U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1 TO
FORM 10-QSB/A
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the Quarterly
Period Ended January 31, 2004
Commission file number: 000-27333
---------
AKID CORPORATION
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Colorado 84-1493150
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
16200 WCR 18E, Loveland, Colorado 80537
-------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
970-635-0346
-------------
(Issuer's telephone number)
10077 E. County Line Road, Longmont, Colorado 80501
----------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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
---- ----
State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date.
As of January 31, 2004, 1,230,000 shares of common stock, no par value, were outstanding.
TABLE OF CONTENTS
1
Page
------
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed balance sheet, January 31, 2004 (Unaudited)................... 3
Condensed statements of operations (Unaudited) - Three
and nine months ended January 31, 2004 and 2003, and
for the period from April 9, 1998 (inception) through
January 31, 2004........................................................ 4
Condensed statements of cash flows (Unaudited) - Nine
months ended January 31, 2004 and 2003, and for the
period from April 9, 1998 (inception) through January 31, 2004.......... 5
Notes to condensed financial statements (Unaudited)..................... 6
Item 2. Plan of Operation........................ ...................... 7
Item 3. Controls and Procedures......................................... 7
Part II Other Information........................................... 7
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3 Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures.............................................................. 8
2
AKID CORPORATION
(A Development Stage Company)
Condensed Balance Sheet
January 31, 2004
(Unaudited)
ASSETS
------
Cash $ 2,938 Cash
Liabilities and Shareholders' Deficit
Current liabilities:
Accounts payable and accrued liabilities $ 350 AP
Total current liabilities 350
Shareholders' deficit:
Common stock 2,673 CS
Additional paid-in capital 22,815 APIC
Deficit accumulated during the development stage (22,900)
Total shareholders' deficit 2,588
-----------
$ 2,938
See accompanying notes to condensed financial statements
3
AKID CORPORATION
(A Development Stage Company)
Condensed Statements of Operations
January 31, 2004
(Unaudited)
<TABLE>
<S> <C> <C> <C>
April 9,
1998
(inception)
Three Months Ended Nine Months Ended Through
January 31, January 31, January 31,
2004 2003 2004 2003 2004
Costs and expenses: ------------------ ------------------ -----------
Stock-based compensation (Note 2):
Organization costs $ $ $ $ $ 500
Compensation 3,000 5,000 Comp
Contributed rent (Note 2) 300 300 600 900 6,500 Crent
Rent paid to related party (Note 2) 300 500 RentRP
Other general and administrative co 479 250 2,705 1,581 25,516 SGA
Costs and expenses: ------------------ ------------------ -------------
779 550 6,605 2,481 38,016
Costs and expenses: ------------------ ------------------ -------------
Loss before income taxes and interest (779) (550) (6,605) (2,481) (38,016)
Earnest money deposit 15,000
Interest income 116 Othinc
Costs and expenses: ------------------ ------------------ -------------
Loss before
income taxes (779) (550) (6,605) (2,481) (22,900)
Income tax provision (Note 3) Tax
Costs and expenses: ------------------ ------------------ -------------
Net loss $ (779) $ (550) $(6,605) $(2,481) $(22,900)
Basic and diluted loss per share$ (0.00) $(0.00) $ (0.01) $ (0.00)
Costs and expenses: ================== ==================
Weighted average common
shares outstanding 1,230,000 1,230,000 1,230,000 1,230,000
See accompanying notes to condensed financial statements
</TABLE>
4
AKID CORPORATION
(A Development Stage Company)
Condensed Statements of Cash Flows
(Unaudited)
<TABLE>
<S> <C> <C> <C>
April 9, 1998
(inception)
Nine Months Ended Through
January 31, January 31,
2004 2003 2004
-------- -------- -------------
Net cash provided by (used in)
operating activities �� $ (7,705) $ $ 765
-------- -------- -------------
Cash flows from financing activities:
Proceeds from sale of common 2,300
Payments for offering costs (127)
-------- -------- -------------
Net cash provided by
financing activities 2,173
-------- -------- -------------
Net change in cash (7,705) 2,938
Cash:
Beginning of period 10,643
-------- -------- -------------
End of period $ 2,938 $ $ 2,938
========== ========== ==============
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes $ $ $
========== ========== ==============
Interest $ $ $
========== ========== ==============
</TABLE>
See accompanying notes to condensed financial statements
AKID CORPORATION
(A Development Stage Company)
Notes to Condensed Financial Statements
(Unaudited)
Note 1: Basis of Presentation
The financial statements presented herein have been prepared by the Company in accordance with the accounting policies in its audited financial statements for the year ended April 30, 2003 as filed in its Form 10-KSB and should be read in conjunction with the notes thereto. The Company entered the development stage in accordance with Statement of Financial Accounting Standard ("SFAS") No. 7 on April 9, 1998 and its purpose is to evaluate, structure, and complete a merger with, or acquisition of, a privately owned corporation.
