For Quarter Ended: May 31,
2008
|
Commission File Number:
000-53121
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COLORADO
|
47-0883144
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(State
or other jurisdiction of
|
(I.R.S.
Employer Identification No.)
|
incorporation
or organization)
|
|
16200 WCR 18E,
Loveland, Colorado
|
80537
|
(Address
of principal executive offices)
|
(Zip
code)
|
Page
|
||
Part
I
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||
Item
1. Financial Statements
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3
|
|
Item
2. Management's Discussion and Analysis or Plan of
Operation
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8
|
|
Item
3. Controls and Procedures
|
17
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|
Part
II
|
||
Item
1. Legal Proceedings
|
17
|
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
17
|
|
Item
3. Defaults Upon Senior Securities
|
17
|
|
Item
4. Submission of Matters to a Vote of Security
Holders
|
17
|
|
Item
5. Other Information
|
18
|
|
Item
6. Exhibits
|
18
|
|
Signatures
|
18
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May
31,
|
August
31,
|
|||||||
2008
|
2007
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current
Assets:
|
||||||||
Cash
|
$ | 43,618 | $ | 23,358 | ||||
Prepaid
asset
|
155 | — | ||||||
Total
current assets
|
43,773 | 23,358 | ||||||
Property
and equipment, net
|
38,336 | 36,315 | ||||||
Total
assets
|
$ | 82,109 | $ | 59,673 | ||||
Liabilities
and Shareholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accrued
interest payable, related party
|
$ | 6,324 | $ | 4,726 | ||||
Accounts
payable
|
— | 1,741 | ||||||
Security
deposit
|
500 | — | ||||||
Loans
payable to related party
|
37,500 | 34,400 | ||||||
Total
current liabilities
|
44,324 | 40,867 | ||||||
Shareholders’
equity:
|
||||||||
Common
stock, no par value; 20,000,000 shares authorized,
|
||||||||
3,389,000
and 3,150,000 shares issued and outstanding, respectively
|
205,250 | 145,500 | ||||||
Additional
paid-in capital
|
15,176 | 11,461 | ||||||
Accumulated
other comprehensive gain
|
712 | 417 | ||||||
Accumulated
deficit
|
(500 | ) | (500 | ) | ||||
Deficit
accumulated during development stage
|
(182,853 | ) | (138,072 | ) | ||||
Total
shareholder’s equity
|
37,785 | 18,806 | ||||||
Total
liabilities and shareholders' equity
|
$ | 82,109 | $ | 59,673 |
March
1,
|
||||||||||||||||||||
2005
|
||||||||||||||||||||
(Inception)
|
||||||||||||||||||||
For
the Three Months Ended
|
For
the Nine Months Ended
|
Through
|
||||||||||||||||||
May
31,
|
May
31,
|
May
31,
|
||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
||||||||||||||||
Revenue
|
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Operating
expenses:
|
||||||||||||||||||||
Professional
fees
|
8,514 | 5,429 | 16,787 | 14,916 | 38,691 | |||||||||||||||
Contributed
services, related party (Note 3)
|
600 | 300 | 3,275 | 900 | 12,671 | |||||||||||||||
General
and administrative
|
8,205 | 8,011 | 23,121 | 19,887 | 125,167 | |||||||||||||||
Total
operating expenses
|
17,319 | 13,740 | 43,183 | 35,703 | 176,529 | |||||||||||||||
Loss
from operations
|
(17,319 | ) | (13,740 | ) | (43,183 | ) | (35,703 | ) | (176,529 | ) | ||||||||||
Other
Income (Expense)
|
||||||||||||||||||||
Interest
expense
|
(566 | ) | (516 | ) | (1,598 | ) | (1,548 | ) | (6,324 | ) | ||||||||||
Total
other expenses
|
(566 | ) | (516 | ) | (1,598 | ) | (1,548 | ) | (6,324 | ) | ||||||||||
Net
loss
|
(17,885 | ) | (14,256 | ) | (44,781 | ) | (37,251 | ) | (182,853 | ) | ||||||||||
Other
Comprehensive Income (Loss)
|
||||||||||||||||||||
Gain
on foreign currency exchange
|
— | 482 | 295 | 482 | 712 | |||||||||||||||
Total
Comprehensive Loss
|
