10-Q 1 g3723a.txt QTRLY REPORT FOR THE QTR ENDED 10-31-09 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2009 or [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number 333-152754 QUARTZ VENTURES INC. (Exact name of registrant as specified in its charter) Nevada 71-1029846 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 29115 North 144th Street, Scottsdale, AZ 85262 (Address of principal executive offices) (Zip Code) 480-229-3668 (Registrant's telephone number, including area code) N/A (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether 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 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 Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (ss.229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [ ] YES [ ] NO Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X] (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act [X] YES [ ] NO APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. [ ] YES [ ] NO APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 5,440,000 common shares issued and outstanding as of December 21, 2009 PART 1 - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Our unaudited interim financial statements for the six month period ended October 31, 2009 form part of this quarterly report. They are stated in United States Dollars (US$) and are prepared in accordance with United States generally accepted accounting principles. 2 QUARTZ VENTURES, INC. (AN EXPLORATION STAGE COMPANY) FINANCIAL STATEMENTS OCTOBER 31, 2009 (UNAUDITED) Page Number ----------- PART I FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) Condensed Balance Sheets - October 31, 2009 (Unaudited) and April 30, 2009 4 Unaudited Condensed Statements of Losses - Three and Six Months Ended October 31, 2009 and October 31, 2008 and from the period July 22, 2005 (date of inception) to October 31, 2009 5 Unaudited Condensed Statements of Stockholders Deficit for the period from July 22, 2005 (date of inception) to October 31, 2009 6 Unaudited Condensed Statements of Cash Flows - Six Months Ended October 31, 2009, and October 31, 2008 and from the period July 22, 2005 (date of inception) to October 31, 2009 7 Notes to Unaudited Condensed Financial Statements 8 3 QUARTZ VENTURES, INC. (An Exploration Stage Company) Condensed Balance Sheet (Unaudited) --------------------------------------------------------------------------------

~~January~~October 31, April 30, 2009 ~~2008~~2009 -------- -------- (Unaudited) ASSETS CURRENT ASSETS Cash $ 35,~~017~~306 $ ~~18,187~~-- -------- -------- TOTAL ASSETS $ 35,~~017~~306 $ ~~18,187~~-- ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES ~~Loan~~Bank ~~from~~overdraft ~~related~~$ ~~party~~-- $ 172,695 Loans payable 33,000 $23,500 -- -------- -------- TOTAL CURRENT LIABILITIES 1733,000 26,195 -------- -------- STOCKHOLDERS' ~~EQUITY~~DEFICIENCY Capital stock Authorized: 75,000,000 common shares with a par value of $0.001 Issued and outstanding: 5,440,000 common shares as of ~~January~~Oct 31, 2009 and April 30, ~~2008~~2009 5,440 5,440 Additional paid-in-capital 2749,560 27,560 Deficit accumulated during the exploration stage (4682,~~983~~694) (1459,~~813~~195) -------- -------- TOTAL STOCKHOLDERS' DEFICIENCY (~~DEFICIT~~27,694) ~~EQUITY~~ (1326,~~983~~195) ~~18,187~~ -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' ~~(DEFICIT)~~DEFICIENCY ~~EQUITY~~ $ 35,~~017~~306 $ ~~18,187~~-- ======== ========

The accompanying notes are an integral part of these unaudited condensed financial statements 4 QUARTZ VENTURES, INC. (An Exploration Stage Company) Condensed Statements of Losses (Unaudited) --------------------------------------------------------------------------------

Cumulative from July 22, 2005 ~~Nine~~Six Months ~~Nine~~Six Months Three Months Three Months (Date of Ended Ended Ended Ended Inception) to ~~January~~October 31, ~~January~~October 31, ~~January~~October 31, ~~January~~October 31, ~~January~~October 31, 2009 2008 2009 2008 2009 ---------- ---------- ---------- ---------- ---------- COSTS AND EXPENSES: Bank charges and interest $ ~~235~~150 $ 82212 $ 2375 $ 19103 $ ~~487~~695 Filing and transfer agent fees 5160 4,~~130~~268 --160 ~~862~~3,028 -- 5,~~130~~500 Mineral property 42,~~501~~736 --3,589 ~~912~~1,824 --270 1216,~~501~~149 Office expenses 503 104 --425 -- --1,123 ~~620~~ Professional fees 2219,~~200~~950 618,~~045~~950 316,~~250~~500 ~~250~~9,000 2859,~~245~~227 ---------- ---------- ---------- ---------- ---------- Total operating expenses 3223,~~170~~499 627,~~127~~123 518,~~047~~984 ~~269~~12,401 4682,~~983~~694 ---------- ---------- ---------- ---------- ---------- Net loss from operations (3223,~~170~~499) (627,~~127~~123) (518,~~047~~984) (~~269~~12,401) (4682,~~983~~694) ---------- ---------- ---------- ---------- ---------- Net loss before provision for income taxes (3223,~~170~~499) (627,~~127~~123) (518,~~047~~984) (~~269~~12,401) (4682,~~983~~694) Income taxes (benefit) -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net loss $ (3223,~~170~~499) $ (627,~~127~~123) $ (518,~~047~~984) $ (~~269~~12,401) $ (4682,~~983~~694) ========== ========== ========== ========== ========== LOSS PER SHARE - BASIC AND DILUTED $ (0.00) $ (0.00) $ (0.00) $ (0.00) ~~========== ========== ========== ==========~~ WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING (BASIC AND FULLY DILUTED) 5,440,000 5,440,000 5,440,000 5,440,000 ========== ========== ========== ==========

The accompanying notes are an integral part of these unaudited condensed financial statements 5 QUARTZ VENTURES, INC. (An Exploration Stage Company) Condensed Statement of Stockholders' Equity From July 22, 2005 (Date of Inception) to October 31, 2009 (Unaudited) --------------------------------------------------------------------------------

Deficit Accumulated Number of Additional During the Common Par Paid-in Development Shares Value Capital Stage Total ------ ----- ------- ----- ----- August 3, 2005 Subscribed for cash at $0.001 3,000,000 $ 3,000 $ -- $ -- $ 3,000 August 31, 2005 Subscribed for cash at $0.01 400,000 400 3,600 -- 4,000 September 20, 2005 Subscribed for cash at $0.01 700,000 700 6,300 -- 7,000 October 11, 2005 Subscribed for cash at $0.01 600,000 600 5,400 -- 6,000 November 30, 2005 Subscribed for cash at $0.01 600,000 600 5,400 -- 6,000 December 15, 2005 Subscribed for cash at $0.05 140,000 140 6,860 -- 7,000 Net Loss -- -- -- (568) (568) ---------- ------- -------- --------- -------- Balance, April 30, 2006 5,440,000 5,440 27,560 (568) 32,432 Net loss -- -- -- (8,100) (8,100) ---------- ------- -------- --------- -------- Balance, April 30, 2007 5,440,000 5,440 27,560 (8,668) 24,332 Net loss -- -- -- (6,145) (6,145) ---------- ------- -------- --------- -------- Balance, April 30, 2008 5,440,000 5,440 27,560 (14,813) 18,187 Net loss -- -- -- (3244,~~170~~382) (3244,~~170~~382) ---------- ------- -------- --------- -------- Balance, ~~January~~April 30, 2009 5,440,000 5,440 27,560 (59,195) (26,195) Cancellation of shares (3,000,000) (3,000) -- -- (3,000) Sale of Shares 3,000,000 3,000 22,000 -- 25,000 Net loss -- -- -- (23,499) (23,499) ---------- ------- -------- --------- -------- Balance, October 31, 2009 5,440,000 $ 5,440 $ 2749,560 $ (4682,~~983~~694) $(1327,~~983~~694) ========== ======= ======== ========= ========

The accompanying notes are an integral part of these unaudited condensed financial statements 6 QUARTZ VENTURES, INC. (An Exploration Stage Company) Condensed Statements of Cash Flows (Unaudited) --------------------------------------------------------------------------------

