0001524777-13-000362.txt : 20130819 0001524777-13-000362.hdr.sgml : 20130819 20130819171749 ACCESSION NUMBER: 0001524777-13-000362 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20130630 FILED AS OF DATE: 20130819 DATE AS OF CHANGE: 20130819 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Solo International, Inc CENTRAL INDEX KEY: 0001501845 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 680680819 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-170096 FILM NUMBER: 131048997 BUSINESS ADDRESS: STREET 1: 871 CORONADO CENTER DRIVE, SUITE 200 CITY: HENDERSON STATE: NV ZIP: 89052 BUSINESS PHONE: 702-330-3285 MAIL ADDRESS: STREET 1: 871 CORONADO CENTER DRIVE, SUITE 200 CITY: HENDERSON STATE: NV ZIP: 89052 10-Q 1 form10q.htm FORM 10-Q form10q.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[Missing Graphic Reference]
 FORM 10-Q
[Missing Graphic Reference]
 
x  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2013

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934
 
For the transition period from ______ to _______

Commission File Number 333-170096
 
 SOLO INTERNATIONAL, INC.
 (Name of small business issuer in its charter)
     
Nevada
 
68-0680819
(State of incorporation)
 
(I.R.S. Employer Identification No.)
     
 871 Coronado Center Drive Suite 200, Henderson, NV 89052
 (Address of principal executive offices)
     
 (702) 330-3285
 (Registrant’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  [X]   No   [   ]
 
 
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 
 
Yes  [X] No  [   ]
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  [    ]    Accelerated Filer  [    ]
         
 Non-Accelerated Filer  [    ]    Smaller Reporting Company  [ X ]
                                                                     
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  
 
Yes  [  ] No   [ X ]
 
As of August 14, 2013, there were 288,200,000 shares of the registrant’s $0.001 par value common stock issued and outstanding.
 
 

 
SOLO INTERNATIONAL, INC. *

TABLE OF CONTENTS
 
  
Page
PART I.   FINANCIAL INFORMATION
 
  
 
ITEM 1.
  3
ITEM 2.
  4
ITEM 3.
  7
ITEM 4.
  7
  
 
PART II. OTHER INFORMATION
 
  
 
ITEM 1.
  8
ITEM 1A.
  8
ITEM 2.
  8
ITEM 3.
  8
ITEM 4.
  8
ITEM 5.
  9
ITEM 6.
  9
  SIGNATURE  10

Special Note Regarding Forward-Looking Statements
 
Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Solo International, Inc. (the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

*Please note that throughout this Quarterly Report, and unless otherwise noted, the words "we," "our," "us," “SLIO,” “SOLO,” the "Company," refers to Solo International, Inc.
 
2

 
PART I - FINANCIAL INFORMATION
 
ITEM 1.           FINANCIAL STATEMENTS
 
SOLO INTERNATIONAL, INC.
(An Exploration Stage Company)
Consolidated Financial Statements
(Expressed in US dollars)
June 30, 2013
 
Financial Statement Index
 
 
3

 
SOLO INTERNATIONAL, INC.
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEETS
 
   
June 30,
2013
(unaudited)
   
September 30,
2012
(audited)
 
ASSETS
           
Current
           
Cash
  $ 3,323     $ 44,561  
Prepaid expense
    2,021       4,593  
Total Current Assets
    5,344       49,154  
Total Assets
  $ 5,344     $ 49,154  
                 
LIABILTIES  AND STOCKHOLDERS’ EQUITY (DEFICIENCY)
               
Current liabilities
               
Accounts payable and accrued liabilities
  $ 63,921     $ 29,592  
Advances from related parties
    6,417       6,417  
Convertible promissory notes, net (Note 5)
    486,206       321,421  
Total Current Liabilities
    556,544       357,430  
                 
STOCKHOLDERS’ EQUITY (DEFICIENCY)
               
       Common stock: 900,000,000 shares authorized, at $0.001 par value
288,200,000 shares issued and outstanding as at June 30, 2013 and September 30, 2012
    288,200       288,200  
Capital in excess of par value
    48,157       8,351  
Deficit accumulated during the exploration stage
    (887,557 )     (604,827 )
Total Stockholders’ Equity (Deficiency)
    (551,200 )     (308,276 )
Total Liabilities and Stockholders’ Equity (Deficiency)
  $ 5,344     $ 49,154  
 
The accompanying notes are an integral part of these consolidated financial statements.
 
 
F-1

 
SOLO INTERNATIONAL, INC.
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
For the three month and nine month periods ended June 30, 2013 and 2012
 and for the period from
April 30, 2010 (date of inception) to June 30, 2013
(Unaudited)

   
Three months ended June 30,
   
Nine months ended June 30,
   
April 30, 2010
(date of inception)
to June 30,
 
   
2013
   
2012
   
2013
   
2012
   
2013
 
                               
REVENUE
  $ -     $ -     $ -     $ -     $  
                                         
EXPENSES
                                       
Exploration expense
    3,877       -       17,630       -       35,445  
Professional fees
    6,109       8,796       40,090       54,236       116,422  
Management fees
    7,500       7,500       22,500       22,500       52,500  
Impairment on mineral claims
    -       20,000       -       225,000       225,000  
Other general and administrative expenses
    10,423       14,138       57,570       51,207       130,477  
OPERATING LOSS
    (27,909 )     (50,434 )     (137,790 )     (352,943 )     (559,844 )
                                         
OTHER INCOME (EXPENSES)
                                       
Interest expenses
    (25,489 )     (58,997 )     (144,940 )     (116,207 )     (327,713 )
                                         
NET LOSS
  $ (53,398 )   $ (109,431 )     (282,730 )     (469,150 )     (887,557 )
                                         
Basic and diluted loss per share
  $ (0.00 )*   $ (0.00 )*   $ (0.00 )*   $ (0.00 )*        
                                         
Weighted average number of shares outstanding, basic and diluted
    288,200,000       290,314,286       288,200,000       355,556,934          
                                         
 
*
Less than $0.01 per share
 
The accompanying notes are an integral part of these consolidated financial statements.

 
F-2

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIENCY
For the Period from April 30, 2010 (date of inception) to June 30, 2013

               
Accumulated
       
                     
Deficit
       
               
Capital in
   
During the
       
   
Common Stock
   
Excess of
   
development
       
   
Shares
   
Amount
   
Par value
   
Stage
   
Total
 
Balance April 30, 2010
   
-
   
$
-
   
$
-
   
$
-
   
$
-
 
Issuance of common shares for cash
   
300,000,000
     
300,000
     
(297,000
)
   
-
     
3,000
 
Issuance of common shares for cash
   
72,000,000
     
72,000
     
(57,600
)
   
-
     
14,400
 
Issuance of common shares for cash
   
16,000,000
     
16,000
     
(11,200
)
   
-
     
4,800
 
Net loss for the period
   
-
     
-
     
-
     
(714
)
   
(714
)
Balance, September 30, 2010
   
388,000,000
     
388,000
     
(365,800
)
   
(714
)
   
21,486
 
Net loss for the year ended September 30, 2011
   
-
     
-
     
-
     
(25,360
)
   
(25,360
)
Balance, September 30, 2011
   
388,000,000
     
388,000
     
(365,800
)
   
(26,074
)
   
(3,874
)
Beneficial conversion features
   
  -
     
  -
     
197,176
     
  -
     
197,176
 
Valuation of warrants
   
  -
     
  -
     
57,175
     
  -
     
57,175
 
Shares returned
   
(100,000,000
)
   
(100,000
)
   
100,000
     
  -
     
-
 
Issuance of common shares for property
   
200,000
     
200
     
19,800
     
  -
     
20,000
 
Net loss for the year ended September 30, 2012
   
  -
     
  -
     
  -
     
(578,753
)
   
(578,753
)
Balance, September 30, 2012
   
288,200,000
     
288,200
     
8,351
     
(604,827
)
   
(308,276
)
Beneficial conversion features
   
  -
     
  -
     
35,736
     
-
     
35,736
 
Valuation of warrants
   
  -
     
-
     
4,070
     
-
     
4,070
 
Net loss for the period ended June 30, 2013
   
  -
     
  -
     
-
     
(282,730
)
   
(282,730
)
Balance, June 30, 2013
   
288,200,000
   
$
288,200
   
$
48,157
     
(887,557
)
   
(551,200
)

The accompanying notes are an integral part of these consolidated financial statements.

 
F-3

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine month periods ended June 30, 2013 and 2012
 and for the period from
April 30, 2010 (date of inception) to June 30, 2013
(Unaudited)

   
Ninemonths ended June 30, 2013
   
Ninemonths ended June 30, 2012
   
From inception (April30, 2010) to June 30, 2013
 
CASH FLOWS FROM OPERATING ACTIVITIES:
                 
Net loss
  $ (282,730 )   $ (469,150 )   $ (887,557 )
Interest expense-Amortization on discount of convertible promissory notes
    109,590       99,094       265,362  
Impairment on mineral claims
    -       225,000       225,000  
Adjustment to reconcile net loss to net cash (used in) operating activities:
                       
(Increase) decrease in prepaid expense
    2,572       (9,251 )     (2,021 )
Increase (decrease) in accounts payable and accrued liabilities
    34,330       19,174       63,922  
Net cash provided by (used) in operating activities
    (136,238 )     (135,133 )     (335,294 )
                         
CASH FLOWS FROM INVESTING ACTIVITIES:
                       
Purchase mineral claims
    -       (205,000 )     (205,000 )
Net cash used in investing activities
    -       (205,000 )     (205,000 )
                         
CASH FLOWS FROM FINANCING ACTIVITIES:
                       
Advances from related party
    -       1,778       6,417  
Proceeds from convertible notes payable
    95,000       385,000       515,000  
Proceeds from issuance of common stock
    -       -       22,200  
Net cash provided by financing activities
    95,000       386,778       543,617  
                         
Increase (decrease) in cash during the period
    (41,238 )     46,645       3,323  
Cash, beginning of period
    44,561       32       -  
Cash, end of period
  $ 3,323     $ 46,677     $ 3,323  
                         
Supplement cash flow information:
                       
Cash paid for:
                       
Interest
  $ -     $ -     $ -  
Taxes
  $ -     $ -     $ -  
                         
Non-cash transactions:
                       
Shares issued for acquisition of mineral property
  $ -     $ 20,000     $ 20,000  

The accompanying notes are an integral part of these consolidated financial statements.
 
 
F-4

 
SOLO INTERNATIONAL, INC.
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

1. ORGANIZATION

SOLO INTERNATIONAL, INC. was founded in the State of Nevada on April 30, 2010 as a Poland based corporation intending to provide services in interior architectural design in Poland.