$ | (17,885 | ) | $ | (13,774 | ) | $ | (44,486 | ) | $ | (36,769 | ) | $ | (182,141 | ) | |||||
Basic
and diluted loss per share
|
$ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||||||
Basic
and diluted weighted average
|
||||||||||||||||||||
common
shares outstanding
|
3,389,000 | 3,150,000 | 3,297,383 | 3,150,000 |
Deficit
|
||||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||
Additional
|
Other
|
During
|
||||||||||||||||||||||
Common
Stock
|
Paid-in
|
Comprehensive
|
Accumulated
|
Development
|
||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Gain
|
Deficit
|
Stage
|
|||||||||||||||||||
Balance
at March 1, 2005 (inception)
|
100,000 | $ | 500 | $ | 100 | $ | — | $ | (500 | ) | $ | — | ||||||||||||
Common
stock issued in exchange for a
|
||||||||||||||||||||||||
Sailing
vessel at $0.034 per share
|
1,150,000 | 39,000 | — | — | — | — | ||||||||||||||||||
Net
loss, period ended August 31, 2005
|
— | — | — | — | — | (18,677 | ) | |||||||||||||||||
Balance
at August 31, 2005
|
1,250,000 | 39,500 | 100 | — | (500 | ) | (18,677 | ) | ||||||||||||||||
Common
stock issued for services
|
||||||||||||||||||||||||
at
$0.04 per share
|
700,000 | 28,000 | — | — | — | — | ||||||||||||||||||
Common
stock issued for services to a
|
||||||||||||||||||||||||
related
party at $0.04 per share
|
700,000 | 28,000 | — | — | — | — | ||||||||||||||||||
Common
stock issued for cash
|
||||||||||||||||||||||||
at
$0.10 per share
|
500,000 | 50,000 | — | — | — | — | ||||||||||||||||||
Contributed
capital
|
— | — | 1,965 | — | — | — | ||||||||||||||||||
Net
loss, year ended August 31, 2006
|
— | — | — | — | — | (70,441 | ) | |||||||||||||||||
Balance
at August 31, 2006
|
3,150,000 | 145,500 | 2,065 | — | (500 | ) | (89,118 | ) | ||||||||||||||||
Contributed
capital
|
— | — | 925 | — | — | — | ||||||||||||||||||
Office
space contributed by an officer
|
— | — | 1,200 | — | — | — | ||||||||||||||||||
Services
contributed by an officer
|
— | — | 7,271 | — | — | — | ||||||||||||||||||
Foreign
currency exchange gain
|
— | — | — | 417 | — | — | ||||||||||||||||||
Net
loss, year ended August 31, 2007
|
— | — | — | — | — | (48,954 | ) | |||||||||||||||||
Balance
at August 31, 2007
|
3,150,000 | 145,500 | 11,461 | 417 | (500 | ) | (138,072 | ) | ||||||||||||||||
Common
stock issued for cash
|
||||||||||||||||||||||||
at
$0.25 per share (unaudited)
|
239,000 | 59,750 | — | — | — | — | ||||||||||||||||||
Office
space contributed by an officer
|
||||||||||||||||||||||||
(unaudited)
|
— | — | 900 | — | — | — | ||||||||||||||||||
Services
contributed by an officer (unaudited)
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— | — | 2,375 | — | — | — | ||||||||||||||||||
Contributed
capital (unaudited)
|
— | — | 440 | — | — | — | ||||||||||||||||||
Foreign
currency exchange gain (unaudited)
|
— | — | — | 295 | — | — | ||||||||||||||||||
Net
loss, quarter ended May 31, 2008
|
||||||||||||||||||||||||
(unaudited)
|
— | — | — | — | — | (44,781 | ) | |||||||||||||||||
Balance
at May 31, 2008 (unaudited)
|
3,389,000 | $ | 205,250 | $ | 15,176 | $ | 712 | $ | (500 | ) | $ | (182,853 | ) |
March
1,
|
||||||||||||
2005
|
||||||||||||
(Inception)
|
||||||||||||
For
the Nine Months Ended
|
Through
|
|||||||||||
May
31,
|
May
31,
|
|||||||||||
2008
|
2007
|
2008
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
loss
|
$ | (44,781 | ) | $ | (37,251 | ) | $ | (182,853 | ) | |||
Adjustments
to reconcile net loss to net cash
|
||||||||||||
used
by operating activities:
|
||||||||||||
Depreciation
expense
|
5,445 | 4,815 | 20,958 | |||||||||
Contributed
capital to fund expenses
|
3,715 | 7,850 | 15,076 | |||||||||
Common
stock issued for services
|
— | — | 56,000 | |||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
(Increase)
decrease in prepaid services.
