UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
Amendment #3
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2005.
OR
/ / TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE TRANSITION FROM _______ TO ________.
COMMISSION FILE NUMBER 000-51302
MADISON EXPLORATIONS, INC.
_________________________________________________________________
(Exact Name of Small Business Issuer as Specified in its Charter)
NEVADA
_______________________________ ___________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
525 Seymour Street, Suite 807
Vancouver, BC, Canada V6B 3H7
________________________________________ __________
(Address of principal executive offices) (Zip code)
Issuer's telephone number: (604) 974-0568
Issuer's fax number: (604) 974-0569
N/A
______________________________________________
(Former name, former address and former fiscal
year, if changed since last report.)
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 /X/ No / /
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes / / No /X/
Indicate by check mark whether the registrant is a shell company (as defined in
12b-2 of the Exchange Act). Yes /X/ No / /
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
At June 30, 2005, and as of the date hereof, there were outstanding
115,320,000 shares of the Registrant's Common Stock, $.001 par value.
Transitional Small Business Disclosure Format: Yes / / No /X/
-2-
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MADISON EXPLORATIONS, INC.
(A Development Stage Enterprise)
CONSOLIDATED FINANCIAL STATEMENTS
UNAUDITED
JUNE 30, 2005
DECEMBER 31, 2004
-3-
MADISON EXPLORATIONS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONTENTS
________________________________________________________________________________
FINANCIAL STATEMENTS
Consolidated Balance Sheets F-1
Consolidated Statements of Operations F-2
Consolidated Statements of Stockholders' Equity F-3
Consolidated Statements of Cash Flows F-4
Notes to Consolidated Financial Statements F-5-8
________________________________________________________________________________
-4-
MADISON EXPLORATIONS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, December 31,
2005 2004
_________ ____________
ASSETS
CURRENT ASSETS
Cash $ 19,345 $ 30,841
_________ _________
Total current assets $ 19,345 $ 30,841
_________ _________
Total assets $ 19,345 $ 30,841
========= =========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 876 $ 5,927
Deferred revenue 44,000 44,000
Due to affiliates 25,000
Officers loans and advances 25,873 26,654
_________ _________
Total current liabilities $ 95,749 $ 76,581
_________ _________
STOCKHOLDERS' EQUITY
Common stock: $.001 par value;
authorized 500,000,000 shares;
issued and outstanding:
115,320,000 shares at June 30, 2005
and December 31, 2004 $ 115,320 $ 115,320
Additional paid-in Capital (109,398) (109,398)
Accumulated other comprehensive income (1,894) (2,554)
Accumulated deficit during development stage (80,432) (49,108)
_________ _________
Total stockholders' equity (deficit) $ (76,404) $ (45,740)
_________ _________
Total liabilities and
stockholders' equity (deficit) $ 19,345 $ 30,841
========= =========
See Accompanying Consolidated Notes to Financial Statements.
F-1
MADISON EXPLORATIONS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
June 15, 1998
Three months ended Six months ended (inception) to
_______________________________ _______________________________ (inception) to
June 30, 2005 June 30, 2004 June 30, 2005 June 30, 2004 June 30, 2005
____________ _____________ ____________ _____________ ______________
Revenues $ - $ - $ - $ - $ -
Cost of revenue - - - - -
___________ ___________ ___________ ___________ ___________
Gross profit $ - $ - $ - $ - $ -
Operating expenses
Exploration and development $ 1,051 $ - $ 21,930 $ - $ 50,745
General and administrative 3,537 7,123 8,491 7,123 27,871
___________ ___________ ___________ ___________ ___________
Operating (loss) $ (4,588) $ (7,123) $ (30,421) $ (7,123) $ (78,616)
Other expense 451 - 903 - 1,816
___________ ___________ ___________ ___________ ___________
Net loss $ (5,039) $ (7,123) $ (31,324) $ (7,123) $ (80,432)
=========== =========== =========== =========== ===========
Net loss per share, basic
and diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
=========== =========== =========== ===========
Average number of shares
of common stock outstanding 115,320,000 74,425,385 115,320,000 65,337,692
=========== =========== =========== ===========
See Accompanying Consolidated Notes to Financial Statements.