On October 12, 2011, Mr. Michel Plante acquired control of three million (3,000,000) pre-split shares of the Company’s issued and outstanding common stock, representing approximately 77.32% of the Company’s total issued and outstanding common stock, from Mr. YuryShcharbakou in accordance with a stock purchase agreement by and between Mr. Plante and Mr. Shcharbakou, thus effecting a change in control of the Company.

On October 13, 2011, the Board of Directors of the Company authorized a forward split of its issued and outstanding common shares, whereby every one (1) old share of common stock will be exchanged for one hundred (100) new shares of the Company's common stock.

The effect of the stock split has been recognized retroactively in the stockholders’ deficit accounts as of April 30, 2010, and in all shares and per share data in the financial statements.

With the change in control of the Company, management determined not to pursue its operations in Poland and determined to enter into the mining business in the Province of Quebec and incorporated a wholly-owned Quebec subsidiary, 9252-4768 Quebec Inc. On November 15, 2011, the Company, through its wholly-owned Quebec subsidiary, entered into a Property Option Agreement with 9228-6202 Quebec Inc., a Quebec corporation. Pursuant to the Option Agreement, 9252-4768 Quebec Inc. acquired the exclusive option to acquire an undivided 100% right, title and interest in and to certain mineral claims located in Portland Township, Outaouais, Quebec subject to a royalty reserved to 9228-6202 Quebec Inc.

The Company is an Exploration Stage Company, as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") 915, Development Stage Entities. The Company's principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable.

Since Inception (April 30, 2010) through June 30, 2013, the Company has not generated any revenue and has an accumulated deficit of $887,557.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Statements
The accompanying interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Consolidated operating results for the three and nineperiod ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending September 30, 2013.  For further information, refer to the consolidated financial statements and footnotes thereto included in our Form 10-K Report for the fiscal year ended September 30, 2012 filed with the Securities and Exchange Commission on December 31, 2012.
 
F-5

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Basis of Presentation
The unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim consolidated financial information and pursuant to the rules and regulations of the SEC. Accordingly; they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. However, management believes that the disclosures made are adequate to make the information not misleading. Management has evaluated subsequent events through the date the financial statements were issued.

Going Concern
The consolidated financial statements have been prepared on a going concern basis that 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 $887,557 as of June 30, 2013 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. These financials do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty.

Cash and Cash equivalents
For purposes of Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity date of six months or less to be cash equivalents.

Use of Estimates and Assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Foreign Currency Translation
The Company's functional currency and its reporting currency is the United States dollar.

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.

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.
 
F-6

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Basic and Diluted Loss Per Share
The Company computes loss per share in accordance with “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. Diluted loss per share is the same as basic loss per share, because the effects of the additional securities, a result of the net loss would be anti-dilutive.
Stock-based Compensation

The Company records stock based compensation in accordance with the guidance in ASC Topic 718, which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

Mineral Property Costs
Mineral exploration and development costs are accounted for using the successful efforts method of accounting.

Property acquisition costs - Mineral property acquisition costs are capitalized as mineral exploration properties. Upon achievement of all conditions necessary for reserves to be classified as proved, the associated acquisition costs are reclassified to prove properties

Exploration costs - Geological and geophysical costs and the costs of carrying and retaining undeveloped properties are expensed as incurred.

Impairment of Mineral Properties
Unproved mineral properties are assessed at each reporting period for impairment of value, and a loss is recognized at the time of the impairment by providing an impairment allowance. An asset would be impaired if the undiscounted cash flows were less than its carrying value. Impairments are measured by the amount by which the carrying value exceeds its fair value. Because the Company uses the successful efforts method, the Company assesses its properties individually for impairment, instead of on an aggregate pool of costs. Impairment of unproved properties is based on the facts and circumstances surrounding each lease and is recognized based on management’s evaluation. Management’s evaluation follows a two-step process where (1) recoverability of the carrying value of the asset is reviewed to determine if there is sufficient value recoverable to support the capitalized value at the report date; and, (2) If assets fail the recoverability test, impairment testing is conducted, including the evaluation of various criteria such as: prior history of successful operations; production currently in place and/or future projected cash flows (if any); reserve reports or evaluations from which management can prepare future cash flow analyses; the Company’s ability to monetize the asset(s) under evaluation; and, Management’s intent regarding future development.
 
F-7

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Beneficial Conversion Feature
From time to time, the Company may issue convertible notes that may have conversion prices that create an embedded beneficial conversion feature pursuant to the Emerging Issues Task Force guidance on beneficial conversion features. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted with the debt. In accordance with this guidance, the intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discountis amortized to interest expense over the life of the note using the effective interest method.
  
3. MINERAL PROPERTY

On November 15, 2011, the Company through its wholly-owned Quebec subsidiary, 9252-4768 Quebec Inc., entered into a Property Option Agreement with 9228-6202 Quebec Inc., a Quebec corporation (the “Optionor”). Pursuant to the option agreement, the Company received the exclusive option to acquire an undivided 100% right, title and interest in and to certain mineral claims located in Portland Township, Outaouais, Quebec subject to a royalty reserved to the Optionor.  To fully exercise the option and acquire an undivided 100% right, title and interest in and to the Property, the Company was required to: 1) pay an aggregate sum of two hundred and five thousand dollars ($205,000) to Optionor; 2) incur an aggregate of at least sixty-five thousand dollars ($65,000) of expenditures on or with respect to the Property; and 3) issue to Optionor an aggregate number of restricted shares of common stock of the Company equal to twenty thousand US dollars ($20,000). On, November 27, 2012, the Company’s wholly owned subsidiary, 9252-4768 Quebec Inc. entered into a second addendum to the original property option agreement with 9228-6202 Quebec Inc. whereby the parties acknowledged that 9252-4768 Quebec Inc. had earned its 100% right, title and interest in and to certain mineral claims, located in Portland Township, Outaouais, Quebec. The cash payments, expenditures and stock issuance were scheduled to be completed as follows:

Cash Payments:

The Company is required to pay the cash payments to Optionor, all of which have been paid as of June 30, 2013, in the following amounts and by the dates described below:

i.
$50,000 within 2 business days of the execution of the Option Agreement
 
ii.
$70,000 within 30 days following the First Option Payment

iii.
$70,000 within 30 days following the Second Option Payment
 
iv.
$15,000 within 30 days following the Third Option Payment

Expenditures:

During the nine month period ended June 30, 2013, the Company expended a total of $17,630 for exploration expenses.

Stock Issuances:

The Company was required to issue an aggregate number of restricted shares of common stock of the Company equal to twenty thousand US dollars ($20,000) pursuant to the terms and conditions of the Property Option Agreement, The Company was required to issue the shares within 10 days of the completion of the forward split or no later than 90 days of execution of the Property Option Agreement.   The Company issued the shares on May 8, 2012 and issued a total of 200,000 shares of common stock at a deemed price of $0.10 per share which was the first trading price of the stock after the completion of the forward split.
 
F-8

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

3. MINERAL PROPERTY – continued

The Company made cash payments in the amount of $205,000 and issued a total of 200,000 shares of common stock at a deemed price of $0.10 per share to 9228-6202 Quebec Inc. pursuant to the cash payment and stock payment schedule noted above, which amount was capitalized as option costs on the mineral property as of September 30, 2012. At the close of the period ended September 30, 2012, the Company evaluated the recoverability of the amount paid for the option and determined to impair the amount in full, as the Company is currently in the exploration phase, with no proven or probable reserves having yet been determined.

On November 27, 2012, the Option Agreement was further amended to revise the requirement to expend the $65,000 on exploration expenditures to read that the Optionee has earned its 100% right and interest in the Property for the payment of all expenditures to November 27, 2012 and for allowing the Optionor to utilize a portion of the expenditures expended by the Optionee to apply to certain of the Optionor’s claims.  The Company has transferred the title to the Property to its wholly owned subsidiary, 9252-4768 Quebec Inc.

4. COMMON STOCK

The authorized capital of the Company is 900,000,000 common shares with a par value of $ 0.001 per share.

As of June 30, 2013, 288,200,000 common stock shares were issued and outstanding.

5.  CONVERTIBLE PROMISSORY NOTE, NET

(i)
Craigstone Ltd. (“Craigstone”)

On November 4, 2011, the Company entered into a Securities Purchase Agreement with Craigstone pursuant to which the Company received $100,000 as a loan from Craigstone in exchange for one (1) Unit consisting of: a Convertible Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and a three (3) year Warrant (the “Warrant”) to purchase two hundred fifty thousand (250,000) shares of the Company’s Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The Note earns simple interest accruing at ten percent (10%) per annum and was due on or before the twelfth month anniversary of the date of execution.  The due dates were extended as described further herein.

During the fiscal year ended September 30, 2012, the Company entered into additional Securities Purchase Agreements with Craigstone pursuant to which the Company received  collectively $320,000 as  loans whereby each funding received  one (1) Unit consisting of: a Convertible Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and a three (3) year Warrant (the “Warrant”).   Collectively under the Securities Purchase Agreements, Craigstone was granted the rights to purchase seven hundred twelve thousand five hundred (712,500) shares of the Company’s Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The Notes earn simple interest accruing at ten percent (10%) per annum and weredue on or before the twelfth month anniversary of the date of execution.The due dates were extended as described further herein.
 
F-9

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

5.  CONVERTIBLE PROMISSORY NOTE, NET - continued

During the current nine month period ended June 30, 2013, the Company entered into three additional Securities Purchase Agreements with Craigstone. pursuant to which the Company received a total of $45,000 as  loans in exchange for which each agreement receivedone (1) Unit consisting of a Convertible Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and collectively received a three (3) year Warrant (the “Warrant”) to purchase one hundredtwelve thousand five hundred (112,500) shares of the Company’s Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date.The Notes earn simple interest accruing at ten percent (10%) per annum and is due on or before the twelfth month anniversary of the date of execution.

The beneficial conversion feature resulting from the discounted conversion price compared to market price was valued on the date of grant to be $215,439 on the notes, and $60,439 on the warrants. This value was recorded as a discount on debt and offset to additional paid in capital. Amortization of the discount was respectively $8,467 (2012 - $50,227) and $102,729 (2012 - $99,094) for the three and nine months ended June 30, 2013, which amount has been recorded as interest expense.

