-----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, ApnooU0x9dXudV/UdoRgUoThg4KT9Tqx0OxUM20So/Er/hkseRma5zvPJjt43Msp E/TYYJwDycd3NY+tpYKS0A== 0001050234-03-000142.txt : 20030924 0001050234-03-000142.hdr.sgml : 20030924 20030924154826 ACCESSION NUMBER: 0001050234-03-000142 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030530 FILED AS OF DATE: 20030924 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CCI GROUP INC CENTRAL INDEX KEY: 0001117034 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 870648148 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 333-40954 FILM NUMBER: 03908116 BUSINESS ADDRESS: STREET 1: 405 PARK AVENUE STREET 2: 10TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 212-421-1400 MAIL ADDRESS: STREET 1: 405 PARK AVENUE STREET 2: 10TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: CARIBBEAN CLUBS INTERNATIONAL INC DATE OF NAME CHANGE: 20030127 FORMER COMPANY: FORMER CONFORMED NAME: KINSHIP SYSTEMS INC DATE OF NAME CHANGE: 20000622 10QSB 1 carib10qsb.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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 PERIOD ENDED June 30, 2003 OR [ ] 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 333-40954 CARIBBEAN CLUBS INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Utah 87-0648148 ---- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 405 Park Avenue, 10th Floor, New York, New York 10022 (Address of principal executive officers) (212) 421-1400 -------------- (Registrant's telephone number, including area code) Kinship Systems, Inc. --------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (l) 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 periods that the registrant was required to file such reports), X Yes No; and (2) has been subject to such filing requirements for the past 90 days: X Yes No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the court. Yes No Not Applicable 1 APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. The number of shares issued and outstanding of our common stock, no par value, as of June 30, 2003 was 11,319,411. 2 INDEX Caribbean Clubs International, Inc. For The Period Ending June 30, 2003 Part I. Financial Information Item 1. Financial Statements Condensed Consolidated Balance Sheets (Unaudited) - June 30, 2003 and December 31, 2002 3 Condensed Consolidated Statements of Operations (Unaudited ) for the Three Months And Six Months ended June 30, 2003 and 2002, and for the Period from January 11, 2001 (Date of Inception) through June 30, 2003 4 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended June 30, 2003 and 2002 for the Period from January 11, 2001 (Date of Inception) through June 30, 2003 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Item 3. Controls and Procedures. 13 Part II. Other Information Item 1. Legal Proceedings 14 Item 2. Changes in Securities and Use of Proceeds 14 Item 4. Submission of Matters to a Vote of Security Holders 14 Item 5. Other Matters 14 Item 6. Exhibits and Reports on Form 8-K 14 Signatures 14 3 PART I. FINANCIAL INFORMATION Item 1. Financial Statements. Part I - Financial Information Item I. Financial Statements: The condensed financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. 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 pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of the Company, all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the financial position of the Company and the results of its operations and its cash flows have been made. The results of its operations and its cash flows for the six months ended June 30, 2003 are not necessarily indicative of the results to be expected for the year ending December 31, 2003. 4 CARIBBEAN CLUBS INTERNATIONAL, INC. AND SUBSIDIARY (A Development Stage Company) CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
June 30, December 31, 2003 2002 - ------------------------------------------------------------------------------------------------- ASSETS Current Assets Cash $ 134,484 $ 631,112 Interest receivable 1,000 - Employee advance 11,250 - Deposits 17,700 17,700 - ------------------------------------------------------------------------------------------------- Total Current Assets 164,434 648,812 - ------------------------------------------------------------------------------------------------- Note Receivable 60,000 - - ------------------------------------------------------------------------------------------------- Total Assets $ 224,434 $ 648,812 ================================================================================================= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 31,381 $ 12,754 Accrued expenses 21,667 16,939 - ------------------------------------------------------------------------------------------------- Total Current Liabilities 53,048 29,693 - ------------------------------------------------------------------------------------------------- Stockholders' Equity Common stock - no par value; 50,000,000 shares authorized; 11,319,411 shares and 10,719,411 shares outstanding 1,220,661 1,220,061 Stock subscription receivable (600) - Deficit accumulated during the development stage (1,048,675) (600,942) - ------------------------------------------------------------------------------------------------- Total Stockholders' Equity 171,386 619,119 - ------------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 224,434 $ 648,812 =================================================================================================
See accompanying notes to unaudited condensed consolidated financial statements. 5 CARIBBEAN CLUBS INTERNATIONAL, INC. AND SUBSIDIARY (A Development Stage Company) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