Cumulative from July 22, 2005 ~~Nine~~Six Months ~~Nine~~Six Months (Date of Ended Ended Inception) to ~~January~~October 31, ~~January~~October 31, ~~January~~October 31, 2009 2008 2009 -------- -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES Net loss $(3223,~~170~~499) $ (627,~~127~~123) $(4682,~~983~~694) -------- -------- -------- Net cash used in operations (3223,~~170~~499) (627,~~127~~123) (4682,~~983~~694) -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES ~~Loan~~Proceed from related party 17loan 9,500 12,000 ~~-- 17~~33,000 Shares subscribed for cash, --net 22,000 -- 3355,000 -------- -------- -------- Net cash provided by financing activities 1731,500 12,000 ~~-- 50~~88,000 -------- -------- -------- Net increase (decrease) ~~increase~~ in cash and equivalents ~~(15~~8,~~170)~~001 (615,~~127~~123) 35,~~017~~306 ~~Cash~~(Bank ~~and~~overdraft)/cash ~~equivalents~~ at the beginning of the period (2,695) 18,187 ~~24,332~~ -- -------- -------- -------- Cash ~~and equivalents~~ at the end of the period $ 35,~~017~~306 $ 183,~~205~~064 $ 35,~~017~~306 ======== ======== ======== SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for: Interest $ -- $ -- $ -- ======== ======== ======== Taxes $ -- $ -- $ -- ======== ======== ========

The accompanying notes are an integral part of these unaudited condensed financial statements 7 QUARTZ VENTURES, INC. (An Exploration Stage Company) Notes To The Condensed Financial Statements October 31, 2009 (Unaudited) -------------------------------------------------------------------------------- 1. BUSINESS AND BASIS OF PRESENTATION Quartz Ventures, Inc. ("the Company") was incorporated on July 22, 2005 under the laws of State of Nevada, U.S. with an authorized capital of 75,000,000 common shares with a par value of $0.001. The Company's has a April 30, year end. The Company is in the exploration stage of its resource business. The Company commenced operations in 2006 by issuing shares and acquiring a mineral property located in the Province of British Columbia, Canada. The Company has not yet determined whether this property contains reserves that are economically recoverable. The recoverability of costs incurred for acquisition and exploration of the property will be dependent upon the discovery of economically recoverable reserves, confirmation of the Company's interest in the underlying property, the ability of the Company to obtain necessary financing to satisfy the expenditure requirements under the property agreement and to complete the development of the property and upon future profitable production or proceeds for the sale thereof. These financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has incurred losses since inception resulting in an accumulated deficit of $82,694 as at October 31, 2009 and further losses are anticipated in the development of its business raising substantial doubt about the Company's ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand and loans from directors and or private placement of common stock. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. Cash and Cash Equivalents The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. Exploration Stage Company The Company complies with the FASB ACS 915, its characterization of the Company as an exploration stage enterprise Mineral Interests Mineral property acquisition, exploration and development costs are expensed as incurred until such time as economic reserves are quantified. To date the Company has not established any proven or probable reserves on its mineral properties. The Company has adopted the provisions of FASB ACS 410-20"Accounting for Asset Retirement Obligations" which establishes standards for the initial measurement and subsequent accounting for obligations associated with the sale, abandonment, or other disposal of long-lived tangible assets arising from the acquisition, construction or development and for normal operations of such assets. As at October 31, 2009, any potential costs relating to the retirement of the Company's mineral property interest has not yet been determined. 8 QUARTZ VENTURES, INC. (An Exploration Stage Company) Notes To The Condensed Financial Statements October 31, 2009 (Unaudited) -------------------------------------------------------------------------------- 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. Foreign Currency Translation The financial statements are presented in United States dollars. In accordance with ASC 830-10, "Foreign Currency Translation", foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non monetary assets and liabilities are translated at the exchange rates prevailing on the transaction date. Revenue and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations. Fair Value of Financial Instruments The carrying value of cash and accounts payable and accrued liabilities approximates their fair value because of the short maturity of these instruments. Unless otherwise noted, it is management's opinion the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. Environmental Costs Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or the Company's commitments to plan of action based on the then known facts. Income Taxes The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. At October 31, 2009, full deferred tax asset valuation allowance has been provided and no deferred tax asset has been recorded. Basic and Diluted Loss Per Share The Company computes loss per share in accordance with FASB ASC 260, "Earnings per Share" which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. 9 QUARTZ VENTURES, INC. (An Exploration Stage Company) Notes To The Condensed Financial Statements October 31, 2009 (Unaudited) -------------------------------------------------------------------------------- 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Research and Development The Company accounts for research and development costs in accordance with the FASB ACS 730, "Accounting for Research and Development Costs". Under ACS 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred expenditures $0 for the period from July 22, 2005 (date of inception) to October 31, 2009. Revenue Recognition The Company will recognize revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition ("ASC 605-10") which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectibility is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectibility of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. The Company will defer any revenue for which the product has not been delivered or is subject to refund until such time that the Company and the customer jointly determine that the product has been delivered or no refund will be required. ASC 605-10 incorporates Accounting Standards Codification subtopic 605-25, Multiple-Element Arraignments ("ASC 605-25"). ASC 605-25 addresses accounting for arrangements that may involve the delivery or performance of multiple products, services and/or rights to use assets. The effect of implementing ASC 605-25 on the Company's financial position and results of operations was not significant. From the date of inception through October 31, 2009, the Company has not generated any revenue to date. Advertising The Company follows the policy of charging the costs of advertising to expenses incurred. The Company incurred $0 in advertising costs during the period ended October 31, 2009 and 2008 Liquidity The Company has incurred net losses of $ 82,694 from its inception on July 22, 2005 through October 31, 2009. As of October 31, 2009, the Company's has excess of current liabilities over its current assets by $27,694. 