News Releases From NEX Companies For November 2nd

There was one news release from a NEX company that was picked up by Marketwire on Friday. The Endurance Fund Corporation [NEX: END.H] announced that it had received qualified approval from the TSX Venture for its Qualifying Transaction, a takeover of North American Uranium Corp., which is expected to close as of November 15th. A private placement is expected to close concurrently. Once done, Endurance plans to apply for transfer to Tier 2 of the Venture Exchange.

There were no bulletins from any NEX company at the bottom of Friday's TSX Venture Daily Bulletins, but there was one from a soon-to-be NEX issue. Everbright Capital Corporation [VSE: EBC.P] is moving to the NEX starting on Monday. As of then, its new symbol will be EBC.H. The company is currently suspended from trading; it last closed at 10 cents/share in the beginning of May. Canjex Publishing has webbed a copy of the bulletin announcing the transfer.

One news release was sent out exclusively through Canjex on Friday. It's a report about the financial troubles that Stone Mountain Holdings Inc. [NEX: SMO.H] has been having - specifically, about its trouble with paying a rather large gas bill. Stone Mountain is being sued by Access Gas Services Inc. for an unpaid bill in the amount of $110,399 for gas provided ever since March of this year. "This should surprise no one. In a press release issued a week before Access filed its lawsuit, Stone Mountain said it was shutting down its business and liquidating the assets of its operating subsidiary Re-Con Building Products Inc. Re-Con owes HSBC Bank Canada $1.4-million, and Stone Mountain will use the proceeds of the liquidation to pay the bank. Louis Clarke, the company's president, also said that while Stone Mountain was a guarantor of subsidiary's debt, it did not expect HSBC would call the guarantee. Perhaps there will be something left over for the gas bill." SMO.H closed on Friday at 2.5 cents/share, down 0.5 cents/share from Thursday's close.

In addition to the above items, there were also SEDAR-filed financial statements announced on Friday:

• Nugget Resources Inc. has filed its audited annual financial statements for FY 2007, with accompanying M D & A.

To read about the highlighted NEX stocks for Friday, you can go here.

Nugget Resources Inc. Files Audited Annual Report With SEDAR

Nugget Resources Inc. [NEX: NUG.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 on Nugget's balance sheet for either fiscal year '07 or FY '06. Current assets increased from $1,338 in FY '06 to $3,395, but current liabilities also increased in the same time period, from $103,321 to $161,809. As a result, Nugget's working capital deficit increased from $101,983 to $158,414. Book value decreased from -0.676 cents/share to -1.05 cents/share.

Expenses went from $10,350 to $56,431, with all three expense categories going up. Transfer agent and filing fees went from $5,350 to $8,914; professional fees went from $5,000 to $16,686; and, general and administrative fees went from nil to $30,831 from FY '06 to FY '07. Since there were no other items, losses for each fiscal year equaled the expenses. In per-share terms, the FY '06 loss was 0.0686 cents and the FY '07 loss was 0.374 cents. The $21,223 used in operating activities was made up for by the same amount in advances from related parties, listed on the statement of cash flow as a financing transaction. As note 4 explains, there were two related-party debts of significance, as well as two others. The former two were: "At June 30, 2007 $47,314 (2006 - $27,676) was owed to Drillsearch Energy (Canada) Inc... for expenses paid by Drillsearch on behalf of the Company. At June 30, 2007 $31,800 (2006 - $nil) was owed to Modaven Capital Corporation... - a company controlled by a director - for consulting fees." The latter debt, as note 5 explains, is pursuant to a 2-year management contract made by Nugget with Modaven, for consulting services in exchange for $2,500/month.

The accompanying M D & A [PDF file] starts off by noting that Nugget has no assets of significance, which includes no mining properties or claims, and has no revenues. The rise in expenses is explained as necessiated by the reactivation of the company. (Nugget recently had two cease-trade orders against it revoked, as of October 18th for both of them. There are no more outstanding.) NUG.H still remains suspended by the exchange.

News Releases From NEX Companies For November 1st

There was one news release from a NEX company that was picked up by Marketwire on Thursday, from Silvio Ventures Inc. [NEX: SIV.H] The news release announces the appointment of Doris Meyer as a new director and new CFO of the company. Also, a controllership has been established and James Mackie will be filling it. Current chairman and CEO of Silvio, William Radvak, will remains as chairman and CEO but will step down as CFO. In addition, 250,000 in stock options have been granted, with strike price of 55 cents/share and life of five years. This issuance is subject to regulatory approval. SIV.H closed on Thursday at 56 cents/share, up 1 cent/share on the day.

Four bulletins from NEX companies were at the bottom of Thursday's TSX Venture Daily Bulletins. The first pertains to a trading halt in Avigo Resources Corp. [NEX: TMX.H], issued at 6:02 AM PT or 9:02 AM ET, and the second says that Avigo will remain halted. The company issued a news release during the halt period on Thursday, as described below. Canjex Publishing has webbed copies of both the halt and the continuance of it. TMX.H last closed on Wednesday at 60 cents/share.

The third has details on a private placement by Citadel Gold Mines Inc. [NEX: CGM.H], of 1,454,545 flow-through shares issued at a deemed price of 11 cents/share and 4,250,000 non-flow-through shares at a deemed price of 8 cents/share. There was only one placee for them, insider Dr. Bernard Sherman. Total gross proceeds were about $500,000 - to be exact, $499,999.95. Canjex has webbed a copy of the bulletin here. CGM.H last closed on October 26th, at 12.5 cents/share.

The fourth and final bulletin is a short one, which pertains to The Endurance Fund Corporation Inc. [NEX: END.H]. Its full text reads, "TSX Venture Exchange has accepted for filing the Company's CPC [Capital Pool Company, or "official" shell] Filing Statement dated October 31, 2007, for the purpose of filing on SEDAR." Canjex has a webbed copy here. END.H is currently suspended; it last closed at $1.22/share in May of 2005.

