10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

 [X]  Quarterly Report Pursuant to Section 13 Or 15(d) Of The Securities Exchange Act Of 1934

For the quarterly period ended January 31, 2014

 [  ]  Transition Report Pursuant to Section 13 Or 15(d) Of The Securities Exchange Act of 1934

For the transition period from ________ to ________

COMMISSION FILE NUMBER  000-50569

TERRACE VENTURES INC.
(Exact name of registrant as specified in its charter)

NEVADA	91-2147101
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
Suite 201, 810 Peace Portal Drive,
Blaine, WA	98230
(Address of principal executive offices)	(Zip Code)

(360) 220-5218

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 
Yes  [X]   No  [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405) of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit to 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 [  ]  (Do not check if a smaller reporting company)	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]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:  As of March 20, 2014, the Registrant had 33,160,660 shares of common stock outstanding.

 

PART I - FINANCIAL INFORMATION

ITEM 1.            FINANCIAL STATEMENTS.

The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X, and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the three and nine months ended January 31, 2014 are not necessarily indicative of the results that can be expected for the year ended April 30, 2014.

As used in this Quarterly Report, the terms “we,” “us,” “our,” “Terrace,” and the “Company” mean Terrace Ventures Inc. unless otherwise indicated.  All dollar amounts in this Quarterly Report are expressed in U.S. dollars, unless otherwise indicated.

2

TERRACE VENTURES INC.
(An Exploration Stage Company)
January 31, 2014
(Expressed in US dollars)
unaudited)

Index

Balance Sheets.	F-1
Statements of Operations.	F-2
Statements of Cash Flows.	F-3
Notes to the Financial Statements.	F-4

 

TERRACE VENTURES INC.
(An Exploration Stage Company)
Balance Sheets
(Expressed in US dollars)

	January 31, 2014 $		April 30, 2013 $
	(unaudited)
ASSETS
Current Assets
Cash and cash equivalents	10,420		716
Total Current Assets	10,420		716
Mineral property costs	5,675		5,675
Total Assets	16,095		6,391
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
Accounts payable  and accrued liabilities (Note 4)	237,876		179,211
Loans payable (Note 5)	62,025		7,000
Total Liabilities	299,901		186,211
Going Concern (Note 1)
Commitments (Note 3)
Stockholders’ Deficit
Common stock Authorized: 400,000,000 shares, par value $0.001 Issued and outstanding: 33,160,660 shares	33,161		33,161
Additional paid-in capital	2,172,234		2,172,234
Deficit accumulated during the exploration stage	(2,489,201	)	(2,385,215	)
Total Stockholders’ Deficit	(283,806	)	(179,820	)
Total Liabilities and Stockholders’ Deficit	16,095		6,391

(The accompanying notes are an integral part of these financial statements)

F-1

 

TERRACE VENTURES INC.
(An Exploration Stage Company)
Statements of Operations
(Expressed in US dollars)
(unaudited)

	Three Months Ended January 31, 2014 $		Three Months Ended January 31, 2013 $		Nine Months Ended January 31, 2014 $		Nine Months Ended January 31, 2013 $		Accumulated from February 20, 2001 (date of inception) to January 31, 2014 $
Revenue	–		–		–		–		–
Operating Expenses
Bad debts	–		–		–		–		214,892
Consulting fees	2,500		–		7,500		–		151,950
General and administrative	(904	)	1,745		802		3,533		50,889
Management fees (Note 4)	7,500		7,500		22,500		22,500		257,100
Mineral exploration costs	2,060		7,494		24,431		46,737		124,403
Professional fees	11,960		19,288		44,630		62,871		615,509
Transfer agent and regulatory	508		1,159		1,782		9,245		57,628
Total Operating Expenses	23,624		37,186		101,645		144,886		1,472,371
Loss Before Other Income (Expense)	(23,624	)	(37,186	)	(101,645	)	(144,886	)	(1,472,371	)
Other Income (Expense)
Interest expense	(1,259	)	–		(2,341	)	–		(4,997	)
Interest income	–		–		–		–		14,491
Write-down of investment securities	–		–		–		–		(1,028,980	)
Write-off of accounts payable	–		2,656		–		2,656		2,656
Total Other Income (Expense)	(1,259	)	2,656		(2,341	)	2,656		(1,016,830	)
Net Loss	(24,883	)	(34,530	)	(103,986	)	(142,230	)	(2,489,201	)
Net Loss Per Share, Basic and Diluted	–		–		–		–
Weighted Average Shares Outstanding	33,160,660		33,160,660		33,160,660		32,878,878

(The accompanying notes are an integral part of these financial statements)

F-2

 

TERRACE VENTURES INC.
(An Exploration Stage Company)
Statements of Cash Flows
(Expressed in US dollars)
(unaudited)

