0001127855-12-000551.txt : 20121004 0001127855-12-000551.hdr.sgml : 20121004 20121004134438 ACCESSION NUMBER: 0001127855-12-000551 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20120331 FILED AS OF DATE: 20121004 DATE AS OF CHANGE: 20121004 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Scout Exploration, Inc CENTRAL INDEX KEY: 0001371474 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-52280 FILM NUMBER: 121129189 BUSINESS ADDRESS: STREET 1: 32 EXECUTIVE PARK STREET 2: SUITE 105 CITY: IRVINE STATE: CA ZIP: 92614 BUSINESS PHONE: (949) 265-7717 MAIL ADDRESS: STREET 1: 32 EXECUTIVE PARK STREET 2: SUITE 105 CITY: IRVINE STATE: CA ZIP: 92614 10-Q 1 scout10q033112.htm SCOUT EXPLORATION 10Q, 03.31.12 scout10q033112.htm



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

x           Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2012

o           Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _______________ to _______________

Commission File Number 0 - 52280

SCOUT EXPLORATION, INC.
(Exact name of Small Business Issuer as specified in its charter)

Nevada
98-0504670
(State or other jurisdiction of incorporation)
(IRS Employer Identification No.)

609-475 Howe Street, Vancouver, BC V6C 2B3
(Address of principal executive offices)
 
(604) 682-1643
(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 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.
Yes o   No þ

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).
Yes o   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller 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
o
Accelerated filer
o
 
Non-accelerated filer
o
Smaller reporting company
þ
 
 

 
 
 

 
 
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o   No þ

There are 13,947,000 common shares of Scout Exploration, Inc. issued and outstanding as of October 3, 2012.
 
 
PART I - FINANCIAL INFORMATION
 
Item 1.
Financial Statements

 
 
 
Scout Exploration, Inc.
(an Exploration Stage Enterprise)

Interim Financial Statements
(Unaudited) (presented in US dollars)

March 31, 2012
 
 
 
 
 
 







 
1

 


 
INDEX
 
 

 
 
 
 
 
 
 
 
 
 
 

 
2

 

 
   
Scout Exploration, Inc.
           
(an Exploration Stage Company)
           
Interim Balance Sheets
           
(Unaudited) (Presented in US Dollars)
           
             
   
(Unaudited)
March 31, 2012
   
September 30, 2011
 
             
Assets
           
Current
           
Cash
  $ 1,663     $ 2,930  
   
                 
Liabilities
               
Current
               
Accounts payable and accrued liabilities (note 5)
  $ 387,029     $ 335,075  
Notes payable (Note 4)
    27,521       25,661  
Due to related parties (Note 5)
    22,778       22,778  
      437,328       383,514  
                 
Stockholders' Deficit
               
Preferred stock
               
Authorized: 1,000,000 shares with par value of $0.01
               
Issued: Nil (September 30, 2011 - Nil)
    -       -  
Common stock
               
Authorized: 50,000,000 shares with par value of $0.001
               
Issued: 8,947,000 (September 30, 2011 - 8,947,000)
    8,947       8,947  
Subscriptions received in advance
    4,100       4,100  
Subscriptions receivable
    (5,246 )     (5,246 )
Additional paid in capital
    996,853       996,853  
Deficit accumulated during the exploration stage
    (1,440,319 )     (1,385,238 )
      (435,665 )     (380,584 )
    $ 1,663     $ 2,930  
   
                 
Going Concern (Note 1)
               
 

 
 
The accompanying notes are an integral part of the interim financial statements.

 
3

 

 
   
Scout Exploration, Inc.
                                         
(an Exploration Stage Company)
                                         
Interim Statements of Stockholders' Deficit
                                     
(Unaudited) (Presented in US Dollars)
                                     
                                           
From Incorporation on February 1, 1999 to March 31, 2012
 
                                 
Deficit
       
   
Shares of
         
Additional
   
Subscriptions
         
       accumulated
 
   
common
   
Capital
   
paid-in
   
received
   
Subscriptions
   
during the
       
   
stock
   
stock
   
capital
   
in advance
   
receivable
   
exploration stage
   
Total
 
                                           
Balance February 1, 1999
    -     $ -     $ -     $ -     $ -     $ -     $ -  
Subscriptions received in advance
    -       -       -       37,100       -       -       37,100  
Net loss for the period
    -       -       -       -       -       (32,002 )     (32,002 )
Balance September 30, 1999
    -       -       -       37,100       -       (32,002 )     5,098  
Net loss for the year
    -       -       -       -       -       (3,829 )     (3,829 )
Balance September 30, 2000
    -       -       -       37,100       -       (35,831 )     1,269  
Shares issued for cash
    3,700,000       3,700       33,300       (37,000 )     -       -       -  
Net loss for the year
    -       -       -       -       -       (3,754 )     (3,754 )
Balance September 30, 2001
    3,700,000       3,700       33,300       100       -       (39,585 )     (2,485 )
Net loss for the year
    -       -       -       -       -       (3,216 )     (3,216 )
Balance September 30, 2002
    3,700,000       3,700       33,300       100       -       (42,801 )     (5,701 )
Net loss for the year
    -       -       -       -       -       (3,120 )     (3,120 )
Balance September 30, 2003
    3,700,000       3,700       33,300       100       -       (45,921 )     (8,821 )
Net loss for the year
    -       -       -       -       -       (3,127 )     (3,127 )
Balance September 30, 2004
    3,700,000       3,700       33,300       100       -       (49,048 )     (11,948 )
Net loss for the year
    -       -       -       -       -       (10,776 )     (10,776 )
Balance September 30, 2005
    3,700,000       3,700       33,300       100       -       (59,824 )     (22,724 )
Shares issued for cash
    1,700,000       1,700       83,300       -       -       -       85,000  
Shares issued for mineral property
    500,000       500       24,500       -       -       -       25,000  
Net loss for the year
    -       -       -       -       -       (85,201 )     (85,201 )
Balance September 30, 2006
    5,900,000       5,900       141,100       100       -       (145,025 )     2,075  
Shares issued for cash and subscription receivable
    1,400,000       1,400       208,600       -       (75,000 )     -       135,000  
Net loss
    -       -       -       -       -       (131,869 )     (131,869 )
Balance September 30, 2007
    7,300,000       7,300       349,700       100       (75,000 )     (276,894 )     5,206  
Cash received for subscriptions receivable
    -       -       -       -       75,000       -       75,000  
Shares issued for consulting services
    150,000       150       74,850       -       -       -       75,000  
Shares issued for cash
    1,397,000       1,397       557,403       4,000       (23,000 )     -       539,800  
Net loss
    -       -       -       -       -       (792,378 )     (792,378 )
Balance September 30, 2008
    8,847,000       8,847       981,953       4,100       (23,000 )     (1,069,272 )     (97,372 )
Shares issued for consulting services
    100,000       100       14,900       -       -       -       15,000  
Cash received for subscriptions receivable
    -       -       -       -       17,754       -       17,754  
Net loss
    -       -       -       -       -       (167,156 )     (167,156 )
Balance September 30, 2009
    8,947,000       8,947       996,853       4,100       (5,246 )     (1,236,428 )     (231,774 )
Net loss
    -       -       -       -       -       (73,488 )     (73,488 )
Balance September 30, 2010
    8,947,000       8,947       996,853       4,100       (5,246 )     (1,309,916 )     (305,262 )
Net loss
    -       -       -       -       -       (75,322 )     (75,322 )
Balance September 30, 2011
    8,947,000       8,947       996,853       4,100       (5,246 )     (1,385,238 )     (380,584 )
Net loss
    -       -       -       -       -       (55,081 )     (55,081 )
Balance March 31, 2012
    8,947,000     $ 8,947     $ 996,853     $ 4,100     $ (5,246 )   $ (1,440,319 )   $ (435,665 )
   
