UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KSB
(x) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES ACT OF
1934 (FEE REQUIRED)
For the fiscal year ended August 31, 2002
-----------------
( ) TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transaction period from to
Commission File number 0-30402
-------
STANDARD CAPITAL CORPORATION
------------------------------
(Exact name of Company as specified in charter)
Delaware 91-1948355
-------- ----------
State or other jurisdiction of incorporation (I.R.S. Employee I.D. No.)
or organization
34-3387 King George Highway
Surrey, British Columbia, Canada V4P 1B7
- ----------------------------------- --------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code 1-604-538-4898
---------------------
Securities registered pursuant to section 12 (b) of the Act:
Title of each share Name of each exchange on which registered
None None
- ---------------- --------------------
Securities registered pursuant to Section 12 (g) of the Act:
None
----
(Title of Class)
Check whether the Issuer (1) filed all reports required to be filed by section
13 or 15 (d) of the Exchange Act during the past 12 months (or for a shorter
period that Standard was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
(1) Yes [X] No [ ] (2) Yes [X] No [ ]
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of Standard's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]
State issuer's revenues for its most recent fiscal year: $ -0-
------------
State the aggregate market value of the voting stock held by nonaffiliates of
Standard. The aggregate market value shall be computed by reference to the
price at which the stock was sold, or the average bid and asked prices of such
stock, as of a specific date within the past 60 days.
-1-
As at August 31, 2002, the aggregate market value of the voting stock held by
nonaffiliates is undeterminable and is considered to be 0.
(STANDARD INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE LAST FIVE YEARS)
Not applicable
(APPLICABLE ONLY TO CORPORATE COMPANYS)
As of August 31, 2002, Standard has 1,295,000 shares of common stock issued and
outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Exhibits incorporated by reference are referred under Part IV.
-2-
TABLE OF CONTENTS
PART 1
- -------
Page
----
ITEM 1. DESCRIPTION OF BUSINESS 4
ITEM 2. . . DESCRIPTION OF PROPERTY 5
ITEM 3. . LEGAL PROCEEDINGS 6
ITEM 4 SUBMISSION OF MATTERS TO VOTE OF
.. . . . . . . .SECURITIES HOLDERS 6
PART II
- ---------
ITEM 5 MARKET FOR COMMON EQUITY AND RELATED
.. . . . . . . .STOCKHOLDER MATTERS 6
ITEM 6 MANAGEMENT'S DISCUSSION AND ANALYSIS
.. . . . . . . .OR PLAN OF OPERATION 7
ITEM 7. . . FINANCIAL STATEMENTS 7
ITEM 8 CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING
.. . . . . . . AND FINANCIAL DISCLOSURE 7
PART III
- ---------
ITEM 9 DIRECTORS, EXECUTIVE OFFICERS,
PROMOTERS, AND CONTROL PERSONS,
COMPLIANCE WITH SECTION 16 (a) OF
.. . . . . . . THE EXCHANGE ACT 8
ITEM 10.. . EXECUTIVE COMPENSATION 10
ITEM 11 SECURITY OWNERSHIP OF CERTAIN BENEFICAL
... . . . . . .OWNERS AND MANAGEMENT 10
ITEM 12 CERTAIN RELATIONSHIPS AND RELATED
... . . . . . .TRANSACTIONS 11
PART IV
- --------
ITEM 13.. . EXHIBITS AND REPORTS 12
SIGNATURES 21-23
-3-
PART 1
ITEM 1. DESCRIPTION OF BUSINESS
HISTORY AND ORGANIZATION
Standard was incorporated on September 24, 1998 and has no subsidiaries and no
affiliated companies. It has not been in bankruptcy, receivership or similar
proceedings since its inception. Nor has it been involved in any material
reclassification, merger, consolidation or purchase or sale of any significant
assets not in the ordinary course of business. Standard's executive offices are
located at 34-3387 King George Highway, Surrey, B.C., V4P 1B7 (Tel:
604-538-4898).
Standard is engaged in the exploration of mineral claim known as the "Standard".
(see Part 1, "Exploration and Development of the Standard Claim"). Standard is
referred to as being in the "development" stage by its auditors. This term is
generally used in Financial Accounting Standards to describe a company seeking
to develop its ideas and products. Standard is not in the development stage
with regards to any mineral claim. No ore reserve has been discovered and no
substantial exploration has been done on its mineral claim. Standard is purely
an exploration company. There is no assurance that any ore reserve will ever be
found and that Standard will have sufficient funds to undertake the exploration
work required to identify an ore reserve.
Management anticipates that Standard's shares will be qualified on the system of
the National Association of Securities Dealers, Inc. ("NASD") known as the OTC
Bulletin Board (the "OTC BB"). At the present time Standard has made no
application to the OTC BB and there is distinct possibility its shares will
never be quoted on the OTC BB.
Standard owns the exclusive rights to all minerals on the Standard claim except
for coal which is under a separate license. There is virtually limited
possibilities that there is any coal on the Standard claim. The claims are in
good standing until February 24, 2003. The claim is owned by the Crown (the
Province of British Columbia). If Standard does not perform exploration work or
pay cash-in-lieu in the amount of $1,320 on or before February 24, 2003 the
rights to the mineral claim will expire and the ground can be staked by someone
else.
Standard has no revenue to date from the exploration of the Standard claim, and
its ability to effect its plans for the future will depend on the availability
of financing. Such financing will be required to explore the Standard claim to
a stage where a decision can be made by management as to whether an ore reserve
exists and can be successfully brought into production. Standard anticipates
obtaining such funds from its director and President, financial institutions or
by way of the sale of its capital stock in the future (see Part 1, Item 2 -
"Plan of Operations"), but there can be no assurance that Standard will be
successful in obtaining additional capital for exploration activities from the
sale of its capital stock or in otherwise raising substantial capital.
Standard is responsible for filing various forms with the United States
Securities and Exchange Commission (the "SEC") such as Form 10-KSB and Form
10-QSB but has been deficient in these filings due to a lack of money.
Standard will bring current all filings by the second week of July 2003.
Standard has not distributed any material to its shareholders but is planning to
hold an annual general meeting of shareholders during 2003.
The shareholders may read and copy any material filed by Standard with the SEC
at the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, DC,
20549. The shareholders may obtain information on the operations of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an
Internet site that contains reports, proxy and information statements, and other
information which Standard has filed electronically with the SEC by assessing
the website using the following address: http://www.sec.gov. Standard has no
website.
-4-
PLANNED BUSINESS
The following discussion should be read in conjunction with the information
contained in the financial statements of Standard and the notes which form an
integral part of the financial statements which are attached hereto.
The financial statements mentioned above have been prepared in conformity with
accounting principles generally accepted in the United States of America and are
stated in United States dollars.
Standard presently has minimal day-to-day operations and to maintain the
Standard claim in good standing on an annual basis and prepare the filings of
reports to the SEC as required. As mentioned above, due to a lack of working
capital, Standard is deficient in its filing of reports to the SEC. Management
is currently attempting to rectify this situation.