	Nine Months Ended January 31, 2014 $		Nine Months Ended January 31, 2013 $		Accumulated from February 20, 2001 (date of inception) to January 31, 2014 $
Operating Activities
Net loss for the period	(103,986	)	(142,230	)	(2,489,201	)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange translation loss	1,668		–		1,668
Impairment of mineral property costs	–		–		2,500
Write-down of investment securities	–		–		1,028,980
Write-off of accounts payable	–		2,656		2,656
Changes in operating assets and liabilities:
Prepaid expenses	–		8,519		–
Accounts payable and accrued liabilities	58,665		68,674		235,220
Net Cash Used in Operating Activities	(43,653	)	(62,381	)	(1,218,177	)
Investing Activities
Investment in investment securities	–		–		(3,175	)
Investment in mineral property	–		–		(1,028,980	)
Net Cash Used in Investing Activities	–		–		(1,032,155	)
Financing Activities
Proceeds from loans payable	53,357		–		60,357
Repayment of loans payable	–		(5,000	)	(5,000	)
Proceeds from related party	–		–		157,395
Repayment of related party	–		–		(157,395	)
Proceeds from issuance of common stock	–		–		184,500
Proceeds from share subscriptions received	–		–		2,020,895
Net Cash Provided by (Used in) Financing Activities	53,357		(5,000	)	2,260,752
Increase (Decrease) in Cash and Cash Equivalents	9,704		(67,381	)	10,420
Cash and Cash Equivalents, Beginning of Period	716		69,157		–
Cash and Cash Equivalents, End of Period	10,420		1,776		10,420
Cash and Cash Equivalents consists of:
Cash	1		21		1
Funds held in trust by lawyer	10,419		1,755		10,419
Total Cash and Cash Equivalents	10,420		1,776		10,420
Non-cash investing and financing activities
Mineral properties acquired via loan payable	–		–		25,000
Cancellation of loan payable offset against mineral property costs	–		(20,000	)	(20,000	)
Supplemental Disclosures:
Interest paid	–		–		–
Income taxes paid	–		–		–

(The accompanying notes are an integral part of these financial statements)

F-3

 

TERRACE VENTURES INC.
(An Exploration Stage Company)
Notes to the financial statements
January 31, 2014
(Expressed in US dollars)
(unaudited)

1. Basis of Presentation

Terrace Ventures Inc. (the “Company”) was incorporated on February 20, 2001 in the State of Nevada. 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 is in the business of acquiring, exploring, and developing mineral properties.

The accompanying financial statements of the Company should be read in conjunction with the financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2013. In the opinion of management, the accompanying financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and its cash flows for the periods shown.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year.

These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize it assets and discharge its liabilities in the normal course of business. As at January 31, 2014, the Company has not generated any revenues, has a working capital deficit of $289,481 and has an accumulated deficit of $2,489,201. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

2. Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

3. Mineral Properties

On April 26, 2011 (as amended on July 31, 2012, November 17, 2012, May 30, 2013, and December18, 2013), the Company entered into an agreement to acquire up to a 75% interest in 83 mineral claims located in the Eureka Mining District in Eureka County, Nevada.

To earn the first 25% interest, the Company must:

• issue a $25,000 promissory note which was originally due on June 10, 2011 (issued); and
• incur exploration expenditures of $250,000 on or before June 30, 2014.

To earn an additional 25% interest, the Company must:

• pay $75,000 on or before June 30, 2014; and
• incur total exploration expenditures of $750,000 on or before December 31, 2014.

To earn a further 25% interest, the Company must:

• pay $100,000 on or before June 30, 2015; and
• incur total exploration expenditures of $1,250,000 on or before December 31, 2015.

F-4

 

TERRACE VENTURES INC.
(An Exploration Stage Company)
Notes to the financial statements
January 31, 2014
(Expressed in US dollars)
(unaudited)

3. Mineral Properties (continued)

On June 29, 2011, the $25,000 promissory note was extended to September 27, 2011 and the Company agreed to pay interest at a rate of 10% per annum. On December 31, 2011, the promissory note was increased to $30,000 with $5,000 due on March 31, 2012, $5,000 due on June 30, 2012, $10,000 due on September 30, 2012, and $10,000 due on December 31, 2012. On April 27, 2012, the Company paid $5,000 of the promissory note. On July 11, 2012, the Company paid $5,000 of the promissory note. On September 20, 2012, the $10,000 due on September 30, 2012 and December31, 2012 were each extended to February 28, 2013. On November 9, 2012, the remainder of the promissory note was cancelled.

4. Related Party Transactions

(a) During the nine months ended January 31, 2014, the Company incurred management fees of $22,500 (2013 - $22,500) to the President of the Company.

(b) As at January 31, 2014, the Company owes $66,482 (April 30, 2013 - $45,682) to the President of the Company for management fees and general operation expenses. The amount is included in accounts payable and is non-interest bearing, unsecured, and due on demand.

5. Loans Payable

(a) As at January 31, 2014, the Company had loans payable of $7,080 (April 30, 2013 - $7,000), which is non-interest bearing, unsecured, and due on demand.

(b) As at January 31, 2014, the Company had loans payable of $30,000 (April 30, 2013 - $nil), which bears interest at 8% per annum, is unsecured, and due on demand.

(c) As at January 31, 2014, the Company had loans payable of $2,500 and $22,445 (Cdn$25,000) (April 30, 2013 - $nil), which bears interest at 10% per annum, is unsecured, and due on demand.

F-5

 

ITEM 2.            MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Quarterly Report constitute "forward-looking statements.”  These statements, identified by words such as “plan,” "anticipate," "believe," "estimate," "should," "expect" and similar expressions include our expectations and objectives regarding our future financial position, operating results and business strategy. These statements reflect the current views of management with respect to future events and are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those described in the forward-looking statements. Such risks and uncertainties include those set forth under the caption "Part II – Item 1A. Risk Factors" and elsewhere in this Quarterly Report. We do not intend to update the forward-looking information to reflect actual results or changes in the factors affecting such forward-looking information. We advise you to carefully review the reports and documents, particularly our Annual Reports, Quarterly Reports and Current Reports, that we file from time to time with the United States Securities and Exchange Commission (the “SEC”).

