Yukonic International Inc.

(A Development Stage Company)

June 30, 2011

Index

Balance Sheets (Unaudited)

F-1

Statements of Operations and Other Comprehensive Loss (Unaudited)

F-2

Statements of Cash Flows (Unaudited)

F-3

Notes to the Unaudited Financial Statements

F-4

3                

YUKONIC MINERALS CORP.

(An Exploration Stage Company)

 BALANCE SHEETS

Unaudited

June 30, 2011

September 30, 2010

(Audited)

ASSETS

CURRENT ASSETS

Cash

$

521

$

17,457

Total current Assets

521

17,457

TOTAL ASSETS

$

521

$

17,457

LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)

CURRENT  LIABILITIES

Accounts payable and accrued liabilities

$

24,906

$

32,155

Loans from related party

79,232

45,224

TOTAL CURRENT LIABILITIES

$

104,138

$

77,379

STOCKHOLDER'S  EQUITY ( DEFICIT )

Capital stock

Authorized

       75,000,000 shares of common stock, $0.001 par value,

Issued and outstanding

        1,350,000 shares of shares

$

1,350

$

1,350

        Additional Paid in Capital

7,556

3,779

Deficit accumulated during the development stage

(112,523)

(65,051)

TOTAL STOCKHOLDER'S EQUITY/(DEFICIT)

$

(103,617)

$

(59,922)

TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY/(DEFICIT)

$

521

$

17,457

The accompanying notes are an integral part of these financial statements

 F-1               

YUKONIC MINERALS CORP.

(An Exploration Stage Company)

 STATEMENTS OF OPERATIONS

Unaudited

Cumulative results

3 months

3 months

9 months

9 months

from inception

ended

ended

ended

ended

(May 26, 2010) to

June 30, 2011

June 30, 2010

June 30, 2011

June 30, 2010

June 30, 2011

REVENUE

Revenues

$

-    

$

-    

$

-    

$

-    

$

-    

Total Revenues

$

-    

$

-    

$

-    

$

-    

$

-    

EXPENSES

Operating Expenses

   Office and general

$

(16,232)

$

(2,595)

$

(24,395)

$

(2,595)

$

(31,467)

   Professional Fees

(3,100)

(36,750)

(19,300)

(36,750)

(61,455)

Net Operating Loss

$

(19,332)

$

(39,345)

$

(43,695)

$

(39,345)

$

(92,922)

Other Expenses

   Loss on foreign currency exchange

(195)

   Impairment

-    

(15,000)

   Imputed interest

(1,429)

-    

(3,777)

-    

(4,406)

Loss before provision for income taxes

$

(20,761)

$

(39,345)

$

(47,472)

$

(39,345)

$

(112,523)

Provision for income taxes

-    

-    

-    

-    

-    

NET LOSS

$

(20,761)

$

(39,345)

$

(47,472)

$

(39,345)

$

(112,523)

BASIC AND DILUTED LOSS PER COMMON SHARE

$

(0.02)

$

(0.04)    

$

(0.04)

$

(0.04)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

1,350,000

1,000,000

1,350,000

1,000,000

The accompanying notes are an integral part of these financial statements

F-2                

YUKONIC MINERALS CORP.

(An Exploration Stage Company)

 STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

From inception (May 26, 2010) to June 30, 2011

Unaudited

Deficit

Common Stock

accumulated

Additional

during the

Number of

Paid-in

development

shares

Amount

Capital

stage

Total

Balance at inception - May 26, 2010

-    

-    

-    

-    

-    

Common stock issued for cash at $0.001

per share on June 18, 2010

1,000,000

$

1,000

$

-    

$

-    

$

1,000

Common stock issued for cash at $0.01

per share on September 16, 2010

350,000

350

3,150

-

3,500

Imputed interest on related party loan

-

-

629

-

629

Net loss for the period ended

September 30, 2010

-    

-    

-    

(65,051)

(65,051)

Balance, September 30, 2010

1,350,000

$

1,350

$

3,779

$

(65,051)

$

(59,922)

Imputed interest on related party loan

-

-

3,777

-

3,777

Net loss for the period ended

June 30, 2011

-    

-    

-    

(47,472)

(47,472)

Balance,  June 30, 2011

1,350,000

$

1,350

$

7,556

$

(112,523)

$

(103,617)

The accompanying notes are an integral part of these financial statements

F-3                

YUKONIC MINERALS CORP.