There were four news releases that were sent out exclusively through Canjex on Thursday. The first came from the above-mentioned Avigo, and announces a reverse takeover of/by Carbon Friendly Solutions Inc. (CFS,) "a private environmental company focused on global carbon emission reduction solutions." It currently conducts forestation projects in Poland through a wholly-owned subsidiary; in so doing, CFS generates vendible carbon-tax credits. It currently had gotten 32,809 credits from two reforestation projects in northern Poland, and plans to undertake two more now that leases have been secured for new land on which to tree-plant. "CFS intends to complete the two other afforestation projects in April, 2008, giving CFS approximately 65,000 additional credits during the project cycle period designated for sale in the Kyoto market and post-Kyoto-compliant market." Avigo plans: to issue 8 million common shares at a deemed price of 50 cents/share in exchange for all the shares of CFS; to change its name to Carbon Friendly Solutions Inc.; to bring the three controlling shareholders of CFS onto the board and two of them into top managment; and, to apply for a listing on Tier 2 of the Venture Exchange. An annual meeting will be convened on December 17 to secure shareholder approval of this reverse takeover. TMX.H last closed on Wednesday, at 60 cents/share.

The second release comes from Raptor Capital Corp. [NEX: RCP.H], and it announces a settlement of $395,000 worth of debt owed by Raptor (including accrued interest) in a share swap at a deemed price of 15 cents/share provided that a 20-for-1 consolidation is effected first. The rest of the release notes that Raptor has raised $140,000 by issuing promissory notes whose conversion feature has an exercise price equal to 70% of the above debtholders' settlement price. The consolidation requires regulatory and shareholder approval. RCP.H is currently suspended; it last closed on May 7th at 2 cents/share.

The third release comes from Treat Systems [TSZ.H], and it announces a $8.5 million financing in the form of subscription receipts, as brokered by PI Financial, in the form of 8.5 million subscription receipts at a deemed price of $1.00/receipt. "Each subscription receipt is exercisable for no additional consideration into one unit of Treat upon the satisfaction of certain of Treat release conditions being met. Each unit will comprise one common share and one-half of a warrant. Each whole warrant will be exercisable for one common share of Treat at an exercise price of $1.50 over a two-year term, from the closing date. Gross proceeds are being held in escrow pending satisfaction of the release conditions." The flow-through part, in the amount of $3,025,000, is expected to close concurrently with a transaction that is expected to be a Qualifying one for the purposes of moving to the Tier 2. It also will serve as a change-of-business transaction, to mining under the name Mega Silver Inc. The compensation for PI includes a series of 600,800 broker warrants that will be rendered null and void if Treat does not have access to the funds by December 18th. TSZ.H is currently halted; it last closed at $1.20/share on March 8th.

The fourth and final release disseminated through Canjex comes from International Alliance Resources Inc. [NEX: ALL.H]. It announces Alliance's plans to seek shareholder approval for changing its name and consolidating its shares on a 1-for-5 basis at its upcoming shareholders' meeting. Both of these changes are subject to TSX Venture approval. ALL.H last traded on Wednesday, and closed at 17.5 cent/share on that day.

In addition to the above items, there were also SEDAR-filed financial statements announced on Wednesday, and summarized in this blog for Thursday's report:

• International Alliance has filed its audited annual financial statements for FY 2007.
• Military Internatioal Ltd. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.

To read about the highlighted NEX stocks for Thursday, you can go here.

Military International Ltd. Files Audited Annual Report With SEDAR

Military International Ltd. [NEX: MI.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 on the balance sheet for either fiscal year '07 or FY '06. Current assets went from nil in FY '06 to $775 in FY '07. Current liabilities more than doubled, from $144,152 to $324,703; consequently, the working capital deficit went from $144,152 to $323,928. Book value shrunk from -2.16 cents/share to -4.87 cents/share. The $50,835 used in operating activities was covered in full by an increase in the amount due to directors, put in the cash flow statement as a financing activity - the only one. Expenses ballooned from $5,092 in FY '06 to $179,776 in FY '07, pushing the loss per share up from 0.0762 cents to 2.69 cents. Military International has $1,801,664 of tax-loss carry-forwards, $757,422 of which expire in 2008. Note 4 explains that the advances from directors are accrued as loans payable; they have no fixed term of repayment and bear no interest. The $50,835 advance was net of $55,835, shrunk by a $5,000 payment from the company to its directors. The accompanying M D & A [PDF file] explains that the increase in expenses are due to re-activation and an attempt to get listed on the Tier 2 of the Venture Exchange. It also explains that a cease-trade order has been issued against it for failure to file financial statements, which has not been rescinded as of yet even though the financials are up to date as of now. MI.H remains suspended.

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.

News Releases From NEX Companies For October 31st

There was one news release from a NEX company that was picked up by Marketwire on Wednesday. It was from Wavefire.com Inc. [NEX: WAF.H], and it announces an advance of about $172,000 to Wavefire.com from a director. "The loan has no fixed terms of repayment and the director will be reimbursed for costs incurred in making the advance. The amount represents the prospect fee (plus GST) payable by [WAF.H] under its farm-in agreement announced on October 16, 2007." This advance is subject to certain approvals. WAF.H closed on Wednesday at 22 cents/share, up 5 cents/share from Tuesday's close.

One bulletin from a NEX company was in Wednesday's TSX Venture Daily Bulletins. International Silver Ridge Resources Inc. [NEX: ISG.H] is coming out of suspension, and will resume trading as of Thursday's opening.

Three news releases were sent out exclusively through Canjex Publishing on Wednesday. The first pertains to Pinewood Resources Ltd. [NEX: PNW.H], which is currently under suspension: it's an excerpt from a news story in the Vancouver Sun about Terry Alexander. The B.C Securities Commission has ruled that Mr. Alexander has violated an earlier BCSC suspension on him that "prohibited him from acting as an officer or director, or engaging in investor relations, for any B.C. company, private or public, for 20 years." He nevertheless is "involved" as a director (and possibly as an officer) with Pinewood. The finding of the BCSC are reported on here. PNW.H last traded near the end of 2004, closing at 18 cents/share.

The second release comes from Tri-River Ventures Inc. [NEX: TVR.H]. It announces the closing of a private placement of 400,000 units, at a price of 22.5 cents per unit for total gross proceeds of $90,000. Each unit contains one common share and a purchase warrant for a common share with exercise price of 45 cents/share and life of one year. TVR.H closed at 45 cents/share on Wednesday, up 15 cents/share from its previous close. This close made for a new 52-week high.

