Arcland Resources Inc. Files Interim, Unaudited Statement With SEDAR

Arcland Resources Inc. [NEX: ADR.H] has filed its latest interim (unaudited) financial statements for the third quarter of FY '07, ended August 31st [PDF file], and the accompanying Management Discussion and Analysis [another PDF file.] As of the end of August, cash and cash equivalents were at $22,071, up from $1,367 as of the end of fiscal year 2006 on November 30th of the same year. The rest of the current assets are in the form of GST receivables, down from $1,900 to $1,504 as of 3Q FY '07. Because loans payable increased by $111,011 during the first three quarters of '07, Arcland's working capital deficit increased from $132,261 to a $215,104 shortfall. Those loans, according to Note 5 of the financials, "are unsecured, non-interest bearing, no specific terms of repayment and payable to directors of the Company."

Book value shrank from -3.32 cents/share to -5.42 cents/share. The reason is Arcland's lack of revenue; this lack is not uncommon for NEX stocks. The net loss for 3Q '07 was $7,373 more than the loss in 3Q '06 because of the addition of an $9,000 management fee, for 3Q '07 only, and an addition of $979 in promotion and entertainment expenses versus nil for 3Q '07 (although there were $633 worth for all of FY '06.) A $4,100 shrinkage in travel expenses from 3Q '06 to 4Q '07 partially mitigated the widening of the loss. The other expense items changed negligibly. Net loss per share for 3Q '07 was 1.02 cents/share as compared with a net loss of 0.833 cents/share for 3Q '06. The income statement rounds them both off to losses of 1 cent/share.

The statement of cash flows accounts for the above-mentioned loans as cash infusions, which have kept the company afloat. Note 7 notes that the management fee was paid to a senior officer and/or director.

The M D & A notes that the company is inactive, but is pursuing opportunities that would qualify it to move to Tier 2, or perhaps Tier 1, of the Venture Stock Exchange. As of the time of the writing of the M D & A, "management has narrowed the search down to several mining businesses and is in negotiations with the principals of the targets." In the Statement of Risks and Uncertainties, though, it is noted that there is no definite deal on the horizon. Arcland closed on Tuesday at 17.5 cents/share, down 6.5 cents/share on the day on 500-share volume. One trade made for this decline. The two documents summarized above were released after the close of Tuesday's trading.