10QSB 1 jurak061670_10q.txt QUARTERLY REPORT FOR PERIOD ENDED 2-28-2006 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 28, 2006 [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File Number 333-61801 JURAK CORPORATION WORLD WIDE, INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) MINNESOTA 88-0407679 ------------------------------- ------------------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 1181 Grier Drive, Suite C, Las Vegas, NV 89119-3746 --------------------------------------------------- (Address of principal executive offices) (702) 914-9688 ------------------------------------------------ (Issuer's telephone number, including area code) N/A ---------------------------------------------------- (Former name, former address and former fiscal year, If changed since last report) Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ______ No __X___ State 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 past 12 months (or for such shorter period that the issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes __X___ No ______ Applicable only to issuers involved in bankruptcy proceedings during the preceeding five years N/A Check whether the issuer filed all document required to be filed by Section 12, 13 and 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes ______ No __X___ State the number of shares outstanding of each of the issuer's classes of common equity as of the latest practicable date: Class Common Stock, .001 par value Outstanding as of January 19, 2006 44,767,267 Transitional Small Business Disclosure Format (check one) Yes ______ No __X___ Page PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Condensed Balance Sheets February 28, 2006 (Unaudited) and May 31, 2005 (Audited) 1 Statements of Operations Three and nine months ended February 28, 2006 and 2005 (Unaudited) 2 Condensed Statements of Cash Flows Nine months ended February 28, 2006 and 2005 (Unaudited) 3 Selected Notes to Condensed Financial Statements (Unaudited) 4-5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Item 3. Controls and Procedures 7 PART II. OTHER INFORMATION Item 1. Legal Proceeding 8 Item 2. Changes in Securities 8 Item 3. Defaults Upon Senior Securities 8 Item 4. Submission of Matters to a Vote of Security Holders 8 Item 5. Other Information 8 Item 6. Exhibits and Reports on Form 8-K 8 (a) Exhibits 8 (b) Reports on Form 8-K 8 Part I. FINANCIAL INFORMATION Item I. FINANCIAL STATEMENTS JURAK CORPORATION WORLD WIDE, INC. BALANCE SHEETS
ASSETS FEBRUARY 28, MAY 31, ------ 2006 2005 ------------ ----------- (UNAUDITED) (AUDITED) CURRENT ASSETS Cash $ 8,653 $ 488 Accounts receivable 145 561 Inventories 66,431 104,194 Prepaid expenses 6,487 12,146 ----------- ----------- Total current assets 81,718 117,389 RESTRICTED CASH 35,544 35,544 DEPOSITS 9,410 9,410 OFFICE FURNISHINGS AND EQUIPMENT, less Accumulated depreciation and amortization of $131,368 and $122,224 in February 28, 2006 and May 31, 2005, respectively 17,832 26,976 ----------- ----------- $ 144,504 $ 189,319 =========== =========== LIABILITIES AND STOCKHOLDERS' DEFICIT ------------------------------------- CURRENT LIABILITIES: Checks issued in excess of bank balance $ -- $ 7,241 Current portion of capital lease obligations 6,033 6,693 Accounts payable 279,573 253,780 Accrued compensation 258,669 268,280 Accrued royalties 125,736 900,736 Payable to stockholder, officer 1,317,241 1,345,813 ----------- ----------- Total current liabilities 1,989,412 2,782,543 LONG-TERM LIABILITIES Capital lease obligations, net current portion 2,160 6,442 ----------- ----------- Total liabilities 1,989,412 2,788,985 ----------- ----------- STOCKHOLDERS' DEFICIT: Convertible preferred stock, par value $.001 per share, 45,368 31,938 Common Stock, par value Additional paid-in capital 2,493,670 915,814 Accumulated deficit (4,383,946) (3,547,418) ----------- ----------- Total stockholders' deficit (1,844,908) (2,599,666) ----------- ----------- Total liabilities and stockholders' $ 144,504 $ 189,319 =========== ===========
See Notes to Financial Statements. 4 JURAK CORPORATION WORLD WIDE, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED FEBRUARY 28, FEBRUARY 28, 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Net Sales $ 380,012 $ 545,009 $ 1,143,473 $ 1,817,864 Cost of sales 96,528 107,673 265,629 399,063 ------------ ------------ ------------ ------------ Gross profit 283,484 437,336 877,844 1,418,801 Selling, general and administrative 489,527 481,073 1,642,897 1,447,153 ------------ ------------ ------------ ------------ Operating loss (206,043) (43,737) (765,053) (58,352) ------------ ------------ ------------ ------------ Interest, net 19,546 29,115 71,476 99,054 ------------ ------------ ------------ ------------ Loss before income tax (225,589) (72,852) (836,529) (157,406) Income tax provision -- -- -- -- ------------ ------------ ------------ ------------ Net loss $ (225,589) $ (72,852) $ (836,529) $ (157,406) ============ ============ ============ ============ Loss per common share - basic and diluted $ (0.00) $ (.00) $ (.02) $ (.00) ============ ============ ============ ============ Weighted average common shares outstanding - basic and diluted 39,722,267 31,789,350 34,715,783 31,506,997 ============ ============ ============ ============