OVERVIEW

We were incorporated on February 20, 2001 under the laws of the State of Nevada.   

Our business plan is to assemble a portfolio of mineral properties with gold potential and to engage in the exploration and development of these properties.  We currently have an earn-in agreement to acquire 75% interest in Pengram Corporation's agreement with Scoonover Exploration LLC and JR Exploration LLC (the “Underlying Agreement”) to acquire the Golden Snow Property. The Golden Snow Property consists of 128 mineral claims located in the Eureka Mining District in Eureka County, Nevada.

Earn-In Agreement

On April 26, 2011, we entered into an agreement with Pengram Corporation ("Pengram") dated April 26, 2011, as amended on June 29, 2011, September 20, 2012, November 17, 2012, May 30, 2013 and December 18, 2013 (the "Earn-In Agreement") whereby we will earn up to a 75% interest in Pengram's agreement with Scoonover Exploration LLC and JR Exploration LLC (the “Underlying Agreement”) to acquire the Golden Snow Property by paying to Pengram up to $175,000 and expending up to $1,250,000 to do exploration work on the Golden Snow Property as follows:

(i) The first 25% interest in the Underlying Agreement upon the Company completing cumulative exploration expenditures on the Property totalling $250,000 by June 30, 2014.

(ii) An additional 25% interest in the Underlying Agreement upon the Company:

a. paying Pengram $75,000 on or before June 30, 2014; and

b. completing cumulative exploration expenditures on the Property totalling $750,000 by December 31, 2014.

(iii) An additional 25% interest in the Underlying Agreement upon the Company:

a. paying Pengram $100,000 on or before June 30, 2015; and

b. completing exploration expenditures on the Property totalling $1,250,000 by December 31, 2015.

The Company is also obligated to pay all advance royalties, county and BLM claim fees and Nevada state taxes during the currency of the Earn-In Agreement. There is no assurance that the Company will be able to perform its obligations under the Earn-In Agreement. 

3

 

PLAN OF OPERATION

Over the next twelve months, our plan of operation is to focus our resources on the exploration of the Gold Snow Property.  Subject to obtaining sufficient financing, we plan to retain a consulting geologist to conduct a review of the property in order to recommend an exploration program to be conducted in summer of 2014.  Once our consulting geologist has provided us with their findings, we will determine whether to proceed with an exploration program on these properties.

During the next twelve months, we will be required to make a number of payments in order to maintain our interest to acquire a 75% interest in the Golden Snow Project.  Under the terms of our Earn-In Agreement, in order to keep the Golden Snow Property in good standing, we are required: (i) to pay to Pengram $75,000 being the amount payable on June 30, 2014; (ii) complete cumulative exploration expenditures of $250,000 by June 30, 2014; (iii) pay the Bureau of Land Management maintenance and claim fees by September 1, 2014; and (iv) pay any advance royalty payments.  If we are unable to make the payments to Claremont or the Bureau of Land Management we will lose our interest in the Golden Snow Property.

As the agreement is an option, we may decide at any time not to proceed in which case we would not be liable to pay any funds beyond the amounts due at the time we provide notice that we are not proceeding.  There is no assurance that we will exercise the option.

As at January 31, 2014, we had $10,420 cash on hand.  Accordingly, we have insufficient cash on hand to proceed with our exploration on the Golden Snow Project and meet our ongoing operating costs.  As such, we will require substantial financing in order to meet our obligations.  There is no assurance that we will be able to acquire such financing on terms that are acceptable to us, or at all. 

RESULTS OF OPERATIONS

Three Months and Nine months Summary

		Three Months Ended January 31					Percentage Increase / (Decrease)			Nine months Ended January 31					Percentage Increase / (Decrease)
		2014			2013					2014			2013
Revenue	$	-		$	-		n/a		$	-		$	-		n/a
Operating Expenses		(23,624	)		(37,186	)	(36.5%	)		(101,645	)		(144,886	)	(29.8%	)
Other Income (Expenses)		(1,259	)		2,656		(147.4%	)		(2,341	)		2,656		(188.1%	)
Net Income (Loss)	$	(24,883	)	$	(34,530	)	(27.9%	)	$	(103,986	)	$	(142,230	)	(26.9%	)

Revenues

We have not earned any revenues since our inception and we do not anticipate earning revenues in the near future. 

4

 

Expenses

The major components of our expenses for the three and nine months ended January 31, 2014 and 2013 are outlined in the table below:

		Three Months Ended   January 31,					Percentage Increase / (Decrease)			Nine months Ended   January 31,					Percentage Increase / (Decrease)
		2014			2013					2014			2013
Operating Expenses:
Consulting fees	$	2,500		$	-		100.0%		$	7,500		$	-		100.0%
General and administrative		(904	)		1,745		(151.8%	)		802			3,533		(77.3%	)
Management fees		7,500			7,500		0.0%			22,500			22,500		0.0%
Mineral exploration costs		2,060			7,494		(72.5%	)		24,431			46,737		(47.7%	)
Professional fees		11,960			19,288		(38.0%	)		44,630			62,871		(29.0%	)
Transfer agent and regulatory fees		508			1,159		(56.2%	)		1,782			9,245		(80.7%	)
Sub-total	$	23,624		$	37,186		(36.5%	)	$	101,645		$	144,886		(29.8%	)
Other Income/Expenses:
Interest expense		1,259			-		100.0%			2,341			-		100.0%
Write-off of accounts payable		-			(2,656	)	(100.0%	)		-			(2,656	)	(100.0%	)
Sub-total	$	1,259		$	(2,656	)	(147.4%	)	$	2,341		$	(2,656	)	(188.1%	)
Total Expenses	$	(24,883	)	$	(34,530	)	(27.9%	)	$	(103,986	)	$	(142,230	)	(26.9%	)

Our operating expenses decreased during the three and nine months ended January 31, 2014. This decrease in our operating expenses is primarily due to decreases in general and administrative expenses, mineral exploration costs, professional fees, and transfer agent and regulatory fees.

