templates for accountants. Our products include Jazzit Fundamentals, Jazzit Checklists and Jazzit Score, creating a powerful suite of automated solutions for SME practioners. Jazzit Fundamentals, the flagship product, is an integrated suite of over 115 templates and letters that assist public accountants in completing year-end engagements with their corporate clients. With offices in Calgary, Alberta, and Kelowna, B.C., Jazzit’s software serves over 5,000 accounting professionals across Canada.
Resumo da apostila da Outliers Professional Language School com Relatórios Contábeis em Inglês, parte resumida do Curso Relatórios Contábeis em Inglês Online: http://online.outliers.com.br/relatorios-contabeis-em-ingles
Conheça o nosso curso de Inglês para Contadores! Amplie seu vocabulário técnico de contabilidade em inglês:
http://online.outliers.com.br/relatorios-contabeis-em-ingles
Este assunto te interessa, conheça os cursos de inglês profissional da Outliers:
http://outliers.com.br
Using LinkedIn Answers, the introduction function, who's viewed my profile, benefits of joining Groups, LinkedIn Etiquette, how to manage your network in 5 minutes a day.
Sample Financial Statements from Jazzit FundamentalsJazzit
Jazzit Fundamentals is Premier Financial Statement CaseWare Templates for the use of Canadian accountants, and includes up to date ASPE regulations. It is a deeply integrated and flexible template collection of Financial Statements for various entity structures with up to 20 attached schedules and more than 100 working paper and letter templates to automate year-end engagements with your corporate clients.
Founded in 2000, Jazzit is Canada’s leading supplier of premium CaseWare templates for accountants. Our products include Jazzit Fundamentals, Jazzit Checklists and Jazzit Score, creating a powerful suite of automated solutions for SME practioners. Jazzit Fundamentals, the flagship product, is an integrated suite of over 115 templates and letters that assist public accountants in completing year-end engagements with their corporate clients. With offices in Calgary, Alberta, and Kelowna, B.C., Jazzit’s software serves over 5,000 accounting professionals across Canada.
Resumo da apostila da Outliers Professional Language School com Relatórios Contábeis em Inglês, parte resumida do Curso Relatórios Contábeis em Inglês Online: http://online.outliers.com.br/relatorios-contabeis-em-ingles
Conheça o nosso curso de Inglês para Contadores! Amplie seu vocabulário técnico de contabilidade em inglês:
http://online.outliers.com.br/relatorios-contabeis-em-ingles
Este assunto te interessa, conheça os cursos de inglês profissional da Outliers:
http://outliers.com.br
Using LinkedIn Answers, the introduction function, who's viewed my profile, benefits of joining Groups, LinkedIn Etiquette, how to manage your network in 5 minutes a day.
The financial reports below are representative of Prophecy Resource Corp. prior to the consolidation with Red Hill Energy on April 2010. All reports are accessible from Sedar under Prophecy Resource Corp's filing page
Berong Nickel Corporation
The financial statements present all material respects and the financial position of Berong Nickel Corporation as at December 31, 2010 and 2009, and its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
The European Unemployment Puzzle: implications from population aging
2006 annual audited financial statements
1. PROPHECY RESOURCE CORP.
FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
AUDITORS’ REPORT
BALANCE SHEET
STATEMENT OF OPERATIONS AND DEFICIT
STATEMENT OF CASH FLOWS
NOTES TO FINANCIAL STATEMENTS
1
2. AUDITORS’ REPORT
To the Directors of Prophecy Resource Corp.
We have audited the balance sheet of Prophecy Resource Corp. as at September 30, 2006 and the statements of operations and
deficit and cash flows for the period from February 9, 2006 (inception) to September 30, 2006. These financial statements are
the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based
on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we
plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Company as at
September 30, 2006 and the results of its operations and its cash flows for the period from February 9, 2006 (inception) to
September 30, 2006 in accordance with Canadian generally accepted accounting principles.