RISK FACTORS
There are certain risk factors regarding Standard's operation which might effect
the outcome of its ability to operate in the future are listed below.
1. STANDARD'S AUDITORS INDICATED THERE MAY BE A GOING CONCERN PROBLEM AND
STANDARD MAY NOT BE ABLE TO ACHIEVE ITS OBJECTIVES.
The auditors have issued a going concern opinion in their opinion attached to
the audited financial statements for the year ended August 31, 2002. This means
there is substantial doubt on the part of the auditors where Standard can
continue its operations for the next twelve months based on its financial status
as at the year-end. If its President and director is unwilling to continue
to advance Standard money, Standard will need to raise money necessary for the
exploration of the Standard claim, or else it might have to cease operations.
Without the ability to explore the Standard claim, Standard will not be able to
achieve its objectives set by management.
2. PENNY STOCK RULES MAY MAKE BUYING OR SELLING OF STANDARD'S SHARES
DIFFICULT.
Trading in Standard's shares will, when a quotation is obtained on the OTC
Bulletin Board, be subject to the "Penny Stock" rules. The SEC has adopted
regulations that generally define a penny stock to be any equity security that
has a market price of less than $5.00 per share, subject to certain exceptions.
These rules require that any broker-dealer who recommends Standard's shares to
persons other than prior investors and accredited investors, must prior to the
sale, make a special written suitability determination for the purchaser and
receive the purchaser's written agreement to execute the transaction. Unless an
exception is available, the regulations require the delivery, prior to any
transaction involving a penny stock, of a disclosure explaining the penny stock
market and the risks associated with trading in the penny stock market. In
addition, broker-dealers must disclose commissions payable to both the
broker-dealer and the registered representative and current quotations for the
securities they offer. The additional burdens imposed upon broker-dealers by
such requirements may discourage broker-dealers from effecting transactions in
Standard's shares, which could severely limit their market price and liquidity
of Standard's shares. Broker-dealers who sell penny stocks to certain types of
investors are required to comply with the SEC's regulations concerning the
transfer of penny stock. These regulations require broker-dealers to:
- - Make a suitability determination prior to selling a penny stock to the
purchaser;
- - Receive the purchaser's written consent to the transaction; and
- - Provide certain written disclosures to the purchaser.
-5-
Any future investor must consider that Standard's share price might never be
considered anything more than "penny stock".
3. STANDARD LACKS AN OPERATING HISTORY AND HAS LOSSES WHICH ARE EXPECTED TO
CONTINUE INTO THE FUTURE. IF THE LOSES CONTINUE STANDARD WILL HAVE TO
SUSPEND OPERATIONS OR CEASE OPERATIONS.
Standard was incorporated on September 24, 1998 and has not realized any revenue
to date. It has no operating history upon which an evaluation of its future
success or failure can be made. The net loss since inception is $51,885.
Standard's ability to achieve profitability at the present time is doubtful
based on past experiences. It might never realize a positive cash flow from its
exploration activities on the Standard claim and therefore may continue to incur
negative cash flows for years into the future.
4. LACK OF EMPLOYEES DUE TO NO FUNDS TO HIRE NEW EMPLOYEES
Standard currently only has two employees, its President, Del Thachuk and
Secretary Treasurer, Mary Anne Thachuk. Neither of these two individuals work
full time for Standard since they have other job commitments. There is a
substantial risk Standard will not have the funds necessary to hire additional
employees that would be needed in Standard's exploration program.
5. LACK OF GEOLOGICAL EXPERIENCE BY THE OFFICERS AND DIRECTORS
Even though Del Thachuk was involved in placer mining for over 30 years and was
President of Red Fox Minerals Ltd until 10 year ago but he does not have a
geological background. Mary Anne Thachuk has no experience in the mineral
industry. Therefore, Standard will have to rely upon outside consultants to
give advise on the various methods of exploring the Standard claim.
6. CONFLICT OF INTEREST
Del Thachuk is an officer and director of Info-Pro Marketing Inc. ("Info-Pro"),
a private Nevada company and, therefore, there might be a conflict of interest
in his dealing between Standard and Info-Pro. Since Info-Pro is not in the
mineral exploration industry, the real conflict will be how he devotes his time
between the two companies. Standard can only hope that he deals fairly with
it.
7. MONEY IS DIFFICULT TO OBTAIN FOR "GRASS ROOTS" EXPLORATION.
The future exploration of the Standard claim is considered "grass roots" in that
it is speculative in nature due to being a search for an ore reserve.
Investors tend to be shy about investing in "grass roots" exploration programs
since if no mineralization is discovered on the Standard claim, Standard might
allow the claim to lapse. If management is unable to identify another mineral
claim, the money invested by shareholders might be lost and never recovered.
8. FLUCTUATING PRICES OF MINERALS COULD CEASE EXPLORATION ACTIVITIES ON THE
STANDARD CLAIM.
Standard has absolutely no control over the daily prices of various minerals.
These daily mineral prices are set by the world markets. When gold and silver
prices, per ounce, have fallen in value, Standard will find it difficult to
attract money for exploration on the Standard claim. Later, if it ever happens,
and Standard finds an ore reserve it might not be able to develop such a reserve
on the Standard claim due to fallen mineral prices.
-6-
9. OTHER FLUCTUATING PRICES OUTSIDE OF THE CONTROL OF STANDARD.
Standard will not have any control over fluctuating prices of labor, supplies,
equipment and taxes. Any sudden increase in any of these costs will have the
effect of limiting the amount of exploration activities Standard can undertake
on its mineral claim. For example, if Standard budgeted a certain number of
dollars for workers during the exploration on the Standard claim and their daily
rate doubled, the number of days used for exploration would be reduced
accordingly. This will limit the information derived during exploration.
10. WEATHER INTERRUPTIONS IN THE PROVINCE OF BRITISH COLUMBIA MAY AFFECT AND
DELAY THE PROPOSED EXPLORATION OPERATIONS.
The proposed exploration work on the Standard claim should be performed during
the late spring, summer and early fall due to weather conditions. It is normal
in the Bralorne area for the late fall, winter and early spring months to be
subject to heavy snow conditions. Even during the early summer months British
Columbia is noted for its rainfall and during the middle to late summer months
for its forestry closures due to hot dry weather. Standard cannot control the
weather and if it plans a work program it might have to delay it due to
unexpected weather conditions.
11. STANDARD IS SMALL COMPANY WITHOUT MUCH CAPITAL WHICH MIGHT LIMIT IT
EXPLORATION ACTIVITIES AND ABILITY TO EXPAND IN THE FUTURE.
The small size of Standard and lack of capital might mean a limited exploration
program and a lack of ability to take advantage of business opportunities
available to large companies. Having adequate capital would mean Standard's
management could direct greater interest to the exploration of the Standard
claim in hopes of obtaining information which will assist in its future
development. Without adequate capital it will take longer to explore the
Standard claim and limit Standard's ability to expand in the future.
