UNITEDSTATES 

SECURITIESAND EXCHANGE COMMISSION

Washington,D.C. 20549

 

FORM 10-QSB

 

QUARTERLYREPORT PURSUANT TO SECTION 13 OR 15(d) 

OF THESECURITIES ACT OF 1934

 

For thequarterly period ended December 31, 2006

CommissionFile Number 333-135037

 

CORONADOCORP.

(Exact Nameof Small Business Issuer as Specified in Its Charter)

 

Nevada                                                                    98-0485668
                                                                                           (State of                                                                  (IRS Employer

                                                                                        Incorporation)                                                              (ID Number)

 

Tibas delCorreo, 50 metros Norte y 25 metros al Este,

San Jose,Republica de Costa Rica

(Address ofprincipal executive offices)

 

(702)987-1847

(Issuer'sTelephone Number, Including Area Code)

 

Check whether the issuer(1) filed all reports required to be filed by Section 13 or 15 (d) of theSecurities Exchange Act during the past 12 months (or for such shorter periodthat the registrant was required to file such reports), and (2) has been subjectto such filing requirements for the past 90 days.

 

                       Yes         X                    No ____ 

 

Indicate by check markwhether the registrant is a shell company (as defined in Rule 12b-2 of theExchange Act).

 

                       Yes         X                    No ____ 

 

State the number of sharesoutstanding of each of the issuer's classes of common equity, as of the latestpracticable date: There were 5,175,000 shares of Common Stock issued andoutstanding as of December 31, 2006.

 

Transitional Small BusinessDisclosure Format: Yes No _X_

 

 
**PART I

FINANCIAL INFORMATION

Item 1.                    Financial Statements.

Coronado Corp.
*(A Development StageCompany)***Interim ConsolidatedBalance Sheet**
The accompanying notes are an integral part of these financialstatements.
**Coronado Corp.***(A Development StageCompany)***Interim ConsolidatedStatements of Operations

Unaudited**
 

The accompanying notes are an integral part of these financialstatements.
**Coronado Corp.***(A Development StageCompany)***Interim ConsolidatedStatements of Stockholders' Equity (Deficit)

 

 

The accompanying notes are an integral part of these financialstatements.

 
**Coronado Corp.***(A Development StageCompany)***Interim ConsolidatedStatements of Cash Flows

Unaudited**
The accompanying notes are an integral part of these financialstatements.
**Coronado Corp.***(A Development    Stage Company)**Notes to Interim Consolidated    Financial Statements
December 31, 2006 *Unaudited 
 
**1. Organization**
Coronado Corp. (the "Company") is a Nevada corporation incorporated on  January 9, 2006. It is based in San Jose, Costa Rica. During the three-month  period ended of December 31, 2006 the company purchased a wholly owned  subsidiary, "Bosque Tranquilo S.A." in San Jose, Costa Rica on October 12,  2006. 

The Company is a development stage company that intends  to open and operate a dental clinic in Costa Rica. To date, the Company's  activities have been limited to its formation and the raising of equity  capital. The Company's fiscal year end is March 31.
**Going Concern and Liquidity Considerations**
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 at December 31, 2006, the Company had a loss  from operations of $13,314, an accumulated deficit of $17,268, and working  capital equity of $96,609 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 March 31, 2007.

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.

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  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.

 
**2. Significant Accounting Policies**
a) **Basis of Consolidation**
These consolidated financial statements presented are    those of the Company and its wholly-owned subsidiary, Bosque Tranquilo S.A.    All intercompany balances and transactions have been eliminated.

b) **Basis of Presentation
The accounting and reporting policies of the Company conform to U.S.    generally accepted accounting principles (US GAAP) applicable to development    stage companies. 

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

December 31, 2006
 *Unaudited
 
 
**2. Significant Accounting Policies - *Continued*
c) **Use of Estimates**
The preparation of financial statements in conformity    with U.S. generally accepted accounting principles requires management to    make estimates and assumptions that affect the reported amounts of assets    and liabilities and disclosure of contingent assets and liabilities at the    date of the financial statements and the reported amount of revenues and    expenses during the reporting period. Actual results could differ from those    estimates. 

d) **Cash and Cash Equivalents**
Cash and cash equivalents include cash in banks, money    market funds, and certificates of term deposits with maturities of less than    three months from inception, which are readily convertible to known amounts    of cash and which, in the opinion of management, are subject to an    insignificant risk of loss in value.