“DMCL”
DALE MATHESON CARR-HILTON LABONTE LLP
CHARTERED ACCOUNTANTS
Vancouver, Canada
December 29, 2006
2
3. PROPHECY RESOURCE CORP.
BALANCE SHEET
AS AT SEPTEMBER 30, 2006
ASSETS
Current
Cash $ 157,944
Other receivables 4,430
162,374
Mineral properties (Note 3) 22,000
Deferred exploration costs (Note 4) 102,232
Deferred finance fees (Note 5) 17,000
Reclamation bond 6,500
$ 310,106
LIABILITIES
Current
Accounts payable and accrued liabilities $ 13,000
Due to related parties (Note 6) 10,292
23,292
SHAREHOLDERS’ EQUITY
Share capital (Note 7) 308,650
Contributed surplus (Note 9) 76,850
Deficit (98,686)
286,814
$ 310,106
Nature and continuance of operations (Note 1)
Commitments (Note 3 and 7)
Subsequent events (Note 11)
Approved on behalf of the Board:
“Stuart Rogers” Director “Donald Sharp” Director
Stuart Rogers Donald Sharp
The accompanying notes are an integral part of these financial statements.
3
4. PROPHECY RESOURCE CORP.
STATEMENT OF OPERATIONS AND DEFICIT
February 9,
2006
(inception) to
September 30,
2006
EXPENSES
Filing fees $ 1,727
Office, rent and miscellaneous 8,354
Management fees – stock based compensation (Note 7) 76,850
Professional fees 13,483
LOSS FROM OPERATIONS (100,414)
OTHER ITEM
Interest income 1,728
NET LOSS (98,686)
DEFICIT, BEGINNING -
DEFICIT, ENDING $ (98,686)
BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.03)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 3,122,008
The accompanying notes are an integral part of these financial statements.
4
5. PROPHECY RESOURCE CORP.
STATEMENT OF CASH FLOWS
February 9,
2006
(inception) to
September 30,
2006
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (98,686)
Non-cash operating items:
Stock based compensation 76,850
Changes in non-cash working capital items:
Increase in other receivables (4,430)
Increase in accounts payable and accrued liabilities 13,000
Net cash used in operating activities (13,266)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of mineral properties (22,000)
Deferred exploration costs (102,232)
Reclamation bond (6,500)
Net cash used in investing activities (130,732)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common shares for cash 308,650
Deferred finance fees (17,000)
Amounts due to related parties 10,292
Net cash provided by financing activities 301,942
Increase in cash during the period 157,944
Cash, beginning -
Cash, ending $ 157,944
Supplemental disclosures with respect to cash flows:
Cash paid during the period for interest $ -
Cash paid during the period for income taxes $ -
The accompanying notes are an integral part of these financial statements.
5
6. PROPHECY RESOURCE CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
1. NATURE AND CONTINUANCE OF OPERATIONS
The Company was incorporated under the Business Corporations Act (British Columbia) on February 9, 2006 and is
primarily in the exploration stage with respect to its mineral properties. Based on the information available to date,
the Company has not yet determined whether its mineral properties contain economically recoverable reserves. The
recoverability of the amounts shown for mineral properties and deferred exploration costs is dependent upon the
confirmation of economically recoverable reserves, the ability of the Company to obtain necessary financing to
successfully complete their development and upon future profitable production. The Company is in the process of
filing an Initial Public Offering prospectus with the British Columbia Securities Commission to raise up to $550,000
by issuing up to 2,200,000 shares at a price of $0.25 per share, subject to regulatory approval.
These financial statements have been prepared on a going concern basis which assumes that the Company will be
able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The
continuing operations of the Company are dependent upon its ability to raise adequate financing to develop its
mineral properties, and to commence profitable operations in the future. To date the Company has not generated
any significant revenues and is considered to be in the exploration stage.
2. SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
These financial statements have been prepared in accordance with Canadian generally accepted accounting
principles (“GAAP”) and are presented in Canadian dollars.
Use of estimates
The preparation of financial statements in conformity with Canadian GAAP requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amount of revenues and expenses during the
period. Actual results could differ from these estimates. Significant areas requiring the use of management
estimates relate to the determination of impairment of mineral property interests and future tax rates used to
determine future income taxes. Where estimates have been used financial results as determined by actual events
could differ from those estimates.
Mineral properties
The Company records its interests in mineral properties and areas of geological interest at cost. All direct and
indirect costs relating to the acquisition of these interests are capitalized on the basis of specific claim blocks or
areas of geological interest until the properties to which they relate are placed into production, sold or management
has determined there to be an impairment. These costs will be amortized on the basis of units produced in relation
to the proven reserves available on the related property following commencement of production. Mineral properties
which are sold before that property reaches the production stage will have all revenues from the sale of the property
credited against the cost of the property. Properties which have reached the production stage will have a gain or
loss calculated based on the portion of that property sold.