12. STANDARD IS A ONE PROPERTY COMPANY
With only the Standard claim, Standard does not have the diversion in mineral
properties which management would like. In addition, future investors might be
wary to invest in a one property company since should the Standard claim prove
to be without commercially viable mineralization, the investor might loss his or
her entire investment.
13. INVESTMENT IN STANDARD'S COMMON SHARES
An investment in the common shares of Standard is a speculative venture and an
investor must realize that the shares are considered to be a high risk
investment. An investor who cannot afford to loss their entire investment in
Standard's shares should not consider an investment in Standard. The purchase
of shares in Standard is not for widows and orphans.
14. STANDARD WILL HAVE DIFFICULTY ATTRACTING MINING PERSONNEL
Being a small company with only one mineral property might prove difficult for
Standard to attract mining personal to work on the Standard claim. Many
consultants and workers want to be associated with companies who have financial
stability and a variety of mineral properties since this will give them the
opportunity to move between properties in the event one property does not prove
to have viable mineralization associated with it. With only the Standard claim,
Standard will have to let workers go after the exploration season which usually
are at times when the weather conditions are not suitable for them to find other
properties to work on.
-7-
15. STANDARD MAY NEVER BE ABLE TO REFINING ITS ORE RESERVE
Even though there exists a commercial viable ore body, there is no guarantee
competition in refining the ore will not exist. Other companies may have long
term contracts with refining companies thereby inhibiting the Company's ability
to process its ore and eventually market it. At this point in time the Company
does not have any contractual agreements to refine any potential ore it might
discover on its mineral claim.
FORWARD-LOOKING STATEMENTS
Certain information set forth herein (other than historical data and
information) may constitute forward-looking statements regarding events and
trends which may affect Standard's future operating results and financial
position. The words "believe," "endeavor," "expect," "anticipate," "estimate,"
"intends," and similar expressions are intended to identify forward-looking
statements. Such statements are subject to certain risks, uncertainties and
assumptions, including, without limitation, the risks and uncertainties
concerning technological changes, increased competition, and general economic
conditions. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those anticipated, estimated, or projected. Standard cautions
potential investors not to place undue reliance on any such forward-looking
statements, all of which speak only as of the date of this Annual Report on Form
10-KSB. It is not possible to foresee or identify all such factors. Standard
disclaims any intention, commitment or obligation to revise or update any
forward-looking statement, or to disclose any facts, events or circumstances
that occur after the date hereof, which may affect the accuracy of any
forward-looking statement.
OTHER ITEMS
a. Research and development
Standard has not undertaken any research or development work on a product during
the last two years.
b. Environment concerns
Prior to commencing mining operations on any of the Standard claim, Standard
must meet certain environmental requirements. Compliance with these
requirements may prove to be difficult and expensive. Standard might be liable
if it does not adhere to the requirements. Environment concerns relate to the
use and supply of water, the animal life in the area, fish living in the
streams, the need to cut timber and removal of overburden; being the soil above
the hard rock. No building or fixtures of any form can be erected without the
prior approval of the District Inspector for British Columbia. The cost and
effect of adhering to the environment requires are unknown to Standard at this
time and cannot be reasonably estimated.
c. Competition in the mining industry
In Canada, there are numerous mining and exploration companies, both big and
small. All of these mining companies are seeking properties of merit,
availability of funds and distribution of their minerals. Standard will have
to compete against such companies to acquire the funds to further develop and
explore the Standard claim. The availability of funds for exploration is
sometimes limited and Standard might find it difficult to compete with larger
and more well-known companies for capital. Even though Standard has the rights
to the mineral on its claim there is no guarantee it will be able to raise
sufficient funds in the future to maintain the Standard claim in good standing.
Therefore, if the situation occurs that it does not have sufficient funds for
exploration the claim might lapse and be staked by other mining interests.
Standard might be forced to seek a joint venture partner to assist in the
exploration of the Standard claim. In this case, there is the possibility
Standard might not be able to pay its proportionate share of the exploration
costs and might be diluted to an insignificant carried interest.
-8-
The exploration business is highly competitive and highly fragmented, dominated
by both large and small mining companies. Success will largely be dependent on
Standard's ability to attract talent from the mining field. There is no
assurance Standard's mineral expansion plans will be realized.
d. Adherence with governmental laws
During the exploration stage, Standard will not be restricted in its exploration
activities since establishing a soil sampling grid, minor trenching, soil and
rock sampling and some diamond drilling are not sufficient activities to require
governmental approval. In the event that a substantial diamond drilling program
is recommended, Standard will have to seek various approval from the government
either under the Mining Act, Forestry Act or Coal Act or all of these Acts. A
plan of action will have to be prepared by a professional geologist and
submitted to the government for approval. This will take both time and money
to do.
e. Additional employees
Standard will not in the foreseeable future be acquiring any additional
employees either full time or part time.
ITEM 2. DESCRIPTION OF PROPERTY
History of the Standard claim
The Standard claim was staked February 24, 1999 after the rights of the previous
owners had expired. The claim covers 15.8 square miles located within the
Bridge River Gold Camp near the historic Bralorne-Pioneer Mine. The
Bralorne-Pioneer Property represents the largest single gold producer in B.C.,
having produced over 4 million ounces of gold from ore averaging 0.53 oz/ton
during the period 1932-1971.
Standard engaged the services of Calvin Church, Professional Geologist, to
prepare a geological report on the Standard claim. His report was dated May 27,
1999 and parts of it are noted in this Form 10-KSB. Church's report covers the
geology and mineralization in the Bridge River mining camp and potential for
discoveries on the Standard claim.
Location, Access and Physiography of the Standard claim
The Standard claim is located approximately 113 miles north of Vancouver and 2.5
miles southeast of the town of Gold Bridge in southwestern British Columbia.
The geographical centre of the claim is given by the U.T.M. coordinates 516600E,
5626700N (Lat. 50 47'35"N, Long. 122 45'53"W) on N.T.S. mapsheet 92J/15. The
town of Gold Bridge can be accessed by all weather gravel road (highway #40B)
from Lillooet or via the Hurley River forestry road from Pemberton. Access to
the north end of the claim is by four-wheel drive vehicle up Fergusson Creek to
the headwaters above 5,800 feet elevation. Helicopters are available from bases
in the towns of Pemberton or Lillooet.
-9-
The property is situated near the northwest end of the Bendor Range within the
Coast Mountains where steep west facing slopes of Mt. Fergusson range from 5,000
to 8,500 feet. Sub-alpine scrub alder and hemlock trees grow at lower
elevations in the southwest corner of the claim and rock exposure is good along
peaks and ridges in the east half of the claim. The winters are cold with
generally high snowfall accumulations and summers are hot and dry.
