**U.S. Securities and Exchange Commission**

**Washington, D.C. 20549**

 

**FORM - 10QSB**

 

[ X ]*           *QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF  THE SECURITIESAND EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2007

 

or

 

[   ]             TRANSITION REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES ANDEXCHANGE ACT OF 1934

 

For the transition period from _____________________

Commission File No. 

 

**Toro Ventures Inc.**

---------------------------------------------

(Name of small business issuer in its charter)

 

| **Nevada**               | **N/A**                              |
|--------------------------|--------------------------------------|
| (State of Incorporation) | (I.R.S. Employer Identification No.) |

 

**2498 West 41st Ave, Suite 232, Vancouver, British Columbia,V6M 2A7**

---------------------------------------------------------------------------------------------------------

(Address of principal executive offices)

 

**604-618-9110**

----------------------------------

(Registrant's telephone number, including area code)

 

-------------------------

(Former name, address and fiscal year, if changed since lastreport)

Check whether the issuer (1) filed all reports required to befiled by Section 13 or 15 (d) of the Exchange Act during the past 12 months (orfor 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 a shell company(as defined by Rule 12b-2 of the Exchange Act).     Yes [ x ]  No [   ]

The number of shares of the registrant's common stock, par value$0.001 per share, outstanding as of September 30, 2007 was 5,845,000.

Transitional Small Business Disclosure Format (Check One): Yes [   ]  No [ x ] 

 

1

 

  Toro Ventures Inc.

Table of Contents

 

Part I - FINANCIAL INFORMATION

Item 1.    Financial Statements (Unaudited)

               Balance Sheet as of September 30, 2007 (Unaudited) and June 30, 2007(Audited)....................................................................................................4

> 
      Statement of Operations for three months endedSeptember 30, 2007 (Unaudited) and for the fiscal period ended June 30, 2007 (Auditd)............................................................................................................................................................................................................................................5

       Statement of Cash Flows for three months endedSeptember 30, 2006 (Unaudited) andfor the fiscal period ended June 30, 2007(Audited)..........................................................................................................................................................................................................................................6

               Notes to FinancialStatements................................................................................................................................................................................................7

Item 2.    Management's Discussion and Analysisor Plan ofOperations.........................................................................................................................................13

Item 3.    Controls andProcedures........................................................................................................................................................................................................15

Part II - OTHERINFORMATION.............................................................................................................................................................................................................17

 

2

Part I - FINANCIAL INFORMATION

 

**November 2,2007** 

**Notice toReader** 

On the basis of informationprovided by management, we have compiled the balance sheet of Toro Ventures Inc.as at September 30, 2007 and the statements of operations and deficit,stockholders' equity (deficiency), and cash flows for the quarter then ended. 

We have not performed an auditor a review engagement in respect of these financial statements and,accordingly, we express no assurance thereon. 

Readers are cautioned thatthese statements may not be appropriate for their purposes. 

**FAZZARI +PARTNERS LLP**

Chartered Accountants

Licensed Public Accountants 

Vaughan, Ontario, Canada

 

**Toro Venture Inc.**

**(A Development Stage Company)**

**Balance Sheets**

**(Unaudited- see Notice to Readers)**

**(Expressed in US Dollars)**

 

** **As at September 30****As at June 30** **2007****2007 (Audited)**
**ASSETS**Current Assets  
Cash 
      904      958       904      958   Investment in Franchise25,00025,000
Accumulated Amortization
      (5,625)      (5,000)       19,375      20,000   **Total Assets****20,279****20,958**   
**LIABILITIES AND STOCKHOLDER'S EQUITY****Current Liabilities**  
Accounts Payable and Accrued Liabilities
      17,579      17,079                     **Long Term Liability**                    Loan from Shareholder (See Note 6)      27,791      25,291**Total Liabilities****45,370****42,370**   
**SHAREHOLDER'S EQUITY**Capital Stock (See Note 5)  Authorized:  75,000,000 common shares at $0.001 par value  Issued and fully paid:  5,845,000 common shares at par value5,8455,845Additional Paid In Capital54,15554,155      Deficit, accumulated during the exploration stage      (85,091)      (81,412)      Total Stockholder's Equity      (25,091)      (21,412)   **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY****20,279****20,958**   **Approved on Behalf of the Board**  **"Yan Liu", Director and Chief      Executive Officer**  
 