The recorded cost of mineral exploration interests is based on cash paid, the value of share considerations and
exploration and development costs incurred. The recorded amount may not reflect recoverable value as this will be
dependent on the development program, the nature of the mineral deposit, commodity prices, adequate funding and
the ability of the Company to bring its projects into production.
Management evaluates each mineral interest on a reporting period basis or as changes in events and circumstances
warrant, and makes a determination based on exploration activity and results, estimated future cash flows and
availability of funding as to whether costs are capitalized or charged to operations. Mineral property interests,
where future cash flows are not reasonably determinable, are evaluated for impairment based on management’s
intentions and determination of the extent to which future exploration programs are warranted and likely to be
funded.
6
7. PROPHECY RESOURCE CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
2. SIGNIFICANT ACCOUNTING POLICIES (cont'd…)
Deferred finance fees
The Company capitalizes fees incurred in connection with proposed equity financings. These finance fees will be
offset against the proceeds of the financing or charged to operations if the financing is not completed.
Deferred exploration costs
The Company defers all exploration costs relating to mineral properties and areas of geological interest until the
properties to which they relate are placed into production, sold, abandoned or management has determined there to
be an impairment. These costs will be amortized on the basis of units produced in relation to the estimated reserves
available on the related property following commencement of production or written-off to operations in the period
related properties are abandoned.
Environmental protection and reclamation costs
The Company's policy relating to environmental protection and land reclamation programmes is to charge to income
during the period any costs incurred in environmental protection and land reclamation.
Foreign currency translation
The Company’s monetary assets and liabilities that are denominated in foreign currencies are translated at the rate
of exchange at the balance sheet date. Non-monetary assets and liabilities are translated at exchange rates
prevailing at the transaction date. Income and expenses are translated at rates which approximate those in effect on
transaction dates. Gains and losses arising on translation are included in earnings.
Financial instruments
The Company’s financial instruments consist of cash, other receivables, accounts payable and accrued liabilities,
and amounts due to related parties. Unless otherwise noted, it is management’s opinion that the Company is not
exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of
these financial instruments approximates their carrying values, unless otherwise noted.
Future income taxes
Future income taxes are recorded using the asset and liability method whereby future tax assets and liabilities are
recognized for the future tax consequences attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases. Future tax assets and liabilities are
measured using the enacted or substantively enacted tax rates expected to apply when the asset is realized or the
liability settled. The effect on future tax assets and liabilities of a change in tax rates is recognized in income in the
period that substantive enactment or enactment occurs. To the extent that the Company does not consider it more
likely than not that a future tax asset will be recovered, it provides a valuation allowance against the excess.
Stock-based compensation
The Company has adopted the accounting standards issued by the Canadian Institute of Chartered Accountants
(“CICA”) Handbook Section, Stock-based compensation and other stock-based payments, which recommends the
fair-value based method for measuring compensation costs. The Company determines the fair value of the stock-
based compensation using the Black-Scholes option pricing model.
Loss per share
The Company uses the treasury stock method to compute the dilutive effect of options, warrants and similar
instruments. Under this method the dilutive effect on loss per share is recognized on the use of the proceeds that
could be obtained upon exercise of options, warrants and similar instruments. It assumes that the proceeds would
be used to purchase common shares at the average market price during the period. Basic and diluted loss per
common share are calculated using the weighted-average number of common shares outstanding during the period.
7
8. PROPHECY RESOURCE CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
2. SIGNIFICANT ACCOUNTING POLICIES (cont'd…)
Flow-through shares
The Company provides certain share subscribers with a flow-through component for tax incentives available on
qualifying Canadian exploration expenditures. The Company renounces the qualifying expenditures upon the
issuance of the respective flow-through common shares and accordingly is not entitled to the related taxable income
deductions from such expenditures.
The Company has adopted the recommendation by the Emerging Issues Committee (“EIC”) of the CICA relating to
the recording of flow-through shares. EIC 146 stipulates that future income tax liabilities resulting from the
renunciation of qualified resource expenditures by the Company from the issuance of flow-through shares are
recorded as a reduction of share capital. Any corresponding realization of future income tax benefits resulting in the
utilization of prior year losses available to the Company not previously recorded, whereby the Company did not
previously meet the criteria for recognition, are reflected as part of the Company’s operating results in the period the
Company files the appropriate tax documents with the Canadian tax authorities.