 
 
The accompanying notes are an integral part of the interim financial statements.

 
4

 

 
   
Scout Exploration, Inc.
                             
(an Exploration Stage Company)
                             
Interim Statements of Operations
                             
(Unaudited) (Presented in US Dollars)
                             
                               
   
Cumulative from inception through
March 31,
   
Three months ended
March 31,
   
Six months ended
March 31,
 
   
2012
   
2012
   
2011
   
2012
   
2011
 
                               
Administrative expenses
                             
Accounting and audit
  $ 205,406     $ 2,000     $ 2,000     $ 4,000     $ 4,000  
Bank charges and interest
    20,494       943       820       1,896       2,499  
Consulting fees
    117,983       -       -       -       -  
Directors’ fees (note 5)
    134,000       6,000       6,000       12,000       12,000  
Filing fees, dues and subscriptions
    18,144       -       1,320       -       1,320  
Foreign exchange loss (gain)
    25,771       3,369       4,534       8,131       7,752  
Legal
    144,217       665       -       4,390       -  
Magazine rights
    5,100       -       -       -       -  
Management fees
    35,575       -       -       -       -  
Office and administration (note 5)
    223,426       12,008       11,534       23,464       11,534  
Promotion and travel
    57,144       -       -       -       -  
Transfer agent
    23,576       600       600       1,200       1,200  
      1,010,836       25,585       26,808       55,081       40,305  
                                         
Resource property expenses
                                       
Acquisition costs
    30,000       -       -       -       -  
Exploration costs
    2,723       -       -       -       -  
      32,723       -       -       -       -  
                                         
Loss from impairment of investment
    396,760       -       -       -       -  
                                         
Loss and comprehensive loss
  $ (1,440,319 )   $ (25,585 )   $ (26,808 )   $ (55,081 )   $ (40,305 )
                                         
Basic and diluted loss per share
          $ (0.00 )   $ (0.00 )   $ (0.01 )   $ (0.00 )
                                         
Basic and diluted weighted average shares outstanding
      8,947,000       8,947,000       8,947,000       8,947,000  
   
 
 
 
 
 
The accompanying notes are an integral part of the interim financial statements.
 
 
5

 

 
   
Scout Exploration, Inc.
                 
(an Exploration Stage Company)
                 
Interim Statements of Cash Flows
                 
(Unaudited) (Presented in US Dollars)
                 
                   
   
Cumulative from inception through
March 31,
   
Six months ended
March 31,
 
   
2012
   
2012
   
2011
 
                   
Cash flows from operating activities
                 
Net loss
  $ (1,440,319 )   $ (55,081 )   $ (40,305 )
Adjustments to reconcile net loss to net cash
                       
used in operating activities
                       
Services settled by issuance of stock
    115,100       -       -  
Loss from impairment of investment
    396,760       -       -  
Expenses paid by subsidiary and forgiven
    20,480       -       -  
Unrealized foreign exchange
    14,771       8,131       5,593  
Accrued interest
    9,449       1,860       1,854  
Changes in operating assets and liabilities
                       
Accounts payable and accrued liabilities
    376,381       43,762       31,110  
      (507,378 )     (1,328 )     (1,748 )
                         
Cash flows from investing activities
                       
Acquisition of investment
    (417,240 )     -       -  
                         
Cash flows from financing activities
                       
Proceeds from Issuance of common stock
    889,554       -       -  
Advances from related parties
    22,778       -       -  
Proceeds from issuance of note
    18,072       -       4,548  
      930,404       -       4,548  
                         
Effect of exchange rate changes on cash
    (4,123 )     61       (278 )
                         
(Decrease) increase in cash
    1,663       (1,267 )     2,522  
                         
Cash at beginning of the period
    -       2,930       59  
                         
Cash at end of the period
  $ 1,663     $ 1,663     $ 2,581  
   
                         
Supplemental disclosure with respect to cash flows (Note 6)
                 
 
 
The accompanying notes are an integral part of the interim financial statements.
 
 
6

 
 

Scout Exploration, Inc.
Notes to the Interim Financial Statements
(Unaudited) (Presented in US dollars)

March 31, 2012

 
1.  
Nature of operations and going concern
 
Scout Exploration, Inc. (the “Company”) was incorporated in the State of Nevada on February 1, 1999. The Company was initially engaged in the business of designing, developing and marketing educational products. On April 10, 2006 the Company changed its name from Virtual Curricula Corp. to Scout Exploration, Inc.
 