e) **Fair Value of Financial Instruments and Derivative    Financial Instruments**
The Company has adopted Statement of Financial Accounting    Standards ("SFAS") Number 119, "Disclosure About Derivative Financial    Instruments and Fair Value of Financial Instruments." The carrying amount of    accrued liabilities approximates its fair value because of the short    maturity of this item. Certain fair value estimates may be subject to and    involve, uncertainties and matters of significant judgment, and, therefore,    cannot be determined with precision. Changes in assumptions could    significantly affect these estimates. The Company does not hold or issue    financial instruments for trading purposes, nor does it utilize derivative    instruments in the management of its foreign exchange, commodity price or    interest rate market risks.

f) **Segmented Reporting**
SFAS Number 131, "Disclosure About Segments of an    Enterprise and Related Information", changed the way public companies report    information about segments of their business in their quarterly reports    issued to shareholders. It also requires entity-wide disclosures about the    products and services an entity provides, the material countries in which it    holds assets and reports revenues and its major customers. The Company    presently operates only in Costa Rica.

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

December 31, 2006
 *Unaudited
 
 
****2. Significant AccountingPolicies**- *Continued*
g) **Federal Income Taxes**
Deferred income taxes are reported for timing differences    between items of income or expense reported in the financial statements and    those reported for income tax purposes in accordance with SFAS Number 109,    "Accounting for Income Taxes", which requires the use of the asset/liability    method of accounting for income taxes. Deferred income taxes and tax    benefits 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 bases, and for tax loss and    credit carryforwards. Deferred tax assets and liabilities are measured using    enacted tax rates expected to apply to taxable income in the years in which    those temporary differences are expected to be recovered or settled. The    Company provides for deferred taxes for the estimated future tax effects    attributable to temporary differences and carryforwards when realization is    more likely than not.

h) **Earnings (Loss) per Share**
The Company has adopted Financial Accounting Standards    Board ("FASB") Statement Number 128, "Earnings per Share," ("EPS") which    requires presentation of basic and diluted EPS on the face of the income    statement for all entities with complex capital structures and requires a    reconciliation of the numerator and denominator of the basic EPS computation    to the numerator and denominator of the diluted EPS computation. In the    accompanying financial statements, basic earnings (loss) per share is    computed by dividing net income/loss by the weighted average number of    shares of common stock outstanding during the period.

i) **Foreign Currency Transactions**
The Company's functional currency is the Costa Rican    Colone. The Company's reporting currency is the U.S. Dollar. All    transactions initiated in Colones are translated to U.S. Dollars in    accordance with SFAS No. 52 "Foreign Currency Translation" as follows:

(i) Monetary assets and liabilities at the rate of      exchange in effect at the balance sheet date;

(ii) All other assets and liabilities at historical      rates; and

(iii) Revenue and expense items at the average rate of      exchange prevailing during the period.

Adjustments arising from such translations are deferred    until realization and are included as a separate component of stockholders'    equity as a component of comprehensive income or loss. Therefore,    translation adjustments are not included in determining net income (loss)    but reported as other comprehensive income.

For foreign currency transactions, the Company translates    these amounts to the Company's functional currency at the exchange rate    effective on the invoice date. If the exchange rate changes between the time    of purchase and the time actual payment is made, a foreign exchange    transaction gain or loss results which is included in determining net income    for the period.

No significant realized exchange gains or losses were    recorded in the period ended December 31, 2006.
**Coronado Corp.***(A Development    Stage Company)
**Notes to Interim Consolidated    Financial Statements

December 31, 2006
 *Unaudited
 
 
**2. Significant Accounting Policies - *Continued*
 

j) **Goodwill**
The Company adopted the provisions of Statement of    Financial Accounting Standards ("SFAS") No. 142, *"Goodwill and Other    Intangible Assets",*which requires that goodwill and intangible assets    with indefinite lives should not be amortized but rather be tested for    impairment at least annually or sooner whenever events or changes in    circumstances indicate that they may be impaired.

