Filing summary
Entity and period: The supplied filing is Oroplata Resources, Inc.’s unaudited Form 10-Q for the quarter ended June 30, 2015 (its fiscal third quarter), not a filing for American Battery Technology Co. This entity mismatch should be resolved before relying on the filing.
Business context
Oroplata is a start-up mineral exploration company with a wholly owned Dominican Republic subsidiary. It reported no revenue and had not explored its Mogollon claim by June 30, 2015. The company said it expected to begin exploration before year-end 2015, subject to funding. It had lost its rights to the Leomary claim in September 2014.
Financial performance and position
| Metric | Three months ended June 30, 2015 | Nine months ended June 30, 2015 | Comparable 2014 period |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Total expenses | $6,160 | $33,413 | $6,168; $37,206 |
| Net loss | $6,160 | $33,413 | $6,168; $37,206 |
For the nine months, exploration costs were $10,700 versus $5,824 in 2014, while general and administrative expenses were $22,713 versus $31,382. No meaningful revenue margin can be calculated.
- Liquidity: Cash was $13,353 at June 30, 2015, down from $22,248 at September 30, 2014. Current liabilities were $99,498, producing negative working capital of $86,145. Total assets were $13,353; stockholders’ deficit was $86,145.
- Cash flow: Nine-month operating cash use was $29,160, compared with $32,288 in 2014. Related-party advances provided $20,265, versus $35,515. Cash decreased $8,895, compared with a $3,227 increase in 2014.
- Obligations: Amounts due to related parties were $81,276, non-interest-bearing and payable on demand. Accounts payable were $18,222. The filing states there were no debt securities outstanding.
- Capitalization: 40,000,000 common shares were outstanding; the sole officer and director was reported to own 62.5%.
Changes, outlook, and risks
- Nine-month loss improved by $3,793 year over year, while exploration spending increased. The company continued to have no revenue or operating cash generation.
- Management estimated $45,362 in cash needs for the next 12 months, including $18,222 in accounts payable; after available cash, the stated funding shortfall was $32,009. The cost of a Mogollon exploration program was unknown.
- The filing identifies substantial doubt about the company’s ability to continue as a going concern. Continued operations depend on profitable operations or obtaining external financing. Management discussed possible related-party advances, personally guaranteed borrowing, or a private placement, but said none of these options had been considered by the officer at that time.
- Key risks include inability to raise funds or establish mineral reserves, exploration and permitting uncertainty, competition for capital and resources, Dominican peso currency fluctuations, and the absence of an established trading market for the shares.
- Disclosure controls and internal control over financial reporting were judged ineffective as of June 30, 2015. Cited weaknesses included inadequate entity-level controls, period-end reporting issues and insufficient personnel for ongoing monitoring.
- The filing reports no legal proceedings, off-balance-sheet arrangements, or subsequent events requiring disclosure. It provides no numerical production or revenue guidance.
Important facts for investors to verify
- Confirm the issuer: the request names American Battery Technology Co., but the filing identifies Oroplata Resources, Inc.
- Verify the Mogollon claim’s title, status, acquisition terms, and the company’s ability to fund and obtain approvals for exploration.
- Check the related-party advance balance, repayment terms, and whether further financing was obtained after the reporting date.
- Assess the going-concern funding shortfall and the status of remediation of the disclosed control weaknesses.
- Confirm current share ownership, outstanding shares, and trading-market status; the filing says no established market existed.