10 QUARTZ VENTURES, INC. (An Exploration Stage Company) Notes To The Condensed Financial Statements October 31, 2009 (Unaudited) -------------------------------------------------------------------------------- 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recently Adopted Accounting Standards Effective September 15, 2009, the Company adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 105-10, "Generally Accepted Accounting Principles." ASC 105-10 establishes the FASB Accounting Standards Codification(TM) ("Codification") as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP for SEC registrants. All guidance contained in the Codification carries an equal level of authority. The Codification supersedes all existing non-SEC accounting and reporting standards. The FASB will now issue new standards in the form of Accounting Standards Updates ("ASUs"). The FASB will not consider ASUs as authoritative in their own right. ASUs will serve only to update the Codification, provide background information about the guidance and provide the bases for conclusions on the changes in the Codification. References made to FASB guidance have been updated for the Codification throughout this document. Effective June 30, 2009, the Company adopted guidance issued by the FASB and included in ASC 855-10, "Subsequent Events," which establishes general standards of accounting for and disclosures of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events. Effective April 1, 2009, the Company adopted guidance issued by the FASB that requires disclosure about the fair value of financial instruments for interim financial statements of publicly traded companies, which is included in the Codification in ASC 825-10-65, "Financial Instruments." The adoption of ASC 825-10-65 did not have an impact on our consolidated results of operations or financial condition. Our adoption of the standard had no impact on our financial results. Effective January 1, 2009, the Company adopted guidance issued by the FASB that requires enhanced disclosures regarding derivative instruments and hedging activities, enabling a better understanding of their effects on an entity's financial position, financial performance and cash flows. The guidance is included in the Codification in ASC 815-10, "Derivatives and Hedging." The adoption of the standard had no impact on our financial results. Effective January 1, 2008, the Company adopted ASC 820-10, "Fair Value Measurements and Disclosures," with respect to recurring financial assets and liabilities. The Company adopted ASC 820-10 on January 1, 2009, as it relates to nonrecurring fair value measurement requirements for nonfinancial assets and liabilities. ASC 820-10 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The adoption of the standard had no impact on our financial results. 11 QUARTZ VENTURES, INC. (An Exploration Stage Company) Notes To The Condensed Financial Statements October 31, 2009 (Unaudited) -------------------------------------------------------------------------------- 3. MINERAL INTERESTS On January 15, 2007, the Company entered into a purchase and sale agreement to acquire a 100% interest in two mineral claims located in the Alberni Mining Division, BC for total consideration of $8,000. The mineral interest is held in trust for the Company by the vendor of the property. Upon request from the Company the title will be recorded in the name of the Company with the appropriate mining recorder. The property is good standing as at October 31, 2009. 4. COMMON STOCK The total number of common shares authorized that may be issued by the Company is 75,000,000 shares with a par value of one tenth of one cent ($0.001) per share and no other class of shares is authorized. As of October 31, 2009 and April 30, 2009 the company has issued and outstanding 5,440,000 shares of common stock. During the year ended April 30, 2006, the Company issued 5,440,000 shares of common stock for total cash proceeds of $33,000. Effective on June 4, 2009, there was a change in control of the Company. In accordance with a verbal arrangement, one record holder of an aggregate of 3,000,000 shares of restricted common stock (55.1% of the total issued and outstanding), returned to the Company the 3,000,000 shares of common stock. The share certificate was cancelled and the 3,000,000 shares of common stock were returned to treasury which later was acquired in consideration of $25,000.00. At October 31, 2009, there were no outstanding stock options or warrants. 5. LOANS PAYABLE As at October 31, 2009, the Company has received loans of $33,000 from related party, bearing no interest and with no specific terms of repayments. 6. INCOME TAXES As of October 31, 2009, the Company had net operating loss carry forwards of approximately $83,000 that may be available to reduce future years' taxable income through 2027. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. Components of deferred tax assets as of October 31, 2009 are as follows: Non current: Net operating loss carryforward $ 21,580 Valuation allowance (21,580) -------- Net deferred tax asset $ -- ======== The Company has adopted Accounting Standards Codification subtopic 740-10, Income Taxes ("ASC 740-10") which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statement or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Temporary differences between taxable income reported for financial reporting purposes and income tax purposes are insignificant. 12 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FORWARD-LOOKING STATEMENTS This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results. Our unaudited financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report, particularly in the section entitled "Risk Factors". In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars. All references to "common shares" refer to the common shares in our capital stock. As used in this quarterly report and unless otherwise indicated, the terms "we", "us", "our" and "Quartz" mean Quartz Ventures Inc. CORPORATE HISTORY We were incorporated in the State of Nevada, USA, on July 22, 2005. We are an exploration stage company engaged in the acquisition, and exploration of mineral properties with a view to exploiting any mineral deposits we discover that demonstrate economic feasibility. On the date of our incorporation, July 22, 2005, Mr. Glenn Ennis was our sole officer and director. On July 15, 2008, Mr. Ennis resigned as president, chief executive officer, chief financial officer, treasurer and secretary, but continued to remain a member of the board of directors. As a result of Mr. Ennis' resignation, we appointed Mr. Richard Goodhart as president, chief executive officer, chief financial officer, treasurer, secretary and a member of our board of directors. On January 15, 2007, we entered into a purchase and sale agreement with David Heyman to acquire a100% interest in two mineral claims located in the Alberni Mining Division, British Columbia, Canada for total consideration of $8,000.00. As of the date of this Quarterly Report, the claims are in good standing and held in trust for us by the vendor of the property, David Heyman. Upon our request, Mr. Heyman will have the claims recorded in our name with the appropriate mining recorder. We had paid $5,000 to a geologist for analysis of the property underlying our claims. On September 25, 2008, we appointed Mr. Fred DaSilva to our board of directors. Effective January 20, 2009, Mr. Richard Goodhard resigned as our president, chief executive officer, chief financial officer, treasurer, secretary and a director of our company. Also on January 20, 2009, Mr. Glenn Ennis resigned as a director of our company. As a result of the resignations of Mr. Goodhard and Mr. 13 Ennis, we appointed Mr. Fred DaSilva as our president, chief executive officer, chief financial officer, treasurer and secretary. We also appointed Mr. Rick Shykora as a director of our company. On June 4, 2009, certain shareholders of our company, pursuant to a written consent resolution of the shareholders, removed Mr. Rick Shykora as a director of our company and Mr. DeSilva as our president, chief executive officer, chief financial officer, treasurer, secretary and as a director of our company. As a result of the removal of Mr. DeSilva and Mr. Shykora on June 4, 