Claim Status
The Standard claim was staked by professional staker and is registered in the
Lillooet Mining Division of British Columbia. The claim was then sold to
Standard Capital Corporation, of Surrey, B.C., who own the claim outright.
Mineral tenure is secure for one year from the date of staking as described
below.
Claim Name Tenure No. Units Expiry Date
- ----------- ----------- ----- ------------
Standard 367933 18 February 24, 2003
Regional patterns of metal zonation across the eastern flank of the Coast
Plutonic Complex divide the camp into gold rich and silver rich deposits related
to the proximity with the central plutons (bodies of medium to course-grained
igneous rock that formed beneath the surface due to the solidification of
magma). 'Congress type' mineralization, represented by low gold-silver ratios
and antimony rich ores, developed distal to coast granitic intrusives in shear
zones and Tertiary porphyry dykes. Mineralization at the Bralorne and Pioneer
mines consist of gold and arsenopyrite (8[FeAsS]) bearing quartz veins filling
in echelon tension fractures in the Bralorne diorite (a group of course-grained
igneous rocks intermediate in composition between acidic and basic) and Pioneer
greenstones. The Standard property is located in a transition zone between
gold-arsenic rich and silver-antimony rich zones. Although economic
mineralization has not yet been identified on the property, rock samples from
the Waterloo showing show multielement anomalies and significant gold values to
warrant further investigation.
An exploration program including reconnaissance mapping, prospecting and
geochemical sampling is recommended to determine the extent of the mineralizing
system on the Standard claim. Further programs of trenching and drilling are
recommended contingent on favorable results of each preceding exploration phase.
Exploration activities undertaken between January 18 to 21, 2002
The Legal Corner Post is located approximately 2 miles southeast of the Village
of Bralorne and on the north side of Fergusson Creek. Access to the Standard
claim is by snowmobile part way up the Fergusson Creek access trail to the 5,800
feet elevation and approximately 1 mile up Fergusson Creek.
The claim boundary is characterized by extreme topographical conditions.
Sub-alpine scrub alder and hemlock trees grow at the creek elevations and rock
outcropping exposure is good along peaks and ridges in the east half of the
canyon. The winters are cold with generally high snowfall accumulations and
summers are hot and dry.
Assessment work for 2002 filed with B.C. Minfile documents the immediate claim
area being prospected. Trenching and underground exploration work was completed
on adjacent ground. Two zones of mineralization were identified. Assays from
this sheared vein structures ranged from 8.7 g/t to 28.2 g/t gold over variable
widths of 10 cm to 80 cm.
The above exploration activities has maintained the Standard claim in good
standing until February 24, 2003.
-10-
ITEM 3. LEGAL PROCEEDINGS
There are no legal proceedings to which Standard is a party or to which its
property is subject, nor to the best of management's knowledge are any material
legal proceedings contemplated.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
No matters were submitted to a vote of shareholders of Standard during the
fiscal year ended August 31, 2002.
PART II
ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
During the past year there has been no established trading market for Standard's
common stock. Since its inception, Standard has not paid any dividends on its
common stock, and Standard does not anticipate that it will pay dividends in the
foreseeable future. As at August 31, 2002 Standard had 35 shareholders; one of
these shareholders is an officer and director of Standard.
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
LIQUIDITY AND CAPITAL RESOURCES
Standard has had no revenue since inception and its accumulated deficit is
$51,885. To date, the growth of Standard has been funded by the sale of shares
and advances by the directors and officers in order to meet the requirements of
filing with the SEC and maintaining the Standard claim in good standing.
The plan of operations during the next twelve months will be to maintain the
Standard claim in good standing with the Province of British Columbia and meet
its filing requirements. Presently Standard does not have the funds to
consider any additional mineral claims. Management is considering the raising
of additional funds through the sale of shares but no decision as to the price
and number of shares to be issued has been decided upon.
Management estimates that a minimum of approximately $11,000 will be required
over the next twelve months to pay for such expenses as bookkeeping, auditing,
filing fees, exploration activities on the Standard claim and payments to the
transfer agent. The above noted figure does not include amounts owed to
creditors in the amount of $17,317 as at August 31, 2002. If all debts, other
-11-
than amounts owed to related parties, are settled during the next twelve months
Standard will need approximately $28,000. At present Standard does not have
these funds and would be required to either sell shares in its capital stock or
obtain further advances from its directors and officers. Standard's future
operations and growth is dependent on its ability to raise capital for expansion
and to seek revenue sources.
The amounts due to related parties bears no interest and has not fixed terms of
repayment.
The amounts owed to third party creditors as at August 31, 2002 is as follows:
Auditors $ 7,000
Accountant 7,300
Transfer agent 2,730
Office expenses 287
--------
Total due $ 17,317
======
Standard will have to raise funds to settle these outstanding liabilities if it
wishes to continue to operate in the future.
Standard does not expect to purchase or sell any plant or significant equipment
during the next year.
Standard does not expect any significant changes in the number of employees.
ITEM 7. FINANCIAL STATEMENTS
The financial statements of Standard are included following the signature page
to this Form 10-KSB.
ITEM 8. CHANGES IN AND DISAGREEMENT WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
From inception to date, Standard's principal accountant is Seller and Andersen,
L.L.C. of Salt Lake City, Utah. The firm's report for the period from
inception to August 31, 2002 did not contain any adverse opinion or disclaimer,
nor were there any disagreements between management and Standard's accountants.
PART 111
ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS;
COMPLIANCE WITH SECTION 16 (A) OF THE EXCHANGE ACT
The following table sets forth as of August 31, 2002, the name, age, and
position of each executive officers and the director and the term of office of
each director of Standard.
-12-
Term as
Director
Name Age Position Held Since
- --------------------------------- -------- ---------------------- -----
Del Thachuk . . . . . . . . . . 67 President and Director 1998
Mary Anne Thachuk 67 Secretary Treasurer 1998
The director of Standard serves for a term of one year and until his successor
is elected at Standard's annual shareholders' meeting and is qualified, subject
to removal by Standard's shareholders. Each officer serves, at the pleasure of
the board of director, for a term of one year and until his successor is
elected at the annual general meeting of the board of director and is
qualified.
Set forth below is certain biographical information regarding each of Standard's
executive officers and the directors.
DEL THACHUK has been the President and a Director of Standard since its
inception. Mr. Thachuk graduated from Victoria Composite High School in
Edmonton, Alberta before spending nine months articling as a chartered
accountant student. Subsequently, Mr. Thachuk worked for two years for the City
of Edmonton as a surveyor before entering professional football for four years.
He was a player for London Lords in London, Ontario and then was hired by the
Edmonton Eskimos. From 1962 to 1969, Mr. Thachuk was owner and president of
Civic Tire & Battery Ltd. located in Olds, Alberta. His company owned three tire
shops and was in partnership with an additional two. Subsequent to the sale of
his company he became a contractor for a short period of time during which time
he build and sold five houses and approximately thirty pre-fab homes. In 1971,
Mr.Thachuk commenced mining a placer gold property he owned in Atlin, British
Columbia. During the fifteen years he mined his placer property he extracted in
excess of 30,000 ounces of gold. With the sale of the placer property, Mr.