The third and final release from Canjex is about Noise Media [NEX: NMA.H] and it follows on the heels of Tuesday's revocation of a cease-trade order against Noise by the Alberta Securities Commission. It announces that the Venture has conditionally de-suspended the company in conjuction with a conditional approval for Noise to move to Tier 2 of the Venture exchange as a mining issuer, due to its acquisition of "a 100-per-cent interest in 14 mineral claims located in the Valle-de-l'Or county municipality, Courville township, Quebec, subject to a 1.5-per-cent net smelter return" in exchange for 1 million shares of Noise. The company also plans to consolidate its shares on a 1-to-4 basis, to change its name to GFK Resources Inc. and to complete two different private placements. Not specified in the news release is whether or not the 1 million shares issued for the claims was pre- or post-consolidation. The first placement has a deemed price of 8 cents/share, with gross proceeds of $100,000, and the second one has a deemed price of 18 cents/unit (containing one share and a purchase warrant with unspecified terms) and is expected to raise $550,000. The proceeds from both will "be used to carry out the recommended work program on the property and for estimated general operating expenses and administration expenses of the company for the ensuing 12 months." Whether these placements will occur pre- or post consolidation isn't specified either, but it seems reasonable to assume that the first was pre- and the second was post-. NMA.H last traded in early 2003, and closed at 4 cents/share back then.


In addition to the above items, there were also SEDAR-filed financial statements announced on Wednesday:

• The Silver Recycling Company Inc. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.

[Note: There were two other NEX companies that filed reports through SEDAR on Wednesday, but due to time constraints their summarization on this blog will be postponed until Thursday's report.]

To read about the highlighted NEX stocks for Wednesday, you can go here.

The Silver Recycling Company Inc. Files Audited Annual Report With SEDAR

The Silver Recycling Company Inc. [NEX: TSR.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Cash decreased from $226,599 as of the end of FY 2006, or June 30/06, to $31,881 as of the end of FY '07. Current assets decreased from $226,599 to $49,231 in the same time period, while current liabilities increased from $93,201 to $208,782. As a result, working capital shrunk from a $133,398 surplus to a $159,551 deficit from FY '06 to FY '07. Book value also went from positive to negative - specifically, from $65,901, or 1.47 cents/share, to -$199,835, or -2.12 cents/share. The cash drain would have been more severe had the company not secured $221,191 of proceeds for the issuance of 1,991,666 shares upon the exercise of warrants from a private placement completed on April 19th, 2006.

Silver Recycling lost $504,334 before other items in FY '07. Since it was an active company in fiscal '06, the results for the two time periods are not comparable: the only income earned by the company in the former period was $21 in interest and other income. There was also a $2,500 loss due to the forgiveness of debt, so the net loss for FY '07 was $511,823 or 5.43 cents/share. According to note 9 of the financials, the company has $5,716,000 worth of non-capital tax-loss carry-forwards. $126,000 of them expire in 2008, and $4,233,000 of them expire in 2009.

The accompanying M D & A [PDF file] opens with a recount of a takeover-in-progress of an unnamed U.S.-based silver scrap company. A non-binding letter of intent was entered into on June 11 of this year, which will expire on November 15th due to a negotiated extension of its life. Later, the M D & A says, "Management is in discussion with two to three other potential acquisition targets" and that an increase in professional fees paid out are the result of due diligence associated with the letter of intent. Also from it: "The success of the Company is dependant upon the continuing support of its current creditors and its ability to continue to raise financing to fund operations and ultimately upon its ability to achieve profitable operations." TSR.H last traded on Tuesday, and closed at 37 cents/share on that day.

International LMM Ventures Corp. Files Interim, Unaudited Statement With SEDAR

International LMM Ventures Corp. [NEX: LMM.H] has filed interim, unaudited financial statements for the third quarter of fiscal year 2007, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash decreased from $2,515 as of the end of FY '06, or November 30/06, to $402. Current assets shrunk from $2,685 to $1,629: a $1,157 increase in GST receivables explains the differential. Current liabilities increased from $520,843 to $646,402 in the same time period. Consequently, the working capital deficit increased from $518,158 to $644,773. Book value decreased from -12.1 cents/share to -30.1 cents/share. (Had it not been for a 2-for-1 consolidation of shares as of July 19th, 2007, the latter figure would have been -15.0 cents/share.)

Expenses went up from $36,338, or 0.740 cents/share, in 3Q '06 to $55,525 , or 2.59 cents/share, in 3Q'07. Increases of $167 in filing fees, $4,700 in interest and bank charges, $13,699 in professional fees, and $775 in transfer agent expenses all contributed to the increase. Management fees and rent remained constant; office expense decreased by $154. Since there were no other items, the net loss for each quarter equalled the corresponding expenses; in per-share terms, the loss was 0.740 cents in 3Q '06 and 2.59 cents in 3Q '07. The cash flow statement reveals that the cash used in operations was replenished by loans. Note 4 discloses that the loan-payable outstanding is from a shareholder, is payable on demand, and bears interest at a 12% annual rate. As of the end of 3Q '07, $304,360 from this source is due, up from $250,677 as of the end of FY '06.

In relation to the loans, the accompaying M D & A [PDF file] states that "[t]he Company continues to rely on advances from related parties to continue operations and will continue operations to do so until adequate equity or debt financing is available to the Company." It also says that LMM is is no current line of business, but is looking for one. LMM.H last traded on Monday, on which it closed at 50 cents/share.

Radiant Resources Inc. Files Interim, Unaudited Statement With SEDAR

Radiant Resources Inc. [NEX: RRS.H] has filed interim, unaudited financial statements for the first quarter of FY '08, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash as of the end of 1Q FY '08 was $352,141, down slightly from $356,749 as of the end of FY '07 on May 31st. Current assets also decreased slightly, from $357,312 as of the end of FY '07 to $353,406. Current liabilities increased from $13,033 to $20,885 due to a $7,411 increase in accounts payable & accrued liabilities and a $441 increase in the amounts due to related parties. As a result, working capital decreased from $344,279 to $332,521. Book value decreased from $344,279, or 8.50 cents/share, to $332,521, or 8.02 cents/share.