See Notes to Financial Statements. 5 JURAK CORPORATION WORLD WIDE, INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED FEBRUARY 28 2006 2005 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(836,529) $(157,406) Adjustments to reconcile net loss to net cash flows from operating activities: Depreciation and amortization 9,145 10,149 Changes in operating assets and liabilities: Accounts receivable 414 (1,494) Inventories 37,763 23,954 Prepaid expenses 5,659 136,529 Deposits -- 16,144 Accounts payable 25,793 (130,754) Accrued compensation and royalties 365,389 107,137 --------- --------- Net cash provided by (used in) operating activities (392,366) 4,259 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment -- (2,745) --------- --------- Net cash flows provided by (used in) investing activities -- (2,745) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Checks issued in excess of bank balance (7,241) (65,736) Cash received for issuance of common stock 441,286 40,000 Payments on capital lease obligations (4,942) (4,089) Payments on notes payable - stockholders (28,572) 36,010 --------- --------- Net cash provided by (used in) financing activities 400,531 6,185 --------- --------- Increase in cash 8,165 7,699 Cash: Cash, beginning of period 488 -- --------- --------- Cash, end of period $ 8,653 $ 7,699 ========= =========
6 JURAK CORPORATION WORLD WIDE, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) Note 1. Condensed Financial Statements: The condensed balance sheet as of February 28, 2006, the statement of operations for the six and nine months ended February 28, 2006 and February 28, 2005, and the condensed statements of cash flows for the six month periods then ended have been prepared by the Company, without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows at February 28, 2006 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's May 31, 2005 audited financial statements. The results of operations for the six and nine month periods ended February 28, 2006 are not necessarily indicative of the operating results for the full year. Note 2. Inventories: Inventories consist of the following: February 28, May 31, 2006 2005 ------------ ------------ Raw materials $ 5,419 $ 33,951 Finished goods 61,012 70,243 ------------ ------------ Totals $ 66,431 $ 104,194 ============ ============ Note 3. Stockholders' Deficit: During the nine months ended February 28, 2006 the Company sold 1,900,000 shares of common stock for $269,566. Also, as discussed in Note 4. the Company received contributed capital of $165,000 from the Company's CEO. In addition, on November 9, 2005 the Company issued 30,000 shares of common stock in exchange for marketing services valued at $6,720. On January 6, 2006, the Company issued 11,500,000 shares of common stock in exchange for debt totaling $1,150,000 accrued royalty expenses. Note 4. Commitments and Contingencies: On August 4, 2005, the Company entered into an agreement with a consultant for financial consulting services. The agreement stipulates compensation of $10,000 per month for the first 3 months. After 3 months compensation is calculated at 20% of new business generated and capped at $10,000 per month. The agreement also calls for a stock component where the Company's CEO and the Company agree to sell 750,000 and 4,250,000, respectively, shares of common stock to the consultant. The 750,000 shares were earned upon signing the agreement. The fair market value of the stock transferred of $165,000 has been reflected in selling, general and administrative expenses for the nine months ended February 28, 2006 and contributed capital as of February 28, 2006. The 4,250,000 shares of common stock will be earned based on revenue growth due to consultant's effort as follows: 7 END OF SALES NUMBER OF PERIOD INCREASE IN SALES SHARES EARNED ------ ----------------- ------------- 2/4/2006 $1,000,000 850,000 8/4/2006 3,000,000 850,000 8/4/2007 6,000,000 850,000 8/4/2008 12,000,000 850,000 8/4/2010 24,000,000 850,000 Shares will be sold on a prorated basis for each period based on consultant's performance. Any shares not earned during a sales period will carry forward to the next sales period. Note 5. Company's Continued Existence: 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 sustained substantial accumulated losses totaling $4,308,946. At February 28, 2006, the Company's current liabilities exceeded current assets by $1,905,534. Management believes that with improved growth through new customers and continuing to lower operating expenses, the Company can achieve a positive cash flow. In addition, we may need to raise additional capital to meet long term operating requirements. 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION Statements made in this Form 10-QSB that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. The Company intends that such forward-looking statements be subject to the safe harbors for such statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond the control of the Company that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. The Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events. In addition, our business and operations are subject to substantial risks, which increase the uncertainty inherent in such forward-looking statements. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives or plans will be achieved. The Private Securities Litigation Reform Act of 1995 contains a safe harbor for forward-looking statements on which we rely in making such disclosure. In connection with this safe harbor we are hereby identifying important factors that could cause actual results to differ materially from those contained in any forward-looking statements made by or on our behalf. Any such statement is qualified by reference to the cautionary statements included in this Quarterly Report. OVERVIEW Jurak Corporation World Wide, Inc., a Minnesota corporation, currently trades on the Over-the-Counter Bulletin Board under the symbol "JCWW". We are a product-focused company specializing in the herbal supplement industry and market. Our main product is the "Jurak Classic Whole Body Tonic", also known as JC Tonic, which is a herbal supplemental blend of thirty different ingredients comprised primarily of medicinal herbs. The Jurak Classic Whole Body Tonic was first developed in 1943 by Carl Jurak, the father of the founder of our company. The Jurak Classic Whole Body Tonic is marketed in a 42-ounce bottle; a 20-ounce bottle, and a 1 oz mono-dose packaged as 35 doses in a box; all which constitute almost 100% of the sales; the difference being the recent introduction of Company's new product, Helena. We have obtained trademark protection for the name "JC Tonic" within the United States and within Canada. We also own the web sites www.jurak.com, www.jctonic.com and www.tonicman.com. In December 2005, the Company introduced the first of its personal care products called Helena, Whole Body Anti-Aging Skin Rejuvenator. This product was developed as well by Carl Jurak and given to Beverly Hills research chemist and anti-aging skin care expert, David Wood, PhD. and his team to be synergistically re-formulated with other advanced ingredients. It is a revolutionary product that sets new standards in anti-aging treatments. We have obtained trademark protection for the name "Helena" within the United States. We distribute our products through a network marketing system using independent distributors. Network marketing appeals to a wide cross-section of people, particularly those seeking to supplement income, start a home-based business or pursue entrepreneurial opportunities other than conventional full-time employment. We consider our attractive compensation plan and cash bonus pools to be attractive components of our network marketing system. We also believe that our network marketing system is ideally suited to 9 market herbal supplement products because sales of such products are strengthened by ongoing personal contact between our distributors and their customers. Distributors are given the opportunity through sponsored events and raining sessions to network with other distributors, develop selling skills and establish personal goals. We supplement monetary incentives with other forms of recognition in order to further motivate and foster an atmosphere of excitement through our distributor network. RESULTS OF OPERATIONS For the Three Month Period Ended February 28, 2006 Compared to the Three Month ------------------------------------------------------------------------------ Period Ended February 28, 2005. ------------------------------- We incurred a net loss of approximately ($225,589) during the three-month period ended February 28, 2006 compared to a net loss of approximately ($72,852) incurred during the three-month period ended February 28, 2005 (a decrease of $152,737). During the three month period ended February 28, 2006, we generated $380,012 in gross sales compared to $545,009 in gross sales during the three month period ended February 28, 2005 (a decrease of $164,997). Cost of sales decrease during the three month period ended February 28, 2006 to $96,528 from $107,673 for the same period during 2005 (a decrease of $11,145). Therefore, during the three month period ended February 28, 2006, gross profit was ($283,484) compared to gross profit of $437,336 during the three month period ended February 28, 2005 (a decrease of $153,852). During the three month period ended February 28, 2006, we incurred $489,527 in selling, general and administrative expense compared to $481,073 in selling, general and administrative expense incurred during the three month period ended February 28, 2005 (an increase of $8,454). Selling, general and administrative expenses comprised our operating expenses and consisted of: (i)$183,796 in selling expenses; and (ii) $305,731 in general and administrative expenses. Interest expense of $19,546 was incurred during the three month period ended February 28, 2006 compared to other expense of ($29,115) during the same period in 2005. Therefore, during the three month period ended February 28, 2006, net loss was ($225,589) compared to a net loss of ($72,852) incurred during the three month period ended February 28, 2005. Our management anticipates that the profit margin will increase as we acquire new customers and continue to lower our cost of sales and selling, general and administrative expenses. As a result of the above, the Company's net loss for the three-month period ended February 28, 2006 was approximately ($225,589) or ($0.004) per share. For the Nine Month Period Ended February 28, 2006 Compared to the Nine Month ---------------------------------------------------------------------------- Period Ended February 28, 2005. ------------------------------- We incurred a net loss of approximately ($836,529) during the nine-month period ended February 28, 2006 compared to a net loss of approximately ($157,406) incurred during the nine-month period ended February 28, 2005 (an increase of $679,123). During the nine month period ended February 28, 2006, we generated $1,143,473 in gross sales compared to $1,817,864 in gross sales during the nine month period ended February 28, 2005 (a decrease of $674,391). Cost of sales decreased during the nine-month period ended February 28, 2006 to $265,629 from $399,063 for the same period during 2005 (a decrease of $133,434). Therefore, during the nine