The Company’s continuing operations, as intended, are dependent on management’s ability to raise required funding through future equity issuances, asset sales or a combination thereof, which is not assured. These financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of business.
 
At March 31, 2012, the Company had suffered losses from exploration stage activities to date, and has a working capital deficit of $435,665. Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this
uncertainty.
 
2.  
Basis of presentation
 
The interim financial statements presented herein have been prepared by the Company in accordance with the accounting policies in its audited financial statements for the year ended September 30, 2011 and should be read in conjunction with the notes thereto.
 
In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary to provide a fair presentation of operating results for the interim period presented have been made. The results of operations for the period presented is not necessarily indicative of the results to be expected for the year.
 
Interim financial data presented herein are unaudited, except for the balance sheet at September 30, 2011, which has been derived from the audited financial statements at that date.
 
3.  
Resource properties
 
On March 4, 2006 the Company signed a letter of agreement with a non-arms length private Canadian Corporation for a 100% interest in and to the Wheaton River AAV 1-9 Claims situated in the Whitehorse Mining District of the Yukon Territory, Canada. Terms of the purchase require a cash payment of $5,000 by March 31, 2006 (paid) and $20,000 on or before September 30, 2006 (subsequently deferred until such a time as the Company is able to secure financing), and the issuance of 500,000 common shares of the Company (issued at fair value of $0.05 per common share). The Vendor will retain a 3% net smelter royalty, up to 2% of which can be re-purchased for $2,000,000.
 

 
7

 
 

Scout Exploration, Inc.
Notes to the Interim Financial Statements
(Unaudited) (Presented in US dollars)

March 31, 2012

 
4.  
Notes payable
 
Notes payable comprise three notes.
 
The first note has a principal amount of $10,000, bears interest at 25% per annum, and was due on June 21, 2010. As further consideration the lender will be issued shares of the Company’s capital stock having an aggregate value of $2,500. The principal amount, interest, and shares are all still outstanding subsequent to the period ended March 31, 2012.
 
The second note has a principal amount of $5,000, bears interest at 15% per annum, and is due on demand.
 
The third note has a principal amount of $3,072, bears interest at 15% per annum, and is due on demand.
 
Included in notes payable is accrued interest in the amount of $6,949 (2011 – $3,238).
 
5.  
Related party transactions
 
 
a)
During the period ended March 31, 2012, directors’ fees of $12,000 (2011 - $12,000) were paid or accrued to two Directors of the Company.
 
 
b)
During the period ended March 31, 2012, office and administration fees and management fees of $23,139 (2011 - $11,411) were paid or accrued to corporations controlled by a Director of the Company.
 
 
c)
At March 31, 2012, $201,116 (September 30, 2011 - $161,083) owed to Directors and corporations controlled by a Director of the Company was included in accounts payable. The balance is due on demand, has no specific terms of repayments, is non-interest bearing and is unsecured, and accordingly fair value cannot be reliably determined.
 
 
d)
As of March 31, 2012, advances due to directors in the amount of $22,778 (September 30, 2011 – $22,778) are unsecured, non-interest bearing and with no specific repayment terms.
 
The above transactions occurred in the normal course of operations and were measured at the exchange value which represented the consideration established and agreed to by the related parties.
 
6.  
Supplemental disclosure with respect to cash flows
 
Supplemental cash flow information for the six months ended March 31 is as follows:
 
   
2012
   
2011
 
Interest paid
  $ -     $ -  
Income taxes paid
  $ -     $ -  
 
 

 
 
8

 
 

Scout Exploration, Inc.
Notes to the Interim Financial Statements
(Unaudited) (Presented in US dollars)

March 31, 2012

 
7.  
Financial instruments and risk management
 
 
a)
Fair value
 
The Company’s financial instruments include cash and accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying values, unless otherwise noted.
 
 
b)
Foreign exchange risk
 
The Company expects to raise equity predominantly in United States dollars. The Company is conducting business in Canada where financial transactions are based on the Canadian dollar. As such, the Company is subject to risks due to fluctuations in the exchange rates for the U.S. and Canadian dollar. The Company does not enter into derivative financial instruments to mitigate its exposure to foreign currency risk.
 
At March 31, 2012 the Company had the following financial assets and liabilities denominated in Canadian dollars:
 
   
CDN Dollars
 
Cash
  $ 1,236  
Accounts payable and accrued liabilities
  $ 184,852  

At March 31, 2012 CDN dollar amounts were converted at a rate of 0.9975 Canadian dollars to 1 US dollar.
 
8.  
Subsequent events
 
On September 14, 2011 and as amended on July 31, 2012, the Company entered into a letter of intent with IDS Offshore Inc. (“IDS”) pursuant to which the Company may acquire the exclusive rights to certain intellectual property and patents surrounding the rapid oil boom project held and developed by IDS (the “Project”), for total cash consideration of $4,265,000 payable at various dates over a 3 year period commencing on July 31, 2012, and issuance of 5,000,000 common shares of the Company on signing the amended letter of intent (issued), and a total 7,500,000 common shares of the Company upon completion of various phases of the Project.

In accordance with ASC 855 Company management reviewed all material events through filing of these financial statements and there are no additional material subsequent events to report.



 
9

 

 
Item 2
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 
Cautionary Note Regarding Forward Looking Statements
 
This report contains forward-looking statements that involve risks and uncertainties, including statements regarding our capital needs, business plans and expectations. Such forward-looking statements involve risks and uncertainties regarding the market price of precious and base metals, oil and gas, availability of funds, government regulations, operating costs, exploration costs, outcomes of exploration programs and other factors. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. Forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. Our actual results may differ materially. In evaluating these statements, you should consider various factors. These factors may cause actual results to differ materially from any forward-looking statement. While these forward-looking statements are made in good faith and reflect our current judgment regarding our business plans, actual results from our operations will almost always vary, sometimes materially, from any future performance suggested herein.
 
General
 
The following discussion and analysis should be read in conjunction with our financial statements for the six months ended March 31, 2012, and notes related thereto appearing elsewhere in this report.
 
