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EXCEL - IDEA: XBRL DOCUMENT - Vampt America, Inc.Financial_Report.xls
EX-32.1 - SECTION 906 CERTIFICATION UNDER SARBANES-OXLEY ACT OF 2002 OF DONALD SHARPE - Vampt America, Inc.exhibit32-1.htm
EX-31.1 - SECTION 302 CERTIFICATION UNDER SARBANES-OXLEY ACT OF 2002 OF DONALD SHARPE - Vampt America, Inc.exhibit31-1.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(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, 2011

or

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________________ to ______________________

Commission File Number 333-135037

CORONADO CORP.
(Exact name of registrant as specified in its charter)

Nevada N/A
(State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.)
   
518 17th Street, Suite 1000, Denver, Colorado 80202
(Address of principal executive offices) (Zip Code)

303.623.1440
(Registrant’s telephone number, including area code)

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.
[X] YES     [   ] NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act

Large accelerated filer [   ]   Accelerated filer                 [   ]
Non-accelerated filer   [   ] (Do not check if a smaller reporting company) 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    [X] 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

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.
[   ] YES    [   ] NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 5,000,000 common shares issued and outstanding as of August 12, 2011


PART 1 – FINANCIAL INFORMATION

Item 1.    Financial Statements.

Our unaudited interim consolidated financial statements for the six month period ended June 30, 2011 form part of this quarterly report. They are stated in United States Dollars and are prepared in accordance with United States generally accepted accounting principles.


CORONADO CORP.

(A Development Stage Company)

INTERIM FINANCIAL STATEMENTS

JUNE 30, 2011

(Unaudited)


CORONADO CORP.
(A Development Stage Company)

INDEX TO INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD OF JANUARY 9, 2006 (INCEPTION) TO JUNE 30, 2011

  Page(s)
   
Interim Balance Sheets at June 30, 2011(Unaudited) and December 31, 2010 F-1
   
Interim Statements of Operations for the three and six months ended June 30, 2011 and 2010, and the cumulative totals from January 9, 2006 (Inception) to June 30, 2011 (Unaudited) F-2
   
Interim Statements of Cash Flows for the six months ended June 30, 2011 and 2010, and cumulative totals from January 9, 2006 (Inception) to June 30, 2011 (Unaudited) F-3
   
Notes to Interim Financial Statements (Unaudited) F-4


Coronado Corp
(A Development Stage Company)
Balance Sheets
(Unaudited)

ASSETS    
             
    June 30,     December 31,  
    2011     2010  
             
CURRENT ASSETS            
           Cash and cash equivalents $  5,529   $  157  
TOTAL ASSETS $  5,529   $  157  
             
LIABILITIES AND STOCKHOLDERS' DEFICIT   
             
CURRENT LIABILITIES            
           Accounts payable and accrued liabilities   23,278     19,553  
           Due to related parties   441,075     421,075  
           Accrued interest to related parties   59,395     38,604  
                      Total current liabilities   523,748     479,232  
             
STOCKHOLDERS' DEFICIT            
   Common stock            
           Authorized: 
               100,000,000 common shares, $0.001 par value 
           Issued and outstanding shares: 
               5,000,000
  5,000     5,000  
           Additional paid-in capital   109,454     109,454  
           Deficit accumulated during the development stage   (632,673 )   (593,529 )
 Total Stockholders’ Deficit   (518,219 )   (479,075 )
             
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $  5,529   $  157  

The accompanying notes are an integral part of these unaudited financial statements.

