Humanity Capital Holding 10QSB 2004 Q4 Quarterly report (small business)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-QSB

X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended December 31, 2004

_ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to _____

TABATHA IV, INC.

(Name of small business in its charter)

Colorado	0-31765	84-1536520
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)
1926 S. Oswego Way Aurora, Colorado		80014
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (303) 752-4637

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities 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 ____

Applicable only to issuers involved in bankruptcy proceedings during the past five years:

Check whether the issuer has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes ___ No ___

Applicable only to corporate issuers:

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 7,332,500 as of December 31, 2004.

Transitional Small Business Disclosure Format (Check one): Yes __ No X

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS AND EXHIBITS

(a) The unaudited financial statements of registrant as of and for the period ending December 31, 2004 follow.

TABATHA IV, INC.

(A Development Stage Company)

FINANCIAL STATEMENTS

December 31, 2004

INDEX TO FINANCIAL STATEMENTS:

Balance Sheet	F-1
Statements of Operations	F-2
Statements of Cash Flows	F-3
Notes to Financial Statements	F-4

TABATHA IV, INC.

(A Development Stage Company)

BALANCE SHEET

December 31, 2004

(Unaudited)

	ASSETS
			December 31, 2004
*CURRENT ASSETS*
	Cash and cash equivalents		$ 806


		Total current assets	806

		TOTAL ASSETS	$ 806



	LIABILITIES AND STOCKHOLDERS' EQUITY

*CURRENT LIABILITIES*			$ -


*STOCKHOLDERS' EQUITY*
	Preferred stock, no par value; 10,000,000
		shares authorized; no shares issued and outstanding	-
	Common stock, no par value; 100,000,000
		shares authorized; 7,332,500 shares issued and
		outstanding	77,050
	Deficit accumulated during the development
		stage	(76,244)

			806

		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 806

The accompanying notes are an integral part of the financial statements.

F-1

TABATHA IV, INC.

( A Development Stage Company)

STATEMENTS OF OPERATIONS

(Unaudited)

			For the period
			from inception	For the three	For the three	For the six	For the six
			(March 17, 2000)	months ended	months ended	months ended	months ended
			to December 31,	December 31,	December 31,	December 31,	December 31,
			2004	2004	2003	2004	2003
REVENUES
	Interest income		$ 240	$ -	$ -	$ -	$ -

EXPENSES
	Selling, general and administrative expense		43,525	-	-	-	-
	Accounting		10,499	375	-	3,975	-
	Legal		4,614	-	-	-	-
	Rent		2,850	150	150	300	300
	Office supplies		1,696	530	-	842	90
	Non-cash compensation		13,300	-	-	-	-

		Total expenses	76,484	1,055	150	5,117	390

NET LOSS			(76,244)	(1,055)	(150)	(5,117)	(390)

Accumulated deficit

	Balance, beginning of period		-	(75,189)	(67,913)	(71,127)	(67,673)

	Balance, end of period		$ (76,244)	$ (76,244)	$ (68,063)	$ (76,244)	$ (68,063)

NET LOSS PER SHARE				$ (NIL)	$ (NIL)	$ (NIL)	$ (NIL)

WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING				7,297,174	9,962,500	7,207,609	9,962,500

The accompanying notes are an integral part of the financial statements.

F-2

TABATHA IV, INC.