For the period January 11, 2001 (Date of For the Three For the Three For the Six For the Six Inception) Months Ended Months Ended Months Ended Months Ended through June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002 June 30, 2003 - -------------------------------------------------------------------------------------------------------------- Revenue $ - $ - $ - $ - $ - - -------------------------------------------------------------------------------------------------------------- General and administrative expenses 196,898 14,399 459,401 49,990 1,061,977 - -------------------------------------------------------------------------------------------------------------- Loss from Operations (196,898) (14,399) (459,401) (49,990) (1,061,977) Interest income 2,990 - 11,668 - 13,302 - -------------------------------------------------------------------------------------------------------------- Net Loss $ (193,908) $ (14,399) $ (447,733) $ (49,990) $(1,048,675) ============================================================================================================== Basic and Diluted Loss per Share $ (0.02) $ (0.01) $ (0.04) $ (0.04) ============================================================================================================== Weighted Average Number of Common Shares Outstanding 10,719,411 1,372,750 10,719,411 1,372,750 ==============================================================================================================
See accompanying notes to unaudited condensed consolidated financial statements. 6 CARIBBEAN CLUBS INTERNATIONAL, INC. AND SUBSIDIARY (A Development Stage Company) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
January 11, 2002 For the Six For the Six (Date of Inception) Months Ended Months Ended through June 30, 2003 June 30, 2002 June 30, 2003 - ---------------------------------------------------------------------------------------------------------------- Cash Flows From Operating Activities Net loss $ (447,733) $ (49,990) $ (1,048,675) Adjustments to reconcile net loss to net cash from operating activities Issuance of common stock for services - - 145,900 Interest receivable (1,000) - (1,000) Employee advance (11,250) - (11,250) Deposits - (8,300) (17,700) Accounts payable 18,627 - 31,381 Accrued expenses 4,728 - 21,667 - ---------------------------------------------------------------------------------------------------------------- Net Cash Used in Operating Activities (436,628) (58,290) (879,677) - ---------------------------------------------------------------------------------------------------------------- Cash Flows from Investing Activities Issuance of note receivable (400,000) - (400,000) Payments received on note receivable 340,000 - 340,000 - ---------------------------------------------------------------------------------------------------------------- Net Cash Used in Investing Activities (60,000) - (60,000) - ---------------------------------------------------------------------------------------------------------------- Cash Flows from Financing Activities: Proceeds from issuance of common stock - 15,000 1,348,626 Cash paid for offering costs - - (148,993) Contribution of capital with no issuance of shares - 50,000 2,220 Net fair value of assets and liabilities acquired from Kinship - - (127,692) - ---------------------------------------------------------------------------------------------------------------- Net Cash Provided by Financing Activities - 65,000 1,074,161 - ---------------------------------------------------------------------------------------------------------------- Net Change in Cash and Cash Equivalents (496,628) 6,710 134,484 Cash and Cash Equivalents, Beginning of Period 631,112 1,110 - - ---------------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents, End of Period $ 134,484 $ 7,820 $ 134,484 ================================================================================================================
Supplemental Noncash Transactions: On June 30, 2003, the Company issued 600,000 shares of stock in exchange for a stock subscription receivable for $600. See accompanying notes to unaudited condensed consolidated financial statements. 7 CARIBBEAN CLUBS INTERNATIONAL, INC. AND SUBSIDIARY (A Development Stage Company) NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2003 NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES Condensed Financial Statements - The accompanying condensed financial statements have been prepared by the Company and are unaudited. In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary for fair presentation, consisting of normal recurring adjustments, except as disclosed herein. The accompanying unaudited interim financial statements have been condensed pursuant to the rules and regulations of the Securities and Exchange Commission; therefore, certain information and disclosures generally included in financial statements have been condensed or omitted. The condensed financial statements should be read in conjunction with the Company's annual financial statements included in its annual report on Form 10-KSB as of December 31, 2002. The financial position and results of operations for the six months ended June 30, 2003 are not necessarily indicative of the results to be expected for the full year ending December 31, 2003. Organization and Nature of Business - The Company was incorporated in Utah on February 1, 2000 under the name of Kinship Communications, Inc. The name was subsequently changed as of March 2, 2000 to Kinship Systems, Inc. On May 4, 2000, Kinship entered into a product distribution agreement with ProSource