F-1


Coronado Corp.
(A Development Stage Company)
Statements of Operations
(Unaudited)

    Three Months     Three Months     Six Months     Six Months     January 9, 2006  
    Ended     Ended     Ended     Ended     (Inception)  
    June 30,     June 30,     June 30,     June 30,     to June 30,  
    2011     2010     2011     2010     2011  
                               
                               
                               
EXPENSES:                              
         Professional fees $  3,772   $  10,729   $  12,038   $  47,329 $     183,845  
         Depreciation and amortization   -     -     -     -     22,170  
                               
         General and administrative   1,900     2,555     6,340     2,765     44,203  
Total operating expenses   5,672     13,284     18,378     50,094     250,218  
                               
Other Expense (Income)                              
         Gain on forgiveness of debt   -     -     -     -     (5,000 )
         Interest expense related parties   10,471     9,090     20,791     17,309     59,395  
         Loss (gain) on foreign exchange   (532 )   (42 )   (25 )   (286 )   (25 )
         Loss on exploration advance   -     -     -     -     325,000  
         Loss on disposition of
         subsidiary
  -     -     -     -     3,085  
                               
                               
Net Loss $  (15,611 ) $  (22,332 ) $  (39,144 ) $  (67,117 ) $   (632,673 )
                               
         Basic and diluted loss per 
         common share
$  (0.00 ) $  (0.00 ) $  (0.01 ) $  (0.01 )    
                               
         Weighted average number of 
         common shares outstanding
  5,000,000     5,175,000     5,000,000     5,175,000      

The accompanying notes are an integral part of these unaudited financial statements.

F-2


Coronado Corp.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)

    Six Months     Six Months     January 9, 2006  
    Ended     Ended     (Inception)  
    June 30,     June 30,     to June 30,  
    2011     2010     2011  
                   
OPERATING ACTIVITIES                  
         Net Loss $  (39,144 ) $  (67,117 ) $  (632,673 )
                   
         Adjustment to Reconcile Net Loss to Cash Used in Operating Activities:            
               Depreciation and amortization   -     -     22,170  
               Loss on exploration advance   -     -     325,000  
               Loss on disposition of subsidiary   -     -     3,085  
         Changes in Operating Assets and Liabilities:                  
               Increase in accounts payable and accrued liabilities   3,725     18,170     23,279  
               Increase in due to related parties   -     1,500     -  
               Increase in accrued interest to related parties   20,791     17,309     59,395  
         Net cash used in operating activities   (14,628 )   (30,138 )   (199,744 )
INVESTING ACTIVITIES                  
         Leasehold improvements   -     -     (16,243 )
         Machinery and equipment   -     -     (16,935 )
         Goodwill   -     -     (577 )
         Net cash used in investing activities   -     -     (33,755 )
FINANCING ACTIVITIES                  
         Notes payable – related parties   -     -     8,500  
         Promissory notes – related parties   20,000     40,000     122,172  
         Repayments to related party notes   -     -     (6,098 )
         Common stock issued for cash   -     -     114,454  
         Net cash provided by financing activities   20,000     40,000     239,028  
INCREASE IN CASH AND CASH EQUIVALENTS   5,372     9,862     5,529  
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   157     1,345     -  
                   
CASH AND CASH EQUIVALENTS AT END OF PERIOD $  5,529   $  11,207   $  5,529  
Supplemental Cash Flow Disclosures:                  
         Cash paid for:                  
                     Interest expense $  -   $  -   $  -  
                     Income taxes $  -   $  -   $  -  
Non-Cash Financing and Investing Activities:                  
         Exploration advance paid by related parties $  -   $  -   $  (325,000 )
         Notes payable – related parties cancelled on disposition of subsidiary $  -   $  -   $  8,500  

The accompanying notes are an integral part of these unaudited financial statements.

F-3


Coronado Corp.
(A Development Stage Company)
Notes to Interim Financial Statements
(Unaudited)

1.

Basis of Presentation

   

The accompanying unaudited interim financial statements of Coronado Corp. (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for future quarters or for the full year. Notes to the financial statements which substantially duplicate the disclosure contained in the audited financial statements for fiscal 2010 as reported in the Form 10-K have been omitted.

   

Recent Accounting Pronouncements

   

The Company has evaluated all the recent accounting pronouncements through the filing date and believes that none of them will have a material effect on the Company.

   
2.

Going Concern

   

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. As of June 30, 2011, the Company has accumulated losses of $632,673 since inception, has a working capital deficiency of $518,219 and has earned no revenues since inception. The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending December 31, 2011.

