U.S. Securities and Exchange Commission


Washington, D.C. 20549




Form 10-Q





x          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934





For the quarterly period ended: September 30, 2010





o          TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from                                     to




Commission File No.  001-32032


Convenientcast Inc.(Name of Registrant in its Charter)  NEVADA

83-0375241(State or other jurisdiction of

(I.R.S. Employer I.D. No.)incorporation or organization)  1174 Manitou Dr., PO Box 363Fox Island, WA 98333(Address of principal executive offices)(253) 973-7135(Registrant’s telephone number, including area code)(Former name, former address and former fiscal year, of changed since last report)





Indicate by check mark whether the Issuer (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 o





Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, 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).





o Yes o No





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




Large Accelerated Filer o                                                      Accelerated Filer o


Non-Accelerated Filer o                                                        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).     x Yes o No





APPLICABLE ONLY TO CORPORATE ISSUERS:





As of November 22, 2010 the registrant had 16,735,000 outstanding shares of common stock.









Convenientcast, Inc.




TABLE OF CONTENTS




PART I.     FINANCIAL INFORMATION

PAGEItem 1.  Financial Statements (unaudited):


5Balance Sheets


6Statements of Operations


7Statements of Cash Flows


8Notes to Financial Statements (unaudited)


9Item 2.  Management’s Plan of Operations


14Item 3.  Quantitative and Qualitative Disclosures About Market Risk


15Item 4T.  Controls and Procedures


15PART II.     OTHER INFORMATIONItem 1.  Legal Proceedings


15Item 1A. Risk FactorsItem 2.  Unregistered Sale of Equity Securities and Use of Proceeds


15Item 3.   Defaults upon Senior Securities


16Item 4.   Removed and Reserved


16Item 5.   Other Information


16Item 6.   Exhibits


16Signatures


16













PART I - FINANCIAL INFORMATION






Item 1.   Financial Statements





The Financial Statements of the Company required to be filed with this Quarterly Report on Form 10-Q were prepared by management and commence on the following page, together with related Notes.  In the opinion of management, these Financial Statements fairly present the financial condition of the Company, but should be read in conjunction with the Financial Statements of the Company for the year ended December 31, 2009 previously filed in a Form 10-K with the Securities and Exchange Commission. In the opinion of management, all adjustments necessary for a fair presentation have been included in the accompanying interim financial statements and consist of only normal recurring adjustments. The results of operations presented in the accompanying interim financial statements for the nine months ended September 30, 2010 are not necessarily indicative of the operating results that may be expected for the full year ending December 31, 2010.











Convenientcast, Inc




(A Development Stage Company)




Unaudited Financial Statements







For the nine months ended September 30, 2010 and 2009, and


the Period of August 15, 2003 (inception) through September 30, 2010










Convenientcast, Inc


(fka Lone Mountain Mines, Inc.)


Balance Sheets








September 30,


December 31,2010


2009(Unaudited)ASSETSCurrent assetsCash

$
79


$
57Prepaid expense – related party (Note 2)


-



2,075Deposit – related party (Note 2)


800



-Total current assets


879



2,132Fixed assets (Note 6)Office and computer equipment


5,608



5,608Less accumulated depreciation


(5,196
)


(3,953
)Total fixed assets


412



1,655Total assets

$
1,291


$
3,787LIABILITIES AND STOCKHOLDERS' DEFICITCurrent liabilitiesAccounts payable

$
17,571


$
10,649Loans payable – related party (Note 2)


18,700



5,000Convertible note payable – related party (Note 2)


500



500Total current liabilities


36,771



16,149Stockholders' deficit (Note 3)Common stock; $0.001 par value: 75,000,000 shares authorized;16,735,000 shares issued and outstanding


16,735



16,735Additional paid-in capital


503,255



503,255Deficit accumulated during development stage


(555,470
)


(532,352
)Total stockholders' deficit


(35,480
)


(12,362
)Total liabilities and stockholders' deficit

$
1,291


$
3,787




See Accompanying Notes to Unaudited Financial Statements







Convenientcast, Inc.


(fka Lone Mountain Mines, Inc.)