Thachuk, over the next five years, entered into various mining ventures in
Nevada, Washington State and British Columbia. During this same period of
time, Mr. Thachuk was president of Red Fox Minerals Ltd., a company listed on
the former Vancouver Stock Exchange. In 1991, he became part owner and general
manager for Koben Sand & Gravel which employed 36 employees and in its third
year of operations had in excess of CDN $6,000,000 in sales. In 1994, Mr.
Thachuk became a consultant for various companies until 1997 when he
incorporated and became president of Mine A Max Corporation, a company trading
on the OTC Bulletin Board in United States. Recently he has formed a Nevada
company named Info-Pro Marketing Inc. specializing in the distribution of
educational books.
MARY ANNE THACHUK has been Secretary Treasurer of Standard since its inception.
She graduated from Jasper Place Sr. High in Edmonton in 1954 and then obtained a
Certified Secretarial Diploma from McTavish Business College. From 1956 to
1960, Maryanne worked for CJCA Broadcasting Station in Edmonton reporting on
court cases, sport related events and other news issues. She was the assistant
to the Sports and News Director. In 1960, she moved to Vancouver and was
employed as Private Secretary to the President of Dueck Motors. In 1962, she
moved back to Alberta where she was trained as an In-Service Social Worker with
the Alberta Government Department of Public & Child Welfare. In 1964 Maryanne
moved back to the Vancouver as the Private Secretary of the President of Lindal
Cedar Homes. From 1965 to 1988 she worked part time for the President of Delmor
Enterprises before becoming one of its directors. In 1988, she became the
Personal Secretary to the Board Chairman of the Culinary Foods Division for
Canadian Airline. Since 1990, she has been working for the B.C. Government
-13-
Department of Education (Surrey School District #36) where she has received
specialized training in Finance & Administration. In 2001, she retired and has
been occupied since as an ordinary housewife.
Del or Mary Anne Thachuk are not directors of another company registered under
the Securities and Exchange Act of 1934 other than Del who was a director and
officer of Mine A Max Corporation until May 31, 1999.
Del Thachuk, the President and Director, and Maryanne Thachuk, the Secretary
Treasurer, are married to one another. The two, however, are not related to any
person under consideration for nomination as a director or appointment as an
executive officer.
To the knowledge of management, during the past five years, no present or former
director, executive officer or person nominated to become a director or an
executive officer of Standard:
(1) filed a petition under the federal bankruptcy laws or any state insolvency
law, nor had a receiver, fiscal agent or similar officer appointed by the
court for the business or property of such person, or any partnership in
which he was a general partner at or within two years before the time of
such filings;
(2) was convicted in a criminal proceeding or named subject of a pending
criminal proceeding (excluding traffic violations and other minor
offenses);
(3) was the subject of any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining him from or otherwise limiting, the
following activities:
(i) acting as a futures commission merchant, introducing broker, commodity
trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, associated person of any of the foregoing, or as
an investment advisor, underwriter, broker or dealer in securities, or
as an affiliate person, director or employee of any investment
company, or engaging in or continuing any conduct or practice in
connection with such activity;
(ii) engaging in any type of business practice; or
(iii) engaging in any activities in connection with the purchase or sale of
any security or commodity or in connection with any violation of
federal or state securities laws or federal commodities laws;
(4) was the subject of any order, judgment, or decree, not subsequently
reversed, suspended, or vacated, of any federal or state authority barring,
suspending or otherwise limiting for more than 60 days the right of such
person to engage in any activity described above under this Item, or to be
associated with persons engaged in any such activities;
(5) was found by a court of competent jurisdiction in a civil action or by the
Securities and Exchange Commission to have violated any federal or state
securities law, and the judgment in such civil action or finding by the
Securities and Exchange Commission has not been subsequently reversed,
suspended, or vacated.
(6) was found by a court of competent jurisdiction in a civil action or by the
Commodity Futures Trading Commission to have violated any federal
commodities law, and the judgment in such civil action or finding by the
Commodity Futures Trading Commission has not been subsequently reversed,
suspended or vacated.
-14-
COMPLIANCE WITH SECTION 16 (A) OF THE EXCHANGE ACT
Standard knows of no director, officer, beneficial owner of more than ten
percent of any class of equity securities of Standard registered pursuant to
Section 12 ("Reporting Person") that failed to file any reports required to be
furnished pursuant to Section 16(a). Other than those disclosed below, Standard
knows of no Reporting Person that failed to file the required reports during the
most recent fiscal year.
The following table sets forth as at August 31, 2002, the name and position of
each Reporting Person that failed to file on a timely basis any reports required
pursuant to Section 16 (a) during the most recent fiscal year.
Name Position Report to be Filed
- ---- -------- ---------------------
Del Thachuk President and Director Form 3
Mary Anne Thachuk Secretary Treasurer Form 3
On September 11, 2002, Del Thachuk filed a Form 3 with the SEC.
ITEM 10. EXECUTIVE COMPENSATION
CASH COMPENSATION
There was no cash compensation paid to any director or executive officer of
Standard during the fiscal year ended August 31, 2002.
The following table sets forth compensation paid or accrued by Standard
during the fiscal years ended August 31, 2000 to 2002 to Standard's President,
Director and Secretary Treasurer.
SUMMARY COMPENSATION TABLE (2000-2002)
Long Term Compensation (US Dollars)
--------------------------------------
Annual Compensation Awards Payouts
- -------------------- ------ -------
(a) (b) (c) (e) (f) (g) (h) (i)
Other Restricted All other
annual stock Options/ LTIP compen-
Name and Princi- . . Comp. awards SAR payouts sation
pal position . . . . Year Salary ($) ($) (#) ($) ($)
- -------------------- ------- ----------- ---------- -------- -------- ---------- -------
Del Thachuk. . . . . 2000 -0- -0- -0- -0- -0- -0-
President and. . . . 2001 -0- -0- -0- -0- -0- -0-
Director. . . . 2002 -0- -0- -0- -0- -0- -0-
Mary Anne Thachuk. . 2000 -0- -0- -0- -0- -0- -0-
Secretary Treasurer. 2001 -0- -0- -0- -0- -0- -0-
. . . 2002 -0- -0- -0- -0- -0- -0-
There has been no compensation given to the Directors or any of Officers during
the periods ended August 31, 2000 to 2002. There are no stock options
outstanding as at August 31, 2002, but it is contemplated that the Company may
issue stock options in the future to officers, directors, advisers and future
employees.
-15-
BONUSES AND DEFERRED COMPENSATION
None
COMPENSATION PURSUANT TO PLANS
None
PENSION TABLE
None
OTHER COMPENSATION
The director has not received any compensation for the time he devotes to
Standard. Nevertheless, Standard does give recognition to the time spent by
accruing as an expense each month a charge of $200 per month as management fees
with an offsetting credit to Capital in excess of par value. The amount so
accrued with not be pay in either cash or shares to the director in the future.