F-2
DOMAIN REGISTRATION, CORP.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF STOCKHOLDERS' DEFICIT
Accumulated
(Deficit) Accumulated
Common Stock Additional During Other
__________________________ Paid-In Development Comprehensive
Shares Amount Capital Stage Income Total
___________ ________ _________ __________ _____________ __________
June 15, 1998, issue common stock 56,250,000 $ 56,250 $ (55,800) $ - $ - $ 450
Net loss, December 31, 1999
___________ ________ _________ _________ _________ __________
Balance, December 31, 1999 56,250,000 $ 56,250 $ (55,800) $ - $ - $ 450
Net loss, December 31, 2000
___________ ________ _________ _________ _________ __________
Balance, December 31, 2000 56,250,000 $ 56,250 $ (55,800) $ - $ - $ 450
Net loss, December 31, 2001
___________ ________ _________ _________ _________ __________
Balance, December 31, 2001 56,250,000 $ 56,250 $ (55,800) $ - $ - $ 450
Net loss, December 31, 2002
___________ ________ _________ _________ _________ __________
Balance, December 31, 2002 56,250,000 $ 56,250 $ (55,800) $ - $ - $ 450
Net loss, December 31, 2003
___________ ________ _________ _________ _________ __________
Balance, December 31, 2003 56,250,000 $ 56,250 $ (55,800) $ - $ - $ 450
Issuance of common stock 59,070,000 59,070 (58,598) 472
June 14, 2004 forward stock split
5000:1
Capital contribution 5,000 5,000
Foreign currency translation
adjustments (2,554) (2,554)
Net loss December 31, 2004 (49,108) (49,108)
___________ ________ _________ _________ _________ __________
Balance, December 31, 2004 115,320,000 $115,320 $(109,398) $ (49,108) $ (2,554) $ (45,740)
Foreign currency translation
adjustments 660 660
Net loss six month period
ended June 30, 2005 (31,324) (31,324)
___________ ________ _________ _________ _________ __________
Balance, June 30, 2005 115,320,000 $115,320 $(109,398) $ (80,432) $ (1,894) $ (76,404)
=========== ======== ========= ========= ========= ==========
See Accompanying Consolidated Notes to Financial Statements.
F-3
MADISON EXPLORATIONS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
June 15, 1998
Six months ended (inception) to
_______________________________ (inception) to
June 30, 2005 June 30, 2004 June 30, 2005
____________ _____________ ______________
Cash Flows From
Operating Activities
Net loss $(31,324) $ (7,123) $ (80,432)
Adjustments to reconcile net loss
to cash used in operating activities:
Changes in assets and liabilities
(Increase) in advances to consultant - (3,748) -
Increase (decrease) in accounts payable
and accruals (5,051) 403 876
Increase in deferred revenue - - 44,000
________ _________ _________
Net cash used in
operating activities $(36,375) $ (10,468) $ (35,556)
________ _________ _________
Cash Flows From
Investing Activities
Net cash provided used in
investing activities $ - $ - $ -
________ _________ _________
Cash Flows From
Financing Activities
Issuance of common stock $ - $ 472 $ 922
Capital contribution - 5,000 5,000
Officer loans and advances (781) 24,326 25,873
Loan from affiliate 25,000 - 25,000
________ _________ _________
Net cash provided by
financing activities $ 24,219 $ 29,798 $ 56,795
________ _________ _________
Effect of exchange rate changes on cash and
cash equivalents $ 660 $ - $ (1,894)
Net increase (decrease)
in cash $(11,496) $ 19,330 $ 19,345
Cash, beginning of period 30,841 450 -
________ _________ _________
Cash, end of period $ 19,345 $ 19,780 $ 19,345
======== ========= =========
See Accompanying Consolidated Notes to Financial Statements.