k) **Stock-Based Compensation**
The Company adopted the provisions of Statement of    Financial Accounting Standards ("SFAS") No. 123(R), *"Share-Based Payment"*,    which establishes accounting for equity instruments exchanged for employee    services. Under the provisions of SFAS 123(R), stock-based compensation cost    is measured at the grant date, based on the calculated fair value of the    award, and is recognized as an expense over the employees' requisite service    period (generally the vesting period of the equity grant). The Company    accounts for share-based payments to non-employees, in accordance with SFAS    123 (as originally issued) and Emerging Issues Task Force Issue No. 96-18,    *"Accounting for Equity Instruments That Are Issued to Other Than    Employees for Acquiring, or in Conjunction with Selling, Goods or Services"*.

l) **Comprehensive Income (Loss)**
SFAS No. 130, "Reporting Comprehensive Income",    establishes standards for reporting and display of comprehensive income and    its components in a full set of general-purpose financial statements. For    the period ended December 31, 2006, the Company had no items of other    comprehensive income. Therefore, net loss equals comprehensive loss for the    period ended December 31, 2006. 
**Revenue Recognition**
The Company recognizes revenue from the sale of products    and services in accordance with Securities and Exchange Commission Staff    Accounting Bulletin No. 104 ("SAB 104"), "Revenue Recognition in Financial    Statements." Revenue will consist of dental services income and will be    recognized only when all of the following criteria have been met:

(i) Persuasive evidence for an agreement exists;

(ii) Delivery has occurred;

(iii) The fee is fixed or determinable; and 

(iv) Revenue is reasonably assured.
****** ****Coronado Corp.***(A Development    Stage Company)
**Notes to Interim Consolidated    Financial Statements

December 31, 2006
 *Unaudited
 
 
**3. Capital Stock**
a) **Authorized Stock**
The Company has authorized 100,000,000 common shares with    $0.001 par value. Each common share entitles the holder to one vote, in    person or proxy, on any matter on which action of the stockholder of the    corporation is sought.

b) **Share Issuances**
Since the inception of the Company (January 9, 2006) to December 31,    2006, the Company has issued 5,175,000 common shares, in exchange for    incorporation costs of $454 and cash of $114,000, being $5,175 for par value    shares and $109,279 for additional paid in capital. 1,500,000 common shares    were sold to an officer and director, 1,575,000 shares were sold to the    spouse of an officer and director of the Company, and 2,100,000 shares were    sold to 36 independent investors. 
**4. Income Taxes 

The company has incurred operating losses of $17,268, which, if unutilized,  will expire in 2026. Future tax benefits, which may arise as a result of these  losses, have not been recognized in these financial statements, and have been  off set by a valuation allowance. 

Details of future income tax assets are as follows:

Future income tax assets:
2006
   Net operating loss (from inception to    December 31, 2006)
$17,268
   Statutory tax rate (combined federal and    state)34%
   Non-capital tax loss5,871
   Valuation allowance(5,871)
$-
The potential future tax benefits of these losses have not  been recognized in these financial statements due to uncertainty of their  realization. When the future utilization of some portion of the carryforwards  is determined not to be "more likely than not," a valuation allowance is  provided to reduce the recorded tax benefits from such assets.
****
 

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

December 31, 2006
 *Unaudited
 **5.**Goodwill**
During the three-months ended December 31, 2006, we recorded goodwill  resulting from the acquisition of Bosque Tranquilo S.A. on October 12, 2007.  We paid $600 for 100% ownership of Bosque Tranquilo S.A., a private company  incorporated May 13, 2006 in Costa Rica with no operating history.

 
**6.**New Accounting Pronouncements
Recent accounting pronouncements that are listed below did and/or are not  currently expected to have a material effect on the Company's financial  statements.
**FASB Statements:**
In December 2004, the FASB issued Financial Accounting  Standards No 123 (revised 2004) (SFAS 123R), *"Share-Based Payment."*  SFAS 123R replaces SFAS No. 123*, "Accounting for Stock-Based Compensation,"*and supersedes APB Opinion No. 25, *"Accounting for Stock Issued to  Employees*." SFAS 123R requires compensation expense, measured as the fair  value at the grant date, related to share-based payment transactions to be  recognized in the financial statements over the period that an employee  provides service in exchange for the award. SFAS 123R is effective in fiscal  periods that begin after December 15, 2005. 

In December 2004, FASB issued Financial Accounting  Standards No. 153, *"Exchanges of Non-monetary Assets, an amendment of APB  Opinion No. 29, Accounting for Non-Monetary Transactions (SFAS 153)."* This  statement amends APB Opinion 29 to eliminate the exception for non-monetary  exchanges of similar productive assets and replaces it with a general  exception for exchanges of non-monetary assets that do not have commercial  substance. Under SFAS 153, if a non-monetary exchange of similar productive  assets meets a commercial-substance criterion and fair value is determinable,  the transaction must be accounted for at fair value resulting in recognition  of any gain or loss. SFAS 153 is effective in fiscal periods that begin after  June 15, 2005. 