   
June 30, 2013
 
September 30, 2012
 
Issue Date
Convertible Promissory Note – face value, due on November  4, 2012
$
100,000
 
$
100,000
 
$
100,000
Convertible Promissory Note – face value, due on January 4, 2013
 
115,000
   
115,000
   
115,000
Convertible Promissory Note – face value, due on February 3, 2013
 
85,000
   
85,000
   
85,000
Convertible Promissory Note – face value, due on March 8, 2013
 
35,000
   
35,000
   
35,000
Convertible Promissory Note – face value, due on May 11, 2013
 
25,000
   
25,000
   
25,000
Convertible Promissory Note – face value, due on June 19, 2013
 
25,000
   
25,000
   
25,000
Convertible Promissory Note – face value, due on September 11, 2013
 
35,000
   
35,000
   
35,000
Convertible Promissory Note – face value, due on October 19, 2013
 
15,000
         
15,000
Convertible Promissory Note – face value, due on October 26, 2013
 
15,000
         
15,000
Convertible Promissory Note – face value, due on May 30, 2014
 
15,000
         
15,000
Total convertible promissory note – face value
 
465,000
   
420,000
   
465,000
Less: beneficial conversion feature
 
(13,711)
   
(74,290)
   
(215,439)
Warrant discount
 
(3,665)
   
(24,289)
   
(60,439)
 
$
447,624
 
$
321,421
 
$
189,122

Interest expenses:
 
For the three month period
 
For the nine month period
 
 
June 30,
2013
 
June 30,
2012
 
June 30,
2013
 
June 30,
2012
 
Amortization of debt discount
  $ 8,467     $ 50,227     $ 102,729     $ 99,094  
Interest at contractual rate
    11,219       8,770       33,473       17,113  
Totals
  $ 19,686     $ 58,997     $ 136,202     $ 116,207  
 
 
F-10

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

5.  CONVERTIBLE PROMISSORY NOTE, NET - continued

On January 31, 2013, Craigstone agreed to extend the maturity dates of certain notes due and payable on November 4, 2012, January 4, 2012 and February 3, 2013 for a period of one year or greater so that the respective notes are now due and payable on November 4, 2013, November 4, 2014 and February 3, 2014.

On May 31, 2013, Craigstoneagreed to extend the maturity dates of certain notes due and payable on March 8, 2013, May 11, 2013 and June 19, 2013 to March 8, 2014, May 11, 2014 and June 19, 2014.

 
(ii)
Adams Ale Inc.

EffectiveFebruary 15, 2013, the Company entered into a Securities Purchase Agreement with Adams Ale Inc.(“Adams”) pursuant to which Adams agreed to undertake a private placement in the amount of $100,000.  On May 1, 2013, Adams had not fully funded the private placement, having funded an amount of $50,000 and agreed to convert to a Convertible Promissory Note on the same commercial terms as the Craigstone notes discussed above.   The Company agreed to enter into a Securities Purchase Agreement with Adams for the funded amount of $50,000 in exchange for one (1) Unit consisting of: a Convertible Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and a three (3) year Warrant (the “Warrant”) to purchase one hundred twenty-five thousand (125,000) shares of the Company’s Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The Note earns simple interest accruing at ten percent (10%) per annum and is due on or before the twelfth month anniversary of the date of execution.
 
The beneficial conversion feature resulting from the discounted conversion price compared to market price was valued on the date of grant to be $17,473 on the note, and $806 on the warrants. This value was recorded as a discount on debt and offset to additional paid in capital. Amortization of the discount was respectively $4,557 (2012 - $nil) and $6,862 (2012 - $nil) for the three and nine months ended June 30, 2013, which amount has been recorded as interest expense.

   
June 30, 2013
   
Issue Date
 
Convertible Promissory Note – face value, due on February 15, 2014
    50,000       50,000  
Total convertible promissory note – face value
    50,000       50,000  
Less: beneficial conversion feature
    (10,914 )     (17,473 )
Warrant discount
    (503 )     (806 )
    $ 38,582     $ 31,721  

Interest expenses:
 
For the three month period
   
For the nine month period
 
 
June 30,
2013
 
June 30,
2012
   
June 30,
2013
   
June 30,
2012
 
Amortization of debt discount
  $ 4,557     $ -     $ 6,862     $ -  
Interest at contractual rate
    1,247       -       1,877       -  
Totals
  $ 5,804     $ -     $ 8,739     $ -  
 
 
F-11

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

6. ADVANCE FROM RELATED PARTIES

The Company entered into a management consulting agreement with the Company’s sole director and officer, commencing October 1, 2012. Under the terms of the agreement, payments of $2,500 a month, are payable on the 1st of each month.  During the nine month period ended June 30, 2013, the Company made cash payments of $22,500under the management consulting agreement.

The Company’s prior Director has loans outstanding with the Company as at June 30, 2013 of $6,417. The amount is due on demand, non-interest bearing and unsecured.

7. WARRANTS

An aggregate of 1,200,000 warrants were issued as at June 30, 2013 as required under the terms of a series of Securities Purchase Agreements discussed above in Note 5.  The warrants are exercisable for a period of three years from the date of issue, exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of the Company’s common stock for the thirty (30) trading days immediately preceding the exercise date.

The fair value of the 1,200,000 warrants totaling $61,245 was recorded as a discount on the convertible notes payable upon issuance. This value was calculated using the Black-Scholes model. The key inputs for the calculation are shown below:
 
Stock Price on Measurement Date
$
0.0068 ~ 0.135
 
Exercise Price of Warrants
$
0.0051 ~ 0.101
 
Term of Warrants (years)
 
3.00
 
Computed Volatility
 
125.84% ~ 147.91%
 
Annual Dividends
 
0.00
%
Discount Rate
 
0.33 ~ 0.49
%

A summary of the Company’s warrants as of June 30, 2013 and September 30, 2012 as follows:

 
June 30, 2013
        
September 30, 2012
 
   
Warrants
   
Weighted average
 exercise price
   
Warrants
 
Weighted average
exercise price
 
Outstanding at the beginning of the period
   
962,500
   
$
0.069
     
-
 
$
-
 
Granted
   
237,500
     
0.024
     
962,500
 
$
0.069
 
Exercised
   
-
             
-
   
-
 
Cancelled
   
-
             
-
 
$
-
 
Outstanding at the end of the period
   
1,200,000
   
$
0.060
     
962,500
 
$
0.069
 
Vested and exercisable at the end of period
   
1,200,000
             
962,500
       
Weighted average fair value per share of warrants granted during the period
         
$
0.060
         
$
0.069
 
 
 
F-12

 
SOLO INTERNATIONAL, INC,
(An Exploration Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2013
(Unaudited)

7. WARRANTS (continued)

The following table summarizes information regarding stock purchase warrants outstanding at June 30, 2013:

   
Warrants Outstanding
 
Warrants Exercisable
 
Exercise prices
 
Number
Outstanding
 
Weighted
average
remaining
contractual
life (years)
 
Weighted
average
exercise
price
 
Number
exercisable
 
Weighted
average
remaining
contractual
life (years)
 
Weighted
average
exercise
price
 
$
0.00563 to  0.10
   
1,200,000
   
1.80
 
$
0.060
 
1,200,000
 
1.80
 
$
0.060
 
 
8. RECLASSIFICATIONS 
 
Certain amounts in the prior period’s financial statements have been reclassified to conform to the current year presentation and to break out Adams Ale Funding that had previously been combined with Craigstone Funding  (refer to Note 5 above).
 
9. SUBSEQUENT EVENTS

The Company has evaluated subsequent events from the balance sheet date through the date that the financial statements were issued and determined that there were no other events to disclose.
 
F-13

 
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION
 
FORWARD-LOOKING STATEMENTS
 
This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our 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 those forward-looking statements.  You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms.  These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements.  Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.  We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

RESULTS OF OPERATIONS

Working Capital

  
 
June 30, 2013
$
   
September 30, 2012
$
 
Current Assets
    5,344       49,154  
Current Liabilities
    556,544       357,430  
Working Capital (Deficit)
    (551,200 )     (308,276 )

Cash Flows

  
 
June 30, 2013
$
   
June 30, 2012
$
 
Cash Flows from (used in) Operating Activities
    (136,238 )     (135,133 )
Cash Flows from (used in) Investing Activities
    -       (205,000 )
Cash Flows from (used in) Financing Activities
    95,000       386,778  
Net Increase (decrease) in Cash During Period
    (41,238 )     46,645  

Operating Revenues

Operating revenues for the periods ended June 30, 2013 and 2012 were $0.

Operating Expenses and Net Loss

Comparison of three month periods ended June 30, 2013 and 2012

Operating and other expenses for the three month period ended June 30, 2013 totaled $27,909 and are comprised of $6,109 in professional fees, $7,500 in fees paid under a related party management contract, $10,423 in other general administrative expenses, and $3,877 in exploration expenses.   In addition the Company recorded $25,489 as interest expenses, $13,024of which was the amortization of the debt discount from the beneficial conversion feature and warrant discount resulting from convertible promissory notes.

As compared to operating expenses for the period ended June 30, 2012 which totaled $50,434 and are comprised of $20,000 for impairment of mineral claims, $8,796 in professional fees, $7,500 in fees paid under a management contract and $14,138 in other general administrative expenses.   In addition the Company recorded $58,997 as interest expenses, $39,525 of which was the amortization of the debt discount from the beneficial conversion feature and warrant discount resulting from convertible promissory notes.
 
4

 
Net loss for the period ended June 30, 2013 was $53,398 as compared to $109,431 for the three month period ended June 30, 2012.  The decrease in operating expenses and losses is predominantly due to the impairment of our mineral claims in the period ended June 30, 2012 with no comparable impairment during the period ended June 30, 2013 and the fact that interest expenses decreased from $58,997 (2012) to $25,489 (2013).

Comparison of nine month periods ended June 30, 2013 and 2012

Operating and other expenses for the nine month period ended June 30, 2013 totaled $137,790 and are comprised of $40,090 in professional fees, $22,500 in fees paid under a related party management contract, $57,570 in other general administrative expenses, and $17,630 in exploration expenses.   In addition the Company recorded $144,940 as interest expenses, $109,590of which was the amortization of the debt discount from the beneficial conversion feature and warrant discount resulting from convertible promissory notes.

Operating expenses for the nine month period ended June 30, 2012totaled $352,943 and were comprised of $225,000 for impairment of mineral claims, $54,236 in professional fees, $22,500 in fees paid under a management contract and $51,207 in other general administrative expenses.   In addition the Company recorded $116,207 as interest expenses, $99,094 of which was the amortization of the debt discount from the beneficial conversion feature and warrant discount resulting from convertible promissory notes.

