10-Q 1 cgc10qaug2002.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 2002 --------------- RIPPED CANADA ARTISTS INC. ------------------------- ONTARIO 390 BAY STREET - SUITE 1620 TORONTO, ONTARIO M5H 2Y2 REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 416.368.6161 INDICATE BY CHECK MARK THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED TO BE FILED BY SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES X NO ------- ------- THE NUMBER OF SHARES OUTSTANDING OF REGISTRANT'S COMMON STOCK, PAR VALUE $0.01, ON AUGUST 31, 2002 WAS 6,474,378. -------------------------------------------------------------------------------- Financial Statements of CONDOR GOLD CORP. (FORMERLY: RIPPED CANADA ARTISTS INC.) Nine months ended August 31, 2002 (Unaudited - Prepared by Management)

~~RIPPED~~CONDOR ~~CANADA~~GOLD ~~ARTISTS INC~~CORP. ~~STATEMENTS~~(Formerly: OFRipped ~~LOSS~~Canada ~~AND~~Artists ~~DEFICIT 2nd~~Inc.) ~~Quarter~~Balance ~~Ended~~Sheets ~~May 31st, 2002~~ (Prepared by Management) ------------------------------------------------------------------------------------------------ ~~Unaudited)~~August ~~2002~~31, ~~2001~~November 330, ~~Month~~2002 32001 ~~Month~~(Unaudited) ~~Period~~(Audited) ~~Year~~------------------------------------------------------------------------------------------------ toAssets ~~Date~~Current ~~Period~~assets: ~~Year~~Cash to$ ~~Date~~70 ~~INCOME~~$ ~~Revenue~~3,150 ~~from~~Accounts ~~disk~~receivable ~~sales $ 17~~3,~~847~~012 ~~$ 22~~3,~~569~~012 $ -- $ -- ~~EXPENSES Abandoned mining claims~~ -- -- ---------------------------------------------------------------------------------------- ~~239~~3,~~527~~082 ~~Management~~6,162 ~~fees~~Other ~~15,000~~Organization ~~30,000~~costs 151,~~000~~572 217,~~000~~947 ~~Consulting~~Investment ~~fees~~in --private ~~10,500~~film --production --company ~~Office~~100,000 ~~general~~100,000 Investment in TV and ~~administration~~film ~~673~~productions 2520,~~641~~794 8516,~~202~~886 ~~14,335~~Marketable ~~Occupancy~~securities ~~costs 2~~45,~~250~~000 445,~~500~~000 ~~2,500~~------------------------------------------------------------------------------------------------ 4$ 670,~~750~~448 ~~Legal~~$ ~~and~~675,995 ~~audit~~ -- -- -------------------------------------------------------------------------------------------- ~~2,300~~Liabilities and Shareholder's ~~information~~Equity --Current ~~1,327~~liabilities: ~~Listing~~Accounts ~~fees~~payable &and ~~transfer~~accrued ~~agent~~liabilities ~~fees~~$ --58,799 ~~250~~$ 148,~~353~~299 ~~2,253~~Loans ~~Amortization~~and ~~2,125~~advances ~~4,250~~from ~~300~~related ~~600~~parties 2032,~~048~~101 53171,~~468~~714 27------------------------------------------------------------------------------------------------ 90,~~355~~900 ~~284~~220,~~765~~013 ~~Net~~Shareholders' ~~loss~~equity ~~for~~Share ~~the~~capital ~~period (2~~1,~~201) (30~~456,~~899)~~785 ~~(27~~1,~~355) (284~~285,~~765)~~071 Deficit, ~~Beginning of Period~~ (~~857~~877,~~787~~237) (829,089) ~~(733,731)~~------------------------------------------------------------------------------------------------ ~~(476~~579,~~321)~~548 ~~DEFICIT~~455,982 ~~END~~$ ~~OF PERIOD (859~~670,~~988)~~448 ~~(859,988)~~$ ~~(761~~675,~~086)~~995 ~~(761,086) NET LOSS PER SHARE $ (0.000) $ (0.065) $ (0.006) $ (0.066)~~------------------------------------------------------------------------------------------------

