UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2008
[ ]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: 0-51355
BASSET ENTERPRISES, INC.
(Exact name of registrant as specified in its charter)
Nevada |
| 13-4067603 |
(State or other jurisdiction of incorporation) |
| (IRS Employer Identification Number) |
| ||
P.O. Box 110310, Naples, FL 34108-0106 | ||
(Address of principal executive offices) | ||
1-239-598-2300 | ||
Registrant’s telephone number, including area code: | ||
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 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. [ X ] Yes [ ] No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ] | Accelerated filer [ ] |
Non-accelerated filer [ ] (Do not check if a smaller reporting company) | Smaller reporting company [ X ] |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [ X ] Yes [ ] No
As of June 30, 2008 the Issuer had 1,965,200shares of common stock issued and outstanding.
1
PART I-FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS.
The financial statements of Basset Enterprises, Inc. (the "Company"), a Nevada corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission. Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company in the Company's Form 10-KSB for the fiscal year ended December 31, 2007.
BASSET ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
PERIOD ENDED JUNE 30, 2008
INDEX TO FINANCIAL STATEMENTS: | Page |
|
|
Balance Sheet | 3 |
|
|
Statements of Operations | 4 |
|
|
Statements of Stockholders’ Equity (Deficit) | 5 |
|
|
Statements of Cash Flows | 6 |
|
|
Notes to Unaudited Financial Statements | 7-8 |
2
Basset Enterprises, Inc. | |||||||
(A Development Stage Company) | |||||||
BALANCE SHEET | |||||||
As of June 30, 2008 and December 31, 2007 | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS | 2008 | 2007 | |||||
CURRENTS ASSETS |
|
|
|
|
|
|
|
Cash |
|
|
|
|
| $ - | $ - |
|
|
|
|
|
|
|
|
TOTAL CURRENT ASSETS |
|
|
|
|
| - | $ - |
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
|
|
| - | $ - |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
| |||||
|
|
| |||||
CURRENT LIABILITIES |
|
|
|
|
|
|
|
Accrued Liabilities |
|
|
|
|
| 1,373 | - |
Payable to Stockholder |
|
|
|
|
| 19,821 | $ 11,875 |
TOTAL CURRENT LIABILITIES |
|
|
|
|
| 21,193 | 11,875 |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES |
|
|
|
|
| 21,193 | $ 11,875 |
|
|
|
|
|
|
|
|
STOCKHOLDERS' DEFICIT |
|
|
|
|
|
|
|
Preferred stock: par value $.01; 5,000,000 shares |
|
|
|
|
| ||
authorized; no shares issued & outstanding |
|
|
|
|
| - | - |
Common stock: par value $.001; 50,000,000 shares |
|
| |||||
authorized; 1,965,200 shares issued and outstanding |
| 1,965 | |||||
Additional paid in capital |
|
|
|
| 10,151 | 2,760 | |
Deficit accumulated during the development stage |
|
|
|
|
| (25,918) | (16,660) |
TOTAL STOCKHOLDERS' DEFICIT |
|
|
|
|
| (21,193) | (11,875) |
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
|
|
|
| $ - | $ - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | |||||||
3
Basset Enterprises, Inc. | ||||||
(A Development Stage Company) | ||||||
STATEMENT OF OPERATIONS | ||||||
From June 4, 1999 (Date of Inception) June 30, 2008 | ||||||
| ||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | Cumulative Amount from June 4, 1999 (inception) to June 30, | |||
| 2008 | 2007 | 2008 | 2007 | 2008 | |
|
|
|
|
|
| |
REVENUES |
|
|
|
|
| |
Sales | $ - | $ - | $ - | $ - | $ - | |
Cost of Sales | - | - | - | - | - | |
|
|
|
|
|
| |
Gross profit | - | - | - | - | - | |
|
|
|
|
|
| |
OPERATING EXPENSES |
|
|
|
|
| |
Administrative and General | 1,873 | 125 | 9,318 | 125 | (25,918) | |
TOTAL OPERATING EXPENSES | 1,873 | 125 | 9,318 | 125 | (25,918) | |
|
|
|
|
|
| |
LOSS FROM OPERATIONS | (1,873) | (125) | (9,318) | (125) | 25,918 | |
|
|
|
|
|
| |
OTHER INCOME |
|
|
|
|
| |
Interest Income | - | - | - | - | - | |
|
|
|
|
|
| |
TOTAL OTHER INCOME | - | - | - | - | - | |
|
|
|
|
|
| |
NET OPERATING INCOME (LOSS) BEFORE INCOME TAXES | (1,873) | (125) | (9,318) | (125) | 25,918 | |
|
|
|
|
|
| |
PROVISION FOR INCOME TAXES | - | - | - | - | - | |
|
|
|
|
|
| |
NET INCOME (LOSS) | $ (1,873) | $ (125) | $ (9,318) | $ (125) | $ 25,918 | |
|
|
|
|
|
| |
Net Loss Per Common Share | ** | ** | ** | ** |
| |
Basic and fully diluted | ** Less than .01 |
|
|
|
|
|
|
|
|
|
|
| |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 1,965,200 | 1,965,200 | 1,965,200 | 1,965,200 |
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
The accompanying notes are an integral part of these financial statements. | ||||||