F-4
MADISON EXPLORATIONS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
The accompanying unaudited Consolidated Financial Statements 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-QSB. 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 consolidated financial statements included in the Annual
Report on Form 10-SB of Madison Explorations, Inc. for the year ended December
31, 2004. When used in these notes, the terms "Company," "we," "us" or "our"
mean Madison Explorations, Inc. 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 month
periods ended June 30, 2005 are not necessarily indicative of the results that
may be expected for the year ending December 31, 2005.
NOTE 2. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
PRINCIPLES OF CONSOLIDATION - The consolidated financial statements include the
accounts of the Company and its subsidiary. All significant intercompany
balances and transactions have been eliminated.
ESTIMATES
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
GOING CONCERN
The accompanying financial statements have been prepared assuming the Company
will continue as a going concern. These financial statements show that Madison
Explorations, Inc. had a substantial working capital deficiency and that it has
suffered losses since inception. Management believes that the Company will still
need additional financing of approximately $2,000,000 to continue to operate as
planned during the twelve-month period subsequent to June 30, 2005. These
conditions raise substantial doubt about the Company's ability to continue as a
going concern. These financial statements have been prepared on the basis of
generally accepted accounting principles as applicable to a going concern,
however the future of Madison Explorations, Inc. will depend upon the company's
ability to obtain adequate financing, successfully resolve any outstanding
contingencies and attain profitable operations. Although the successful
resolution of these uncertainties is not assured, management is of the opinion
that current negotiations for financing and ultimate satisfactory settlement of
any contingencies will allow the company to continue its operations.
F-5
MADISON EXPLORATIONS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
NOTE 2. NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Management plans to obtain such financing through private and public offerings
of debt and equity securities. However management cannot assure that the Company
will be able to obtain any or all of the additional financing it will need to
continue to operate through at least March 31, 2006 or that, ultimately, it will
be able to generate any profitable commercial mining operations. If the Company
is unable to obtain the required financing, it may have to curtail or terminate
its operations and liquidate its remaining assets and liabilities.
The accompanying financial statements do not include any adjustments related to
the recoverability and classifications of assets or the amounts and
classification of liabilities that might be necessary should the Company be
unable to continue its operations as a going concern.
MINING COSTS
Exploration and evaluation costs are expensed as incurred. Management's decision
to develop or mine a property will be based on an assessment of the viability of
the property and the availability of financing. The Company will capitalize
mining exploration and other related costs attributable to reserves in the event
that a definitive feasibility study establishes proven and probable reserves.
Capitalized mining costs will be expensed using the unit of production method
and will also be subject to an impairment assessment.
NOTE 3. ACCOUNTING PRONOUNCEMENTS
RECENT ACCOUNTING PRONOUNCEMENTS
In November 2004, the FASB issued SFAS No. 151, "Inventory Costs, an amendment
of Accounting Research Bulletin No. 43, Chapter 4" ("SFAS No. 151"). SFAS No.
151 requires that abnormal amounts of idle facility expense, freight, handling
costs and wasted materials (spoilage) be recorded as current period charges and
that the allocation of fixed production overheads to inventory be based on the
normal capacity of the production facilities. SFAS No. 151 becomes effective for
our Company on January 1, 2006. The Company does not believe that the adoption
of SFAS No. 151 will have a material impact on our consolidated financial
statements.
In December 2004, the FASB issued SFAS No. 123 (revised 2004), "Share-Based
Payment." SFAS No. 123R replaced SFAS No. 123 and superseded Accounting
Principles Board Opinion No. 25. SFAS No. 123R will require compensation costs
related to share-based payment transactions to be recognized in the financial
statements. The effective date of SFAS No. 123R is the first reporting period
beginning after June 15, 2005. The adoption of SFAS No. 123 (revised 2004)
should not have a significant impact on the Company's financial position or
results of operations until such time the Company has share-based payments. The
Company will adopt the provisions of SFAS No. 123R at that time.