In May 2005, the FASB issued SFAS No. 154, *"Accounting  Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB  Statement No. 3."* This statement changes the requirements for the  accounting for and reporting of a change in accounting principle. Previously,  Opinion 20 required that most voluntary changes in accounting principle be  recognized by including in net income of the period of change the cumulative  effect of changing to a new principle. This statement requires retrospective  application to prior periods' financial statements of changes in accounting  principle, when practicable. 

 

 

 

 

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

December 31, 2006
 *Unaudited
 *Unaudited***6.**New Accounting Pronouncements***- Continued***In February 2006, FASB issued Financial Accounting  Standards No. 155, "Accounting for Certain Hybrid Financial Instruments - an  amendment of FASB Statements No. 133 and 140. This Statement amends FASB  Statements No. 133, *Accounting for Derivative Instruments and Hedging  Activities,* and No. 140, *Accounting for Transfers and Servicing of  Financial Assets and Extinguishments of Liabilities.* This Statement  resolves issues addressed in Statement 133 Implementation Issue No. D1, *"Application of Statement 133 to Beneficial Interests in Securitized Financial  Assets."* SFAS 155 is effective for all financial instruments acquired or  issued after the beginning of an entity's first fiscal year that begins after  September 15, 2006.

In March 2006, FASB issued Financial Accounting Standards  No. 156, "Accounting for Servicing of Financial Assets - an amendment of FASB  Statement No. 140." This Statement amends FASB Statement No. 140, Accounting  for Transfers and Servicing of Financial Assets and Extinguishments of  Liabilities, with respect to the accounting for separately recognized  servicing assets and servicing liabilities. SFAS 156 is effective in the first  fiscal year that begins after September 15, 2006.

In September 2006, FASB issued Financial Accounting  Standards No. 157, "Fair Value Measurements." This Statement defines fair  value, establishes a framework for measuring fair value in generally accepted  accounting principles (GAAP), and expands disclosures about fair value  measurements. This Statement applies under other accounting pronouncements  that require or permit fair value measurements, the Board having previously  concluded in those accounting pronouncements that fair value is the relevant  measurement attribute. Accordingly, this Statement does not require any new  fair value measurements. However, for some entities, the application of this  Statement will change current practice. SFAS 157 is effective in the first  fiscal year that begins after November 15, 2007.

In September 2006, FASB issued Financial Accounting  Standards No. 158*, "Employers' Accounting for Defined Benefit Pension and  Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106,  and 132(R)."* This Statement improves financial reporting by requiring an  employer to recognize the overfunded or underfunded status of a defined  benefit postretirement plan (other than a multiemployer plan) as an asset or  liability in its statement of financial position and to recognize changes in  that funded status in the year in which the changes occur through  comprehensive income of a business entity or changes in unrestricted net  assets of a not-for-profit organization. This Statement also improves  financial reporting by requiring an employer to measure the funded status of a  plan as of the date of its year-end statement of financial position, with  limited exceptions. SFAS 158 is effective. An employer with publicly traded  equity securities is required to initially recognize the funded status of a  defined benefit postretirement plan and to provide the required disclosures as  of the end of the first fiscal year ending after December 15, 2006.
** 

7.**Subsequent Event**
On February 1, 2007, the Company entered into an agreement  to lease an approximately 1,000 sq. ft. space to be used for our dental  clinic, located in San Jose, Costa Rica. The lease is for a one year term at  $700 per month.
******Item 2.**Management's Discussion and Analysis or Plan ofOperation**
This report includes a number of forward-looking statements that reflect ourcurrent views with respect to future events and financial performance. Forwardlooking statements are often identified by words such as: believe, expect,estimate, anticipate, intend, project and similar expressions, or words which,by their nature, refer to future events. You should not place any unduecertainty on these forward looking statements, which apply only as of the dateof this quarterly. These forward looking statements are subject to certain risksand uncertainties that could cause actual results to differ materially from ourpredictions.
**Results of Operations**
Our cash in the bank at December 31, 2006, was $98,247. In order to satisfyour cash requirements, we completed our offering pursuant to our SB-2Registration Statement, which became effective on July 31, 2006. At the close ofthe offering on November 15, 2006, 2,100,000 shares were issued to 38shareholders at $0.04 per share for proceeds of $84,000. 