4
Basset Enterprises, Inc. | |||||||
(A Development Stage Company) | |||||||
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) | |||||||
From June 4, 1999 (Date of Inception) June 30, 2008 | |||||||
|
|
|
|
|
| ||
| Common Stock | Additional | Retained | Total | |||
Par Value of $0.001 |
|
| Paid-in | Earnings | Stockholders' | ||
|
|
| Shares | Amount | Capital | (Deficit) | Equity |
Balance at June 4, 1999 (date of inception) | - |
| $ - | $ - | $ - | ||
Common stock issued for cash | 689,700 | 690 | 2,760 |
| 3,450 | ||
Net loss for the year | - | - | - | (2,394) | (2,394) | ||
Balance December 31, 1999 | 689,700 | 690 | 2,760 | (2,394) | 1,056 | ||
|
|
|
|
|
| ||
Common stock issued for cash | 1,211,000 | 1,211 |
|
| 1,211 | ||
Net loss for the year | - | - | - | (2,160) | (2,160) | ||
Balance December 31, 2000 | 1,900,700 | 1,901 | 2,760 | (4,554) | 107 | ||
|
|
|
|
|
| ||
Common stock issued for cash | 64,500 | 64 | - |
| 64 | ||
Net loss for the year | - | - | - | (171) | (171) | ||
Balance December 31, 2001 | 1,965,200 | 1,965 | 2,760 | (4,725) | - | ||
|
|
|
|
|
| ||
Net loss for the year | - | - | - | - | - | ||
Balance December 31, 2002 | 1,965,200 | 1,965 | 2,760 | (4,725) | - | ||
|
|
|
|
|
| ||
Net loss for the year | - | - | - | - | - | ||
Balance December 31, 2003 | 1,965,200 | 1,965 | 2,760 | (4,725) | - | ||
|
|
|
|
|
| ||
Net loss for the year | - | - | �� - | (6,500) | (6,500) | ||
Balance December 31, 2004 | 1,965,200 | 1,965 | 2,760 | (11,225) | (6,500) | ||
|
|
|
|
|
| ||
Net loss for the period | - | - | - | (5,125) | (5,125) | ||
Balance December 31, 2005 | 1,965,200 | 1,965 | 2,760 | (16,350) | (11,625) | ||
|
|
|
|
|
| ||
Net loss for the period | - | - | - | (125) | (125) | ||
Balance December 31, 2006 | 1,965,200 | 1,965 | 2,760 | (16,475) | (11,750) | ||
|
|
|
|
|
| ||
Net loss for the period | - | - | - | (125) | (125) | ||
Balance December 31, 2007 | 1,965,200 | 1,965 | 2,760 | (16,600) | (11,875) | ||
|
|
|
|
|
| ||
Net loss for the period | - | - | - | (9,318) | (9,318) | ||
Balance June 30, 2008 | 1,965,200 | 1,965 | 2,760 | (25,918) | (21,193) | ||
|
|
|
|
|
| ||
|
|
|
|
|
| ||
The accompanying notes are an integral part of these financial statements. | |||||||
5
Basset Enterprises, Inc. | |||||
(A Development Stage Company) | |||||
STATEMENT OF CASH FLOWS | |||||
From June 4, 1999 (Date of Inception) June 30, 2008 | |||||
| |||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | Cumulative Amount from June 4, 1999 (inception) to June 30, | ||
| 2008 | 2007 | 2008 | 2007 | 2008 |
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
| |
|
|
|
|
| |
Net Income (Loss) | $ (1,873) | $ (125) | $ (7,445) | $ (125) | $ (24,045) |
Adjustment to reconcile net loss to |
|
|
|
|
|
Net cash used in operations: |
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
Accrued liabilities |
| - | - | - | - |
|
|
|
|
|
|
NET CASH USED IN OPERATING ACTIVITIES |
| (125) | (7,445) | (125) | (24,045) |
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
| - | - | - |
|
Increase in payable to stockholder |
| 125 | 7,445 | 125 | 12,820 |
Issuance of common stock |
| - | - | - | 11,225 |
Net cash provided by financing activities |
| 125 | 7,445 | 125 | 24,045 |
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
| - | - | - | - |
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD |
| - | - | - | - |
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD |
| - | - | - | - |
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
|
|
|
|
Cash pain for interest |
| - | - | - | - |
Cash paid for income taxes |
| - | - | - | - |
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements. | |||||
6
BASSET ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
FROM INCEPTION (JUNE 4, 1999) THROUGH JUNE 30, 2008
NOTE 1 ORGANIZATION
Basset Enterprises, Inc. (a development stage enterprise) (the Company) was formed on June 4, 1999 in the State of Nevada. The Company’s activities to date have been primarily directed towards the raising of capital and seeking business opportunities.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation - Development Stage Company
The Company has not earned any revenue from operations. Accordingly, the Company's activities have been accounted for as those of a "Development Stage Enterprise" as set forth in Financial Accounting Standards Board Statement No. 7 ("SFAS 7"). Among the disclosures required by SFAS 7 are that the Company's financial statements be identified as those of a development stage company, and that the statements of operations, stockholders' equity and cash flows disclose activity since the date of the Company's inception.