In December 2004, the FASB issued SFAS No. 153, "Exchanges of Nonmonetary
Assets, an amendment of APB Opinion No. 29" ("SFAS No. 153"). SFAS No. 153 is
based on the principle that exchanges of nonmonetary assets should be measured
based on the fair value of the assets exchanged. APB Opinion No. 29, "Accounting
F-6
MADISON EXPLORATIONS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
NOTE 3. ACCOUNTING PRONOUNCEMENTS (CONTINUED)
for Nonmonetary Transactions," provided an exception to its basic measurement
principle (fair value) for exchanges of similar productive assets. Under APB
Opinion No. 29, an exchange of a productive asset for a similar productive asset
was based on the recorded amount of the asset relinquished. SFAS No. 153
eliminates this exception and replaces it with an exception of exchanges of
nonmonetary assets that do not have commercial substance. SFAS No. 153 became
effective for our Company as of July 1, 2005. The Company will apply the
requirements of SFAS No. 153 on any future nonmonetary exchange transactions.
In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections, a replacement of APB No. 20 and FASB Statement No. 3" ("SFAS No.
154"). SFAS No. 154 requires retrospective application to prior periods'
financial statements of a voluntary change in accounting principle unless it is
impracticable. APB Opinion No. 20 "Accounting Changes," previously required that
most voluntary changes in accounting principle be recognized by including in net
income of the period of the change the cumulative effect of changing to the new
accounting principle. This statement is effective for our Company as of January
1, 2006. The Company does not believe that the adoption of SFAS No. 154 will
have a material impact on our consolidated financial statements.
NOTE 4. STOCKHOLDERS' EQUITY
NET LOSS PER COMMON SHARE
Net loss per share is calculated in accordance with SFAS No. 128, "EARNINGS PER
SHARE." The weighted-average number of common shares outstanding during each
period is used to compute basic loss per share. Diluted loss per share is
computed using the weighted averaged number of shares and dilutive potential
common shares outstanding. Dilutive potential common shares are additional
common shares assumed to be exercised.
The Company has no warrants or options outstanding at June 30, 2005 and December
31, 2004.
F-7
MADISON EXPLORATIONS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
NOTE 5. RELATED PARTY TRANSACTIONS
The officers of the Company have advanced funds to the Company to continue
ongoing operations. On June 25, 2004, two officers executed demand notes at 5%
interest for $15,000 in CAD ($12,479 USD) each. Also, funds were advanced to the
Company to form its subsidiary. A total of $147 in US dollars was advanced for
this purpose. Since all funds advanced are due on demand, this amount has been
classified as a liability in the accompanying financial statements. The officers
of the Company also submit expense reports on a regular basis of expenses
incurred on behalf of the Company in the normal performance of their duties.
These payable to the officers for unreimbursed expenses totaled $0 and $1,091 in
Canadian funds at June 30, 2005 and December 31, 2004, respectively.
For the six months ended June 30, 2005 and 2004, exploration and development
expenses were paid to Montgomery Consultants, Ltd., a related party controlled
by a director of the Company, of $2,984 and $0, respectively.
For the year ended December 31, 2004, $643 in interest was accrued on the notes
payable. As of June 30, 2005, the officer advances in USD was $25,873.
A Company affiliated through common ownership advanced funds of $25,000 for
working capital. The advance is non-interest bearing, due on demand.
NOTE 6. COMPREHENSIVE INCOME
Accumulated other comprehensive income consists of the following:
June 30, 2005 Dec. 31, 2004
_____________ _____________
Foreign currency translation adjustment $ (1,894) $ (2,554)
======== ========
The components of other comprehensive income for the six-month period ended June
30, 2005 and the year ended December 31, 2004:
June 30, 2005 Dec. 31, 2004 Inception to date
_____________ _____________ _________________
Foreign currency translation adjustment $ 660 $ (2,554) $(1,894)
======== ======== =======
NOTE 7. INCOME TAXES
We did not provide any current or deferred Canadian federal income tax provision
or benefit for any of the periods presented because we have experienced
operating losses since inception. We provided a full valuation allowance on the
net deferred tax asset, consisting of net operating loss carryforwards, because
management has determined that it is more likely than not that we will not earn
income sufficient to realize the deferred tax assets during the carryforward
period.
