Form 10QSB Spire Technologies Inc.

10QSB - Optional form for quarterly and transition reports of small business issuers

Published: 2006-05-15 16:50:28
Submitted: 2006-05-15
Period Ending In: 2006-03-31
dmi10qsb03312006.htm QUARTERLY REPORT FOR DRAVCO MINING INC.


> ENT> 10QSB 1 dmi10qsb03312006.htm QUARTERLY REPORT FOR DRAVCO MINING INC.

QUARTERLY REPORT FOR DRAVCO MINING INC.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-QSB

[X]

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the quarterly period ended

March 31, 2006

 

OR

[   ]

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the transition period from to

Commission file number: 000-50664

DRAVCO MINING INC.
(Exact name of small business issuer as specified in its charter)

Nevada

88-0474904

(State or other jurisdiction of incorporation or organization)


(IRS Employer Identification Number)

580 Hornby Street, Suite 210

Vancouver, British Columbia

Canada V6C 3B6

(Address of principal executive offices)

 

(604) 687-6991

(Issuer's telephone number)

Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities 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 past 90 days.
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: May 1, 2006: 9,000,000.

The Company is a Shell company:     Yes [   ]     No [ X ]

PART I


Item 1.     Financial Statements

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

 

 

==========================================================================================================

 



Dravco Mining Inc.
(An Exploration Stage Company)
Unaudited Interim Financial Statements
(Expressed in U.S. Dollars)

                   

Index

 
 

Balance Sheets

           

F-1

 
 

Statements of Operations

         

F-2

 
 

Statements of Cash Flows

         

F-3

 
 

Notes to the Financial Statements

       

F-4

 

 

 

 

 

 

 

 

 

 

 

- 2 -



Dravco Mining Inc.
(An Exploration Stage Company)
Balance Sheets
(Expressed in U.S. Dollars)
(unaudited interim financial statements)

 

March 31,

 

December 31,

 

2006

 

2005

 

$

 

$

Assets

     
       

Current Assets

     

Cash


159,279




166,653


Total Assets


159,279




166,653


 

 

 

 

       

Liabilities and Stockholders' Equity

     
       

Current Liabilities

     

Accounts payable

7,994

 

5,347

Accrued liabilities

350

 

7,717

Due to related party (Note 4(a))


43,127




43,127


Total Liabilities


51,471




56,191


 

 

 

 

Commitments and Contingencies (Note 1)

     
       

Stockholders' Equity

     
       

Common Stock

     

100,000,000 shares authorized, with a $0.00001 par value,

     

9,000,000 shares issued and outstanding

90

 

90

Donated Capital

1,200

 

1,200

Additional Paid-in Capital

199,960

 

199,960

Deficit Accumulated During the Exploration Stage


(93,442)




(90,788)


 

 

 

 

Total Stockholders' Equity


107,808




110,462


Total Liabilities and Stockholders' Equity


159,279




166,653


 

 

 

 


 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements
F-1

- 3 -



Dravco Mining Inc.
(An Exploration Stage Company)
Statements of Operations
(Expressed in U.S. Dollars)
(unaudited interim financial statements)

 

Three Months
Ended
March 31,
2006
$

Three Months
Ended
March 31,
2005
$

Accumulated
From
September 20, 2000 (Inception)
to March 31,
2006
$

       

Revenue


-


-


-


 

 

 

 

Expenses

     

Consulting fees

-

-

2,500

Mineral property costs

-

-

5,145

Office and administration (Note 4(b))

1,968

85

11,820

Professional fees

451

2,463

60,771

Transfer agent and filing fees

235

23

10,387

Travel


-


2,819


2,819


 

 

 

 

Total Expenses


2,654


5,390


93,442


 

 

 

 

Net Loss


(2,654)


(5,390)


(93,442)


 

 

 

 

Net Loss Per Share - Basic and Diluted


-


-




 

 

 

 

Weighted Average Number of Shares Outstanding


9,000,000


9,000,000




 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements
F-2

- 4 -



Dravco Mining Inc.
(An Exploration Stage Company)
Statements of Cash Flows
(Expressed in U.S. Dollars)
(unaudited interim financial statements)

 

Three Months
Ended
March 31,

Three Months
Ended
March 31,

 

2006

2005

 

$

$

Operating Activities

   

Net loss

(2,654)

(5,390)

Change in operating assets and liabilities

   

Accounts payable and accrued liabilities


(4,720)


5,191


 

 

 

Net Cash Used in Operating Activities


(7,374)


(199)


 

 

 

Investing Activities


-


-


 

 

 

Financing Activities


-


-


 

 

 

Decrease in Cash

(7,374)

(199)

Cash, Beginning of Period


166,653


185,560


 

 

 

Cash, End of Period


159,279


185,361


 

 

 

Supplemental Disclosures

   

Interest paid

-

-

Income taxes paid


-


-


 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these financial statements
F-3

- 5 -



Dravco Mining Inc.