Software to distribute a vehicle accident analysis and reconstruction software to municipalities. In April 2001, the Company completed an initial pubic offering of its common stock and raised gross proceeds of $102,750 in connection with the sale of 102,750 shares of common stock. Due to the events of September 11, 2001, the Company believed that municipalities became more focused on homeland security issues, and became less interested in a ProSource type software product. Existing management made a determination to terminate its efforts to sell the ProSource software, and, in the beginning of fiscal 2002, existing management pursued various potential merger, acquisition, or new business opportunities for the Company. In this regard, effective November 18, 2002, the Company entered into a share exchange agreement with Caribbean Clubs International, Inc., a Delaware corporation ("CCI-Delaware"). Pursuant to the agreement, all of the shareholders of CCI-Delaware exchanged their shares for common stock of Kinship on a 1 for 11.8139 ratio (rounded to whole shares). The transaction was approved by the majority of shareholders of Kinship. As part of that transaction, the then officers and directors of Kinship resigned and were replaced by the Company's current officers and directors, and Kinship Systems, Inc. changed its name to Caribbean Clubs International, Inc. On November 21, 2002, CCI-Delaware changed its name to CCI Resort Development Corporation, and is a wholly owned subsidiary of the Company. CCI-Delaware was incorporated in the State of Delaware on January 11, 2001. CCI-Delaware received approximately 86% of the voting rights in the combined entity; therefore, in accordance with Statement of Financial Accounting Standards No. 141, "Business Combinations," CCI-Delaware was determined to be the acquiring entity. As a result, the effect of the Acquisition Agreement, for financial reporting purposes, was the reorganization of CCI-Delaware at the historical cost of its assets and liabilities in a manner similar to a stock split. The accompanying financial statements reflect the operations of CCI- Delaware for all periods presented and have been restated to reflect the common shares issued in the reorganization as though they had been issued on the dates capital was contributed to CCI-Delaware. 8 Since Kinship was in the development stage at the date of the Acquisition Agreement and had not commenced planned principal operations, Kinship was not considered a business, in accordance with EITF 98-3, "Determining Whether a Nonmonetary Transaction Involves Receipt of Productive Assets or of a Business." Accordingly, the 1,492,750 common shares that remained outstanding were accounted for as issued on November 18, 2002 in exchange for the assets and liabilities of Kinship and were recorded at the fair value of the assets and liabilities on November 18, 2002. At the date of acquisition, the estimated fair value of the assets acquired was $32,308 of cash. In addition, CCI-Delaware incurred $160,000 of liabilities in connection with the transaction. The results of Kinship's operations have been included in the accompanying financial statements from November 18, 2002. Consolidation - The accompanying consolidated financial statements include the accounts and transactions of CCI-Delaware for all periods presented and the accounts and transactions of Kinship (now Caribbean Clubs International, Inc.) from the date of its acquisition. Intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Business Condition - The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the financial statements for the period from January 11, 2001 (date of inception) through June 30, 2003, the Company earned only nominal revenue and incurred a net loss of $1,048,675. The lack of revenue and the loss from operations raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amount and classification of liabilities which might be necessary should the Company be unable to continue as a going concern. The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flows to meet its obligations on a timely basis, to obtain additional financing as may be required, and ultimately to attain successful operations. The Company's management intends to raise additional equity capital for operations and to begin acquiring and operating resort properties in the Caribbean. There is no assurance additional capital will be obtained. Cash and Cash Equivalents - Cash and cash equivalents include highly liquid debt investments with original maturities of three months or less, readily convertible to known amounts of cash. Deferred Offering Costs - The Company capitalizes direct costs associated with the acquisition of equity financing which are netted against the actual equity proceeds. Income Taxes - The Company recognizes the amount of income taxes payable or refundable for the current year and recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement amounts of certain assets and liabilities and their respective tax bases. Deferred tax assets and deferred liabilities are measured using enacted tax rates expected to apply to taxable income in the years those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance to the extent that uncertainty exists as to whether the deferred tax assets will ultimately be realized. 