UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549FORM 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: September 30, 1999
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:
Digital Music Creations, Inc.
(Exact name of registrant as specified in its charter)
Nevada
(State or other jurisdiction of incorporation or organization)88-0406157
(I.R.S. Employer Identification No.)
2209 Fawn Ridge Street, Las Vegas, NV
(Address of principal executive offices)89134
(Zip Code)(702)341-9826
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former 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), 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 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 a court.
Yes [ ] 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 latest practicable date: 885,100
Digital Music Creations, Inc.
(A DEVELOPMENT STAGE COMPANY)
Quarterly report
For the period
March 31 through June 30, 1999
Table of Contents
Page
PART I - FINANCIAL INFORMATION
1
Item 1. Financial Statements
1
Balance Sheet as at March 31, 1999 and June 30, 1999
1
Statement of Operations for the Three Months Ended June 30, 1999 and March 31, 1999
2
Statement of Cash Flows for the Three Months Ended June 30, 1999 and March 31, 1999
3
Notes to Financial Statements
4
Item 2. Management's Discussion and Plan of Operation
6
PART II - OTHER INFORMATION
7
SIGNATURES
8
INDEX TO EXHIBITS
9
PART I - FINANCIAL INFORMATION
Item 1. Unaudited Financial Statements
Digital Music Creations, Inc.
(A Development Stage Company)
BALANCE SHEET
AS AT
March 31, 1999 and June 30, 1999
June 30,
1999March 31,
1999ASSETS
CURRENT ASSETS
Cash
627.00
507.00
Other Current Assets
0.00
0.00
Total Current Assets
627.00
507.00
OTHER ASSETS
Organization Costs net of Amortization
306.00
324.00
Total Assets
933.00
831.00
LIABILITIES & EQUITY
CURRENT LIABILITIES
Accounts Payable
0.00
0.00
Total Current Liabilities
0.00
0.00
OTHER LIABILITIES
Due to Shareholder
360.00
360.00
Total Other Liabilities
360.00
360.00
Total Liabilities
360.00
360.00
EQUITY
Common Stock ($0.001 par value, authorized 20,000,000 shares; 885,100 common shares issued and outstanding as at June 30, 1999)
885.00
885.00
Preferred Stock ($0.001 par value, authorized 5,000,000 shares; none issued and outstanding as at June 30, 1999)
0.00
0.00
Additional Paid in Capital
13,870.00
13,870.00
Donated Capital
1,510.00
0.00
Retained Earnings or (Deficit) accumulated during development stage
(15,692.00)
(14,284.00)
Total Stockholders' Equity
573.00
471.00
Total Liabilities & Owner's Equity
933.00
831.00
Unaudited Financial Statements
See accompanying notes to financial statements
-1-
Digital Music Creations, Inc.
(A Development Stage Company)
STATEMENT OF OPERATIONS
for the Three Months
Ended June 30, 1999 and March 31, 1999
June 30
1999March 31
1999REVENUE
Services
0.00
0.00
COSTS AND EXPENSES
Selling, General and Administrative
1,390.00
6,386.00
Amortization of Organization Costs
18.00
18.00
Amortization of Web Site Development Costs
0.00
0.00
Total Costs and Expenses
1,408.00
6,404.00
Net Ordinary Income or (Loss)
(1,408.00)
(6,404.00)
Weighted average number of common shares outstanding
885,100
885,100
Net Loss Per Share
-0.002
-0.007
Unaudited Financial Statements
See accompanying notes to financial statements
-2-
Digital Music Creations, Inc.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
for the Three Months
Ended June 30, 1999 and March 31, 1999
June 30
1999March 31
1999CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
0.00
0.00
Net Cash provided by Operating Activities
0.00
0.00
Cash paid to suppliers and employees
1,390.00
6,386.00
Cash disbursed for Operating Activities
1,390.00
6,386.00
Net Cash flow provided by Operating Activities
(1,390.00)
(6,386.00)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of plant assets
0.00
0.00
Net Cash used by investing activities
0.00
0.00
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of Capital Stock
0.00
0.00
Advances from Shareholders
1,510.00
0.00
Net cash provided by financing activities
1,510.00
0.00
Net increase (decrease) in cash
120.00
(6,386.00)
Balance as at end of period
627.00
507.00
Unaudited Financial Statements
See accompanying notes to financial statements
-3-
Digital Music Creations, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1999NOTE 1 - HISTORY AND ORGANIZATION OF THE COMPANY
The Company was organized September 29, 1998 under the laws of the State of Nevada, as Digital Music Creations, Inc. The Company has yet to generate any revenues and in accordance with SFAS #7, the Company is considered a development stage company.