Expenses in 1Q '08 rose to $14,524 from $4,242 in 1Q '07. Had there not been a $10,070 in audit and accounting expenses, expenses would have been about the same in the two periods. Investment income decreased slightly, from $3,018 in 1Q '07 to $2,766 in 1Q '08. Consequently, the net loss increased from $1,224, or 0.0302 cents/share, to $11,758, or 0.283 cents/share. The decrease in cash was due to $5,049 used in operating activities, which was partially mitigated by the receipt of $441 in funds due to a related party.

The accompanying M D & A [PDF file] discloses that a reverse takeover of/by Alliance Pacific Resources Ltd. is in the works. Alliance Pacific is a private Ontario company that, through a joint venture, owns the right to explore and obtain exploration licenses "located in the western Altay Shan Mountain range of Xinjiang Province, adjacent to the Kazakhstan border innorthwestern China and south of Mongolia." The joint venture, of which Alliance Pacific owns 51%, already holds twelve exploration permits in that area. All that's left to complete the reverse takeover is the seeking of Radiant shareholder approval and finalization of a filing statement for the TSX Venture. The M D & A also notes that "[t]he company has sufficient liquidity to meet its current obligations" but may need additional financing for exploration activities if the reverse takeover goes through. Radiant is currently halted: it last closed on December 5, 2005, at 49.5 cents/share.

Themac Resources Group Ltd. Files Audited Annual Report With SEDAR

Themac Resources Group Ltd. [NEX: MAC.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Cash increased from $30,723 as of the end of FY '06 to $91,201 as of the end of FY '07. Current assets increased from $36,960 to $96,603, and current liabilities increased from $57,503 to $72,232. Consequently, the working capital deficiency of $20,543 to a surplus of $24,371. Book value also went from negative to positive during the same time period - specifically, from -20,543, or -0.538 cents/share in FY '06 to +24,371, or +0.496 cents/share in FY '07. The cash and book value both increased, due to $99,000 proceeds from 550,000 shares issued in a private placement at a deemed price of 18 cents/share and $66,666 received on exercise of 333,333 warrants at an exercise price of 20 cents/share.

Expenses for FY '07 shrunk to $156,713 from $224,714 in FY '06. Had there not been $68,970 in stock compensation, though, expenses would have increased slightly. Had loss on settlement of debt not shrunk by $28,837 to $8,462, expenses for FY '07 would have been significantly more than expenses for FY '06. Since there were no other items, expenses equalled the net loss for the year: 5.89 cents/share in FY '06 and 3.19 cents/share in FY '07. Note 4(b) indicates that the company issues shares in exchange for amounts owing on a recurrent basis.

The accompanying M D & A [PDF file] discloses that Themac has no properties. MAC.H last closed on October 19th at 23 cents/share.

Focus Ventures Ltd. Files Interim, Unaudited Statement With SEDAR

Focus Ventures Ltd. [NEX: FCV.H] has filed interim, unaudited financial statements for the third quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], the cash shrunk from $105,015 as of the end of FY '06 to $51,187 as of the end of 3Q '07. Current assets shrunk from $110,092 to $57,105 during the same time period. Current liabilities shrunk slightly from $110,759 to $100,126, due to a $8,892 shrinkage in accounts payable & accrued liabilities and a $1,741 drop in amounts due to related parties. Book value shrunk for an almost negligable -$667 to -$43,021 or -0.630 cents/share.

Expenses for 3Q '07 shrunk to $13,533 from 3Q '06's $15,493. All of the expense items shrunk from 3Q '06 to 3Q '07 with the exception of regulatory and stock exchange fees which went up by $543 to $1,893. The other items comprise interest income, which shrunk from $1,131 to $623 from 3Q '06 to 3Q '07. The quarterly net loss shrank from $14,362, or 0.216 cents/share, to $12,910, or 0.189 cents/share. The shrinkage in cash was attributable to its use in operating activites, except for $2,732 in receipts from related parties and $84 in payments to related parties in 3Q '07. The same thing applies to 3Q '06, except that there was no cash gotten or used as a result of financing activities in the earlier quarter. Note 4 specifies that unpaid managment fees in the amount of $52,500 (net, cumulative) have been recorded as accrued liabilities, as compared with $30,000 (also net cumulative) at the end of 3Q '06.

The accompanying M D & A [PDF file] states that "Management expects that the Company will have sufficient working capital to meet its corporate commitments over the next 12 months, and to fund the search for a new mineral property interest for the Company. Actual funding requirements may vary from those planned due to a number of factors, including the progress of property acquisition and exploration activity. Management believes it will be able to raise equity capital as required in the long term, but recognizes the uncertainty attached thereto." In other words, Focus has enough cash and reserves to keep it afloat without the need for outside financing over the next 12 months. FCV.H last closed at 35.5 cents/share on October 16th; ever since then, only odd lots have been traded. One of 100 shares went on Tuesday, at 33.5 cents/share.

Agrotech Greenhouses Inc. Files Interim, Unaudited Statement With SEDAR

Agrotech Greenhouses Inc. [NEX: AGV.H] has filed interim, unaudited financial statements for the third quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], Agrotech had $7,217 worth of cash as of August 31st, 2007, up from $5,187 as of November 30th, 2006. Current assets, though, shrunk from $53,187 to $14,965 in the same time period. Current liabilities increased, from $3,916,853 to $4,117,096, due to a $160,253 increase in accounts payable and accrued liabilities and a $40,000 increase in the amount of a demand loan. As a result, the working capital deficiency widened from $3,863,666 to $4,102,131. Book value also shrunk, from -21.9 cents/share to -26.3 cents/share.

For the third quarter of this fiscal year, Agrotech had no revenue and a loss before unusual or extraordinary items of $86,904 as compared with a $111,960 loss in the third quarter of FY '06. (These figures are not quite comparable because Agrotech had revenue coming in during 3Q '06.) A $57,000 write-off of a receivable increased the quarterly loss to $143,904, or 2.10 cents/share, as compared with 3Q '06's loss of 1.63 cents/share. There was also revenue - specifically, rental revenue - during the first quarter of FY '07 but no others, for a total of $36,000 for the first nine months of that year. Revenue in the first three quarters of FY '06 was $108,000. The loss before other items widened from $195,783 to $251,293, and the loss for the first three quarters of FY '07 widened further to $305,429 or 4.46 cents/share from 2.86 cents/share in the same period of FY '06. The statement of cash flows shows that the cash used in operating activities was $37,969, which was more than covered by an increase of $40,000 in the demand loan.

