-----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, Ac/hkIj+bXz2NtWPgTUMYJXBPEad0y4ZanbCRFPSoGnHzWcosKTREtATp5++7Mp7 nnfkPj/I1JN64HCisnYsEQ== 0001104540-01-500182.txt : 20010604 0001104540-01-500182.hdr.sgml : 20010604 ACCESSION NUMBER: 0001104540-01-500182 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010531 FILED AS OF DATE: 20010601 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST AUTO INC CENTRAL INDEX KEY: 0001098589 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500] IRS NUMBER: 880423037 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-31759 FILM NUMBER: 1653016 BUSINESS ADDRESS: STREET 1: 34700 PACIFIC COAST HIGHWAY STREET 2: SUITE 303 CITY: CAPISTRANO BEACH STATE: CA ZIP: 92624 BUSINESS PHONE: 9492489561 MAIL ADDRESS: STREET 1: 34700 PACIFIC COAST HIGHWAY STREET 2: SUITE 303 CITY: CAOUSTRANO BEACH STATE: CA ZIP: 92624 10QSB 1 r01q01.txt FIRST AUTO 10-QSB FILING 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 SECURITIES EXCHANGE ACT OF 1934 For the Quarter ended May 31, 2001 Commission File Number: 0-31759 FIRST AUTO, INC. Nevada Optional (Jurisdiction of Incorporation) (I.R.S. Employer Identification No.) 3131 Southwest Freeway, Number 46, Houston TX 77098 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 949-248-1765 As of May 31, 2001, the number of shares outstanding of the Registrant's Common Stock was 7,981,500. Transitional Small Business Disclosure Format (check one): yes [ ] no [X] PART I: FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. The financial statements, for the three months ended May 31, 2001, included herein have been prepared by the Company, without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnotes disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information not misleading. The Remainder of this Page is Intentionally left Blank 1 FIRSTAUTO, INC. BALANCE SHEETS February 28 and May 31, 2001
May 31, February 29, 2001 2001 (unaudited) ASSETS CURRENT ASSETS Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 629 $ 3,329 Accounts Receivable. . . . . . . . . . . . . . . . . 4,400 0 ------------ TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . 5,029 3,329 TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . $ 5,029 $ 3,329 ============ ========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Accounts payable . . . . . . . . . . . . . . . . . . . $ 24,832 $ 23,132 ------------ ---------- Total Liabilities. . . . . . . . . . . . . . . . . . . . $ 24,832 $ 23,132 ------------ ---------- STOCKHOLDERS' EQUITY Common Stock, $.001 par value; authorized 100,000,000 shares; issued and outstanding, 7,981,500 shares. . 7,982 $ 7,982 Additional Paid-In Capital . . . . . . . . . . . . . . 115,335 115,335 Accumulated Equity (Deficit) . . . . . . . . . . . . . (143,120) (143,120) ------------ ---------- Total Stockholders' Equity . . . . . . . . . . . . . . . (19,803) (19,803) ------------ ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . $ 5,029 $ 3,329 ============ ==========
The accompanying notes are an integral part of these financial statements. 2 FIRSTAUTO, INC. STATEMENTS OF OPERATIONS (UNAUDITED) May 31, 2000 and 2001
From Inception on From March From March March 24, 1, 2001 to 1, 2000 to 1999 through May 31, May 31, May 31, 2001 2000 2001 ----------- ----------- ----------- Revenues. . . . . . . . . $ -0- $ -0- $ -0- ----------- ----------- ----------- Net Loss from Operations. 0 361 119,988 Net Income (Loss) . . . . $ 0 $ (361) $ (119,988) =========== =========== =========== Loss per Share. . . . . . $ (0.00000) $ (0.00005) $ (0.01567) =========== =========== =========== Weighted Average Shares Outstanding. . 7,981,500 7,981,500 7,655,920 =========== =========== ===========
The accompanying notes are an integral Part of these financial statements. 3 FIRSTAUTO, INC. STATEMENTS OF CASH FLOW (UNAUDITED) May 31, 2000 and 2001
From Inception on From March From March March 24, 1, 2001 to 1, 2000 to 1999 through May 31, May 31, May 31, 2001 2000 2001 -------- ------- ---------- Operating activities Net Income (Loss). . . . . . . . . . $ 0 $ (361) $(143,120) Items not effecting cash Stock issued for services. . . . . 0 0 6,817 (Increase) in accounts receivable. (4,400) 0 (4,400) Increase in accounts payable . . . 1,700 361 24,832 -------- ------- ---------- Net Cash from Operations . . . . . . . (2,700) 0 (115,871) -------- ------- ---------- Cash from financing activities Cash from sale of common stock . . . 0 0 116,500 -------- ------- ---------- Increase (Decrease) in Cash. . . . . . (2,700) 0 629 Beginning Cash . . . . . . . . . . . . 3,329 3,329 0 Ending Cash. . . . . . . . . . . . . . $ 629 $3,329 $ 629 ======== ======= ==========
The accompanying notes are an integral Part of these financial statements. 4 FIRSTAUTO, INC. STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED) from March 24, 1999 (inception) through February 29, 2000 for the year ended February 28, 2001 and the period ended May 31, 2001
Accumulated Additional Total Stock- Common Par Paid-In Equity holders' Equity Stock Value Capital (Deficit) (Deficit) --------- ------ -------- ---------- ---------- Common Stock issued at inception 6,816,500 $6,817 $ 0 $ 0 $ 6,817 Sale of Common Stock . . . . . . 1,165,000 1,165 115,335 0 0 Net (loss) during year ended February 29, 2000. . . . . . 0 0 0 (119,988) 0 Balance at February 29, 2000 . . 7,981,500 $7,982 $115,335 $(119,988) $ 3,329 Net (loss) during period ended February 28, 2001. . . . . . 0 0 0 (23,132) 0 Balance at February 28, 2001 . . 7,981,500 $7,982 $115,335 $(143,120) $ (19,803) Net (loss) during period ended May 31, 2001 . . . . . . . . 0 0 0 0 0 Balance at May 31, 2001. . . . . 7,981,500 $7,982 $115,335 $(143,120) $ (19,803)
