NOTES TO FINANCIAL STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2016 AND 2015
(EXPRESSED IN US DOLLARS)
(Unaudited)
NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS
Horizon Minerals Corp. (the Company) was incorporated under the laws of the State of Delaware on May 11, 2011. The Company is currently seeking to acquire a business.
The Companys financial statements are prepared on a going concern basis in accordance with US generally accepted accounting principles (GAAP) which contemplate the realization of assets and discharge of liabilities and commitments in the normal course of business. The Company has funded its operations through the issuance of capital stock and debt. Management intends to obtain additional funding by borrowing funds from its directors and officers, issuing promissory notes and/or a private placement of common stock. There is no certainty that further funding will be available as needed. These factors raise substantial doubt about the ability of the Company to continue operating as a going concern. The Companys ability to continue its operations as a going concern, realize the carrying value of its assets, and discharge its liabilities in the normal course of business is dependent upon its ability to raise new capital sufficient to fund its commitments and ongoing losses, and ultimately on generating profitable operations. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern.
NOTE 2 - BASIS OF PRESENTATION
The unaudited interim financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the notes to the financial statements included in the Annual Report on Form 10-K of the Company for the year ended December 31, 2015. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, these unaudited interim financial statements and the related notes should be read in conjunction with the Companys audited financial statements for the year ended December 31, 2015, included in the Companys report on Form 10-K.
NOTE 3 - RELATED PARTY TRANSACTIONS
As at June 30, 2016, the Company was indebted to Mr. Robert Fedun, the sole director, CEO and CFO of the Company, in the amount of $82,359 (December 31, 2015 - $61,477). Of this balance, $6,685 (December 31, 2015 - $3,803) was included in due to related party, and $75,674 (December 31, 2015 - $57,674), associated with the services provided by Mr. Fedun, was included in accounts payable. Amounts due to related party are due on demand, bear no interest, and are unsecured.
During the six month period ended June 30, 2016, the Company accrued $18,000 (June 30, 2015 - $18,000) in consulting fees to Mr. Fedun. The consulting fees were recorded as part of professional fees on the Statement of Operations.
NOTE 4 - STOCKHOLDERS DEFICIT
During the six month period ended June 30, 2016, the Company did not enter into any transactions that resulted in the issuance of its common stock.
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NOTE 5 - NOTE PAYABLE
On May 2, 2016, the Company received a $10,000 loan from a third party in exchange for a one-year promissory note accumulating interest at 10% per annum compounded annually. At June 30, 2016, the Company accrued $97 in interest associated with the loan.
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