Plan of Operations
 
Over the next year our plan of operations is to review our existing mineral property, evaluate potential acquisitions of additional mineral properties, and secure financing for the Company to carry out its operations.
 
On September 14, 2011 and as amended on July 31, 2012, we entered into a letter of intent with IDS Offshore Inc. (“IDS”) pursuant to which we may acquire the exclusive rights to certain intellectual property and patents surrounding the rapid oil boom project held and developed by IDS (the “Project”), for total cash consideration of $4,265,000 payable at various dates over a 3 year period commencing on July 31, 2012, and issuance of 5,000,000 common shares of the Company on signing the amended letter of intent, and a total 7,500,000 common shares of the Company upon completion of various phases of the Project.
 
As of March 31, 2012, we had $1,663 cash on hand and negative working capital of $435,665.
 
We will need to obtain additional financing in order to continue our plan of operations.
 
We believe that debt financing will not be a feasible alternative, as we do not have sufficient unencumbered tangible assets to secure any debt financing. We anticipate that additional financing will be equity financing from the sale of our common stock. However, we do not have any financing arranged and nor can we provide investors with any assurance that we will be able to raise sufficient funding from such potential equity financings. In the absence of
 
 
 
10

 
 
 
such financing, we will not be able to continue exploration or development of our mineral claims and our business plan will then fail. Even if we are successful in obtaining equity financing to fund exploration of our mineral claims and acquisition of additional mineral properties as well as other operational costs, there is no assurance of success from such exploration activities. In the event we do not continue to obtain additional financing, we will be forced to abandon our mineral claims.
 
Future Financing
 
We anticipate we will continue to rely on equity sales of our common stock to finance our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our planned exploration or development activities.
 
Results of Operations
 
General and administrative expenses have increased from $40,305 for the six months ended March 31, 2011 to $55,081 for the three months ended March 31, 2012, mainly due to an increase in office and administration and legal expenses.
 
Our loss for the six months ended March 31, 2012 was $55,081 as compared to $40,305 for the six months ended March 31, 2011.
 
Item 3
Quantitative and Qualitative Disclosures about Market Risk
 
Not applicable.
 
Item 4
Controls and Procedures
 
Disclosure Controls and Procedures
 
As required by Rule 13a-15 of the Exchange Act, our principal executive officer and principal financial officer evaluated our company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, these officers concluded that as of the end of the period covered by this report, these disclosure controls and procedures were not effective to ensure that the information required to be disclosed by our company in reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities Exchange Commission and include controls and procedures designed to ensure that such information is accumulated and communicated to our company's management, including our company's principal executive officer and principal financial officer, to allow timely decisions regarding required disclosure. The conclusion that our disclosure controls and procedures were not effective was due to the presence of the following material weaknesses in internal control over financial reporting which are indicative of many small companies with small staff: (i) inadequate segregation of duties and effective risk assessment; and (ii) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of both US GAAP and SEC guidelines. Management anticipates that such disclosure controls and procedures will not be effective until the material weaknesses are remediated.
 
 
 
11

 
 
 
We plan to take steps to enhance and improve the design of our internal controls over financial reporting. During the period covered by this quarterly report on Form 10-Q, we have not been able to remediate the material weaknesses identified above. To remediate such weaknesses, we plan to implement the following changes during our fiscal year ending September 30, 2013: (i) appoint additional qualified personnel to address inadequate segregation of duties and ineffective risk management; and (ii) adopt sufficient written policies and procedures for accounting and financial reporting. The remediation efforts set out above are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.
 
Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within our company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake.
 
Changes in Internal Control over Financial Reporting
 
During the quarter ended March 31, 2012, there were no changes in our internal control over financial reporting or in other factors that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
 
PART II – OTHER INFORMATION
 
Item 1
LEGAL PROCEEDINGS.
 
None.
 
Item 2
UNREGISTERED SALES OF EQUITY SECURITIES.
 
None.
 
Item 3
DEFAULTS UPON SENIOR SECURITIES.
 
None.
 
Item 4
(REMOVED AND RESERVED)
 
 
Item 5
OTHER INFORMATION.
 
None.
 
 
 
12

 
 
 
Item 6
EXHIBITS
 
 
 
SIGNATURES
 
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Date:  October 3, 2012
 
SCOUT EXPLORATION, INC.


By:  /s/ John Roozendaal                                 
Name: John Roozendaal
Title: President and Chief Executive Officer


By: /s/ Jason Walsh                                           
Name: Jason Walsh
Title: Treasurer and Principal Accounting Officer


By: /s/ Rene Lange                                             
Name: Rene Lange
Title: Director
 
 
 
 
 
 
 
 
13

EX-31.1 2 scoutexh31_1.htm SCOUT EXPLORATION 10Q, CERTIFICATION 302, CEO scoutexh31_1.htm

Exhibit 31.1
 
 
CERTIFICATIONS
 
I, John Roozendaal, certify that:
 
1.           I have reviewed this quarterly report on Form 10-Q of Scout Exploration, Inc.;
 
2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.           The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
(a)         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b)         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c)          Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
(d)         Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;
 
5.           The registrant’s other certifying officer(s) and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
(a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
(b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: October 3, 2012
 
/s/ John Roozendaal                                 
John Roozendaal
President and Chief Executive Officer
 
 

EX-31.2 3 scoutexh31_2.htm SCOUT EXPLORATION 10Q, CERTIFICATION 302, CFO scoutexh31_2.htm

Exhibit 31.2
 
 
CERTIFICATIONS
 
I, Jason Walsh, certify that:
 
1.           I have reviewed this quarterly report on Form 10-Q of Scout Exploration, Inc.;
 
2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
 
4.           The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
 
(a)         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
 
(b)         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
 
(c)          Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
 
(d)         Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;
 
5.           The registrant’s other certifying officer(s) and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
 
(a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
 
(b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.