The accompanying M D & A [PDF file] explains that the write-off came from rental receipts foregone due to the renter going bankrupt. It also explains that a large part of the expenses was interest expense, in the amount of $287,293 for the first three quarters of FY '07 as compared with $195,783 in the first three quarters of FY '06. For the third quarters of FY '07 and '06 specifically, interest expense was unchanged at $51,978 for both periods. All loans are currently in default. $200,000 in loans are due to a related company controlled by a director of Agrotech. AGV.H last closed on Sept. 12th, at 2 cents/share.

News Releases From NEX Companies For October 29th

There were no releases from any NEX company that were picked up by Marketwire on Monday. There were, however, two bulletins from NEX companies in Monday's TSX Venture Daily Bulletins, both of which pertained to the same company: Trilogy Metals Inc. [NEX: TRI.H]. Both of them were short and succinct: the first announced a trading halt in TRI.H as of 6:06 AM PT, or 9:06 AM ET, and the second announced a resumption in its trading as of 9 AM PT or 12 noon ET. Since the market opens as of 9:30 AM ET, or 6:30 AM PT, these two imply that there was no trading allowed in Trilogy stock on Monday until noon ET. (As explained in the "Highlighted NEX Stocks for October 29th," it took off like a rocket once trading resumed. Despite the pending-news nature of the halt, none was forthcoming on Monday. The only related news item came down the pipe last Friday, announcing the takeover of all the shares of NWest Energy and the changes in Trilogy which this takeover will entail.) Canjex Publishing has webbed copies of both bulletins, one for the halt and one for the resumption.

Three news releases were sent out exclusively through Canjex on Monday. The first came from Lominko Resources Ltd. [NEX: LMR.H]: it announces Lominko's intention to move to Tier 2 of the Venture Exchange through it optioning a new set of claims called the Nak property. They abut Lominko's presently-held claims of the Joss'alun property, which Lomiko optioned from Copper Ridge Explorations Inc. last year. The Nak claims have been optioned from Imperial Metals Corp. Both of these properties are being combined into a single property, referred to as the Big Nak property. These two options, which the news release explains the terms of, have been deemed by management to be sufficient for Lomiko to apply for graduation to the Tier 2. To meet the expenditures required by the terms of the options over the next year, Lomiko has completed a private placement of one million common shares and another million flow-through shares for total gross proceeds of $500,000. The company has deemed the proceeds sufficient to enable "the company to have adequate funds required to advance." LMR.H traded only in odd lot sizes on Monday; its last close, made on October 19th, put the stock at 37 cents/share.

The second release came from Warwick Comminucations Inc. [NEX: WWK.H]; it announces that Warwick has been listed on the Canadian Trading and Quotations Systems Inc. as of October 23rd. Warwick has also applied for de-listing from the NEX Board. The rest of the news release states that, as of the same day, AAA Power Inc. has bought about 81% of the common shares of Warwick. It also announces the new top-management team at Warwick: Jeremy White, appointed as president, CEO and CFO as well as a director; James (Jim) Williamson, appointed as executive vice-president; and, Nicholas (Nick) Pitt, appointed vice-president of operations. Warwick remains suspended on the NEX.

The third and final repease through Canjex is from Pacific Wildcat Resources Corp. [NEX: PAW.H]: it contains a clarification to an earlier release, issued October 12th, that announces Pacific Wildcat's takeover of a company that owns certain tantulum claims in Mozambique. The clarification pertains to the past employment history of Rakesh Garach, one of the new directors of Pacific Wildcat. It says that he "was the former chief operating officer of Deutsche Bank in South Africa. Prior to that appointment, he was a partner with Ernst and Young in South Africa." The original report said that was still the COO of Deutsche Bank. PAW.H is still halted; its last close, which put PAW.H's price at 21 cents/share, was on Septenber the 27th.

In addition to the above items, there were also SEDAR-filed financial statements announced on Monday:

• Golden Hat Resources Inc. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.
• GTO Resources Inc. has also filed its interim unaudited quarterlies with accompanying M D & A
• Cierra Pacific Ventures Inc. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.
• Gold Star Resources Corp. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.

[Note: There were three other NEX companies that filed reports through SEDAR on Monday, but due to time constraints their summarization on this blog will be postponed for Tuesday's report. Those three companies were Agrotech Greenhouses Inc. (interim unaudited quarterly report), Focus Ventures Ltd. (interim unaudited quarterly) and Themac Resources Group Ltd. (annual audited report.)]

To read about the highlighted NEX stocks for Monday, you can go here.

Gold Star Resources Corp. Files Audited Annual Report With SEDAR

Gold Star Resources Corp. [NEX: GXX.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Cash decreased from $3,028 as of June 30/06, to $426 as of June 30/07. GST receivables, though, increased by $5,037 in the same time period to $7,173. As a result, current assets increased from $5,164 as of the end of FY '06 to $7,599 as of the end of FY '07. Current liabilities decreased from $147,769 to $58,669, due to a $29,792 decrease in accounts payable & accrued liabilities and a $59,308 decrease in amounts due to related parties. Consequently, the working capital deficiency shrunk from $142,605 as of the end of FY '06 to $51,070 as of the end of FY '07. Book value increased from -2.72 cents/share to -0.859 cents/share. The decreases in current liabilities and increase in book value were caused by $378,250 worth of proceeds from the private-placement issuance of 2,225,000 common shares in FY '07, as explained in Note 4 (b). Note 4(c) discloses that there are currently 2,225,000 warrants outstanding from that placement, with exercise price of 23 cents per warrant and expiry date of March 6, 2008.

