Unigold Inc – 3Q08 Financials

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Unigold Inc – 3Q08 Financials

Template Name : General Disclosure – Free Text

Issuer name : Unigold Inc
Headline : 3Q08 Financials

UNIGOLD INC.
(A Development Stage Company)

CONSOLIDATED BALANCE SHEETS
(Expressed in Canadian Dollars)
As atAs at
September 30,December 31,
2008 2007
(Unaudited)(Audited)
Current assets
Cash and cash equivalents$101,778$114,474
Sundry receivables43,14343,695
Prepaid expenses (note 9)60,692104,765
205,213262,934

Other investments (note 3)7,858,7188,158,718

Equipment (note 4)459,390545,424

Mineral Properties (note 5)624,574624,574

Deferred exploration costs (note 5)10,062,7757,412,278

Public listing status100,000100,000

$19,310,670$17,103,928

Current liabilities
Accounts payable and accrued liabilities (note 9)$217,893$190,622
Cheques issued in excess of cash45,238106,243
Bank loan (note 6)3,840,000510,000
4,103,131806,865
Contingencies (notes 1, 3, and 12)

Non-controlling interest2,8312,831

Shareholders’ Equity
Common shares (note 7(a))27,331,16627,320,166
Contributed surplus (note 7(d))2,500,5471,972,557
Deficit(14,627,005)(12,998,491)
15,204,70816,294,232

$19,310,670$17,103,928
Approved on Behalf of the Board:

Signed: “Dr. Talal A. Alshair”Signed: “Daniel Danis”
DirectorDirector

See accompanying notes to the consolidated financial statements

UNIGOLD INC.
(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(Unaudited – Expressed in Canadian Dollars)

Three months ended Nine months ended
September 30, September 30,
20082007 20082007
Revenue
Interest income$ 337$ 41,803$ 1,233$ 191,691

Administrative expenses
Travel and business development 35,457 42,775 67,993 114,606
Listing and shareholder information 52,432 82,074 255,413 259,074
General and administrative expenses 38,994 44,405 130,954 148,338
Professional and consulting fees 29,693 45,066 136,229 78,639
Management services fees 35,425 37,500 122,143 110,051
Stock based compensation 530,740 — 530,740 30,393
Interest expense 30,355 — 58,940 —
Provision for impairment
of other investments (note 3) — 1,300,000 300,000 1,300,000
Foreign exchange loss 8,006 74,246 22,789 250,046
Amortization 1,515 2,047 4,546 6,141
762,617 1,628,113 1,629,747 2,297,288

Net loss for the period (762,280) (1,586,310) (1,628,514) (2,105,597)

Deficit, beginning of period (13,864,725) (9,581,093) (12,998,491) (9,061,806)

Deficit, end of period$(14,627,005)$(11,167,403) $(14,627,005) $(11,167,403)

Net loss per share-basic & diluted$ (0.01)$ (0.02) $ (0.02) $ (0.03)

Weighted average number of shares outstanding 85,830,494 77,399,946

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited – Canadian $)
Three months ended Nine months ended
September 30, September 30,
20082007 20082007
Net loss for the period$ (762,280)$ (1,586,310)$ (1,628,514)$ (2,105,597)
Other comprehensive loss — — — —
Comprehensive loss for the period$ (762,280)$ (1,586,310)$ (1,628,514)$ (2,105,597)

See accompanying notes to the consolidated financial statements

UNIGOLD INC.
(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited – Canadian $)
Three months ended Nine months ended
September 30,September 30,
2008 2007 20082007
Cash flows from operating activities
Net loss for the period$ (762,280)$(1,586,310)$(1,628,514)$(2,105,597)
Add items not requiring cash:
Provision for impairment of
other investments — 1,300,000 300,000 1,300,000
Amortization 1,515 2,047 4,546 6,141
Stock based compensation 530,740 — 530,740 30,393
(230,025) (284,263) (793,228) (769,063)
Net changes in non-cash
working capital balances (note 7) (583,887) 156,678 11,291 74,058
(813,912) (127,585) (781,937) (695,005)
Cash flows from financing activities
Bank loan 1,200,000 — 3,330,000 –
Exercise of broker warrants — 227,880 — 227,880
Exercise of share purchase warrants — 6,750,000 — 6,750,000
Exercise of stock options — – 8,250 84,000
1,200,000 6,977,880 3,338,250 7,061,880

