-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EzeJcBRvnTIhR1cfNNTUE3NDyrHofzDw4IeFvLR8Z2lH6PHkEfZQHfYNKy5KDTeT nz6m1F4Tu5HImsvaot5wSg== /in/edgar/work/0001005150-00-001631/0001005150-00-001631.txt : 20001128 0001005150-00-001631.hdr.sgml : 20001128 ACCESSION NUMBER: 0001005150-00-001631 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20001127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIGAR KING CORP CENTRAL INDEX KEY: 0001074828 STANDARD INDUSTRIAL CLASSIFICATION: [5990 ] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-30262 FILM NUMBER: 776907 BUSINESS ADDRESS: STREET 1: 1200 W 73RD AVE STREET 2: SUITE 825 CITY: VANCOUVER BC V6P 6G5 STATE: A1 MAIL ADDRESS: STREET 1: 1200 W 73RD AVE STREET 2: SUITE 825 CITY: VANCOUVER BC STATE: A1 10QSB 1 0001.txt FORM 10QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2000 ------------------------------------------------- ( ) 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 0-25541 --------------------------------------------- CIGAR KING CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in charter) Nevada 91-1948357 - ---------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 825 - 1200 West 73rd Avenue Vancouver, BC, Canada V6P 6G5 - --------------------------------- ----------------- (Address of principal executive offices) (Zip Code) 604-267-1100 -------------------------------------------------------- Registrant's telephone number, including area code --------------------------------------------------------------------- (Former name, address, and fiscal year, if changed since last report) Indicate by check mark whether the registrant (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), Yes [X] No [ ] and ( ) has been subject to filing requirements for the past 90 days. Yes [X] No [ ] APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the last practicable date. Class Outstanding as of June 30, 2000 ----------------------------------- ------------------------------- Common Stock, $0.001 per share 10,535,000 ANDERSEN ANDERSEN & STRONG, L.C. 941 East 3300 South, Suite 202 Salt Lake City, Utah 84106 Telephone 801 486-0096 Fax 801 486-0098 REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS The Board of Directors Cigar King Corporation We have reviewed the balance sheet of Cigar King Corporation (development stage company) as of June 30, 2000 and September 30, 1999 the related statement of operations and the statement of cash flows for the period October 8, 1998 (date of inception) to June 30, 2000. These financial statements are the responsibility of the company's management. We conducted our review in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements for them to be in conformity with generally accepted accounting principles. Andersen Andersen & Strong Salt Lake City, Utah October 30, 2000 2 INDEX
Page PART 1. Number ------ ITEM 1. Financial Statements (unaudited)......................................... 4 Balance Sheet as at June 30, 2000 and September 30, 1999 ....................................... 5 Statement of Operations For the three months ended June 30, 2000 and 1999, for the nine months ended June 30, 2000 and 1999 and for the period from October 8, 1998 (Date of Incorporation) to June 30, 2000 .................................. 6 Statement of Changes in Shareholders' Equity For the period from October 8, 1998 (Date of Incorporation) to June 30, 2000 ............................ 7 Statement of Cash Flows For the nine months ended June 30, 2000 and 1999 and for the period from October 8, 1998 (Date of Incorporation) to June 30, 2000 ........................ 8 Notes to the Financial Statements........................................ 9 ITEM 2. Plan of Operations....................................................... 12 PART 11 Signatures............................................................... 13 OTHER Financial Data Schedule.................................................. 14
3 PART 1 - FINANCIAL INFORMATION - -------------------------------------------------------------------------------- ITEM 1. FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- The accompanying balance sheet of Cigar King Corporation (a development stage company) at June 30, 2000 and September 30, 1999 and the statement of operations for the three months ended June 30, 2000 and 1999, for the nine months ended June 30, 2000 and 1999 and for the period from October 8, 1998 (date of incorporation) to June 30, 2000, the statement of cash flow for the nine months ended June 30, 2000 and 1999 and for the period from October 8, 1998 (date of incorporation) to June 30, 2000 and the statement of stockholders' equity for the period from October 8, 1998 (date of incorporation) to June 30, 2000 have been prepared by the Company's management and they do not include all information and notes to the financial statements necessary for a complete presentation of the financial position, results of operations, cash flows, and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the nine months ended June 30, 2000, are not necessarily indicative of the results that can be expected for the year ending September 30, 2000. 4 CIGAR KING CORPORATION (A DEVELOPMENT STAGE COMPANY) BALANCE SHEET JUNE 30, 2000 AND SEPTEMBER 30, 1999 (UNAUDITED - PREPARED BY MANAGEMENT)