month period ended February 28, 2006, gross profit was ($877,844) compared to gross profit of ($1,418,801) during the nine month period ended February 28, 2005 (a decrease of ($540,957). During the nine month period ended February 28, 2006, we incurred $1,642,897 in selling, general and administrative expense compared to $1,477,153 in selling, general and administrative expense incurred during the nine month period ended February 28, 2005 (an increase of $165,744). Selling, general and administrative expenses comprised our operating expenses and consisted of: (i) $617,747 in selling expenses; and (ii) $1,025,450 in general and administrative expenses. Interest expense of $71,476 was incurred during the nine month period ended February 28, 2006 compared to other expense of $99,054 during the same period in 2005. Therefore, during the nine-month period ended February 28, 2006, net loss was ($836,529) compared to a net loss of ($157,406) incurred during the nine month period ended February 28, 2005. Our management anticipates that the profit margin will increase as we acquire new customers and continue to lower our cost of sales and selling, general and administrative expenses. As a result of the above, the Company's net loss for the nine-month period ended February 28, 2006 was approximately ($836,529) or ($0.02) per share. 10 LIQUIDITY AND CAPITAL RESOURCES Nine-Month Period Ended February 28, 2006 We have historically had more expenses and cost of sales than revenue in each year of our operations. The accumulated deficit as of February 28, 2006 was ($4,383,946) and current liabilities are in excess of current assets. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt securities and the generation of sales revenue. In connection with our business plan, management anticipates that there may be additional increases in working expenses and capital expenditures relating to operating expenses. We intend to finance these expenses with further issuances of our securities and revenues from operations. Therefore, we expect we may need to raise additional capital and increase our revenues to meet long-term operating requirements. As of the nine-month period ended February 28, 2006, our current assets were $81,718 and our current liabilities were $1,987,252 which resulted in a working capital deficit of ($1,905,534). As of the nine-month period ended February 28, 2006, our total assets were $144,504 consisting of: (i) $8,653 in cash and cash equivalents; (ii) $147 in accounts receivable; (iii) $66,431 in inventories; (iv) $6,487 in prepaid expenses; (v) $35,544 in restricted cash; (vi) $9,410 in deposits; and (vii) $17,832 in net valuation of office furnishings and equipment. As of the nine-month period ended February 28, 2006, our total liabilities were $1,989,412 consisting of: (i) $1,317,241 payable to stockholder/officer; (ii) $125,736 in accrued royalties; (iii) $258,669 in accrued compensation; (iv) $279,573 in accounts payable; and (v) $6,033 in current and long-term capital lease obligation. See " - Material Commitments" below. During the nine month period ended February 28, 2006, net cash flows used in operating activities was ($392,366) consisting primarily of a net loss of ($836,529), which was adjusted by $9,145 for depreciation, $37,763 for inventory, $25,793 in accounts payable, $5,659 in prepaid expenses, and $365,389 in accrued compensation and royalties and $414 in accounts receivable. During the nine month period ended February 28, 2006, net cash flows used in or from investing activities was $0. During the nine month period ended February 28, 2006, net cash flows from financing activities was $400,531 consisting primarily of $441,286 in cash received for issuance of common stock, which was adjusted by ($28,572) in payments on notes payable- stockholder, ($4,942) in payments on capital lease obligations and ($7,241) from checks issued in excess of bank balance. PLAN OF OPERATION As of the date of this Quarterly Report, we have generated revenue from operations and continue to rely upon internally generated funds and advances, funds from the sale of shares of stock and loans from our shareholders and private investors to finance our operations and growth. Management anticipates a possible increase in operating expenses and capital expenditures relating to its business operations. We may finance further expenditures with future issuances of our restricted common stock. We believe that potential sales revenues and any private placements of equity capital and debt financing, if successful, may be adequate to fund our operations over the next year. We may encounter business endeavors that require significant cash commitments or unanticipated problems or expenses that could result in a requirement for additional cash before that time. If we raise additional funds through the issuance of equity or convertible debt securities other than to current shareholders, the percentage ownership of our current shareholders would be reduced, and such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of potential marketing opportunities for our products, which could significantly and materially restrict our business operations. As of the date of this Quarterly Report, management believes that an estimated $2,000,000 to $5,000,000 is required over the next two years for payment of expenses associated with our ongoing business operations. Management believes that we can satisfy our cash requirements for approximately the next twelve months based on sales revenues, proceeds received from private placement offerings, and our ability to obtain advances or equity private placements from certain investors and other parties, as necessary. 