Business Context and Reporting Period
This 10-Q filing covers the quarterly period ended September 30, 2009, 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 is classified as a shell company and a smaller reporting company. As of November 5, 2009, there were 5,500,000 shares of common stock outstanding.
Key Financial Metrics
| Metric | Value (Sep 30, 2009) | Value (Dec 31, 2008) |
|---|---|---|
| Cash and Cash Equivalents | $14,874 | $40,475 |
| Total Assets | $15,525 | $45,909 |
| Total Liabilities | $0 | $3,000 |
| Stockholders' Equity | $15,525 | $42,909 |
| Accumulated Deficit | ($49,475) | ($22,091) |
Revenue: $0 (No revenues generated since inception).
Net Loss: $2,613 for the three months ended September 30, 2009; $27,384 for the nine months ended September 30, 2009.
Cash Flow: Net cash used in operating activities was $25,601 for the nine months ended September 30, 2009. There was no cash provided by financing activities during this period.
Material Changes vs. Prior Period
- Cash Position: Cash decreased by approximately $25,601 (63%) from $40,475 at year-end 2008 to $14,874 at September 30, 2009, driven by operating losses.
- Liabilities: Total liabilities dropped to $0 from $3,000. The $3,000 in stock subscriptions received in 2008 was a duplicate payment that was returned to the investor by March 31, 2009.
- Exploration Activity: The company abandoned its "Que 1-4" mineral property in Nevada following Phase 1 and fill-in sampling. Consequently, mineral property expenses for the three months ended September 30, 2009, were $0, compared to $40 in the same period in 2008.
- Operating Expenses: General and administrative expenses decreased to $1,313 for the quarter from $2,412 in the prior year quarter. Professional fees increased slightly to $1,300 from $1,200.
Outlook, Risks, and Management Commentary
Going Concern: The filing includes a substantial doubt regarding the company's ability to continue as a going concern. The company has never generated revenue and relies on continued financial support from shareholders and equity financing to continue operations.
Plan of Operation: Management plans to secure a new mineral property for exploration or identify other business opportunities over the next twelve months. There are no assurances that a new property will be secured or that the business will succeed.
Liquidity: Management believes the current cash balance of $14,874 is sufficient to sustain operations for the next twelve months.
Internal Controls: Management concluded that disclosure controls and procedures were not effective as of September 30, 2009. This is attributed to the company's limited size and reliance on a financial consultant. Mitigation efforts include CEO review of financial statements.
Risks: If the company fails to secure a new property or business opportunity, shareholders may lose their entire investment.
Investor Verification Checklist
- Company Identity: Verify that the filing pertains to Tamandare Explorations Inc., not Tonix Pharmaceuticals, as indicated in the metadata request.
- Cash Runway: Confirm if the $14,874 cash balance is sufficient to fund the search for a new property without immediate dilution.
- Going Concern Status: Review the auditor's opinion and the company's ability to raise capital given the accumulated deficit of $49,475.
- Internal Controls: Assess the risk associated with ineffective disclosure controls and the reliance on a single financial consultant.
- Asset Abandonment: Understand the implications of abandoning the Nevada property and the lack of current revenue-generating assets.