(An Exploration State Company)

Notes to the Financial Statements

March 31, 2006

(Expressed in U.S. Dollars)

(unaudited interim financial statements)

 

1.

Nature and Continuance of Operations

 
 

The Company was incorporated in the State of Nevada on September 20, 2000 as Dundee Mining Inc. On October 2, 2002, the Company changed its name to Dravco Mining Inc. The Company is an Exploration Stage Company, as defined by Statement of Financial Accounting Standard (" SFAS" ) No. 7 " Accounting and Reporting by Development Stage Enterprises" . The Company' s business plan is to acquire, explore and develop mineral properties and ultimately seek out earnings by exploiting mineral claims. The Company has not determined whether the mining claims contain ore reserves that are economically recoverable.

 
 

These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to determine the existence of economically recoverable reserves in its resource properties, confirmation of the Company' s interests in the underlying properties, obtain necessary financing and then profitable operations. As at March 31, 2006, the Company has never generated any revenues and has accumulated losses of $93,442 since inception. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors raise substantial doubt regarding the Company' s ability to continue as a going concern.

 

2.

Summary of Significant Accounting Policies

 
 

a)

Basis of Presentation

 
   

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States and are expressed in U.S. Dollars. The Company' s fiscal year-end is December 31.

 
 

b)

Use of Estimates

 
   

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make 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 period. Actual results could differ from those estimates.

     
 

c)

Cash and Cash Equivalents

     
   

The Company considers all highly liquid instruments with maturity of three months or less at the time of issuance to be cash equivalents.

F-4

 

- 6 -


Dravco Mining Inc.
(An Exploration State Company)
Notes to the Financial Statements
March 31, 2006
(Expressed in U.S. Dollars)
(unaudited interim financial statements)

2.

Summary of Significant Accounting Policies (continued)

 
 

d)

Mineral Property Costs

 
   

The Company has been in the exploration stage since its inception on September 20, 2000 and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property exploration costs are expensed as incurred. Mineral property acquisition costs are initially capitalized when incurred using the guidance in EITF 04-02, " Whether Mineral Rights Are Tangible or Intangible Assets" . The Company assesses the carrying costs for impairment under SFAS 144, " Accounting for Impairment or Disposal of Long Lived Assets" at each fiscal quarter end. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs then incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.

 
 

e)

Financial Instruments

 
   

The fair values of cash, accounts payable, accrued liabilities and due to related party approximate their carrying values because of the short-term maturity of these instruments.

 
 

f)

Concentration of Credit Risk

 
   

Financial instruments that potentially subject the Company to credit risk consist principally of cash. Cash was deposited with a high quality credit institution.

 
 

g)

Foreign Currency Translation

 
   

The Company' s functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars and management has adopted SFAS No. 52 " Foreign Currency Translation" . Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

 

F-5

 

- 7 -


Dravco Mining Inc.
(An Exploration State Company)
Notes to the Financial Statements
March 31, 2006
(Expressed in U.S. Dollars)
(unaudited interim financial statements)

2.

Summary of Significant Accounting Policies (continued)

 
 

h)

Income Taxes

 
   

Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted SFAS No. 109 as of its inception. Pursuant to SFAS No. 109 the Company is required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.

 
 

i)

Stock-based Compensation

 
   

The Company records stock-based compensation in accordance with SFAS No. 123, " Accounting for Stock-Based Compensation" . All transactions in which goods or services are provided to the Company in exchange for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued. The Company does not currently have a stock option plan.

 
 

j)

Comprehensive Loss

 
   

SFAS No. 130, " Reporting Comprehensive Income," establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As at March 31, 2006 and 2005, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

 
 

k)

Basic and Diluted Net Income (Loss) Per Share

 
   

The Company computes net income (loss) per share in accordance with SFAS No. 128, "Earnings per Share". SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.