F-8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The discussion contained herein contains "forward-looking statements" that
involve risk and uncertainties. These statements may be identified by the use of
terminology such as "believes," "expects," "may," "should" or anticipates" or
expressing this terminology negatively or similar expressions or by discussions
of strategy. The cautionary statements made in this Form 10QSB forward-looking
statements wherever they appear in this Form 10QSB. Our actual results could
differ materially from those discussed in this Form 10QSB.
Generally.
Madison Explorations, Inc. (sometimes the "Company") was incorporated on July
15, 1998 under the laws of the State of Nevada to engage in any lawful corporate
activity.
We are currently engaged in the business of diamond exploration in Southern
Saskatchewan, Canada. Southern Saskatchewan has been explored for diamonds since
at least 1963 by other exploration companies with limited success. Other than
conducting some initial exploration work on our "Scout Lake" property in 2004 &
2005 and selling a 20% interest in our "Bulls Eye" property, we have conducted
no operations to date and we do not expect to receive any revenues for at least
two years. During these two years, we plan to concentrate our efforts on
exploration and data gathering. Because the Company is an exploration stage
company, there is no assurance that a commercially viable mineral deposit exists
on any of our properties. Further exploration will be required before the
economic and legal feasibility of developing the properties can be determined.
At the present time, we do not hold any interest in a mineral property that is
in production. The Company's viability and potential success lie in our ability
to develop, exploit and generate revenue from our interests. There can be no
-5-
assurance that such revenues will be obtained. The exploration of mineral
deposits involves significant financial risks over a long period of time which
even a combination of careful evaluations, experience and knowledge may not
eliminate. It is impossible to ensure that our current or proposed exploration
programs on the exploration claims will be profitable or successful. The
inability of the Company to locate a viable diamond deposit on the properties
will have a material adverse effect on its operations and could result in a
total loss of its business.
As of the date hereof, we are deemed to be and can be defined as a "shell"
company, a registrant, other than an asset backed-issuer, that has no or nominal
operations, and either (i) no or nominal assets, (ii) assets consisting solely
of cash and cash equivalents, (iii) assets consisting of any amount of cash and
cash equivalents and nominal other assets.
Financial Condition.
Our auditor's going concern opinion of December 31, 2004 and our notation in the
financial statements indicate that we do not have significant cash or other
material assets and that we are relying on advances from stockholders, officers
and directors to meet limited operating expenses. We do not have sufficient cash
or other material assets nor do we have sufficient operations or an established
source of revenue to cover our operational costs that would allow us to continue
as a going concern. Our financial statements do not include any adjustments
relating to the recoverability and classification of asset carrying amounts and
classification of liabilities that might result should we be unable to continue
as a going concern. We have a loss from inception through December 31, 2004 of
$49,108 and a loss from inception through June 30, 2005 of $80,432. This is an
increase for the six months ended June 30, 2005 of $31,324.
We currently have cash of $19,345 that constitutes our total assets. We have no
other liquid current assets and we have received no revenue from operations.
Liquidity and Operational Results.
We have had no revenues from December 31, 2004 to June 30, 2005.
-6-
We have limited assets and liquidity. As of December 31, 2004, we had cash of
approximately $30,841. As of June 30, 2005, we had cash of approximately
$19,345.
As of December 31, 2004, we had total liabilities of $76,581 and we had a
negative net worth of $45,740. As of June 30, 2005, we had total liabilities of
$95,749 and we had a negative net worth of $76,404. Our accounts payable as of
December 31, 2004 were $5,927 and as of June 30, 2005 were $876.
Our loss from inception through December 31, 2004 was $49,108 and our loss from
inception through June 30, 2005 was $80,432 or an increase for the six months
then ended of $31,324.
During the fiscal year ending December 31, 2004, we incurred expenses of
$49,108. As of June 30, 2005, our total losses for the period ending June 30,
2005 were $31,324.
We had officer's advances of $26,654 from inception to December 31, 2004 and of
$25,873 to June 30, 2005. This is a decrease of $781.