9 Basic and Diluted Loss Per Share - Basic loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is calculated to give effect to potentially issuable common shares except during loss periods when those potentially issuable common shares would increase income or decrease loss per common share. At June 30, 2003, there were 1,046,580 potentially issuable shares. NOTE 2 - NOTE RECEIVABLE On January 2, 2003, the Company made an investment by purchasing a short tem corporate note with a face value of $400,000. The note bears interest at 10 percent and is due in full in December 2004. The amount remaining on the note at June 30, 2003 was $60,000. NOTE 3 - ISSUANCE OF STOCK On June 30, 2003, McGinn, Smith & Co., Inc. exercised its right to purchase the Company's stock at $0.001 per share and purchased 600,000 shares of stock for $600. A stock subscription receivable reflects the amount owing for the shares at June 30, 2003. NOTE 4 - RELATED PARTY TRANSACTION During the six months ended June 30, 2003, the Company advanced its officer $11,250. The advance is due on demand and bears no interest. Item 2. Management's Discussion and Analysis. Results of Operations. - --------------------- The following discussion should be read in conjunction with our Condensed Consolidated Financial Statements, including the Notes thereto, appearing elsewhere in this report. Overview. - -------- We were incorporated in Utah on February 1, 2000 under the name of Kinship Communications, Inc. We changed our name to Kinship Systems, Inc on March 2, 2000. On May 4, 2000, we entered into a product distribution agreement to distribute a vehicle accident analysis and reconstruction software to municipalities. In April 2001, we completed an initial public offering of our common stock and raised gross proceeds of $102,750 in connection with the sale of 102,750 shares of our common stock. Due to the events of September 11, existing management believed that municipalities became more focused on homeland security issues, and became less interested in an accident reconstruction software product. During the first quarter of 2002, existing management decided to terminate our efforts to sell the software product, and, pursued various potential merger, acquisition, or new business opportunities. 10 Effective November 18, 2002, as discussed above, we entered into a share exchange agreement with Caribbean Clubs International, Inc., a Delaware corporation. Pursuant to the agreement, all of the shareholders of CCI-Delaware exchanged their common shares for our common shares on a 1 for 11.8139 ratio (rounded to whole shares). The transaction was approved by the majority of our shareholders. As part of that transaction, our then officers and directors resigned and were replaced by our current officers and directors. We also changed our name to Caribbean Clubs International, Inc. On November 21, 2002, CCI-Delaware changed its name to CCI Resort Development Corporation, and is our wholly owned subsidiary. CCI-Delaware was incorporated in the State of Delaware on January 11, 2001. During November 2002, CCI-Delaware completed a private placement of its common stock pursuant to which it sold 411,000 shares and received $1,133,633 in net offering proceeds after deducting offering costs of $148,937. Plan Of Operations. - ------------------ We are a development stage corporation, and intend to develop a network of boutique style resort hotels located in the Caribbean. We may acquire an equity or a leasehold interest in a resort property. In most instances, we expect to manage properties acquired, and we also may seek to manage other resort properties pursuant to management agreement wherein we may not maintain an equity or leasehold interest. Our ability to manage resort properties will be dependent upon hiring personnel experienced in resort operations. We have conducted discussions with a resort management team, however, a formal agreement has not been consummated as this time. Once a property has been acquired or is under management, we expect to solicit and sell our membership plan to these properties. We can not project when we will be able to start realizing revenues from sales of our membership plan, nor can we project the amount of such revenues from such membership sales, if any. Our operations to date have included conducting due diligence of a number of resort properties, negotiating the acquisition or leasehold terms of selected properties, hiring personnel of our subsidiary to facilitate the sale of memberships and resort marketing. We expect to acquire an equity or leasehold interest in our first resort property during 2003. We will be required to raise additional funds in order to acquire our initial resort properties. Our cash requirements for the next 12 months are estimated to be $5,000,000. Of this amount, we have allocated approximately $4,200,000 as the cash portion to acquire two resorts, $250,000 for membership and resort marketing, and the balance for our working capital needs. As stated above, we may acquire equity or leasehold interests in resort properties. Equity interests 11 may be complete or partial ownership. If we acquire complete equity ownership in a property, we expect to acquire such property through a combination of cash and seller financing. The amount financed will be paid over time under terms negotiated by the parties. The amount financed is expected to be subject to annual interest of rates of between 8 to 12%, which amount will be secured by the resort property. Presently, we are negotiating the acquisition terms of two properties, however, the respective parties have not entered into formal agreements. The amount allocated for membership and resort marketing includes the initiation of our membership sales campaign and salary to the vice president of marketing of our subsidiary. The amount allocated for working capital includes salaries payable to existing personnel, projected salaries to personnel to manage resort properties, office overhead for our New York