JUNE 30, September 30, 2000 1999 ---- ---- ASSETS CURRENT ASSETS Bank $ 287 $ 8,024 Accounts receivable 128 128 Due from director 44 -- -------- -------- 459 8,152 OTHER ASSETS Rights to Cigar King concept - Note 3 50,000 50,000 -------- -------- $ 50,459 $ 58,152 ======== ======== LIABILITIES Accounts payable and accrued liabilities $ 4,919 $ 4,500 -------- -------- STOCKHOLDERS' EQUITY Common stock 200,000,000 shares authorized, at $0.001 par value, 10,535,000 shares issued and outstanding 10,535 10,535 Capital in excess of par value 74,515 70,865 Deficit accumulated during the development stage (39,510) (27,748) -------- -------- Total Stockholders' Equity 45,540 53,652 -------- -------- $ 50,459 $ 58,152 ======== ========
The accompanying notes are an integral part of these unaudited financial statements. 5 CIGAR KING CORPORATION (A DEVELOPMENT STAGE COMPANY) STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999 FOR THE NINE MONTHS ENDED JUNE 30, 2000 AND 1999 AND FOR THE PERIOD FROM OCTOBER 8, 1998 (DATE OF INCEPTION) TO JUNE 30, 2000 (UNAUDITED - PREPARED BY MANAGEMENT)
FOR THE FOR THE THREE THREE MONTHS MONTHS FOR THE NINE FOR THE NINE FROM INCEPTION ENDED ENDED MONTHS ENDED MONTHS ENDED TO JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30, 2000 1999 2000 1999 2000 ---- ---- ---- ---- ---- SALES $ -- $ -- $ -- $ -- $ -- =========== =========== =========== ========== ======== GENERAL AND ADMINISTRATIVE EXPENSES: Accounting and audit 250 -- 2,600 7,000 11,300 Bank charges and interest 18 14 62 166 247 Consulting -- -- 2,900 3,950 8,250 Filing fees 323 -- 887 1,420 2,307 Legal -- -- 80 2,530 2,610 Office and administrative expenses 69 438 1,540 917 2,743 Rent -- -- 1,500 -- 3,000 Telephone -- -- 750 -- 1,950 Transfer agent's fees 225 180 1,443 3,160 4,603 Travel -- -- -- 2,000 2,000 Website fees -- 500 -- 500 500 ----------- ----------- ----------- ---------- -------- NET LOSS $ (885) $ (1,132) $ (11,762) $ (21,643) $(39,510) =========== =========== =========== ========== ======== NET LOSS PER COMMON SHARE SHARE Basic $ -- $ -- $ -- $ -- =========== =========== =========== ========== AVERAGE OUTSTANDING SHARES SHARES Basic 10,535,000 10,535,000 10,535,000 8,733,264 =========== =========== =========== ==========
The accompanying notes are an integral part of these unaudited financial statements. 6 CIGAR KING CORPORATION (A DEVELOPMENT STAGE COMPANY) STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE PERIOD FROM OCTOBER 8, 1998 (DATE OF INCEPTION) TO JUNE 30, 2000 (UNAUDITED - PREPARED BY MANAGEMENT)
CAPITAL IN COMMON STOCK EXCESS OF ACCUMULATED SHARES AMOUNT PAR VALUE DEFICIT ------ ------ --------- ------- BALANCE OCTOBER 8, 1998 (date of inception) $ -- $ -- $ -- $ -- Issuance of common shares for cash at $0.002 - November 20, 1998 45,000,000 4,500 4,500 -- Issuance of common shares for cash at $0.01 - November 25, 1998 6,000,000 6,000 54,000 -- Issuance of common shares for cash at $0.25 - December 4, 1998 35,000 35 8,715 -- Capital contribution 3,650 Net operating loss for the period from October 8, 1998 to September 30, 1999 -- -- -- (27,748) ----------- ----------- ----------- ----------- BALANCE SEPTEMBER 30, 1999 10,535,000 $ 10,535 $ 74,515 $ (27,748) Capital contribution 3,650 Net operating loss for the nine months ended June 30, 2000 (11,762) ----------- ----------- ----------- ----------- BALANCE JUNE 30, 2000 10,535,000 $ 10,535 $ 78,165 $ (39,510) =========== =========== =========== ===========
The accompanying notes are an integral part of these unaudited financial statements. 7 CIGAR KING CORPORATION (A DEVELOPMENT STAGE COMPANY) STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED JUNE 30, 2000 AND 1999 AND FOR THE PERIOD FROM OCTOBER 8, 1998 (DATE OF INCEPTION) TO JUNE 30, 2000 (UNAUDITED - PREPARED BY MANAGEMENT)
FOR THE NINE FOR THE NINE FROM INCEPTION MONTHS ENDED MONTHS ENDED TO JUNE 30, JUNE 30, JUNE 30, 2000 1999 2000 ---- ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(11,762) $(21,643) $(39,510) Adjustments to reconcile net loss to net cash provided by operating activities: Capital contributions 3,650 -- 7,300 Increase in accounts receivable -- (128) (128) Increase in due from a director (44) -- (44) Increase in accounts payable 419 2,800 4,919 -------- -------- -------- Net cash (deficiency) from operations (7,737) (18,971) (27,463) -------- -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Rights to Cigar King concept -- (50,000) (50,000) -------- -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of common stock -- 77,750 77,750 -------- -------- -------- Net Increase in Cash (7,737) 8,779 287 Cash at Beginning of Period 8,024 -- -- -------- -------- -------- CASH AT END OF PERIOD $ 287 $ 8,779 $ 287 ======== ======== ========