For the period from inception (January 9,2006) to December 31, 2006, we hadno revenues and incurred net operating losses of $17,268 consisting of generaloperating expenses incurred in connection with the day to day operation of ourbusiness and the preparation and filing of our periodic reports.

Net cash provided by financing activities since inception (January 9,2006)through December 31, 2006 was $114,454, consisting of $30,454 raised from theprivate sale of stock to our officers and directors, and $84,000 raised pursuantto our SB-2 Registration Statement.

Our auditors have expressed the opinion that in our current state, there issubstantial doubt about our ability to continue as a going concern, refer toNote 1 of our financial statements.
**Plan of Operation

 

Following is an outline of our plan of operation for the next twelve months:

In October 2006, Coronado Corp. acquired a Costa Rican company named BosqueTranquilo S.A. ("Bosque Tranquilo") Coronado Corp. owns 100% of the shares ofBosque Tranquilo . Bosque Tranquilo was acquired for banking purposes, as wellas holding the assets for the dental clinic. All the receipts and payments forthe dental clinic in Costa Rica will flow through this corporation.

Effective February 1, 2007, we started operations by renting a 1,000 squarefoot office space in Rohrmoser, San Jose, Costa Rica at a rate of $700 a month(pre-paid six months in advance) under the terms of a one year, renewable leaseagreement. 

We are currently negotiating with Camacho Construction S.A., a constructionfirm that specializes in the construction and renovations of medical facilitiesin Costa Rica, to renovate our office space to create a three (dental) chairclinic. We anticipate that renovations will be completed by the end of March2007.

While renovations are ongoing, management intends to acquire all theequipment required for the clinic, as well as all of the medical/dentalinstruments and supplies. We anticipate that we will have all of the equipmentpurchased and installed by early April of 2007.

Once all of the dental equipment has been installed, it is required to beinspected by the Minister of Health in Costa Rica before the clinic is granted alicense to operate. In Costa Rica, such permits can take as long as four monthsbefore being issued. As such, we anticipate that the clinic will be operationalby August of 2007.

Once we have received the operating permits, the Company will hire a dentalassistant to help with the day to day operations of the clinic.

The following chart is the intended allocation of the offering over next 12months of the capital raised from our offering:

 
***Expenditure Item***Office Space/Lease8,400Furniture 3,000Medical Supplies3,000Insurance1,500Salaries2,000Professional Fees15,000Renovations14,000Office & Miscellaneous Exp 2,000Tools & Equipment45,000Promotion and Advertising1,500**Total****$84,000**
Once we have leased office space and hired a Dental Assistant, we willpromote our services to the public by way of newspaper advertising, word ofmouth, placement of brochures in hotel lobbies, and a large billboard sign thatwill be erected in front of the clinic. We feel that our advertising efforts,combined with the location of the clinic, will be an important part to thesuccess of our business development, acting as an effective way to introduceCoronado and its products to the public. Our advertising will promote highquality dental work at a reasonable price. Special emphasis will be placed oncosmetic "Movie Star Teeth" procedures such as teeth cleaning, whitening,porcelain crowns, and veneers. 

If we experience a shortfall of funds, our officers and directors havegenerally indicated a willingness to provide services and financialcontributions if necessary. However, there are presently no agreements,arrangements, commitments, or specific understandings, either verbally or inwriting, between the officers and directors and Coronado Corp. During the firstyear of operations, our officers and directors will also provide their labor atno charge. 

The difference between having the ability to sustain our cash flowrequirements over the next twelve months and the need for additional outsidefunding will depend on how fast we can generate sales revenue. 