We are dependent upon our officers to meet any de minimis costs that we may
incur. Kevin M. Stunder and Joel Haskins, officers and directors of the Company,
have agreed to provide the necessary funds, for us to comply with the 1934 Act;
provided that he is an officer and director of the Company when the obligation
is incurred. We currently owe Kevin Stunder and Joel Haskins the sum of $12,936
each.
Plan of Operation.
We were incorporated in June of 1998 under the name of "Madison-Taylor General
Contractors, Inc." and we intended to engage as a general contractor for
constructing temporary buildings at exploratory mining locations. We were unable
to implement our business and remained inactive from 1998 until 2004. We
commenced operations under our current name, Madison Explorations Inc., in April
of 2004. After implementing our current plan of operation, we have relied on
-7-
advances and contributions of capital of approximately $53,925 from our
stockholders, and proceeds of approximately $44,000 from the sale of a 20%
interest in one of the Company's claims (Bulls Eye) to support its limited
operations. As of December 31, 2004, we had approximately $30,841 of cash. We
will need additional equity or debt financing of up to $2,000,000 that we plan
to use for the second phase of its exploration program to commence in 2005 or
2006.
ITEM 3. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK.
We have not considered nor conducted any research concerning qualitative and
quantitative market risk.
-8-
ITEM 4. EVALUATION OF DISCLOSURE ON CONTROLS AND PROCEDURES.
We carried out an evaluation, under the supervision and with the participation
of our management, including our Chief Executive Officer and Chief Financial
Officer, of the effectiveness of our disclosure controls and procedures, as
defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934
as of the end of the period covered by this report. Based on that evaluation,
our Chief Executive Officer and Chief Financial Officer have concluded that our
disclosure controls and procedures as of December 31, 2005 were effective at a
level that provides reasonable assurance to ensure that information required to
be disclosed by us in reports that we file or submit under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commission's rules and
forms.
There have been no changes in our internal controls over financial reporting or
in other factors that could materially affect, or are reasonably likely to
affect, our internal controls over financial reporting during the quarter ended
December 31, 2005.
PART II
OTHER INFORMATION
Item 1 - Legal Proceedings .................................................None
Item 2 - Changes in the Rights of the Company's
Security Holders ..................................................None
Item 3 - Defaults by the Company on its
Senior Securities .................................................None
Item 4 - Submission of Matter to Vote of Security
Holders ...........................................................None
ITEM 5. OTHER INFORMATION.
Board Meeting.
Our board held one meeting during the current quarter, which was a special
meeting by written consent.
Audit Committee.
Our board of directors has not established an audit committee. In addition, we
do not have any other compensation or executive or similar committees. We will
not, in all likelihood, establish an audit committee until such time as the
Company generates a positive cash flow of which there can be no assurance. We
recognize that an audit committee, when established, will play a critical role
-9-
in our financial reporting system by overseeing and monitoring management's and
the independent auditors' participation in the financial reporting process. At
such time as we establish an audit committee, its additional disclosures with
our auditors and management may promote investor confidence in the integrity of
the financial reporting process.
Until such time as an audit committee has been established, the full board of
directors will undertake those tasks normally associated with an audit committee
to include, but not by way of limitation, the (i) review and discussion of the
audited financial statements with management, and (ii) discussions with the
independent auditors the matters required to be discussed by the Statement On
Auditing Standards No. 61 and No. 90, as may be modified or supplemented.
Our board of directors consistent with our intent to enhance the reliability and
credibility of our financial statements, have submitted the financial statements
included in this Form 10-QSB to our independent auditor prior to the filing of
this report.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
There were no reports on Form 8-K filed during the quarter for which this report
is filed. The following exhibits are filed with this report:
31.1 Certification of Chief Executive Officer.
31.2 Certification of Chief Financial Officer.
32.1 Section 906 Certification of Chief Executive Office.
32.2 Section 906 Certification of Chief Financial Officer.
-10-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: March 8, 2006 MADISON EXPLORATION, INC.
By: /s/ KEVIN M. STUNDER
_________________________________
Kevin M. Stunder
Chief Executive Officer and
Director
By: /s/ JOEL HASKINS
_________________________________
Joel Haskins
Chief Financial Officer and
Director
-11-