The accompanying unaudited interim financial statements have been prepared in accordance with Form 10-Q instructions and, in the opinion of management, include all normal adjustments considered necessary to present fairly the financial position as of June 30, 2008 and the results of operations for the three months ended June 30, 2008, 2007 and the period inception (June 4, 1999 through June 30, 2008). The results have been determined on the basis of generally accepted accounting principles and practices and applied consistently with those used in the preparation of the Company's financial statements and notes for the year ended December 31, 2007, as filed on Form 10-KSB.
Certain information and footnote disclosures normally included in the financial statements presented in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that the accompanying unaudited interim financial statements be read in conjunction with the financial statements and notes thereto contained in the Company's 2007 Annual Report on Form 10-KSB. Our results for the six months ended June 30, 2008 may not be indicative of our results for the twelve months ended December 31, 2008.
New Accounting Pronouncements
In March 2008, the FASB released SFAS No. 161,“Disclosures about Derivative Instruments and Hedging Activities.” SFAS No. 161 requires additional disclosures related to the use of derivative instruments, the accounting for derivatives and the financial statement impact of derivatives. SFAS No. 161 is effective for fiscal years beginning after November 15, 2008. The Company is currently assessing the impact the adoption of SFAS No. 161 will have on the Company’s financial statements.
In May 2008, the FASB released SFAS No. 162,“The Hierarchy of Generally Accepted Accounting Principles.” SFAS No. 162 identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that presented in conformity with generally accepted accounting principles in the United States of America. SFAS No. 162 will be effective 60 days following the SEC’s approval of the PCAOB amendments to AU Section 411,The
7
Meaning of Present Fairly in Conformity With Generally Accepted Accounting Principles. The Company does not believe SFAS 162 will have a significant impact on the Company’s financial statements.
NOTE 3 GOING CONCERN
The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not established any source of revenue to cover its operating costs. The Company will engage in very limited activities without incurring any liabilities that must be satisfied in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations or seek other business opportunities through strategic alliances, acquisitions or other arrangeme nts that may dilute the interests of existing stockholders.
NOTE 4 RELATED PARTY TRANSACTIONS
A shareholder of the Company has paid expenses on behalf of the Company in exchange for a payable bearing no interest and due on demand. Total amount paid during the six months ended June 30, 2008 was $7,946. The balance payable to the shareholder at June 30, 2008 and December 31, 2007 were $19,821 and $11,875 respectively.
8
ITEM 2.
MANGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS
CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.
Overview and Recent Developments
Basset Enterprises, Inc. was incorporated under the laws of the State of Nevada on June 4, 1999. To date, the Company's only activities have been organizational ones, directed at developing its business plan and raising its initial capital. The Company has not commenced any commercial operations. The Company has no full-time employees and owns no real estate. The Company is currently a "shell" company with no or nominal operations and no or nominal assets. The Company’s current business plan is to identify, evaluate and investigate various companies with the intent that, if such investigation warrants, a reverse merger transaction be negotiated and completed pursuant to which the Company would acquire a target company with an operating business, with the intent of continuing the acquired company's business as a publicly held entity. The Company has limited capital with which to provide the owners of the target company with any significant cash or other assets and, as such, the Company will only be able to offer owners of a target company the opportunity to acquire a controlling ownership interest in the Company.