Date: October 3, 2012
 
/s/ Jason Walsh                                                     
Jason Walsh
Treasurer and Principal Accounting Officer
 
 


EX-32.1 4 scoutexh32_1.htm SCOUT EXPLORATION 10Q, CERTIFICATION 906, CEO scoutexh32_1.htm

Exhibit 32.1
 
 
CERTIFICATIONS PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Scout Exploration, Inc. (the “Company”), on Form 10-Q for the period ending March 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John Roozendaal, President of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
 
1.
The Report duly complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and
 
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ John Roozendaal                                   
John Roozendaal
President and Chief Executive Officer
Date:  October 3, 2012
 
 
 
 
 
 
 
 
 
 


EX-32.2 5 scoutexh32_2.htm SCOUT EXPLORATION 10Q, CERTIFICATION 906, CFO scoutexh32_2.htm

Exhibit 32.2
 
 
CERTIFICATIONS PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Scout Exploration, Inc. (the “Company”), on Form 10-Q for the period ending March 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jason Walsh, Treasurer of the Company certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
 
1.
The Report duly complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and
 
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
 
 
/s/ Jason Walsh                                                      
Jason Walsh
Treasurer and Principal Accounting Officer
Date:  October 3, 2012
 
 
 
 
 
 
 
 
 
 
 


