Cautionary Statement Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q, Unaudited Financial Statements, and Notes to
Unaudited Financial Statements contain forward-looking statements that discuss,
among other things, future expectations and projections regarding future
developments, operations, and financial conditions. All forward-looking
statements are based on management's existing beliefs about present and future
events outside of management's control and on assumptions that may prove to be
incorrect. If any underlying assumptions prove incorrect, our actual results may
vary materially from those anticipated, estimated, projected, or intended. We
undertake no obligation to publicly update or revise any forward-looking
statements to reflect actual results, changes in expectations or events or
circumstances after the date this Quarterly Report on Form 10-Q is filed.
When this report uses the words "we," "us," "our," or "HDHC" and the "Company,"
they refer to High Desert Holding Corp.
Overview
Since our inception in 2013, we have been engaged in the identification,
potential acquisition, and on-going exploration of precious and non-precious
mineral properties located in the Western United States with an initial emphasis
in Nevada. Until May 2015, we did not have patented or unpatented mineral claims
and our activities only consisted of initial discussions and due diligence
sample testing.
We currently hold ten (10) unpatented mining claims located in Esmeralda County,
Nevada, commonly known as "Kibby Flats Property". We also hold fifty (50)
unpatented mining claims commonly referred to as the "QR Property" located in
Humboldt County, Nevada.
Funding permitted, we expect to devote the majority of our efforts permitting
and exploring the QR Property. Since the end of the fiscal year ended December
31, 2016 and through the date of this report, we were unable to commence
material field activities due our lack of financial resources.
Results of Operations
Revenues
We have not earned any revenues since our inception and we do not anticipate
earning revenues in the near future.
Operating Expenses
For the three and nine months ended September 30, 2019 we incurred exploration
costs of approximately $5,000 related to the annual claim maintenance costs, a
reduction of approximately 70% from the comparable prior periods in 2018. We are
continuing to focus on obtaining appropriate funding to begin our planned
exploration program. As our funding permits, we expect to incur increasing
exploration costs for at least the next twelve months.
During the three months ended September 30, 2019, our general and administrative
costs decreased approximately $8,000 to approximately $16,000 from the prior
comparable period of 2018. During the nine months ended September 30, 2019 our
general and administrative costs decreased by approximately $15,000 to
approximately $56,000 from approximately $71,000 incurred in the nine month
period ended September 30, 2018. These decreases primarily consist of reductions
in travel costs incurred. General and administrative expense primarily consists
of director fees totaling $10,000 per quarter and professional fees associated
with regulatory compliance and facilities costs to maintain our corporate
office.
9
Liquidity and Capital Resources
As of September 30, 2019, the Company had a working capital deficit of
approximately $186,000. Nearly all current obligations due, inclusive of
$155,000 of director fees, are held by related parties that informally agreed to
defer payment until the Company's financial resources improve (however, they are
under no formal obligation to continue to do so).
During the nine months ended September 30, 2019 our cash used in operations was
due to the Company continuing to incur operating expenses included in our net
loss of approximately $57,000.
Our current available capital reserves are not sufficient for the Company to
remain operational. We require additional equity and / or debt financing to
implement our exploration and other business plans.
Our auditors have issued a "going concern" opinion on our financial statements
for the year ended December 31, 2018, meaning that there is substantial doubt we
can continue as an on-going business for the next twelve months unless we obtain
additional capital. No substantial revenues are anticipated until we have
completed one or more financings and implemented our plan of operations. Our
sole Officer, and other affiliates, have provided the financial resources to
continue as a going concern, however, they have no obligations to do so.
We have achieved success in using shares of our restricted and unregistered
shares of common stock in making capital asset acquisitions including mining
equipment and mineral properties. We expect to continue to issue shares for
certain future capital acquisitions and to compensate certain officers,
directors, and other consultants; however, there is no guarantee we will be able
to do so at terms favorable to our operating plans or at all.
Critical Accounting Policies
Our Unaudited Financial Statements and Notes to Unaudited Financial
Statements have been prepared in accordance with U.S. GAAP. The preparation of
these financial statements requires management to make estimates, judgments, and
assumptions that affect reported amounts of assets, liabilities, revenues, and
expenses. We continually evaluate the accounting policies and estimates used to
prepare the condensed financial statements. The estimates are based on
historical experience and assumptions believed to be reasonable under current
facts and circumstances. Actual amounts and results could differ from these
estimates made by management. Certain accounting policies that require
significant management estimates and are deemed critical to our results of
operations or financial position are discussed in our Annual Report on Form 10-K
for the year ended December 31, 2018.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements.
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