Net loss before other items for FY '07 increased to $279,904 from $204,221 in FY '06. Most of the expenses categories increased in FY '07: accounting and legal expense increased $10,021 to $44,127; interest and bank charges increased by $69 to $484; consulting fees increased to $41,500 by the same amount; general exploration expense increased from nil to $39,789; and, office, rent and telephone expenses increased by $12,361 to $40,466. Investor communication, trade shows and web site expenses decreased by $129 to $4,473; transfer agent and regulatory fees decreased by $1,632 to $10,174; and, write-off of mineral property expenditures decreased by $26,296 to $68,891. Net loss increased from 3.90 cents/share to 4.82 cents/share. As explained in Note 3, the addition of the mineral property expenditues in FYs '07 and '06 was due to the abandonment of two options on two different properties, one during each fiscal year. As of June 30th of this year, Gold Star has $1,103,044 of non-capital tax losses, $74,186 of which expire in 2008, and unclaimed resource deductions in the amount of $1,076,171.

The accompanying M D & A [PDF file] says that three properties have been abandoned by Gold Star since 2004, and that the company is "desirous of finding a mineral project and has been actively looking at several properties... but there are certain conditions to meet. Any project the Company wishes to acquire must have a 43-101 report to comply with regulatory requirements. In addition, the Company needs to engage personnel with mineral exploration experience to assess, monitor and manage the projects." It also discloses that the consulting fees and exploration expenses were paid to find a property that meets these conditions, and that the company had had no revenue since, most recently, as of the beginning of FY 2006. GXX.H closed Monday at 19 cents/share, up 1 cent/share since Friday's close.

Cierra Pacific Ventures Inc. Files Audited Annual Report With SEDAR

Cierra Pacific Ventures Inc. [NEX: CIZ.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Cash held by Cierra Pacific dropped from $1,673 as of June 30th, 2006 to $55 as of June 30th, 2007. This loss was mitigated somewhat by an increase in a deposit from $1,250 to $1,325 in that same period. Current assets dropped from $3,249 to $1,548. Current liabilities, on the other hand, increased from $363,047 to $524,962. The largest dollar increase was in the due-to-related-parties category, which went up by $110,316 to $320,044 as of the end of FY '07. Consequently, the working capital deficit increased from $360,281 to $523,414. Book value decreased from -5.04 cents/share as of the end of FY '06 to -7.33 cents/share as of the end of FY '07. There were no investment activities listed in the statement of cash flows for either fiscal year; the only financing activities were the borrowing of $11,035 in FY '07 as compared with the borrowing of $28,646 in FY '06. Cash used in operating activities decreased from $27,405 in FY '06 to $12,653 in FY '07; both amounts were only a small fraction of the net losses for the year before any extraordinary items ($126,828 in FY '06 and $163,616 in FY '07.)

As just indicated, expenses increased by $36,788 from FY '06 to FY '07, as caused by: a $4,148 increase in interest and bank charges; a $742 increase in shareholder-information expenses; a $11,585 increase in office and administrative expenses; a $20,400 increase in professional fees; and, a $1,060 increase in transfer agent fees. Filing fees decreased by $1,147 in the same time period; management fees (of $30,000) and rent (of $24,000) stayed constant. Note 4 discloses that management, office & administration, and professional fees were all accrued and are all due to related parties. According to Note 6, Cierra currently has $721,653 in non-capital tax losses, of which $65,253 expire in 2008, and about $5,191,023 in capital losses. Neither of these items are vendible.

The accompanying M D & A [PDF file] discloses, as does note 4 of the financials, that $145,565 has been borrowed from "a company related to a director of the Company." The amount owing was $134,530 in FY '06. "This loan [bears] interest at 12% per annum, unsecured, with no fixed terms of repayment. Accrued interest to date is $46,444." It also explains that bank charges are negligible compared to interest expense in the interest-and-bank-charges account, and further discloses that the part of the net loss incurred in the fourth quarter of FY '07 was $64,045. CIZ.H closed Monday at 22 cents/share, up 2 cents/share from the previous close set on September 19th.

GTO Resources Inc. Files Interim, Unaudited Statement With SEDAR

GTO Resources Inc. [NEX: GTR.H] has filed interim, unaudited financial statements for the second quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash and cash equivalents increased from $268,368 as of the end of FY '06 (ended Feb. 28th) to $965,644 as of the end of 2Q '07. Working capital increased from $465,842 as of the former date (as fortified by a $200,000 term deposit that was liquidated later) to $962,548. The only item in current liabilities, accounts payable, fell from $12,177 to $8,654. The increase in cash, as well as an increase in the book value from 7.70 cents/share as of the former date to 12.0 cents/share as of the latter date, is due to $514,150 worth of proceeds from the exerise of warrants in 1Q '07. Other than the purchase and redemption of the term deposit, there were no investment activities since the first quarter of FY '06. (Unusually, the proceeds from the redemption of the term deposit was $20,000 less than the money invested in it, according to the statement of cash flows.)

Expenses for 2Q '07 dropped slightly from expenses in 2Q '06. This drop was due to a $1,268 decrease in shareholder information expenses, to $78 for 2Q '07. Professional fees increased by $1,056 to $2,055, and office & miscellaneous expenses increased slightly. Transfer agent, listing and filing fees dropped by $303 to $6,148

The only income GTO had in the quarter was interest income, which increased from $2,032 in 2Q '06 to $9,614 in 2Q '07. As a result, the net loss shrunk from $14,506, or 0.289 cents/share, to $6,443, or 0.0802 cents/share. Net loss for the first six months of 2007 from the first six months of FY 2006 shrunk by $10,406, to $17,444 or 0.219 cents/share. The drop in cash used in operating activities for the second quarter was slighter, from $14,380 in 2Q '06 to $10,351 in 2Q '07. In note 5, Related Party Transactions, part (a) discloses: "Pursuant to an agreement dated December 31, 2004 the Company pays Quest Management Corp. ('Quest'), a company related by virtue of an officer and director in common, a fee of $2,500 per month plus expenses for office space, supplies, and accounting services. The Company paid $15,000 for the six months ending August 31, 2007." The other disclosure is of $2,669 due to related parties, which was put in accounts payable and accrued liabilities.

The accompanying M D & A [PDF file] notes that "[t]he Company wrote off all mineral property expenditures during the fiscal year ending February 28, 2004 and has not conducted any mineral property exploration work since the fiscal year ended February 28, 2000." Later noted is, "[t]he Company is a 15.99% participant in an early stage exploration joint venture" which is unidentified by name. GTR.H's last close was on October 17th, at 65 cents/share.

