QUARTERLY REPORT FOR 03/08
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED March 31, 2008 Commission file number 0-7376
Hynes & Howes Insurance Counselors, Inc.
(Exact name of registrant as specified on its charter)
Iowa 42-0948341
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2920 Harrison St., Davenport, Iowa 52803
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (563) 326-6401
Indicate by check mark whether the registrant (1) has filed all annual,
quarterly and other reports required to be filed with the Commission and
(2) has been subject to the filing requirements for at least the past
90 days. Yes XX No .
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
11,222,699
EX-99.1
NOTES TO FINANCIAL STATEMENTS FOR 03/08
HYNES & HOWES INSURANCE COUNSELORS, INC.
Notes to Financial Statements
March 31, 2008
Note 1. Filing of Forms 8-K
A form 8-K was filed for the quarter reporting a change in
auditors.
Note 2. Management's Analysis of Income From Operations
Income from operations for the six months ended March 31, 2008
decreased $40,130 as compared to the six month period ended
March 31, 2007, due to decreased interest income and increased
management fees.
EX-99.2
OTHER INFORMATION FOR 03/08
HYNES & HOWES INSURANCE COUNSELORS, INC.
Part II: Other information
There were no events during this quarter that would be reportable
under the Items 1 through 8 of the Form 10-Q for Registrant.
Item 9. Exhibits and Reports on Form 8-K
A form 8-K was filed during the quarter for which this report is
filed reporting a change in auditors.
EX-99.3
REGULATION S-X FOR 03/08
Regulation S-X, Section 10-01 (b) (8)
This interim financial statement reflects all adjustments which
are, in the opinion of management, necessary to a fair statement
of the results for the interim period. The corporation has
no bonus or profit sharing arrangements to be settled at year-end.
EX-99.4
SIGNATURES FOR 03/08
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
HYNES & HOWES INSURANCE COUNSELORS, INC.
By:_____________________________________
Marsha Baker, President
This corporation has no treasurer.
Dated___________________ By:_____________________________________
Monica Wilcher, Secretary
EX-99.5
COMPUTATION OF EPS FOR 03/08
HYNES & HOWES INSURANCE COUNSELORS, INC.
Computation of Earnings (Loss) Per Common Share
For the Six Months Ended March 31, 2008 and 2007
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2008 2007 2008 2007
Common Shares Outstanding:
Beginning of Period 11,222,699 11,222,699 11,222,699 11,222,699
End of Period 11,222,699 11,222,699 11,222,699 11,222,699
Average Number of Shares
Outstanding for the Period 11,222,699 11,222,699 11,222,699 11,222,699
Net Income (Loss) (41,274) (35,084) (92,924) (56,794)
Earnings (Loss) Per Common Share:
Net Income $ 0.00 $ 0.00 $ 0.00 $ 0.00
EX-99.6
BALANCE SHEET FOR 03/08
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
March 31, 2008 and 2007
(Unaudited)
March 31,
2008 2007
Assets
Current Assets:
Cash in Bank $ 25,612 $ 22,340
Other Current Assets 0.00 4,678
Total Current Assets $ 25,612 $ 27,018
Investments:
Contracts Receivable-Real Estate 253,796 472,292
Real Estate on Hand 116,159 56,574
Equipment 2,624 4,766
Total Investments $ 372,579 $ 533,632
Total Assets $ 398,191 $ 560,650
Liabilities and Stockholders' Equity
Current Liabilities:
Buyers Escrow $ 2,519 $ 5,610
Deferred gain on sales 8,964 0
Accounts Payable 0 0
Total Current Liabilities $ 11,483 $ 5,610
Long Term Liabilities:
Total Long Term Liabilities $ 0 $ 0
Total Liabilities $ 11,483 $ 5,610
Stockholders' Equity:
Capital Stock, no par value, 100,000,000 shares
authorized, 11,260,675 shares issued $ 3,780,765 $ 3,780,765
Paid in Capital 100 100
Retained Earnings (Deficit) (3,360,905) (3,192,573)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 386,708 $ 555,040
Total Liabilities and Stockholders'
Equity $ 398,191 $ 560,650
EX-99.7
STATEMENT OF OPERATIONS FOR 03/08
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Six Months Ended March 31, 2008 and 2007
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the six months ended March 31, 2008 and 2007, reflect, in the
opinion of the Company, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the results of operations for such
periods. The results for interim periods are not necessarily indicative of
results to be expected for the year.