Net loss for the nine month period ended June 30, 2013 was $282,730as compared to $469,150for the same period ended June 30, 2012.  The decrease in operating expenses and losses is predominantly due to the impairment of our mineral claims in the period ended June 30, 2012 with no comparable impairment during the period ended June 30, 2013.   There were no exploration expenses for the period ended June 30, 2012 while we had exploration expenses of $17,630 for the period ended June 30,2013,  other general and administrative expenses increased from $51,207 for the period ended June 30, 2012 to $57,570 for the period ended June 30, 2013, the  increases in exploration expenses and other general and administration expenses was partially offset by a decrease in professional fees from $54,236 as at June 30, 2012 to $40,090 as at June 30, 2013.

Liquidity and Capital Resources

As at June 30, 2013, the Company had total assets of $5,344 compared to $49,154 as at September 30, 2012. The decrease in total assets is attributable to the payment of operation costs offset by funds raised of $95,000 during the period.

As at June 30, 2013, the Company had total liabilities of $556,544 as compared with total liabilities of $357,430 as at September 30, 2012. The increase in total liabilities was due to an increase in the amount of convertible notes as the Company continues to raise funds  under a series of securities purchase agreements to the completion of a financing agreement whereby the Company received proceeds totaling $95,000 as part of a Securities Purchase Agreement which allows the investor to convert the principal balance to shares of the Company’s common stock during the term of the one year loan agreement, and granted a total of 237,500 share purchase warrants for exercise for a three year term bringing the total warrants issued under a series of convertible notes to 1,200,000.  The four notes in the amount total of $95,000 are convertible at a discount to market price during the term, resulting in a beneficial conversion feature which was valued at $35,736 on the $95,000 notes, and $4,069 on the warrants. This value was recorded as a discount on debt and offset to capital in excess of par value on the date the transactions were concluded. During the nine month period ended June 30, 2013 accounts payable and accrued expenses increased by $34,330 due to increased operations.

As at June 30, 2013, the Company had a working capital deficit of $551,200 compared with a working capital deficit of $308,276 as at September 30, 2012.  The increase in working capital deficit is mainly attributable to the increase in current liabilities as a result of the financing activities of the Company by way of convertible loans, and the Company’s expenditures as it continues to increase operations.
 
5

 
The Company has commenced exploration as required under its mineral property option agreement and has earned its rights to transfer title to the property under the agreement.

In order to meet all of the current commitments and fund operations for the next twelve months the Company estimates it will require a minimum of $500,000. We intend to undertake exploration on our mineral properties of approximately $300,000 and have allocated an additional $200,000 for operations, which may include the acquisition of additional properties as well as general and administrative costs. The Company believes it can raise sufficient funding to meet its ongoing obligations for the next twelve months from its current investor.

We do not have sufficient funds to meet our next twelve month obligations. Our ability to meet our financial liabilities and commitments is primarily dependent upon the continued issuance of equity to new stockholders, the ability to borrow funds, and ultimately upon our ability to achieve and maintain profitable operations. 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. We do not currently have sufficient capital to meet our obligations as they come due and our assumption that we can raise the sufficient funding cannot be relied upon.

Cashflow from Operating Activities

During the ninemonth period ended June 30, 2013, the Company used $136,238of cash for operating activities compared to the use of $135,133of cash for operating activities during the period ended June 30, 2012. The increase in net cash used in operating activities is attributed to the Company’s acquisition of an option on certain mineral claims, which caused the increase cash used in professional fee, management fee, consulting fee and other operating expenses.

Cashflow from Investing Activities

During the nine month period ended June 30, 2013 the Company has expended no cash on investing activities as compared to the expenditure of $205,000 for the nine months ended June 30, 2012 where the Company continued to fund the purchase of certain mineral claims.

Cashflow from Financing Activities

During the nine month period ended June 30, 2013, the Company received $95,000 cash from financing activities by way of a note payable compared to $386,778 cash from notes payable of $385,000 and $1,778 in related party advances for the nine month period ended June 30, 2012.  
 
Going Concern
 
We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

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.
 
6

Critical Accounting Policies
 
Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.
 
 
We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.
 
Recently Issued Accounting Pronouncements
 
We have reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may cause a material impact on our financial condition, or the results of our operations.

ITEM 3.           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4.           CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by our company in the reports that it files or submits under the Exchange Act is accumulated and communicated to our management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Our management carried out an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act"). Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures were not effective as of June 30, 2013, due to the material weaknesses resulting from the Board of Directors not currently having any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K, and controls were not designed and in place to ensure that all disclosures required were originally addressed in our financial statements. Please refer to our Annual Report on Form 10-K as filed with the SEC on January 13, 2013, for a complete discussion relating to the foregoing evaluation of Disclosures and Procedures.
 
Changes in Internal Control over Financial Reporting
 
Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.
 
The Company is not required by current SEC rules to include, and does not include, an auditor's attestation report. The Company's registered public accounting firm has not attested to Management's reports on the Company's internal control over financial reporting.
 
7

 
PART II - OTHER INFORMATION

ITEM 1.          LEGAL PROCEEDINGS

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A.       RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2.          UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the period the Company entered into two Securities Purchase Agreements in the amount of $15,000 and $50,000 respectively pursuant to which the Company received a total of $65,000 as  loans  in  exchange for two (2) Units consisting of:  Convertible Promissory Notes convertible tocommon stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and three (3) year Warrants (the “Warrant”) to purchase one hundred and  five thousand (125,000) and thirty-seven thousand five hundred (37,500)  shares of the Company’s Common Stock respectively exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The Notes earn simple interest accruing at ten percent (10%) per annum and are due on or before the twelfth month anniversary of the date of execution.

The shares of Common Stock referenced herein were issued in reliance upon the exemption from securities registration afforded by the provisions of Section 4(2) of the Securities Act of 1933, as amended, (“Securities Act”), and/or Regulation D, as promulgated by the U.S. Securities and Exchange Commission under the Securities Act, based upon the following: (a) each of the persons to whom the shares of Common Stock were issued (each such person, an “Investor”) confirmed to the Company that it or he is an “accredited investor,” as defined in Rule 501 of Regulation D promulgated under the Securities Act and has such background, education and experience in financial and business matters as to be able to evaluate the merits and risks of an investment in the securities, (b) there was no public offering or general solicitation with respect to the offering of such shares, (c) each Investor was provided with certain disclosure materials and all other information requested with respect to the Company, (d) each Investor acknowledged that all securities being purchased were being purchased for investment intent and were “restricted securities” for purposes of the Securities Act, and agreed to transfer such securities only in a transaction registered under the Securities Act or exempt from registration under the Securities Act and (e) a legend has been, or will be, placed on the certificates representing each such security stating that it was restricted and could only be transferred if subsequently registered under the Securities Act or transferred in a transaction exempt from registration under the Securities Act.

ITEM 3.         DEFAULTS UPON SENIOR SECURITIES
 
None.

ITEM 4.          MINE SAFETY DISCLOSURES

None.
 
8

 
ITEM 5.          OTHER INFORMATION

None

ITEM 6.           EXHIBITS

Exhibit Number
Description of Exhibit
Filing
3.01
Articles of Incorporation
Filed with the SEC on October 22, 2010 as part of our Registration Statement on Form S-1.
3.01(a)
Certificate of Change
Filed with the SEC on November 7, 2012 as part of our Current Report on Form 8-K.
3.02
Bylaws
Filed with the SEC on October 22, 2010 as part of our Registration Statement on Form S-1.
10.01
Service Agreement between Solo International, Inc. and “TIRCARS” Sp. J dated August 30, 2010
Filed with the SEC on October 22, 2010 as part of our Registration Statement on Form S-1.
10.02
Securities Purchase Agreement between Solo International, Inc. and Craigstone Ltd., dated November 4, 2012
Filed with the SEC on November 15, 2012 as part of our Current Report on Form 8-K.
10.03
Option Agreement by and between between Solo International, Inc. and 9228-6202 Quebec Inc., dated November 15, 2012
Filed with the SEC on November 23, 2012 as part of our Current Report on Form 8-K
10.04
Amended Option Agreement by and between 9252-4768 Quebec Inc. and 9228-6202 Quebec Inc. dated December 20, 2012
Filed with the SEC on January 3, 2013 as part of our Amended Current Report on Form 8-K/A.
10.05
Securities Purchase Agreement between Solo International, Inc. and Craigstone Ltd., dated January 10, 2013
Filed with the SEC on January 12, 2013 as part of our Current Report on Form 8-K.
31.01
Certification of Principal Executive Officer Pursuant to Rule 13a-14
Filed herewith.
31.02
Certification of Principal Financial Officer Pursuant to Rule 13a-14
Filed herewith.
32.01
CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
Filed herewith.
101.INS*
XBRL Instance Document
Filed herewith.
101.SCH*
XBRL Taxonomy Extension Schema Document
Filed herewith.
101.CAL*
XBRL Taxonomy Extension Calculation Linkbase Document
Filed herewith.
101.LAB*
XBRL Taxonomy Extension Labels Linkbase Document
Filed herewith.
101.PRE*
XBRL Taxonomy Extension Presentation Linkbase Document
Filed herewith.
101.DEF*
XBRL Taxonomy Extension Definition Linkbase Document
Filed herewith.
*Pursuant to Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.
 
9

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SOLO INTERNATIONAL, INC.

Dated:  August 19, 2013
By:
/s/ Michel Plante
 
Name:
Michel Plante
 
Title:
President, Principal Executive Officer & Principal Financial Officer (Principal Accounting Officer)

 
10

 

EX-31.1 2 ex311.htm CERTIFICATION ex311.htm


RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Michel Plante, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Solo International, 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; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our 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: August 19, 2013 By: /s/ Michel Plante
  Name: Michel Plante
  Title: Principal Executive Officer
 
 
 

 

EX-31.2 3 ex312.htm CERTIFICATION ex312.htm


RULE 13A-14(A)/15D-14(A) CERTIFICATION

I, Michel Plante, certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Solo International, 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; and

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our 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: August 19, 2013 By: /s/ Michel Plante
  Name: Michel Plante
  Title: Principal Financial Officer
 
 
 

 

EX-32.1 4 ex321.htm CERTIFICATION ex321.htm


EXHIBIT 32

SOLO INTERNATIONAL, INC.

CERTIFICATION 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 Solo International, Inc. (the “Company”) on Form 10-Q for the nine months ending June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michel Plante, as Principal Executive, Financial and Accounting Officer of the Company, hereby 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 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 
(2)
The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  August 19, 2013
By:
/s/ Michel Plante
 
 
Name:
Michel Plante
 
Title:
Principal Executive, Financial and Accounting Officer

A signed original of this written statement required by Section 1350 of Title 18 of the United States Code has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished as an exhibit to the Report pursuant to Item 601(b)(32) of Regulation S-K and Section 1350 of Title 18 of the United States Code and, accordingly, is not being filed with the Securities and Exchange Commission as part of the Report and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Securities Exchange Act of 1934 (whether made before or after the date of the Report, irrespective of any general incorporation language contained in such filing.)
 