   

The ability of the Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. Management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

F-4


Coronado Corp.
(A Development Stage Company)
Notes to Interim Financial Statements
(Unaudited)

3.

Notes Payable – Related Parties

   

As of June 30, 2011 and December 31, 2010, the Company is indebted to a privately held company owned and controlled by the Company’s president in the amount of $162,500, and to another shareholder in the amount of $162,500. The amounts bear 10% annual interest and are unsecured and have no terms of repayment.

   

During the six months ended June 30, 2011 the Company issued promissory notes to its shareholders in the amount of $20,000. As of June 30, 2011, the Company is indebted to shareholders in the amount of $110,000 (December 31, 2010 - $90,000). The amounts bear 10% annual interest, are unsecured and have maturity dates as follows: $40,000 matured on December 31, 2010, $50,000 matured on June 30, 2011, $5,000 matures on January 13, 2012 and $15,000 matures on April 18, 2012. The notes which mature on December 31, 2010 and June 30, 2011 are now payable upon demand subject to interest continuing to accrue, while a project of merit continues to be pursued, and/or an alternate liquidation plan is found for the company.

   

As of June 30, 2011 and December 31, 2010, the Company is indebted to various shareholders in the amount of $6,075, net of repayments during the period. The amounts are unsecured, non-interest bearing and have no terms of repayment.

   
4.

Contingencies and commitments

   

On March 1, 2010 the Company engaged FIG Partners LLC of Atlanta Georgia (FIG) to provide advisory services and act on a best efforts basis as the Company’s exclusive placement agent in connection with a debt and equity financing relating to an Alaska oil and gas project. A non-refundable retainer of $12,500 was advanced on behalf of the Company by D. Sharpe Management Inc., a privately held company owned and controlled by the Company’s president. The engagement agreement provided for a further $12,500 to be advanced on March 15, 2010 but this amount will not be paid. The Company has agreed to pay FIG a fee equal to 6% of the principal value of securities sold by the Company, plus five year term warrants to purchase common stock in the Company equal to 6% of the principal value of the equity offering, or, in the event of non-equity securities being issued by the Company, five year term warrants with a strike price equal to the 30-day Volume Weighted Average Price on the day of closing the offering, or $0.50, whichever is greater. As of the date of these financial statements, no warrants have been issued as no successful financing has been obtained. Retainer amounts advanced to FIG will be applied against the placement fee due upon completion of any capital raised for the Company by FIG.

F-5


Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled “Risk Factors”, that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

As used in this current report and unless otherwise indicated, the terms "we", "us", "our", “our company” and "Coronado" mean Coronado Corp., unless otherwise indicated.

General Overview
We were incorporated in the State of Nevada on January 9, 2006. Our principal place of business and corporate offices are located at 518 17th Street, Suite 1000, Denver Colorado, and our telephone number is 303 623 1440. Management has chosen to research opportunities in different industry sectors with a focus on the resource sector. The anticipation is this research will lead to an acquisition in some form or manner. Our fiscal year end is December 31st. Our authorized capital consists of 100,000,000 shares of common stock, $0.001 par value and 200,000,000 shares of preferred stock, $0.001 par value.

On December 16, 2009, our company entered into a Letter Agreement with an oil and gas operator, pursuant to which we would participate for a 15% working interest in a 26,000 acre unit project in Alaska, which was a farm-out from BP Exploration (Alaska) Inc. Consideration for the assignment of the interest in the project would primarily consist of our company funding certain costs in regards to a 2009-2010 winter drilling program and a 15% share of the costs to restart the local processing plant. A deposit of $325,000 pending BP Exploration’s consent to the proposed assignment to Coronado Corp. was posted to secure the Letter Agreement on behalf of the company, funded in equal amounts of $162,500 each by D. Sharpe Management Inc., a privately held company owned and controlled by our president, and by Michael Bodino, a company shareholder. BP Exploration’s consent to the assignment was granted on January 12, 2010.