(A Development Stage Company)


Statements of Operations


(Unaudited)





CumulativeFor the Three Months


For the Nine Months


from Inception,Ended September 30,


Ended September 30,


August 15, 20032010


2009


2010


2009


to September 30, 2010IncomeRevenues

$
-


$
-


$
-


$
-


$
--



-



-



-



-ExpensesOrganizational costs


-



-



-



-



490Professional fees


8,485



3,950



13,106



14,871



77,660Management fees – related party


-



-



-



-



157,500Other general and administrative


1,076



4,922



10,012



13,331



49,820Total operating expenses


9,561



8,872



23,118



28,202



285,470Other Income (Expenses)Impairment of available-for-sale investment


-



-



-



-



(275,000
)Gain on sale of mineral claims


-



-



-



5,000



5,000Total other income (expenses)


-



-



-



5,000



(270,000
)Net loss accumulated during development stage


(9,561
)


(8,872
)


(23,118
)


(23,202
)


(555,470
)Net loss per common share

$
(0.00
)

$
(0.00
)

$
(0.00
)

$
(0.00
)Weighted average outstanding shares


16,735,000



16,735,000



16,735,000



16,735,000




See Accompanying Notes to Unaudited Financial Statements










Convenientcast, Inc


(fka Lone Mountain Mines, Inc.)


(A Development Stage Company)


Statements of Cash Flows


(Unaudited)





Cumulative fromInception,August 15, 2003Nine Months Ended


toSeptember 30,


September 30,2010


2009


2010Cash flows from operating activitiesNet loss and accumulated deficit

$
(23,118
)


(23,202
)


(555,470
)Adjustments to reconcile net loss to net cashprovided used in operations:Depreciation


1,243



2,482



5,196Stock issued for services


-



-



45,000Impairment of available-for-sale investment


-



-



275,000Gain on sale of mineral claims


-



(5,000
)


(5,000
)Changes in operating assets and liabilities:Decrease in prepaid expenses – related party


2,075



-



-Decrease (increase) in deposits – related party


(800
)


1,800



(800
)Increase in accounts payable


6,922



1,444



17,571Increase in accrued expenses – related party


-



-



78,000Total cash flows used in operating activities


(13,678
)


(22,476
)


(140,503
)Cash flows from investing activitiesPurchase of mineral property interest


-



-



(10,000
)Proceeds from sale of mining claim


-



15,000



15,000Purchase of available-for-sale investment


-



-



(275,000
)Purchase of fixed assets


-



(4,160
)


(5,608
)Net cash flows provided by (used in) investing activities


-



10,840



(275,608
)Cash flows from financing activitiesProceeds from sale of stock, net of offering costs


-



-



396,990Proceeds from loan payable – related party


13,700



5,000



18,700Proceeds from convertible note payable – related party


-



-



500Total cash flows provided by financing activities


13,700



5,000



416,190Net change in cash


22



(6,636
)


79Beginning cash balance


57



6,717



-Ending cash balance

$
79



81



79Supplementary Disclosure Of Cash Flow Information:Cash paid for:Interest

$
-


$
-


$
-Income taxes

$
-


$
-


$
-Schedule of Non-Cash Investing and Financing Activities:Issuance of stock in satisfaction of related party debt

$
-


$
-


$
78,000


See Accompanying Notes to Unaudited Financial Statements







Convenientcast, Inc


(fka Lone Mountain Mines, Inc.)


A Development Stage Company


Notes to Unaudited Financial Statements


For the Nine Months Ended September 30, 2010 and 2009 and the


Period from August 15, 2003 (inception) through September 30, 2010




1.
Organization and Summary of Significant Accounting Policies







This summary of significant accounting policies of Convenientcast, Inc. (fka Lone Mountain Mines, Inc.), a development stage company (the “Company”), is presented to assist in understanding the Company's financial statements. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the accompanying financial statements.  The Company has not realized revenues from its planned principal business purpose and, accordingly, is considered to be in its development stage in accordance with ASC 915, “Development Stage Entities.”