F-6

 

- 8 -


Dravco Mining Inc.
(An Exploration State Company)
Notes to the Financial Statements
March 31, 2006
(Expressed in U.S. Dollars)
(unaudited interim financial statements)

2.

Summary of Significant Accounting Policies (continued)

 
 

l)

Recent Accounting Pronouncements

 
   

In 2006, the Financial Accounting Standards Board (" FASB" ) issued SFAS No. 155 " Accounting for Certain Hybrid Financial Instruments" and SFAS No. 156 " Accounting for Servicing of Financial Assets" , but they will not have any relationship to the operations of the Company. Therefore a description and its impact for each on the Company' s operations and financial position have not been disclosed.

 
   

In May 2005, the FASB issued SFAS No. 154, " Accounting Changes and Error Corrections - A Replacement of APB Opinion No. 20 and SFAS No. 3" . SFAS 154 changes the requirements for the accounting for and reporting of a change in accounting principle and applies to all voluntary changes in accounting principle. It also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions. SFAS 154 requires retrospective application to prior periods' financial statements of changes in accounting principle, unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change. The provisions of SFAS No. 154 are effective for accounting changes and correction of errors made in fiscal years beginning after December 15, 2005. The adoption of this standard did not have a material effect on the Company' s results of operations or financial position.

 
   

In December 2004, the FASB issued SFAS No. 153, " Exchanges of Nonmonetary Assets - An Amendment of APB Opinion No. 29" . SFAS No. 153 is the result of a broader effort by the FASB to improve financial reporting by eliminating differences between GAAP in the United States and GAAP developed by the International Accounting Standards Board (IASB). As part of this effort, the FASB and the IASB identified opportunities to improve financial reporting by eliminating certain narrow differences between their existing accounting standards. SFAS No. 153 amends APB Opinion No. 29, " Accounting for Nonmonetary Transactions" , that was issued in 1973. The amendments made by SFAS No. 153 are based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the assets exchanged. Further, the amendments eliminate the narrow exception for nonmonetary exchanges of similar productive assets and replace it with a broader exception for exchanges of nonmonetary assets that do not have "commercial substance." Previously, APB Opinion No. 29 required that the accounting for an exchange of a productive asset for a similar productive asset or an equivalent interest in the same or similar productive asset should be based on the recorded amount of the asset relinquished. The provisions in SFAS No.153 are effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June 15, 2005. Early application is permitted and companies must apply the standard prospectively. The effect of adoption of this standard did not have a material impact on the Company' s results of operations and financial position.

F-7

 

- 9 -


Dravco Mining Inc.
(An Exploration State Company)
Notes to the Financial Statements
March 31, 2006
(Expressed in U.S. Dollars)
(unaudited interim financial statements)

3.

Mineral Properties

 
 

In July 2000, the Company, through its President and director, acquired 100% of the rights, title and interest in ten mining claims located in the Osoyoos Mining Division of the Province of British Columbia, Canada. The claims are registered in the name of the President of the Company, who is holding the claims in trust on behalf of the Company.

 
 

4.

Related Party Transactions/Balances

 
 

a)

The amount of $43,127 (December 31, 2005- $43,127) owing to the President of the Company is unsecured, non-interest bearing and due on demand.

 
 

b)

The President of the Company had provided office premises to the Company at no charge. Office premises are valued at $100 per month. During the year ended December 31, 2005, donated rent of $1,200 was recorded. Effective January 1, 2006, the Company leases space on a month-to-month basis at a cost of $100 per month from a non-related third party.

 

 

 

 

 

 

 

 

 

 

F-8

- 10 -



Item 2.     Management's Discussion and Analysis or Plan of Operations

This quarterly report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to "common shares" refer to the common shares in our capital stock.

As used in this quarter report the terms "we", "us", "our", the "Company" and "Dravco" means Dravco Mining Inc., unless otherwise indicated.

General

We were incorporated in the State of Nevada on September 20, 2000 as Dundee Mining Inc. On October 2, 2002 the Company changed its name to Dravco Mining Inc. To date, our only activities have been directed at raising our initial capital and developing our business plan.

We are a start-up, exploration stage corporation and have not yet generated or realized any revenues from our business operations.

