XTSX:BOV.H Bi-Optic Ventures Inc Quarterly Report 10-Q Filing - 8/31/2012

Effective Date 8/31/2012

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


FORM 10-Q


[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE

SECURITIES ACT OF 1934


For the quarterly period ended August 31, 2012


[ ]         TRANSITION REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES ACT OF 1934

For the transition period from ________ to ________


Commission file number: 000-49685


Bi-Optic Ventures Inc.

(Exact name of registrant as specified in its charter)



British Columbia, Canada

N/A

(Jurisdiction of Incorporation/Organization)

(IRS Tax ID No.)


1030 West Georgia Street #1518, Vancouver, British Columbia, Canada  V6E 2Y3

(Address of principal executive offices)


Issuer’s Telephone Number: 604-689-2646


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 XXX   No ____


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ___    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:


Large accelerated filer [ ]                     Accelerated filer        [ ]

Non-accelerated filer   [ ]                    Smaller reporting company [X]


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):  Yes XXX   No ___


Indicate the number of shares outstanding of each of the issuer's classes of common stock as of 10/12/2012: 20,512,235 Common Shares w/o par value








PART I – FINANCIAL INFORMATION


1.  Financial Statements

















BI-OPTIC VENTURES INC.

Financial Statements

August 31, 2012

(Expressed in Canadian dollars)

(unaudited)























2






BI-OPTIC VENTURES INC.

(A Development Stage Company)

Balance Sheets

(expressed in Canadian dollars)

 

 

 

August 31,

February 29,

 

2012

$

2012

$

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash

92

499

Amounts receivable

5,875

4,386

Prepaid expenses

466

466

 

 

 

Total Current Assets

6,433

5,351

 

 

 

Property and equipment (Note 3)

2,950

3,447

 

 

 

Total Assets

9,383

8,798

 

 

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Accounts payable and accrued liabilities

88,676

52,430

Due to related parties (Note 4)

173,650

124,770

 

 

 

Total Liabilities

262,326

177,200

 

 

 

Nature of Operations and Continuance of Business (Note 1)

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

Common stock: unlimited common shares authorized without par value; 20,512,235 shares issued and outstanding

4,808,095

4,808,095

 

 

 

Due from related party (Note 4)

(6,000)

 

 

 

Deficit accumulated during the development stage

(5,061,038)

(4,970,497)

 

 

 

Total Stockholders’ Deficit

(252,943)

(168,402)

 

 

 

Total Liabilities and Stockholders’ Deficit

9,383

8,798

 

 

 










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




3





 


BI-OPTIC VENTURES INC.

(A Development Stage Company)

Statements of Operations

(expressed in Canadian dollars)

(unaudited)

 

 

 

 

 

 



Three Months Ended

August 31,



Three Months Ended

August 31,



Six Months Ended

August 31,



Six Months Ended

August 31,

Accumulated from May 31, 1984 (Date of Inception) to August 31,

 

2012

2011

2012

2011

2012

 

$

$

$

$

$

 

 

 

 

 

 

Revenue

 –

 –

 –

 –

 –

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs written-off

347,815

Amortization

249

811

497

1,316

26,453

Bad debts

20,658

Consulting and management fees (Note 4(a))

11,156

9,751

23,577

21,576

870,462

Investor and public relations

94,268

Office, rent and telephone (Note 4(b))

9,034

10,972

17,475

22,488

595,092

Professional fees (Note 4(c))

28,156

13,875

41,423

21,375

897,605

Transfer agent and regulatory fees

4,851

6,217

7,359

9,369

169,762

Travel and promotion

556

210

1,100

346,013

Write-down of property and equipment

2,066

 

 

 

 

 

 

Total Expenses

53,446

42,182

90,541

77,224

3,370,194

 

 

 

 

 

 

Loss from Operations

(53,446)

(42,182)

(90,541)

(77,224)

 (3,370,194)

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

Accounts payable written-off

49,341

Gain on debt derecognition

52,919

Interest and other income

17,118

Provision for advances receivable

(75,943)

 

 

 

 

 

 

Total Other Income (Expense)

43,435

 

 

 

 

 

 

Net Loss Before Discontinued Operations

(53,446)

(42,182)

(90,541)

(77,224)

 (3,326,759)

 

 

 

 

 

 

Loss from discontinued operations

 (1,734,279)

 

 

 

 

 

 

Net Loss for the Period

(53,446)

(42,182)

(90,541)

(77,224)

 (5,061,038)

 

 

 

 

 

 

Net Loss Per Share, Basic and Diluted

 

 





 

Weighted Average Shares Outstanding

20,512,235

20,512,235

20,512,235

20,512,235

 





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




4






BI-OPTIC VENTURES INC.