Mineral exploration costs primarily relate to expenses incurred in connection with the Earn-In Agreement with Pengram.

Professional fees primarily relate to expenses incurred in connection with meeting our ongoing reporting obligations under the Exchange Act.

Management fees consist of amounts incurred to our sole executive officer and director for his management consulting services.

LIQUIDITY AND CAPITAL RESOURCES

Working Capital

		At January 31, 2014			At April 30, 2013		Percentage Increase / (Decrease)
Current Assets	$	10,420		$	716		1355.3%
Current Liabilities		(299,901	)		(186,211	)	61.1%
Working Capital Deficit	$	(289,481	)	$	(185,495	)	56.1%

Cash Flows

		Nine months Ended
		January 31, 2014			January 31, 2013
Net Cash Used by Operating Activities	$	(43,653	)	$	(62,381	)
Net Cash From Investing Activities		-			-
Net Cash Provided By (Used In) Financing Activities		53,357			(5,000	)
Net Increase (Decrease) in Cash During Period	$	9,704		$	(67,381	)

5

 

We had cash of $10,420 and a working capital deficit of $289,481 as of January 31, 2014 compared to a working capital deficit of $185,495 as of April 30, 2013.  The increase in our working capital deficit is due to an increase in accounts payable and loans payable as a result of our lack of capital to meet ongoing costs.

Financing Requirements

Currently, we do not have sufficient financial resources to meet our ongoing operating expenditures. As such, our ability to complete our plan of operation is dependent upon our ability to obtain additional financing in the near term.

We anticipate continuing to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our business operations.

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 is material to stockholders.

CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with United States generally accepted accounting principles requires our management to make estimates and assumptions that affect the reported amount 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 reporting period.  Actual results could differ from those estimates.  Our management routinely makes judgments and estimates about the effects of matters that are inherently uncertain. 

Mineral Property Costs

The Company has been in the exploration stage since its inception and has not yet realized any revenues from its planned operations. It is primarily engaged in the acquisition and exploration of mining properties. Mineral property acquisition costs are capitalized as incurred. Exploration and evaluation costs are expensed as incurred until proven and probable reserves are established. The Company assesses the carrying costs for impairment under ASC 360, “Property, Plant, and Equipment” at each fiscal quarter end. When it has been determined that a mineral property can be economically developed as a result of establishing proven and probable reserves, the costs then incurred to develop such property, are capitalized. Such costs will be amortized using the units-of-production method over the estimated life of the probable reserve. If mineral properties are subsequently abandoned or impaired, any capitalized costs will be charged to operations.

Long-lived Assets

In accordance with ASC 360, “Property Plant and Equipment”, the Company tests long-lived assets or asset groups for recoverability when events or changes in circumstances indicate that their carrying amount may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed significantly before the end of its estimated useful life. Recoverability is assessed based on the carrying amount of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value.

6

 

Stock-based Compensation

The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation” and ASC 505, “Equity Based Payments to Non-Employees”, using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

ITEM 3.            QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable.

ITEM 4.            CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

We carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of January 31, 2014 (the “Evaluation Date”).  This evaluation was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer.  Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of the Evaluation Date as a result of the material weaknesses in internal control over financial reporting discussed in our Annual Report on Form 10-K for the year ended April 30, 2013 (the “2013 Annual Report”).

Notwithstanding the assessment that our internal control over financial reporting was not effective and that there were material weaknesses as identified in our 2013 Annual Report, we believe that our financial statements contained in our Quarterly Report on Form 10-Q for the quarter ended January 31, 2014 fairly present our financial condition, results of operations and cash flows in all material respects.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended January 31, 2014 that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

7

 

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We are not a party to any other legal proceedings and, to our knowledge, no other legal proceedings are pending, threatened or contemplated.

ITEM 1A. RISK FACTORS.

The following are some of the important factors that could affect our financial performance or could cause actual results to differ materially from estimates contained in our forward-looking statements.  We may encounter risks in addition to those described below.  Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, may also impair or adversely affect our business, financial condition or results of operation.

If we do not obtain additional financing, our business will fail.

As at January 31, 2014, we had cash on hand of $10,420. Our plan of operation calls for significant expenses in order to meet our obligations under the Earn-In Agreement.  There is no guarantee that we will exercise our option.

Obtaining financing would be subject to a number of factors outside of our control, including market conditions and additional costs and expenses that might exceed current estimates.  These factors may make the timing, amount, terms or conditions of financing unavailable to us in which case we will be unable to complete our plan of operation on our mineral properties and to meet our obligations under our option agreements.

We have yet to attain profitable operations and because we will need to obtain financing to continue our business operations, our accountants believe that there is substantial doubt about our ability to continue as a going concern.

We have incurred a net loss of $2,489,201 for the period from February 20, 2001 (inception) to January 31, 2014 and have no revenues to date. Our future is dependent upon our ability to obtain financing.  Our auditors have expressed substantial doubt about our ability to continue as a going concern given our accumulated losses.  This opinion could materially limit our ability to raise additional funds by issuing new debt or equity securities or otherwise.  If we fail to raise sufficient capital, we will not be able to complete our business plan.  As a result, we may have to liquidate our business and investors may lose their investment.

