Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended September 30, 2008, for Tamandare Explorations Inc. (Note: The input metadata referenced "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 the Que 1-4 Mineral Claims in Nevada for potential silver and mineral exploration but has generated no revenues since its inception on November 16, 2007.
Key Financial Metrics
| Metric | Value (as of Sep 30, 2008) |
|---|---|
| Revenue | $0 (No revenues generated) |
| Net Loss (3 Months) | $(3,652) |
| Net Loss (Inception to Date) | $(18,943) |
| Cash and Cash Equivalents | $38,416 |
| Total Assets | $39,057 |
| Total Liabilities | $43,000 (Accounts Payable) |
| Stockholders' Equity (Deficit) | $(3,943) |
| Shares Outstanding | 3,000,000 (as of Sep 30, 2008) |
Material Changes and Operational Status
- Going Concern Uncertainty: The filing includes a "Going Concern" note stating that the company has never generated revenues and has accumulated losses of $18,943. Continuation is dependent on obtaining necessary equity financing.
- Liability Classification: The $43,000 in accounts payable represents funds received from an "all or nothing" stock offering. These funds were recorded as a liability because the offering was not yet completed as of the reporting date.
- Subsequent Event: On October 8, 2008, the company completed its "all or nothing" offering, receiving $50,000 for 2,500,000 shares. This event occurred after the balance sheet date.
- Exploration Status: No exploration work has been carried out on the mineral claims to date. The company plans to commence Phase 1 of a three-phase exploration program in the fourth quarter of 2008.
Guidance, Outlook, and Risks
- Plan of Operation: Management anticipates spending approximately $53,000 over the next 12 months. This includes $43,000 for a three-phase exploration program (Phase 1: $8,500; Phase 2: $9,500; Phase 3: $25,000) and $10,000 for professional fees and administrative costs.
- Liquidity Outlook: Management believes the current cash balance (including the completed offering proceeds) will sustain operations for the next twelve months.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of September 30, 2008. The company is mitigating this weakness through CEO review of financial statements prepared by a consultant.
- Risks: The company faces substantial doubt regarding its ability to continue as a going concern. Future phases of exploration are contingent upon favorable results from previous phases and the ability to raise additional funds.
Investor Verification Checklist
- Verify the final status and settlement of the "all or nothing" offering completed on October 8, 2008, and confirm the $50,000 proceeds are now reflected in equity rather than liabilities.
- Confirm the commencement date and initial results of Phase 1 of the exploration program, which was scheduled for Q4 2008.
- Monitor the company's cash burn rate against the projected $53,000 expenditure plan to assess if additional financing will be required before the end of the fiscal year.
- Review the status of the internal control weaknesses identified in Item 4 and any steps taken to implement formal accounting procedures.
- Validate the standing of the Que 1-4 Mineral Claims, which are noted to be in good standing until September 1, 2009.