(An Exploration Stage Company)

 STATEMENTS OF CASH FLOWS

Unaudited

9 months

9 months

May 26, 2010

ended

ended

(date of inception) to

June 30, 2011

June 30, 2010

June 30, 2011

 OPERATING ACTIVITIES

Net loss

$

(47,472)

$

(39,345)

$

(112,523)

Adjustment to reconcile net loss to net cash

used in operating activities

Impairment of mineral rights acquisition

-    

-

15,000

Imputed interest

3,777

-    

7,557

Increase (decrease) in accrued expenses

$

(7,250)

$

26,750

$

24,905

NET CASH USED IN OPERATING ACTIVITIES

$

(50,945)

$

(12,595)

$

(65,061)

INVESTMENT ACTIVITIES

Mineral rights acquisition

-    

 -

(15,000)

NET CASH USED IN INVESTING ACTIVITIES

$

-    

$

-    

$

(15,000)

FINANCING ACTIVITIES

Proceeds from sale of common stock

-    

1,000

1,350

Loan from related party

34,009

29,623

79,232

NET CASH PROVIDED BY FINANCING ACTIVITIES

$

34,009

$

30,623

$

80,582

NET INCREASE ( DECREASE) IN CASH

$

(16,936)

$

18,029

$

521

CASH, BEGINNING OF PERIOD

$

17,457

$

-    

$

-    

CASH, END OF PERIOD

$

521

$

18,029

$

521

Supplemental cash flow information and noncash financing activities:

Cash paid for:

Interest

$

-    

$

-    

$

 -   

Income taxes

$

-    

$

-    

$

 -   

                               The accompanying notes are an integral part of these financial statements

F-4                

YUKONIC MINERALS CORP.

(A Development Stage Enterprise)

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

June 30, 2011

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

The Company was incorporated in the State of Nevada as a for-profit Company on May 26, 2010 and established a fiscal year end of September 30.  We are a development-stage Company organized to exploit mineral deposits.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The financial statements present the balance sheet, statements of operations, stockholders' equity (deficit) and cash flows of the Company.  These financial statements are presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United States.  

Advertising

Advertising costs are expensed as incurred.  As of June 30, 2011, no advertising costs have been incurred.

Property

The Company owns a mineral claim with a historical cost of $15,000, which is currently deemed fully impaired in the absence of sufficiently developed plans to extract the minerals.  The company does not rent any property.  

Use of Estimates and Assumptions

Preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

Income Taxes

The Company follows the liability method of accounting for income taxes.  Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances.  Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable income in the years in which those differences are expected to be recovered or settled.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.  The company doesn't have any uncertain tax positions.

Net Loss per Share

Basic loss per share includes no dilution and is computed by dividing loss available to common stockholders by the weighted average number of common shares outstanding for the period.  Dilutive loss per share reflects the potential dilution of securities that could share in the losses of the Company.  Because the Company does not have any potentially dilutive securities, the accompanying presentation is only of basic loss per share.

Cash and cash equivalents

We maintain cash balances in non-interest-bearing accounts, which do not currently exceed federally insured limits.  For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents.  As of June 30, 2011, the Company did not have any cash equivalents.  

F-5                

YUKONIC MINERALS CORP.

(A Development Stage Enterprise)

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

June 30, 2011

Concentration of Credit Risk

Financial instruments and related items, which potentially subject the Company to concentrations of credit risk are cash and cash equivalents.  The Company places its cash and temporary cash investments with credit quality institutions.  At times, such investments may be in excess of FDIC insurance limits.  As of June 30, 2011, there were no deposits in excess of federally insured limits.

The Company has adopted Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures ("ASC 820-10").  ASC 820-10 defines fair value, establishes a framework for measuring fair value and enhances fair value measurement disclosure.  ASC 820-10 delays, until the first quarter of fiscal year 2009, the effective date for ASC 820-10 for all non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).  The adoption of ASC 820-10 did not have a material impact on the Company's financial position or operations, but does require that the Company disclose assets and liabilities that are recognized and measured at fair value on a non-recurring basis, presented in a three-tier fair value hierarchy, as follows:

• Level 1.  Observable inputs such as quoted prices in active markets;

• Level 2.  Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

• Level 3.  Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The following presents the gross value of assets that were measured and recognized at fair value.

• Level 1: none

• Level 2: none

• Level 3: none

The Company adopted Accounting Standards Codification subtopic 825-10, Financial Instruments ("ASC 825-10"), which permits entities to choose to measure many financial instruments and certain other items at fair value.  The adoption of this standard did not have an impact on the Company's financial position, results of operations or cash flows.  The carrying value of cash and cash equivalents, accounts payable and accrued expenses, as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments.

Foreign Currency Transactions

The Company’s functional and reporting currency is the U.S. dollar.  The Company occasionally settles transactions in foreign currencies, with the resulting gain or loss on foreign currency exchange reflected in the statement of operations.  The Company incurred a loss on foreign currency exchange of $195 for the period from inception to June 30, 2011.

Exploration-Stage Company

The Company is considered an exploration-stage company, having limited operating revenues during the period presented, as defined by the FASB standard.  This standard requires companies to report their operations, shareholders’ deficit and cash flows since inception through the date that revenues are generated from management’s intended operations, among other things.  Management has provided financial data since May 26, 2010, “Inception”, in the financial statements.  Since inception, the Company has incurred a net loss of $112,523.  The Company’s working capital has been generated through the sale of common stock.

Revenue

The company has recognized no mining revenue to date.  In the future mining revenue will be recognized according to the policy described below.  Revenue is recognized when the following conditions are met:

(a)    persuasive evidence of an arrangement to purchase exists;

(b)   the price is fixed and determinable;

(c)    the product has been delivered; and

(d)   collection of the sales price is reasonably assured.