(A Development Stage Company)

Statements of Cash Flows

(expressed in Canadian dollars)

(unaudited)

 

 

 

 

Six Months Ended

August 31,

Six Months Ended

August 31,

Accumulated from May 31, 1984

(Date of Inception) to August 31,

 

2012

2011

2012

 

$

$

$

Operating Activities

 

 

 

Net loss for the period

(90,541)

(77,224)

(5,061,038)

 

 

 

 

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

Acquisition costs written-off

347,815

Amortization

497

1,316

28,055

Bad debts

20,658

Gain on debt derecognition

(52,919)

Provision for advances receivable

464,169

Write-down of property and equipment

2,066

Changes in operating assets and liabilities

 

 

 

Amounts receivable

(1,489)

5,766

(26,532)

Advances receivable

(554)

(65,447)

Prepaid expenses

(466)

Accounts payable and accrued liabilities

36,246

6,316

348,858

Due to related parties

47,040

39,200

133,280

Net Cash Used in Operating Activities

(8,247)

(25,180)

(3,861,501)

 

 

 

 

Investing Activities

 

 

 

Net cash used in discontinued operations

(362,241)

Acquisition of property and equipment

(33,070)

Net Cash Used in Investing Activities

(395,311)

 

 

 

 

Financing Activities

 

 

 

Proceeds from loans payable

120,409

Repayment of loans payable

(80,000)

Due to/from related parties

7,840

19,000

40,370

Proceeds from issuance of common shares/share subscriptions received

4,263,051

Share issuance costs

(76,547)

Net Cash Provided by Financing Activities

7,840

19,000

4,267,283

 

 

 

 

Effect of Exchange Rate Changes on Cash

(10,379)

 

 

 

 

Increase (Decrease) in Cash

(407)

(6,180)

92

Cash, Beginning of Period

499

7,414

Cash, End of Period

92

1,234

92

 

 

 

 

Non-cash Investing and Financing Activities

 

 

 

Shares issued to settle debt

247,791

Shares issued for finders’ fees

50,400

Shares issued to acquire mineral properties

275,000

 

 

 

 

Supplemental Disclosures

 

 

 

Interest paid

Income tax paid


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



5



BI-OPTIC VENTURES INC.

(A Development Stage Company)

Notes to the Financial Statements

August 31, 2012

(expressed in Canadian dollars)

(unaudited)



1.

Basis of Presentation

The accompanying financial statements of Bi-Optic Ventures Inc. (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 February 29, 2012. 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 its assets and discharge its liabilities in the normal course of business. The Company has never generated revenues since inception and is unlikely generate earnings in the immediate or foreseeable future. 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. As at August 31, 2012, the Company has a working capital deficit of $255,893 and has accumulated losses of $5,061,038 since inception. 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.

Significant Accounting Policies

(a)

Comprehensive Loss

ASC 220, “Comprehensive Income” establishes standards for the reporting and display of comprehensive loss and its components in the consolidated financial statements. As at August 31, 2012 and 2011, the Company has no items that represent comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

(b)

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.

Property and Equipment


 

Cost

$

 

Accumulated

Amortization

$

 

August 31, 2012

Net Carrying

Value

$

 

February 29, 2012

Net Carrying

Value

$

 

 

 

 

 

 

 

 

Computer equipment

9,238

 

6,656

 

2,582

 

3,038

Furniture and equipment

6,932

 

6,564

 

368

 

409

Leasehold improvements

6,157

 

6,157

 

 

 

 

 

 

 

 

 

 

 

22,327

 

19,377

 

2,950

 

3,447




6



BI-OPTIC VENTURES INC.

(A Development Stage Company)

Notes to the Financial Statements

August 31, 2012

(expressed in Canadian dollars)

(unaudited)



4.

Related Party Transactions

(a)

During the six months ended August 31, 2012, the Company incurred $15,000 (2011 - $15,000) in management fees to a company controlled by the President of the Company.

(b)

During the six months ended August 31, 2012, the Company incurred $15,000 (2011 - $15,000) in rent and administrative services to a company controlled by the President of the Company and a director.

(c)

During the six months ended August 31, 2012, the Company incurred $12,000 (2011 - $12,000) in professional fees to a company controlled by a director.

(d)

As at August 31, 2012, an amount of $10,090 (February 29, 2012 - $950) is owed to the spouse of the President of the Company which is non-interest bearing, unsecured, and due on demand.

(e)

As at August 31, 2012, an amount of $nil (February 29, 2012 - $6,000) is owed from the President of the Company which is non-interest bearing, unsecured, and due on demand.

(f)

As at August 31, 2012, an amount of $48,300 (February 29, 2012 - $33,400) is owed to companies controlled by the President of the Company which is non-interest bearing, unsecured, and due on demand.

(g)

As at August 31, 2012, an amount of $77,180 (February 29, 2012 - $65,780) is owed to companies controlled by the President and a director of the Company which is non-interest bearing, unsecured, and due on demand.

(h)

As at August 31, 2012, an amount of $38,080 (February 29, 2012 - $24,640) is owed to a company controlled by a director of the Company which is non-interest bearing, unsecured, and due on demand.