EX-101.CAL 6 scxn-20120331_cal.xml EX-101.DEF 7 scxn-20120331_def.xml EX-101.INS 8 scxn-20120331.xml 2522 -1267 1663 4000 4000 205406 2000 2000 -31110 -43762 -376381 335075 387029 1854 1860 9449 30000 417240 996853 996853 22778 false -2499 -1896 -20494 -820 -943 -0.00 -0.01 -0.00 -0.00 8947000 8947000 8947000 8947000 <!--egx--><p style='margin:0in 0in 0pt;line-height:normal'><b>2.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Basis of presentation</b></p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>The interim financial statements presented herein have been prepared by the Company in accordance with the accounting policies in its audited financial statements for the year ended September 30, 2011 and should be read in conjunction with the notes thereto.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary to provide a fair presentation of operating results for the interim period presented have been made. The results of operations for the period presented is not necessarily indicative of the results to be expected for the year.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>Interim financial data presented herein are unaudited, except for the balance sheet at September 30, 2011, which has been derived from the audited financial statements at that date.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> 59 2581 2930 1663 <!--egx--><p style='margin:0in 0in 0pt;line-height:normal'><b>6.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Supplemental disclosure with respect to cash flows</b></p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>Supplemental cash flow information for the six months ended March 31 is as follows:</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <table cellspacing="0" cellpadding="0" border="0" style='margin:auto auto auto 39.25pt;border-collapse:collapse'> <tr> <td valign="bottom" width="415" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:311.35pt;padding-top:0in;border-bottom:black 1pt solid'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'> </p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:black 1pt solid'> <p align="right" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:right'>&nbsp;</p></td> <td valign="bottom" width="77" colspan="2" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:57.9pt;padding-top:0in;border-bottom:black 1pt solid'> <p align="center" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:center'><b>2012</b></p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:black 1pt solid'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:black 1pt solid'> <p align="right" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:right'>&nbsp;</p></td> <td valign="bottom" width="77" colspan="2" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:57.9pt;padding-top:0in;border-bottom:black 1pt solid'> <p align="center" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:center'>2011</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:1.5pt;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="415" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:311.35pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal;text-align:justify'>Interest paid</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p align="right" style='background:white;margin:0in 0in 0pt;line-height:normal;text-align:right'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.55pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal'><b>$</b></p></td> <td valign="bottom" width="71" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:53.35pt;padding-top:0in;border-bottom:#ece9d8'> <p align="right" style='background:white;margin:0in 0in 0pt;line-height:normal;text-align:right'><b>-</b></p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p align="right" style='background:white;margin:0in 0in 0pt;line-height:normal;text-align:right'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.55pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal'>$</p></td> <td valign="bottom" width="71" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:53.35pt;padding-top:0in;border-bottom:#ece9d8'> <p align="right" style='background:white;margin:0in 0in 0pt;line-height:normal;text-align:right'>-</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="415" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:311.35pt;padding-top:0in;border-bottom:black 2.25pt double'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:justify'>Income taxes paid</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:black 2.25pt double'> <p align="right" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:right'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.55pt;padding-top:0in;border-bottom:black 2.25pt double'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'><b>$</b></p></td> <td valign="bottom" width="71" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:53.35pt;padding-top:0in;border-bottom:black 2.25pt double'> <p align="right" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:right'><b>-</b></p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:black 2.25pt double'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:black 2.25pt double'> <p align="right" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:right'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.55pt;padding-top:0in;border-bottom:black 2.25pt double'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>$</p></td> <td valign="bottom" width="71" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:53.35pt;padding-top:0in;border-bottom:black 2.25pt double'> <p align="right" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:right'>-</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:3pt;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td></tr></table> <p style='margin:0in 0in 0pt;line-height:normal'>&nbsp;</p> 8947 8947 0.001 0.001 50000000 50000000 8947000 8947000 8947000 8947000 117983 --09-30 <!--egx--><p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'><b>4.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Notes payable</b></p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>Notes payable comprise three notes.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>The first note has a principal amount of $10,000, bears interest at 25% per annum, and was due on June 21, 2010. As further consideration the lender will be issued shares of the Company&#146;s capital stock having an aggregate value of $2,500. The principal amount, interest, and shares are all still outstanding subsequent to the period ended March 31, 2012.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>The second note has a principal amount of $5,000, bears interest at 15% per annum, and is due on demand.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>The third note has a principal amount of $3,072, bears interest at 15% per annum, and is due on demand.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>Included in notes payable is accrued interest in the amount of $6,949 (2011 &#150; $3,238).</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> 1385238 1440319 12000 12000 134000 6000 6000 Q2 2012 2012-03-31 10-Q 22778 22778 -278 61 -4123 0001371474 No Smaller Reporting Company 1250000 Scout Exploration, Inc No No 20480 2723 1320 18144 1320 <!--egx--><p style='margin:0in 0in 0pt;line-height:normal'><b>7.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Financial instruments and risk management</b></p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.75in;text-indent:-0.25in;line-height:normal'>a)&nbsp;&nbsp;&nbsp; Fair value</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>The Company&#146;s financial instruments include cash and accounts payable and accrued liabilities. Unless otherwise noted, it is management&#146;s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying values, unless otherwise noted.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.75in;text-indent:-0.25in;line-height:normal'>b)&nbsp;&nbsp;&nbsp; Foreign exchange risk</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>The Company expects to raise equity predominantly in United States dollars. The Company is conducting business in Canada where financial transactions are based on the Canadian dollar. As such, the Company is subject to risks due to fluctuations in the exchange rates for the U.S. and Canadian dollar. The Company does not enter into derivative financial instruments to mitigate its exposure to foreign currency risk.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>At March 31, 2012 the Company had the following financial assets and liabilities denominated in Canadian dollars:</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <table cellspacing="0" cellpadding="0" border="0" style='margin:auto auto auto 39.25pt;border-collapse:collapse'> <tr> <td valign="bottom" width="504" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:1.5pt;border-left:#ece9d8;width:378.05pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'> </p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:1.5pt;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td> <td valign="bottom" width="77" colspan="2" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:57.95pt;padding-top:0in;border-bottom:black 1pt solid'> <p align="center" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:center'>CDN Dollars</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:1.5pt;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="504" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:378.05pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal;text-align:justify'>Cash</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.6pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal'>$</p></td> <td valign="bottom" width="71" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:53.35pt;padding-top:0in;border-bottom:#ece9d8'> <p align="right" style='background:white;margin:0in 0in 0pt;line-height:normal;text-align:right'>1,236</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:white;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:white;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td></tr> <tr> <td valign="bottom" width="504" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:378.05pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:justify'>Accounts payable and accrued liabilities</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.6pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>$</p></td> <td valign="bottom" width="71" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:53.35pt;padding-top:0in;border-bottom:#ece9d8'> <p align="right" style='background:#cceeff;margin:0in 0in 0pt;line-height:normal;text-align:right'>184,852</p></td> <td valign="bottom" width="6" style='border-right:#ece9d8;padding-right:0in;border-top:#ece9d8;padding-left:0in;background:#cceeff;padding-bottom:0in;border-left:#ece9d8;width:4.4pt;padding-top:0in;border-bottom:#ece9d8'> <p style='background:#cceeff;margin:0in 0in 0pt;line-height:normal'>&nbsp;</p></td></tr></table> <p style='margin:0in 0in 0pt;line-height:normal'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>At March 31, 2012 CDN dollar amounts were converted at a rate of 0.9975 Canadian dollars to 1 US dollar.</p> -7752 -8131 -25771 -4534 -3369 4390 144217 665 396760 396760 5100 35575 <!--egx--><p style='margin:0in 0in 0pt;line-height:normal'><b>1.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Nature of operations and going concern</b></p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>Scout Exploration, Inc. (the &#147;Company&#148;) was incorporated in the State of Nevada on February 1, 1999. The Company was initially engaged in the business of designing, developing and marketing educational products. On April 10, 2006 the Company changed its name from Virtual Curricula Corp. to Scout Exploration, Inc.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>The Company&#146;s continuing operations, as intended, are dependent on management&#146;s ability to raise required funding through future equity issuances, asset sales or a combination thereof, which is not assured. These financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of business.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>At March 31, 2012, the Company had suffered losses from exploration stage activities to date, and has a working capital deficit of $435,665. Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>uncertainty.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> 4548 930404 -417240 -1748 -1328 -507378 -40305 -55081 -1440319 -26808 -25585 25661 27521 11534 23464 223426 11534 12008 0.01 0.01 1000000 1000000 0 0 0 0 889554 4548 18072 57144 <!--egx--><p style='margin:0in 0in 0pt;line-height:normal'><b>3.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Resource properties</b></p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>On March 4, 2006 the Company signed a letter of agreement with a non-arms length private Canadian Corporation for a 100% interest in and to the Wheaton River AAV 1-9 Claims situated in the Whitehorse Mining District of the Yukon Territory, Canada. Terms of the purchase require a cash payment of $5,000 by March 31, 2006 (paid) and $20,000 on or before September 30, 2006 (subsequently deferred until such a time as the Company is able to secure financing), and the issuance of 500,000 common shares of the Company (issued at fair value of $0.05 per common share). The Vendor will retain a 3% net smelter royalty, up to 2% of which can be re-purchased for $2,000,000.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <!--egx--><p style='margin:0in 0in 0pt;line-height:normal'><b>5.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Related party transactions</b></p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.75in;text-indent:-0.25in;line-height:normal'>a)&nbsp;&nbsp;&nbsp; During the period ended March 31, 2012, directors&#146; fees of $12,000 (2011 - $12,000) were paid or accrued to two Directors of the Company.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.75in;text-indent:-0.25in;line-height:normal'>b)&nbsp;&nbsp;&nbsp; During the period ended March 31, 2012, office and administration fees and management fees of $23,139 (2011 - $11,411) were paid or accrued to corporations controlled by a Director of the Company.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.75in;text-indent:-0.25in;line-height:normal'>c)&nbsp;&nbsp;&nbsp;&nbsp; At March 31, 2012, $201,116 (September 30, 2011 - $161,083) owed to Directors and corporations controlled by a Director of the Company was included in accounts payable. The balance is due on demand, has no specific terms of repayments, is non-interest bearing and is unsecured, and accordingly fair value cannot be reliably determined.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.75in;text-indent:-0.25in;line-height:normal'>d)&nbsp;&nbsp;&nbsp; As of March 31, 2012, advances due to directors in the amount of $22,778 (September 30, 2011 &#150; $22,778) are unsecured, non-interest bearing and with no specific repayment terms.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>The above transactions occurred in the normal course of operations and were measured at the exchange value which represented the consideration established and agreed to by the related parties.</p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> 115100 5246 5246 4100 4100 <!--egx--><p style='margin:0in 0in 0pt;line-height:normal'><b>8.&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Subsequent events</b></p> <p style='margin:0in 0in 0pt;line-height:normal;text-align:justify'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>On September 14, 2011 and as amended on July 31, 2012, the Company entered into a letter of intent with IDS Offshore Inc. (&#147;IDS&#148;) pursuant to which the Company may acquire the exclusive rights to certain intellectual property and patents surrounding the rapid oil boom project held and developed by IDS (the &#147;Project&#148;), for total cash consideration of $4,265,000 payable at various dates over a 3 year period commencing on July 31, 2012, and issuance of 5,000,000 common shares of the Company on signing the amended letter of intent (issued), and a total 7,500,000 common shares of the Company upon completion of various phases of the Project.</p> <p style='margin:0in 0in 0pt;line-height:normal'>&nbsp;</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>In accordance with ASC 855 Company management reviewed all material events through filing of these financial statements and there are no additional material subsequent events to report.</p> <p style='margin:0in 0in 0pt 0.5in;line-height:normal;text-align:justify'>&nbsp;</p> 40305 55081 1010836 26808 25585 2930 1663 383514 437328 2930 1663 32723 -380584 -435665 1200 1200 23576 600 600 5593 8131 14771 8947000 0001371474 2011-10-01 2012-03-31 0001371474 2012-03-31 0001371474 2011-09-30 0001371474 1999-02-01 2012-03-31 0001371474 2012-01-01 2012-03-31 0001371474 2011-01-01 2011-03-31 0001371474 2010-10-01 2011-03-31 0001371474 2011-03-31 0001371474 2010-09-30 iso4217:USD shares iso4217:USD shares See Note 5. See Note 4. 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Related Party Disclosures
3 Months Ended
Mar. 31, 2012
Related Party Disclosures:  
Related Party Transactions Disclosure