~~STATEMENTS~~CONDOR OFGOLD ~~CASH~~CORP. ~~FLOWS~~(Formerly: ~~2nd~~Ripped Canada Artists Inc.) ~~Quarter~~Statements ~~Ended~~of ~~May~~Operations ~~31st.~~and Deficit Nine months ended August 31, 2002 and 2001 (Unaudited - Prepared by Management ~~- Unaudited~~) 2002 2001 3---------------------------------------------------------------------------------------------------------- ~~Month~~ 3 ~~Month~~Months ~~Period~~ Year to Date ~~Period~~3 Months Year to Date ~~CASH~~---------------------------------------------------------------------------------------------------------- ~~PROVIDED~~Revenue BYRevenue ~~(USED~~from ~~IN):~~disc ~~Operating~~sales ~~Activities~~$ ~~Net~~514 ~~loss for the period~~ $ (223,~~201)~~083 $ ~~(30~~6,~~899)~~150 $ ~~(27~~6,~~355)~~150 ~~$(284,765)~~---------------------------------------------------------------------------------------------------------- ~~Add~~Expenses: ~~(Deduct)~~Abandoned ~~item~~mining ~~not~~claims ~~affecting~~- ~~Amortization~~- 220,~~125~~949 4260,~~250~~476 ~~300~~Management ~~600~~fees ~~Write~~15,000 ~~down~~45,000 of33,000 ~~mining~~45,000 ~~claims~~Consulting ~~and~~fees ~~development expenditures~~ -- ~~-- -- 239~~10,~~527~~500 ~~(76) (26~~12,~~649)~~765 ~~(27~~12,~~055)~~765 ~~(44~~Office,~~638)~~ ~~Changes~~general inand ~~non-cash~~administration ~~operating~~371 ~~working capital balances 4~~3,~~977~~012 ~~10,500~~ (294,~~589~~692) ~~(35~~9,~~289)~~643 Occupancy costs - 4,~~901~~500 ~~(16~~2,~~149)~~250 ~~(56~~7,~~644)~~000 ~~(79,827)~~Professional ~~Financing~~fees ~~Activities~~- ~~Issuance~~- of- ~~common~~2,300 ~~shares~~Shareholder --information --267 61,~~000~~594 ~~28,125~~- ~~Loans~~- Listing and ~~advances~~transfer ~~from~~agents ~~related~~fees ~~parties~~- (250) 171,~~001~~486 83,~~533~~739 9Amortization 2,~~758~~125 ~~(250)~~6,375 5,775 6,375 ---------------------------------------------------------------------------------------------------------- 17,~~001~~763 1471,231 71,533 37347,~~883~~297 ~~Investing~~---------------------------------------------------------------------------------------------------------- ~~Activities~~Income ~~Investment~~(loss) infor ~~film~~the ~~production~~period (417,~~978~~249) (348,~~908~~148) (165,~~913~~383) (2341,~~663~~148) ~~Investment~~Deficit, inbeginning ~~marketable~~of ~~securities~~period -- (3859,~~908~~988) ~~-- Reduction in oil and gas assets~~ (4829,~~978~~089) ~~-- 45,000 45,000~~ (4752,~~978~~086) (476,321) ~~43,087~~---------------------------------------------------------------------------------------------------------- 42Deficit,~~337~~ ~~INCREASE~~end ~~(DECREASE)~~of INperiod ~~CASH~~$ (~~327~~877,237) $ (3877,~~056~~237) ~~976 293 CASH~~(817,469) ~~BEGINNING OF PERIOD 421 3~~(817,~~150~~469) 82---------------------------------------------------------------------------------------------------------- ~~765~~Loss ~~CASH,~~per ~~END~~share OF$ ~~PERIOD~~(0.002) 94$ 94(0.007) ~~1,058~~$ ~~1,058~~(0.016) ~~See~~$ ~~accompanying~~(0.079) ~~Unaudited notes to financial statements 3~~----------------------------------------------------------------------------------------------------------

CONDOR GOLD CORP. (Formerly: Ripped Canada Artists Inc.) Notes to Financial Statements Nine months ended August 31, 2002 and 2001 (Unaudited - Prepared by Management) -------------------------------------------------------------------------------- 1. Accounting policies: The enclosed unaudited financial statements for the nine months ended August 31, 2002 and 2001 conform with generally accepted accounting principals in Canada for interim financial reporting. However, the unaudited financial statements for the nine months ended August 31, 2002 and 2001 do not conform in all respects to the disclosure and information that is required for annual financial statements. For further information, see the Corporation's November 30, 2001 audited financial statements. The accounting policies and methods followed in preparing these financial statements are those used by Condor Gold Corp. (the "Corporation") as set out in the November 30, 2001 audited financial statements, except for the following: Stock Option Compensation The Company has adopted section 3870 of the CICA Handbook from the Canadian Institute of Chartered Accountants for stock-based compensation and other stock-based payments. This section required the Company to provide pro forma earnings and earnings per share, as if the fair market based accounting had been used to account for stock-based compensation costs, if the fair market based accounting method was not presented in the statement of operations In the opinion of management, all adjustments considered necessary for fair presentation have been included in these financial statements. Operating results for the six months ended August 31, 2002 are not indicative of the results that may be expected for the full year ended November 30, 2002. 2. Share capital: (a) Authorized: Unlimited number of common shares (b) Issued: -------------------------------------------------------------------- Number Amount of shares -------------------------------------------------------------------- Balance, November 30, 2001 4,757,238 $ 1,285,071 -------------------------------------------------------------------- Issued on settlement of debts 1,717,140 171,714 Balance, August 31, 2002 6,474,378 $ 1,456,785 -------------------------------------------------------------------- CONDOR GOLD CORP. (Formerly: Ripped Canada Artists Inc.) Notes to Financial Statements Nine months ended August 31, 2002 and 2001 (Unaudited - Prepared by Management) -------------------------------------------------------------------------------- 2. Share capital (continued): (c) Stock options: At August 31, 2002 there were employee stock options outstanding to purchase 65,000 common shares at prices between $0.25 and $0.35 per share until March 27, 2006. 3. Income taxes: At August 31, 2002 the Corporation's income tax expense was nil. No benefit related to available non-capital loss carry forwards has been recognized in these financial statements. The future income tax assets or liabilities that may result from differences in tax values and accounting values have not been reflected in these financial statements. 5. Related party transactions: Related party transactions not disclosed elsewhere in these financial statements are as follows: (a) During the period ended August 31, 2002 the Company paid $ 45,000 (2001: $ 36,000) for management, consulting, rent and administrative services to companies related by virtue of common directors. (b) The loans and advances from related parties are interest free and have no fixed terms of repayment. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned there unto duly authorized. Condor Gold Corp. /s/ Alexander Stewart ------------------------------------ Name: Alexander Stewart Title: Chairman and C.E.O /s/ Stephen Stewart ------------------------------------ Name: Stephen Stewart Title: C.F.O and V.P. Dated: October 15, 2002

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