The accompanying notes are an integral part of these condensed
financial statements
The accompanying notes are an integral part of these condensed
financial statements
The accompanying notes are an integral part of these condensed
financial statements
CATACA
RESOURCES,
INC.
Condensed
Statements
of
Changes
in
Stockholders
Equity
(Deficit)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
Common
|
|
|
Additional
|
|
|
|
|
|
other
|
|
|
|
|
|
|
Common
|
|
|
Stock
|
|
|
paid-in
|
|
|
Accumulated
|
|
|
comprehensive
|
|
|
|
|
|
|
stock
|
|
|
amount
|
|
|
capital
|
|
|
deficit
|
|
|
income
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2014
|
|
30,000,000
|
|
|
30,000
|
|
|
-
|
|
|
(63,947
|
)
|
|
-
|
|
|
(33,947
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss, December 31, 2015
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(54,486
|
)
|
|
-
|
|
|
(54,486
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2015
|
|
30,000,000
|
|
$
|
30,000
|
|
$
|
- $
|
|
|
(126,489
|
)
|
$
|
-
|
|
$
|
(96,489
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss, June 30, 2016
(unaudited)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(18,912
|
)
|
|
-
|
|
|
(18,912
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, June 30, 2016 (unaudited)
|
|
30,000,000
|
|
$
|
30,000
|
|
$
|
- $
|
|
|
(145,401
|
)
|
$
|
-
|
|
$
|
(115,401
|
)
|
The accompanying notes are an integral part of these condensed
financial statements
7
CATACA RESOURCES, INC.
Condensed Statements of
Cash Flows
(Unaudited)
|
|
Six Months
Ended
|
|
|
|
June
30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities:
|
|
|
|
|
|
|
Net (loss) income
|
$
|
(18,912
|
)
|
$
|
(45,611
|
)
|
Adjustments to reconcile
net loss to net cash (used in) provided by operating
activities:
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Increase (decrease) in accounts payable
|
|
1,205
|
|
|
1,314
|
|
Net cash (used in) provided by operating
activities
|
|
(17,707
|
)
|
|
(44,297
|
)
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
Acquisition of mineral
property
|
|
-
|
|
|
-
|
|
Net cash (used in) investing activities
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
Proceeds from stock issuances
|
|
-
|
|
|
-
|
|
Proceed from related party obligation payable
|
|
20,000
|
|
|
49,000
|
|
Net cash provided by
financing activities
|
|
20,000
|
|
|
49,000
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash
|
|
2,293
|
|
|
4,703
|
|
Cash, beginning of the period
|
|
4,537
|
|
|
1,507
|
|
Cash, end of the
period
|
$
|
6,830
|
|
$
|
6,210
|
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities
|
$
|
-
|
|
$
|
-
|
|
|
|
|
|
|
|
|
Supplement cash flow
disclosure:
|
|
|
|
|
|
|
Interest
paid
|
$
|
-
|
|
$
|
-
|
|
Income tax paid
|
$
|
-
|
|
$
|
-
|
|
The accompanying notes are an integral part of these condensed
financial statements
8
CATACA RESOURCES, INC.
Notes to Condensed
Financial Statements (Unaudited)
As of June 30, 2016
1.
|
Condensed financial
statements
|
Basis of Presentation
The accompanying unaudited condensed financial statements are
presented in United States dollars and have been prepared using the accrual
method of accounting in accordance with generally accepted accounting principles
in the United States of America (US GAAP) for interim financial reporting and
the instructions for Form 10-Q pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, they do not include all
information and footnote disclosures necessary for a complete presentation of
the financial position, results of operations, cash flows, and stockholders
equity in conformity with US GAAP. In the opinion of management, all adjustments
considered necessary for a fair presentation of the results of operations and
financial position have been included and all such adjustments are of a normal
recurring nature.
The unaudited condensed balance sheet of the Company as of June
30, 2016, and the related balance sheet of the Company as of December 31, 2015,
which is derived from the Company's audited financial statements, the unaudited
condensed statement of operations and cash flows for the three months ended June
30, 2016 and 2015 and the condensed statement of stockholders equity for the
period of December 31, 2014 to June 30, 2016 are included in this document.
These unaudited condensed financial statements should be read in conjunction
with the audited financial statements and related notes included in the
Companys most recently filed Form 10K that was filed on March 28, 2016.
Operating results for the six months ended June 30, 2016 are
not necessarily indicative of the results that can be expected for the year
ending December 31, 2016.
Cataca Resources, Inc. (Company) was incorporated in the
State of Nevada as a for-profit company on December 11, 2012 and established a
fiscal year end of December 31. The Company is engaged in the acquisition,
exploration and development of natural resource properties. The Company has no
revenues and limited operating history.
The Company is in the process of evaluating its property and
has not yet determined whether the property contain reserves that are
economically recoverable. The success of the Company and the recoverability of
the amount shown for mineral property are dependent upon the existence of
economically recoverable reserves, the ability of the Company to obtain the
necessary financing to complete exploration and development of the reserves, and
upon future profitable production or proceeds from the disposition of the
property.
Use of Estimates and Assumptions
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make certain estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting periods presented. The Company is
required to make judgments and estimates about the effect of matters that are
inherently uncertain. The Company regularly evaluates estimates and assumptions
related to the useful life and recoverability of long-lived assets, deferred
income tax asset valuations and loss contingences. The Company bases its
estimates and assumptions on current facts, historical experience and various
other factors that it believes to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying value of
assets and liabilities and the accrual of costs and expenses that are not
readily apparent from other sources. Although, we believe our judgments and
estimates are appropriate, actual future results may be different; if different
assumptions or conditions were to prevail, the results could be materially
different from our reported results.