Cash flows from investing activities
Deferred exploration costs (561,241) (906,304) (2,569,009) (2,630,325)
Acquisition of equipment — (68,307) — (68,307)
Purchase of investments –(10,978,630) –(10,978,630)
Issue of shares – Los Guandules Property — – — 257,400
Mineral properties — – — (257,400)
(561,241) (11,953,241) (2,569,009)(13,677,262)
Increase (decrease) in cash
and cash equivalents (175,153) (5,102,946) (12,696) (7,310,387)

Cash & cash equivalents beginning of period 276,931 5,601,279 114,474 7,808,720

Cash & cash equivalents, end of period $ 101,778$ 498,333$ 101,778$ 498,333

Cash and cash equivalents consist of:
Cash$ 101,778$ 498,333
Short term deposits — –
$ 101,778$ 498,333
Supplemental Information
Income taxes paid $ — $ — $ — $ –
Interest paid $ 30,355 $ — $ 58,940 $ –

See accompanying notes to the consolidated financial statements

UNIGOLD INC.
(A Development Stage Company)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

As at September 30, 2008 and for the year ended December 31, 2007
(Unaudited – Expressed in Canadian Dollars)

1.NATURE OF OPERATIONS AND GOING CONCERN

Unigold Inc. (the “Company”) is a development stage company, as defined by the Canadian Institute of Chartered Accountants Accounting Guideline 11, and is in the process of exploring its mineral properties in the Dominican Republic.

The business of mining and exploring for minerals involves a high degree of risk and there can be no assurance that current exploration programs will result in profitable mining operations. The recoverability of the carrying value of exploration properties and the Company’s continued existence is dependent upon the preservation of its interest in the underlying properties, the discovery of economically recoverable reserves, the achievement of profitable operations, or the ability of the Company to raise alternative financing, if necessary, or alternatively upon the Company’s ability to dispose of its interests on an advantageous basis. Changes in future conditions could require material write downs of the carrying values. The Company’s mining assets are located outside of Canada and are subject to the risk of foreign investment, including increases in taxes and royalties, renegotiation of contracts, currency exchange fluctuations, and political uncertainties.

Although the Company has taken steps to verify title to the properties on which it is conducting exploration and in which it has an interest, in accordance with industry standards for the current state of exploration of such properties, these procedures do not guarantee the Company’s title. Property title may be subject to unregistered prior agreements and non-compliance with regulatory requirements.

These consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles applicable to a going concern. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore be required to realize its assets and liquidate its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying consolidated financial statements.

The Company has approximately $7.9 million (net of an impairment charge of $3.1 million) invested in asset-backed-commercial paper (“ABCP”) in which no active market currently exists and the funds cannot be accessed. See Note 3. There is no assurance as to the ultimate full recovery of these funds.

Because of limited working capital and continuing operating losses, the Company’s continuance as a going concern is dependent upon its ability to obtain adequate financing and to reach profitable levels of operation. It is not possible to predict whether financing efforts will be successful or if the Company will attain profitable levels of operations.

The accompanying consolidated financial statements do not include any adjustments relating to the carrying values and classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern.

Dubai Stock Exchange

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The Dubai Stock Exchange was founded on September 29, 2004. it is a limited liability company inside the Dubai International Financial Center. The Dubai Stock Exchange became fully functional after it received a license from the Dubai International Financial Center in September 26, 2005. There was no looking back after that. large companies such as the Credut Suisse, Deutsche Bank, HSBC , UBS AG and the Citibank.

The Dubai Stock Exchange started trading in index linked equity products . These products were also traded in other exchanges.

The Dubai Stock Exchange is fast growing and its growth is reflected in the increasing number of members in its board. It started with four members but now the membership has increased to 13. The Dubai International Financial Exchange aims at increasing the market capitalization by including 10 to 15 Initial Public Offerings .

The Dubai Stock Exchange offers the following services to its participants :

  • One stop solution to trading
  • Clearing and Settlement through the Electronic AtosEuronext Market Solutions NSC system. The members do not use a specific trading terminal as a technical connection is already is offered.
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  • To ease the transactions of the foreign investor, trading is denominated in the US dollars. Trading is also allowed in Euros and Sterling on special requests.
  • There are no limits on foreign ownership which is quite different from other independent exchanges.
  • The Dubai Stock Exchange basically unites the Middle East Markets and the markets in London, Singapore and Hong Kong.

Products and services issued by the Dubai Stock Exchange

The listed products of the Dubai Stock Exchange are

  • Ordinary shares listed by Kingdom Hotel Investments
  • Global Depository Shares issued by Invest com
  • The foreign investors participating in the Dubai Stock Exchange have the opportunity to invest in the Gulf Cooperation Council.
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