We anticipate generating revenue in the last six months of the next year.
**Off-Balance Sheet Arrangements**
We have no off-balance sheet arrangements.
**Critical Accounting Policies**
a) **Basis of Consolidation**
These consolidated financial statements presented are    those of the Company and its wholly-owned subsidiary, Bosque Tranquilo S.A.    All intercompany balances and transactions have been eliminated.

b) **Basis of Presentation**
The accounting and reporting policies of the Company    conform to U.S. generally accepted accounting principles (US GAAP)    applicable to development stage companies.

c) **Use of Estimates**
The preparation of financial statements in conformity    with U.S. generally accepted accounting principles requires management to    make estimates and assumptions that affect the reported amounts of assets    and liabilities and disclosure of contingent assets and liabilities at the    date of the financial statements and the reported amount of revenues and    expenses during the reporting period. Actual results could differ from those    estimates. 

d) **Cash and Cash Equivalents**
Cash and cash equivalents include cash in banks, money    market funds, and certificates of term deposits with maturities of less than    three months from inception, which are readily convertible to known amounts    of cash and which, in the opinion of management, are subject to an    insignificant risk of loss in value.

e) **Fair Value of Financial Instruments and Derivative    Financial Instruments**
The Company has adopted Statement of Financial Accounting    Standards ("SFAS") Number 119, "Disclosure About Derivative Financial    Instruments and Fair Value of Financial Instruments." The carrying amount of    accrued liabilities approximates its fair value because of the short    maturity of this item. Certain fair value estimates may be subject to and    involve, uncertainties and matters of significant judgment, and, therefore,    cannot be determined with precision. Changes in assumptions could    significantly affect these estimates. The Company does not hold or issue    financial instruments for trading purposes, nor does it utilize derivative    instruments in the management of its foreign exchange, commodity price or    interest rate market risks.

f) **Segmented Reporting**
SFAS Number 131, "Disclosure About Segments of an    Enterprise and Related Information", changed the way public companies report    information about segments of their business in their quarterly reports    issued to shareholders. It also requires entity-wide disclosures about the    products and services an entity provides, the material countries in which it    holds assets and reports revenues and its major customers. The Company    presently operates only in Costa Rica.

g) **Federal Income Taxes**
Deferred income taxes are reported for timing differences    between items of income or expense reported in the financial statements and    those reported for income tax purposes in accordance with SFAS Number 109,    "Accounting for Income Taxes", which requires the use of the asset/liability    method of accounting for income taxes. Deferred income taxes and tax    benefits 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 bases, and for tax loss and    credit carryforwards. Deferred tax assets and liabilities are measured using    enacted tax rates expected to apply to taxable income in the years in which    those temporary differences are expected to be recovered or settled. The    Company provides for deferred taxes for the estimated future tax effects    attributable to temporary differences and carryforwards when realization is    more likely than not.

h) **Earnings (Loss) per Share**
The Company has adopted Financial Accounting Standards    Board ("FASB") Statement Number 128, "Earnings per Share," ("EPS") which    requires presentation of basic and diluted EPS on the face of the income    statement for all entities with complex capital structures and requires a    reconciliation of the numerator and denominator of the basic EPS computation    to the numerator and denominator of the diluted EPS computation. In the    accompanying financial statements, basic earnings (loss) per share is    computed by dividing net income/loss by the weighted average number of    shares of common stock outstanding during the period.

i) **Foreign Currency Transactions**
The Company's functional currency is the Costa Rican    Colone. The Company's reporting currency is the U.S. Dollar. All    transactions initiated in Colones are translated to U.S. Dollars in    accordance with SFAS No. 52 "Foreign Currency Translation" as follows:

(i) Monetary assets and liabilities at the rate of      exchange in effect at the balance sheet date;

(ii) All other assets and liabilities at historical      rates; and

(iii) Revenue and expense items at the average rate of      exchange prevailing during the period.

Adjustments arising from such translations are deferred    until realization and are included as a separate component of stockholders'    equity as a component of comprehensive income or loss. Therefore,    translation adjustments are not included in determining net income (loss)    but reported as other comprehensive income.

For foreign currency transactions, the Company translates    these amounts to the Company's functional currency at the exchange rate    effective on the invoice date. If the exchange rate changes between the time    of purchase and the time actual payment is made, a foreign exchange    transaction gain or loss results which is included in determining net income    for the period.

