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|
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|
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Page
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PART
I - Financial Information
|
3
|
|
Item
1. Financial Statements
|
3
|
|
Balance
Sheets November 30, 2008 (unaudited), and May 31, 2008
|
3
|
|
Statements
of Operations for the three and six-month periods ended
|
||
November
30, 2008 and 2007, and for the period from inception
|
||
of
the exploration state on June 1, 2000 to November 30,
2008.
|
4
|
|
Statements
of Cash Flows for the six-month periods ended
|
||
November
30, 2008 and 2007, and for the period from inception
|
||
of
the exploration state on June 1, 2000 to November 30,
2008.
|
5
|
|
Notes
to the Financial Statements
|
7
|
|
Item
2. Management’s Discussion and Analysis or Plan of
Operation
|
14
|
|
Item
3 Quantitative and Qualitative Disclosure About Market
Risk
|
24
|
|
Item
4 Controls and Procedures
|
24
|
|
PART
II – Other Information
|
25
|
|
Item
1. Legal Proceedings
|
25
|
|
Item
1A. Risk Factors
|
25
|
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
25
|
|
Item
3. Defaults Upon Senior Securities
|
25
|
|
Item
4. Submission of Matters to a Vote of Security Holders
|
25
|
|
Item
5. Other Information
|
25
|
|
Item
6. Exhibits
|
25
|
(Unaudited)
|
||||||||
November
30,
|
May
31,
|
|||||||
2008
|
2008
|
|||||||
ASSETS:
|
||||||||
Current
Assets:
|
||||||||
Cash
|
$
|
1,573,681
|
$
|
2,115,513
|
||||
Prepaid
expenses
|
500
|
-
|
||||||
Total
Current Assets
|
1,574,181
|
2,115,513
|
||||||
Office
Equipment, Net
|
-
|
352
|
||||||
Reclamation
Deposit
|
14,155
|
31,155
|
||||||
Total
Assets
|
$
|
1,588,336
|
$
|
2,147,020
|
||||
LIABILITIES
& STOCKHOLDERS’ EQUITY:
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
Payable
|
$
|
46,856
|
$
|
328,762
|
||||
Total
Current Assets
|
46,856
|
328,762
|
||||||
Stockholders'
Equity:
|
||||||||
Preferred
Stock, Par Value $.001
|
||||||||
Authorized
20,000,000 shares,
|
||||||||
No
shares issued at November 30, 2008 and May 31, 2008
|
-
|
-
|
||||||
Common
Stock, Par Value $.001
|
||||||||
Authorized
100,000,000 shares,
|
||||||||
Issued
26,224,400 shares at
|
||||||||
November
30, 2008 and May 31, 2008
|
26,224
|
26,224
|
||||||
Paid-In
Capital
|
26,381,771
|
26,382,663
|
||||||
Currency
Translation Adjustment
|
(16,361)
|
(16,361
|
)
|
|||||
Deficit
Accumulated Since Inception of Exploration State
|
(24,809,072)
|
(24,533,186
|
)
|
|||||
Retained
Deficit
|
(41,082)
|
(41,082
|
)
|
|||||
Total
Stockholders' Equity
|
1,541,480
|
1,818,258
|
||||||
Total
Liabilities and Stockholders' Equity
|
$
|
1,588,336
|
$
|
2,147,020
|
Cumulative
|
||||||||||||||||||||
Since
|
||||||||||||||||||||
For
the Three Months
|
For
the Six Months
|
June
1, 2000
|
||||||||||||||||||
Ended
|
Ended
|
Inception
of
|
||||||||||||||||||
November
30,
|
November
30,
|
Exploration
|
||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
State
|
||||||||||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||
Cost
of Revenues
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Gross
Margin
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Expenses:
|
||||||||||||||||||||
Mineral
Claim Payments and Exploration Expenditures
|
63,827
|
113,867
|
172,081
|
153,700
|
3,161,132
|
|||||||||||||||
General
& Administrative
|
121,780
|
50,705
|
153,236
|
66,975
|
22,098,915
|
|||||||||||||||
Net
Loss from Operations
|
(185,607)
|
(164,572
|
)
|
(325,317)