5.             Related party transactions

 

a)    During the period ended March 31, 2012, directors’ fees of $12,000 (2011 - $12,000) were paid or accrued to two Directors of the Company.

 

b)    During the period ended March 31, 2012, office and administration fees and management fees of $23,139 (2011 - $11,411) were paid or accrued to corporations controlled by a Director of the Company.

 

c)     At March 31, 2012, $201,116 (September 30, 2011 - $161,083) owed to Directors and corporations controlled by a Director of the Company was included in accounts payable. The balance is due on demand, has no specific terms of repayments, is non-interest bearing and is unsecured, and accordingly fair value cannot be reliably determined.

 

d)    As of March 31, 2012, advances due to directors in the amount of $22,778 (September 30, 2011 – $22,778) are unsecured, non-interest bearing and with no specific repayment terms.

 

The above transactions occurred in the normal course of operations and were measured at the exchange value which represented the consideration established and agreed to by the related parties.

 

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Debt
3 Months Ended
Mar. 31, 2012
Debt:  
Debt Disclosure

4.             Notes payable

 

Notes payable comprise three notes.

 

The first note has a principal amount of $10,000, bears interest at 25% per annum, and was due on June 21, 2010. As further consideration the lender will be issued shares of the Company’s capital stock having an aggregate value of $2,500. The principal amount, interest, and shares are all still outstanding subsequent to the period ended March 31, 2012.

 

The second note has a principal amount of $5,000, bears interest at 15% per annum, and is due on demand.

 

The third note has a principal amount of $3,072, bears interest at 15% per annum, and is due on demand.

 

Included in notes payable is accrued interest in the amount of $6,949 (2011 – $3,238).

 

XML 16 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Interim Balance Sheets (Unaudited for March 31, 2012) (USD $)
Mar. 31, 2012
Sep. 30, 2011
Current assets    
Cash $ 1,663 $ 2,930
Total assets 1,663 2,930
Current liabilities    
Accounts payable and accrued liabilities 387,029 [1] 335,075 [1]
Notes payable 27,521 [2] 25,661 [2]
Due to related parties 22,778 [1] 22,778 [1]
Total current liabilities 437,328 383,514
Stockholders' Deficit    
Common stock 8,947 8,947
Subscriptions received in advance 4,100 4,100
Subscriptions receivable (5,246) (5,246)
Additional paid in capital 996,853 996,853
Deficit accumulated during the exploration stage (1,440,319) (1,385,238)
Total stockholders' deficit (435,665) (380,584)
Total liabilities and stockholders' deficit $ 1,663 $ 2,930
[1] See Note 5.
[2] See Note 4.
XML 17 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
Organization, Consolidation and Presentation of Financial Statements
3 Months Ended
Mar. 31, 2012
Organization, Consolidation and Presentation of Financial Statements:  
Nature of Operations

1.             Nature of operations and going concern

 

Scout Exploration, Inc. (the “Company”) was incorporated in the State of Nevada on February 1, 1999. The Company was initially engaged in the business of designing, developing and marketing educational products. On April 10, 2006 the Company changed its name from Virtual Curricula Corp. to Scout Exploration, Inc.

 

The Company’s continuing operations, as intended, are dependent on management’s ability to raise required funding through future equity issuances, asset sales or a combination thereof, which is not assured. These financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of business.

 

At March 31, 2012, the Company had suffered losses from exploration stage activities to date, and has a working capital deficit of $435,665. Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this

uncertainty.

 

Basis of Accounting

2.             Basis of presentation

 

The interim financial statements presented herein have been prepared by the Company in accordance with the accounting policies in its audited financial statements for the year ended September 30, 2011 and should be read in conjunction with the notes thereto.

 

In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary to provide a fair presentation of operating results for the interim period presented have been made. The results of operations for the period presented is not necessarily indicative of the results to be expected for the year.

 

Interim financial data presented herein are unaudited, except for the balance sheet at September 30, 2011, which has been derived from the audited financial statements at that date.

 

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XML 20 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Property, Plant, and Equipment
3 Months Ended
Mar. 31, 2012
Property, Plant, and Equipment:  
Property, Plant and Equipment Disclosure

3.             Resource properties

 

On March 4, 2006 the Company signed a letter of agreement with a non-arms length private Canadian Corporation for a 100% interest in and to the Wheaton River AAV 1-9 Claims situated in the Whitehorse Mining District of the Yukon Territory, Canada. Terms of the purchase require a cash payment of $5,000 by March 31, 2006 (paid) and $20,000 on or before September 30, 2006 (subsequently deferred until such a time as the Company is able to secure financing), and the issuance of 500,000 common shares of the Company (issued at fair value of $0.05 per common share). The Vendor will retain a 3% net smelter royalty, up to 2% of which can be re-purchased for $2,000,000.