Due to the severe timing restrictions involved, we were unable to secure funding as required to participate in the project, and the Letter Agreement and obligations pursuant to the agreement expired on January 15, 2010, thus terminating the agreement with the oil and gas operator. With the expiry of the Letter Agreement our company has expensed the $325,000 deposit. Management continues to research other potential resource opportunities.

Our company has sustained losses since inception, January 9, 2006, to June 30, 2011, of $632,673 and relies solely upon the sale of securities and loans from corporate officers and directors for funding.

3


Our Current Business

We are engaged in the business of exploration and development of oil and gas properties. Over the next twelve months we intend to secure a project of merit within the resource sector and commence with further development of the project.

Cash Requirements

Our plan over the next 12 months is to research projects of merit principally within the resource sector. We anticipate that this research will ultimately lead to a potential acquisition in some form or manner. In order to carry out our plans we will require the matching funding to cover acquisition costs, working capital, and any other related or ongoing expenditures until sufficient revenue is generated to sustain operations.

On December 16, 2009, our company entered into a Letter Agreement with an oil and gas operator, pursuant to which we would participate for a 15% working interest in a 26,000 acre unit project in Alaska, which was a farm-out from BP Exploration (Alaska) Inc. Consideration for the assignment of the interest in the project would primarily consist of our company funding certain costs in regards to a 2009-2010 winter drilling program and a 15% share of the costs to restart the local processing plant. A deposit of $325,000 pending BP Exploration’s consent to the proposed assignment to Coronado Corp. was posted to secure the Letter Agreement on behalf of our company, funded in equal amounts of $162,500 each by D. Sharpe Management Inc., a privately held company owned and controlled by our president, and by Michael Bodino, a company shareholder. BP Exploration’s consent to the assignment was granted on January 12, 2010.

Due to the severe timing restrictions involved, we were unable to secure funding as required to participate in the project, and the Letter Agreement and obligations pursuant to the agreement expired on January 15, 2010, thus terminating the agreement with the oil and gas operator. Our company continues to pursue this opportunity with the operator in attempts to secure some manner of participation in their Alaska project. With the expiry of the Letter Agreement and some doubt of further negotiations ending favorably, our company has expensed the $325,000 deposit and recorded it within the period ending December 31, 2009.

On March 1, 2010 we engaged FIG Partners LLC of Atlanta Georgia (FIG) to provide advisory services and act on a best efforts basis as our company’s exclusive placement agent in connection with a debt/equity financing relating to the Alaska oil and gas project described above. A non-refundable retainer of $12,500 was advanced on behalf of our company by D. Sharpe Management Inc., a privately held company owned and controlled by our president. The engagement agreement provided for a further $12,500 to be advanced on March 15, 2010 but this has not yet been paid. Our company has agreed to pay FIG a fee equal to 6% of the principal value of securities sold by our company, plus five year term warrants to purchase common stock in our company equal to 6% of the principal value of the equity offering, or, in the event of non-equity securities being issued by our company, five year term warrants with a strike price equal to the 30-day Volume Weighted Average Price on the day of closing the offering, or $0.50, whichever is greater. As of the date of this report, no warrants have been issued as no successful financing has been obtained. Retainer amounts advanced to FIG will be applied against the placement fee due upon completion of any capital raised for our company by FIG. If we are unsuccessful with this Alaska project we intend to research other potential resource opportunities elsewhere.

In order to proceed with our plans and to fund overhead and administration expenses, as of June 30, 2011, shareholders of our company advanced $110,000 in loans bearing 10% annual interest, which have been secured by promissory notes.

If we are unable to generate enough revenue to stay in business or run out of cash, we will have to find alternative sources for money, be it a public offering, a private placement of securities or loans from our officers or others, and/or other sources or methods of financing. Equity financing could result in additional dilution to existing shareholders. If we are unable to meet our needs for cash, then we may be unable to continue, develop, or expand our activities or operations.

4


While the officers and directors have generally indicated a willingness to provide services and financial contributions if necessary, there are presently no agreements, arrangements, commitments, or specific understandings, either verbally or in writing, between the officers and directors and Coronado Corp.