Business Activity




Convenientcast, Inc. (fka Lone Mountain Mines, Inc.) is a Nevada corporation located in Las Vegas, Nevada.  The Company was originally organized on August 15, 2003 as Wannigan Ventures, Inc. to function as a holding company for making business acquisitions in various industries and providing business development services for those entities. The Company changed its name to PC 9-1-1, Inc. on December 28, 2007 to better reflect the direction of the Company at that time. On April 25, 2008 the Company changed its name to iAudioCampus.com (iAudio) as part of a proposed business combination in which the Company was to acquire 100% ownership of iAudioCampus.com, a California company (see Note 5).   The Company did not complete the acquisition.  On August 11, 2008 the Company entered into an agreement to acquire a mineral property for $10,000 and changed its name to Lone Mountain Mines, Inc. in light of its new business direction. On June 9, 2009 the Company sold its interest in the Big Andy Mine for $15,000. On August 20, 2009, Lone Mountain Mines, Inc. filed Articles of Merger with the Nevada Secretary of State to merge with its wholly owned subsidiary, Convenientcast, Inc.  The only changes to the corporate structure and Articles of Incorporation of the Company due to the merger are that it no longer owns Convenientcast, Inc. and that it has amended its Articles of Incorporation to change its name to Convenientcast, Inc.





The Company received approval from FINRA for the name change effective as of the opening of businesses on September 21, 2009 and has also been granted the symbol “CVCT” on the OTC Bulletin Board.  The Company has elected a fiscal year end of December 31.





Income Taxes


The Company recognizes the tax effects of transactions in the year in which such transactions enter into the determination of net income, regardless of when reported for tax purposes.  Deferred taxes are provided in the financial statements under ASC 718 to give effect to the resulting temporary differences which may arise from differences in the bases of fixed assets, depreciation methods, allowances, and start-up costs based on the income taxes expected to be payable in future years.  Minimal development stage deferred tax assets arising as a result of net operating loss carryforwards have been offset completely by a valuation allowance due to the uncertainty of their utilization in future periods. Operating loss carryforwards generated during the period from August 15, 2003 (date of inception) through September 30, 2010 of $555,470 will begin to expire in 2023. Accordingly, deferred tax assets of approximately $194,400 were offset by the valuation allowance, which increased by approximately $8,000 and $8,100 during the nine months ended September 30, 2010 and 2009, respectively.





The Company adopted the provisions of uncertain tax positions as addressed in ASC 740-10-65-1, on December 31, 2004. As a result of the implementation of ASC 740-10-65-1, the Company recognized approximately no increase in the liability for unrecognized tax benefits.














Convenientcast, Inc


(fka Lone Mountain Mines, Inc.)


A Development Stage Company


Notes to Unaudited Financial Statements


For the Nine Months Ended September 30, 2010 and 2009, and the


Period from August 15, 2003 (inception) through September 30, 2010




1.   Organization and Summary of Significant Accounting Policies (Cont’d)







Income Taxes (cont’d)


The Company has no tax position at September 30, 2010 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. No such interest or penalties were recognized during the periods presented. The Company had no accruals for interest and penalties at September 30, 2010. The Company’s utilization of any net operating loss carryforward may be unlikely as a result of its intended development stage activities.





Estimates


Preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates.  Actual amounts may differ from those reported.





Cash and Cash Equivalents


For the purpose of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.  The Company had $79 and $57 in cash and cash equivalents at September 30, 2010 and December 31, 2009, respectively.





Fixed Assets


The Company’s fixed assets consist of office and computer equipment, which are valued at cost and depreciated using the double-declining method over a period of three years.





Earnings (Loss) Per Share


Earnings per share (EPS) are computed based on the weighted average number of shares actually outstanding.  The Company’s convertible debt (Note 2) and outstanding warrants (Note 3) are potentially dilutive securities, but do not impact the computation of fully diluted EPS because the effect would be antidilutive due to the Company’s continuing losses. Accordingly, basic earnings per share and fully diluted earnings per share are the same.





Recently Issued Accounting Pronouncements


In June 2009, the FASB established the Accounting Standards Codification (“Codification” or “ASC”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”). Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) issued under authority of federal securities laws are also sources of GAAP for SEC registrants. Existing GAAP was not intended to be changed as a result of the Codification, and accordingly the change did not impact our financial statements. The ASC does change the way the guidance is organized and presented.