 

XML 21 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Statement of Financial Position - Parenthetical (USD $)
Mar. 31, 2012
Sep. 30, 2011
Preferred Stock, Par Value $ 0.01 $ 0.01
Preferred Stock, Shares Authorized 1,000,000 1,000,000
Preferred Stock, Shares Issued 0 0
Preferred Stock, Shares Outstanding 0 0
Common Stock, Par Value $ 0.001 $ 0.001
Common Stock, Shares Authorized 50,000,000 50,000,000
Common Stock, Shares Issued 8,947,000 8,947,000
Common Stock, Shares Outstanding 8,947,000 8,947,000
XML 22 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information (USD $)
3 Months Ended
Mar. 31, 2012
Document and Entity Information:  
Entity Registrant Name Scout Exploration, Inc
Document Type 10-Q
Document Period End Date Mar. 31, 2012
Amendment Flag false
Entity Central Index Key 0001371474
Current Fiscal Year End Date --09-30
Entity Common Stock, Shares Outstanding 8,947,000
Entity Public Float $ 1,250,000
Entity Filer Category Smaller Reporting Company
Entity Current Reporting Status No
Entity Voluntary Filers No
Entity Well-known Seasoned Issuer No
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q2
XML 23 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
Interim Statements of Operations (Unaudited) (USD $)
3 Months Ended 6 Months Ended 158 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
Administrative expenses          
Accounting and audit $ 2,000 $ 2,000 $ 4,000 $ 4,000 $ 205,406
Bank charges and interest 943 820 1,896 2,499 20,494
Consulting fees         117,983
Directors' fees 6,000 [1] 6,000 [1] 12,000 [1] 12,000 [1] 134,000 [1]
Filing fees, dues and subscriptions   1,320   1,320 18,144
Foreign exchange loss (gain) 3,369 4,534 8,131 7,752 25,771
Legal 665   4,390   144,217
Magazine rights         5,100
Management fees         35,575
Office and administration 12,008 [1] 11,534 [1] 23,464 [1] 11,534 [1] 223,426 [1]
Promotion and travel         57,144
Transfer agent 600 600 1,200 1,200 23,576
Total administrative expenses 25,585 26,808 55,081 40,305 1,010,836
Resource property expenses          
Acquisition costs         30,000
Exploration costs         2,723
Total resource property expenses         32,723
Loss from impairment of investment         396,760
Net loss $ (25,585) $ (26,808) $ (55,081) $ (40,305) $ (1,440,319)
Basic and diluted loss per share $ 0.00 $ 0.00 $ (0.01) $ 0.00   
Basic and diluted weighted average shares outstanding 8,947,000 8,947,000 8,947,000 8,947,000   
[1] See Note 5.
XML 24 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Subsequent Events
3 Months Ended
Mar. 31, 2012
Subsequent Events:  
Subsequent Events

8.             Subsequent events

 

On September 14, 2011 and as amended on July 31, 2012, the Company entered into a letter of intent with IDS Offshore Inc. (“IDS”) pursuant to which the Company may acquire the exclusive rights to certain intellectual property and patents surrounding the rapid oil boom project held and developed by IDS (the “Project”), for total cash consideration of $4,265,000 payable at various dates over a 3 year period commencing on July 31, 2012, and issuance of 5,000,000 common shares of the Company on signing the amended letter of intent (issued), and a total 7,500,000 common shares of the Company upon completion of various phases of the Project.

 

In accordance with ASC 855 Company management reviewed all material events through filing of these financial statements and there are no additional material subsequent events to report.

 

XML 25 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Investments, All Other Investments
3 Months Ended
Mar. 31, 2012
Investments, All Other Investments:  
Financial Instruments Disclosure

7.             Financial instruments and risk management

 

a)    Fair value

 

The Company’s financial instruments include cash and accounts payable and accrued liabilities. Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying values, unless otherwise noted.

 

b)    Foreign exchange risk

 

The Company expects to raise equity predominantly in United States dollars. The Company is conducting business in Canada where financial transactions are based on the Canadian dollar. As such, the Company is subject to risks due to fluctuations in the exchange rates for the U.S. and Canadian dollar. The Company does not enter into derivative financial instruments to mitigate its exposure to foreign currency risk.

 

At March 31, 2012 the Company had the following financial assets and liabilities denominated in Canadian dollars:

 

 

CDN Dollars

 

Cash

 

$

1,236

 

Accounts payable and accrued liabilities

 

$

184,852

 

 

At March 31, 2012 CDN dollar amounts were converted at a rate of 0.9975 Canadian dollars to 1 US dollar.

XML 26 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
Interim Statements of Cash Flows (Unaudited) (USD $)
6 Months Ended 158 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
Cash flows from operating activities      
Net loss $ (55,081) $ (40,305) $ (1,440,319)
Services settled by issuance of stock     115,100
Loss from impairment of investment     396,760
Expenses paid by subsidiary and forgiven     20,480
Unrealized foreign exchange 8,131 5,593 14,771
Accrued interest 1,860 1,854 9,449
Accounts payable and accrued liabilities (increase/decrease) 43,762 31,110 376,381
Net cash provided by used in operating activities (1,328) (1,748) (507,378)
Cash flows from investing activities      
Acquisition of investment     (417,240)
Net cash provided by used in investing activities     (417,240)
Cash flows from financing activities      
Proceeds from Issuance of common stock     889,554
Advances from related parties     22,778
Proceeds from issuance of note   4,548 18,072
Net cash provided by used in financing activities   4,548 930,404
Effect of exchange rate changes on cash 61 (278) (4,123)
(Decrease) increase in cash (1,267) 2,522 1,663
Cash at beginning of the period 2,930 59  
Cash at end of the period $ 1,663 $ 2,581 $ 1,663
XML 27 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Cash and Cash Equivalents
3 Months Ended
Mar. 31, 2012
Cash and Cash Equivalents:  
Cash and Cash Equivalents Disclosure

6.             Supplemental disclosure with respect to cash flows

 

Supplemental cash flow information for the six months ended March 31 is as follows:

 

 

2012

 

 

2011

 

Interest paid

 

$

-

 

 

$

-

 

Income taxes paid

 

$

-

 

 

$

-

 

 

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