If we are unable to pay for our expenses because we do not have enough money, we will cease operations until we raise more money. If we cannot or do not raise more money, we will be forced to cease operations.

We have no present plans to purchase or sell any plant or significant equipment. We also have no present plans to add employees although we may do so in the future if we engage in any merger or acquisition transactions.

Coronado Corp. has never declared bankruptcy, been in receivership, or been involved in any kind of legal proceeding.

Assuming maintenance of our current operations and the investigation of possible acquisitions, over the next twelve months we expect to expend funds as follows:

Estimated Net Expenditures During the Next Twelve Months

    $  
General, Administrative, and Corporate Expenses   175,000  
Contingencies and Other   25,000  
Total   200,000  

We have suffered recurring losses from operations. The continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed.

The continuation of our business is dependent upon obtaining further financing, a successful program of exploration and/or development, and, finally, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

There are no assurances that we will be able to obtain further funds required for our continued operations. As noted herein, we are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will be unable to conduct our operations as planned, and we will not be able to meet our other obligations as they become due. In such event, we will be forced to scale down or perhaps even cease our operations.

Employees

Currently our only employees are our directors and officers. Our officers and directors are donating their time to the development of our company and intend to do whatever work is necessary in order to bring us to the point of being able to implement our business plan.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

5


Critical Accounting Policies

The discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

Going Concern

As of June 30, 2011, our company has accumulated losses of $632,673 since inception, has a working capital deficiency of $518,219 and has earned no revenues since inception. Our company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the next twelve months ending June 30, 2012. The ability of our company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings. These factors, among others, raise substantial doubt about our company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Results of Operations – Three Months Ended June 30, 2011 and Three Months Ended June 30, 2010

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended June 30, 2011, which are included herein.

Our operating results for the three months ended June 30, 2011, for the three months ended June 30, 2010 and the changes between those periods for the respective items are summarized as follows:










Three Months
Ended
June 30,
2011





Three Months
Ended
June 30,
2010




Change Between
Three Month Period
Ended
June 30 2011 and
June 30, 2010
Revenue  -  $  -  $  -
General and administrative   1,900   2,555   (655)
Interest Expense   10,471   9,090   1,381
Professional fees   3,772   10,729   (6,957)
Other expenses   (532)   (42)   (490)
Net Loss  $ (15,611)   (22,332)   (6,721)

Our accumulated losses increased to $632,673 as of June 30, 2011. Our financial statements report a net loss of $15,611 for the three month period ended June 30, 2011 compared to a net loss of $22,332 for the three month period ended June 30, 2010. Our losses have decreased primarily as a result of a decrease in professional fees of $6,957 for the three month period ending June 30, 2011.

6


Results of Operations – Six Months Ended June 30, 2011 and Six Months Ended June 30, 2010

The following summary of our results of operations should be read in conjunction with our financial statements for the quarter ended June 30, 2011, which are included herein.

Our operating results for the six months ended June 30, 2011, for the six months ended June 30, 2010 and the changes between those periods for the respective items are summarized as follows:










Six Months
Ended
June 30,
2011





Six Months
Ended
June 30,
2010




Change Between
Six Month Period
Ended
June 30, 2011 and
June 30, 2010
Revenue -  $ - -
             
General and administrative   6,340   2,765   3,576
Interest Expense   20,791   17,309   3,482
Professional fees   12,038   47,329   (35,291)
Other expenses   (25)   (286)   261
Net Loss  $  (39,144)   (67,117)   27,972

Our accumulated losses increased to $632,673 as of June 30, 2011. Our financial statements report a net loss of $39,144 for the six month period ended June 30, 2011 compared to a net loss of $67,117 for the six month period ended June 30, 2010. Our losses have decreased primarily as a result of a decrease in professional fees of $35,291 for the six month period ending June 30, 2011

Our total liabilities as of June 30, 2011 were $523,748 as compared to total liabilities of $479,232 as of December 31, 2010. The increase was due to increases in accounts payable and accrued liabilities and amounts due to related parties, including accrued interest to related parties.