See Accompanying Notes

 

**TORO VENTURES INC.**

**(A Development Stage Company)**

**Statement of Operations and Deficit**

**(Unaudited - see Notice to Reader)**

**(Expressed in US Dollars)**

 
              
       
 
**Cumulative from Date**       
       
 
**of Inception on April 11****Three Months**
**Three Months**
 
**2005 to****Ended**
**Ended**
 
**September 30,****September 30**
**September 30,**
 
**2007****2007**
**2006**
**General and Administrative      Expenses**
              
             Regulatory and Transfer Agent Fees      1,545      -      -      Management Fees      9,500      -      -      Professional Fees      37,966      -      -      Rent      30,000      3,000      3,000      Amortization Expense      5,625      625      625      Bank Charges and Interest      455      54      51             85,091      3,679      3,676                            
**Net Profit (Loss) for the Period**      (85,091)      (3,679)      (3,676)
                      
**Net Loss per Share**                     
Basic Weighted Average Loss Per Share             (0.00)
      (0.00)
Fully Diluted Weighted Average Loss Per Share             (0.00)
      (0.00)
                      
Weighted Average Number of Shares (Basic      and Diluted)
       5,845,000
5,845,000
See Accompany Notes

 

 

**TORO VENTURES INC.**

**(A Development Stage Company)**

**Statement of Cash Flows**

**(Unaudited - see Notice to Reader)**

**(Expressed in US Dollars)**

 

              
       
 
**Cumulative from Date**       
       
 
**of Inception on April 11****Three Months**
**Three Months**
 
**2005 to****Ended**
**Ended**
 
**September 30,****September 30**
**September 30,**
 
**2007****2007**
**2006**
**Cash Provided by (Used for)**
          
     
**Operating Activities**
          
     
    Net Profit (Loss) for the period    (85,091)    (3,679)    (3,676)
Adjustment for item not requiring the use of cash

    Amortization Expense
    5,625    625    625    Changes in non-cash working capital items               
    Prepaid Expenses    -    -    -
    Accounts Payable and Accrued Liabilities    17,579    500    3,000
**Cash used for operating activities**    (61,887)    (2,554)    (51)
                    
**Cash from Financing Activities**               
    Capital Stock subscribed     5,570    -    -        Paid-In Capital    29,430    -    -
    Loan from Stockholder    27,791    2,500    -
**Cash provided by financing activities**    42,791    2,500    -
                    
    Cash increase (decrease) during the period    904    (54)    (51)
                    
    Cash, beginning of period    -    958    1,212
    Cash, end of period     904    904    1,161
                    
                    
See Accompanying notes

 

**TORO VENTURES INC.**

**(A Development Stage Company)**

**Notes to  the Financial Statements**

**Three Months Ended September 30, 2007**

**(Unaudited - see Notice to Reader)**

**(Expressed in USA Dollars)**

 

**Note 1.           INCORPORATION AND OPERATING ACTIVITIES**

Toro Ventures Inc.was incorporated on 11 April 2005, under the laws of the State of Nevada, U.S.A.Operations, as a development stage company started on that date, i.e., 11 April2005.    

At the period end,the Company has entered into an agreement which grants the Company exclusiverights and license in the provinces of Hubei and Beijing, China to own andoperate fast food outlets, and/or sell franchises.

*Going Concern*

These financialstatements have been prepared in accordance with generally accepted accountingprinciples in the United States of America applicable to a going concern whichassume that the Company will realize its assets and discharge its liabilities inthe normal course of business. The Company has incurred losses since inceptionof $85,091 to September 30, 2007. This factor creates doubt as to the ability ofthe Company to continue as a going concern. Realization values may besubstantially different from the carrying values as shown in these financialstatements should the Company be unable to continue as a going concern.Management is in the process of identifying sources for additional financing forworking capital and to fund the ongoing development of the Company's business,and management proposes to develop plans to continue the business as a goingconcern.

Note 2.           SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES

    (a)    Foreign Currency Translation
  Monetary assets and liabilities  denominated in foreign currencies are translated into USA dollars at the  period end exchange rate, non-monetary assets are translated at historical  exchange rates and all income and expenses are translated at average exchange  rates prevailing during the period. Foreign currency translation adjustments  are included in income.
    (b)   Loss per Share

         Loss per share hasbeen calculated based on the weighted average number of shares outstanding.