 

 

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Mineral Property Option Agreement (Tables)
9 Months Ended
Jun. 30, 2013
Extractive Industries [Abstract]  
Schedule of Cash Payments for Option on Mineral Property
i. $50,000 within 2 business days of the execution of the Option Agreement
ii. $70,000 within 30 days following the First Option Payment
iii. $70,000 within 30 days following the Second Option Payment
iv. $15,000 within 30 days following the Third Option Payment
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Statements of Operations (Unaudited) (USD $)
3 Months Ended 9 Months Ended 38 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Income Statement [Abstract]          
REVENUE               
EXPENSES          
Exploration expense 3,877    17,630    35,445
Professional fees 6,109 8,796 40,090 54,236 116,422
Management fees 7,500 7,500 22,500 22,500 52,500
Impairment on mineral claims    20,000    225,000 225,000
Other general and administrative expenses 10,423 14,138 57,570 51,207 130,477
OPERATING LOSS (27,909) (50,434) (137,790) (352,943) (559,844)
OTHER INCOME (EXPENSES)          
Interest expenses (25,489) (58,997) (144,940) (116,207) (327,713)
NET LOSS $ (53,398) $ (109,431) $ (282,730) $ (469,150) $ (887,557)
Basic and diluted loss per share $ 0.00 [1] $ 0.00 [1] $ 0.00 [1] $ 0.00 [1]  
Weighted average number of shares outstanding, basic and diluted 288,200,000 290,314,286 288,200,000 355,556,934  
[1] * Less than $0.01 per share
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Common Stock
9 Months Ended
Jun. 30, 2013
Equity [Abstract]  
Common Stock

4. COMMON STOCK

 

The authorized capital of the Company is 900,000,000 common shares with a par value of $ 0.001 per share.

 

As of June 30, 2013, 288,200,000 common stock shares were issued and outstanding.

 

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Common Stock (Details Narrative) (USD $)
Jun. 30, 2013
Sep. 30, 2012
Equity [Abstract]    
Common stock, shares authorized 900,000,000 900,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares issued and outstanding 288,200,000  
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Convertible Promissory Notes, Net (Tables)
9 Months Ended
Jun. 30, 2013
Debt Disclosure [Abstract]  
Schedule of Convertible Notes Payable, Craigstone
    June 30, 2013   September 30, 2012   Issue Date
Convertible Promissory Note – face value, due on November  4, 2012 $ 100,000   $ 100,000   $ 100,000
Convertible Promissory Note – face value, due on January 4, 2013   115,000     115,000     115,000
Convertible Promissory Note – face value, due on February 3, 2013   85,000     85,000     85,000
Convertible Promissory Note – face value, due on March 8, 2013   35,000     35,000     35,000
Convertible Promissory Note – face value, due on May 11, 2013   25,000     25,000     25,000
Convertible Promissory Note – face value, due on June 19, 2013   25,000     25,000     25,000
Convertible Promissory Note – face value, due on September 11, 2013   35,000     35,000     35,000
Convertible Promissory Note – face value, due on October 19, 2013   15,000           15,000
Convertible Promissory Note – face value, due on October 26, 2013   15,000           15,000
Convertible Promissory Note – face value, due on May 30, 2014   15,000           15,000
Total convertible promissory note – face value   465,000     420,000     465,000
Less: beneficial conversion feature   (13,711)     (74,290)     (215,439)
Warrant discount   (3,665)     (24,289)     (60,439)
  $ 447,624   $ 321,421   $ 189,122
Schedule of Debt Discount and Interest accrued in period, Craigstone
  For the three month period   For the nine month period  
 

June 30,

2013

 

June 30,

2012

 

June 30,

2013

 

June 30,

2012

 
Amortization of debt discount   $ 8,467     $ 50,227     $ 102,729     $ 99,094  
Interest at contractual rate     11,219       8,770       33,473       17,113  
Totals   $ 19,686     $ 58,997     $ 136,202     $ 116,207  
Schedule of Convertible Notes Payable, Adams Ale
    June 30, 2013     Issue Date  
Convertible Promissory Note – face value, due on February 15, 2014     50,000       50,000  
Total convertible promissory note – face value     50,000       50,000  
Less: beneficial conversion feature     (10,914 )     (17,473 )
Warrant discount     (503 )     (806 )
    $ 38,582     $ 31,721  
Schedule of Debt Discount and Interest accrued in period, Adams Ale
  For the three month period     For the nine month period  
 

June 30,

2013

 

June 30,

2012

   

June 30,

2013

   

June 30,

2012

 
Amortization of debt discount   $ 4,557     $ -     $ 6,862     $ -  
Interest at contractual rate     1,247       -       1,877       -  
Totals   $ 5,804     $ -     $ 8,739     $ -  
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Private placement, value                         $ 100,000
Private Placement, funded                       50,000  
Convertible Notes                          
Convertible Note, cash proceeds             100,000           50,000
Number of Units, convertible note             1           1
Warrants granted, convertible note, in shares             250,000           125,000
Percent of average trading price used for conversion price             75.00%           75.00%
Number of days prior to conversion on which average trading price determined             30           30
Term of Warrant 3           3           3
Warrant exercise price 1 $ 0.20           $ 0.20           $ 0.20
Warrant exercise price 2, as percent of marketing trading price 75.00%           75.00%           75.00%
Number of days average trading price prior to exercise on which warrant price determined 30           30           30
Interest rate             10.00%           10.00%
Convertible Notes, Additions                          
Number of Additional securities agreements       3                  
Convertible note, additional cash proceeds       45,000   320,000              
Number of Units, convertible note       1   1              
Warrants granted, convertible note additions, in shares       112,500   712,500              
Percent of average trading price used for conversion price       75.00%   75.00%              
Number of days prior to conversion on which average trading price determined       30   30              
Term of Warrant       3   3              
Warrant exercise price 1       $ 0.20   $ 0.20              
Warrant exercise price 2, as percent of marketing trading price       75.00%   75.00%              
Number of days average trading price prior to exercise on which warrant price determined       30   30              
Interest rate       10.00%   10.00%              
Beneficial conversion feature, issue date, gross value       (215,439)           (17,473)      
Warrant discount, issue date, gross value       (60,439)           (806)      
Amortization discount, expensed   $ 8,467 $ 50,227 $ 102,729 $ 99,094     $ 4,557    $ 6,862       
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Craigstone Ltd.        
Amortization of debt discount $ 8,467 $ 50,227 $ 102,729 $ 99,094
Interest at contractual rate 11,219 8,770 33,473 17,113
[TotalInterestExpense] 19,686 58,997 136,202 116,207
Adams Ale        
Amortization of debt discount 4,557    6,862   
Interest at contractual rate 1,247    1,877   
[TotalInterestExpense] $ 5,804    $ 8,739   
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Warrants - Outstanding and Exercisable Warrants (Details) (USD $)
9 Months Ended 12 Months Ended
Jun. 30, 2013
Sep. 30, 2012
Notes to Financial Statements    
Exercise Price, minimum $ 0.00563  
Exercise Price, maximum $ 0.1  
Warrants outstanding    
Number outstanding 1,200,000  
Weighted average remaining contractual life (years) 1 year 8 months  
Weighted average exercise price $ 0.060 $ 0.069
Warrants Exercisable    
Number Exercisable 1,200,000  
Weighted average remaining contractual life (years) 1 year 8 months  
Weighted Average Exercise Price $ 0.060  
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Convertible Promissory Notes, Net - Schedule of Convertible Notes Payable (Details) (USD $)
9 Months Ended 9 Months Ended
Jun. 30, 2013
Sep. 30, 2012
Jun. 30, 2013
Craigstone Ltd.
May 30, 2013
Craigstone Ltd.
Oct. 26, 2012
Craigstone Ltd.
Oct. 19, 2012
Craigstone Ltd.
Sep. 30, 2012
Craigstone Ltd.
Sep. 11, 2012
Craigstone Ltd.
Jun. 19, 2012
Craigstone Ltd.
May 11, 2012
Craigstone Ltd.
Mar. 08, 2012
Craigstone Ltd.
Feb. 03, 2012
Craigstone Ltd.
Jan. 04, 2012
Craigstone Ltd.
Nov. 04, 2011
Craigstone Ltd.
Jun. 30, 2013
Adams Ale
Feb. 15, 2013
Adams Ale
Jun. 30, 2012
Adams Ale
Convertible Notes, Face Value                                  
Convertible Promissory Note, face value, due on November 4, 2012     $ 100,000       $ 100,000             $ 100,000      
Convertible Promissory Note, face value, due on January 4, 2013     115,000       115,000           115,000        
Convertible Promissory Note, face value, due on February 3, 2013     85,000       85,000         85,000          
Convertible Promissory Note, face value, due on March 8, 2013     35,000       35,000       35,000            
Convertible Promissory Note, face value, due on May 11, 2013     25,000       25,000     25,000              
Convertible Promissory Note, face value, due on June 19, 2013     25,000       25,000   25,000                
Convertible Promissory Note, face value, due on September 11, 2013     35,000       35,000 35,000                  
Convertible Promissory Note, face value, due on October 19, 2013     15,000     15,000                      
Convertible Promissory Note, face value, due on October 26, 2013     15,000   15,000                        
Convertible Promissory Note, face value, due on May 30, 2014     15,000 15,000                          
Convertible Promissory Note, face value, due on February 15, 2014                               50,000 50,000
Total convertible promissory note, face value     465,000       420,000                   50,000
Beneficial conversion feature, expensed in period ended     (13,711)       (74,290)                   (10,914)
Beneficial conversion feature, gross value at issue date     (215,439)                       (17,473)    
Warrant discount expensed in period     (3,665)       (24,289)                   (503)
Warrant discount, gross value at issue date     (60,439)                       (806)    
Convertible promissory notes, net 486,206 321,421 447,624       321,421                   38,582
Convertible promissory notes, net, value at issue date     $ 189,122                       $ 31,721    
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Shareholders Equity (Unaudited) (USD $)
Common Stock
Capital in Excess of Par Value
Accumulated Deficit During the Development Stage
Total
Beginning balance, amount at Apr. 29, 2010 $ 0 $ 0 $ 0 $ 0
Beginning balance, shares at Apr. 29, 2010 0 0 0 0
Issuance of common shares for cash, shares 300,000,000      
Issuance of common shares for cash, amount 300,000 (297,000)   3,000
Issuance of common shares for cash, shares 72,000,000      
Issuance of common shares for cash, amount 72,000 57,600   14,400
Issuance of common shares for cash, shares 16,000,000      
Issuance of common shares for cash, amount 16,000 (11,200)   4,800
Net loss for the period     (714) (714)
Ending balance, amount at Sep. 30, 2010 388,000 (365,800) (714) 21,486
Ending balance, shares at Sep. 30, 2010 388,000,000      
Net loss for the period     (25,360) (25,360)
Ending balance, amount at Sep. 30, 2011 388,000 (365,800) (26,074) (3,874)
Beginning balance, shares at Sep. 30, 2011 388,000,000      
Beneficial Conversion Features   191,176    
Valuation of Warrants   57,175    
Stock returned to treasury, shares (100,000,000)      
Stock returned to treasury, amount (100,000) 100,000    
Issuance of common shares for acquisition of mineral property, shares 200,000      
Issuance of common shares for acquisition of mineral property, amount 200 19,800    
Net loss for the period     (578,753)  
Ending balance, amount at Sep. 30, 2012 288,200 8,351 (604,827) (308,276)
Ending balance, shares at Sep. 30, 2012 288,200,000      
Beneficial Conversion Features   35,736    
Valuation of Warrants   4,070    
Net loss for the period     (282,730)  
Ending balance, amount at Jun. 30, 2013 $ 288,200 $ 48,157 $ 887,557 $ (551,200)
Ending balance, shares at Jun. 30, 2013 288,200,000      
XML 30 R8.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Accounting Policies
9 Months Ended
Jun. 30, 2013
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Interim Financial Statements