|
(220,675
|
)
|
(25,260,047)
|
|||||||||||||
Other
Income (Expense)
|
||||||||||||||||||||
Interest,
Net
|
9,136
|
30,911
|
20,503
|
60,973
|
426,506
|
|||||||||||||||
Currency
Exchange
|
21,297
|
5,628
|
28,928
|
7,816
|
24,469
|
|||||||||||||||
Net
Loss
|
$
|
(155,174)
|
$
|
(128,033
|
)
|
$
|
(275,886)
|
$
|
(151,886
|
)
|
$
|
(24,809,072)
|
||||||||
Basic
& Diluted
|
||||||||||||||||||||
Loss
per Share
|
$
|
(0.01
|
)
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
||||||||
Weighed
Average Shares
|
||||||||||||||||||||
Outstanding
|
26,224,400
|
26,224,400
|
26,224,400
|
26,224,400
|
Cumulative
|
||||||||||||
Since
|
||||||||||||
June
1, 2000
|
||||||||||||
For
the Six Months Ended
|
Inception
of
|
|||||||||||
November
30,
|
Exploration
|
|||||||||||
2008
|
2007
|
State
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
Loss
|
$
|
(275,886)
|
$
|
(151,886
|
)
|
$
|
(24,809,072)
|
|||||
Adjustments
to Reconcile Net Loss to Net
|
||||||||||||
Cash
Used in Operating Activities:
|
||||||||||||
Compensation
Expense of Stock Options
|
(892)
|
(3,360)
|
5,003,630
|
|||||||||
Common
Stock Issued for Services
|
—
|
—
|
16,267,500
|
|||||||||
Depreciation
|
352
|
699
|
4,193
|
|||||||||
Change
in Operating Assets and Liabilities:
|
||||||||||||
(Increase)
Decrease in Prepaid Expenses
|
(500)
|
(5,000
|
)
|
(500)
|
||||||||
Increase
(Decrease) in Accounts Payable
|
(281,906)
|
106,932
|
40,613
|
|||||||||
Net
Cash Used in Operating Activities
|
(558,832)
|
(52,615
|
)
|
(3,493,636)
|
||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Purchase
of Office Equipment
|
—
|
—
|
(4,193
|
)
|
||||||||
Reclamation
Deposit
|
17,000
|
(900)
|
(14,155)
|
|||||||||
Net
Cash Used in Investing Activities
|
17,000
|
(900)
|
(18,348)
|
|||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
from Sale of Common Stock
|
—
|
—
|
5,105,825
|
|||||||||
Redemption
of Common Stock
|
—
|
—
|
(30,000
|
)
|
||||||||
Proceeds
from Contributed Capital
|
—
|
—
|
9,840
|
|||||||||
Net
Cash Provided by Financing Activities
|
—
|
—
|
5,085,665
|
|||||||||
Net
(Decrease) Increase in Cash and Cash Equivalents
|
(541,832)
|
(53,515
|
)
|
1,573,681
|
||||||||
Cash
and Cash Equivalents at Beginning of Period
|
2,115,513
|
3,029,331
|
—
|
|||||||||
Cash
and Cash Equivalents at End of Period
|
$
|
1,573,681
|
$
|
2,975,816
|
$
|
1,573,681
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash
paid during the year for:
|
||||||||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Income
taxes
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
SUPPLEMENTAL
DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||||||
Settlement
of Subscription Receivable by the Cancellation of Common
Stock
|
$ |
-
|
$ |
-
|
$ |
79,000
|
Available
for Grant
|
Options
Outstanding
|
Weighted
Average Exercise Price
|
||||||||||
Balance,
May 31, 2008
|
506,000 | 385,000 | $ | 0.26 | ||||||||
Options
granted
|
- | - | - | |||||||||
Options
cancelled
|
- | - | - | |||||||||
Options
exercised
|
- | - | - | |||||||||
Balance,
November 30, 2008
|
506,000 | 385,000 | $ | 0.26 |
Available
for Grant
|
Options
Outstanding
|
Weighted
Average Exercise Price
|
||||||||||
Balance,
May 31, 2008
|
1,000,000 | 1,000,000 | $ | 0.25 | ||||||||
Options
granted
|
- | - | - | |||||||||
Options
forfeited
|
- | - | - | |||||||||
Options
exercised
|
- | - | - | |||||||||
Balance,
November 30, 2008
|
1,000,000 | 1,000,000 | $ | 0.25 |
Exercise
Prices
|
Options
Outstanding
|
Remaining
Contractual Life
(in
years)
|
Weighted