Our auditors have issued a going concern opinion. Our auditors have a substantial doubt that the Company will be able to continue as a going concern. This is because we have not generated any revenues and no revenues are anticipated until we find economically recoverable mineral reserves and begin removing and selling minerals. Accordingly, we will need to raise cash from sources other than the sale of minerals found on the property. Our only other source for cash at this time is investments by others in the Company. On March 10, 2004 we completed our public offering by raising $200,000. We sold 4,000,000 shares of our common stock at an offering price of $0.05 per share.

We had cash resources of $159,279 as at March 31, 2006. We do not know how long the money will last; however, we believe that it will last twelve months. This is dependent on the amount of exploration we conduct and the cost thereof. We will not know that information until we begin exploring our property. If we need additional cash and cannot raise it we will either have to suspend operations until we do raise the cash, or cease operations entirely. Other than described above, we have no other financing plans.

- 11 -


We will be conducting research in the form of exploration of our property. We are not going to buy or sell any plant or significant equipment during the next twelve months. We will not buy any equipment until we have located a body of ore and we have determined it is economical to extract the ore from the land.

Plan of Operations

Our proposed exploration program

We are prospecting for gold. Our target is mineralized material. Our success depends upon finding mineralized material. Mineralized material is a mineralized body that has been delineated by appropriate spaced drilling or underground sampling to support sufficient tonnage and average grade of metals to justify removal.

If we do not find mineralized material or we cannot remove mineralized material, either because we do not have the money to do it or because it is not economically feasible to do it, we may suspend or cease operations.

In addition, we may not have enough money to complete the exploration of the property. If it turns out that we have not raised enough money to complete our exploration program, we will try to raise additional funds from a second public offering, a private placement or loans. At the present time, we have not made any plans to raise additional money and there is no assurance that we would be able to raise additional money in the future. If we need additional money and cannot raise it, we may suspend or cease operations.

We must conduct exploration to determine what amount of minerals, if any, exist on the properties and if any minerals that are found can be economically extracted and profitably processed.

The property is undeveloped raw land. Our offering is concluded and we intend to start exploration operations. To our knowledge, the property has never been mined. The only event that has occurred is the staking of the property by Locke Goldsmith and a physical examination of the property. The cost of staking the claims was included in the $878 we paid to Mr. Goldsmith. In addition, to March 31, 2006, we have paid Mr. Goldsmith a total of $4,267 to maintain the claims in good standing. During the period from December 31, 2004 to December 31, 2005, we renewed our claims with the Ministry of Energy and Mines in British Columbia at a cost of $1,779.

We are proceeding with our exploration program in the following three phases:

Phase 1 begun with research of the available geological literature, personal interviews with geologists, mining engineers and others familiar with the prospect sites.

We intend to augment our initial work with geologic mapping, geophysical testing and geochemical testing of the claims. When available, existing workings, like trenches, prospect pits, shafts or tunnels will be examined. If an apparent mineralized zone is identified and narrowed down to a specific area by the studies, we will begin trenching the area.

Phase 1 will take about 3 months once undertaken and cost up to $20,000.

- 12 -


Phase 2 involves an initial examination of the underground characteristics of the vein structure that was identified by Phase 1 of exploration. Phase 2 is aimed at identifying any mineral deposits of potential economic importance. The methods employed are:

*

more extensive trenching

*

more advanced geophysical work

*

drift driving

Drift driving is the process of constructing a tunnel to take samples of minerals for testing. Later, the tunnel can be used for mining minerals. The geophysical work gives a general understanding of the location and extent of mineralization at depths that are unreachable by surface excavations and provides a target for more extensive trenching and core drilling. Trenching identifies the continuity and extent of mineralization, if any, below the surface. After a thorough analysis of the data collected in Phase 2, we will decide if the property warrants a Phase 3 study.

Phase 2 will take about 3 months and cost up to $40,000.

Phase 3 is aimed at precisely defining the depth, the width, the length, the tonnage and the value per ton of any mineral body. This is accomplished through extensive drift driving. Phase 3 will take about 6 months and cost up to $80,000.

We do not intend to interest other companies in the property if we find mineralized materials. We intend to try to develop the reserves ourselves.

If we are unable to complete a phase of exploration because we do not have enough money, we will cease operations until we raise additional funds. If we cannot or do not raise additional funds, we will cease operations. At this time we cannot provide a more detailed discussion of how our exploration program will work and what we expect our likelihood of success to be, due to the nature of mineral exploration in unexplored territories. We will not move onto a subsequent phase until the phase we are working on is completed.