We may conduct further offerings in the future in which case investors’ shareholdings will be diluted.

Since our inception, we have relied on equity sales of our common stock to fund our operations.  We may conduct additional equity offerings in the future to finance any future business projects that we decide to undertake. If common stock is issued in return for additional funds, the price per share could be lower than that paid by our current stockholders. We anticipate continuing to rely on equity sales of our common stock in order to fund our business operations. If we issue additional stock, investors’ percentage interest in us will be diluted. The result of this could reduce the value of their stock.

Because of the unique difficulties and uncertainties inherent in mineral exploration ventures, we face a high risk of business failure.

Investors should be aware of the difficulties normally encountered by new mineral exploration companies and the high rate of failure of such enterprises.  The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the exploration of the mineral properties that we plan to undertake.  These potential problems include, but are not limited to, unanticipated problems relating to exploration, and additional costs and expenses that may exceed current estimates.

8

 

We have no known mineral reserves and if we cannot find any, we will have to cease operations.

We have no mineral reserves.  If we do not find a mineral reserve containing gold or if we cannot explore the mineral reserve, either because we do not have the money to do it or because it will not be economically feasible to do it, we will have to cease operations and you will lose your investment.  Mineral exploration, particularly for gold, is highly speculative.  It involves many risks and is often non-productive.  Even if we are able to find mineral reserves on our properties, our production capability is subject to further risks including:

- Costs of bringing the property into production including exploration work, preparation of production feasibility studies, and construction of production facilities, all of which we have not budgeted for;

- Availability and costs of financing;

- Ongoing costs of production; and

- Environmental compliance regulations and restraints.

The marketability of any minerals acquired or discovered may be affected by numerous factors which are beyond our control and which cannot be accurately predicted, such as market fluctuations, the lack of milling facilities and processing equipment near our mineral properties, and such other factors as government regulations, including regulations relating to allowable production, importing and exporting of minerals, and environmental protection.

Given the above noted risks, the chances of finding reserves on our mineral properties are remote and funds expended on exploration will likely be lost.

Even if we discover proven reserves of precious metals on our mineral properties, we may not be able to successfully commence commercial production.

Our mineral properties do not contain any known bodies of ore.  If our exploration programs are successful in discovering proven reserves on our mineral properties, we will require additional funds in order to place the mineral properties into commercial production.  The expenditures to be made by us in the exploration of mineral properties in all probability will be lost as it is an extremely remote possibility that the mineral claims will contain proven reserves.  If our exploration programs are successful in discovering proven reserves, we will require additional funds in order to place the mineral properties into commercial production.  The funds required for commercial mineral production can range from several millions to hundreds of millions.  We currently do not have sufficient funds to place our mineral claims into commercial production.  Obtaining additional financing would be subject to a number of factors, including the market price for gold and the costs of exploring for or mining these materials.  These factors may make the timing, amount, terms or conditions of additional financing unavailable to us.  Because we will need additional financing to fund our exploration activities there is substantial doubt about our ability to continue as a going concern.  At this time, there is a risk that we will not be able to obtain such financing as and when needed.

We face significant competition in the mineral exploration industry.

We compete with other mining and exploration companies possessing greater financial resources and technical facilities than we do in connection with the acquisition of mineral exploration claims and leases on precious metal prospects and in connection with the recruitment and retention of qualified personnel.  There is significant competition for precious metals and, as a result, we may be unable to acquire an interest in attractive mineral exploration properties on terms we consider acceptable on a continuing basis.

There is no assurance that we will be able to comply with our obligations under the Earn-In Agreement.

In order comply with our obligations under the Earn-In Agreement we are required to make a series of cash payments and meet the annual claim maintenance fees.  In order to meet these payments we will need to obtain substantial financing.  If we are unable to meet these payments, we will lose our options to acquire these properties.

9

 

Because our sole director and executive officer does not have formal training specific to the technicalities of mineral exploration, there is a higher risk that our business will fail. 

Howard Thomson, our sole director and executive officer, does not have any formal training as a geologist or in the technical aspects of managing a mineral exploration company.  Mr. Thomson’s lack of expertise could cause irreparable harm to our operations, earnings, and ultimate financial success could suffer irreparable harm due to management's lack of experience in this industry.

Because the prices of metals fluctuate, if the price of metals for which we are exploring decreases below a specified level, it may no longer be profitable to explore for those metals and we will cease operations.

Prices of metals are determined by such factors as expectations for inflation, the strength of the United States dollar, global and regional supply and demand, and political and economic conditions and production costs in metals producing regions of the world.  The aggregate effect of these factors on metal prices is impossible for us to predict.  In addition, the prices of precious metals are sometimes subject to rapid short-term and/or prolonged changes because of speculative activities.  The current demand for and supply of these metals affect the metal prices, but not necessarily in the same manner as current supply and demand affect the prices of other commodities.  The supply of these metals primarily consists of new production from mining.  If the prices of the metals are, for a substantial period, below our foreseeable cost of production, we could cease operations and investors could lose their entire investment.

The quotation price of our common stock may be volatile, with the result that an investor may not be able to sell any shares acquired at a price equal to or greater than the price paid by the investor.

