International Alliance Resources Inc. Files Audited Annual Financial Statements With SEDAR

International Alliance Resources Inc. [NEX: ALL.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th. The financials [PDF file] got an unqualified opinion from the auditors.

There was no cash listed on the balance sheet for either FY 2007 or FY 2006. Current assets totaled $38,682 in FY '07, up from $29,392 in FY '06. Current liabilities, almost all of which were accounts payable and accrued expenses, went from $1,713,847 in FY '06 to $1,965,967. As a result, the working capital deficit increased from $1,684,455 to $1,918,822. Book value increased from -36.1 cents/share to -8.31 cents/share because of an increase in the weighted average of common shares from 4,566,319 to 22,613,258. This increase was due to a private placement of 18,299,999 shares for net proceeds of $1,145,396 ($1,170,000 gross) near the beginning of FY '07. The book value in dollar terms decreased from -$1,646,612 to -$1,879,675.

Expenses in FY '07 were $223,492, $39,954 less than FY '06's $263,446. $21,439 of that shrinkage was attributed to no stock-based compensation in FY '07, as compared with the same $21,439 in FY '06. The other main cause of the shrinking was a $15,800 decrease in interest and bank charges, to $75,061. A $9,571 write-down of a resource property increased the net loss for FY '07 to $233,063, as compared with that same $263,446 in FY '06. The increase in the number of issued shares was the main reason for the per-share loss shrinking from 5.77 cents/share to 0.986 cents/share. Because there was a $250,505 increase in accounts payable, operating activities actually provided $18,033 in cash during FY '07, as compared with the use of $1,132,063 in FY '06. Because investing activities consumed $19,648 in FY '07, as compared with $15,225 in FY '06, cash went down by $1,615 in the former period to a deficit (overdraft) of $2,109. As specified in Note 3 of the financials, Alliance owns claims in the Yukon Territory, the Hess River Project. Almost all of the money used for investment activities was spent on these claims, for acquisition of more of them ($15,225) and exploration on them ($3,648.) As might be expected, Note 8 discloses that accounts payable includes $241,740 owed to directors or companies controlled by them at the end of FY '07, as compared with $206,345 at the end of FY '06.

Note 10 specifies two option agreements entered into, for a 70% interest in the Parallax Claims and a 51% interest in the Shaver Lake Property. Each of the two are being pursued as potential qualifying transactions for listing on Tier 2 of the Venture Exchange. Alliance intends to pursue a $2,422,000 non-brokered private placement to meet the expenses of their commitments to explore the former property.