No significant realized exchange gains or losses were    recorded in the period ended December 31, 2006.

j) **Goodwill**
The Company adopted the provisions of Statement of    Financial Accounting Standards ("SFAS") No. 142, *"Goodwill and Other    Intangible Assets",*which requires that goodwill and intangible assets    with indefinite lives should not be amortized but rather be tested for    impairment at least annually or sooner whenever events or changes in    circumstances indicate that they may be impaired.

k) **Stock-Based Compensation**
The Company adopted the provisions of Statement of    Financial Accounting Standards ("SFAS") No. 123(R), *"Share-Based Payment"*,    which establishes accounting for equity instruments exchanged for employee    services. Under the provisions of SFAS 123(R), stock-based compensation cost    is measured at the grant date, based on the calculated fair value of the    award, and is recognized as an expense over the employees' requisite service    period (generally the vesting period of the equity grant). The Company    accounts for share-based payments to non-employees, in accordance with SFAS    123 (as originally issued) and Emerging Issues Task Force Issue No. 96-18,    *"Accounting for Equity Instruments That Are Issued to Other Than    Employees for Acquiring, or in Conjunction with Selling, Goods or Services"*.

l) **Comprehensive Income (Loss)**
SFAS No. 130, "Reporting Comprehensive Income",    establishes standards for reporting and display of comprehensive income and    its components in a full set of general-purpose financial statements. For    the period ended December 31, 2006, the Company had no items of other    comprehensive income. Therefore, net loss equals comprehensive loss for the    period ended December 31, 2006. 
**Revenue Recognition**
The Company recognizes revenue from the sale of products    and services in accordance with Securities and Exchange Commission Staff    Accounting Bulletin No. 104 ("SAB 104"), "Revenue Recognition in Financial    Statements." Revenue will consist of dental services income and will be    recognized only when all of the following criteria have been met:

(v) Persuasive evidence for an agreement exists;

(vi) Delivery has occurred;

(vii) The fee is fixed or determinable; and 

(viii) Revenue is reasonably assured.
**New Accounting Pronouncements**
Recent accounting pronouncements that are listed below did and/or are not  currently expected to have a material effect on the Company's financial  statements.
**FASB Statements:**
In December 2004, the FASB issued Financial Accounting  Standards No 123 (revised 2004) (SFAS 123R), *"Share-Based Payment."*  SFAS 123R replaces SFAS No. 123*, "Accounting for Stock-Based Compensation,"*and supersedes APB Opinion No. 25, *"Accounting for Stock Issued to  Employees*." SFAS 123R requires compensation expense, measured as the fair  value at the grant date, related to share-based payment transactions to be  recognized in the financial statements over the period that an employee  provides service in exchange for the award. SFAS 123R is effective in fiscal  periods that begin after December 15, 2005. 

In December 2004, FASB issued Financial Accounting  Standards No. 153, *"Exchanges of Non-monetary Assets, an amendment of APB  Opinion No. 29, Accounting for Non-Monetary Transactions (SFAS 153)."* This  statement amends APB Opinion 29 to eliminate the exception for non-monetary  exchanges of similar productive assets and replaces it with a general  exception for exchanges of non-monetary assets that do not have commercial  substance. Under SFAS 153, if a non-monetary exchange of similar productive  assets meets a commercial-substance criterion and fair value is determinable,  the transaction must be accounted for at fair value resulting in recognition  of any gain or loss. SFAS 153 is effective in fiscal periods that begin after  June 15, 2005. 

In May 2005, the FASB issued SFAS No. 154, *"Accounting  Changes and Error Corrections, a replacement of APB Opinion No. 20 and FASB  Statement No. 3."* This statement changes the requirements for the  accounting for and reporting of a change in accounting principle. Previously,  Opinion 20 required that most voluntary changes in accounting principle be  recognized by including in net income of the period of change the cumulative  effect of changing to a new principle. This statement requires retrospective  application to prior periods' financial statements of changes in accounting  principle, when practicable. 

In February 2006, FASB issued Financial Accounting  Standards No. 155, "Accounting for Certain Hybrid Financial Instruments - an  amendment of FASB Statements No. 133 and 140. This Statement amends FASB  Statements No. 133, *Accounting for Derivative Instruments and Hedging  Activities,* and No. 140, *Accounting for Transfers and Servicing of  Financial Assets and Extinguishments of Liabilities.* This Statement  resolves issues addressed in Statement 133 Implementation Issue No. D1, *"Application of Statement 133 to Beneficial Interests in Securitized Financial  Assets."* SFAS 155 is effective for all financial instruments acquired or  issued after the beginning of an entity's first fiscal year that begins after  September 15, 2006.

In March 2006, FASB issued Financial Accounting Standards  No. 156, "Accounting for Servicing of Financial Assets - an amendment of FASB  Statement No. 140." This Statement amends FASB Statement No. 140, Accounting  for Transfers and Servicing of Financial Assets and Extinguishments of  Liabilities, with respect to the accounting for separately recognized  servicing assets and servicing liabilities. SFAS 156 is effective in the first  fiscal year that begins after September 15, 2006.

