We are a shell company with no active business
Form 10-Q/A for GOLD STANDARD MINING CORP.
14-Jul-2011
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis, which should be read in connection with our financial statements and accompanying footnotes, contains forward-looking statements that involve risks and uncertainties. Important factors that could cause actual results to differ materially from our expectations are set forth in Item 1A - "Risk Factors" in our Form 10-K for the year ended December 31, 2009 as well as those discussed elsewhere in this Form 10-Q. Those forward-looking statements may relate to, among other things, our plans and strategies.
Overview
We are a shell company with no active business. Our plan of operations is to acquire mining rights, including primarily gold mining rights, for a number of properties, to explore such properties for ore reserves, and to develop those properties where such development would appear to be commercially viable.
Our financial statements for the periods covered by this Form 10-Q have been restated. See Note 1 of Notes to Condensed Consolidated Financial Statements contained in Item 1 of this Report.
Results of Operations
We have had no revenues since inception.
We incurred operating expenses of $50,035 and $6,026,508 in the three months and nine months ended September 30, 2010, compared to $201,768 and $403,537 in the three months and nine months ended September 30, 2009. Operating expenses primarily relate to accounting and legal expenses associated with our reporting responsibilities under the Securities Exchange Act of 1934. In the three and nine months ended September 30, 2009, operating expenses included consulting fees related to our acquisition of Rosszoloto Co. Ltd., the Russian mining company. In addition, in the nine months ended September 30, 2010, our operating expenses included non-cash compensation expense of $6.0 million incurred in connection with the issuance of an aggregate of 60,015,000 shares of common stock to an executive officer and a number of consultants.
As a result, we incurred net losses equal to our operating expenses for these periods.
Financial Condition, Liquidity and Capital Resources
We have funded our operations principally through the issuance of stock for services, the issuance of stock for cash, and advances from Pantelis Zachos, an executive officer, director and a principal shareholder. In the first nine months of fiscal 2010, we received $13,606 of advances from Mr. Zachos. As of September 30, 2010, these advances totaled $184,692. These advances are non-interest bearing and due on demand.
Our common stock and paid-in capital increased due to the issuance of shares for cash and services during the year.
We will have minimal operating expenses pending the time we commence exploration and development activities on specific mining properties. These expenses will be principally legal, accounting and audit expenses in connection with our reporting obligations under the Securities Exchange Act of 1934. We anticipate funding these expenses through stock sales in private transactions or additional shareholder loans. We do not have a commitment from anyone to provide funds for our operating expenses. If we do not obtain funds for these expenses, we will have to cease operations.