(A Development Stage Company)

STATEMENTS OF CASH FLOWS

(Unaudited)

					For the period
					from inception	For the six	For the six
					(March 17, 2000)	months ended	months ended
					to December 31,	December 31,	December 31,
					2004	2004	2003
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss				$ (76,244)	$ (5,117)	$ (390)
	Adjustments to reconcile
		net loss to net cash flows from
		operating activities:
			Rent expense		2,850	300	300
			Stock issued for services		43,525	-	-
			Warrants issued for services		13,300	-	-
			Changes in assets and liabilities:
				Decrease in other receivable	-	-	-
				Decrease in accounts payable	-	(1,875)	-


				Net cash flows from operating activities	(16,569)	(6,692)	(90)

CASH FLOWS FROM INVESTING ACTIVITIES					-	-	-

CASH FLOWS FROM FINANCING ACTIVITIES
	Issuance of common stock				17,375	6,275	-

				Net cash flows from financing activities	17,375	6,275	-

NET INCREASE (DECREASE) IN CASH
		AND CASH EQUIVALENTS			806	(417)	(90)

CASH AND CASH EQUIVALENTS,
		BEGINNING OF PERIOD			-	1,223	2,202

CASH AND CASH EQUIVALENTS,
		END OF PERIOD			$ 806	$ 806	$ 2,112

The accompanying notes are an integral part of the financial statements.

F-3

TABATHA IV, INC.

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

December 31, 2004

(Unaudited)

Management’s Representation of Interim Financial Information

The accompanying financial statements have been prepared by Tabatha IV, Inc. without audit 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 generally accepted accounting principles have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These financial statements include all of the adjustments which, in the opinion of management, are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. These financial statements should be read in conjunction with the audited financial statements at June 30, 200 4.

F-4

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this report, including statements in the following discussion which are not statements of historical fact, 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 10QSB 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.

Liquidity and Capital Resources

As of December 31, 2004, the Company remains in the development stage. Since inception, it has experienced no significant change in liquidity or capital resources or stockholders' equity other than the receipt of proceeds in the amount of $17,375 from its inside capitalization funds. Consequently, for the period ended December 31, 2004, the Company's balance sheet reflects current and total assets of $806 in the form of cash and cash equivalents, and current liabilities of $ 0.

The Company does not believe its existing cash resources will be sufficient to pay costs associated with carrying out its plan of operations for the remainder of the fiscal year. Therefore it expects to require additional capital (see "Need for Additional Financing" below) during the fiscal year.

Plan of Operations

The Company expects to continue its efforts to locate a suitable business acquisition candidate and thereafter to complete a business acquisition transaction. The Company anticipates incurring a loss for each quarter and for the full fiscal year as a result of expenses associated with compliance with the reporting requirements of the Securities Exchange Act of 1934, and expenses associated with locating and evaluating acquisition candidates. 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.

Need for Additional Financing

The Company believes it 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 during the current 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 receiving such funds in the form of advancements from current shareholders without the issuance of additional shares or other securities, or through the private placement of restricted securities. In addition, in order to minimize the amount of additional cash which is required in order to carry out its bu siness plan, the Company might seek to compensate certain service providers by issuances of stock in lieu of cash.

ITEM 3.

CONTROLS AND PROCEDURES

The Company's Chief Executive Officer and Chief Financial Officer (or those persons performing similar functions), after evaluating the effectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934, as amended) as of a date within 90 days before the filing date of this quarterly report (the "Evaluation Date"), have concluded that, as of the Evaluation Date, the Company's disclosure controls and procedures were effective to ensure the timely collection, evaluation and disclosure of information relating to the Company that would potentially be subject to disclosure under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. There were no significant changes in the Company's internal controls or in other fact ors that could significantly affect the internal controls subsequent to the Evaluation Date.

PART II - OTHER INFORMATION

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

In December 2004, the Company sold 50,000 shares for $.02 per share. The proceeds of $1,000 were used for working capital.

ITEM 6.

EXHIBITS.

The following exhibits are filed herewith:

31.1

Certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.

32.1

Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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.

TABATHA IV, INC.

By: /S/ JOHN BALLARD
John Ballard, President, Chief Financial Officer and a Director

Date: February 18, 2005

By: /S/ DIANE THELEN
Diane Thelen, Secretary, Treasurer, and a Director

Date: February 18, 2005

Humanity Capital Holding Inactive 10QSB2004 Q4 Quarterly report (small business)