NOTES TO THE FINANCIAL STATEMENTS
December 31, 2012
NOTE 1 – NATURE OF OPERATIONS
Queensridge Mining Resources, Inc. (“Queensridge”
and the “Company”) was incorporated in Nevada on January 29, 2010. Queensridge is an exploration stage company and
has not yet realized any revenues from its planned operations. Queensridge is currently in the process of acquiring certain mining
claims.
NOTE 2 – SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could
differ from those estimates.
Basic Loss Per Share
Basic loss per share has been calculated
based on the weighted average number of shares of common stock outstanding during the period.
Mineral Properties
Costs of exploration and the costs of carrying
and retaining unproven mineral lease properties are expensed as incurred. Mineral property acquisition costs are capitalized including
licenses and lease payments. Although the Company has taken steps to verify title to mineral properties in which it has an interest,
these procedures do not guarantee the Company's title. Such properties may be subject to prior agreements or transfers and title
may be affected by undetected defects.
Impairment losses are recorded on mineral
properties used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated
by those assets are less than the assets’ carrying amount.
Comprehensive Income
The Company has adopted SFAS 130 “Reporting
Comprehensive Income” (ASC 220-10), which establishes standards for reporting and display of comprehensive income, its components
and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders’
Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The
Company has not had any significant transactions that are required to be reported in other comprehensive income.
QUEENSRIDGE MINING RESOURCES,
INC.
(AN EXPLORATION STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2012
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
Income Tax
Queensridge follows SFAS 109, “Accounting
for Income Taxes” (ASC 740-10). Deferred income taxes reflect the net effect of (a) temporary difference between carrying
amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating
loss carryforwards. No net provision for refundable Federal income tax has been made in the accompanying statement of loss because
no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carryforward
has been recognized, as it is not deemed likely to be realized.
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Recent Accounting Pronouncements
Queensridge does not expect the adoption
of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial
position or cash flow.
NOTE 3 - GOING CONCERN
Queensridge has recurring losses and has
a deficit accumulated during the exploration stage of $144,968 as of December 31, 2012. Queensridge's financial statements are
prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of
assets and liquidation of liabilities in the normal course of business. However, Queensridge has no current source of revenue.
Without realization of additional capital, it would be unlikely for Queensridge to continue as a going concern. Queensridge's management
plans on raising cash from public or private debt or equity financing, on an as needed basis and in the longer term, revenues from
the acquisition, exploration and development of mineral interests, if found. Queensridge's ability to continue as a going concern
is dependent on these additional cash financings, and, ultimately, upon achieving profitable operations through the development
of mineral interests.
NOTE 4 - MINERAL PROPERTY RIGHTS
During the period ended June 30, 2010,
the Company electronically staked and recorded a 100% interest in a block of mining claims located in northern Newfoundland, Canada
known as the Cutwell Harbour property for $3,000. The mineral properties were found to be unproven and the entire balance of $3,000
was impaired as of June 30, 2010.
QUEENSRIDGE MINING
RESOURCES, INC.
(AN EXPLORATION STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2012
NOTE 5- LOANS PAYABLE RELATED PARTY
The loans payable to a related party are
non-interest bearing and have no specified terms of repayment. The original promissory note payables in the amount of $10,000 each
are due to a related party, bear interest at 5% per annum and are due on due on April 24, 2013 and October 4, 2013.
During the period ended December 31, 2012,
the Company received proceeds from promissory notes of $3,500 and $1,985 from a related party, bearing interest at 5% and due August
29, 2014 and August 14, 2014 respectively.
Total loan principle owed to the related
party was $25,485 at September 30, 2012 and $20,000 at June 30, 2012, plus accrued interest of $1,597 and $1,000 at December 31,
2012 and June 30, 2012, respectively.
NOTE 6 – INCOME TAXES
The provision for Federal income tax consists of the following:
|
|
December 31, 2012
|
|
December 31, 2011
|
Federal income tax benefit attributable to:
|
|
|
|
|
|
|
|
|
Current operations
|
|
$
|
2,467
|
|
|
$
|
2,331
|
|
Less: valuation allowance
|
|
|
(2,467
|
)
|
|
|
(2,331
|
)
|
Net provision for Federal income taxes
|
|
$
|
—
|
|
|
$
|
—
|
|
The cumulative tax effect at the expected rate of 34% of significant
items comprising our net deferred tax amount is as follows:
|
|
December 31,
|
|
June 30,
|
|
|
2012
|
|
2012
|
Deferred tax asset attributable to:
|
|
|
|
|
|
|
|
|
Net operating loss carryover
|
|
$
|
49,289
|
|
|
$
|
46,822
|
|
Less: valuation allowance
|
|
|
(49,289
|
)
|
|
|
(46,822
|
)
|
Net deferred tax asset
|
|
$
|
—
|
|
|
$
|
0
|
|
At December 31, 2012, Queensridge had an unused net operating
loss carryover approximating $144,970 that is available to offset future taxable income; it expires beginning in 2030.
NOTE 7 – COMMON STOCK
At inception, Queensridge issued 3,100,000
shares of stock at $0.001 to its founding shareholder for $3,100 cash.
During the period ended June 30, 2010,
Queensridge issued 3,250,000 shares of stock at $0.005 for $16,250 cash.
During the period ended June 30, 2010,
Queensridge issued 77,800 shares of stock at $0.25 for $19,450 cash.
QUEENSRIDGE MINING
RESOURCES, INC.
(AN EXPLORATION STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 2012
NOTE 8 – COMMITMENTS
Operating Leases
The Company leases its office facilities from a director on
a month-to-month basis at a rate of $310 per month. Rent expense for the periods ended December 31, 2012 and 2011 totaled $1,860
and $1,860, respectively.
NOTE 9 – SUBSEQUENT EVENTS
The Company has evaluated subsequent events
occurring after the balance sheet date through the date the financial statements were issued, and has determined that it does not
have any material subsequent events to disclose.