COMPENSATION OF THE DIRECTOR
None
TERMINATION OF EMPLOYMENT
There are no compensatory plans or arrangements, including payments to be
received from Standard, with respect to any person named in Cash Consideration
set out above which would in any way result in payments to any such person
because of his resignation, retirement, or other termination of such person's
employment with Standard or its subsidiaries, or any change in control of
Standard, or a change in the person's responsibilities following a change in
control of Standard.
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth as at August 31, 2002, the name and address and
the number of shares of Standard's common stock, with a par value of $0.001 per
share, held of record or beneficially by each person who held of record, or was
known by Standard to own beneficially, more than 5% of the issued and
outstanding shares of Standard's common stock, and the name and shareholdings of
each director and of all officers and directors as a group.
-16-
Name and Address Amount
of Beneficial Nature of of Beneficial Percent
Owner Ownership(1) Ownership of Class
- ------------------------------------- ------------ -------------- --------
DEL THACHUK
Unit 34 - 3387 King George
Highway
Surrey, British Columbia
Canada, V4P 1B7 . . . . . . . Direct 100,000 (i) 7.72
DORIS O'BRIEN
626 - Highway 99
P.O. Box 5
Surrey, British Columbia
Canada, V4B 5A8. . . . . . . . Direct 100,000 7.72
AUGGNETHA QUASHIE
15382 - 110A Avenue
Surrey, British Columbia
Canada, V3R 9H6 . . . . . . . Direct 100,000 7.72
MICHAEL LEVESQUE
3350 - 199A Street
Langley, British Columbia
Canada, V3A 4T9 . . . . . . . Direct 100,000 7.72
MICHAEL THACHUK
47 - 20761 Telegraph Trail
Surrey, British Columbia
Canada, V1M 2W3 . . . . . . . Direct 100,000 (ii) 7.72
GERRY WOLFF
4364 Woodcrest Road
West Vancouver, B.C.
Canada, V7SX 2W1. . . . . . . Direct 100,000 7.72
MARVIS SHAW
246 - 20071 - 24th Avenue
Langley, British Columbia
Canada, V2Z 2A1. . . . . . . Direct 100,000 7.72
KEN RADOMSKY
840 - 15355 - 24th Avenue
White Rock, B.C.
Canada, V4B 4C2. . . . . . . Direct 100,000 7.72
RAYMOND MILLLER
301 - 1323 Merklin Street
White Rock, British Columbia
Canada, V4A 4C2. . . . . . . Direct 100,000 7.72
MARION K. SEPT
19188 - 84th Avenue
Surrey, British Columbia
Canada, V4N 3G5. . . . . . . Direct 100,000 7.72
KAREN FORD
17773 - 59 a Avenue
Surrey, British Columbia
Canada, V3S 1R2. . . . . . . Direct (2) 100,000 7.72
-17-
(1) All shares owned directly are owned beneficially and of record, and such
shareholder has sole voting, investment and dispositive power, unless
otherwise noted.
(2) These shares have been sold but the certificate has not been changed to
denote the new owner.
(3) Under Rule 13-d under the Exchange Act, shares not outstanding but subject
to options, warrants, rights, conversion privileges pursuant to which such
shares may be acquired in the next 60 days are deemed to be outstanding for
the purpose of computing the percentage of outstanding shares owned by the
persons having such rights, but are not deemed outstanding for the purpose
of computing the percentage for such other persons.
(i) This stock is restricted since it was issued in compliance with the
exemption from registration provided by Section 4(2) of the Securities
Act of 1933, as amended. After this stock has been held for one year,
Mr. Thachuk could sell 1% of the outstanding stock in Standard every
three months. Therefore, this stock can be sold after the expiration
of one year in compliance with the provisions of Rule 144. There is
"stock transfer" instructions placed against this certificate and a
legend has been imprinted on the stock certificate itself.
(ii) Michael Thachuk is the son of the President of Standard. He is married
and lives in his own home. These shares are not restricted under Rule
144.
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
TRANSACTIONS WITH MANAGEMENT AND OTHERS
Except as indicated below, there were no material transactions, or series of
similar transactions, since inception of Standard and during its current fiscal
period, or any currently proposed transactions, or series of similar
transactions, to which Standard was or is to be a party, in which the amount
involved exceeds $60,000, and in which any director or executive officer, or any
security holder who is known by Standard to own of record or beneficially more
than 5% of any class of Standard's common stock, or any member of the immediate
family of any of the foregoing persons, has an interest.
INDEBTEDNESS OF MANAGEMENT
There were no material transactions, or series of similar transactions, since
the beginning of Standard's last fiscal year, or any currently proposed
transactions, or series of similar transactions, to which Standard was or is to
be a part, in which the amount involved exceeded $60,000 and in which any
director or executive officer, or any security holder who is known to Standard
to own of record or beneficially more than 5% of the common shares of Standard's
capital stock, or any member of the immediate family of any of the foregoing
persons, has an interest.
TRANSACTIONS WITH PROMOTERS
Standard does not have promoters and has no transactions with any promoters.
-18-
PART IV
ITEM 13. EXHIBITS AND REPORTS
(a) (1) FINANCIAL STATEMENTS.
The following financial statements are included in this report:
Title of Document Page
- ------------------- ----
Report of Sellers and Andersen L.L.C. 14
Balance Sheet as at August 31, 2002 and 2001 15
Statement of Operations for the year ended August 31, 2002
and 2001 and for the period from September 24, 1998 (Date of
Inception) to August 31, 2002 16
Statement in Changes in Stockholders' Equity for the period from
September 24, 1998 (Date of Inception) to August 31, 2002 17
Statement of Cash Flows for the year ended August 31, 2002
and 2001 and for the period from September 24, 1998 (Date of
Inception) to August 31, 2002 18
Notes to the Financial Statements 19
(a) (2) FINANCIAL STATEMENT SCHEDULES
The following financial statement schedules are included as part of this report:
None.