Golden Hat Resources Inc. Files Audited Annual Report With SEDAR

Golden Hat Resources Inc. [NEX: GHA.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Golden Hat's cash increased from $16,592 as of the end of FY '06 (also ended June 30th) to $55,610 as of the end of FY '07. Current assets increased from $22,738 to $61,757 in the same time period. Current liabilities shrunk from $154,997 to $139,723, narrowing the working-capital deficit from $132,259 to $77,966. Book value increased from -0.0831 cents/share to +0.204 cents/share due to the issuance of common shares.

Net loss for FY '07 increased from $106,874 to $154,040 despite a shrinking in expenses from $175,436 to $124,463. The difference is explained in the other-items category: FY '06 saw a reduction of the net loss by $68,562 due to the write-off of accounts payable, because the statutory period for their collection has passed and (as note 10 further explains) "management have determined that they will not be paid." There were no analagous reductions in FY '07; instead, the loss increased due to a $29,577 write-off of the value of a resource property - the Nova Scotia Gold property according to Note 9. As far as the expense items were concerned, all items shrunk except for management fees of $30,000, which remained constant, and Rent & Utilities, which increased slightly. Net loss, though, increased from 0.448 cents/share in FY '06 to 0.461 cents/share in FY '07. A reported increase of 9,576,869 in the weighted average of common shares outstanding explains why the reported per-share loss increased far less than the dollar loss from FY '06 to FY '07.

The accompanying M D & A [PDF file] contains little other than a brief description of the issues facing Golden Hat, as well as a brief description of the Telegraph Creek project which it currently owns plus a summary table of its results for FYs '06 and '07. GHA.H closed at 8 cents/share on Monday, up 0.5 cents/share from Friday's close.

News Releases From NEX Companies For October 26th

There was one release from a NEX company that was picked up by Marketwire on Friday: it came from Moneta Resources Inc. Moneta announced the signing of a Letter of Intent to acquire an option for an 80% interest in the Geita Gold Property in Tanzania, currently owned by Geo Can Resources Ltd. In order to exercise that option, called the First Option in the news release, "Moneta must make cash payments of US$4,000,000 and issue 6,000,000 shares over a period of four years, and incur an aggregate of US$5,000,000 in exploration expenditures on the Geita Gold Property over a period of five years, including a cash payment of $500,000 (of which US$100,000 has been paid), the issuance of 1,000,000 shares and US$500,000 in expenditures during the first year (of which $50,000 has been advanced to date)." The other two options are for 10% each of the remaining 20% interest in the property. Geo-Can will retain a 2% net smelter royalty, which Moneta can buy for 2.5 million US dollars per percent, payable over four years. In addition to other details, the release also conains a capsule description of the mineralization of the property and explains that the $50,000 sent over so far will be used for exploration expenses. Moneta was halted before this release was disseminated, and resumed trading after it was sent out: the halt lasted from the start of trading to 10:30 AM PT, or 1:30 PM ET. MOT.H didn't trade at all on Friday; it last traded on Wednesday, closing at 16 cents/share on that day.

The notices of Moneta's halt and resumption were two of the four bulletins from NEX companies that were at the bottom of Friday's TSX Venture Daily Bulletins. The others were from an already-established NEX company and a new listing. The former bulletin announces the aceptance for filing of documentation for an already-announced $90,000 private placement of shares in Tri-River Ventures [NEX: TVR.H]. This placement consists of 400,000 units, at a price of 22.5 cents/unit. Each unit contains one common share and a purchase warrant, with exercise price of 45 cents/share and life of 1 year. There were nine placees, two of which were insiders. One of them subscribed for 50,000 shares and the other for 40,000 shares. Tri-River last traded on Wednesday, and closed at 30 cents/share on that day.

The other bulletin is from new NEX company Waveform.com Inc. It announces the move and the change of its symbol to WAF.H, as well as a resumption in trading of its stock as of Monday, October 29th. Canjex Publishing has a webbed copy of the Tri-River bulletin here, and has split the Waveform bulletin into two: the announcement of the move to the NEX and the notice of trading resumption. Wavefire.com shares last traded on October 22nd, and closed at 20 cents/share on that day.

One news release was sent out exclusively through Canjex on Friday, although it contains two items. It's from Trilogy Metals Inc. [NEX: TRI.H], and it announces Trilogy entering into an agreement to purchase all of the shares of NWest Energy Inc. in a one-for-one swap of Trilogy shares for NWest shares. This will necessitate the issuance of 49,531,250 shares of TRI.H, which will be subject to escrow according to regulations. NWest holds four oil-and-gas exploration licenses, for 659,880 hectares' or 1,630,599 acres' worth of offshore area for all four. They're located off eastern Newfoundland. It is expected that this transaction will qualify Trilogy to move to Tier 2 of the Venture Exchange, and Trilogy itself expects to change its name. The new additions from NWest to top management and the board are also identified, with capsule biographies for each: Francois Gauthier, the new president and CEO (he's also a new director); Wade Dawe, a new director; Patrick Laracy, new director and corporate secretary; and, Carl Sheppard, new director and CFO. The second item announces that NWest is trying to raise up to $20 million for a seismic exploration of 11 promising spots in the properties, on the basis of an encouraging report on them by Sproule Associates. (In addition to that technical review, Sproule has also done the valuation of them.) That part of the release notes that "[n]o wells have been drilled on the properties covered by the exploration licences and there are no known reserves." Trilogy last traded on Wednesday, and closed at 42 cents/share on that day.

In addition to the above items, there were also SEDAR-filed financial statements announced on Friday:

• Benem Ventures Inc. has filed its annual report for FY '07 with accompanying M D & A.
• IDG Holdings Inc. has also filed its annual report for FY '07 accompanying M D & A, as well as interim unaudited financial statements for the first quarter of FY '08.

To read about the highlighted NEX stocks for Friday, you can go here.

IDG Holdings Inc. Files Audited Annual Report And Interim Unaudited Quarterly Report With SEDAR

IDG Holdings Inc. [NEX: IDH.H] has filed its annual report for fiscal year 2007, ended June 30th 2007 [PDF file], which has also been split into the financial statements for that fiscal year [PDF file] and the accompanying Management Discussion and Analysis [PDF file]. The financials received an unqualified opinion from the auditors.