Asset retirement obligations
The Company has adopted the CICA Handbook section 3110, Asset retirement obligations. This standard focuses
on the recognition and measurement of liabilities related to obligations associated with the retirement of property,
plant and equipment. Under this standard, these obligations are initially measured at fair value and subsequently
adjusted for any changes resulting from the passage of time and revisions to either the timing or the amount of the
original estimate of undiscounted cash flows. The asset retirement cost is to be capitalized to the related asset and
amortized into earnings over time. This section became effective on January 1, 2004. Mineral property related
retirement obligations are capitalized as part of deferred exploration and development costs.
3. MINERAL PROPERTIES
September 30,
2006
OK Property, British Columbia, Canada $ 22,000
Title to mining properties involves certain inherent risks due to the difficulties of determining the validity of certain
claims as well as the potential for problems arising from the frequently ambiguous conveyancing history
characteristic of many mining properties. The Company has investigated title to all of its mineral properties and, to
the best of its knowledge, title to all of its properties are in good standing.
On March 8, 2006 the Company acquired Goldrush Resource Corp.’s (“Goldrush”) option with Eastfield Resource
Corp. (“Eastfield”) whereby Goldrush had the right to earn an interest in mineral exploration claims located north of
Powell River in British Columbia (the “OK Property”) from Eastfield. The Company can earn a 60% interest in the
OK Property from Eastfield by spending up to $1,000,000 in exploration costs on the OK Property within four years
of the date of the agreement and by making cash payments totalling $110,000 (paid $10,000). To acquire the option
from Goldrush, the Company agreed to issue to Goldrush 100,000 shares of the Company (issued) at a value of
$12,000 and make a payment of $10,000 on completion of its proposed Initial Public Offering.
8
9. PROPHECY RESOURCE CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
4. DEFERRED EXPLORATION COSTS
The following exploration expenses were incurred on the OK Property during the period:
Balance, February 9, 2006 $ -
Assays 8,794
Consulting 36,254
Field expenses 43,681
Road building 13,503
Balance, September 30, 2006 $ 102,232
5. DEFERRED FINANCE FEES
On October 24, 2006 the Company entered into an agreement with Bolder Investment Partners, Ltd. (“Bolder”)
whereby Bolder has agreed, subject to regulatory approval and certain conditions, to act as the agent to sell up to
$550,000 of the Company’s securities in an Initial Public Offering (the “Offering”). The Offering will consist of
2,200,000 shares of the Company at $0.25 per share for gross proceeds of $550,000. As compensation, Bolder is to
receive a work fee of $10,000 (of which $5,000 has been paid), a corporate finance fee of 75,000 shares, a
commission of 8% of the gross proceeds of the Offering, and be issued Broker’s Warrants equivalent to 10% of the
number of Shares sold under the Offering, with each Broker Warrant exercisable to purchase a share at the Offering
price for a period of one year from the date of the Offering.
To date the Company has incurred $17,000 in direct costs consisting of legal and agent fees in connection with this
proposed financing.
6. RELATED PARTY TRANSACTIONS
The Company entered into the following transactions with related parties:
a) Accrued office rent of $7,500 to a company controlled by a director of the Company.
b) Paid $99,232 to a private company in which a director is a 50% partner for exploration work done on the
Company’s property. Included in this amount are geological consulting fees of $2,700 which were paid to this
same director.
c) See Note 7
These transactions were in the normal course of operations and were measured at the exchange amount, which was
the amount of consideration established and agreed to by the related parties.
At September 30, 2006 $10,292 is owing to related parties. Amounts due to related parties are non-interest bearing,
unsecured and have no fixed terms of repayment.
9
10. PROPHECY RESOURCE CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
7. SHARE CAPITAL
Number
of Shares Amount
Authorized
Unlimited number of common shares without par value
Issued
Balance at February 9, 2006 - $ -
Shares issued for cash at $0.001 per share 2,650,000 2,650
Shares issued for mineral property at $0.12 per share 100,000 12,000
Shares issued for cash at $0.12 per share 2,450,000 294,000
Balance as at September 30, 2006 5,200,000 $ 308,650
As at September 30, 2006, 3,050,000 common shares included in capital stock are held in escrow. The shares subject
to escrow will be released as follows: 10% upon the issuance of notice of listing of the common shares for trading by
the TSX-V, and the remainder in six equal tranches of 15% every six months thereafter for a period of 36 months.