Convenientcast, Inc


(fka Lone Mountain Mines, Inc.)


A Development Stage Company


Notes to Unaudited Financial Statements


For the Nine Months Ended September 30, 2010 and 2009, and the


Period from August 15, 2003 (inception) through September 30, 2010




1.Organization and Summary of Significant Accounting Policies (Cont’d)







Recently Issued Accounting Pronouncements (Cont’d)


Accounting Standards Update (“ASU”) ASU No. 2009-05 (ASC Topic 820), which amends Fair Value Measurements and Disclosures – Overall, ASU No. 2009-13 (ASC Topic 605), Multiple Deliverable Revenue Arrangements, ASU No. 2009-14 (ASC Topic 985), Certain Revenue Arrangements that include Software Elements, and various other ASU’s No. 2009-2 through ASU No. 2010-26, which contain technical corrections to existing guidance or affect guidance to specialized industries or entities were recently issued. These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.





2.
Related Party Transactions




Convertible Note Payable




On November 17, 2003, the Company entered into a $500 non-interest bearing note payable with its then only stockholder, repayment of which was originally due January 1, 2005 but has been extended by the stockholder to December 31, 2010.  The stockholder retains the option to convert this loan to 500,000 shares at $.001 per share. Because of the negligible benefit of converting the debt to shares at the conversion price of $.001 (which management determined on November 17, 2003 approximated the actual fair value of the Company’s shares), no beneficial conversion feature has been recorded.  No principal payments have been made on the note, and interest has not been imputed due to the insignificant impact on the financial statements.  The funds were used to pay audit fees and maintain a Company bank account.





Consulting Agreement and Accrued Expenses


The Company entered into a consulting agreement with a Stockholder for the period of one year commencing October 1, 2004.  The agreement was automatically renewed at the end of the initial term, and continued to be renewed indefinitely for one-year periods until terminated December 31, 2007.  The Stockholder acted as the office manager and management consultant for the Company, and was compensated $2,000 per month, plus reasonable out-of-pocket expenses.   At December 31, 2007, the Company had incurred 39 months of consulting expense totaling $78,000, and owed an additional $12,850 in miscellaneous expenses incurred in the Company’s behalf.  On April 16, 2008, the $78,000 was paid to the Stockholder by issuance of 3,000,000 shares of common stock valued at $.026 per share.  The Company also reimbursed the consultant for the $12,850 in expenses, resulting in a $0 balance at December 31, 2008.





The Company renewed its management agreement with the Stockholder for a period of six months commencing August 13, 2008.  Pursuant to terms stated in the agreement, the Company paid $10,000 cash and issued 150,000 shares of common stock to the Stockholder upon the signing of the agreement.  The stock was valued at $45,000 ($.30 per share) and recorded as management fee expense.  Remaining payment terms require a $10,000 payment upon filing of a Form S-1, and a $5,000 payment upon obtaining trading privileges on the NASD OTCBB.  The Stockholder is also authorized to incur pre-approved expenses in the Company’s behalf up to $5,000.  The S-1 was filed in December 2008, at which point the second $10,000 payment was made.  The Company also paid the Stockholder $5,000, as its NASD OTCBB privileges were approved during the second quarter of 2009.








Convenientcast, Inc




(fka Lone Mountain Mines, Inc.)


A Development Stage Company


Notes to Unaudited Financial Statements


For the Nine Months Ended September 30, 2010 and 2009, and the


Period from August 15, 2003 (inception) through September 30, 2010





2.
Related Party Transactions (continued)





Loan Payable


On August 15, 2009, a stockholder advanced $5,000 to the Company.  The loan bears no interest and has no specific terms of repayment.  Interest has not been imputed due to the insignificant impact on the financial statements.





On March 10, 2010, a stockholder advanced $3,500 to the Company.  The loan bears no interest and has no specific terms of repayment.  Interest has not been imputed due to the insignificant impact on the financial statements.





On March 24, 2010, a stockholder advanced $5,000 to the Company.  The loan bears no interest and has no specific terms of repayment.  Interest has not been imputed due to the insignificant impact on the financial statements.