(a) (3) EXHIBITS
The following exhibits are included as part of this report by reference:
1. Certificate of Incorporation, Articles of Incorporation and By-laws
1.1 Certificate of Incorporation (incorporated by reference from Standard's
Registration Statement on Form 10-SB filed on December 6, 1999)
1.2 Articles of Incorporation (incorporated by reference from Standard's
Registration Statement on Form 10-SB filed on December 6, 1999)
1.3 By-laws (incorporated by reference from Standard's Registration
Statement on Form 10-SB filed on December 6, 1999)
99.1 Certification of the President Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
99.1 Certification of the Secretary Treasurer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
(b) Reports on Form 8-K
None
-19-
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
STANDARD CAPITAL CORPORATION
(Registrant)
Date: July 8, 2003 By:/s/ "Del Thachuk"
----------------------
Del Thachuk
President and Director
Date: July 8, 2003 By: /s/ "Mary Anne Thachuk"
---------------------------------
Mary Anne Thachuk
Secretary Treasurer
-20-
CERTIFICATIONS
I, E. Del Thachuk, certify that:
1. I have reviewed this Annual report on Form 10-KSB of Standard Capital
Corporation ("Standard");
2. Based on my knowledge, this Annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period
covered by this Annual report;
3. Based on my knowledge, the financial statements, and other financial
information included in this Annual report, fairly present in all
material respects the financial condition, results of operations
and cash flows of Standard as of, and for, the periods presented
in this Annual report;
4. Standard's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for Standard
and have :
(a) Designed such disclosure controls and procedures to ensure that
material information relating to Standard is made known to us by
others within it, particularly during the period in which this
Annual report is being prepared;
(b) Evaluated the effectiveness of Standard's disclosure controls and
procedures as of a date within 90 days prior to the filing date of
this Annual report (the "Evaluation date"); and
(c) Presented in this Annual report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation date;
5. Standard's other certifying officer and I have disclosed, based on our
most recent evaluation, to Standard's auditors and Standard's board of
director:
(a) All significant deficiencies in the design or operation of
internal controls which could adversely affect Standard's
ability to record, process, summarize and report financial data
and have identified for Standard's auditors any material
weaknesses in internal controls, and
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in Standard's internal
controls; and
6. Standard's other certifying officer and I have indicated in this Annual
report whether there were significant changes in internal controls or in
other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation including any
corrective actions with regard to significant deficiencies and material
weaknesses.
Date July 8, 2003 :
/s/ "E. Del Thachuk"
- ------------------------------------
E. Del Thachuk
President and Director
-21-
CERTIFICATIONS
I, Mary Anne Thachuk, certify that:
1. I have reviewed this Annual report on Form 10-KSB of Standard Capital
Corporation ("Standard");
2. Based on my knowledge, this Annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period
covered by this Annual report;
3. Based on my knowledge, the financial statements, and other financial
information included in this Annual report, fairly present in all
material respects the financial condition, results of operations and
cash flows of Standard as of, and for, the periods presented in
this Annual report;
4. Standard's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for Standard and
have :
(a) Designed such disclosure controls and procedures to ensure that
material information relating to Standard is made known to us by
others within it, particularly during the period in which this
Annual report is being prepared;
(b) Evaluated the effectiveness of Standard's disclosure controls and
procedures as of a date within 90 days prior to the filing date of
this Annual report (the "Evaluation date"); and
(c) Presented in this Annual report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation date;
5. Standard's other certifying officer and I have disclosed, based on our
most recent evaluation, to Standard's auditors and Standard's board
of directors:
(a) All significant deficiencies in the design or operation of
internal controls which could adversely affect Standard's ability
to record, process, summarize and report financial data and have
identified for Standard's auditors any material weaknesses in
internal controls, and
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in Standard's internal
controls; and
6. Standard's other certifying officer and I have indicated in this Annual
report whether there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent
to the date of our most recent evaluation including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date July 8, 2003 :
/s/ "Mary Anne Thachuk"
- ------------------------------------
Mary Anne Thachuk
Secretary Treasurer
-22-
ANDERSEN ANDERSEN & STRONG, L.C. 941 East 3300 South, Suite 220
Certified Public Accountants and Business
Consultants Board Salt Lake City, Utah, 84106
Member SEC Practice Section of the AICPA Telephone 801-486-0096
Fax 801-486-0098
Board of Directors
Standard Capital Corporation
Vancouver B. C. Canada
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We have audited the accompanying balance sheet of Standard Capital Corporation
(exploration stage company) at August 31, 2002, and the statement of
operations, stockholders' equity, and cash flows for the year ended August 31,
2002 and 2001 and the period September 24 1998 (date of inception) to August 31,
2002. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit also includes assessing
the accounting principles used and significant estimates made by management
as well as evaluating the overall balance sheet presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Standard Capital Corporation at
August 31, 2002, and the results of operations, and cash flows for the years
ended August 31, 2002 and 2001 and the period September 24, 1998 (date of
inception ) to August 31, 2002, in conformity with accounting principles
generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company will need additional
working capital to service its debt and for its planned activity, which raises
substantial doubt about its ability to continue as a going concern. Management's
plans in regard to these matters are described in Note 5. These financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
Salt Lake City, Utah /s/ "Andersen Andersen & Strong, L.C."
June 29, 2003
-23-
STANDARD CAPITAL CORPORATION
(EXPLORATION STAGE COMPANY)
BALANCE SHEET
AUGUST 31, 2002 AND 2001
2002
------
ASSETS
CURRENT ASSETS
CASH . . . . . . . . . . . . . . . . . . . . . . $ 329
-------
TOTAL CURRENT ASSETS $ 329
=======
LIABILITES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
ACCOUNTS PAYABLE - RELATED PARTY . . . . . . . $ 15,047
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES . . . . 17,317
-------
TOTAL CURRENT LIABILITIES 32,364
-------
STOCKHOLDERS' DEFICIENCY
COMMON STOCK
25,000,000 SHARES AUTHORIZED, AT $0.001 PAR
VALUE, 1,295,000 SHARES ISSUED AND
OUTSTANDING . . . . . . . . . . . . . . . . 1,295
CAPITAL IN EXCESS OF PAR VALUE . . . . . . . . . 18,555
DEFICIT ACCUMULATED DURING THE EXPLORATION STAGE (51,885)
--------
TOTAL STOCKHOLDERS' DEFICIENCY . . . (32,035)
--------
$ 329
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
-24-
STANDARD CAPITAL CORPORATION
(EXPLORATION STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2002 AND 2001
AND FOR THE PERIOD FROM SEPTEMBER 24, 1998 (DATE OF INCEPTION)
TO AUGUST 31, 2002
AUG 31, AUG 31, SEPT 24, 1998
2002 2001 TO AUG 31, 2002
------------- ------------ ----------------
REVENUES . . . . . . . . . . . . . $ - $ - $ -
------------- ------------- ----------
EXPENSES 13,502 13,015 51,885
---------- --------- --------
NET LOSS. . . . . . . . . . . . . . $ (13,502) $ (13,015) $ (51,885)
========== ========= ==========
NET LOSS PER COMMON SHARE
Basic . . . . . . . . $ (0.01) - $ -
======== ========
AVERAGE OUTSTANDING SHARES
Basic . . . . . . . . 1,295,000 1,295,000
========= =========
The accompanying notes are an integral part of these financial statements.