The accompanying interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Consolidated operating results for the three and nineperiod ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending September 30, 2013.  For further information, refer to the consolidated financial statements and footnotes thereto included in our Form 10-K Report for the fiscal year ended September 30, 2012 filed with the Securities and Exchange Commission on December 31, 2012.

 

Basis of Presentation

The unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim consolidated financial information and pursuant to the rules and regulations of the SEC. Accordingly; they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. However, management believes that the disclosures made are adequate to make the information not misleading. Management has evaluated subsequent events through the date the financial statements were issued.

 

Going Concern

The consolidated financial statements have been prepared on a going concern basis that 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 $887,557 as of June 30, 2013 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. These financials do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty.

 

Cash and Cash equivalents

For purposes of Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity date of six months or less to be cash equivalents.

 

Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

 

Foreign Currency Translation

The Company's functional currency and its reporting currency is the United States dollar.

 

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.

 

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.

 

Basic and Diluted Loss Per Share

The Company computes loss per share in accordance with “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. Diluted loss per share is the same as basic loss per share, because the effects of the additional securities, a result of the net loss would be anti-dilutive.

 

Stock-based Compensation

 

The Company records stock based compensation in accordance with the guidance in ASC Topic 718, which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

 

Mineral Property Costs

Mineral exploration and development costs are accounted for using the successful efforts method of accounting.

 

Property acquisition costs - Mineral property acquisition costs are capitalized as mineral exploration properties. Upon achievement of all conditions necessary for reserves to be classified as proved, the associated acquisition costs are reclassified to prove properties

 

Exploration costs - Geological and geophysical costs and the costs of carrying and retaining undeveloped properties are expensed as incurred.

 

Impairment of Mineral Properties

Unproved mineral properties are assessed at each reporting period for impairment of value, and a loss is recognized at the time of the impairment by providing an impairment allowance. An asset would be impaired if the undiscounted cash flows were less than its carrying value. Impairments are measured by the amount by which the carrying value exceeds its fair value. Because the Company uses the successful efforts method, the Company assesses its properties individually for impairment, instead of on an aggregate pool of costs. Impairment of unproved properties is based on the facts and circumstances surrounding each lease and is recognized based on management’s evaluation. Management’s evaluation follows a two-step process where (1) recoverability of the carrying value of the asset is reviewed to determine if there is sufficient value recoverable to support the capitalized value at the report date; and, (2) If assets fail the recoverability test, impairment testing is conducted, including the evaluation of various criteria such as: prior history of successful operations; production currently in place and/or future projected cash flows (if any); reserve reports or evaluations from which management can prepare future cash flow analyses; the Company’s ability to monetize the asset(s) under evaluation; and, Management’s intent regarding future development.

 

Beneficial Conversion Feature

From time to time, the Company may issue convertible notes that may have conversion prices that create an embedded beneficial conversion feature pursuant to the Emerging Issues Task Force guidance on beneficial conversion features. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted with the debt. In accordance with this guidance, the intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.

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Convertible Promissory Note, Net
9 Months Ended
Jun. 30, 2013
Debt Disclosure [Abstract]  
Convertible Promissory Note, Net

5.  CONVERTIBLE PROMISSORY NOTE, NET

 

(i) Craigstone Ltd. (“Craigstone”)

 

On November 4, 2011, the Company entered into a Securities Purchase Agreement with Craigstone pursuant to which the Company received $100,000 as a loan from Craigstone in exchange for one (1) Unit consisting of: a Convertible Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and a three (3) year Warrant (the “Warrant”) to purchase two hundred fifty thousand (250,000) shares of the Company’s Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The Note earns simple interest accruing at ten percent (10%) per annum and was due on or before the twelfth month anniversary of the date of execution.  The due dates were extended as described further herein.

 

During the fiscal year ended September 30, 2012, the Company entered into additional Securities Purchase Agreements with Craigstone pursuant to which the Company received  collectively $320,000 as  loans whereby each funding received  one (1) Unit consisting of: a Convertible Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and a three (3) year Warrant (the “Warrant”).   Collectively under the Securities Purchase Agreements, Craigstone was granted the rights to purchase seven hundred twelve thousand five hundred (712,500) shares of the Company’s Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The Notes earn simple interest accruing at ten percent (10%) per annum and were due on or before the twelfth month anniversary of the date of execution. The due dates were extended as described further herein.

 

During the current nine month period ended June 30, 2013, the Company entered into three additional Securities Purchase Agreements with Craigstone. pursuant to which the Company received a total of $45,000 as  loans in exchange for which each agreement receive done (1) Unit consisting of a Convertible Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and collectively received a three (3) year Warrant (the “Warrant”) to purchase one hundred twelve thousand five hundred (112,500) shares of the Company’s Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The Notes earn simple interest accruing at ten percent (10%) per annum and is due on or before the twelfth month anniversary of the date of execution.

 

The beneficial conversion feature resulting from the discounted conversion price compared to market price was valued on the date of grant to be $215,439 on the notes, and $60,439 on the warrants. This value was recorded as a discount on debt and offset to additional paid in capital. Amortization of the discount was respectively $8,467 (2012 - $50,227) and $102,729 (2012 - $99,094) for the three and nine months ended June 30, 2013, which amount has been recorded as interest expense.

 

    June 30, 2013   September 30, 2012   Issue Date
Convertible Promissory Note – face value, due on November  4, 2012 $ 100,000   $ 100,000   $ 100,000
Convertible Promissory Note – face value, due on January 4, 2013   115,000     115,000     115,000
Convertible Promissory Note – face value, due on February 3, 2013   85,000     85,000     85,000
Convertible Promissory Note – face value, due on March 8, 2013   35,000     35,000     35,000
Convertible Promissory Note – face value, due on May 11, 2013   25,000     25,000     25,000
Convertible Promissory Note – face value, due on June 19, 2013   25,000     25,000     25,000
Convertible Promissory Note – face value, due on September 11, 2013   35,000     35,000     35,000
Convertible Promissory Note – face value, due on October 19, 2013   15,000           15,000
Convertible Promissory Note – face value, due on October 26, 2013   15,000           15,000
Convertible Promissory Note – face value, due on May 30, 2014   15,000           15,000
Total convertible promissory note – face value   465,000     420,000     465,000
Less: beneficial conversion feature   (13,711)     (74,290)     (215,439)
Warrant discount   (3,665)     (24,289)     (60,439)
  $ 447,624   $ 321,421   $ 189,122

 

Interest expenses:

  For the three month period   For the nine month period  
 

June 30,

2013

 

June 30,

2012

 

June 30,

2013

 

June 30,

2012

 
Amortization of debt discount   $ 8,467     $ 50,227     $ 102,729     $ 99,094  
Interest at contractual rate     11,219       8,770       33,473       17,113  
Totals   $ 19,686     $ 58,997     $ 136,202     $ 116,207  

 

On January 31, 2013, Craigstone agreed to extend the maturity dates of certain notes due and payable on November 4, 2012, January 4, 2012 and February 3, 2013 for a period of one year or greater so that the respective notes are now due and payable on November 4, 2013, November 4, 2014 and February 3, 2014.

 

On May 31, 2013, Craigstone agreed to extend the maturity dates of certain notes due and payable on March 8, 2013, May 11, 2013 and June 19, 2013 to March 8, 2014, May 11, 2014 and June 19, 2014.

 

  (ii) Adams Ale Inc.

 

Effective February 15, 2013, the Company entered into a Securities Purchase Agreement with Adams Ale Inc.(“Adams”) pursuant to which Adams agreed to undertake a private placement in the amount of $100,000.  On May 1, 2013, Adams had not fully funded the private placement, having funded an amount of $50,000 and agreed to convert to a Convertible Promissory Note on the same commercial terms as the Craigstone notes discussed above.   The Company agreed to enter into a Securities Purchase Agreement with Adams for the funded amount of $50,000 in exchange for one (1) Unit consisting of: a Convertible Promissory Note convertible to common stock in whole or in part, at any time and from time to time before maturity at the option of the holder at seventy-five percent (75%) of the average traded price of the common stock for the thirty (30) trading days immediately preceding the conversion date; and a three (3) year Warrant (the “Warrant”) to purchase one hundred twenty-five thousand (125,000) shares of the Company’s Common Stock exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of common stock for the thirty (30) trading days immediately preceding the exercise date. The Note earns simple interest accruing at ten percent (10%) per annum and is due on or before the twelfth month anniversary of the date of execution.

 

The beneficial conversion feature resulting from the discounted conversion price compared to market price was valued on the date of grant to be $17,473 on the note, and $806 on the warrants. This value was recorded as a discount on debt and offset to additional paid in capital. Amortization of the discount was respectively $4,557 (2012 - $nil) and $6,862 (2012 - $nil) for the three and nine months ended June 30, 2013, which amount has been recorded as interest expense.

