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Golden Eagle International, Inc.(A Development Stage Company)
Consolidated Statement of Cash Flows(Unaudited)
--------------------------------------------------------------------------------------------------------------
July 21, 1988
Three Months Ended (Inception)
March 31, To March
1998 1997 31, 1998
---- ---- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (567,959) $ (115,987) $(9,676,224)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Stock issued for services 187,000 -- 2,408,919
Stock issued for in lieu of interest 79,448 16,659 106,719
Stock issued for loan pledges and renewals -- -- 2,500,000
Depreciation expense 31,038 2,085 90,164
Loss on retirement of equipment and other 2,758 4,084 8,235
Write-down of mining prospect -- -- 873,462
Write off advances to Mineral Mountain Mining Co. -- -- 78,000
Write off loan to investment advisor -- -- 15,000
Fair value of officer salary expensed -- -- 20,000
Loss (gain) from investments -- -- (114,670)
Changes in operating assets and liabilities:
Prepaid expense and other costs (403) (6,254) (6,061)
Income tax refund receivable -- -- (8,946)
Payables and accrued liabilities 123,769 (175,669) 1,120,790
----------- ----------- -----------
Net cash flows (used for) operating activities (144,349) (275,082) (2,584,612)
----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in property and equipment -- (260,043) (1,602,432)
Advance royalties (1,475) (12,324) (73,389)
Deposits 500 -- (39,775)
Proceeds from investments sales -- -- 184,380
Advances to Mineral Mountain Mining Co. -- -- (78,000)
Loan to investment advisor -- -- (15,000)
Purchase of investment securities -- -- (59,478)
Purchase of subsidiary (net of cash acquired) -- -- (2,700)
----------- ----------- -----------
Net cash flows from (used for) investing activities (975) (272,367) (1,686,394)
----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank loan -- 240,000 1,000,000
Loans from related parties 95,204 60,000 1,526,413
Repayments of loans from related parties -- (90,564) (431,376)
Proceeds from other notes payable 53,619 -- 193,177
Repayments of other notes payable -- (80,360) (69,146)
Proceeds from convertible debentures -- -- 288,500
Common stock issued -- 711,470 1,902,158
Stock issuance costs -- -- (63,064)
----------- ----------- -----------
Net cash flows from financing activities 148,823 840,546 4,346,662
----------- ----------- -----------
NET INCREASE (DECREASE) IN CASH 3,499 293,097 75,656
CASH - BEGINNING OF PERIOD 72,157 11,741 --
----------- ----------- -----------
CASH - END OF PERIOD $ 75,656 $ 304,838 $ 75,656
=========== =========== ===========
F-3See accompanying notes.
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Golden Eagle International, Inc.(A Development Stage Company)
Consolidated Statement of Stockholders' Equity (Deficit)
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Common Additional
Common Stock Stock Paid-in
Shares Amount Issuable Capital
------ ------ -------- -------
Inception July 21, 1988 -- $ -- $ -- $ --
Issuance of common stock:
June 1, 1989 for cash at $.00006 per share 1,666,665 167 -- (67)
June 30, 1990 for cash at $.03 per share 300,000 30 -- 8,970
July 3, 1990 for cash at $.003 per share 366,665 37 -- 1,063
50,000 to 1 stock split -- -- -- 4,900
January and March 1991 for cash at
$.30074 per share from stock offering 268,335 27 -- 59,253
November 1, 1993 - deficit of acquired subsidiary -- -- -- --
Acquisition of subsidiary -- -- -- 2,600
Fair value of officer salary -- -- -- 20,000
November 7, 1994, convert debt to equity
at $.003 per share 2,640,830 264 -- 7,659
November 8, 1994, $.00125 per share:
Note receivable from affiliate 20,000,000 2,000 -- 23,000
Legal services 375,000 37 -- 432
Other (70) -- -- 2,625
Issued for cash in June and August 1995 ($.01 to $.05
per share), less $41,644 in stock issuance costs 10,052,250 1,005 -- 164,044
Issued for services in 1995 ($.07 per share) 2,009,000 201 -- 148,799
Convert notes payable in 1995 ($.15625 per share) 800,000 80 -- 124,920
Payment of note by affiliate in 1995 -- -- -- --
Issuable for cash in 1995 ($.125 to $.282 per share),
417,500 shares -- -- 80,000 --
Issuable in 1995 for services and additional consideration
for loan ($.07 per share), 328,333 shares -- -- 22,983 --
Collection of receivable January 9, 1996 -- -- -- --
Shares previously subscribed issued in 1996 568,333 57 (52,983) 52,926
Issued for cash in 1996 ($.05 to $.25 per share) 21,150 2 -- 5,528
Issuable for cash in 1996 ($.10 to $.20 per share),
2,207,000 shares -- -- 396,500 --
Issued for services in 1996 ($.07 to $.30 per share) 5,448,985 545 -- 1,230,297
Shares previously subscribed in 1996 issued in 1997 2,407,000 238 (446,500) 446,262
Issued for cash in 1997 ($.10 per share) 10,126,350 1,013 -- 1,011,622
Issued to related parties for loan guarantees and
renewals in 1997 ($.10 per share) 25,000,000 2,500 -- 2,497,500
Issued for services in 1997 ($.03 to $.17 per share) 9,276,398 928 -- 815,072
Issued for equipment in 1997 ($.10 per share) 2,993,161 299 -- 299,017
Issued for conversion of debentures and --
note payable in 1997 ($.09 and $.26 per share) 689,060 69 -- 104,347
Issued for vehicle in 1997 ($.10 per share) 350,000 35 -- 34,965
Net loss for the periods -- -- -- --
------------ ------------ ------------ ------------
Balance at December 31, 1997 95,359,112 9,534 -- 7,065,734
Unaudited:
Issued for services ($.0867 to $.175 per share) 1,356,598 136 -- 186,864
Issued for conversion of debentures ($.0467 per share) 5,687,219 569 -- 264,879
Issued in lieu of interest ($.0867 to $.1603 per share) 1,116,666 112 -- 72,388