Three Months Ended Six Months Ended
March 31, March 31,
2008 2007 2008 2007
Operating Income:
Interest $ 6,656 $ 12,348 $ 12,868 $23,835
Other Income 583 (24,710) (12,880) (22,370)
Total Operating Income 7,239 $(12,362) $( 12) $ 1,465
Operating Expenses:
Management Fees $19,500 $ 12,000 $39,000 $24,000
Legal and Audit 4,061 383 12,279 9,592
Other Operating Expenses 24,952 10,339 41,633 20,667
Total Operating Expenses$48,513 $ 22,722 $92,912 $54,259
Income(Loss)from Operations (41,274) $(35,084) $(92,924) $(52,794)
Provision for Income Taxes 0 0 0 0
Net Income (Loss) (41,274) $(35,084) $(92,924) $(52,794)
Earnings Per Common Share $ 0 $ 0 $ 0 $ 0
Dividends per Common Share $ 0 $ 0 $ 0 $ 0
EX-99.8
STATEMENT OF CASH FLOW FOR 03/08
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Cash Flow
For the Six Months Ended March 31, 2008 and 2007
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Six Months Ended
March 31,
2008 2007
Cash Flows from Operating Activities:
Interest Received $ 12,868 $ 23,835
Other Income Received 1,339 2,321
Legal, Audit and Management Fees Paid (51,279) (33,592)
Cash Paid to Suppliers for
Operating Expenses (41,633) (81,929)
Net Cash Provided (Used)
by Operating Activities $ (78,705) $(89,365)
Cash Flow from Financing Activities:
Proceeds from loan receivable 0 0
Purchase of Equipment $ 0 0
Net Cash Provided (Used)
by Financing Activities $ 0 0
Cash Flow from Investing Activities:
Principal Collected on Real Estate
Contracts $ 84,369 $110,207
Purchase of Real Estate Contracts 0 0
Buyers Escrow Received (Paid Out) (2,392) (2,404)
Purchase of real estate 0 (18,852)
Net Cash Provided (Used)
by Investing Activities $ 81,977 $ 93,759
Net Increase (Decrease) in Cash
and Cash Equivalents $ 3,272 $ 4,394
Cash & Cash Equivalents at
Beginning of Period $ 22,340 $ 17,946
Cash and Cash Equivalents at End of Period $ 25,612 $ 22,340
EX-27
ART. 5 FDS FOR 03/31/08
PERIOD-TYPE 6-MOS
FISCAL-YEAR-END SEP-30-2007
PERIOD-END MAR-31-2008
CASH 25,612
SECURITIES 0
RECEIVABLES 253,796
ALLOWANCES 0
INVENTORY 0
CURRENT-ASSETS 0
REAL ESTATE 116,159
PP&E 19,252
DEPRECIATION 16,628
TOTAL-ASSETS 398,191
CURRENT-LIABILITIES 11,483
LONG-LIABILITIES 0
BONDS 0
PREFERRED-MANDATORY 0
PREFERRED 0
COMMON 3,780,765
OTHER-SE 100
TOTAL-LIABILITY-AND-EQUITY 398,191
SALES 0
TOTAL-REVENUES 14,207
CGS 0
TOTAL-COSTS 92,912
OTHER-EXPENSES 0
LOSS-PROVISION 0
INTEREST-EXPENSE 0
INCOME-PRETAX (92,924)
INCOME-TAX 0
INCOME-CONTINUING 0
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME (92,924)
EPS-PRIMARY 0
EPS-DILUTED 0
exhibit31
EXHIBIT (31)
RULE 13a-14(a)/25d-14(a) CERTIFICATIONS
I, Marsha Baker, certify that:
(1) I have reviewed this quarterly report on Form 10Q of Hynes and
Howes Insurance Counselores, Inc., and;
(2) Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circum-
stances under which such statements were made, not misleading
with respect to the period covered by this report;
(3) Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in
this report;
(4) The registrant's other certifying officer(s) and I are responsible
for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange
Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this report (the "Evaluation Date"); and
(c) Presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
(5) The registrant's other certifying officer(s) and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and
the audit committee of registrant's board of directors (or persons
performing equivalent functions):
(a) All significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identitified for the registrant's auditors any material
weaknesses in internal controls; and
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
(6) The registrant's other certifying officer(s) and I have indicated in
this report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
Marsha Baker
- ----------------------
(Marsha Baker)
President
April 30, 2008
exhibit32
EXHIBIT (32)
SECTION 1350 CERTIFICATIONS
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, the undersigned officer of Hynes & Howes Insurance
Counselors, Inc. (the "Company") certifies to his knowledge that:
(1) The Quarterly Report on Form 10-Q of the Company for the quarterly
period ended March 31, 2008, fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in that Form 10-Q fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
Marsha Baker
- ---------------------
(Marsha Baker)
President
April 30, 2008