F-2
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Golden Eagle International, Inc.
(A Development Stage Company)
Consolidated Statement of Cash Flows
(Unaudited)
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Three Months Ended July 21, 1988
March 31, (Inception)
-------------------------------- To March
1999 1998 31, 1999
----------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (426,268) $ (567,959) $(11,607,558)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Stock issued for services 37,500 187,000 2,722,419
Depreciation expense 21,101 31,038 162,284
Stock issued for accrued interest 7,500 79,448 148,734
Stock issued for loan pledges and renewals -- -- 2,500,000
Loss on retirement of vehicle, equipment and other -- 2,758 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 (1,943) (403) (58,030)
Payables and accrued liabilities 171,134 123,769 1,480,466
------------
Net cash flows (used for) operating activities (190,976) (144,349) (3,771,658)
------------
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in property and equipment (7,377) -- (1,610,558)
Advance royalties (38,489) (1,475) (83,123)
Deposits 3,000 500 (10,775)
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)
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Net cash flows from (used for) investing activities (42,866) (975) (1,675,254)
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CASH FLOWS FROM FINANCING ACTIVITIES
Loans from related parties 98,862 95,204 1,864,067
Repayments of loans from related parties (12,580) -- (447,956)
Proceeds from other notes payable 25,000 53,619 606,098
Repayments of other notes payable (1,637) -- (70,783)
Proceeds from bank loan -- -- 1,000,000
Proceeds from convertible debentures -- -- 413,500
Common stock issued 128,500 -- 2,150,658
Stock issuance costs -- -- (63,064)
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Net cash flows from financing activities 238,145 148,823 5,452,520
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NET INCREASE (DECREASE) IN CASH 4,303 3,499 5,608
CASH - BEGINNING OF PERIOD 1,305 72,157 --
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CASH - END OF PERIOD $ 5,608 $ 75,656 $ 5,608
=====================================================================================================================
See accompanying notes.
F-3
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Golden Eagle International, Inc.
(A Development Stage Company)
Consolidated Statement of Stockholders' Equity (Deficit)
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Common Stock Additional
--------------------------- Paid-in Accumulated
Shares Amount Capital Deficit Total
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Inception July 21, 1988 -- $ -- $ -- $ -- $ --
Issued June 1, 1989 for cash
($.00006 per share) 1,666,665 167 (67) -- 100
Issued in 1990 for cash
($.003 to $.03 per share) 666,665 67 10,033 -- 10,100
50,000 to 1 stock split -- -- 4,900 -- 4,900
Issued in 1991 for cash
($.30074 per share from
stock offering) 268,335 27 59,253 -- 59,280
November 1, 1993, acquisition
of subsidiary -- -- 2,600 (5,300) (2,700)
Fair value of officer salary -- -- 20,000 -- 20,000
November 7, 1994, convert debt
to equity ($.003 per share) 2,640,830 264 7,659 -- 7,923
Issued in 1994 for note receivable
from affiliate ($.00125 per share) 20,000,000 2,000 23,000 -- 25,000
Issued in 1994 for legal services
($.00125 per share) 375,000 37 432 -- 469
Issued for cash in 1995
($.01 to $.282) less $41,644
issuance cost 10,469,750 1,047 244,002 -- 245,049
Issued for services in 1995
($.07 per share) 2,337,333 234 171,749 -- 171,983
Convert notes payable in 1995
($.15625 per share) 800,000 80 124,920 -- 125,000
Issued for cash in 1996
($.05 to $.25 per share) 2,250,650 222 401,808 -- 402,030
Issued for services in 1996
($.07 to $.30 per share) 5,448,985 545 1,230,297 -- 1,230,842
Issued for cash in 1997
($.10 per share) 10,126,350 1,013 1,011,622 -- 1,012,635
Issued in 1997 for loan guarantees
and renewals ($.10 per share) 25,000,000 2,500 2,497,500 -- 2,500,000
Issued in 1997 for services
($.03 to $.17 per share) 9,276,398 928 815,072 -- 816,000
Issued in 1997 for equipment
($.10 per share) 2,993,161 299 299,017 -- 299,316
Convert debenture and note in 1997
($.09 and $.26 per share) 689,060 69 104,347 -- 104,416
Issued in 1997 for vehicle
($.10 per share) 350,000 35 34,965 -- 35,000
Issued for cash in 1998
($.10 per share) 1,200,000 120 119,880 -- 120,000
Issued in 1998 for services
($.10 to $.16 per share) 3,704,172 370 462,630 -- 463,000
Conversion of debentures in 1997
($.03 to $.07 per share) 8,396,268 840 434,122 -- 434,962
Issued in 1998 for interest
($.13 per share) 558,333 56 72,444 -- 72,500
Other (70) -- 2,625 -- 2,625
Net loss for the periods -- -- -- (11,181,290) (11,181,290
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Balance at December 31, 1998 109,217,885 10,920 8,154,810 (11,186,590) (3,020,860)
Issued for cash ($.10 per share) 1,285,000 129 128,371 -- 128,500
Issued for services ($.10 per share 375,000 38 37,462 -- 37,500
Issued for interest ($.10 per share) 75,000 8 7,492 -- 7,500
Net loss (unaudited) -- -- -- (426,268) (426,268)
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Balance at March 31, 1999 (Unaudited) 110,952,885 $ 11,095 $ 8,328,135 $(11,612,858) $ (3,273,628)
===================================================================================================================================
See accompanyint notes.
F-4
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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, 1998.
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, 1999, are not
necessarily indicative of the results for the remainder of 1999.
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 - Arrangements to Issue Stock and Loan Secured by Stock
In the first quarter of 1999, the Company agreed in principle to issue a total
of 1.5 million shares of common stock to two financial advisors as compensation
for identification of prospective investors and financial public relations in
1999. The shares are being accrued for as being issued ratably during the year.
On February 17, 1999, the Company borrowed $25,000 from an individual pursuant
to a two-percent promissory note that is secured by 500,000 shares of unissued,
restricted common stock. As additional compensation, the lender also received
75,000 shares of restricted common stock. Pursuant to the loan agreement, the
Company opted to extend the due date of the loan from May 3, 1999 to May 17,
1999, for 75,000 additional shares of common stock, which were issued on May 5,
1999. The obligation is also personally guaranteed by the Company's president.
F-5
TYPE: EX-27
SEQUENCE: 2
DESCRIPTION: FINANCIAL DATA SCHEDULE
ARTICLE: 5
PERIOD TYPE: 3-MOS
FISCAL YEAR END: DEC-31-1999
PERIOD END: MAR-31-1999
CASH: 5,608
SECURITIES: 0
RECEIVABLES: 0
ALLOWANCES: 0
INVENTORY: 0
CURRENT ASSETS: 63,638
PP&E: 1,027,384
DEPRECIATION: (168,881)
TOTAL ASSETS: 1,014,539
CURRENT LIABILITIES: 4,288,167
BONDS: 0
PREFERRED MANDATORY: 0
PREFERRED: 0
COMMON: 11,095
OTHER SE: (3,284,723)
TOTAL LIABILITY AND EQUITY: 1,014,539
SALES: 5,077
TOTAL REVENUES: 5,077
CGS: 0
TOTAL COSTS: 352,811
OTHER EXPENSES: 78,534
LOSS PROVISION: 0
INTEREST EXPENSE: 76,934
INCOME PRETAX: (426,268)
INCOME TAX: 0
INCOME CONTINUING: (426,268)
DISCONTINUED: 0
EXTRAORDINARY: 0
CHANGES: 0
NET INCOME: (426,268)
EPS PRIMARY: (.004)
EPS DILUTED: (.004)
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