In the opinion of management, all adjustments (consisting only of normal recurring adjustments) which are necessary to provide a fair presentation of operating results for the interim periods presented have been made. The results of operations for the period presented are not necessarily indicative of the results to be expected for the year.
Interim financial data presented herein are unaudited.
Note 2: Related Party Transactions
Corporate Management Services ("CMS") organized the Company in exchange for 1,000,000 shares of the Company's common stock. The common stock was valued at $500 by the Company's Board of Directors.
CMS provided free office space to the Company, on an as needed basis, from inception through February 2003. Commencing in August 2003, Amery Coast Corporation "Amery", an affiliate under common control, began contributing office space to the Company. The Company's Board of Directors has valued this free service at approximately $100 per month, based on prevailing local market rates. The accompanying financial statements include a charge to rent expense and a credit to paid-in capital of $600, $900, and $6,500, respectively, for the nine months ended January 31, 2004 and 2003, and the period from April 9, 1998 (inception) through January 31, 2004.
Commencing in March 2003, the Company began paying Amery Coast Corporation "Amery", an affiliate under common control, rent at the rate of $100 per month. Rent paid to the related party totaled $300, $-0-, and $500, respectively, for the nine months ended January 31, 2004 and 2003, and the period from April 9, 1998 (inception) through January 31, 2004. Amery began contributing rent to the Company commencing in August 2003 as described in the previous paragraph.
Note 3: Income Taxes
The Company records its income taxes in accordance with Statement of Financial Accounting Standard No. 109, "Accounting for Income Taxes". The Company incurred net operating losses during the periods shown on the condensed financial statements resulting in a deferred tax asset, which was fully allowed for, therefore the net benefit and expense result in $-0- income taxes.
5
Part I - Item 2. Plan of Operation
------ -----------------
The Company's plan of operation is to complete a planned merger with an operating company. The Company has one part time employee, incurs minimal rent and administrative expenses, and has no other recurring operational expenses except professional fees incurred as necessary. The Company's president devotes time as required to the affairs of the Company.
Selection of an appropriate business opportunity is complex and risky due to the Company's limited financial resources, the speculative nature of operations, management's limited time commitment to the Company, management's potential conflicts of interest, the burdens of being a reporting company, lack of market research, and competition in the marketplace.
The Company's success is dependent upon consummating a business combination and there are no assurances that this will occur.
Part I - Item 3. Controls and Procedures
------ -----------------------
(a) Evaluation of disclosure controls and procedures
------------------------------------------------
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 principal financial officer has concluded that our disclosure controls and procedures were adequate.
(b) Changes in internal controls
----------------------------
There were 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.
6 Part II - Other Information
------- -----------------
Items 1 through 5
No response required.
Item 6: Exhibits and Reports on Form 8-K
(a). Exhibits:
1. 31: Certification
2. 32: Certification Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Chief Executive
Officer and Principal Financial Officer
(b) Reports on Form 8-K
None.
7
SIGNATURES
----------
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Akid Corporation
Date: March 9, 2004 By: /s/ James B. Wiegand
------------------------
James B. Weigand
President/Secretary
8