 

    June 30, 2013     Issue Date  
Convertible Promissory Note – face value, due on February 15, 2014     50,000       50,000  
Total convertible promissory note – face value     50,000       50,000  
Less: beneficial conversion feature     (10,914 )     (17,473 )
Warrant discount     (503 )     (806 )
    $ 38,582     $ 31,721  

 

Interest expenses:

  For the three month period     For the nine month period  
 

June 30,

2013

 

June 30,

2012

   

June 30,

2013

   

June 30,

2012

 
Amortization of debt discount   $ 4,557     $ -     $ 6,862     $ -  
Interest at contractual rate     1,247       -       1,877       -  
Totals   $ 5,804     $ -     $ 8,739     $ -  

 

 

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Mineral Property
9 Months Ended
Jun. 30, 2013
Extractive Industries [Abstract]  
Mineral Property Option Agreement

3. MINERAL PROPERTY

 

On November 15, 2011, the Company through its wholly-owned Quebec subsidiary, 9252-4768 Quebec Inc., entered into a Property Option Agreement with 9228-6202 Quebec Inc., a Quebec corporation (the “Optionor”). Pursuant to the option agreement, the Company received the exclusive option to acquire an undivided 100% right, title and interest in and to certain mineral claims located in Portland Township, Outaouais, Quebec subject to a royalty reserved to the Optionor.  To fully exercise the option and acquire an undivided 100% right, title and interest in and to the Property, the Company was required to: 1) pay an aggregate sum of two hundred and five thousand dollars ($205,000) to Optionor; 2) incur an aggregate of at least sixty-five thousand dollars ($65,000) of expenditures on or with respect to the Property; and 3) issue to Optionor an aggregate number of restricted shares of common stock of the Company equal to twenty thousand US dollars ($20,000). On, November 27, 2012, the Company’s wholly owned subsidiary, 9252-4768 Quebec Inc. entered into a second addendum to the original property option agreement with 9228-6202 Quebec Inc. whereby the parties acknowledged that 9252-4768 Quebec Inc. had earned its 100% right, title and interest in and to certain mineral claims, located in Portland Township, Outaouais, Quebec. The cash payments, expenditures and stock issuance were scheduled to be completed as follows:

 

Cash Payments:

 

The Company is required to pay the cash payments to Optionor, all of which have been paid as of June 30, 2013, in the following amounts and by the dates described below:

 

i.

$50,000 within 2 business days of the execution of the Option Agreement

 

ii. $70,000 within 30 days following the First Option Payment
   
iii.

$70,000 within 30 days following the Second Option Payment

 

iv. $15,000 within 30 days following the Third Option Payment 

 

Expenditures:

 

During the nine month period ended June 30, 2013, the Company expended a total of $17,630 for exploration expenses.

 

Stock Issuances:

 

The Company was required to issue an aggregate number of restricted shares of common stock of the Company equal to twenty thousand US dollars ($20,000) pursuant to the terms and conditions of the Property Option Agreement, The Company was required to issue the shares within 10 days of the completion of the forward split or no later than 90 days of execution of the Property Option Agreement.   The Company issued the shares on May 8, 2012 and issued a total of 200,000 shares of common stock at a deemed price of $0.10 per share which was the first trading price of the stock after the completion of the forward split.

 

The Company made cash payments in the amount of $205,000 and issued a total of 200,000 shares of common stock at a deemed price of $0.10 per share to 9228-6202 Quebec Inc. pursuant to the cash payment and stock payment schedule noted above, which amount was capitalized as option costs on the mineral property as of September 30, 2012. At the close of the period ended September 30, 2012, the Company evaluated the recoverability of the amount paid for the option and determined to impair the amount in full, as the Company is currently in the exploration phase, with no proven or probable reserves having yet been determined.

 

On November 27, 2012, the Option Agreement was further amended to revise the requirement to expend the $65,000 on exploration expenditures to read that the Optionee has earned its 100% right and interest in the Property for the payment of all expenditures to November 27, 2012 and for allowing the Optionor to utilize a portion of the expenditures expended by the Optionee to apply to certain of the Optionor’s claims.  The Company has transfered the title to the Property to its wholly owned subsidiary, 9252-4768 Quebec Inc.

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Advance from Related Parties (Details Narrative) (USD $)
3 Months Ended 9 Months Ended 38 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Sep. 30, 2012
Notes to Financial Statements            
Monthly compensation, officer     $ 2,500      
Management fees, paid in period 7,500 7,500 22,500 22,500 52,500  
Advances from related parties $ 6,417   $ 6,417   $ 6,417 $ 6,417
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Warrants (Details Narrative) (USD $)
Jun. 30, 2013
Notes to Financial Statements  
Warrants issued 1,200,000
Term of Warrant 3
Warrant exercise price 1 $ 0.20
Warrant exercise price 2, as percent of marketing trading price 75.00%
Number of days average trading price prior to exercise on which warrant price determined 30
Fair Value Warrants Issued $ 61,245
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Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2013
Sep. 30, 2012
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 900,000,000 900,000,000
Common stock, shares issued 288,200,000 288,200,000
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Reclassifications
9 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Reclassifications

8. RECLASSIFICATIONS - Certain amounts in the prior period’s financial statements have been reclassified to conform to the current year presentation and to break out Adams Ale Funding that had previously been combined with Craigstone Funding  (refer to Note 5 above).

 

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Statements of Cash Flows (Unaudited) (USD $)
9 Months Ended 38 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net loss $ (282,730) $ (469,150) $ (887,557)
Interest expense, amortization on discount of convertible promissory notes 109,590 99,094 265,362
Impairment on mineral claims    225,000 225,000
Adjustment to reconcile net loss to net cash (used in) operating activities:      
(Increase) decrease in prepaid expense 2,572 (9,251) (2,021)
Accounts payable and accrued liabilities 34,330 19,174 63,922
Net cash provided by (used) in operating activities (136,238) (135,133) (335,294)
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase mineral claims    (205,000) (205,000)
Net cash used in investing activities    (205,000) (205,000)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Advances from related party    1,778 6,417
Proceeds from note payable 95,000 385,000 515,000
Proceeds from issuance of common stock       22,200
Net cash provided by financing activities 95,000 386,778 543,617
Increase (decrease) in cash during the period (41,238) 46,645 3,323
Cash, beginning of period 44,561 32   
Cash, end of period 3,323 46,677 3,323
Supplement cash flow information:      
Cash paid for: Interest         
Cash paid for: Taxes         
Non-cash transactions:      
Shares issued for acquisition of mineral property    20,000 20,000
XML 48 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
Balance Sheets (Unaudited) (USD $)
Jun. 30, 2013
Sep. 30, 2012
Current    
Cash $ 3,323 $ 44,561
Prepaid expense 2,021 4,593
Total Current Assets 5,344 49,154
Total Assets 5,344 49,154
Current liabilities    
Accounts payable and accrued expenses 63,921 29,592
Advances from related parties 6,417 6,417
Convertible promissory notes, net (Note 5) 486,206 321,421
Total Current Liabilities 556,544 357,430
STOCKHOLDERS EQUITY (DEFICIENCY)    
Common stock: 900,000,000 shares authorized, at $0.001 par value 288,200,000 shares issued and outstanding as at June 30, 2013 and September 30, 2012 288,200 288,200
Capital in excess of par value 48,157 8,351
Deficit accumulated during the exploration stage (887,557) (604,827)
Total Stockholders Equity (Deficiency) (551,200) (308,276)
Total Liabilities and Stockholders Equity (Deficiency) $ 5,344 $ 49,154
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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.</p>falsefalsefalsenonnum:textBlockItemTypenaDisclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 4 -Paragraph 11 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32247-109318 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32840-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=2144749 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 954 -SubTopic 740 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6491622&loc=d3e9504-115650 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2144681 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32809-109319 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 45 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=21917399&loc=d3e32280-109318 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 6-34, 43, 47, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. false011false 2us-gaap_ShareBasedCompensationOptionAndIncentivePlansPolicyus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif"><i><u>Stock-Based Compensation</u></i></p> <p style="text-align: justify; text-indent: 0pt; margin: 0; font: 10pt Times New Roman, Times, Serif">The Company records stock based compensation in accordance with the guidance in ASC Topic 718, which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. 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This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b),(f) -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2228939 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 06-11 -Paragraph 7 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Warrants - Warrant Activity Table (Details) (USD $)
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Mineral Property Option Agreement - Schedule of Option Payments (Details) (USD $)
9 Months Ended
Jun. 30, 2013
Notes to Financial Statements  
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Payment required within 30 days after First Option Payment 70,000
Payment required within 30 days after Second Option Payment 70,000
Payment required within 30 days after Third Option Payment $ 15,000
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Warrants
9 Months Ended
Jun. 30, 2013
Notes to Financial Statements  
Warrants

7. WARRANTS

 

An aggregate of 1,200,000 warrants were issued as at June 30, 2013 as required under the terms of a series of Securities Purchase Agreements discussed above in Note 5.  The warrants are exercisable for a period of three years from the date of issue, exercisable at the lower of : (i) a price of $0.20 per share or (ii) seventy-five percent (75%) of the average traded price of the Company’s common stock for the thirty (30) trading days immediately preceding the exercise date.

 

The fair value of the 1,200,000 warrants totaling $61,245 was recorded as a discount on the convertible notes payable upon issuance. This value was calculated using the Black-Scholes model. The key inputs for the calculation are shown below:

 

Stock Price on Measurement Date $ 0.0068 ~ 0.135  
Exercise Price of Warrants $ 0.0051 ~ 0.101  
Term of Warrants (years)   3.00  
Computed Volatility   125.84% ~ 147.91 %
Annual Dividends   0.00 %
Discount Rate   0.33 ~ 0.49 %

 

A summary of the Company’s warrants as of June 30, 2013 and September 30, 2012 as follows:

 

    June 30, 2013     September 30, 2012  
    Warrants    

Weighted average

 exercise price

    Warrants  

Weighted average

exercise price

 
Outstanding at the beginning of the period     962,500     $ 0.069       -   $ -  
Granted     237,500       0.024       962,500   $ 0.069  
Exercised     -               -     -  
Cancelled     -               -   $ -  
Outstanding at the end of the period     1,200,000     $ 0.060       962,500   $ 0.069  
Vested and exercisable at the end of period     1,200,000               962,500        
Weighted average fair value per share of warrants granted during the period           $ 0.060           $ 0.069  

  

The following table summarizes information regarding stock purchase warrants outstanding at June 30, 2013:

 

    Warrants Outstanding   Warrants Exercisable  
Exercise prices  

Number

Outstanding

 

Weighted

average

remaining

contractual

life (years)

 

Weighted

average

exercise

price

 

Number

exercisable

 

Weighted

average

remaining

contractual

life (years)

 

Weighted

average

exercise

price

 
$ 0.00563 to 0.10     1,200,000     1.80   $ 0.060   1,200,000   1.80   $ 0.060  

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Warrants - Valuation Assumption (Details) (USD $)
9 Months Ended
Jun. 30, 2013
Warrant Valuation Assumptions  
Stock Price on Measurement Date, Minimum $ 0.0068
Stock Price on Measurement Date, Maximum $ 0.135
Exercise Price of Warrants, Minimum $ 0.0051
Exercise Price of Warrants, Maximum $ 0.101
Term of Warrants (years) 3 years
Computed volatility, low end of the range (as a percent) 125.84%
Computed volatility, high end of the range (as a percent) 147.91%
Annual Dividends 0.00%
Discount Rate, minimum 0.33%
Discount Rate, Maximum 0.49%
XML 63 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary of Significant Accounting Policies (Policies)
9 Months Ended
Jun. 30, 2013
Accounting Policies [Abstract]  
Interim Financial Statements

Interim Financial Statements

The accompanying interim unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.  In our opinion, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Consolidated operating results for the three and nineperiod ended June 30, 2013 are not necessarily indicative of the results that may be expected for the year ending September 30, 2013.  For further information, refer to the consolidated financial statements and footnotes thereto included in our Form 10-K Report for the fiscal year ended September 30, 2012 filed with the Securities and Exchange Commission on December 31, 2012.