11 As of the date of this Quarterly Report, there is substantial doubt regarding our ability to continue as a going concern as we have not generated sufficient cash flow to fund our business operations and material commitments. We must raise additional capital. We have not generated sufficient cash flow in the past to fund our operations and activities. Historically, we have relied upon internally generated funds, funds from the sale of shares of stock and loans from our shareholders and private investors to finance our operations and growth. Our future success and viability are entirely dependent upon our current management to generate revenues from our business operations and raise additional capital through further private offerings of our stock or loans from private investors. Management is optimistic that we will be successful in our capital raising efforts. There can be no assurance, however, that we will be able to generate sufficient revenues or raise additional capital. Our failure to successfully generate sufficient revenues and/or raise additional capital will have a material and adverse affect upon us and our shareholders. MATERIAL COMMITMENTS In connection with our business operations, we incurred liability or borrowed funds pursuant to various contractual arrangements representing the following material commitments. Royalty Agreement On approximately January 1, 1999, we and Jurak Holdings Limited, a corporation organized under the laws of the Province of Alberta and an affiliate of our Chief Executive Officer and a director (the "Jurak"), entered into an intellectual properly license agreement (the "License Agreement"). Pursuant to the terms and provisions of the License Agreement, we are required to pay a minimum royalty fee of $10,000 for fiscal year 1999, $10,000 for fiscal year 2000, $100,000 for fiscal year 2001, $200,000 for fiscal year 2002, and $500,000 for fiscal year 2003 and each calendar year thereafter during the first ten years of the License Agreement (the "Minimum Royalty Fee"). Furthermore, in addition to the Minimum Royalty Payment, we are required to pay a continuing royalty fee of the percent of the net sales price of all license products sold under the License Agreement (the "Continuing Royalty Fee") in excess of the minimum royalty fee. A significant and estimate material agreement for us for fiscal year 2005 and 2006 are the amounts of the Minimum Royalty Fee and the Continuing Royalty Fee due and owing under the terms of the License Agreement. As of the date of this Quarterly Report, the amount of the accrued royalties due and owing pursuant to the Minimum Royalty Fee and the Continuing Royalty Fee is $125,000 and $736, respectively. See Note 3 for sale of restricted stock in exchange for payment for royalty fees. OFF-BALANCE SHEET ARRANGEMENTS As of the date of this Quarterly Report, we do not have any off-balance sheet arrangements that have or are reasonably like to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term "off-balance sheet arrangement" generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with us is a party, under which we have: (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets. ITEM 3. CONTROLS AND PROCEDURES We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such 12 information is accumulated and communicated to our management, including our Chief Executive Officer/Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. An evaluation was conducted under the supervision and with the participation of our management, including our Chief Executive Officer/Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as at February 28, 2006 pursuant to Rules 13a-15(b) and 15d-15(b) under the Exchange Act. Based on that evaluation, our Chief Executive Officer/Chief Financial Officer has concluded that our disclosure controls and procedures were effective as of such date to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time period specified in Commission rules and forms. There has been no change in our internal control over financial reporting (as defined in Rules 13(a)-15(f) and 15(d)-15(f) under the Exchange Act) during the three month period ended February 28, 2006 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. Not applicable. ITEM 2. CHANGES IN SECURITIES. During the nine month period ended February 28, 2006 the Company sold 600,000 shares of common stock for $60,000. ITEM 3. DEFAULTS UPON SENIOR SECURITIES. (a) Not Applicable. (b) Not Applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not Applicable. ITEM 5. OTHER INFORMATION. Not Applicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits. 31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934, Rule 13a-14(a) or 15d-14(a). 31.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934, Rule 13a-14(a) or 15d-14(a). 32.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934, Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of 13 the Sarbanes-Oxley Act of 2002. 32.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934, Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (b) Reports on Form 8-K We have not filed Form 8-K during the quarter ended February 28, 2006. SIGNATURE In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. JURAK CORPORATION WORLD WIDE, INC. Date: April 18, 2006 By: /s/ Anthony Carl Jurak ------------------------------- Anthony Carl Jurak Chairman of the Board and Director Chief Executive Officer and Chief Financial Officer 14