The accompanying notes are an integral part of these financial statements. 5 FIRSTAUTO, INC. (A Development Stage Company) Notes to the Financial Statements May 31, 2001 NOTES TO FINANCIAL STATEMENTS FirstAuto, Inc. ("the Company") has elected to omit substantially all footnotes to the financial statements for the three months ended May 31, 2001, since there have been no material changes (other than indicated in other footnotes) to the information previously reported by the Company in their Annual Report filed on Form 10-KSB for the Fiscal year ended February 28, 2001. UNAUDITED INFORMATION The information furnished herein was taken from the books and records of the Company without audit. However, such information reflects all adjustments which are, in the opinion of management, necessary to properly reflect the results of the period presented. The information presented is not necessarily indicative of the results from operations expected for the full fiscal year. 6 ITEM 2. DISCUSSION AND ANALYSIS OR PLAN OF OPERATION. (A) PLAN OF OPERATION. The plan of operation for the next twelve months is to become trading on an exchange, NQB Pink Sheets and then OTCBB, become a full-reporting company, and raise capital through a registered offering. Upon raising sufficient capital we will launch operations. We are not presently accepted for quotation on OTCBB or NQB Pink Sheets. Our submission is pending. The first stage of operations will be to develop the details and structure of our projected web site and how the services will be provided to the target audience and the dealers, vendors and advertisers. The second stage will be to establish e-commerce partners for links for automotive service providers such as insurance, warranties, and financing and to create a database of vehicle information, contact information for dealers, and links to auto manufacturer sites for further vehicle descriptions. The third stage is to obtain initial web advertising on various search engines and other high traffic Internet sites. Within six to eight months after receipt of capital from the registered offering, we will be able to roll-out the web site and advertising campaign and begin full operation. (1) CASH REQUIREMENTS AND OF NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS. We expect to require substantial capital formation during the first twelve months of our operations. We cannot state at this time when our operations would launch for the following reasons. We cannot interest knowledgeable investors until our common stock can be quoted on the OTCBB. We cannot achieve quotation of our common stock until and unless this 1934 Registration of our common stock is effective and clear of comments by the staff of the Securities and Exchange Commission. We would expect our principal shareholder to provide interim funding until such time as we can attract investors. Realistically, we would require $1,000,000 to launch. We would expect to require an additional $1,000,000 to sustain us in operations for the first twelve months. Accordingly, we expect to require an additional $1,000,000 for the first twelve months of operation. We would need to interest knowledgeable investors to fund our initial launch, and would expect to raise that first $2,000,000 by the sale of common stock. It is possible that with a successful first funding and launch of operations, we would be able to secure interim loan financing to enable us to expand our business sufficiently to make further capital formation more attractive to investors. There is no assurance that our funding plans will be realized or that our requirements will be met. If we are not able to achieve this requirement, we may not be able to become or continue as a going concern. In this connection we refer to Note 2 of our audited financial statements: "The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company is dependent upon raising capital to continue operations. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management's plan to raise capital in order to define their operations, thus creating operating revenues." We further refer to Note 3: "The Company is a development stage company as defined in Financial Accounting Standards Board Statement 7. It is concentrating substantially all its efforts in raising capital and developing its business operations in order to generate significant revenues. We do not anticipate any contingency upon which we would voluntarily cease filing reports with the SEC, even though we may cease to be required to do so. It is in our compelling interest to report our affairs quarterly, annually and currently, as the case may be, generally to provide accessible public information to interested parties, and also specifically to maintain its qualification for the OTCBB, if and when the Issuer's intended application for submission be effective. (2) SUMMARY OF PRODUCT RESEARCH AND DEVELOPMENT. None. 7 (3) EXPECTED PURCHASE OR SALE OF PLANT AND SIGNIFICANT EQUIPMENT. None. (4) EXPECTED SIGNIFICANT CHANGE IN THE NUMBER OF EMPLOYEES. None for the present. Following launch of operations, we would expect to require a staff of employees. The number required would grow as our operations might grow. (B) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. We have enjoyed no revenues since inception. We had no expenses during this reporting quarter. (C) FUTURE PROSPECTS. We have disclosed an ambitious business plan. There can be no assurance that our plan will succeed in whole or in part. We may not be able to achieve our funding requirements. Even if substantial funding proves available, there is no assurance that our business will prove competitive or profitable. Our business may fail for any number of possible unforeseen contingencies. Start-up ventures such as ours are inherently speculative and fraught with risks of business failure. While management believes that its plan contains the strategy for success, the road to failure is filled with good intentions and missed opportunities. Caution must be expressed at this early stage of our development, that we may be disappointed in our expectations. PART II: OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. None ITEM 2. CHANGE IN SECURITIES. None ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS. None ITEM 5. OTHER INFORMATION. None ITEM 6. REPORTS ON FORM 8-K. None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, this Form 10-Q Report for the Quarter ended May 31, 2001, has been signed below by the following person on behalf of the Registrant and in the capacity and on the date indicated. Dated: June 1, 2001 FIRST AUTO, INC. by /s/Kirt W. James Kirt W. James Sole Officer/Director 8 -----END PRIVACY-ENHANCED MESSAGE-----