We do not have any plan to take the Company from Phase 3 exploration to revenue generation until we have determined its economic feasibility.

We do not intend to hire additional employees at this time. All of the work on the property will be conducted by unaffiliated independent contractors that we will hire on an as-needed basis. The independent contractors will be responsible for surveying, geology, engineering, exploration, and excavation. The geologists will evaluate the information derived from the exploration and excavation and the engineers will advise us on the economic feasibility of removing the mineralized material.

We will be conducting research in the form of exploration of our property. We are not going to buy or sell any plant or significant equipment during the next twelve months. We will not buy any equipment until we have located a body of ore and we have determined it is economical to extract the ore from the land.

Due to our inability to commence exploration on our mining property we are considering other business opportunities although we have no agreements related to such opportunities at this time.

- 13 -


Limited Operating History; Need for Additional Capital

There is limited historical financial information about Dravco Mining Inc. upon which to base an evaluation of our performance. We are an exploration stage corporation and have not generated any 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 properties, and possible cost overruns due to price and cost increases in services.

To become profitable and competitive, we will have to conduct research and exploration of the properties before we start production of any minerals we may find. In the event that the funds we raised in our initial public offering is not sufficient, we have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholders.

Results of Operations

FROM INCEPTION ON SEPTEMBER 20, 2000 TO MARCH 31, 2006

We acquired the right to conduct exploration activity on 10 mineral claims in British Columbia. We completed our public offering on March 10, 2004. We have begun research of geological information. We renewed our claims with the Ministry of Energy and Mines in British Columbia and the claims are now valid until September 22, 2006. We had expected to begin core drilling and exploration within 90 days of completing our offering, weather permitting, but have been delayed due to various circumstances. Due to our numerous delays and uncertainty as to when we might be able to commence work, our geologist, Mr. Locke Goldsmith has taken on multiple other projects requiring him to be out of North America for much of his time. We will be unable to advance further with Phase 1 until Mr. Goldsmith has the time for us. Alternatively, we may need to seek out another geologist although we have made no plans to do so at this time.

Due to our inability to commence exploration on our mining property we are considering other business opportunities although we have no agreements related to such opportunities.

On September 23, 2005, Mr. Luis Goyzueta joined our Board of Directors and agreed to act as Chief Financial Officer. Mr. Goyzueta was to have provided assistance to us to either advance our mining project in British Columbia or to help us seek alternative opportunities.

Mr. Goyzueta resigned on December 2, 2005 to pursue other interests.

Since inception, we have used our common stock to raise money for the property acquisition, for corporate expenses and to repay outstanding indebtedness. Net cash provided by the sale of shares from inception on September 20, 2000 to March 31, 2006 was $200,050. In addition, a related party advanced a total of $43,127 to us, which must be repaid.

- 14 -


Liquidity and Capital Resources

As of the date of this report, we have yet to generate any revenues from our business operations. We issued 5,000,000 shares of common stock through a Section 4(2) offering in September 2000 to Rodney Lozinski, our sole officer and director at that time. This was accounted for as a cash shares purchase of $50. On March 10, 2004 we issued an additional 4,000,000 shares of common stock against proceeds of $200,000 pursuant to our public offering.

Since our inception, Mr. Lozinski, has advanced the total sum of $43,127. $30,000 was used for legal fees relating to organizational and start-up costs, $1,707 was used to pay Locke Goldsmith for the initial claims and subsequent maintenance work, $7,210 was for audit fees, $2,397 was used to pay filing fees and $1,813 was used for general administrative and operating capital. The loan does not bear interest and has not been repaid as of the date hereof. There are no documents reflecting the loan and they are not due on a specific date. Mr. Lozinski will accept repayment from us when money is available.

As of March 31, 2006 we had cash resources of $159,279. We had total liabilities of $51,471. This was comprised of the $43,127 loan from Mr. Lozinski, $8,344 for general administrative, legal and audit costs, for a working capital of $107,808.

Item 3.     Controls and Procedures

As required by Rule 13a-15 under the Exchange Act, as of the end of the period covered by this quarterly report, being March 31, 2006, we have carried out an evaluation of the effectiveness of the design and operation of our company's disclosure controls and procedures. This evaluation was carried out under the supervision and with the participation of our company's management, including our company's Chief Executive and Chief Financial Officer. Based upon that evaluation, our company's Chief Executive and Chief Financial Officer concluded that our company's disclosure controls and procedures are effective as at the end of the period covered by this report.

