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 May 31, 2013


[ ]         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 XXX


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 07/21/2014: 28,420,135 Common Shares w/o par value




PART I – FINANCIAL INFORMATION



ITEM 1.  FINANCIAL STATEMENTS





BI-OPTIC VENTURES INC.

Financial Statements

Three Months Ended May 31, 2014

(Expressed in Canadian dollars)

(unaudited)










BI-OPTIC VENTURES INC.

(A Development Stage Company)

Balance Sheets

(expressed in Canadian dollars)

 

May 31,

February 28,

 

2014

$

2014

$

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

Current Assets

 

 

 

 

 

Cash

1,231

–

Amounts receivable

1,372

1,576

Prepaid expenses

438

438

 

 

 

Total Current Assets

3,041

2,014

 

 

 

Property and equipment (Note 3)

1,625

1,750

 

 

 

Total Assets

4,666

3,764

 

 

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

Current Liabilities

 

 

 

 

 

Bank overdraft

–

71

Accounts payable

73,892

69,687

Due to related parties (Note 4)

34,400

395,045

 

 

 

Total Liabilities

108,292

464,803

 

 

 


 

 

Going Concern (Note 1)

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

Common stock: unlimited common shares authorized without par value; 28,420,135 shares issued and outstanding

5,401,188

4,808,095

 

 

 

Deficit accumulated during the development stage

(5,504,814)

(5,269,134)

 

 

 

Total Stockholders’ Deficit

(103,626)

(461,039)

 

 

 

Total Liabilities and Stockholders’ Deficit

4,666

3,764

 

 

 








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




1




BI-OPTIC VENTURES INC.

(A Development Stage Company)

Statements of Operations

(expressed in Canadian dollars)

(unaudited)

 

Three months ended

May 31,

Three months ended

May 31,

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

 

2014

2013

2014

 

$

$

$

 

 

 

 

Revenue

–

–

–

 

 

 

 

Expenses

 

 

 

 

 

 

 

Acquisition costs written-off

–

–

347,815

Amortization

125

176

27,777

Bad debts

–

–

20,658

Consulting and management fees (Note 4)

9,125

9,250

935,040

Investor and public relations

–

–

94,268

Office, rent and telephone (Note 4)

7,787

8,721

652,654

Professional fees (Note 4)

13,224

12,902

991,803

Transfer agent and regulatory fees

1,592

1,837

191,640

Travel and promotion

6,130

–

352,552

Write-down of property and equipment

–

–

2,066

 

 

 

 

Total Expenses

37,983

32,886

3,616,273

 

 

 

 

Loss from Operations

(37,983)

(32,886)

(3,616,273)

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

Accounts payable written-off

–

–

49,341

Loss on settlement of debt (Note 5)

(197,697)

–

(144,778)

Interest and other income

–

–

17,118

Provision for advances receivable

–

–

(75,943)

 

 

 

 

Total Other Income (Expense)

(197,697)

–

(154,262)

 

 

 

 

Net Loss Before Discontinued Operations

(235,680)

(32,886)

(3,770,535)

 

 

 

 

Loss from discontinued operations

–

–

(1,734,279)

 

 

 

 

Net Loss for the Period

(235,680)

(32,886)

(5,504,814)

 

 

 

 

Net Loss Per Share, Basic and Diluted

(0.01)

–

 

 

 

 

 

Weighted Average Shares Outstanding

25,153,828

20,512,235

 








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



2



BI-OPTIC VENTURES INC.

(A Development Stage Company)

Statements of Cash Flows

(expressed in Canadian dollars)

(unaudited)

 

Three months ended

May 31,

Three months ended

May 31,

Accumulated from May 31, 1984

(Date of Inception) to May 31,

 

2014

2013

2014

 

$

$

$

 

 

 

 

Operating Activities

 

 

 

Net loss

(235,680)

(32,886)

(5,504,814)

 

 

 

 

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

 

 

 

Acquisition costs written-off

–

–

347,815

Amortization

125

176

29,379

Bad debts

–

–

20,658

Loss on settlement of debt

197,697

–

144,778

Provision for advances receivable

–

–

464,169

Write-down of property and equipment

–

–

2,066

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

Amounts receivable

204

629

(22,029)

Advances receivable

–

–

(65,447)

Prepaid expenses

–

–

(437)

Accounts payable and accrued liabilities

4,205

(3,502)

334,074

Due to related parties

22,051

22,540

291,061

Net Cash Used in Operating Activities

(11,398)

(13,043)

(3,958,727)

 

 

 

 

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

 

 

 

 

 

 

 

Bank overdraft

(71)

93

–

Proceeds from loans payable

–

–

120,409

Repayment of loans payable

–

–

(80,000)

Proceeds from related parties

114,060

12,950

240,095

Repayments to related parties

(101,360)

–

(101,360)

Proceeds from issuance of common shares

–

–

4,263,051

Share issuance costs

–

–

(76,547)

Net Cash Provided by Financing Activities

12,629

13,043

4,365,648

 

 

 

 

Effect of Exchange Rate Changes on Cash

–

–

(10,379)

 

 

 

 

Increase in Cash

1,231

–

1,231

Cash, Beginning of Period

–

–

–

Cash, End of Period

1,231

–

1,231

 

 

 

 

Non-cash Investing and Financing Activities:

 

 

 

Shares issued to settle debt

593,093

–

840,884

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)




3


BI-OPTIC VENTURES INC.