Cash shrunk quite a bit from FY '06 to FY '07 - specifically, from $355,503 to $20,399. Short-term investments, though, ballooned from $140,070 in FY '06 to $671,879 in FY '07; additionally, a loan receivable of $109,000 was added to current assets. Despite those two increases, total current assets shrunk from $1,119,057 to $826,305 because of the disappearance of accounts receivable and inventories from the balance sheet. Because current liabilities decreased from $155,865 to $21,441, working capital decreased only $205,058 from FY '06's figure of $1,009,922 to FY '07's $804,864. Book value decreased from 10.4 cents/share to 7.88 cents/share.

Since IDG was actively in business during FY 2006, it reported income and expenses in the regular way; that format was used for FY '07's results even though there was no business activity during that time. For FY '07, the only income received was $23,932 in interest income. Operating expenses for the year came to $96,995, resulting in a net loss before interest, taxes, depreciation and amortization of $73,063.

With ITDA added, the net loss shrunk to $39,814. This occurred because of a tax recovery in the amount of $25,027 and the accreted interest received "on loan advanced on sale of Integral Designs" of $11,000. $97,155 worth of the shrinkage of the book value resulted from a dividend paid out.

The cash flow statement shows a cash loss of $48,036 for FY '07, and total cash used in operating activities of $86,088. Investing activities, as is usual for this category in general, used up $63,234 in cash. This use was due to significantly more than the $408,575 cash component of the sale price of Integral Designs, plus the $60,000 in loan payments received, being plowed into short-term investments, as noted above. The financing part of the cash flow statement showed a decrease of $98,240 in cash, almost all of which went to the dividend payment. The other $1,085 was spent by IDG on its own shares. Also noted in the cash-flow statement is the non-cash component of the sale proceeds of Integrated Designs, which was $430,060. $270,000 of it was in the form of a loan advanced; $160,060 was in the form of shares of IDG handed over to the company and cancelled, as explained in Note 13. Note 5, "Related Party Transactions," notes the Integrated Designs was sold to a (now-former) director of IDG Holdings. The accompanying M D & A explains that the price was verifiably fair: "The transaction was approved by all of the non-related directors, and by shareholders, and accepted by the TSX Venture Exchange as the fair market value." It also notes that $20,000 of the expenses were "in connection with the preparation for, negotiation and closing of the sale of its former business."

The interim and unaudited report for the first quarter of FY '08 has the M D & A in front of the financial statements [PDF file] with a separate copy of the M D & A filed as well [PDF file]. According to the financial statements, cash increased by $16,805 in the first quarter, but loans receivable decreased by $30,000. Increases in two other categories helped shrink the decline in current assets to $7,104. A shrinkage of current liabilities in the amount of $7,941 resulted in a slight increase in working capital, to $886,701.

IDG has managed to be one of the few NEX companies that has reported net income, as opposed to a net loss, in a quarter. Investment income of $7,404 more than covered the quarterly expenses of $6,567, leaving net income in the amount of $837. As a result, book value increased slightly. The accompanying M D & A states, under Related-Party Transactions, that "[c]osts for accounting and administrative services reported in the financial statements comprise amounts paid to director Glynn Jones and his wife for statutory record-keeping and financial reporting for the company at less cost than available elsewhere." IDH.H last traded on Wednesday, and closed at 24.5 cents/share, its 52-week high.

Benem Ventures Inc. Files Audited Statement With SEDAR

Benem Ventures Inc. has filed its audited annual report with SEDAR; the auditors gave the financial statements an unqualified opinion. According to those statements [PDF file], cash and cash equivalents increased from $2,201 as of the end of fiscal year 2006, which ended June 30th, to $17,351 as of the end of fiscal year 2007, also ended June 30th. Short-term investments, on the other hand, shrunk from $325,000 as of June 30/07 to $150,000. Prepaid expenses decreased from $5,000 to $1,250 in the same time period, while accounts receivable hardly changed. As a result, current assets declined from $339,292 to $175,677. Because current liabilities increased from $12,836 to $15,015, working capital shrunk from $326,456 as of June 30/07 to $160,662 as of one year later. Book value shrunk from $326,456, or 8.48 cents/share, to $160,662, or 3.74 cents/share, in that same time period.

The statement of expenses shows a widening of Benem's annual loss from $124,692, or 3.24 cents/share, to $180,794, or 4.20 cents/share, from FY '06 to FY'07. $45,000 of the loss was accounted for by sponsorship fees in FY '07, which were nil in FY '06. Absent that item, the loss only increased slightly. Office expenses (comprising rent, administration and "office") went from $39,083 to $64,903; the two items comprising it, as well as consulting fees, were the only ones to increase significantly from FY '06 to FY '07. The two expense items that decreased significantly were travel and promotion expenses, which shrunk from $23,581 in FY '06 to $16,282 in FY '07, and filing & transfer agent fees, which shrunk from $18,652 to $8,321. The statement of cash flows pinpoints the decrease in short-term investments as the main source of cash for the year, although $15,000 worth of proceeds in share subscriptions were received during FY '07. Note 3(c) explains these receipts as resulting from the exercise of stock options, of which there are none left as shown by note 3(d). The only source of income, interest income, shrunk from $10,473 to $8,598 even though interest received (as cash) increased from $7,299 to $12,312. The only significant related-party transactions listed in note 4 of the financials is $35,746 in legal expenses, as compared with $38,427 in FY '06, and $5,300 in consulting fees to a director as compared with nil in FY '06. "Included in accounts payable is $6,500 (2006 - $4,000) for legal fees due to a firm that is associated with a former director of the Company," Andrew Walker. The last two notes explain that the company is currently between Qualifying Transactions.

The M D & A [PDF file] explains that the $45,000 sponsorship fee was paid to Integral Wealth Securities Limited because the TSX Venture refused to grant an exemption to the sponsorship requirement for the previous Qualifying Transaction, which fell through at the end of August of this year. Benem is currently trying to acquire some mineral claims owned by Velocity Resources Canada Ltd. in exchange for $75,000 and 12 million Benem shares, plus a commitment to raise $2 million in a subsequent private placement. Benem shares have been halted ever since the now-ended earlier Qualifying Transaction was about to be announced. BNM.H last traded on August 14th, 2006; it closed at 42 cents/share on that day.