On June 18, 2010, a stockholder advanced $5,000 to the Company.  The loan bears no interest and has no specific terms of repayment.  Interest has not been imputed due to the insignificant impact on the financial statements





During the nine months ended September 30, 2010, a stockholder paid $200 to a creditor on behalf of the Company.  The loan bears no interest and has no specific terms of repayment.  Interest has not been imputed due to the insignificant impact on the financial statements





Mineral Claims


On August 11, 2008, the Company entered into an agreement with a company affiliated with the Company’s President (the Affiliate) to acquire an undivided 100% interest in a mineral prospect (the Property) located in British Columbia, Canada   for consideration of $10,000 cash.  On June 9, 2009 the Company sold its interest in the Property back to the Affiliate for $15,000, resulting in a $5,000 gain.  No exploration or other expenses were incurred on the mineral property during the Company’s brief ownership.





Lease Agreement


The Company entered into a lease agreement with a stockholder for office space in Nevada for a one-year period commencing April 1, 2008 with monthly rent payments of $400 and a security deposit of $1,200.  The Company paid an additional $2,675 plus $4,800 in rent prepayments and other maintenance fees for rent up front, resulting in a deposit balance of $5,075 at December 31, 2008.  The deposit has been applied to rent and other related fees in the year ended December 31, 2009, resulting in a deposit balance of $0 at December 31, 2009.





The Company entered into a lease agreement with a stockholder for office space in Nevada for a one-year period commencing August 1, 2010 with monthly rent payments of $400 and a security deposit of $800.  Rent expense for the periods ended September 30, 2010 and 2009 was $800 and $3,600, respectively.





Other


Prepaid expenses of $2,075 which were advanced to stockholders for project investigation costs have been refunded to the Company.





3.
Stockholders’ Equity (Deficit)





Upon inception, the Company issued 12,250,000 shares of its unrestricted common stock at $.00004 per share for total cash of $490.  The proceeds were used to pay for incorporation and filing fees.







Convenientcast, Inc


(fka Lone Mountain Mines, Inc.)


A Development Stage Company


Notes to Unaudited Financial Statements


For the Nine Months Ended September 30, 2010 and 2009, and the


Period from August 15, 2003 (inception) through September 30, 2010





3.
Stockholders’ Equity (Deficit) (cont’d)





On February 27, 2007, the Board of Directors approved a 250:1 forward stock split of issued shares and an increase in the Company’s authorized common shares from 25,000,000 to 75,000,000 shares.  Common stock par value remains at $.001, and all applicable periods presented have been retroactively restated to reflect the split.  All references to common stock as stated in these footnotes are assumed to be post-split, unless otherwise indicated.





On February 27, 2007, the Board of Directors approved the distribution of up to 11,805,374 shares of the total issued and outstanding shares held by its then parent company (the Parent) to the Parent’s stockholders of record on March 1, 2007 as a stock dividend.    The distribution of the 11,805,374 shares took place March 1, 2007.





On April 16, 2008, the Board of Directors approved the settlement of $78,000 of debt payable to its stockholder in consideration for 3,000,000 shares valued at $.026 per share (Note 2).





On April 23, 2008, the Board of Directors approved the issuance of 13,000,000 common shares as partial consideration to acquire 100% of all the outstanding shares of iAudiocampus.com (“iAudio”), a California company.  These shares were cancelled on August 11, 2008 as the Company did not proceed in its acquisition.





On August 12, 2008, the Company issued 1,335,000 shares of common stock pursuant to a private offering for cash proceeds of $396,500 (net of $4,000 in offering expenses).  A total of 667,500 warrants were issued in conjunction with the shares.  Each unit is comprised of one common share and one-half warrant exercisable for two years at a price of $0.50. Two warrants are required to purchase one common share. The fair value of each warrant on the grant date was determined to be $.088 ($58,830 total) using the Black Scholes option pricing model.  The residual purchase price was assigned to the common stock, which was computed to be $.256 per share ($337,670 total, net of $4,000 offering costs). The following assumptions were used to value the warrants on the grant date: stock price of $.30, dividend yield of 0%, volatility of 77%, warrant life of two years, and a risk-free interest rate of 4% based on the Treasury bond yield with a term comparable to the length of the terms stated in the warrant agreements.  At September 30, 2010, no warrants had been exercised, and all issued and outstanding warrants expired in August 2010.