9
CATACA RESOURCES, INC.
Notes to Condensed
Financial Statements (Unaudited)
As of June 30, 2016
2.
|
Nature of operations
(continued)
|
Mineral Properties
Mineral property acquisition costs are capitalized in
accordance with Codification topic 930 Extractive Activities - Mining. Mineral
property exploration costs are expensed as incurred. When it has been determined
that a mineral property can be economically developed as a result of
establishing proven and probable reserves, the costs incurred to develop such
property are capitalized. To date the Company has not established any reserves
on its mineral property.
Recent Accounting Pronouncements
The Companys management has evaluated all the recently issued,
but not yet effective, accounting standards that have been issued or proposed by
the FASB or other standards-setting bodies through the filing date of these
financial statements and does not believe the future adoption of any such
pronouncements will have a material effect on the Companys financial position
and results of operations or cash flows.
On December 17, 2012, the Company entered into Mineral Rights
Agreement with Benefacio Minerals LLC to purchase a 100% interest in a 9 unit
claim block (the Lebak Gold Claim), containing approximately 91.5 hectares,
located in the province of Sultan Kudarat, Philippines, for the sum of $5,000
(the Assignment). The Assignment was filed with the Mineral Resources
Department of the Ministry of Energy and Mineral Resources of the Government of
the Republic of the Philippines on December 20, 2012. On December 21, 2012, the
Republic of the Philippines, Department of Environment and Natural Resources
(DENR) Mines and Geosciences granted the Company an annual license and
permit for mining and exploration of its Lebak Gold Claim (the License and
Permit). On December 17, 2013, the Company paid DENR $1,093 to renew its
License and Permit and was granted an annual extension to December 17, 2014. The
Company will be required to renew its License and Permit with the DENR prior to
commencing work the Lebak Gold Claim.
A two phased exploration program to further delineate the
mineralized system currently recognized on Lebak Gold Claim is recommended and
the proposed budget for the recommended work in PHP 810,000, equivalent to
$18,200 approximately.
4.
|
Related Party Obligation
Payable
|
Due to related party at June 30, 2016 and December 31, 2015
consisted of the following:
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2015
|
|
|
2015
|
|
|
|
|
|
|
|
|
Balance at beginning of the
period
|
$
|
105,000
|
|
$
|
40,000
|
|
Funds advanced
|
|
20,000
|
|
|
65,000
|
|
Repayments
|
|
-
|
|
|
-
|
|
Balance at end of the period
|
$
|
125,000
|
|
$
|
105,000
|
|
On December 1, 2013, March 31, July 18, and November 21, 2014,
January 29, April 13, April 24, May 8, June 5, July 30, December 8, 2015, and
March 14, 2016 Mr. Edward Barrios, the Companys President, CEO, and a Director,
advanced the Company $8,000, $10,000, $18,000 $4,000, $10,000, $4,000, $12,000,
$8,000, $15,000, $8,000, $8,000, and $20,000 as an unsecured obligation,
respectively. The aggregate obligation bears no interest, is due on demand and
is not evidenced by any written agreement.
10
CATACA RESOURCES, INC.
Condensed Notes to
Financial Statements (Unaudited)
As of June 30, 2016
These financial statements have been prepared on a going
concern basis which assumes the Company will be able to realize its assets and
discharge its liabilities in the normal course of business for the foreseeable
future. Realization values may be substantially different from carrying values
as shown and these financial statements do not give effect to adjustments that
would be necessary to the carrying values and classification of assets and
liabilities should the Company be unable to continue as a going concern. At June
30, 2016, the Company had not yet achieved profitable operations, had
accumulated losses of $145,401 since its inception and expects to incur further
losses in the development of its business, all of which raises substantial doubt
about the Companys ability to continue as a going concern. The ability to
continue as a going concern is dependent upon the Companys ability to generate
future profitable operations and/or to obtain the necessary financing to meet
its obligations and repay its liabilities arising from normal business
operations when they come due.
The Company expects to continue to incur substantial losses as
it executes its business plan and does not expect to attain profitability in the
near future. Since its inception, the Company has funded operations through the
issuance of shares to its sole director and two officers and from a related
party borrowing from its sole director and officer. The Companys operating
expenditure plan for the current fiscal year ending December 31, 2016 will
require cash of approximately $80,000. Management intends to finance operating
costs over the next twelve months with existing cash on hand, from the issuance
of common shares, and additional related party borrowings from its sole
director. The Company's future operations are dependent upon external funding
and its ability to execute its business plan, realize sales and control
expenses. Management believes that sufficient funding will be available from
additional borrowings and private placements to meet its business objectives
including anticipated cash needs for working capital, for a reasonable period of
time. However, there can be no assurance that the Company will be able to obtain
sufficient funds to continue the development of its business operation, or if
obtained, upon terms favorable to the Company.
The Companys capitalization is 75,000,000 shares of common
stock, with a par value of $0.001 per share, with 30,000,000 shares issued and
outstanding at June 30, 2016 and December 31, 2015.
As of June 30, 2016, the Company has not granted any stock
options or stock warrants and has not recorded any stock-based compensation.
11