Liquidity and Financial Condition

Working Deficit

    June 30,     December 31,  
    2011     2010  
Current assets $  5,529     157  
Current liabilities   (523,748 )   (479,232 )
Working deficit $  (518,219 )   (479,075 )

Cash Flows

    June     June 30,  
    30, 2011     2010  
Cash flows used in operating activities $  (14,628 )   (30,138 )
             
Cash flows provided by financing activities   20,000     40,000  
             
Net increase in cash during period $  5,372     9,862  

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Operating Activities

Net cash used by operating activities was $14,628 in the six months ended June 30, 2011 compared with net cash used in operating activities of $30,138 in the six months ended June 30, 2010. The decrease in use of cash of $15,510 in operating activities is mainly attributable to the decrease in professional fees during the six month period ended June 30, 2011, offset by an increase in interest expense and general and administrative costs.

Investing Activities

There were no investing activities in the six months ended June 30, 2011 nor in the six months ended June 30, 2010.

Financing Activities

Net cash provided by financing activities was $20,000 in the six months ended June 30, 2011 compared to $40,000 provided by financing activities in the six months ended June 30, 2010, due to receipt of shareholder loans during both the six month periods ended June 30, 2011 and 2010.

Item 4.   Controls and Procedures.

Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to our management, including our president (who is acting as our principal executive officer, principal financial officer and principal accounting officer) to allow for timely decisions regarding required disclosure.

As of June 30, 2011, the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (who is acting as our principal executive officer, principal financial officer and principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president (who is acting as our principal executive officer, principal financial officer and principal accounting officer) believes that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance’s with US generally accepted accounting principles.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal controls over financial reporting that occurred during our quarter ended June 30, 2011 that have materially or are reasonably likely to materially affect, our internal controls over financial reporting.

PART II

OTHER INFORMATION

Item 1.   Legal Proceedings

We know of no material, existing or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our company.

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Item 1A.  Risk Factors

Our business operations are subject to a number of risks and uncertainties, including, but not limited to those set forth below:

We are a start-up company with a lack of operating history and profitability. Our company has incurred losses since inception, and we expect those losses to continue in the future. As a result, we may have to suspend or cease operations.

We were incorporated on January 9, 2006, and we have not started any business operations nor realized any revenues. We have no operating history upon which an evaluation of our future success or failure can be made. As a result, it is possible that we may not generate any revenues in the future. Since inception, to June 30, 2011, our company has incurred a net loss of $632,673.

In order to generate revenue, we are dependent on our ability to find a project within our new focus area, the resource sector, and at some point develop this project to the point of production and sales.

Based upon current plans, we expect operating losses in future periods. If we do not generate enough future revenues to cover our expenses before the business has become profitable, we would have to suspend or cease operations and you could lose your investment.

Because our company. is a small company and does not have much capital, if we are unable to raise additional funds to meet our needs we may have to scale back our operations, which could result in a loss of your investment.

Because we are a small company with limited financial resources, we may be unable to sufficiently finance our operations until we generate revenues sufficient to cover our expenses. If that were the case, we would have to raise more capital to finance our operations in order for the business to be successful.

If we are unable to raise the capital required to finance our operations, then we would be unable to generate revenues sufficient to maintain our business and this could result in a loss of your investment.

Because Mr. Sharpe and Mr. Kellison have other outside business activities, they can only dedicate a limited amount of their time to our company’s operations. This could result in periodic interruptions or suspensions of the business plan.

Because our company officers, Mr. Sharpe and Mr. Kellison have other outside business interests, they will only be able to devote a limited amount of their time to our operations. Our company’s operations may occur at times which are inconvenient to Mr. Sharpe and Mr. Kellison, which could result in the development of our plan being periodically interrupted or suspended.

If our officers and directors resign or die without having found replacements, our operations may be suspended or cease altogether. Should that occur, it could result in a loss of your investment.

We have two officers and three directors and we are entirely dependent upon them in order to conduct our operations. If they should resign or die, there may be no one to run Coronado Corp. Our company has no Key Man insurance. If such an event were to take place and we were unable to find other persons to run our company, our operations could be suspended or cease entirely, and this could result in the loss of your investment.