For the fiscal year ending December 31, 2008, the Company expects to continue with its efforts to locate a suitable business acquisition candidate and thereafter to complete a business acquisition transaction. The Company does not expect to generate revenues until it completes a business acquisition, and, depending upon the performance of the acquired business, it may also continue to operate at a loss after completion of a business combination. During the next twelve (12) months, the Company will require additional capital in order to pay the costs associated with carrying out its plan of operations and the costs of compliance with its continuing reporting obligations under the Securities Exchange Act of 1934 as amended. This additional capital will be required whether or not the Company is able to complete a business combination transaction
9
during the current fiscal year. Furthermore, once a business combination is completed, the Company’s needs for additional financing are likely to increase substantially.
No specific commitments to provide additional funds have been made by management or other stockholders, and the Company has no current plans, proposals, arrangements or understandings to raise additional capital through the sale or issuance of additional securities prior to the location of a merger or acquisition candidate. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover its expenses. Notwithstanding the foregoing, however, to the extent that additional funds are required, the Company anticipates that it will either continue to rely on its majority shareholder to pay expenses on its behalf, or it will seek to raise capital through the private placement of restricted securities. The majority shareholders are under no obligation to pay such expenses. If the Company is unable to raise additional funds, it will not be able to pursue its business plan . In addition, in order to minimize the amount of additional cash which is required in order to carry out its business plan, the Company might seek to compensate certain service providers by issuances of stock in lieu of cash.
Liquidity and Capital Resources
As of June 30, 2008, the Company’s balance sheet reflects total assets of $nil and total current liabilities of $21,193. The Company has cash on hand of $nil and a deficit accumulated in the development stage of $25,918. The Company does not have sufficient assets or capital resources to pay its on-going expenses while it is seeking out business opportunities, and it has no current plans to raise additional capital through sale of securities. As a result, although the Company has no agreement in place with its shareholders or other persons to pay expenses on its behalf, it is anticipated that the Company will continue to rely on its majority shareholders to pay expenses on its behalf at least until it is able to consummate a business transaction. The majority shareholders are under no obligation to pay such expenses.
Off Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements.
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not Applicable.
ITEM 4T.
CONTROLS AND PROCEDURES.
Disclosure Controls and Procedures
The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosu re. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized
10
and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.
As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified. Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievem ent of these objectives.
Changes in Internal Control over Financial Reporting
There was no change in the Company's internal control over financial reporting during the period ended June 30, 2008, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
PART II-OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS.
The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated. No director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.
ITEM 1A.
RISK FACTORS.
Not Applicable.
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Subsequent to the end of the period covered by this report, as reported on a Definitive 14C Information Statement filed by the Company with the Securities and Exchange Commission on August 11, 2008, and hereby incorporated by reference, as of June 30, 2008, the Company’s Board of Directors and the consenting majority shareholders, adopted and approved resolutions to effect a one-for-fifteen (1-for-15) reverse stock split of the Company’s outstanding shares of common stock (the “Reverse Split”). The Company anticipates that the reverse stock split will become effective on or about September 3, 2008.
11
Once effective, the immediate effect of the Reverse Split will be to reduce the total number of outstanding shares of the Company’s common stock from 1,965,200 to approximately 131,014 shares presently issued and outstanding. The Reverse Split will affect all of the holders of all classes of the Company’s common stock uniformly and will not affect any stockholder’s percentage ownership interest in the Company or proportionate voting power, except for insignificant changes that will result from the rounding of fractional shares. The Reverse Split will not cause a reduction in the Company’s 50,000,000 shares of authorized common stock.
No fractional shares will be issued for any fractional share interest created by the Reverse Split; shareholders will receive a full share of common stock for any fractional share interests created by the Reverse Split.
ITEM 5.
OTHER INFORMATION.
None.
ITEM 6.
EXHIBITS.
(a)
The following exhibits are filed herewith:
31.1
Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2
Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2
Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
BASSET ENTERPRISES, INC.
By: /S/ Cosmo Palmieri
Cosmo Palmieri, President
Date: August 12, 2008
By: /S/ Cosmo Palmieri
Cosmo Palmieri, Chief Financial Officer
Date: August 12, 2008
12