7






ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

         RESULTS OF OPERATIONS


This Quarterly Report on Form 10-Q contains forward-looking statements, principally in ITEM #2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”.  These statements may be identified by the use of words like “plan”, “expect”, “aim”, “believe”, “project”, “anticipate”, “intend”, “estimate”, “will”, “should”, “could” and similar expressions in connection with any discussion, expectation, or projection of future operating or financial performance, events or trends.  In particular, these include statements about the Company’s strategy for growth, property exploration, mineral prices, future performance or results of current or anticipated mineral production, interest rates, foreign exchange rates, and the outcome of contingencies, such as acquisitions and/or legal proceedings.


Forward-looking statements are based on certain assumptions and expectations of future events that are subject to risks and uncertainties.  Actual future results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors, including, among other things, the factors discussed in this Quarterly Report and factors described in documents that we may furnish from time to time to the Securities and Exchange Commission.  We undertake no obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.


Results of Operations

The Company has not had any sources of revenue to date and has financed its activities substantially through equity financing.  The Company has incurred net losses each year since inception and, as of 8/31/2012 had an accumulated deficit of ($5,061,038).


Operating Expenses for the Six Months Ended 8/31/2012 were $90,541 compared to $77,224 for the same period last year.  “Consulting/management fees” were modestly higher ($23,577 vs. $21,576); $15,000 vs. $15,000 paid/accrued to Myntek Management Services Inc.; and ($8,577 vs. $6,576) paid to third parties.  Professional fees were nearly double ($41,423 vs. $21,375): $12,000 vs. $12,000 paid/accrued to Wynson Management Services Ltd.; and ($29,423 vs. $9,375) paid to third parties, the increase was due to increased corporate activity.  “Office/Rent/Telephone/Administrative Services” ($17,475 vs. $22,488), including $15,000 vs. $15,000 paid/accrued to Pacific Paragon Capital Group; and “travel/promotion” ($210 vs. $1,100) decreased as a result of a decrease in corporate activity.  Net Loss was ($90,541) vs. ($77,224).  Loss Per Share was ($0.00) vs ($0.00) in the prior year period.



Liquidity and Capital Resources

The Company had a working capital deficit of ($255,893) at 8/31/2012, compared to a working capital deficit of ($171,849) at 2/29/2012.  Net Cash Used in Operating Activities for Six Months Ended 8/31/2012 was ($8,247) vs. ($25,180) in the prior-year period, including the ($90,541) Net Loss; significant adjustments included amortization of $497 and “changes in operating assets and liabilities” of $81,797.  Net Cash Used in Investing Activities was $nil versus $nil.  Net Cash Provided by Financing Activities was $7,840 versus $19,000; resulting from $7,840 net “due to/from related parties”.



ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

         No Disclosure Necessary








8








ITEM 4.  CONTROLS AND PROCEDURES


a.  Evaluation of Disclosure Controls and Procedures

As required by Rule 13(a)-15 under the Exchange Act, in connection with this interim report on Form 10-Q, under the direction of the Chief Executive Officer and Chief Financial Officer, the Company has evaluated its disclosure controls and procedures as of August 31, 2012, and concluded the disclosure controls and procedures were not effective due to the material weaknesses in internal control over financial reporting described in our annual report on Form 10-K for the year ended February 29, 2012.


Changes in Internal Control/Reporting

There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the six months ended August 31, 2012 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



ITEM 4T.  CONTROLS AND PROCEDURES

          Not Applicable



PART II

OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

         No Disclosure Necessary


ITEM 1A.  RISK FACTORS

          Not Applicable


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

         a.  No Disclosure Necessary

         b.  No Disclosure Necessary

         c.  No Disclosure Necessary


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         No Disclosure Necessary


ITEM 4.  MINE SAFETY DISCLOSURES

         No Disclosure Necessary


ITEM 5.  OTHER INFORMATION

         a.  Reports on Form 8-K:

               No Disclosure Necessary

         b.  Information required by Item 407(C)(3) OF Regulation S-K:

               No Disclosure Necessary





9








ITEM 6.  EXHIBITS


Exhibit 31.1

 Certification required by Rule 13a-14(a) or Rule 15d-14(a)


Exhibit 32.1

Certification Required by Rule 13a-14(b) or Rule 15d-14(b) and section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350



101.INS(1)*:     XBRL Instance Document

101.SCH(1)*:     XBRL Taxonomy Extension Schema Document

101.CAL(1)*:     XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF(1)*:     XBRL Taxonomy Extension Definition Linkbase Document

101.LAB(1)*:     XBRL Taxonomy Extension Label Linkbase Document

101.PRE(1)*:     XBRL Taxonomy Extension Presentation Linkbase Document


(1) Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933 or Section 18 of the Securities Act of 1934 and otherwise are not subject to liability.

*   To be filed by amendment.



SIGNATURES


In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Bi-Optic Ventures Inc. -– SEC File No. 000-49685

Registrant


Date: October 15, 2012             /s/ Harry Chew                            

                                Harry Chew, President/CEO/CFO/Director





10


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