On March 31, 2006 the Company issued 2,650,000 founders’ shares at $0.001 per share for proceeds of $2,650.
Management determined that the fair value of the 2,650,000 escrowed shares issued to the founders of the Company
to be $79,500, or $0.03 per share. As a result, an amount of $76,850 was expensed in the period to management fees.
On April 30, 2006 the Company issued 100,000 shares to Goldrush at an agreed price of $0.12 per share. Refer to
Note 3.
On June 20, 2006 the Company issued 850,000 flow-through shares at a price of $0.12 per share for proceeds of
$102,000 pursuant to a private placement.
As at September 30, 2006, $101,194 was expended as qualifying exploration expenditures. The Company is
committed to spending a total of $102,000 on qualifying exploration expenditures to be renounced to investors. If
this is not done, certain amounts become payable to investors and the Canada Revenue Agency. The Company
intends on meeting its commitment on a timely basis.
On June 23, 2006 the Company issued 1,400,000 units at a price of $0.12 per unit for proceeds of $168,000 pursuant
to a private placement. Each unit consisted of one common share and one share purchase warrant. Each warrant is
exercisable into an additional common share at a price of $0.15 for a period of the earlier of December 23, 2007 or
twelve months from the date the British Columbia Securities Commission accepts the Company's IPO prospectus.
The Company has not recorded a separate value to the warrants.
On August 30, 2006 the Company issued 200,000 units at a price of $0.12 per unit for proceeds of $24,000 pursuant
to a private placement. Each unit consisted of one common share and one share purchase warrant. Each warrant is
exercisable into an additional common share at a price of $0.15 for a period of the earlier of February 28, 2008 or
twelve months from the date the British Columbia Securities Commission accepts the Company’s IPO prospectus.
The Company has not recorded a separate value to the warrants.
8. STOCK OPTIONS AND WARRANTS
Stock options
The Company intends to follow the policies of the TSX-V under which it would be authorized to grant options to
executive officers and directors, employees and consultants enabling them to acquire up to 10% of the issued and
outstanding common stock of the Company. Under the policies, the exercise price of each option equals the market
price or a discounted price of the Company’s stock as calculated on the date of grant. The options can be granted for
a maximum term of five years. The Company has not yet granted any stock options or recorded any stock-based
compensation.
10
11. PROPHECY RESOURCE CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
8. STOCK OPTIONS AND WARRANTS (cont’d…)
Warrants
The following warrants were outstanding at September 30, 2006:
Number Exercise Price Expiry Date
1,400,000 $0.15 The earlier of December 23, 2007 or twelve months from the
effective date of the Company’s IPO
200,000 $0.15 The earlier of February 28, 2008 or twelve months from the
effective date of the Company’s IPO
The weighted average remaining life of the warrants is 1.23 years and the weighted average exercise price is $0.15.
9. CONTRIBUTED SURPLUS
Balance, February 9, 2006 $ -
Stock-based compensation expense (Note 7) 76,850
Balance, August 31, 2006 $ 76,850
10. FUTURE INCOME TAXES
The actual income tax provisions differ from the expected amounts calculated by applying the Canadian combined
federal and provincial corporate income tax rates to the Company’s loss before income taxes. The components of
these differences are as follows:
2006
Loss before income taxes $ 98,686
Corporate tax rate 34.9%
34,441
Non-capital loss carryforward (7,620)
Non-deductible item (26,821)
Future income tax provision $ -
The Company has non-capital losses of approximately $21,000 which may be available to offset future income for
income tax purposes which expire over the next ten years. In addition, there are resource-related expenditures of
approximately $101,000 which maybe be used to offset future taxable resource income indefinitely, subject to
annual rates prescribed by the Canadian Income Tax Act. However, upon the renunciation of qualified resource
expenditures by the Company from the issuance of flow-through shares, the resource-related expenditures will be
reduced by the renounced amounts. Due to the uncertainty of realization of these loss carryforwards, the benefit is
not reflected in the financial statements as the Company has provided a full valuation allowance for the potential
future tax assets resulting from these loss carryforwards.
11. SUBSEQUENT EVENTS
The Company is in the process of filing an Initial Public Offering prospectus with the British Columbia Securities
Commission to raise up to $550,000, subject to regulatory approval.
On November 15, 2006 the Company granted 450,000 options to acquire 450,000 common shares of the Company
at a price of $0.25 per share. The options will expire five years from the date of listing of the Company’s common
shares on the TSX-V.
11