On August 13, 2008, the Company issued 150,000 shares of its common stock at $.30 per share to an existing stockholder pursuant to the consulting agreement in Note 2 for services totaling $45,000.





4.
Going Concern





The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. However, the Company has incurred losses since its inception and has not yet been successful in establishing profitable operations. These factors raise substantial doubt about the ability of the Company to continue as a going concern.  Unanticipated costs and expenses or the inability to generate revenues could require additional financing, which would be sought through bank borrowings, equity or debt financing, or asset sales.  To the extent financing is not available, the Company may not be able to, or may be delayed in, developing its services and meeting its obligations.  The Company will continue to evaluate its projected expenditures relative to its available cash and to evaluate additional means of financing in order to satisfy its working capital and other cash requirements. The accompanying financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.







Convenientcast, Inc


(fka Lone Mountain Mines, Inc.)


A Development Stage Company


Notes to Unaudited Financial Statements


For the Nine Months Ended September 30, 2010 and 2009, and the


Period from August 15, 2003 (inception) through September 30, 2010





5.
Asset Acquisitions and Subsequent Terminations





iAudioCampus.com


On April 23, 2008, the Company entered into an agreement to purchase all the outstanding shares of iAudioCampus.com, Inc. (“iAudio”), a California company, for consideration of $400,000 cash and 13,000,000 shares of the Company’s common stock.  A payment of $175,000 was made on the date of the agreement’s inception, and additional $100,000 payments were required to be made on May 22, 2008 and June 22, 2008 (extended to July 31, 2008).  The remaining $25,000 was to be used for audit and legal fees.





The Company did not make the final payment of $100,000 and the agreement was terminated on August 1, 2008.  Terms of the termination included the cancellation of the 13,000,000 shares issued to iAudio for the acquisition, and conversion of the $275,000 cash advanced and the $25,000 used to pay for legal and audit expenses into a private placement in iAudio of 1,000,000 shares, and that the Company change its name.   The net cash paid of $275,000 was recognized as an available-for-sale investment to be accounted for under the provisions of FASC 320.  As of December 31, 2008, no unrealized holding gains or losses had been recorded on this investment.  At December 31, 2009, the Company impaired the investment down to $0, as there was no perceived value in the iAudio shares due to iAudio’s inactivity and inability to generate profits.





Global Fusion Media, Inc.


On December 8, 2009, the Company entered into an agreement with Global Fusion Media Inc. to purchase all the outstanding shares of C-Store Network, LLC (“C-Store”), a Nevada company, in consideration of 32,000,000 shares of the Company’s common stock.    This transaction was not completed and was cancelled on February 28, 2010.





6.
Fixed Assets


The Company’s fixed assets consist of office and computer equipment, which are valued at cost and depreciated using the double-declining method over a period of three years as follows:


September 30, 2010


December 31, 2009Cost


Accumulated

Amortization


Net Book

Value


Net Book

ValueComputer equipment

$
3,118


$
2,706


$
412


$
825Office equipment


2,490



2,490



-



830$
5,608


$
5,196


$
412


$
1,655





Depreciation of $1,242 and $2,482 are included in general and administrative expenses in the statement of operations for the nine months ended September 30, 2010 and 2009, respectively.  During the year ended December 31, 2009 and 2008, the Company acquired office and computer equipment totaling $4,160 and $1,448, respectively.





7.
Subsequent Events


On October 31, 2010, the Company received $35,000 from a shareholder pursuant to a convertible promissory note.  The note is payable upon demand and bears interest at 6% per annum. The shareholder has the option to convert the debt to the Company’s common shares for a settlement price per share equal to the average bid price quoted on the OTCBB for a period of 5 days prior to the date of conversion.





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








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





The Company is in its initial stages of development with no revenues or income and is subject to all the risks inherent in the creation of a new business.  Since the Company’s principal activities to date have been limited to organizational activities and prospect development, it has no record of any revenue-producing operations.  Consequently, there is no operating history upon which to base an assumption that the Company will be able to achieve its business plans.