Net loss for the period -- -- -- --
------------ ------------ ------------ ------------
Balance at March 31, 1998 103,519,595 $ 10,351 $ -- $ 7,589,865
============ ============ ============ ============
F-4
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Golden Eagle International, Inc.(A Development Stage Company)
Consolidated Statement of Stockholders' Equity (Deficit) (continued)
---------------------------------------------------------------------------------------------------------
Stockholder Accumulated
Receivable Deficit Total
---------- ------- -----
Inception July 21, 1988 $ -- $ -- $ --
Issuance of common stock:
June 1, 1989 for cash at $.00006 per share -- -- 100
June 30, 1990 for cash at $.03 per share -- -- 9,000
July 3, 1990 for cash at $.003 per share -- -- 1,100
50,000 to 1 stock split -- -- 4,900
January and March 1991 for cash at
$.30074 per share from stock offering -- -- 59,280
November 1, 1993 - deficit of acquired subsidiary -- (5,300) (5,300)
Acquisition of subsidiary -- -- 2,600
Fair value of officer salary -- -- 20,000
November 7, 1994, convert debt to equity
at $.003 per share -- -- 7,923
November 8, 1994, $.00125 per share:
Note receivable from affiliate (25,000) -- --
Legal services -- -- 469
Other -- -- 2,625
Issued for cash in June and August 1995 ($.01 to $.05
per share), less $41,644 in stock issuance costs -- -- 165,049
Issued for services in 1995 ($.07 per share) -- -- 149,000
Convert notes payable in 1995 ($.15625 per share) (20,000) -- 105,000
Payment of note by affiliate in 1995 25,000 -- 25,000
Issuable for cash in 1995 ($.125 to $.282 per share),
417,500 shares -- -- 80,000
Issuable I 1995 for services and additional consideration
for loan ($.07 per share), 328,333 shares -- -- 22,983
Collection of receivable January 9, 1996 20,000 -- 20,000
Shares previously subscribed issued in 1996 -- -- --
Issued for cash in 1996 ($.05 to $.25 per share) -- -- 5,530
Issuable for cash in 1996 ($.10 to $.20 per share),
2,207,000 shares -- -- 396,500
Issued for services in 1996 ($.07 to $.30 per share) -- -- 1,230,842
Shares previously subscribed in 1996 issued in 1997 -- -- --
Issued for cash in 1997 ($.10 per share) -- -- 1,012,635
Issued to related parties for loan guarantees and
renewals in 1997 ($.10 per share) -- -- 2,500,000
Issued for services in 1997 ($.03 to $.17 per share) -- -- 816,000
Issued for equipment in 1997 ($.10 per share) -- -- 299,316
Issued for conversion of debentures and
note payable in 1997 ($.09 and $.26 per share) -- -- 104,416
Issued for vehicle in 1997 ($.10 per share) -- -- 35,000
Net loss for the periods -- (9,108,265) (9,108,265)
------------ ------------ ------------
Balance at December 31, 1997 -- (9,113,565) (2,038,297)
Unaudited:
Issued for services ($.0867 to $.175 per share) -- -- 187,000
Issued for conversion of debentures ($.0467 per share) -- -- 265,448
Issued in lieu of interest ($.0867 to $.1603 per share) -- -- 72,500
Net loss for the period -- (567,959) (567,959)
------------ ------------ ------------
Balance at March 31, 1998 $ -- $ (9,681,524) $ (2,081,308)
============ ============ ============
F-5See accompanying notes.
--------------------------------------------------------------------------------
Golden Eagle International, Inc.(A Development Stage Company)
Notes to Condensed Consolidated Financial Statements(Unaudited)
--------------------------------------------------------------------------------
Note A - General
Golden Eagle International, Inc. (a development stage company, the "Company,")
was incorporated in Colorado on July 21, 1988. The Company is to engage in the
business of acquiring, developing, and operating gold, silver and other precious
mineral properties. Activities of the Company since November 1994 have been
primarily devoted to organizational matters and identification of precious
mineral properties considered for acquisition. Presently, substantially all of
the Company's operations and business interests are focused on a prospect in the
Tipuani River area of the Republic of Bolivia.
The accompanying unaudited condensed financial statements have been prepared in
accordance with the instructions to Form 10-QSB and do not include all of the
information and notes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all material
adjustments, consisting of only normal recurring adjustments considered
necessary for a fair presentation, have been included. These statements should
be read in conjunction with the financial statements and notes thereto included
in the Company's Form 10-KSB for the year ended December 31, 1997.
The financial statements include the accounts of Golden Eagle International,
Inc. and its subsidiaries Golden Eagle Bolivia Mining, S.A. and Eagle Mining of
Bolivia, Ltd. All intercompany transactions and balances have been eliminated.
The results of operations for the three months ended March 31, 1998, are not
necessarily indicative of the results for the remainder of 1998.
Note B - Earnings (Loss) Per Share
Basic earnings (loss) per share of common stock are computed using the weighted
average number of shares outstanding during each period plus common equivalent
shares (in periods in which they have a dilutive effect).
Note C - Loans from Consulting Firm
Through March 31, 1998, the Company borrowed a total of $53,619 on an unsecured
basis from a Bolivian consulting engineering firm at 15% per annum with
repayment due December 31, 1998.Note D - Related Party Transactions
During the three months ended March 31, 1998, relatives of an officer loaned the
Company a total of $95,204, with interest at 12%.
F-6 |