Our common shares are quoted on the OTC Markets under the symbol "TVER”.  Companies quoted on the OTC Markets have traditionally experienced extreme price and volume fluctuations.  In addition, our stock price may be adversely affected by factors that are unrelated or disproportionate to our operating performance.  Market fluctuations, as well as general economic, political and market conditions such as recessions, interest rates or international currency fluctuations may adversely affect the market price of our common stock.  As a result of this potential volatility and potential lack of a trading market, an investor may not be able to sell any of our common stock that they acquire at a price equal or greater than the price paid by the investor.

Because our stock is a penny stock, shareholders will be more limited in their ability to sell their stock.

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks.  Penny stocks are generally equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the Nasdaq system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or quotation system.  Because our securities constitute “penny stocks” within the meaning of the rules, the rules apply to us and to our securities.  The rules may further affect the ability of owners of shares to sell our securities in any market that might develop for them.  As long as the trading price of our common stock is less than $5.00 per share, the common stock will be subject to Rule 15g-9 under the Exchange Act.  The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that:

1. contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading;

2. contains a description of the broker’s or dealer’s duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of securities laws;

3. contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price;

4. contains a toll-free telephone number for inquiries on disciplinary actions;

5. defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and

6. contains such other information and is in such form, including language, type, size and format, as the SEC shall require by rule or regulation.

10

 

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with: (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statements showing the market value of each penny stock held in the customer’s account.  In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a written suitably statement.  These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock.

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

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. MINE SAFETY DISCLOSURES.

None.

ITEM 5. OTHER INFORMATION.

We have become aware that six of the persons who acquired shares under the our Regulation S private placement offering had misrepresented to us that they were “accredited investors” as that term is defined in National Instrument 45-106 as adopted by Canadian Securities Administrators. Although we are not legally required to do we have advised the British Columbia Securities Commission that we intend to make a rescission offer to those investors.  The exact terms of the offer have not been determined. If the offer is accepted by all of the investors the total cost of the rescission will be $62,000.

11

 

ITEM 6. EXHIBITS.

Exhibit Number	Description of Exhibit
3.1	Articles of Incorporation.(1)
3.2	Certificate of Change to Authorized Capital effective December 19, 2005.(2)
3.3	Bylaws.(1)
10.1	2006 Stock Incentive Plan.(4)
10.2	Stock Option Agreement between the Company and Howard Thomson dated March 31, 2006.(4)
10.3	Management Consulting Agreement dated March 21, 2006 between the Company and Howard Thomson.(4)
10.4	Interim Agreement dated July 9, 2008 between the Company and Pyro Pharmaceuticals, Inc.(5)
10.5	Amendment Agreement dated September 26, 2008 to the Interim Agreement dated July 9, 2008 between the Company and Pyro Pharmaceuticals, Inc.(6)
10.6	Share Purchase Agreement dated April 29, 2009 among Terrace Ventures Inc., Marktech Acquisition Corp., Worldbid International Inc. and Geobiz Systems Inc.(7)
10.7	Amendment Agreement to Share Purchase Agreement dated August 12, 2009 among Terrace Ventures Inc., Marktech Acquisition Corp., Worldbid International Inc. and Geobiz Systems Inc.(8)
10.8	Earn-In Agreement (Golden Snow) dated April 26, 2011 between Pengram Corporation and Terrace Ventures Inc.(9)
10.9	Earn-In Extension Agreement (Golden Snow) dated June 29, 2011 between Pengram Corporation and Terrace Ventures Inc.(10)
10.10	Amendment Agreement dated November 17, 2012, between Pengram Corporation and Terrace Ventures Inc.(11)
10.11	Amendment Agreement dated for reference May 30, 2013, between Pengram Corporation and Terrace Ventures Inc.(11)
10.12	Amendment Agreement dated December 18, 2013, between Pengram Corporation and Terrace Ventures Inc.(12)
14.1	Code of Ethics.(3)
31.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer and Chief Financial Officer pursuant to pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase.
101.DEF	XBRL Taxonomy Extension Definition Linkbase.
101.LAB	XBRL Taxonomy Extension Label Linkbase.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase.

Notes:

(1) Filed with the SEC as an exhibit to our Registration Statement on Form 10-SB originally filed on February 2, 2004.

(2) Filed with the SEC as an exhibit to our Current Report on Form 8-K filed on December 27, 2005.

(3) Filed with the SEC as an exhibit to our Annual Report on Form 10-KSB filed on September 8, 2004.

(4) Filed with the SEC as an exhibit to our Quarterly Report on Form 10-QSB filed on March 22, 2006.

(5) Filed with the SEC as an exhibit to our Current Report on Form 8-K filed on July 15, 2008.

(6) Filed with the SEC as an exhibit to our Current Report on Form 8-K filed on October 2, 2008.

(7) Filed with the SEC as an exhibit to our Current Report on Form 8-K filed on April 29, 2009.

(8) Filed with the SEC as an exhibit to our Annual Report on Form 10-K filed on August 13, 2009.

(9) Filed with the SEC as an exhibit to our Current Report on Form 8-K filed on April 28, 2011.

(10) Filed with the SEC as an exhibit to our Annual Report on Form 10-K filed on August 15, 2011.

(11) Filed with the SEC as an exhibit to our Current Report on Form 8-K filed on September 12, 2013

(12) Filed with the SEC as an exhibit to our Quarterly Report on Form 10-Q filed on March 19, 2014.

