UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended February 28, 2003
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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 333-61801
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JURAK CORPORATION WORLD WIDE, INC.
(Exact name of registrant as specified in its charter)
MINNESOTA 88-0407679
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1181 Grier Drive, Suite C, Las Vegas, NV 89119-3746
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(Address of principal executive offices)
(702) 914-9688
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(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 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 ___
15,527,750 Common Shares were outstanding as of April 10, 2003
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JURAK CORPORATION WORLD WIDE, INC.
I N D E X
Page
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Balance Sheets
February 28, 2003 (Unaudited) and
May 31, 2002 1
Statements of Operations
Three months ended February 28,
2003 and 2002 (Unaudited) and Nine Months
Ended February 28, 2003 and 2002 (Unaudited) 2
Condensed Statements of Cash Flows
Nine months ended February 28,
2003 and 2002 (Unaudited) 3
Selected Notes to Condensed Financial
Statements (Unaudited) 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 5
PART II. OTHER INFORMATION 6-7
Part I. FINANCIAL INFORMATION
---------------------
Item I. FINANCIAL STATEMENTS
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JURAK CORPORATION WORLD WIDE, INC.
CONDENSED BALANCE SHEETS
February 28, May 31,
ASSETS 2003 2002
----------- -----------
(Unaudited) (Audited)
Cash (including savings) $ 31,889 $
Inventories 149,491 99,628
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Total current assets 181,380 99,628
Property, plant and equipment - net 3,638 18,638
Other assets 64,544 99,544
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$ 249,562 $ 217,810
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Checks issued in excess of bank balance $ $ 10,423
Accounts payable 55,781 57,474
Accrued compensation 390,552 286,563
Payable to related party 198,336 148,336
Payable to stockholder, officer 1,436,473 1,314,920
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Total current liabilities 2,081,142 1,817,716
STOCKHOLDERS' DEFICIT:
Common stock 15,528 15,528
Additional paid-in capital 569,158 569,158
Accumulated deficit (2,416,266) (2,184,592)
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(1,831,580) (1,599,906)
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$ 249,562 $ 217,810
=========== ===========
Note: The balance sheet at May 31, 2002 has been taken from the audited
financial statements at that date, and has been condensed.
See Notes to Condensed Financial Statements.
1
JURAK CORPORATION WORLD WIDE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
February 28 February 28
----------------------------- -----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
Sales $ 681,641 $ 347,268 $ 1,886,491 $ 1,069,972
Cost of sales 26,165 63,337 175,236 132,968
------------ ------------ ------------ ------------
Gross profit 655,476 283,931 1,711,255 937,004
Selling, general and administrative expense 649,500 411,091 1,863,410 1,198,342
------------ ------------ ------------ ------------
Income (loss) from operations 5,976 (127,160) (152,155) (261,338)
------------ ------------ ------------ ------------
Other income (expense):
Interest income 30 -- 50 40
Interest expense (27,028) (24,779) (79,569) (68,161)
------------ ------------ ------------ ------------
(26,998) (24,779) (79,519) (68,121)
------------ ------------ ------------ ------------
Loss before income taxes (21,022) (151,939) (231,674) (329,459)
Income taxes -- -- -- --
------------ ------------ ------------ ------------
Net loss $ (21,022) $ (151,939) $ (231,674) $ (329,459)
============ ============ ============ ============
Loss per common share $ (.01) $ (.01) $ (.02) $ (.02)
============ ============ ============ ============
Loss per common share assuming dilution $ (.01) $ (.01) $ (.02) $ (.02)
============ ============ ============ ============
Weighted average outstanding shares 15,527,750 15,527,750 15,527,750 15,527,750
============ ============ ============ ============
See Notes to Condensed Financial Statements.
2
JURAK CORPORATION WORLD WIDE, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
February 28
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2003 2002
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(231,674) $(329,459)
Depreciation 15,000 18,900
Changes in current assets and liabilities:
Inventories (49,863) 55,125
Accounts payable (1,693) 804
Accrued compensation 103,989 112,290
Payable to related party 50,000 72,000
Payable to stockholder, officer 121,553 74,214
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Net cash provided by (used in) operating activities 7,312 3,874
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment (2,100)
Other assets 35,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Checks issued in excess of bank balance (10,423)
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Net increase (decrease) in cash and savings 31,889 1,774
Cash and savings:
Beginning of period 33,346
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End of period $ 31,889 $ 35,120
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See Notes to Condensed Financial Statements.
3
JURAK CORPORATION WORLD WIDE, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Condensed Financial Statements:
The condensed balance sheet as of February 28, 2003, the statement of
operations for the three-month and nine-month periods ended February
28, 2003 and 2002, and the condensed statement of cash flows for the
nine-month periods then ended have been prepared by the Company,
without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly
the financial position, results of operations and changes in cash flows
at February 28, 2003 and for all periods presented have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been condensed
or omitted. It is suggested that these condensed financial statements
be read in conjunction with the financial statements and notes thereto
included in the Company's May 31, 2002 audited financial statements.