    (c)    Fair Value of Financial Instruments

         The respectivecarrying value of certain on-balance sheet financial instruments approximatetheir fair values. These financial statements include cash, accounts payable andaccrued liabilities, and loans from shareholder. Unless otherwise noted, it ismanagement's opinion that the Company is not exposed to significant interest,currency or credit risks arising from these financial instruments. Unlessotherwise noted, fair values were assumed to approximate carrying values forthese financial instruments since they are short term in nature and theircarrying amounts approximate fair values or they are receivable or payable ondemand..  

    (d)    Use of Estimates

       The preparation offinancial statements in accordance with generally accepted accounting principlesrequires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosures of contingent assets andliabilities at the date of the financial statements and the reported amounts ofrevenues and expenses during the reporting period. Actual results couldmaterially differ from these estimates.

    (e)     Reporting on the costs ofstart-up Activities

      Statement ofPosition 98-5 (SOP 98-5), "Reporting on the Costs of Start-Up Activities," whichprovides guidance on the financial reporting of start-up costs andorganizational costs, to be expensed as incurred. SOP 98-5 is effective forfiscal years beginning after 15 December 1998. With the adoption of SOP 98-5,there has been little or no effect on the Company's financial statements.

    (f)    Investment in Franchise

          The investment ina franchise is considered as an intangible asset with a finite life of 10 years.In accordance to FAS-142, the intangible asset has been evaluated for impairmentby using discounted expected cash flows. No impairment of the intangible assetexisted and as a result there is no amortization provided in the current period.The impairment, if any, will be will be tested and evaluated at least on anannual basis for impairment.

           The investment ina franchise is stated at cost less accumulated amortization. Amortization isrecorded at the following rates, based on upon the useful life of the asset:

           Investmentin Franchise - Straight-Line method over the useful life of the asset

           
    September 30, 2007    Cost    Accumulated Amortization    Net Book Value    Investment in Franchise    $25,000    $5,625    $19,375
   

 (g)     Future Income Taxes

          Thecompany recognizes income taxes using an asset and liability approach. Futureincome tax assets and liabilities are computed annually for differences betweenthe financial statements and bases using enacted tax laws and rates applicableto the periods in which the differences are expressed to affect taxable income.

    (h)    Year End

           The Companyhas adopted 30 June as its fiscal year end.

          These unauditedfinancial statements should be read in conjunction with the Company's auditedfinancial statements for the year ended June 30, 2007. 

NOTE 3:        Investment in Franchise

  On 15 May 2005 thecompany entered into an agreement with a Canadian company to acquire the rightto establish franchise outlets in parts of the People's Republic of China. Theagreement is for 10 years with an option to renew for an additional 10 yearsafter the termination of the initial term. The consideration given for the Rightis 275,000 common shares. In addition a 5% royalty is to be paid on all outletgross sales to the franchisers along with 3% advertising royalty on all outletgross sales.

   At the period end,management believes that there is no impairment of value in the investment,because, the franchise agreement was signed just before the fiscal period endand management performed a calculation using discounted cash flow analysis, tosupport the lack of impairment. Furthermore, the Company is actively seeking alocation for the first franchisee in the Provinces of Hubei or Beijing.

 

NOTE 4:         ShareCapital

    Authorized - 75,000,000 common shares with apar value of $0.001 per share.

    Issued - 5,845,000 common shares at varyingsubscription prices.

    
 **# of Shares****$****For Cash**5,570,00035,000**For Acquisition of Franchise**275,00025,000**Balance, as of September 30, 2006**5,845,00060,000
    Although the shares have not been certified,the By-Laws of the Company treats all uncertified shares as certified.

NOTE 5:    IncomeTaxes

   The Company has tax losses of $85,091 which may be applied against futuretaxable income.

   The Company hasnot recorded a corresponding future tax asset.

NOTE 6:    Loan from Shareholder and RelatedParty Transactions

   A shareholder ofthe company has loaned $2,500 to the Company during the three month period endedSeptember 30, 2007, which is unsecured,  non-interest  bearing, with no specificterms of repayment.

