Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2008, for Tamandare Explorations Inc. (Note: The request metadata listed "Tonix Pharmaceuticals," but the filing text explicitly identifies the registrant as Tamandare Explorations Inc.). The company is an exploration-stage entity incorporated in Nevada with principal offices in Zurich, Switzerland. It holds one mineral property, the Que 1-4 Mineral Claims in Nevada, intended for silver and other mineral exploration. The company has no revenues and is classified as a shell company and a smaller reporting company.
Key Financial Metrics
| Metric | Value |
|---|---|
| Cash and Cash Equivalents (March 31, 2008) | $4,999 |
| Total Assets | $4,999 |
| Total Liabilities | $0 |
| Net Loss (Three Months Ended March 31, 2008) | ($9,045) |
| Net Loss (Inception through March 31, 2008) | ($10,001) |
| Net Cash Used in Operating Activities (Q1 2008) | ($9,045) |
| Net Cash Provided by Financing Activities (Inception to Date) | $15,000 |
| Shares Outstanding | 3,000,000 |
Material Changes and Operational Status
The company was incorporated on November 16, 2007; therefore, there are no comparative figures for the prior year. During the quarter, the company incurred $9,045 in operating expenses, primarily consisting of mineral property expenses ($7,000), professional fees ($2,000), and general administrative costs ($45). No exploration work has been conducted on the claims to date. The company raised $15,000 from inception through the sale of 3,000,000 shares to a director at $0.005 per share.
Outlook, Risks, and Management Commentary
- Going Concern: Management states that the company has never generated revenue and is unlikely to do so in the immediate future. The continuation of the company is dependent on obtaining necessary equity financing. These factors raise substantial doubt about the company's ability to continue as a going concern.
- Capital Needs: The company plans to raise approximately $50,000 via a registered offering to fund a three-phase exploration program and administrative costs totaling an estimated $55,000 over the next 12 months.
- Exploration Plan:
- Phase 1: Detailed prospecting and soil geochemistry ($8,500), planned for Summer 2008.
- Phase 2: Geophysical surveys ($9,500), contingent on Phase 1 results, planned for Fall 2008.
- Phase 3: Induced polarization and trenching ($25,000), contingent on Phase 2 results, planned for Spring 2009.
- Subsequent Event: Following the reporting period, 4,000,000 shares were authorized for issuance via an SB-2 offering at $0.015 per share.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of March 31, 2008.
Investor Verification Checklist
- Verify the status of the Form S-1 registration statement (file number 333-150419) and whether the planned $50,000 capital raise has been completed.
- Confirm the current cash balance, as the reported $4,999 is insufficient to fund the proposed $55,000 operational plan without new financing.
- Review the "Going Concern" note in the financial statements to understand the risk of liquidation if equity financing fails.
- Check for any updates on the effectiveness of internal controls and disclosure procedures since the filing date.
- Validate the standing of the Que 1-4 Mineral Claims, which were noted to be in good standing only until September 1, 2008.