We will incur ongoing costs and expenses for SEC reporting and compliance, without revenue we may not be able to remain in compliance, making it difficult for investors to sell their shares, if at all.

Our common shares are quoted on the OTC Electronic Bulletin Board. To maintain eligibility for quotation on the OTCBB, issuers must remain current in their filings with the SEC. Market Makers are not permitted to quote a security whose issuer does not meet this filing requirement. Securities already quoted on the OTCBB that become delinquent in their required filings will be removed following a 30 or 60 day grace period if they do not make their required filing during that time. In order for us to remain in compliance we will require future revenues to cover the cost of these filings, which could comprise a substantial portion of our available cash resources. If we are unable to generate sufficient revenues to remain in compliance it may be difficult for you to resell any shares you may purchase, if at all.

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Trading of our stock may be restricted by the SEC's "Penny Stock" regulations, which may limit a stockholder's ability to buy and sell our stock.

The U.S. Securities and Exchange Commission has adopted regulations which generally define "penny stock" to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors." The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC, which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in and limit the marketability of, our common stock.

The Financial Industry Regulatory Authority, or FINRA, has adopted sales practice requirements which may also limit a stockholder's ability to buy and sell our stock.

In addition to the "penny stock" rules described above, FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and have an adverse effect on the market for our shares.

Trading in our common shares on the OTC Bulletin Board is limited and sporadic making it difficult for our shareholders to sell their shares or liquidate their investments.

Our common shares are currently listed for public trading on the OTC Bulletin Board. The trading price of our common shares has been subject to wide fluctuations. Trading prices of our common shares may fluctuate in response to a number of factors, many of which will be beyond our control. The stock market has generally experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies with no current business operation. There can be no assurance that trading prices and price earnings ratios previously experienced by our common shares will be matched or maintained. These broad market and industry factors may adversely affect the market price of our common shares, regardless of our operating performance.

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In the past, following periods of volatility in the market price of a company's securities, securities class-action litigation has often been instituted. Such litigation, if instituted, could result in substantial costs for us and a diversion of management's attention and resources.

Trends, Risks and Uncertainties

We have sought to identify what we believe to be the most significant risks to our business, but we cannot predict whether, or to what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise. Investors should carefully consider all of such risk factors before making an investment decision with respect to our common stock.

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.   Defaults Upon Senior Securities

None.

Item 4.   [Removed and Reserved]

None.

Item 5.   Other Information

On April 15, 2011 Drew Bonnell resigned as chief financial officer, secretary, treasurer and director of our company.

Item 6.   Exhibits

Exhibit  
Number Description
   
(3)

(i) Articles of Incorporation; and (ii) Bylaws

   
3.1

Articles of Incorporation (incorporated by reference from our Registration Statement on Form SB-2, filed on June 15, 2006).

   
3.2

Bylaws (incorporated by reference from our Registration Statement on Form SB-2, filed on June 15, 2006).

   
(10)

Material Contracts

   
10.1

Letter of Intent with Savant Alaska, LLC, dated December 16, 2009. (incorporated by reference from our Current Report on Form 8-K filed on December 22, 2009)

   
(14)

Code of Ethics

   
14.1

Code of Business Conduct and Ethics (incorporated by reference from our Annual Report on Form 10- KSB filed on June 26, 2007).

   
(31)

Rule 13a-14(a)/15d-14(a) Certifications

   
31.1*

Section 302 Certification under Sarbanes-Oxley Act of 2002 of Donald Sharpe

   
(32)

Section 1350 Certifications

   
32.1*

Section 906 Certification under Sarbanes-Oxley Act of 2002 of Donald Sharpe

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* Filed herewith.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

  CORONADO CORP.
                                           (Registrant)
   
   
Dated: August 15, 2011 /s/ Donald Sharpe
  Donald Sharpe
  President and Director
  (Principal Executive Officer, Principal Financial
  Officer and Principle Accounting Officer)

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