|
(155 | ) | 750 | (155 | ) | |||||||
Increase
(decrease) in accounts payable
|
||||||||||||
and
accrued liabilities
|
652 | 2,030 | 7,536 | |||||||||
Net
cash used in
|
||||||||||||
operating
activities
|
(35,124 | ) | (21,806 | ) | (83,438 | ) | ||||||
Cash
flows from investing activities:
|
||||||||||||
Cash
paid for fixed assets
|
(7,466 | ) | — | (20,294 | ) | |||||||
Net
cash used in
|
||||||||||||
investing
activities
|
(7,466 | ) | — | (20,294 | ) | |||||||
Cash
flows from financing activities:
|
||||||||||||
Common
stock issued for cash
|
59,750 | — | 109,750 | |||||||||
Proceeds
from related party loans
|
3,100 | 2,400 | 37,500 | |||||||||
Net
cash provided by
|
||||||||||||
financing
activities
|
62,850 | 2,400 | 147,250 | |||||||||
Net
change in cash
|
20,260 | (19,406 | ) | 43,518 | ||||||||
Cash,
beginning of period
|
23,358 | 48,874 | 100 | |||||||||
Cash,
end of period
|
$ | 43,618 | $ | 29,468 | $ | 43,618 | ||||||
Supplemental
disclosure of cash flow information:
|
||||||||||||
Cash
paid during the period for:
|
||||||||||||
Income
taxes
|
$ | — | $ | — | $ | — | ||||||
Interest
|
$ | — | $ | — | $ | — | ||||||
NON
CASH FINANCING ACTIVITIES:
|
||||||||||||
Common
stock issued for services
|
$ | — | $ | — | $ | 56,000 |
·
|
Marine
Environment and Safety at Sea
|
·
|
Life
Rafts and Ditch Bags
|
·
|
Medical
Preparedness and First Aid
|
·
|
Features
of Offshore Capable Vessels
|
·
|
Rigging
and Deck Gear
|
·
|
Tools,
Mechanical and Electrical Skills
|
·
|
Sails,
Ropework and Sewing
|
·
|
Sail
Handeling
|
·
|
12
Volt Electrical Systems
|
·
|
Boat
Electronics, Instruments, Radio and
Radar
|
·
|
Auxillary
Diesel Maintenance and Repair
|
·
|
Heavy
Weather Seamanship
|
·
|
Weather,
Pilot Charts and Navigation
|
·
|
Passagemaking
|
·
|
Boat
Maintenance, Provisioning and Waste
Disposal
|
·
|
Ships
Papers, Zarpes and Permits
|
Vessel
Name
|
Six
String
|
Hailing
Port
|
Loveland,
Colorado
|
Make/Model
|
Jason 35
Cutter
|
Type
|
Aft cockpit, cutter rigged
sailing vessel
|
Navigation
Limits
|
Suitable for recreational
costal and offshore service
|
Current Fair
Market Value
|
$43,000 to
$47,000
|
Replacement Value as
Equipped
|
$320,000
|
Model
Year
|
Hull constructed 1982 with
launch date in 1986
|
Builder
|
Custom Yacht Builders,
Ontario, Canada
|
HIN
Number
|
Canadian Issued:
0781B3401
|
Official
Number
|
Federal Documentation
1092461
|
Aux.
Propulsion
|
Faryman R30M 24HP naturally
aspired
|
Hull/Deck
Color
|
White
|
LOA
|
34 feet 6
inches
|
LWL
|
27 feet 4
inches
|
Beam
|
11 feet 2
inches
|
Draft
|
5
feet
|
Displacement
|
16,800 pounds dry
weight
|
Sail
Area
|
634 square
feet
|
Staff
|
|
$
|
4,000
|
(1)
|
Fuel
and
Phone
|
|
|
300
|
|
Provisions
and
Supplies
|
|
|
900
|
|
Travel
and
Lodging
|
|
|
1,500
|
|
Note
Interest
|
|
|
450
|
|
Home
Office
Rent
|
|
|
300
|
|
Bookkeeper
|
|
|
200
|
|
Total
|
|
$
|
7,600
|
|
Staff
|
|
$
|
4,000
|
|
Fuel
and
Phone
|
|
|
500
|
|
Provisions
and Supplies
|
|
|
2,700
|
|
Travel
and
Lodging
|
|
|
500
|
|
Note
Interest
|
|
|
500
|
|
Home
Office
Rent
|
|
|
300
|
|
Bookkeeper
|
|
|
250
|
|
|
|
|
|
|
Total
|
|
$
|
8,750
|
|
One-time
costs for Form SB-2
|
|
$
|
11,500
|
|
One-time
Printing and
Postage
|
|
|
1,000
|
|
Total
One-Time Costs
|
|
$
|
12,500
|
|
|
|
|
|
|
Annual
Audit, Form 10-K, Form
10Qs
|
|
|
12,500
|
|
Annual
Transfer
agent
|
|
|
2,500
|
|
Annual
legal
|
|
|
5,000
|
|
Total
Annual Public Company Costs
|
|
$
|
20,000
|
|
Quarterly
Revenue from Training Voyages
|
|
|||
$1,750
per student X 2 students X 6 voyages
|
$ |
21,000
|
||
Quarterly
Operating Expense
|
8,750
|
|||
Quarterly
Public Company Expense
|
5,000
|
|||
Quarterly
Marketing Expense
|
750
|
|||
Less
Total Quarterly Expenses
|
-14,500
|
|||
Estimated
Quarterly Cash Flow
|
$ |
6,500
|
|
31.1
|
Certification
of Principal Executive and Financial
Officer
|
|
32.1
|
Section
1350 Certification
|
(b)
|
Reports
on Form 8-K
|
ROSEWIND
CORPORATION
(Registrant)
|
|||
July 14, 2008
|
By:
|
/s/ James B. Wiegand | |
James B. Wiegand | |||
President | |||