office, and projected professional fees. Presently, other than the vice president of marketing of our subsidiary (included in the membership and resort marketing allocation), we employ our president and the president of our subsidiary. We are seeking to raise funds that will meet our cash requirements described above. We have entered into an agreement with a broker-dealer to raise the stated capital on a best efforts basis through the sale of subordinated notes. We expect to commence the offering during the third quarter of 2003. We cannot predict whether the offering will be successful in raising the required capital. If we are unsuccessful in this regard, we may not be able to complete our plan of operations as discussed above. For each property acquired, we expect to retain existing employees of the predecessor owner or landlord. We intend to acquire boutique-style resorts generally having less than 50 rooms. Consequently, the staff at each resort will be limited, ranging from 25 to 75 employees. It is conceivable that with respect to a specific property, we may elect not to manage the property, and instead, we may seek to contract with independent hotel operators or management companies to conduct the day to day operations, which would include managing our on-site staff. Based upon discussions we have had with a number of entities, we believe independent hotel operators or management companies are available to operate such resorts, if necessary. In the industry, hotel operators are typically compensated by receiving 3% to 4% of gross revenues and 8% to 10% of net revenues, of the managed resort. We would expect these rates to apply to our properties, if we enter into such an arrangement. We have no material commitments for capital at this time other than as described above. In addition, we do not expect to incur research and development costs within the next 12 months. Off Balance Sheet Arrangements. - ------------------------------ We have no off balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. 12 Disclosure Regarding Forward Looking and Cautionary Statements. - -------------------------------------------------------------- Forward Looking Statements. Certain of the statements contained in this Quarterly Report on Form 10-QSB includes "forward looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts included in this Form 10-QSB regarding the Company's financial position, business strategy, and plans and objectives of management for future operations and capital expenditures, and other matters, are forward looking statements. These forward-looking statements are based upon management's expectations of future events. Although we believe the expectations reflected in such forward looking statements are reasonable, there can be no assurances that such expectations will prove to be correct. Additional statements concerning important factors that could cause actual results to differ materially from our expectations ("Cautionary Statements") are disclosed in the Cautionary Statements section and elsewhere in our Form 10-KSB for the period ended December 31, 2002. Readers are urged to refer to the section entitled "Cautionary Statements" and elsewhere in our Form 10-KSB for a broader discussion of these statements, risks, and uncertainties. All written and oral forward looking statements attributable to us or persons acting on our behalf subsequent to the date of this Form 10-QSB are expressly qualified in their entirety by the referenced Cautionary Statements. Item 3. CONTROLS AND PROCEDURES. (a) We maintain controls and procedures designed to ensure that information required to be disclosed in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. Based upon their evaluation of those controls and procedures performed within 90 days of the filing date of this report, our chief executive officer and the principal financial officer concluded that our disclosure controls and procedures were adequate. (b) Changes in internal controls. We made no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of the evaluation of those controls by the chief executive officer and principal financial officer. 13 Part II - Other Information Item 1. Legal Proceedings None Item 2. Changes in Securities and Use of Proceeds None Item 3. Defaults upon Senior Securities. None Item 4. Submission of Matters to a Vote of Security Holders None Item 6. Exhibits and Reports on Form 8-K 99.1 Certification under Section 906 of the Sarbanes-Oxley Act SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. REGISTRANT: Caribbean Clubs International, Inc. Date: August 8, 2003 By: /s/ Fred W. Jackson, Jr. Fred W. Jackson, Jr. President and Chief Financial Officer 14 EX-31 3 exhibit31.txt EXHIBIT 31 CERTIFICATION I, Fred W. Jackson, Jr. certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Caribbean Clubs International, Inc.; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and I have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: August 8, 2003 /s/ Fred W. Jackson, Jr. Fred W. Jackson, Jr. President and Chief Financial Officer EX-32 4 exhibit32.txt EXHIBIT 32 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of the registrant certifies, to the best of his or her knowledge, that the registrant's Quarterly Report on Form 10-QSB for the period ended June 30, 2003 (the "Form 10- QSB") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Form 10-QSB, fairly presents, in all material respects, the financial condition and results of operations of the registrant. Date: August 8, 2003 /s/ Fed W. Jackson, Jr. Fred W. Jackson, Jr. President, Chief Executive Officer, and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----