There have been no significant changes in our company's internal controls or in other factors, which could significantly affect internal controls subsequent to the date we carried out our evaluation.

Disclosure controls and procedures and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time period specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our President and Chief Financial Officer is appropriate, to allow timely decisions regarding required disclosure.

 

 

- 15 -


PART II - OTHER INFORMATION

Item 1.     Legal Proceedings

We know of no material, active or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

Use of Proceeds from Registered Securities

Our SB-2 Registration Statement - Post Effective Amendment was declared effective on September 17, 2003 (Commission file no. 333-54044). We offered up to a total of 4,000,000 shares of common stock on a self-underwritten basis, 2,000,000 minimum, 4,000,000 shares maximum at the offering price of $0.05 per share. On March 10, 2004, we completed our public offering by raising $200,000. We sold 4,000,000 shares of our common stock at an offering price of $0.05 per share. No direct or indirect payments were made to directors, officers, general partners of the issuer or their associates in connection with the offer.

Use of Proceeds - From September 17, 2003 (Effective Date of Registration Statement - Post Effective Amendment) to March 31, 2006:

We completed our public offering on March 10, 2004, from the $200,000 raised, we have incurred $5,145 in exploration costs, $23,771 in audit fees, $38,250.38 in legal fees; and $26,625.49 in general working capital, for a total of $93,791.87. This amount includes the $43,127 that was advanced by our President Rodney Lozinski for expenses relating to the organizational and start-up costs.

Item 3.     Defaults Upon Senior Securities

None.

Item 4.     Submission of Matters to a Vote of Security Holders

None.

Item 5.     Other Information

None.

 

 

 

- 16 -


Item 6.     Exhibits and Reports on Form 8-K

Exhibits

Exhibit 31.1 -     Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 - Principal Executive and Financial Officer

Exhibit 32.1 -     Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Principal Executive and Financial Officer

REPORTS ON FORM 8-K

None.

 

 

 

 

 

 

 

 

 

 

 

 

- 17 -


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on this 12th day of May 2006.

 

DRAVCO MINING INC.

 


BY:


RODNEY LOZINSKI
Rodney Lozinski
President, Principal Executive and Financial Officer, Treasurer, Principal Accounting Officer, Secretary and sole member of the Board of Directors

     

 

 

 

 

 

 

 

 

 

 

 

 

- 18 -


exh311.htm CERTIFICATION OF CEO & CFO


> ENT> EX-31.1 2 exh311.htm CERTIFICATION OF CEO & CFO

EXHIBIT 31.1

EXHIBIT 31.1

SECTION 302 CERTIFICATION

I, Rodney Lozinski, certify that:

1.

I have reviewed this quarterly report of Dravco Mining, Inc.,

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) for the registrant and have:

 
 

a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 
 

b)

Paragraph omitted in accordance with SEC transition rules contained in SEC Release No. 33-8238;

 
 

c)

evaluated the effectiveness of the registrant= s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 
 

d)

disclosed in this report any change in the registrant= s internal control over financial reporting that occurred during the registrant= s most recent fiscal quarter (the registrant= s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant= s internal control over financial reporting; and

 

5.

The registrant= s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function);

 

a)

all significant deficiencies and material weakness in the design of operation of

   

internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weakness in internal controls; and

 
 

b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date:

May 12, 2006

       
 
               

RODNEY LOZINSKI

               

Rodney Lozinski

               

Principal Executive and Financial Officer

 


exh321.htm CERTIFICATION OF CEO & CFO - SARBANES-OXLEY


> ENT> EX-32.1 3 exh321.htm CERTIFICATION OF CEO & CFO - SARBANES-OXLEY

EXHIBIT 32.1

 

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of DRAVCO MINING INC. (the "Company") on Form 10-QSB for the period ended March 31, 2006 as filed with the Securities and Exchange Commission on the date here of (the "Report"), I, Rodney Lozinski, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)     The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)     The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

RODNEY LOZINSKI
Principal Executive and Financial Officer

May 12, 2006

 

 

 

 

 

 

 


Additional Files
FileSequenceDescriptionTypeSize
0001002014-06-000338.txt   Complete submission text file   81612

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