Basis of Presentation

Basis of Presentation

The unaudited interim consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim consolidated financial information and pursuant to the rules and regulations of the SEC. Accordingly; they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. However, management believes that the disclosures made are adequate to make the information not misleading. Management has evaluated subsequent events through the date the financial statements were issued.

Going Concern

Going Concern

The consolidated financial statements have been prepared on a going concern basis that 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 $887,557 as of June 30, 2013 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. These financials do not include any adjustments relating to the recoverability and reclassification of recorded asset amounts, or amounts and classifications of liabilities that might result from this uncertainty.

Cash and Cash equivalents

Cash and Cash equivalents

For purposes of Statement of Cash Flows, the Company considers all highly liquid debt instruments purchased with a maturity date of six months or less to be cash equivalents.

Use of Estimates and Assumptions

Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Foreign Currency Translation

Foreign Currency Translation

The Company's functional currency and its reporting currency is the United States dollar.

Fair Value of Financial Instruments

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.

Income Taxes

 

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.

Basic and Diluted Loss Per Share

Basic and Diluted Loss Per Share

The Company computes loss per share in accordance with “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. Diluted loss per share is the same as basic loss per share, because the effects of the additional securities, a result of the net loss would be anti-dilutive.

Stock-based Compensation

Stock-Based Compensation

The Company records stock based compensation in accordance with the guidance in ASC Topic 718, which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.

Mineral Property Costs

Mineral Property Costs

Mineral exploration and development costs are accounted for using the successful efforts method of accounting.

 

Property acquisition costs - Mineral property acquisition costs are capitalized as mineral exploration properties. Upon achievement of all conditions necessary for reserves to be classified as proved, the associated acquisition costs are reclassified to prove properties

 

Exploration costs - Geological and geophysical costs and the costs of carrying and retaining undeveloped properties are expensed as incurred.

Impairment of Mineral Properties

Impairment of Mineral Properties

Unproved mineral properties are assessed at each reporting period for impairment of value, and a loss is recognized at the time of the impairment by providing an impairment allowance. An asset would be impaired if the undiscounted cash flows were less than its carrying value. Impairments are measured by the amount by which the carrying value exceeds its fair value. Because the Company uses the successful efforts method, the Company assesses its properties individually for impairment, instead of on an aggregate pool of costs. Impairment of unproved properties is based on the facts and circumstances surrounding each lease and is recognized based on management’s evaluation. Management’s evaluation follows a two-step process where (1) recoverability of the carrying value of the asset is reviewed to determine if there is sufficient value recoverable to support the capitalized value at the report date; and, (2) If assets fail the recoverability test, impairment testing is conducted, including the evaluation of various criteria such as: prior history of successful operations; production currently in place and/or future projected cash flows (if any); reserve reports or evaluations from which management can prepare future cash flow analyses; the Company’s ability to monetize the asset(s) under evaluation; and, Management’s intent regarding future development.

Beneficial Conversion Feature

Beneficial Conversion Feature

From time to time, the Company may issue convertible notes that may have conversion prices that create an embedded beneficial conversion feature pursuant to the Emerging Issues Task Force guidance on beneficial conversion features. A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the remaining unallocated proceeds of the note after first considering the allocation of a portion of the note proceeds to the fair value of any attached equity instruments, if any related equity instruments were granted with the debt. In accordance with this guidance, the intrinsic value of the beneficial conversion feature is recorded as a debt discount with a corresponding amount to additional paid in capital. The debt discount is amortized to interest expense over the life of the note using the effective interest method.

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operating expenses of that entity. 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(v) Costs of drilling exploratory-type stratigraphic test wells.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 360 -Section 25 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6474861&loc=d3e64954-109465 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 10 -Paragraph a -Subparagraph 15 -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 932 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-10.(a)(15)) -URI http://asc.fasb.org/extlink&oid=21918352&loc=d3e511914-122862 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 19 -Paragraph 17 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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Advance from Related Parties
9 Months Ended
Jun. 30, 2013
Related Party Transactions [Abstract]  
Related Party Transactions

6. ADVANCE FROM RELATED PARTIES

 

The Company entered into a management consulting agreement with the Company’s sole director and officer, commencing October 1, 2012. Under the terms of the agreement, payments of $2,500 a month, are payable on the 1st of each month.  During the nine month period ended June 30, 2013, the Company made cash payments of $22,500 under the management consulting agreement.

 

The Company’s prior Director has loans outstanding with the Company as at June 30, 2013 of $6,417. The amount is due on demand, non-interest bearing and unsecured.

XML 66 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
Organization
9 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization

1. ORGANIZATION

 

SOLO INTERNATIONAL, INC. was founded in the State of Nevada on April 30, 2010 as a Poland based corporation intending to provide services in interior architectural design in Poland.

 

On October 12, 2011, Mr. Michel Plante acquired control of three million (3,000,000) pre-split shares of the Company’s issued and outstanding common stock, representing approximately 77.32% of the Company’s total issued and outstanding common stock, from Mr. Yury Shcharbakou in accordance with a stock purchase agreement by and between Mr. Plante and Mr. Shcharbakou, thus effecting a change in control of the Company.

 

On October 13, 2011, the Board of Directors of the Company authorized a forward split of its issued and outstanding common shares, whereby every one (1) old share of common stock will be exchanged for one hundred (100) new shares of the Company's common stock.

 

The effect of the stock split has been recognized retroactively in the stockholders’ deficit accounts as of April 30, 2010, and in all shares and per share data in the financial statements.

 

With the change in control of the Company, management determined not to pursue its operations in Poland and determined to enter into the mining business in the Province of Quebec and incorporated a wholly-owned Quebec subsidiary, 9252-4768 Quebec Inc. On November 15, 2011, the Company, through its wholly-owned Quebec subsidiary, entered into a Property Option Agreement with 9228-6202 Quebec Inc., a Quebec corporation. Pursuant to the Option Agreement, 9252-4768 Quebec Inc. acquired the exclusive option to acquire an undivided 100% right, title and interest in and to certain mineral claims located in Portland Township, Outaouais, Quebec subject to a royalty reserved to 9228-6202 Quebec Inc.

 

The Company is an Exploration Stage Company, as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification ("ASC") 915, Development Stage Entities. The Company's principal business is the acquisition and exploration of mineral resources. The Company has not presently determined whether its properties contain mineral reserves that are economically recoverable.

 

Since Inception (April 30, 2010) through June 30, 2013, the Company has not generated any revenue and has an accumulated deficit of $887,557.

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Warrants (Tables)
9 Months Ended
Jun. 30, 2013
Notes to Financial Statements  
Valuation assumptions
Stock Price on Measurement Date $ 0.0068 ~ 0.135  
Exercise Price of Warrants $ 0.0051 ~ 0.101  
Term of Warrants (years)   3.00  
Computed Volatility   125.84% ~ 147.91%  
Annual Dividends   0.00 %
Discount Rate   0.33 ~ 0.49 %
Warrant Activity Table
    June 30, 2013     September 30, 2012  
    Warrants    

Weighted average

 exercise price

    Warrants  

Weighted average

exercise price

 
Outstanding at the beginning of the period     962,500     $ 0.069       -   $ -  
Granted     237,500       0.024       962,500   $ 0.069  
Exercised     -               -     -  
Cancelled     -               -   $ -  
Outstanding at the end of the period     1,200,000     $ 0.060       962,500   $ 0.069  
Vested and exercisable at the end of period     1,200,000               962,500        
Weighted average fair value per share of warrants granted during the period           $ 0.060           $ 0.069  
Outstanding and Exercisable Warrants
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Exercise prices  

Number

Outstanding

 

Weighted

average

remaining

contractual

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Weighted

average

exercise

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Number

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Weighted

average

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contractual

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Weighted

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Subsequent Events
9 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events

9. SUBSEQUENT EVENTS

 

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Mineral Property Option Agreement (Details Narrative) (USD $)
3 Months Ended 9 Months Ended 38 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Nov. 27, 2012
Nov. 15, 2011
Terms of Option Agreement              
Percent interest available to acquire under Option Agreement             100.00%
Total Cash payments to acquire Option             $ 205,000
Required expenditures on mineral property             65,000
200,000 shares issued for acquisition of mineral property, value             20,000
Percent interest earned           100.00%  
Days after forward split by which shares are to be issued             10
Days after execution of Option by which shares are to be issued             90
Shares issued for Mineral Property Option, in shares     200,000        
Price per share     $ 0.10        
Cash Payments. option     205,000        
Exploration expense $ 3,877    $ 17,630    $ 35,445    
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Organization (Details Narrative) (USD $)
Jun. 30, 2013
Sep. 30, 2012
Nov. 15, 2011
Oct. 13, 2011
Oct. 12, 2011
Notes to Financial Statements          
Accumulated Deficit $ 887,557 $ 604,827      
Number of shares acquired by officer and director         3,000,000
Percent of Oustanding Shares Acquired         77.32%
Ratio of forward split to each share held       100  
Percent interest available to acquire under Option Agreement     100.00%    
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Document and Entity Information
9 Months Ended
Jun. 30, 2013
Aug. 14, 2013
Document And Entity Information    
Entity Registrant Name Solo International, Inc.  
Entity Central Index Key 0001501845  
Document Type 10-Q  
Document Period End Date Jun. 30, 2013  
Amendment Flag false  
Current Fiscal Year End Date --09-30  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   288,200,000
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2013  
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Summary of Significant Accounting Policies (Details Narrative) (USD $)
Jun. 30, 2013
Sep. 30, 2012
Notes to Financial Statements    
Accumulated Deficit $ 887,557 $ 604,827
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