Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2010, for Tamandare Explorations Inc. (Note: The request 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. As of August 6, 2010, there were 5,500,000 shares of common stock outstanding.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2010 | Six Months Ended June 30, 2010 | Inception to June 30, 2010 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Net Loss | $(2,402) | $(8,224) | $(61,181) |
| Cash Balance (End of Period) | $4,124 | $4,124 | $4,124 |
| Total Assets | $4,124 | $4,124 | $4,124 |
| Total Liabilities | $305 | $305 | $305 |
| Net Cash Used in Operating Activities | $(8,482) | $(8,482) | $(60,876) |
| Net Cash Provided by Financing Activities | $0 | $0 | $65,000 |
Profitability & Margins: The company has generated no revenue since inception and has no profit margins. It operates at a loss.
Liquidity & Debt: Current liabilities consist solely of $305 in accounts payable. The company has no debt obligations other than trade payables.
Material Changes vs. Prior Period
- Expense Reduction: Net loss for the three months ended June 30, 2010, was $(2,402), a significant decrease from $(13,908) in the same period in 2009. This reduction is primarily due to the cessation of mineral property expenses ($8,500 incurred in Q2 2009 vs. $0 in Q2 2010).
- Cash Position: Cash decreased from $12,606 at December 31, 2009, to $4,124 at June 30, 2010, reflecting ongoing operating burn without new financing in the current period.
- Asset Base: Total assets declined from $13,031 to $4,124 as deposits were utilized and cash was spent on operations.
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.
Operational Status: The company abandoned its previous exploration property (Que 1-4 in Nevada) following Phase 1 and fill-in sampling. Management is currently investigating other opportunities to utilize remaining capital, which may include procuring a new mineral property.
Plan of Operation: The plan for the next twelve months is to secure a new property or business opportunity. Management explicitly states there can be no assurances of securing a property or finding opportunities. Failure to do so will likely result in business failure and loss of shareholder investment.
Internal Controls: Management concluded that disclosure controls and procedures were not effective as of September 30, 2009. Mitigation is currently achieved through CEO review of financial statements prepared by a consultant, with plans to hire staff as finances allow.
Investor Verification Checklist
- Verify the company's ability to raise additional capital given the "Going Concern" warning and minimal cash balance ($4,124).
- Confirm the status of any new property acquisition or business opportunity, as the current plan relies entirely on securing one.
- Review the effectiveness of internal controls, noting the admitted material weakness and reliance on a single officer/consultant for financial reporting.
- Check for any subsequent equity issuances or debt financings post-June 30, 2010, to determine if the company has survived the liquidity crisis.
- Validate the shell company status and the specific terms of the 5,500,000 outstanding shares.