12

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			TERRACE VENTURES INC.
Date:	March 25, 2014	By:	/s/ Howard Thomson
			HOWARD THOMSON
			Chief Executive Officer, Chief Financial Officer,
			President, Secretary and Treasurer
			(Principal Executive Officer & Principal Accounting Officer)

EX-31.1

CERTIFICATIONS

I, Howard Thomson, certify that;

(1) I have reviewed this Quarterly Report on Form 10-Q of Terrace Ventures 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) I am 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 Rule 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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 that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

(5) I have disclosed, based on my most recent evaluation of the 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: March 25, 2014

	/s/ Howard Thomson
	___________________________________
By:	HOWARD THOMSON
Title:	Chief Executive Officer and
	Chief Financial Officer

EX-32.1

CERTIFICATION OF
CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Howard Thomson, the Chief Executive Officer and Chief Financial Officer of Terrace Ventures Inc. (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, to the best of my knowledge:

(i) the Quarterly Report on Form 10-Q of the Company, for the fiscal quarter ended January 31, 2014, and to which this certification is attached as Exhibit 32.1 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

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

By:	/s/ Howard Thomson
Name:	HOWARD THOMSON
Title:	Chief Executive Officer and Chief Financial Officer
Date:	March 25, 2014

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 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.

This certification accompanies the Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission 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 Form 10-Q), irrespective of any general incorporation language contained in such filing.

XML

Related Party Transactions

9 Months Ended

Jan. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

4. Related Party Transactions

(a) During the nine months ended January 31, 2014, the Company incurred management fees of $22,500 (2013 - $22,500) to the President of the Company.

(b) As at January 31, 2014, the Company owes $66,482 (April 30, 2013 - $45,682) to the President of the Company for management fees and general operation expenses. The amount is included in accounts payable and is non-interest bearing, unsecured, and due on demand.

XML

Mineral Properties

9 Months Ended

Jan. 31, 2014

Extractive Industries [Abstract]

Mineral Properties

3. Mineral Properties

On April 26, 2011 (as amended on July 31, 2012, November 17, 2012, May 30, 2013, and December 18, 2013), the Company entered into an agreement to acquire up to a 75% interest in 83 mineral claims located in the Eureka Mining District in Eureka County, Nevada.

To earn the first 25% interest, the Company must:

· issue a $25,000 promissory note which was originally due on June 10, 2011 (issued); and

· incur exploration expenditures of $250,000 on or before June 30, 2014.

To earn an additional 25% interest, the Company must:

·pay $75,000 on or before June 30, 2014; and

·incur total exploration expenditures of $750,000 on or before December 31, 2014.

To earn a further 25% interest, the Company must:

·pay $100,000 on or before June 30, 2015; and

·incur total exploration expenditures of $1,250,000 on or before December 31, 2015.

On June 29, 2011, the $25,000 promissory note was extended to September 27, 2011 and the Company agreed to pay interest at a rate of 10% per annum. On December 31, 2011, the promissory note was increased to $30,000 with $5,000 due on March 31, 2012, $5,000 due on June 30, 2012, $10,000 due on September 30, 2012, and $10,000 due on December 31, 2012. On April 27, 2012, the Company paid $5,000 of the promissory note. On July 11, 2012, the Company paid $5,000 of the promissory note. On September 20, 2012, the $10,000 due on September 30, 2012 and December 31, 2012 were each extended to February 28, 2013. On November 9, 2012, the remainder of the promissory note was cancelled.

XML

Balance Sheets (Unaudited) (USD $)	Jan. 31, 2014	Apr. 30, 2013
ASSETS
Cash	$ 10,420	$ 716
Total Current Assets	10,420	716
Mineral property costs	5,675	5,675
Total Assets	16,095	6,391
LIABILITIES AND STOCKHOLDERS DEFICIT
Accounts payable and accrued liabilities	237,876	179,211
Loans Payable	62,025	7,000
Total Liabilities	299,901	186,211
Stockholders Deficit
Authorized: 400,000,000 shares, par value $0.001 Issued and outstanding: 33,160,660 shares	33,161	33,161
Additional Paid in Capital	2,172,234	2,172,234
Deficit Accumulated During the Exploration Stage	(2,489,201)	(2,385,215)
Total Stockholders Deficit	(283,806)	(179,820)
Total Liabilities and Stockholders' Deficit	$ 16,095	$ 6,391

XML

Basis of Presentation

9 Months Ended

Jan. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

1. Basis of Presentation

Terrace Ventures Inc. (the “Company”) was incorporated on February 20, 2001 in the State of Nevada. 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 is in the business of acquiring, exploring, and developing mineral properties.

The accompanying financial statements of the Company should be read in conjunction with the financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company’s Annual Report on Form 10-K for the fiscal year ended April 30, 2013. In the opinion of management, the accompanying financial statements reflect all adjustments of a recurring nature considered necessary to present fairly the Company’s financial position and the results of its operations and its cash flows for the periods shown.

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ materially from those estimates. The results of operations and cash flows for the periods shown are not necessarily indicative of the results to be expected for the full year.