The Company’s plan is to seek acquisition opportunities, investigate, and if such investigation warrants, acquire an interest in one or more business opportunities presented to it by persons or firms desiring the perceived advantages of a publicly held corporation.





On July 9, 2007, the Company filed an amendment with the Secretary of State of Nevada to increase its authorized common stock to 75,000,000 shares.





On July 11, 2007, the Company entered into an agreement to purchase a Nevada based corporation, PC 9-1-1, Inc.  The purchase price was the issuance of 16,270,000 common shares; however, the purchase was not completed.





On July 12, 2007, the Board of Directors was increased to four persons and Chad Stone and Steven Pickett, both of Las Vegas, Nevada, and Kenneth B. Liebscher of Washington State were asked to join the Board.





The Board further resolved that Kevin Murphy would serve as Chairman of the Board, Chad Stone would serve as President and CEO of the Company, Steven Pickett would serve as Treasurer/CFO and that Kenneth Liebscher would serve as Secretary.





Subsequent to December 31, 2007, the acquisition of PC 9-1-1 was cancelled as delivery of the shares to be received were, in fact, not received so the shares issued by the Company were cancelled April 4, 2008.  The resignations of Directors Stone, Pickett, and Liebscher were accepted by the Company leaving Kevin M. Murphy as sole remaining Director. On April 14, 2008, the Board of Directors was increased to two persons when Howard Bouch accepted the invitation to join the Board. Kevin Murphy was elected President and CEO and Howard Bouch was elected Secretary and CFO.





On April 23, 2008, the Company entered into an agreement to purchase all the outstanding shares of iAudioCampus.com, Inc. (“iAudio”), a California company, in consideration of $400,000 cash and 13,000,000 shares of the Company’s common stock.  A payment of $175,000 was made on the date of the agreement’s inception, and additional $100,000 payments were required to be made on May 22, 2008 and June 22, 2008 (extended to July 31, 2008).  The remaining $25,000 was to be used for audit and legal fees.





The Company did not make the final payment of $100,000 and the agreement was terminated on August 1, 2008.  Terms of the termination included the cancellation of the 13,000,000 shares issued to iAudio for the acquisition, and conversion of the $275,000 cash advanced and the $25,000 used to pay for legal and audit expenses into a private placement in iAudio of 1,000,000 shares, and that the Company change its name.  The net $275,000 cash investment was considered an available-for-sale security.At December 31, 2009, the Company impaired the investment down to $0, as there was no perceived value in the iAudio shares due to iAudio’s inactivity and inability to generate profits.











On August 11, 2008, the Company acquired the Big Andy Mine for $10,000 in cash from Silver Mountain Mines.  The mine is located at 92K15W; (50 degrees46’ North Latitude, 124 degrees 47’ West Longitude); (NAD 27)  374237 E 5625175 N.





On August 11, 2008, the Board of Directors resolved to change the name of the Company to Lone Mountain Mines, Inc. to better reflect the new direction of the Company.





On August 12, 2008, the Company issued 1,335,000 shares of common stock pursuant to a private offering, for cash proceeds of $396,500 (net of $4,000 in offering expenses).  A total of 667,500 warrants were issued in conjunction with the shares.  Each unit is comprised of one common share and one-half warrant exercisable for two years at a price of $0.50. Two warrants are required to purchase one common share. The fair value of each warrant on the grant date was determined to be $.088 ($58,830 total) using the Black Scholes option pricing model.  The residual purchase price was assigned to the common stock, which was computed to be $.256 per share ($337,670 total, net of $4,000 offering costs). The following assumptions were used to value the warrants on the grant date: stock price of $.30, dividend yield of 0%, volatility of 77%, warrant life of two years, and a risk-free interest rate of 4% based on the Treasury bond yield with a term comparable to the length of the terms stated in the warrant agreements.  At September 30, 2010, no warrants had been exercised, and all issued and outstanding warrants expired in August 2010.