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

(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 28, 2014. 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 has never paid any dividends and is unlikely to pay dividends or 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 May 31, 2014, the Company has a working capital deficit of $105,251 and has accumulated losses of $5,504,814 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)

ASC 220, “Comprehensive Income” establishes standards for the reporting and display of comprehensive loss and its components in the consolidated financial statements. As at February 28, 2014 and 2013, 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

$

 

May 31,

2014

Net Carrying

Value

$

 

February 28, 2014

Net Carrying

Value

$

 

 

 

 

 

 

 

 

Computer equipment

9,238

 

7,862

 

1,376

 

1,488

Furniture and equipment

6,932

 

6,683

 

249

 

262

 

 

 

 

 

 

 

 

 

16,170

 

14,545

 

1,625

 

1,750




4


BI-OPTIC VENTURES INC.

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

(expressed in Canadian dollars)

(unaudited)




4.

Related Party Transactions

(a)

During the three months ended May 31, 2014, the Company incurred $7,500 (2013 - $7,500) in management fees to a company controlled by the President of the Company.

(b)

During the three months ended May 31, 2014, the Company incurred $7,500 (2013 - $7,500) in rent and administrative services to a company controlled by the President and a director of the Company.

(c)

During the three months ended May 31, 2014, the Company incurred $6,000 (2013 - $6,000) in professional fees to a company controlled by a director.

(d)

As at May 31, 2014, an amount of $2,000 (February 28, 2014 - $53,890) is owed to the spouse of the President of the Company which is non-interest bearing, unsecured, and due on demand. On March 24, 2014, loan proceeds of $47,600 were received from the spouse of the President of the Company which is non-interest bearing, unsecured, and due on demand. The proceeds were used to repay amounts owing to a company controlled by the President of the Company. Refer to Note 5(d).

(e)

As at May 31, 2014, an amount of $8,275 (February 28, 2014 - $100,335) is owed to a company controlled by the President of the Company which is non-interest bearing, unsecured, and due on demand. Refer to Note 5(a).

(f)

As at May 31, 2014, an amount of $17,825 (February 28, 2014 - $163,960) is owed to a company controlled by the President and a director of the Company which is non-interest bearing, unsecured, and due on demand. Refer to Note 5(b).

(g)

As at May 31, 2014, an amount of $6,300 (February 28, 2014 - $76,860) is owed to a company controlled by a director of the Company which is non-interest bearing, unsecured, and due on demand. Refer to Note 5(c).

(h)

On March 24, 2014, loan proceeds of $53,760 were received from the spouse of a director of the Company which is non-interest bearing, unsecured, and due on demand. The proceeds were used to repay amounts owing to a company controlled by a director of the Company. Refer to Note 5(e).


5.

Common Stock

(a)

On April 7, 2014, the Company issued 1,054,700 shares of common stock with a fair value of $79,102 to settle debt of $52,735 owed to a company controlled by the President of the Company. This resulted in a loss on settlement of $26,367.

(b)

On April 7, 2014, the Company issued 3,286,200 shares of common stock with a fair value of $246,465 to settle debt of $164,310 owed to a company controlled by the President and a director of the Company. This resulted in a loss on settlement of $82,155.

(c)

On April 7, 2014, the Company issued 462,000 shares of common stock with a fair value of $34,650 to settle debt of $23,100 owed to a company controlled by a director of the Company. This resulted in a loss on settlement of $11,550.

(d)

On April 7, 2014, the Company issued 2,029,800 shares of common stock with a fair value of $152,235 to settle debt of $101,490 owed to the spouse of the President of the Company. This resulted in a loss on settlement of $50,745.

(e)

On April 7, 2014, the Company issued 1,075,200 shares of common stock with a fair value of $80,640 to settle debt of $53,760 owed to the spouse of a director of the Company. This resulted in a loss on settlement of $26,880.



5




PART II – OTHER INFORMATION



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 05/31/2014 had an accumulated deficit of $5,504,814.


Operating Expenses for the Three Months Ended 05/31/2014 were $37,983 compared to $32,886 for the same period last year.  Consulting/management fees were slightly lower ($9,125 vs. $9,250).  Professional fees were also slightly higher ($13,224 vs. $12,902). “Office/Rent/Telephone/ Administrative Services” also reduced slightly ($7,787 vs. $8,721).  Net Loss was significantly higher, ($235,680 vs. $32,886) due to stock issued for settlement of debts to related parties.  Loss Per Share was $(0.01) vs $0.00 in the prior year period.


Liquidity and Capital Resources

The Company had a working capital deficit of $105,251 at 05/31/14, compared to a working capital deficit of $462,789 at 2/28/2014. The deficit decreased due to a decrease in amounts due to related parties by settlement of debt through issuance of shares.  Net Cash Used in Operating Activities for the Three Months Ended 05/31/14 was $11,398 vs. $13,043 in the prior-year period. Net Cash Used in Investing Activities was $nil versus $nil.  Net Cash Provided by Financing Activities was $12,629 versus $13,043.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

         No Disclosure Necessary


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 May 31, 2014, and concluded the



6




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 28, 2014.


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 three months ended May 31, 2014 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



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.





7










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: July 21, 2014          /s/ Harry Chew                            

                                Harry Chew, President/CEO/CFO/Director





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