In September 2006, FASB issued Financial Accounting  Standards No. 157, "Fair Value Measurements." This Statement defines fair  value, establishes a framework for measuring fair value in generally accepted  accounting principles (GAAP), and expands disclosures about fair value  measurements. This Statement applies under other accounting pronouncements  that require or permit fair value measurements, the Board having previously  concluded in those accounting pronouncements that fair value is the relevant  measurement attribute. Accordingly, this Statement does not require any new  fair value measurements. However, for some entities, the application of this  Statement will change current practice. SFAS 157 is effective in the first  fiscal year that begins after November 15, 2007.

In September 2006, FASB issued Financial Accounting  Standards No. 158*, "Employers' Accounting for Defined Benefit Pension and  Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106,  and 132(R)."* This Statement improves financial reporting by requiring an  employer to recognize the overfunded or underfunded status of a defined  benefit postretirement plan (other than a multiemployer plan) as an asset or  liability in its statement of financial position and to recognize changes in  that funded status in the year in which the changes occur through  comprehensive income of a business entity or changes in unrestricted net  assets of a not-for-profit organization. This Statement also improves  financial reporting by requiring an employer to measure the funded status of a  plan as of the date of its year-end statement of financial position, with  limited exceptions. SFAS 158 is effective. An employer with publicly traded  equity securities is required to initially recognize the funded status of a  defined benefit postretirement plan and to provide the required disclosures as  of the end of the first fiscal year ending after December 15, 2006.

 
**ITEM 3. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures**
Under the supervision and with the participation of our management, includingour principal executive officer and principal financial officer, we haveconducted an evaluation of the effectiveness of the design and operation of ourdisclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e)under the Securities and Exchange Act of 1934, as of the end of the periodcovered by this report. Based on this evaluation, our principal executiveofficer and principal financial officer concluded as of the evaluation date thatour disclosure controls and procedures were effective such that the materialinformation required to be included in our Securities and Exchange Commissionreports is recorded, processed, summarized and reported within the time periodsspecified in SEC rules and forms relating to our company, particularly duringthe period when this report was being prepared.

Additionally, there were no significant changes in our internal controls orin other factors that could significantly affect these controls subsequent tothe evaluation date. We have not identified any significant deficiencies ormaterial weaknesses in our internal controls, and therefore there were nocorrective actions taken.

 
**PART II - OTHER INFORMATION

ITEM 6. EXHIBITS**
The following exhibits are included with this registration statement filing.Those marked with an asterisk and required to be filed hereunder, areincorporated by reference and can be found in their entirety in our originalForm SB-2 Registration Statement, filed under SEC File Number 333-135037, at theSEC website at www.sec.gov:

Exhibit

NumberDescription
3.1 Articles of Incorporation*

3.2 Bylaws*

31.1 Sec. 302 Certification of Principal Executive Officer

31.2 Sec. 302 Certification of Principal Financial Officer

32.1 Sec. 906 Certification of Principal Executive Officer 

32.2 Sec. 906 Certification of Principal Financial Officer 
**SIGNATURES**
Pursuant to the requirements of Section 13(a) or 15(d) of the SecuritiesExchange Act of 1934, the Registrant has duly caused this report to be signed onits behalf by the undersigned, thereunto duly authorized.

 

February 13, 2007                                                                      Coronado Corp., Registrant

By: /s/ Alejandro                    Quesada

                    ______________________________

Alejandro                    Quesada, Director, President. 

Principal                    Executive Officer. 

 

February 13, 2007 

By: /s/ Shawn                    Phillips

                    _______________________________

Shawn Phillips,                    Director, Secretary, Treasurer. 

Principal                    Financial Officer

 

In accordance with the Exchange Act,this report has been signed below by the following persons on behalf of theregistrant and in the capacities and on the dates indicated.

 

February 13, 2007                                                                      Coronado Corp., Registrant

By: /s/ Alejandro                    Quesada

                    ______________________________

Alejandro                    Quesada, Director, President. 

Principal                    Executive Officer. 

February 13, 2007                                                                      By: /s/ Shawn Phillips

                    _______________________________

Shawn Phillips,                    Director, Secretary, Treasurer. 

Principal                    Financial Officer
** ************************************************************