Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2009, 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 silver and other mineral exploration. The company has generated no revenues since its inception on November 16, 2007.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2009 | Six Months Ended June 30, 2008 | Inception to June 30, 2009 |
|---|---|---|---|
| Revenue | $0 | $0 | $0 |
| Net Loss | $(24,771) | $(14,334) | $(46,862) |
| Cash Balance (End of Period) | $17,487 | $21,256 | $17,487 |
| Net Cash Used in Operating Activities | $(22,988) | $(13,787) | $(47,513) |
| Total Assets | $18,138 | $45,909 (Dec 31, 2008) | $18,138 |
| Total Liabilities | $0 | $3,000 (Dec 31, 2008) | $0 |
| Shares Outstanding | 5,500,000 | 3,000,000 | 5,500,000 |
Expense Breakdown (Six Months Ended June 30, 2009):
- Mineral Property Expenses: $17,000
- Professional Fees: $5,170
- General & Administrative Expenses: $2,601
Material Changes vs. Prior Period
- Increased Losses: The net loss for the six months ended June 30, 2009, increased to $24,771 from $14,334 in the same period in 2008. This was primarily driven by a $10,000 increase in mineral property expenses ($17,000 vs. $7,000) as the company advanced its exploration program.
- Cash Position: Cash on hand decreased by approximately $23,000 during the six-month period, dropping from $40,475 at December 31, 2008, to $17,487 at June 30, 2009.
- Liabilities: The company resolved a $3,000 stock subscription liability recorded at the end of 2008 (related to a duplicate payment returned in March 2009), resulting in zero current liabilities as of June 30, 2009.
- Share Count: The weighted average shares outstanding increased from 3,000,000 in the prior year period to 5,500,000 in the current period.
Guidance, Outlook, and Risks
Plan of Operation: Management plans to spend approximately $17,500 over the next 12 months. This includes $9,500 for Phase 2 of the exploration program (magnetometer and VLF electromagnetic surveys) and $8,000 for professional fees and administrative costs. Phase 2 is contingent on favorable results from Phase 1A, which was completed in April 2009.
Going Concern: The filing includes a substantial doubt regarding the company's ability to continue as a going concern. The company has no revenues, has accumulated losses of $46,862 since inception, and relies on continued financial support from shareholders and equity financing to continue operations.
Internal Controls: Management concluded that disclosure controls and procedures were not effective as of June 30, 2009. The company cites limited financial operations and reliance on a financial consultant as material weaknesses, though the CEO reviews statements to mitigate risks.
Risks: The mineral claims may not contain reserves; exploration funds may be lost; and there is no assurance that sufficient funds can be raised to proceed beyond the current exploration phase.
Investor Verification Checklist
- Identity Discrepancy: Verify the correct registrant name (Tamandare Explorations Inc.) against the metadata provided (Tonix Pharmaceuticals), as they do not match.
- Cash Runway: Confirm if the $17,487 cash balance is sufficient to cover the projected $17,500 expenditure for the next 12 months, given the lack of revenue.
- Exploration Results: Review the specific findings of the Phase 1A report received in May 2009 to assess the viability of proceeding to Phase 2.
- Financing Needs: Assess the likelihood of raising additional capital, as the company explicitly states it cannot assure investors it will be able to fund future phases.
- Control Weaknesses: Evaluate the impact of ineffective internal controls on the reliability of future financial reporting.