On October 2, 1998, the company issued 700,000 Shares of its $0.001 par value common stock for cash of $5,500.00.
On December 7, 1998, the company issued 185,100 Shares of its $0.001 par value common stock for $9,255.00 pursuant to Regulation D, Rule 504.
NOTE 2 - ACCOUNTING POLICIES AND PROCEDURES
Accounting policies and procedures have not been determined except as follows:
- The Company uses the accrual method of accounting.
- The cost of organization, $360.00, is being amortized over a period of 60 months (October 1998 through September 2003).
- Earnings per share are computed using the weighted average number of shares of common stock outstanding.
- The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid since inception.
NOTE 3 - GOING CONCERN
The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has yet to generate any revenues. Without the realization of additional capital, it would be unlikely for the Company to continue as a going concern. It is management's plan to seek additional capital through a private offering of its securities once it gets listed on the NQB's "Pink Sheets" or the OTC-BB.
Unaudited Financial Statements
-4-
Digital Music Creations, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1999NOTE 4 - RELATED PARTY TRANSACTION
The Company neither owns or leases any real or personal property. Office services are provided without charge by a director. Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein. The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.
NOTE 5 - WARRANTS AND OPTIONS
The Company issued the Company's founder and CEO, Frank B. Treadway III, an option to purchase 1,000,000 Shares of common stock of the Company at an option price of $0.001 per share. This option terminates on May 1, 2000, and the option has not been exercised.
Unaudited Financial Statements
-5-
Item 2. Management's Discussion and Plan of Operation
Digital Music Creations, Inc. ("DMC" or the "Company") is a developmental stage company with a principal business objective to design, develop, and market interactive files software for the control and use of sound on personal computers. The Company's products will be designed to add music, voice, and other audio content to a variety of PC environments. The Company plans to provide an environment for creating, editing, and controlling all three audio formats specified for multimedia computers: MIDI, Wave audio, and CD audio, and the Company plans to sell actual MIDI or Wave audio files that can be downloaded by purchasers via the Internet or sent to purchasers on a CD in the mail.
The Company has yet to generate any revenues. Without the realization of additional capital, it would be unlikely for the Company to continue as a going concern. It is management's plan to seek additional capital through a private offering of its securities once it gets listed on the NQB's "Pink Sheets" or the OTC-BB.
The Company neither owns or leases any real or personal property. Office services are provided without charge by a director.
The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.
-6-
PART II - OTHER INFORMATION
Item 6. Exhibits
See INDEX TO EXHIBITS.
-7-
SIGNATURES
Pursuant to the requirements of the Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Digital Music Creations, Inc.
(Registrant)
Date: Thursday, August 26, 1999
By:/s/ Frank B. Treadway III
Frank B. Treadway III, President
-8-
INDEX TO EXHIBITS
Exhibit Number
Name and/or Identification of Exhibit
3.
Articles of Incorporation & By-Laws
(a)Articles of Incorporation of the Company filed September 29, 1998. Incorporated by reference to the exhibits to the Company's General Form For Registration Of Securities Of Small Business Issuers on Form 10 - SB, previously filed with the Commission.
(b)By-Laws of the Company adopted October 2, 1998. Incorporated by reference to the exhibits to the Company's General Form For Registration Of Securities Of Small Business Issuers on Form 10 - SB, previously filed with the Commission.
27.
Financial Data Schedule
Financial Data Schedule of Digital Music Creations ending June 30, 1999
28.
Information from Reports Furnished to State Insurance Regulatory Authorities
Not applicable
-9-
End 10Q