The accompanying notes are an integral part of these unaudited financial statements. 8 CIGAR KING CORPORATION (A DEVELOPMENT STAGE COMPANY) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED - PREPARED BY MANAGEMENT) 1. ORGANIZATION The Company was incorporated under the laws of the State of Nevada on October 8, 1998 with the authorized common shares of 200,000,000 shares at $0.001 par value. The Company is in the development stage. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Methods The Company recognizes income and expenses based on the accrual method of accounting. Dividend Policy The Company has not yet adopted a policy regarding payment of dividends. Income Taxes On June 30, 2000 the Company had a net operating loss carry forward of $ 39,510. The tax benefit from the loss carry forward has been fully offset by a valuation reserve because the use of the future tax benefit is doubtful since the Company is in the development stage and has not started operations. The net operating loss will expire in 2021. Earnings (Loss) per Share Earnings (loss) per share amounts are computed based on the weighted average number of shares actually outstanding. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity, at the time of purchase, of less than three months, to be cash equivalents. 9 CIGAR KING CORPORATION (A DEVELOPMENT STAGE COMPANY) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED - PREPARED BY MANAGEMENT) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED Comprehensive Income The Company adopted Statement of Financial Accounting Standards No. 130. The adoption of this standard had no impact on the total stockholder's equity. Recent Accounting Pronouncements The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements. Financial Instruments The carrying amounts of financial instruments, including cash and accounts payable are considered by management to be their estimated fair values. Estimates and Assumptions Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing these financial statements. 3. PURCHASE OF RIGHTS TO CIGAR KING CONCEPT On November 24, 1998 the Company acquired the exclusive rights to use the name "Cigar King" to market high quality cigars through a climate controlled kiosk merchandising display case, by the payment of $50,000. The purchase price will be amortized to expense over five years after operations begin. 4. RELATED PARTY TRANSACTIONS Related parties acquired 43% of the common stock issued. 10 CIGAR KING CORPORATION (A DEVELOPMENT STAGE COMPANY) NOTES TO FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED - PREPARED BY MANAGEMENT) 5. GOING CONCERN Continuation of the Company as a going concern is dependent upon obtaining additional working capital and the management of the Company has developed a strategy, which it believes will accomplish this objective through additional equity funding, and long term financing, which will enable the Company to operate for the coming year. 11 - -------------------------------------------------------------------------------- ITEM 2. PLAN OF OPERATIONS - -------------------------------------------------------------------------------- To date the Company has not made a decision as to what type of kiosk it should either acquire of build nor has it decided upon the location of the kiosks. This is due to a lack of funds the Company has at the present time. Liquidity and Capital Resources The Company has virtual no capital resources at the present time to finance it project. The director might have to consider advance certain funds personally in order to provide working capital for the Company. Results of Operations The Company has had no revenues from operations since its inception. 12 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. CIGAR KING CORPORATION (Registrant) November 23, 2000 /s/ "Steven Bruce - ----------------------------------- ------------------------------------ Date Steven Bruce -President/Director 13 EX-27 2 0002.txt FDS --
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM 10QSB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0001074828 CIGAR KING CORPORATION 1 US DOLLARS 3-MOS 3-MOS SEP-30-1999 SEP-30-2000 APR-01-2000 APR-01-1999 JUN-30-2000 JUN-30-1999 1.000 1.000 287 0 0 0 172 0 0 0 0 0 459 0 50,000 0 0 0 50,459 0 4,919 0 0 0 0 0 0 0 85,050 0 (39,510) 0 50,459 0 0 0 0 0 0 0 0 0 885 1,132 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (885) (1,132) 0 0 0 0
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