The results of operations for the period ended February 28, 2003 are
not necessarily indicative of the operating results for the full year.
The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern.
Since its inception, the Company has incurred significant losses. The
Company may incur further operating losses and experience negative cash
flows in the future. Achieving profitability and positive cash flows
depends on the Company's ability to generate sufficient revenues and
its ability to raise additional capital. There can be no assurances
that the Company will be able to generate sufficient revenues or raise
additional capital to achieve and sustain profitability and positive
cash flow in the future. These conditions raise substantial doubt about
the Company's ability to continue as a going concern. The financial
statements do not include any adjustments that might result from the
outcome of these uncertainties.
Note 2. Inventories:
Inventories consist of the following:
February 28, May 31,
2003 2002
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Raw materials $ 45,620 $ 16,287
Finished goods 103,871 83,341
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Totals $ 149,491 $ 99,628
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Note 3. Stockholders' Deficit:
During the nine months ended February 28, 2003, stockholders' deficit
changed for net loss of $231,674.
4
JURAK CORPORATION WORLD WIDE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Company has continued to increase its revenue from sales of its
products. There were sales of $681,641 during the three months ended February
28, 2003, compared to $347,268 for the same period in 2002. There were cost of
sales of $26,165 in 2003, and cost of sales in 2002 was $63,337, for a gross
profit of $655,476 in 2003, compared to a gross profit of $283,931 in 2002.
During the same period the Company expended selling, general, and administrative
expenses of $649,500 in 2003 for a net loss of $21,022; in 2002 it expended
selling, general and administrative expenses of $411,091 for a net loss of
$151,939. The net loss for both years was $.01 per share.
There were sales of $1,886,491 during the nine months ended February
28, 2003, compared to $1,069,972 for the same period in 2002. There were cost of
sales of $175,236 in 2003, and cost of sales in 2002 was $132,968, for a gross
profit of $1,711,255 in 2003, compared to a gross profit of $937,004 in 2002.
During the same period the Company expended selling, general, and administrative
expenses of $1,863,410 in 2003 for a net loss of $231,674; in 2002 it expended
selling, general and administrative expenses of $1,198,342 for a net loss of
$329,459. The net loss for both years was $.02 per share.
SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the dates of the financial statements and reported amounts of revenues and
expenses during the reporting periods. The Company's significant accounting
policies are described in Note 1 to the financial statements for the year ended
May 31, 2002. The accounting policies used in preparing our interim 2003
financial statements are the same as those described in May 31, 2002 financial
statements. The most significant estimates and assumptions relate to the
valuation of inventory and the liability for the stock bonus plan. Actual
amounts could differ from these estimates.
Inventory Valuation
Inventories consist primarily of raw materials, finished goods and
supplies and are valued at the lower of cost or market (first-in, first-out
method).
Stock Bonus Plan
Distributors are awarded points based on sales which will be
redeemable for shares of the Company. The amount of the liability for this plan
at February 28, 2003 is approximately $183,000.
5
PART II. OTHER INFORMATION
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Item 1. Legal Proceedings
The Company is aware of no legal proceeding which is pending or
threatened to which the Company is a party or of which its property is
subject.
Item 6. Exhibits and Reports on Form 8-K
(b) No reports on Form 8-K were filed during the nine months ended
February 28, 2003.
SIGNATURE
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.
JURAK CORPORATION WORLD WIDE, INC.
Date: April 10, 2003 By: /s/ Anthony Carl Jurak
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Anthony Carl Jurak
Chairman of the Board and Director
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CERTIFICATIONS
I, Anthony Carl Jurak, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Jurak Corporation
World Wide, Inc.;
2. Based on my knowledge, this quarterly 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 circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly 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 quarterly report;
4. I am responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) 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 quarterly 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
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
5. 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 the 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 identified 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. I have indicated in this quarterly report whether or not 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.
DATE: APRIL 10, 2003 SIGNED: /S/ ANTHONY CARL JURAK
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NAME: ANTHONY CARL JURAK
TITLE: CHIEF EXECUTIVE OFFICER
7
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
I, Anthony Carl Jurak, the Chief Executive Officer and principal financial
officer of Jurak Corporation World Wide, Inc. (the "Company") in compliance with
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, hereby certify that, the Company's Quarterly Report on Form 10-QSB
for the period ended February 28, 2003 fully complies with the requirements of
Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and fairly
presents, in all material respects, the financial condition and results of
operations of the Company.
DATE: APRIL 10, 2003 SIGNED: /S/ ANTHONY CARL JURAK
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NAME: ANTHONY CARL JURAK
TITLE: CHIEF EXECUTIVE OFFICER
8