 F-6               

YUKONIC MINERALS CORP.

(A Development Stage Enterprise)

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

June 30, 2011

Mining Assets

The Company has been in the exploration stage since its inception on May 26, 2010 and has not yet realized any revenues from mining operations.  Mineral property acquisition, exploration, and development costs are capitalized as incurred and evaluated for impairment in accordance with GAAP.  To date the Company has not established any proven or probable reserves on its mineral claim that are compliant with GAAP standards.  The Company has adopted the provision of the FASB standard related to accounting for asset retirement obligations, which establishes standards for the initial measurement and subsequent accounting for obligations associated with the sale, abandonment, or other disposal of long-lived assets arising from the acquisition, construction or development and for normal operations of such assets.  As of June 30, 2011, the Company did not have any developed properties, therefore an accrual related to asset retirement obligations was not necessary.  

Stock-based compensation

The Company adopted FASB guidance on stock based compensation upon inception at May 26, 2010.  Under FASB ASC 718-10-30-2, all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values.  Pro forma disclosure is no longer an alternative.  The Company has not had any stock and stock options issued for services and compensation for the period from inception (May 26, 2010) through June 30, 2011.

Recently Issued Accounting Pronouncements

In April 2010, the FASB issued ASU No. 2010-18 regarding improving comparability by eliminating diversity in practice about the treatment of modifications of loans accounted for within pools under Subtopic 310-30 – Receivable – Loans and Debt Securities Acquired with Deteriorated Credit Quality (“Subtopic 310-30”).  Furthermore, the amendments clarify guidance about maintaining the integrity of a pool as the unit of accounting for acquired loans with credit deterioration.  Loans accounted for individually under Subtopic 310-30 continue to be subject to the troubled debt restructuring accounting provisions within Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors.  The amendments in this Update are effective for modifications of loans accounted for within pools under Subtopic 310-30 occurring in the first interim or annual period ending on or after July 15, 2010.  The amendments are to be applied prospectively.  Early adoption is permitted.  We are currently evaluating the impact of this ASU; however, we do not expect the adoption of this ASU to have a material impact on our financial statements.

In February 2010, the FASB issued ASU No. 2010-09 regarding subsequent events and amendments to certain recognition and disclosure requirements.  Under this ASU, a public company that is a SEC filer, as defined, is not required to disclose the date through which subsequent events have been evaluated.  This ASU is effective upon the issuance of this ASU.  The adoption of this ASU did not have a material impact on our financial statements.

In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements.  This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers.  Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements.  This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years.  We are currently evaluating the impact of this ASU; however, we do not expect the adoption of this ASU to have a material impact on our financial statements.

NOTE 3 – GOING CONCERN

The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern.  This contemplates the realization of assets and the liquidation of liabilities in the normal course of business.  Currently, the Company has a working capital deficit of $103,617, an accumulated deficit of $112,523 and net loss from operations since inception of $112,523.  The Company does not have a source of revenue sufficient to cover its operation costs giving substantial doubt for it to continue as a going concern.  The Company will be dependent upon the raising of additional capital through placement of our common stock in order to implement its business plan, or merge with an operating company.  There can be no assurance that the Company will be successful in either situation in order to continue as a going concern.  The Company is funding its initial operations by way of issuing Founder’s shares.

The officers and directors have committed to advancing certain operating costs of the Company, including Legal, Audit, Transfer Agency and Edgarizing costs

F-7                

YUKONIC MINERALS CORP.

(A Development Stage Enterprise)

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

June 30, 2011

NOTE 4 – CAPITAL STOCK

The Company’s capitalization is 75,000,000 common shares with a par value of $0.001 per share.  No preferred shares have been authorized or issued.

As of June 30, 2011, the Company had issued 1,000,000 Founder’s shares at $0.001 per share for net funds to the Company of $1,000 and had issued 350,000 common stock at $0.01 per share.

As of June 30, 2011, the Company has not granted any stock options and has not recorded any stock-based compensation.

NOTE 5 – LOAN PAYABLE – RELATED PARTY LOANS

The Company has received $79,232 as a loan from a related party.  The loan is payable on demand and without interest.

Imputed interest of $4,406 has been calculated on the benefit gained by the company from an interest free related party loan, and has been treated as an additional contribution to the company.  

NOTE 6 – INCOME TAXES

We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception.  Accounting for Uncertainty in Income Taxes when it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit.  We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards, 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 carry forward period.

The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of June 30, 2011 are as follows:

June 30, 2011

112,523

35%

39,383

(39,383)

$          0

The net federal operating loss carry forward will expire between 2030 and 2031.  This carry forward may be limited upon the consummation of a business combination under IRC Section 381.

NOTE 7 - SUBSEQUENT EVENTS

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were available to be issued and has determined that there are no events to disclose.

 F-8               

3                

4                

5                

 6               

7                

Number

Description

31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 8               

YUKONIC MINERALS CORP.

(REGISTRANT)

Date:  September 16, 2011

/s/ Pamela Tesluck

Pamela Tesluck

President, Chief Executive Officer, Chief Financial Officer, Director

(Authorized Officer for Registrant)

 9