These financial statements have been prepared on a going concern basis, which implies the Company will continue to realize it assets and discharge its liabilities in the normal course of business. As at January 31, 2014, the Company has not generated any revenues, has a working capital deficit of $289,481 and has an accumulated deficit of $2,489,201. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

XML

Recent Accounting Pronouncements

9 Months Ended

Jan. 31, 2014

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

2. Recent Accounting Pronouncements

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

XML

Balance Sheets (Parenthetical) (USD $)	Jan. 31, 2014	Apr. 30, 2013
Statement of Financial Position [Abstract]
Common stock, shares authorized	400,000,000	400,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares issued	33,160,660	33,160,660
Common stock, shares outstanding	33,160,660	33,160,660

XML

Document and Entity Information	9 Months Ended
	Jan. 31, 2014	Mar. 20, 2014
Document And Entity Information
Entity Registrant Name	TERRACE VENTURES INC
Entity Central Index Key	0000821899
Document Type	10-Q
Document Period End Date	Jan. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--04-30
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		33,160,660
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2013

XML

Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended		155 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014
Income Statement [Abstract]
Revenue
Operating Expenses
Bad debts					214,892
Consulting fees	2,500		7,500		151,950
General and administrative	(904)	1,745	802	3,533	50,889
Management fees	7,500	7,500	22,500	22,500	257,100
Mineral exploration costs	2,060	7,494	24,431	46,737	124,403
Professional fees	11,960	19,288	44,630	62,871	615,509
Transfer agent and regulatory fees	508	1,159	1,782	9,245	57,628
Total Operating Expenses	23,624	37,186	101,645	144,886	1,472,371
Loss Before Other Income (Expense)	(23,624)	(37,186)	(101,645)	(144,886)	(1,472,371)
Other Income (Expense)
Interest expense	(1,259)		(2,341)		(4,997)
Interest income					14,491
Write-down of investment securities					(1,028,980)
Write-off of accounts payable		2,656		2,656	2,656
Total Other Income (Expense)	(1,259)	2,656	(2,341)	2,656	(1,016,830)
Net Loss	$ (24,883)	$ (34,530)	$ (103,986)	$ (142,230)	$ (2,489,201)
Net Loss Per Share, Basic and Diluted
Weighted Average Shares Outstanding	33,160,660	33,160,660	33,160,660	32,878,878

XML

Mineral Properties (Details Narrative) (USD $)	Apr. 26, 2011
Mineral Properties Details Narrative
Acquire Mineral Claim Percentage	25
Promissory Note	$ 25,000
Exploration Expenditures	250,000
Acquire Mineral Claim Percentage (additional)	25
Payment	75,000
Exploration Expenditures	750,000
Acquire Mineral Claim Percentage (additional)	25
Payment	100,000
Exploration Expenditures	$ 1,250,000

XML

Basis of Presentation (Details Narrative) (USD $)	9 Months Ended
	Jan. 31, 2014	Apr. 30, 2013
Basis Of Presentation Details Narrative
Date of Incorporation	Feb. 20, 2001
Incorporation State	Nevada
Working Capital Deficit	$ (289,481)
Accumulated Deficit	$ (2,489,201)	$ (2,385,215)

XML

Related Party Transactions (Details Narrative) (USD $)	3 Months Ended		9 Months Ended		155 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014	Apr. 30, 2013
Management Fees	$ 7,500	$ 7,500	$ 22,500	$ 22,500	$ 257,100
Accounts Payable	237,876		237,876		237,876	179,211
President Of The Company [Member]
Accounts Payable	$ 66,482		$ 66,482		$ 66,482	$ 45,682

XML

Loans Payable (Details Narrative) (USD $)	Jan. 31, 2014	Apr. 30, 2013
1st [Member]
Loans Payable	$ 7,080	$ 7,000
2nd [Member]
Loans Payable	30,000
Interest Rate	8
3rd [Member]
Loans Payable	$ 25,000
Interest Rate	10

XML

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended		155 Months Ended
	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2014
Statement of Cash Flows [Abstract]
Net loss for the period	$ (103,986)	$ (142,230)	$ (2,489,201)
Foreign exchange translation loss	1,668		1,668
Impairment of mineral property costs			2,500
Write-down of investment securities			1,028,980
Write-off of accounts payable		2,656	2,656
Prepaid expenses		8,519
Accounts payable and accrued liabilities	58,665	68,674	235,220
Net Cash Used in Operating Activities	(43,653)	(62,381)	(1,218,177)
Mineral property acquisition costs			(3,175)
Purchase of investment securities			(1,028,980)
Net Cash Used in Investing Activities			(1,032,155)
Proceeds from loans payable	53,357		60,357
Repayment of loans payable		(5,000)	(5,000)
Proceeds from related party			157,395
Repayment of related party			(157,395)
Proceeds from issuance of common stock			184,500
Proceeds from share subscriptions received			2,020,895
Net Cash Provided by (Used in) Financing Activities	53,357	(5,000)	2,260,752
Increase (Decrease) in Cash and Cash Equivalents	9,704	1,776	10,420
Increase (Decrease) in Cash	716	69,157
Cash, Beginning of Period	716	1,776	10,420
Cash, End of Period	10,420		10,420
Cash	1	21	1
Funds held in trust by lawyer	10,419	1,755	10,419
Total Cash and Cash Equivalents	10,420	1,776	10,420
Mineral properties acquired via loan payable			25,000
Cancellation of loan payable offset against mineral property costs		(20,000)	(20,000)
Interest paid
Income taxes paid

XML

Loans Payable

9 Months Ended

Jan. 31, 2014

Payables and Accruals [Abstract]

Loans Payable

5. Loans Payable

(a) As at January 31, 2014, the Company had loans payable of $7,080 (April 30, 2013 - $7,000), which is non-interest bearing, unsecured, and due on demand.

(b) As at January 31, 2014, the Company had loans payable of $30,000 (April 30, 2013 - $nil), which bears interest at 8% per annum, is unsecured, and due on demand.

(c) As at January 31, 2014, the Company had loans payable of $2,500 and $22,445 (Cdn$25,000) (April 30, 2013 - $nil), which bears interest at 10% per annum, is unsecured, and due on demand.