2009, we appointed Mr. Georgios Polyhronopoulos as our president, chief executive officer, chief financial officer, treasurer, secretary and a director of our company. As of the date of this Quarterly report, Mr. Polyhronopoulos is our sole director and officer. Effective June 4, 2009, there was a change in control of our company. In accordance with a verbal arrangement between our company and Mr. Glenn Ennis, a former director and officer of our company, Mr. Ennis returned an aggregate of 3,000,000 restricted shares of our common stock for cancellation. Also effective June 4, 2009, Mr. Polyhronopoulos, our sole director and officer, acquired an aggregate of 3,000,000 restricted shares of our common stock in consideration of $25,000.00. The shares were issued to one (1) U.S. person, as that term is defined in Regulation S of the Securities Act of 1933, relying on Section 4(2) of the Securities Act and/or Rule 506 of Regulation D, promulgated under the United States Securities Act of 1933, as amended. OUR CURRENT BUSINESS We are an exploration stage mining company engaged in the exploration of minerals on a property located in British Columbia, Canada. Our current operational focus is to conduct exploration activities on our property in British Columbia. ALBERNI MINING CLAIM GEOLOGICAL REPORT We had obtained a geological report on the property underlying our Claim. The geology report dated February 19, 2007 recommended renewed work in the project area with the objective being to delineate viable targets for diamond drilling. The first priority should be a comprehensive review of reports and maps pertaining to all past exploration work, including surface surveys, drilling, trenching and underground exploration followed by a field examination of the subject area. The review will include preparation of compilations of all available maps and sections pertaining to the property adjusted to common scales to permit accurate comparisons of data from different projects. The geophysical data, in particular the chargeability surveys previously carried out, should be professionally re-evaluated and an effort should be made to re-locate the survey grids. Their positions along with those of all known mineral occurrences, trenches, drill holes, adits and geographical features should be established with the aid of GPS instruments. Completion of this phase is expected to identify gaps in data and areas where additional effort is needed and to permit design of an appropriate program of additional work. The nature and extent of any follow-up work will be contingent on the results of the review but it is recommended that provision be made for a preliminary program of geological mapping, fill-in soil sampling and possibly trenching particularly in the areas of the chargeability anomalies. Consideration should be given to the application of mobile metal ion geochemistry as an approach to overcoming apparent difficulties with heavy overburden in parts of the property. An estimate of the cost of the proposed initial review and field examination is $13,000. Provision of an additional budget of $71,000 is recommended for the contingent exploration work that would be required to complete the follow-up surveys. PROPERTY DESCRIPTION The property consists of two contiguous claims listed in the table below: 14 CLAIM NUMBER AND NAME AREA (IN HECTARES) EXPIRY DATE --------------------- ------------------ ----------- 548275 - Horse's Wither 442.845 December 30, 2008 549813-Fetlock 42.176 January 18, 2009 TOTAL AREA: 485.021 -- EXPLORATION PROGRAM We will engage a geologist to provide a further analysis of the property and potential for minerals. Our initial program should subsequently be to prospect the property locating all signs of unreported previous work and record the results by global positioning system (GPS) coordinates. After all previous work areas have been accurately located, a geologist can rapidly produce a detailed geological map of the property delineating the favourable areas. Samples should be carefully collected from all exposure of the formation and analyses performed. The requirement to raise further funding for exploration beyond that obtained for the next six month period continues to depend on the outcome of geological and engineering testing occurring over this interval. If results provide the basis to continue development and geological studies indicate high probabilities of sufficient production quantities, we will attempt to raise capital to further our mining program, build production infrastructure, and raise additional capital for further land acquisitions. This includes the following activity: * Review all available information and studies. * Digitize all available factual information. * Complete an NI 43-101 Compliant Report with a qualified geologist familiar with mineralization. * Determine feasibility and amenability of extracting the minerals via an ISL operation. * Create investor communications materials, corporate identity. * Raise funding for mineral development. * Target further leases for exploration potential and obtain further funding to acquire new development targets. For the three month period ended October 31, 2009, we incurred $0 in exploration costs. CASH REQUIREMENTS There is limited historical financial information about us upon which to base an evaluation of our performance. We are an exploration stage corporation and have not generated any revenues from activities. We cannot guarantee we will be successful in our business activities. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources, possible delays in the exploration of our properties, and possible cost overruns due to price and cost increases in services. Over the next twelve months we intend to use any funds that we may have available to fund our operations and conduct further analysis of the property and potential for minerals. We expect to review other potential exploration projects from time to time as they are presented to us. Not accounting for our working capital deficit of $27,694, we require additional funds of approximately $250,000 at a minimum to proceed with our plan of operation over the next twelve months, exclusive of any acquisition or exploration costs. As we do not have the funds necessary to cover our projected operating expenses for the next twelve month period, we will be required to raise additional funds through the issuance of equity securities, through loans or through debt financing. There can be no assurance that we will be successful 15 in raising the required capital or that actual cash requirements will not exceed our estimates. We intend to fulfill any additional cash requirement through the sale of our equity securities. Our auditors have issued a going concern opinion for our year ended April 30, 2009. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have not generated any revenues and no revenues are anticipated until we begin removing and selling minerals. As we had cash in the amount of $5,306 and a working capital deficit in the amount of $27,694 as of October 31, 2009, we do not have sufficient working capital to enable us to carry out our stated plan of operation for the next twelve months. We plan to complete debt financings and/or private placement sales of our common stock in order to raise the funds necessary to pursue our plan of operation and to fund our working capital deficit in order to enable us to pay our accounts payable and accrued liabilities. We currently do not have any arrangements in place for the completion of any debt financings or private placement financings and there is no assurance that we will be successful in completing any debt financing or private placement financing. Our success or failure will be determined by what we find under the ground. At the present time, we have not made any arrangements to raise additional cash. If we need additional cash and can't raise it, we will either have to suspend activities until we do raise the cash, or cease activities entirely. Other than as described in this paragraph, we have no other financing plans. Over the next twelve months we intend to use any funds that we may have available funds to fund our operations and conduct exploration on our Alberni Mining Claim as follows: ESTIMATED NET EXPENDITURES DURING THE NEXT TWELVE MONTHS General, Administrative $ 15,000 Exploration Expenses 175,000 Professional fees 25,000 Additional Working Capital 35,000 -------- TOTAL $250,000 ======== The continuation of our business is dependent upon obtaining further financing, a successful program of exploration and/or development, and, finally, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. There are no assurances that we will be able to obtain further funds required for our continued operations. As noted herein, we are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will be unable to conduct our operations as planned, and we will not be able to meet our other obligations as they become due. In such event, we will be forced to scale down or perhaps even cease our operations. PURCHASE OF SIGNIFICANT EQUIPMENT We do not intend to purchase mineral ore processing equipment over the twelve months ending October 31, 2010. CORPORATE OFFICES We do not own any real property. Our executive office is located at 29115 North 144th Street, Scottsdale, AZ 85262. We are provided with 250 square feet for our offices at no cost. We believe that our office arrangements provide adequate space for our foreseeable future needs. 16 EMPLOYEES Currently our only employee is our sole director and officer. We do not expect any material changes in the number of employees over the next 12 month period. We do and will continue to outsource contract employment as needed. CRITICAL ACCOUNTING POLICIES Our financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles used in the United States. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management's application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financials. EXPLORATION STAGE COMPANY Our company complies with the FASB ACS 915, our characterization of our company as an exploration stage enterprise. MINERAL INTERESTS Mineral property acquisition, exploration and development costs are expensed as incurred until such time as economic reserves are quantified. To date our company has not established any proven or probable reserves on our mineral properties. Our company has adopted the provisions of FASB ACS 410-20"Accounting for Asset Retirement Obligations" which establishes standards for the initial measurement and subsequent accounting for obligations associated with the sale, abandonment, or other disposal of long-lived tangible assets arising from the acquisition, construction or development and for normal operations of such assets. As at October 31, 2009, any potential costs relating to the retirement of our company's mineral property interest has not yet been determined. USE OF ESTIMATES AND ASSUMPTIONS The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. FOREIGN CURRENCY TRANSLATION The financial statements are presented in United States dollars. In accordance with ASC 830-10, "Foreign Currency Translation", foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non monetary assets and liabilities are translated at the exchange rates prevailing on the transaction date. Revenue and expenses are translated at average rates of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operations. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying value of cash and accounts payable and accrued liabilities approximates their fair value because of the short maturity of these instruments. Unless otherwise noted, it is management's opinion our company is not exposed to significant interest, currency or credit risks arising from these financial instruments. ENVIRONMENTAL COSTS Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations, and which do not contribute to current or future 17 revenue generation, are expensed. Liabilities are recorded when environmental assessments and/or remedial efforts are probable, and the cost can be reasonably estimated. Generally, the timing of these accruals coincides with the earlier of completion of a feasibility study or our company's commitments to plan of action based on the then known facts. INCOME TAXES Our company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. At October 31, 2009, full deferred tax asset valuation allowance has been provided and no deferred tax asset has been recorded. BASIC AND DILUTED LOSS PER SHARE Our company computes loss per share in accordance with FASB ASC 260, "Earnings per Share" which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. Our company has no potential dilutive instruments and accordingly basic loss and diluted loss per share are equal. RESEARCH AND DEVELOPMENT Our company accounts for research and development costs in accordance with the FASB ACS 730, "Accounting for Research and Development Costs". Under ACS 730, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. Our company incurred expenditures $0 for the period from July 22, 2005 (date of inception) to October 31, 2009. REVENUE RECOGNITION Our company will recognize revenue in accordance with Accounting Standards Codification subtopic 605-10, Revenue Recognition ("ASC 605-10") which requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectibility is reasonably assured. Determination of criteria (3) and (4) are based on management's judgments regarding the fixed nature of the selling prices of the products delivered and the collectibility of those amounts. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related sales are recorded. Our company will defer any revenue for which the product has not been delivered or is subject to refund until such time that our company and the customer jointly determine that the product has been delivered or no refund will be required. ASC 605-10 incorporates Accounting Standards Codification subtopic 605-25, Multiple-Element Arraignments ("ASC 605-25"). ASC 605-25 addresses accounting for arrangements that may involve the delivery or performance of multiple products, services and/or rights to use assets. The effect of implementing 605-25 on our company's financial position and results of operations was not significant. 18 From the date of inception through October 31, 2009, our company has not generated any revenue to date. ADVERTISING Our company follows the policy of charging the costs of advertising to expenses incurred. Our company incurred $0 in advertising costs during the period ended October 31, 2009 and 2008 LIQUIDITY Our company has incurred net losses of $ 82,694 from our inception on July 22, 2005 through October 31, 2009. As of October 31, 2009, our company has excess of current liabilities over our current assets by $ 27,694. GOING CONCERN We have suffered recurring losses from operations. The continuation of our company as a going concern is dependent upon our company attaining and maintaining profitable operations and raising additional capital. The financial statements do not include any adjustment relating to the recovery and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should our company discontinue operations. Due to the uncertainty of our ability to meet our current operating expenses and the capital expenses noted above, in The continuation of our business is dependent upon us raising additional financial support. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments. RESULTS OF OPERATIONS THREE MONTHS ENDED OCTOBER 31, 2009 AND 2008 The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended October 31, 2009 which are included herein. THREE MONTH SUMMARY ENDING OCTOBER 31, 2009 AND 2008 Three Months Ended October 31, 2009 2008 -------- -------- Revenue $ Nil $ Nil Operating Expenses $ 18,984 $ 12,401 Net Loss $(18,984) $(12,401) EXPENSES Our operating expenses for the three month periods ended October 31, 2009 and 2008 are outlined in the table below: Three Months Ended October 31, 2009 2008 -------- -------- Bank charges and interest $ 75 $ 103 Filing and transfer agent fees $ 160 $ 3,028 Mineral property $ 1,824 $ 270 Office expenses $ 425 $ Nil Professional fees $ 16,500 $ 9,000 19 Operating expenses for the three months ended October 31, 2009, increased by 53% as compared to the comparative period in 2008 primarily as a result of a increase in mineral exploration costs and increase in professional fees.. SIX MONTHS ENDED OCTOBER 31, 2009 AND 2008 The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended October 31, 2009 which are included herein. SIX MONTH SUMMARY ENDING OCTOBER 31, 2009 AND 2008 Six Months Ended October 31, 2009 2008 -------- -------- Revenue $ Nil $ Nil Operating Expenses $ 23,499 $ 27,123 Net Loss $(23,499) $(27,123) EXPENSES Our operating expenses for the six month periods ended October 31, 2009 and 2008 are outlined in the table below: Six Months Ended October 31, 2009 2008 -------- -------- Bank charges and interest $ 150 $ 212 Filing and transfer agent fees $ 160 $ 4,268 Mineral property $ 2,736 $ 3,589 Office expenses $ 503 $ 104 Professional fees $ 19,950 $ 18,950 Operating expenses for the six months ended October 31, 2009, increase by 5% as compared to the comparative period in 2008 primarily as a result of a increase in professional fees. REVENUE We have not earned any revenues since our inception and we do not anticipate earning revenues in the upcoming quarter. LIQUIDITY AND FINANCIAL CONDITION WORKING CAPITAL At At October 31, April 31 2009 2009 -------- -------- Current assets $ 5,306 $ Nil Current liabilities 33,000 26,195 -------- -------- Working capital deficit $(27,694) $(26,195) ======== ======== 20 CASH FLOWS Six Months Ended October 31, October 31, 2009 2008 -------- -------- Net Cash Used in Operating Activities $ 23,499 $ 27,123 Net Cash Used in Investing Activities Nil Nil Net Cash Provided by Financing Activities 31,500 12,000 -------- -------- Net Increase /(decrease) in cash during period $ 8,001 $(15,123) ======== ======== OPERATING ACTIVITIES Net cash used in operating activities was $23,499 in the six months ended October 31, 2009 compared with net cash used in operating activities of $27,123 in the same period in 2008. INVESTING ACTIVITIES Net cash used in investing activities was $Nil in the six months ended October 31, 2009 compared to net cash used in investing activities of $Nil in the same period in 2008. FINANCING ACTIVITIES Net cash provided by financing activities was $31,500 in the six months ended October 31, 2009 compared to $12,000 in the same period in 2008. CONTRACTUAL OBLIGATIONS As a "smaller reporting company", we are not required to provide tabular disclosure obligations. OFF-BALANCE SHEET ARRANGEMENTS We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders. RECENTLY ISSUED ACCOUNTING STANDARDS Effective September 15, 2009, our company adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 105-10, "Generally Accepted Accounting Principles." ASC 105-10 establishes the FASB Accounting Standards Codification(TM) ("Codification") as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP for SEC registrants. All guidance contained in the Codification carries an equal level of authority. The Codification supersedes all existing non-SEC accounting and reporting standards. The FASB will now issue new standards in the form of Accounting Standards Updates ("ASUs"). The FASB will not consider ASUs as authoritative in their own right. ASUs will serve only to update the Codification, provide background information about the guidance and provide the bases for conclusions on the changes in the Codification. References made to FASB guidance have been updated for the Codification throughout this document. Effective June 30, 2009, our company adopted guidance issued by the FASB and included in ASC 855-10, "Subsequent Events," which establishes general standards of accounting for and disclosures of events that occur after the balance sheet date but before the financial statements are issued or are available to be issued. It requires the disclosure of the date through which an entity has evaluated subsequent events. 21 Effective April 1, 2009, our company adopted guidance issued by the FASB that requires disclosure about the fair value of financial instruments for interim financial statements of publicly traded companies, which is included in the Codification in ASC 825-10-65, "Financial Instruments." The adoption of ASC 825-10-65 did not have an impact on our consolidated results of operations or financial condition. Our adoption of the standard had no impact on our financial results. Effective January 1, 2009, our company adopted guidance issued by the FASB that requires enhanced disclosures regarding derivative instruments and hedging activities, enabling a better understanding of their effects on an entity's financial position, financial performance and cash flows. The guidance is included in the Codification in ASC 815-10, "Derivatives and Hedging." The adoption of the standard had no impact on our financial results. Effective January 1, 2008, our company adopted ASC 820-10, "Fair Value Measurements and Disclosures," with respect to recurring financial assets and liabilities. Our company adopted ASC 820-10 on January 1, 2009, as it relates to nonrecurring fair value measurement requirements for nonfinancial assets and liabilities. ASC 820-10 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. The adoption of the standard had no impact on our financial results. ITEM 4T. CONTROLS AND PROCEDURES MANAGEMENT'S REPORT ON DISCLOSURE CONTROLS AND PROCEDURES We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the SECURITIES EXCHANGE ACT OF 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president and chief executive officer (our principal executive officer and our principal financial officer and principle accounting officer) to allow for timely decisions regarding required disclosure. As of October 31, 2009, the end of our second quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president and chief executive officer (our principal executive officer and our principal financial officer and principle accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president and chief executive officer (our principal executive officer and our principal financial officer and principle accounting officer) concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report. CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING There have been no changes in our internal controls over financial reporting that occurred during the quarter ended October 31, 2009 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting. PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS We know of no material, existing or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our company. 22 ITEM 1A. RISK FACTORS Much of the information included in this quarterly report includes or is based upon estimates, projections or other "forward looking statements". Such forward looking statements include any projections and estimates made by us and our management in connection with our business operations. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Such estimates, projections or other "forward looking statements" involve various risks and uncertainties as outlined below. We caution the reader that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any such estimates, projections or other "forward looking statements". RISKS ASSOCIATED WITH MINING OUR PROPERTY IS IN THE EXPLORATION STAGE. THERE IS NO ASSURANCE THAT WE CAN ESTABLISH THE EXISTENCE OF ANY MINERAL RESOURCE ON OUR PROPERTY IN COMMERCIALLY EXPLOITABLE QUANTITIES. UNTIL WE CAN DO SO, WE CANNOT EARN ANY REVENUES FROM OPERATIONS AND IF WE DO NOT DO SO WE WILL LOSE ALL OF THE FUNDS THAT WE EXPEND ON EXPLORATION. IF WE DO NOT DISCOVER ANY MINERAL RESOURCE IN A COMMERCIALLY EXPLOITABLE QUANTITY, OUR BUSINESS COULD FAIL. Despite exploration work on our mineral property, we have not established that it contains any mineral reserve, nor can there be any assurance that we will be able to do so. If we do not, our business could fail. A mineral reserve is defined by the Securities and Exchange Commission in its Industry Guide 7 (which can be viewed over the Internet at http://www.sec.gov/divisions/corpfin/forms/industry.htm#secguide7) as that part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination. The probability of an individual prospect ever having a "reserve" that meets the requirements of the Securities and Exchange Commission's Industry Guide 7 is extremely remote; in all probability our mineral resource property does not contain any 'reserve' and any funds that we spend on exploration will probably be lost. Even if we do eventually discover a mineral reserve on our property, there can be no assurance that we will be able to develop our property into a producing mine and extract those resources. Both mineral exploration and development involve a high degree of risk and few properties which are explored are ultimately developed into producing mines. The commercial viability of an established mineral deposit will depend on a number of factors including, by way of example, the size, grade and other attributes of the mineral deposit, the proximity of the resource to infrastructure such as a smelter, roads and a point for shipping, government regulation and market prices. Most of these factors will be beyond our control, and any of them could increase costs and make extraction of any identified mineral resource unprofitable. MINERAL OPERATIONS ARE SUBJECT TO APPLICABLE LAW AND GOVERNMENT REGULATION. EVEN IF WE DISCOVER A MINERAL RESOURCE IN A COMMERCIALLY EXPLOITABLE QUANTITY, THESE LAWS AND REGULATIONS COULD RESTRICT OR PROHIBIT THE EXPLOITATION OF THAT MINERAL RESOURCE. IF WE CANNOT EXPLOIT ANY MINERAL RESOURCE THAT WE MIGHT DISCOVER ON OUR PROPERTIES, OUR BUSINESS MAY FAIL. Both mineral exploration and extraction require permits from various foreign, federal, state, provincial and local governmental authorities and are governed by laws and regulations, including those with respect to prospecting, mine development, mineral production, transport, export, taxation, labour standards, occupational health, waste disposal, toxic substances, land use, environmental protection, mine safety and other matters. There can be no assurance that we will be able to obtain or maintain any of the permits required for the continued exploration of our mineral property or for the construction and operation of a mine on our property at economically viable costs. If we cannot accomplish these objectives, our business could fail. 23 We believe that we are in compliance with all material laws and regulations that currently apply to our activities but there can be no assurance that we can continue to remain in compliance. Current laws and regulations could be amended and we might not be able to comply with them, as amended. Further, there can be no assurance that we will be able to obtain or maintain all permits necessary for our future operations, or that we will be able to obtain them on reasonable terms. To the extent such approvals are required and are not obtained, we may be delayed or prohibited from proceeding with planned exploration or development of our mineral property. IF WE ESTABLISH THE EXISTENCE OF A MINERAL RESOURCE ON OUR PROPERTY IN A COMMERCIALLY EXPLOITABLE QUANTITY, WE WILL REQUIRE ADDITIONAL CAPITAL IN ORDER TO DEVELOP THE PROPERTY INTO A PRODUCING MINE. IF WE CANNOT RAISE THIS ADDITIONAL CAPITAL, WE WILL NOT BE ABLE TO EXPLOIT THE RESOURCE, AND OUR BUSINESS COULD FAIL. If we do discover mineral resources in commercially exploitable quantities on our property, we will be required to expend substantial sums of money to establish the extent of the resource, develop processes to extract it and develop extraction and processing facilities and infrastructure. Although we may derive substantial benefits from the discovery of a major deposit, there can be no assurance that such a resource will be large enough to justify commercial operations, nor can there be any assurance that we will be able to raise the funds required for development on a timely basis. If we cannot raise the necessary capital or complete the necessary facilities and infrastructure, our business may fail. MINERAL EXPLORATION AND DEVELOPMENT IS SUBJECT TO EXTRAORDINARY OPERATING RISKS. WE DO NOT CURRENTLY INSURE AGAINST THESE RISKS. IN THE EVENT OF A CAVE-IN OR SIMILAR OCCURRENCE, OUR LIABILITY MAY EXCEED OUR RESOURCES, WHICH WOULD HAVE AN ADVERSE IMPACT ON OUR COMPANY. Mineral exploration, development and production involves many risks which even a combination of experience, knowledge and careful evaluation may not be able to overcome. Our operations will be subject to all the hazards and risks inherent in the exploration for mineral resources and, if we discover a mineral resource in commercially exploitable quantity, our operations could be subject to all of the hazards and risks inherent in the development and production of resources, including liability for pollution, cave-ins or similar hazards against which we cannot insure or against which we may elect not to insure. Any such event could result in work stoppages and damage to property, including damage to the environment. We do not currently maintain any insurance coverage against these operating hazards. The payment of any liabilities that arise from any such occurrence would have a material adverse impact on our company. MINERAL PRICES ARE SUBJECT TO DRAMATIC AND UNPREDICTABLE FLUCTUATIONS. We expect to derive revenues, if any, either from the sale of our mineral resource property or from the extraction and sale of metals such as lithium. The price of those commodities has fluctuated widely in recent years, and is affected by numerous factors beyond our control, including international, economic and political trends, expectations of inflation, currency exchange fluctuations, interest rates, global or regional consumptive patterns, speculative activities and increased production due to new extraction developments and improved extraction and production methods. The effect of these factors on the price of metals, and therefore the economic viability of any of our exploration properties and projects, cannot accurately be predicted. THE MINING INDUSTRY IS HIGHLY COMPETITIVE AND THERE IS NO ASSURANCE THAT WE WILL CONTINUE TO BE SUCCESSFUL IN ACQUIRING MINERAL CLAIMS. IF WE CANNOT CONTINUE TO ACQUIRE PROPERTIES TO EXPLORE FOR MINERAL RESOURCES, WE MAY BE REQUIRED TO REDUCE OR CEASE OPERATIONS. The mineral exploration, development, and production industry is largely un-integrated. We compete with other exploration companies looking for mineral resource properties. While we compete with other exploration companies in the effort to locate and acquire mineral resource properties, we will not compete with them for the removal or sales of mineral products from our property if we should eventually discover the presence of them in quantities sufficient to make production economically feasible. Readily available markets exist worldwide for the sale of mineral products. Therefore, we will likely be able to sell any mineral products that we identify and produce. 