UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended: April 30, 2018
[ ] | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from_______to_______
Commission file number 000-52055
RED METAL RESOURCES LTD.
(Exact name of small business issuer as specified in its charter)
Nevada (State or other jurisdiction of incorporation or organization) | 20-2138504 (I.R.S. Employer Identification No.) |
278 Bay Street, Suite 102, Thunder Bay, ON P7B 1R8
(Address of principal executive offices) (Zip Code)
(807) 345-7384
(Issuer's telephone number)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [ ] No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes [ ] No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.
Large accelerated filer [ ] |
| Accelerated filer [ ] |
Non-accelerated filer [ ] |
| Smaller Reporting Company [X] |
|
| Emerging Growth Company [ ] |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). [ ] Yes [X] No
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of June 19, 2018, the number of shares of the registrant's common stock outstanding was 37,504,588.
Table of Contents
PART I - FINANCIAL INFORMATION | F-1 |
Item 1. Financial Statements. | F-1 |
Consolidated Balance Sheets | F-1 |
Consolidated Statements of Operations | F-2 |
Consolidated Statement of Stockholders' Deficit | F-3 |
Consolidated Statements of Cash Flows | F-4 |
Notes to the Consolidated Financial Statements | F-5 |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. | 1 |
Item 3. Quantitative and Qualitative Disclosures about Market Risk. | 10 |
Item 4. Controls and Procedures. | 11 |
PART II - OTHER INFORMATION | 11 |
Item 1. Legal Proceedings. | 11 |
Item 1a. Risk Factors. | 11 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. | 11 |
Item 3. Defaults upon Senior Securities. | 11 |
Item 4. Mine Safety Disclosures. | 11 |
Item 5. Other Information. | 11 |
Item 6. Exhibits. | 12 |
SIGNATURES | 13 |
ii
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
RED METAL RESOURCES LTD.
CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN US DOLLARS)
| April 30, 2018 |
| January 31, 2018 | ||
| (Unaudited) |
|
| ||
|
|
|
| ||
ASSETS |
|
|
| ||
|
|
|
| ||
Current assets |
|
|
| ||
Cash | $ | 148,702 |
| $ | 2,392 |
Prepaids and other receivables |
| 7,812 |
|
| 7,034 |
Total current assets |
| 156,514 |
|
| 9,426 |
|
|
|
|
|
|
Equipment, net |
| 1,818 |
|
| 1,966 |
Unproved mineral properties |
| 714,772 |
|
| 694,616 |
Total assets | $ | 873,104 |
| $ | 706,008 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable | $ | 391,005 |
| $ | 387,961 |
Accrued liabilities |
| 185,208 |
|
| 179,239 |
Due to related parties |
| 1,196,305 |
|
| 1,196,798 |
Notes payable |
| 35,043 |
|
| 34,384 |
Notes payable to related parties |
| 1,229,511 |
|
| 1,218,375 |
Total liabilities |
| 3,037,072 |
|
| 3,016,757 |
|
|
|
|
|
|
Stockholders' deficit |
|
|
|
|
|
Common stock, $0.001 par value, authorized 500,000,000, 37,504,588 and 35,004,588 issued and outstanding at April 30, 2018 and January 31, 2018, respectively |
| 37,504 |
|
| 35,004 |
Additional paid-in capital |
| 6,988,833 |
|
| 6,803,833 |
Deficit |
| (9,223,092) |
|
| (9,129,238) |
Accumulated other comprehensive income (loss) |
| 32,787 |
|
| (20,348) |
Total stockholders' deficit |
| (2,163,968) |
|
| (2,310,749) |
Total liabilities and stockholders' deficit | $ | 873,104 |
| $ | 706,008 |
The accompanying notes are an integral part of these unaudited interim consolidated financial statements.
F-1
RED METAL RESOURCES LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(EXPRESSED IN US DOLLARS)
(UNAUDITED)
|
| For the Three Months Ended April 30, | ||||
|
| 2018 |
| 2017 | ||
|
|
|
|
| ||
Operating expenses: |
|
|
|
| ||
Amortization |
| $ | 145 |
| $ | 182 |
Consulting fees |
|
| 15,000 |
|
| 15,000 |
General and administrative |
|
| 11,757 |
|
| 16,299 |
Mineral exploration costs |
|
| 10,530 |
|
| 444 |
Professional fees |
|
| 7,619 |
|
| 1,025 |
Rent |
|
| 2,749 |
|
| 2,525 |
Regulatory |
|
| 2,652 |
|
| 1,127 |
Salaries, wages and benefits |
|
| 19,109 |
|
| 17,573 |
|
|
| (69,561) |
|
| (54,175) |
|
|
|
|
|
|
|
Other items: |
|
|
|
|
|
|
Foreign exchange gain |
|
| 3,641 |
|
| 4 |
Interest on current debt |
|
| (27,934) |
|
| (22,582) |