On August 13, 2008, the Company issued 150,000 shares of common stock at $0.30 per share to a stockholder in exchange for services valued at $45,000 relating to the filing of a Form S-1 and obtaining a trading symbol on the NASD OTCBB.




It is likely that we will need to raise additional funds in the next 12 months. Our existing funds will not cover our general and administrative expenses for the next 12 months. In the event additional funds are required, management will seek private placement subscriptions or will loan additional proceeds to the Company.




Currently, the Company does not have the funds required to complete a substantial drilling program and engineering studies. In the event it is unable to raise additional funds for this work, it would be unable to proceed even if a mineral deposit is discovered.




Our company has incurred operating losses and will not be able to exist indefinitely without the receipt of additional operating funds. In the view of our company’s auditors, our company requires additional funds to maintain our operations and these conditions raise substantial doubt about our ability to continue as a going concern.




The Big Andy claims were transferred to Convenientcast, Inc. by virtue of a Purchase Agreement executed on August 11, 2008, between the Company and Silver Mountain Mines. The claims were acquired for consideration of $10,000, with a 1% net smelter return royalty retained by Silver Mountain Mines. Kevin M. Murphy is President of Silver Mountain Mines as well as Convenientcast, Inc.  On June 9, 2009 the Company sold its interest in the property for $15,000.  The company does not have a mining property at this time.




We will not be conducting any product research or development over the next 12 months. We do not expect to purchase any plant or significant equipment over the next 12 months.




On July 15, 2009 the Company entered into a Letter of Agreement to purchase Global Fusion Media Inc., a British Columbia corporation (“GFM”). However, the agreement was terminated on February 28, 2010.




On August 20, 2009, Lone Mountain Mines, Inc. filed Articles of Merger with the Nevada Secretary of State to merge with its wholly owned subsidiary, Convenientcast Inc.  The only changes to the corporate structure and Articles of Incorporation of the Company due to the merger are that it no longer owns Convenientcast Inc. and that it has amended its Articles of Incorporation to change its name to Convenientcast Inc.





The Company received approval from FINRA for the name change effective as of the opening of businesses on September 21, 2009 and has also been granted the symbol “CVCT” on the OTC Bulletin Board.  The Company has elected a fiscal year end of December 31.











Item 3. Quantitative and Qualitative Disclosures About Market Risk





Not Required





Item 4T. Controls and Procedures





Evaluation of Disclosure Controls and Procedures





As of the end of the period covered by this report, the Company carried out an evaluation of the effectiveness of the Company’s disclosure controls and procedures (as defined by Rule 13-15(e) under the Securities Exchange Act of 1934) under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer. Based on and as of the date of such evaluation, the aforementioned officers have concluded that the Company’s disclosure controls and procedures were effective.





The Company also maintains a system of internal accounting controls that is designed to provide assurance that assets are safeguarded and that transactions are executed in accordance with management’s authorization and properly recorded. This system is continually reviewed and is augmented by written policies and procedures, the careful selection and training of qualified personnel and an internal audit program to monitor its effectiveness.





Changes in Internal Controls





There were no significant changes in the Company’s internal controls or in other factors that could significantly affect these controls as of the end of the period covered by the report and up to the filing date of this Quarterly Report on Form 10-Q. There were no significant deficiencies or material weaknesses, and therefore there were no corrective actions taken.  It should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about the likelihood of future events. Because of these and other inherent limitations of control systems, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.




PART II - OTHER INFORMATION


Item 1.     Legal Proceedings


We are not aware of any legal proceedings to which we are a party or of which our property is the subject. None of our directors, officers, affiliates, any owner of record or beneficially of more than 5% of our voting securities, or any associate of any such director, officer, affiliate or security holder are (i) a party adverse to us in any legal proceedings, or (ii) have a material interest adverse to us in any legal proceedings. We are not aware of any other legal proceedings that have been threatened against us.





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





None.





Item 6.     Exhibits




The following exhibits are filed herewith:




Exhibit

Number

Exhibit

Description31.1

Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2

Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1

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







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.




Convenientcast Inc. (formerly Lone Mountain Mines, Inc.)  Date:11/22/10

By: /s/ Kevin M. MurphyPresident, CEO, and Director