24 In identifying and acquiring mineral resource properties, we compete with many companies possessing greater financial resources and technical facilities. This competition could adversely affect our ability to acquire suitable prospects for exploration in the future. Accordingly, there can be no assurance that we will acquire any interest in additional mineral resource properties that might yield reserves or result in commercial mining operations. RISKS RELATED TO OUR COMPANY WE HAVE A LIMITED OPERATING HISTORY ON WHICH TO BASE AN EVALUATION OF OUR BUSINESS AND PROSPECTS. We have been in the business of exploring mineral resource properties since 2007 and we have not yet located any mineral reserve. As a result, we have never had any revenues from our operations. In addition, our operating history has been restricted to the acquisition and exploration of our mineral properties and this does not provide a meaningful basis for an evaluation of our prospects if we ever determine that we have a mineral reserve and commence the construction and operation of a mine. We have no way to evaluate the likelihood of whether our mineral property contains any mineral reserve or, if it does that we will be able to build or operate a mine successfully. We anticipate that we will continue to incur operating costs without realizing any revenues during the period when we are exploring our properties. We therefore expect to continue to incur significant losses into the foreseeable future. We recognize that if we are unable to generate significant revenues from mining operations and any disposition of our property, we will not be able to earn profits or continue operations. At this early stage of our operation, we also expect to face the risks, uncertainties, expenses and difficulties frequently encountered by companies at the start up stage of their business development. We cannot be sure that we will be successful in addressing these risks and uncertainties and our failure to do so could have a materially adverse effect on our financial condition. There is no history upon which to base any assumption as to the likelihood that we will prove successful and we can provide investors with no assurance that we will generate any operating revenues or ever achieve profitable operations. THE FACT THAT WE HAVE NOT EARNED ANY OPERATING REVENUES SINCE OUR INCORPORATION RAISES SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE TO EXPLORE OUR MINERAL PROPERTIES AS A GOING CONCERN. We have not generated any revenue from operations since our incorporation and we anticipate that we will continue to incur operating expenses without revenues unless and until we are able to identify a mineral resource in a commercially exploitable quantity on our mineral property and build and operate a mine. We had cash in the amount of $ 5,306 as of October 31, 2009. At October 31, 2009, we had a working capital deficit of $27,694. We incurred a net loss of $23,499 for six month ended October 31, 2009 and $82,694 since inception. We will have to raise additional funds to meet our currently budgeted operating requirements for the next 12 months. As we cannot assure a lender that we will be able to successfully explore and develop our mineral property, we will probably find it difficult to raise debt financing from traditional lending sources. We have traditionally raised our operating capital from sales of equity and debt securities, but there can be no assurance that we will continue to be able to do so. If we cannot raise the money that we need to continue exploration of our mineral property, we may be forced to delay, scale back, or eliminate our exploration activities. If any of these were to occur, there is a substantial risk that our business would fail. These circumstances lead our independent registered public accounting firm, in their report dated August 07, 2009, to comment about our company's ability to continue as a going concern. Management has plans to seek additional capital through a private placement of our capital stock. These conditions raise substantial doubt about our company's ability to continue as a going concern. Although there are no assurances that management's plans will be realized, management believes that our company will be able to continue operations in the future. RISKS ASSOCIATED WITH OUR COMMON STOCK WITHOUT A PUBLIC MARKET THERE IS NO LIQUIDITY FOR OUR SHARES AND OUR SHAREHOLDERS MAY NEVER BE ABLE TO SELL THEIR SHARES WHICH WOULD RESULT IN A TOTAL LOSS OF THEIR INVESTMENT. 25 Our common shares are not listed on any exchange or quotation system and we do not have a market maker who will assist us in having our shares quoted on the OTCBB. At the present, time none of our selling security holders are able to sell their shares other than through private transactions. Selling shares privately might result in our selling security holders not receiving the price per share that they might have obtained if the shares were quoted on the OTCBB. Management intends to seek out a market maker. This will occur as follows: * We will have to identify a market maker who will file a Form 211 for us which will start the process with the FINRA and hopefully eventually obtaining a quotation on the OTCBB; and * We will have to be current in our financial statements to be quoted on the OTCBB and hence we will be responsible for filing Forms 10-K and 10-Q on a periodic basis as required. We do not know how long this process will take, but we estimate a period of between six to twelve months. There is the distinct possibility that our company will never be quoted on the OTCBB. WE MIGHT IN THE FUTURE HAVE TO SELL SHARES BY WAY OF PRIVATE PLACEMENTS OR THROUGH A PUBLIC OFFERING WHICH WILL HAVE THE EFFECT OF DILUTING OUR SHAREHOLDERS' CURRENT PERCENTAGE OWNERSHIP IN OUR COMPANY. If, in the future, we decide to sell shares to raise additional capital for operations, our shareholders current percentage ownership in our company will be diluted unless they participate in the purchase of shares equivalent to their present ownership in our company. If they do not participate in either a future private placement or public offering their percentage interest in our company will be diluted. OTHER RISKS TRENDS, RISKS AND UNCERTAINTIES We have sought to identify what we believe to be the most significant risks to our business, but we cannot predict whether, or to what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise. Investors should carefully consider all of such risk factors before making an investment decision with respect to our common stock. ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS None. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS None. ITEM 5. OTHER INFORMATION None. 26 ITEM 6. EXHIBITS Exhibit Number Description ------ ----------- (3) ARTICLES OF INCORPORATION AND BY-LAWS 3.1 Articles of Incorporation (incorporated by reference from our Registration Statement on Form S-1 filed on August 4, 2008) 3.2 Bylaws (incorporated by reference from our Registration Statement on Form S-1 filed on August 4, 2008) (10) MATERIAL CONTRACTS 10.1 Purchase and Sale Agreement dated January 15, 2007 (incorporated by reference from our Registration Statement on Form S-1 filed on August 4, 2008) 10.2 Form of Private Placement Subscription Agreement (incorporated by reference from our Registration Statement on Form S-1 filed on August 4, 2008) (31) RULE 13A-14(D)/15D-14(D) CERTIFICATIONS 31.1* Section 302 Certification (32) SECTION 1350 CERTIFICATIONS 32.1* Section 906 Certification ---------- * Filed herewith. 27 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. QUARTZ VENTURES INC. Date: December 21, 2009 /s/ Georgios Polyhronopoulos --------------------------------------------------- Georgios Polyhronopoulos President, Chief Executive Officer, Secretary, Treasurer, Chief Financial Officer and Director (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) 28

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