-25-
STANDARD CAPITAL CORPORATION
(EXPLORATION STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM SEPTEMBER 24, 1998
(DATE OF INCEPTION) TO AUGUST 31, 2002
Capital in
Common Stock Excess of Accumulated
Shares Amount Par Value Deficit
---------- --------- ---------- -------------
BALANCE SEPTEMBER 24, 1998 (date of
inception). . . . . . . . . . . . . . - $ - $ - $ -
Issuance of common shares for cash at
$0.001 - January 11, 1999. . . . . . . 1,000,000 1,000 - -
Issuance of common shares for cash at
$0.001 - February 19, 1999 . . . . . . 100,000 100 - -
Issuance of common shares for cash at
$0.01 - February 15, 1999. . . . . . . 195,000 195 1,755 -
Capital contributions - expenses . . . . . - - 4,200
Net operating loss for the period from
September 24, 1998 to August 31, 1999. - - - (12,976)
-------- ----- ------- ---------
Balance August 31, 1999 1,295,000 1,295 5,955 (12,976)
Capital contributions - expenses . . . . . - - 4,200 -
Net operating loss for the year ended
August 31, 2000. . . . . . . . . . . . - - - (13,014)
--------- ----- ------- ---------
Balance August 31, 2000 1,295,000 1,295 10,155 (25,368)
Capital contributions - expenses . . . . . - - 4,200 -
Net operating loss for the year ended
August 31, 2001. . . . . . . . . . . . - - - (13,015)
---------- --------- ---------- -------------
Balance August 31, 2001 1,295,000 1,295 14,355 (38,383)
Capital contribution - expenses - - 4,200 -
Net operating loss for the year ended
August 31, 2002 - - - (13,502)
--------- ------ ------- ---------
BALANCE AUGUST 31, 2002 1,295,000 $ 1,295 $ 18,555 $ (51,885)
========= ======= ======= ========
The accompanying notes are an integral part of these financial statements.
-26-
STANDARD CAPITAL CORPORATION
(EXPLORATION STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED AUGUST 31, 2002AND 2001 AND
FOR THE PERIOD FROM SEPTEMBER 24, 1998
(DATE OF INCEPTION) TO AUGUST 31, 2002
AUG 31, AUG 31, SEPT 24, 1998
2002 2001 TO AUG 31, 2002
-------------- -------------- -----------------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss. . . . . . . . . . . . . . . $ (13,502) $ (13,014) $ (51,885)
Adjustments to reconcile net loss
to net cash provided by
operating activities:
Changes in accounts payable. . . . 9,628 8,643 32,364
Capital contributions. . . . . . . 4,200 4,200 16,800
--------- -------- ----------
Net Cash form Operations. . . 326 (172) (2,721)
--------- --------- ----------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Proceeds from issuance of
common stock . . . . . . . . . - - 3,050
--------- --------- -----------
Net Increase in Cash. . . . . . . . . 326 (172) 329
Cash at Beginning of Period . . . . . 3 175 -
--------- --------- ------------
CASH AT END OF PERIOD . . . . . . . . $ 329 $ 3 $ 329
========= ========= ============
SCHEDULE OF NONCASH OPERATING ACTIVITIES
Capital Contribution - expenses $ 4,200 $ 4,200 $ 16,800
The accompanying notes are an integral part of these financial statements.
-27-
STANDARD CAPITAL CORPORATION
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
August 31, 2002
1. ORGANIZATION
Standard was incorporated under the laws of the State of Delaware on September
24, 1998 with the authorized common stock of 25,000,000 shares at $0.001 par
value.
Standard was organized for the purpose of acquiring and developing mineral
properties. At the report date mineral claims, with unknown reserves, had been
acquired. Standard has not established the existence of a commercially minable
ore deposit and therefore has not reached the development stage and is
considered to be in the exploration stage (see note 3).
Standard has completed one Regulation D offering of 1,295,000 shares of its
capital stock for cash.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
- -------------------
Standard recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
- ----------------
Standard has not yet adopted a policy regarding payment of dividends.
Income Taxes
- -------------
On August 31, 2002, the Company had a net operating loss carry forward of
$51,885. The tax benefit of $15,565 from the loss carry forward has been fully
offset by a valuation reserve because the use of the future tax benefit is
doubtful since the Company has no operations.The loss carry forward will
expire starting in 2002 through 2022.
Basic and Diluted Net Income (loss) Per Share
- ----------------------------------------------------
Basic net income (loss) per share amounts are computed based on the
weighted average number of shares actually outstanding. Diluted net income
(loss) per share amounts are computed using the weighted average number of
common and common equivalent shares outstanding as if shares had been issued on
the exercise of the preferred share rights unless the exercise becomes
antidilutive and then only the basic per share amounts are shown in the report.
Statement of Cash Flows
- -----------------------
For the purposes of the statement of cash flows, the Company considers all
Highly liquid investments with a maturity of three months or less to be cash
Equivalents.
-28-
STANDARD CAPITAL CORPORATION
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
August 31, 2002
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Capitalization of Mineral Claim Costs
Cost of acquisition, exploration, carrying, and retaining unproven properties
are expensed as incurred. Cost incurred in proving and developing a property
ready for production are capitalized and amortized over the life of the
mineral deposit or over a shorter period if the property is shown to have an
improvement in value. Expenditures for mine equipment are capitalized and
depreciated over their useful life.
Revenue Recognition
- -------------------
Revenue is recognized on the sale and transfer of goods and services.
Advertising and Market Development
- ----------------------------------
The Company expenses advertising and market development costs as incurred.
Financial and Concentration Risk
- --------------------------------
The Company does not have any concentration or related financial credit risk.
Environmental Requirements
- ---------------------------
At the report date environmental requirements related to the mineral claim
acquired (Note 3) are unknown and therefore any estimate of any future cost
cannot be made.
Financial Instruments
- ----------------------
The carrying amounts of financial instruments, including cash and accounts
payable, are considered by management to be their estimated fair value.
Estimates and Assumptions
- ---------------------------
Management uses estimates and assumptions in preparing financial statements in
accordance with accounting principles generally accepted in the United States of
America. Those estimates and assumptions affect the reported amounts of the
assets and liabilities, the disclosure of contingent assets and liabilities, and
the reported revenues and expenses. Actual results could vary from the
estimates that were assumed in preparing these financial statements.
-29-
STANDARD CAPITAL CORPORATION
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
August 31, 2002
3. AQUISITION OF MINERAL CLAIM
The Company acquired one 18 unit metric claim known as the Standard claim
situated within the Bridge River gold camp near the town of Gold Bridge, 160
kilometres north of Vancouver, British Columbia, with an expiration date of
February 23, 2004.
4. RELATED PARTY TRANASCTIONS
Officers-directors have acquired 7.8% of the outstanding common stock issued,
and have made no interest, demand loans of $15,047, and have made contributions
to capital of $16,800 to the Company in the form of expenses paid for the
Company
5. GOING CONCERN
The Company will need additional working capital to service its debt and to be
successful in its efforts to develop the mineral claims acquired and therefore
continuation of the Company as a going concern is dependent on obtaining
additional working capital and the management of the Company has developed a
strategy, which it believes will accomplish this objective through additional
equity funding, and long term financing, which will enable the Company to
operate for the coming year.
-30-