Oraco Resources, Inc.

CIK:0001490711|SEC Filings

Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended		26 Months Ended
Statements of Operations (Unaudited) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
Revenue
Gold and diamond sales					$ 30,000
Commission income			6,103		26,103
Total revenue			6,103		56,103
Cost of goods sold			2,714		33,404
Cost of goods sold - related party					8,300
Total cost of goods sold			2,714		41,704
Gross loss			3,389		14,399
Operating expenses:
Depreciation and amortization	144	144	433	378	956
Executive compensation	42,307	27,118	118,724	27,118	175,977
General and administrative	134,131	1,511	166,531	1,626	170,431
Professional fees	470,804	152,743	954,120	247,882	1,383,680
Professional fees - related party	157,195	18,700	233,488	21,200	277,265
Total operating expenses	804,581	200,216	1,473,296	298,204	2,008,309
Other income (expense):
Interest income	1,576		1,579		1,585
Foreign currency transaction loss	(1,541)	(425)	(3,450)	(425)	(3,915)
Total other expense	35	(425)	(1,871)	(425)	(2,330)
Net loss	$ (804,546)	$ (200,641)	$ (1,471,778)	$ (298,629)	$ (1,996,240)
Weighted average number of common shares outstanding - basic	24,389,599	23,484,123	24,016,789	19,266,062
Net loss per share - basic	$ (0.03)	$ (0.01)	$ (0.06)	$ (0.02)

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended		26 Months Ended
Statements of Cash Flows (Unaudited) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,471,778)	$ (298,629)	$ (1,996,240)
Adjustments to reconcile net loss to net cash used in operating activities:
Shares to be issued for consulting services	444,064	47,396	648,335
Depreciation and amortization	433	378	956
Changes in operating assets and liabilities:
Decrease in restricted cash	59,256
Decrease in prepaid expenses		1,500
Increase in inventory	(425,058)		(425,058)
Increase in accrued interest receivable	(1,570)		(1,570)
Increase in due from related party		49,900
Increase in accounts payable	18,668	14,231	40,015
Increase in accrued payroll taxes	9,424	2,577	14,479
Increase in customer deposits	(59,256)
Net cash used in operating activities	(1,422,817)	(182,647)	(1,716,083)
CASH FLOWS FROM INVESTING ACTIVITIES
Cash acquired upon merger		78	78
Purchase of trademark		(5,775)	(5,775)
Payments for notes receivable	(200,000)		(200,000)
Net cash used in investing activities	(200,000)	(5,697)	(205,697)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit - related party	1,935	6,164	8,734
Repayments for line of credit - related party	(8,734)	(10)	(8,734)
Proceeds from sale of common stock, net of offering costs	1,462,955	200,030	1,737,985
Proceeds from common stock payable	224,398	27,800	252,198
Donated capital	40	210	262
Net cash provided by financing activities	1,680,594	234,194	1,990,445
NET CHANGE IN CASH	57,777	45,850	68,665
CASH AT BEGINNING OF PERIOD	10,888
CASH AT END OF PERIOD	68,665	45,850	68,665
SUPPLEMENTAL INFORMATION:
Interest paid
Income taxes paid
NON-CASH SUPPLEMENT:
Assets acquired		50,000	50,000
Liabilities assumed		(4,564)	(4,564)
Common stock payable assumed		(50,700)	(50,700)
Total acquired, excluding cash		5,264	(5,264)
Common stock for reverse merger		8,344	8,344
Shares to be issued for consulting services	$ 444,064	$ 47,396	$ 648,335

Balance Sheets (Unaudited) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Current assets:
Cash	$ 68,665	$ 10,888
Cash - restricted		59,256
Inventory	425,058
Total current assets	493,723	70,144
Other assets:
Notes receivable	200,000
Accrued interest receivable	1,570
Trademark, net	4,819	5,252
Total other assets	206,389	5,252
Total assets	700,112	75,396
Current liabilities:
Accounts payable	47,578	25,910
Accrued payroll taxes	14,479	5,055
Line of credit - related party		6,799
Customer deposit		59,256
Total current liabilities	62,057	97,020
Total liabilities	62,057	97,020
Stockholders' equity (deficit):
Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.001 par value, 100,000,000 shares authorized, 24,585,788 and 23,645,360 shares issued and outstanding as of September 30, 2012 and December 31, 2011, respectively	24,588	23,646
Additional paid-in capital	1,766,817	299,762
Common stock payable	868,431	204,971
Deficit accumulated during exploration stage	(2,021,781)	(550,003)
Total stockholders' equity (deficit)	638,055	(21,624)
Total liabilities and stockholders' equity (deficit)	$ 700,112	$ 75,396