Average
Exercise
Price
|
Number
of Options Currently Exercisable
|
Weighted
Average
Exercise
Price
|
$
0.05
|
300,000
|
4.58
|
$
0.05
|
300,000
|
$
0.05
|
$
0.25
|
1,000,000
|
7.25
|
$
0.25
|
916,667
|
$
0.25
|
$
0.80
|
5,000
|
4.67
|
$
0.80
|
5,000
|
$
0.80
|
$
1.03
|
80,000
|
4.67
|
$
1.03
|
80,000
|
$
1.03
|
1,385,000
|
$
0.25
|
1,301,667
|
$
0.25
|
Number
of
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Grant
Date Fair Value
|
||||||||||
Unvested
at May 31, 2008
|
166,667 | 0.25 | 0.21 | |||||||||
Granted
|
- | - | - | |||||||||
Vested
|
(83,334 | ) | 0.25 | 0.21 | ||||||||
Cancelled
|
- | - | - | |||||||||
Unvested
at November 30, 2008
|
83,333 | $ | 0.25 | $ | 0.21 |
Warrants
Outstanding
|
||||
Balance,
May 31, 2008
|
3,456,000 | |||
Warrants
granted
|
- | |||
Warrants
exercised
|
- | |||
Balance,
November 30, 2008
|
3,456,000 |
Number
Outstanding
|
Exercise
Price
|
Weighted
Average Contractual Remaining Life (years)
|
Number
Currently Exercisable
|
Exercise
Price
|
864,000
|
$
1.40
|
1.00
|
864,000
|
$
1.40
|
864,000
|
$
1.45
|
1.00
|
864,000
|
$
1.45
|
864,000
|
$
1.50
|
1.00
|
864,000
|
$
1.50
|
864,000
|
$
1.55
|
1.00
|
864,000
|
$
1.55
|
3,456,000
|
3,456,000
|
·
|
geologic
mapping (producing a plan map of the rock types, structure and
alteration),
|
·
|
rock
chip geochemical sampling (sample of soil, rock, silt, water or vegetation
analyzed to detect the presence of valuable metals or other metals which
may accompany them (e.g., Arsenic may indicate the presence of
gold),
|
·
|
a
ground magnetic survey, and
|
·
|
a
Controlled Source Magneto Telluric survey (recording variations in a
generated electrical field using sophisticated survey
methods).
|
Whiskey
Property
|
||||||||
Property
|
Work
|
|||||||
Payments
|
Expenditures
|
|||||||
$USD
|
$USD
|
|||||||
Upon
Execution of the Agreement
|
$ | 50,000 | $ | - | ||||
By
March 15, 2009
|
50,000 | 50,000 | ||||||
By
March 15, 2010
|
50,000 | 150,000 | ||||||
By
March 15, 2011
|
65,000 | 200,000 | ||||||
By
March 15, 2012
|
80,000 | 350,000 | ||||||
By
March 15, 2013
|
100,000 | 200,000 | ||||||
By
March 15, 2014
|
100,000 | 200,000 | ||||||
By
March 15, 2015
|
100,000 | 200,000 | ||||||
By
March 15, 2016
|
100,000 | 200,000 | ||||||
By
March 15, 2017
|
100,000 | 200,000 | ||||||
By
March 15, 2018
|
250,000 | 750,000 | ||||||
$ | 1,045,000 | $ | 2,500,000 |
Property
|
Work
|
|||||||
Payments
|
Expenditures
|
|||||||
$USD
|
$USD
|
|||||||
Upon
Execution of the Agreement
|
$ | 20,000 | $ | - | ||||
By
March 15, 2009
|
20,000 | 50,000 | ||||||
By
March 15, 2010
|
20,000 | 75,000 | ||||||
By
March 15, 2011
|
35,000 | 100,000 | ||||||
By
March 15, 2012
|
45,000 | 250,000 | ||||||
By
March 15, 2013
|
50,000 | 100,000 | ||||||
By
March 15, 2014
|
50,000 | 100,000 | ||||||
By
March 15, 2015
|
50,000 | 100,000 | ||||||
By
March 15, 2016
|
50,000 | 100,000 | ||||||
By
March 15, 2017
|
50,000 | 100,000 | ||||||
By
March 15, 2018
|
100,000 | 250,000 | ||||||
$ | 490,000 | $ | 1,225,000 |
·
|
$487,000
in property option payments, exploration expenditures and annual claim
payments for the Company’s properties;
and
|
·
|
$100,000
for operating expenses, including working capital and general, legal,
accounting and administrative expenses associated with reporting
requirements under the Securities Exchange Act of
1934.
|
Date: January
13, 2009
PATRIOT
GOLD CORP.
By: /s/ Herb Duerr
Herb
Duerr
President,
Chief Executive
Officer,
Secretary and Treasurer
(Principal
Executive, Financial, and Accounting
Officer)
|