Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended September 30, 2010, 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 Toronto, Canada. It is classified as a shell company and a smaller reporting company. Tamandare has no revenues and abandoned its previous mineral property in Nevada, currently seeking new exploration opportunities or business ventures.
Key Financial Metrics
| Metric | Three Months Ended Sep 30, 2010 | Nine Months Ended Sep 30, 2010 | As of Sep 30, 2010 |
|---|---|---|---|
| Revenue | $0 | $0 | N/A |
| Net Loss | $(3,685) | $(11,909) | N/A |
| Cash Balance | N/A | N/A | $4,079 |
| Total Assets | N/A | N/A | $4,079 |
| Total Liabilities | N/A | N/A | $3,946 |
| Accumulated Deficit | N/A | N/A | $(64,866) |
| Shares Outstanding | 5,500,000 | 5,500,000 | 5,500,000 |
Liquidity: The company reported a net cash used in operating activities of $8,527 for the nine months ended September 30, 2010. There were no cash flows from financing activities during this specific nine-month period.
Material Changes vs. Prior Period
- Expense Reduction: Operating expenses for the nine months ended September 30, 2010, were $11,909, a significant decrease from $27,384 in the same period in 2009. This reduction is primarily due to the absence of $17,000 in mineral property exploration costs incurred in 2009, as the company abandoned its previous property.
- Cash Position: Cash decreased from $12,606 at December 31, 2009, to $4,079 at September 30, 2010.
- Liabilities: Total liabilities increased from $988 to $3,946, driven by a $2,000 amount due to a related party (director) and an increase in accounts payable.
Outlook, Risks, and Management Commentary
Going Concern: The filing explicitly states that substantial doubt exists 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.
Plan of Operation: Management plans to secure a new mineral property for exploration or identify other business opportunities over the next 12 months. There are no assurances that such opportunities will be found or that the company will succeed.
Risks and Contingencies:
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of September 30, 2010, citing a material weakness mitigated only by the CEO's review of financial statements prepared by a consultant.
- Related Party Transactions: The company owes $2,000 to its sole officer/director, Mark Lawson, with no specific repayment terms. Additionally, the company pays the director $500/month for office space and services.
- Capital Requirements: If the company fails to secure a new property or business opportunity, shareholders may lose their entire investment.
Investor Verification Checklist
- Verify the discrepancy between the metadata company name ("Tonix Pharmaceuticals") and the actual filing registrant ("Tamandare Explorations Inc.").
- Confirm the status of the $2,000 related-party debt and the terms of the $500/month office lease with the director.
- Assess the validity of the "Going Concern" warning and the company's specific plan to raise capital given the low cash balance ($4,079).
- Review the effectiveness of internal controls, noting the admission of material weakness and reliance on a single individual for financial oversight.
- Investigate the status of the abandoned Nevada property and any current negotiations for new mineral rights.