 

 

Item 2: Management's Discussion and Analysis of FinancialCondition and Results of Operations

The followingdiscussion and analysis provides information which management of Toro VenturesInc. (the "Company") believes to be relevant to an assessment and understandingof the Company's results of operations and financial condition. This discussionshould be read together with the Company's financial statements and the notes tofinancial statements, which are included in this report.

*Caution aboutForward-Looking Statements*

This management's discussion andanalysis or plan of operation should be read in conjunction with the financialstatements and notes thereto of the Company for the quarter ended September 30,2007. Because of the nature of a relatively new and growing company the reportedresults will not necessarily reflect the future.

This section includes a number offorward-looking statements that reflect our current views with respect to futureevents and financial performance. Forward-looking statements are oftenidentified by words like: believe, expect, estimate, anticipate, intend, projectand similar expressions, or words which, by their nature, refer to futureevents. You should not place undue certainty on these forward-lookingstatements, which apply only as of the date of this prospectus. Theseforward-looking statements are subject to certain risks and uncertainties thatcould cause actual results to differ materially from historical results or ourpredictions.

*Overview*

Toro Ventures Inc. ("Toro")intends to commence operations as fast food service company  . Torocurrently owns the exclusive franchisee rights in the provinces of Hubei andBeijing in China to the Big-On-Burgers Restaurants, a Canadian based fast-foodservice provider of traditional North American cuisine such  as hamburgersand fries. We plan to begin operations of a Big-On-Burgers store in China oncesufficient investment capital is raised.   
Results of Operations 
The Companyexperienced general and administration expenses of $3,679 for the quarter endedSeptember 30, 2007. The majority of the expenses were related to facilitiescosts for the Company, which totaled $3,00.00 for the quarter.

For the quarter ended September 30, 2007, the company experienced a net loss of $3,679,and of the period  from April 11, 2005 to September 30, 2007, the companyexperienced a net loss of $85,091.
Liquidity and Capital Resources 
During the three month periodended September 30, 2007, the Company satisfied its working capital needs byusing cash generated from operations and equity from shareholder's initial seedfinancing. As of September 30, 2007, the Company has cash on hand in the amountof $904. Management does not expect that the current level of cash on hand willbe sufficient to fund our operations for the next twelve month period. In theevent that additional funds are required to maintain operations, our officersand directors have agreed to advance us sufficient capital to allow us tocontinue operations. We may also be able to obtain loans from our shareholders,but there are no agreements or understandings in place currently.
We believe we will require additional funding to expand our business and ensure its future profitability. We anticipate that any additional funding will be in the form of equity financing from the sale of our common stock. However, we do not have any arrangements in place for any future equity financing. In the event we are not successful in selling our common stock, we may also seek to obtain short-term loans from our director.
 

Item 3. Controls andProcedures

(a)      Evaluationof Disclosure Controls and Procedures.

Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports filed or submitted under the ExchangeAct is recorded, processed, summarized and reported, within the time period specified in the Commission's rules and forms. Disclosure controls and procedures include,without limitation, controls and procedures designed to ensure that information required to be disclosed in the reports filed under the Exchange Act is accumulated and communicatedto management, as appropriate, to allow timely decisions regarding required disclosure. Our current principal executive officer, who is also our principal financial officer, evaluated theeffectiveness of our disclosure controls and procedures as of the end of the quarterly period covered by this report pursuant to Rule 15d-15(b) promulgated under the Exchange Act.Based upon that evaluation, our principal executive and financial officer has concluded that our disclosure controls and procedures were effective in alerting management in a timelyfashion to all material information required to be included in our periodic filings with the Commission.

(b)      Changesin Internal Controls.

There were no significant changes in our internal control over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) thatoccurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internalcontrols over financial reporting.

 

PART II: OTHER INFORMATION

Items 1, 2, 3, 4 , and 5 are inapplicable.

Item 6: Exhibits

(a)   The following exhibit is filed as part of this report:

       31.1 Certification  of Chief  Executive  Officer and Chief Financial Officer  of Periodic Report pursuant to Rule 13a-14a and Rule 15d-14(a).

         32.1Certification of Chief Financial Officer and Chief Executive Officer of pursuantof Section 1350.

 

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, theregistrant has duly caused this report to be signed on its behalf by theundersigned thereunto duly authorized November 9, 2007
 
November 9, 2007/s/ "Yan Liu" Mr. Yan Liu, President   

**