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UNITED
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 2002
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File number 0-25541
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CIGAR KING CORPORATION
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(Exact name of registrant as specified in charter)
NEVADA 91-1948357
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
21--2236 Folkestone Way
West Vancouver, BC, Canada V7S 2X7
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(Address of principal executive offices) (Zip Code)
604-922-0113
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Registrant's telephone number, including area code
42 - 2951 Panorama Drive, Coquitlam, BC, Canada V3E 2W3
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(Former name, address, and fiscal year, if changed since last report)
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), Yes [X] No [ ] and ( ) has been
subject to filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
Class Outstanding as of June 30, 2002
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Common Stock, $0.001 per share 10,535,000
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INDEX
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PAGE
NUMBER
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PART 1.
ITEM 1. Financial Statements.......................................... 3
Balance Sheet as at June 30, 2002
and September 30, 2001................................... 4
Statement of Operations
For the nine months ended June 30, 2002 and 2001
and for the period from October 8,1998 (Date of
Inception) to June 30, 2002.............................. 5
Statement of Cash Flows
For the nine months ended June 30, 2002 and 2001
and for the period from October 8,1998 (Date of
Inception) to June 30, 2002.............................. 6
Notes to Financial Statements................................. 7
ITEM 2. Plan of Operations............................................ 9
PART 11. Signatures.................................................... 10
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2
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PART 1 - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheet of Cigar King Corporation (a development stage
company) at June 30, 2002 and the statement of operations for the nine months
ended June 30, 2002 and 2001, and for the period from October 8, 1998 (date of
inception) to June 30, 2002 and the statement of cash flow for the nine months
ended June 30, 2002 and 2001 and for the period from October 8, 1998 (date of
inception) to June 30, 2002 have been prepared by the Company's management in
conformity with accounting principles generally accepted in the United States of
America. In the opinion of management, all adjustments considered necessary for
a fair presentation of the results of operations and financial position have
been included and all such adjustments are of a normal recurring nature.
Operating results for the nine months ended June 30, 2002, are not necessarily
indicative of the results that can be expected for the year ending September 30,
2002.
3
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CIGAR KING CORPORATION
(A Development Stage Company)
BALANCE SHEET
June 30, 2002 and September 30, 2001
(Unaudited - Prepared by Management)
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<Caption>
JUNE 30, September 30,
2002 2001
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ASSETS
CURRENT ASSETS
Bank $ 18 $ 2
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TOTAL CURRENT ASSETS $ 18 $ 2
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 13,460 $ 13,267
Accounts payable - related parties 1,341 1,206
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TOTAL CURRENT ASSETS 14,801 14,473
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value, 10,535,000 shares issued and outstanding 10,535 10,535
Capital in excess of par value 78,165 78,165
Deficit accumulated during the development stage (103,483) (99,871)
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Total Stockholders' Deficiency (14,783) (11,171)
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$ 18 $ 2
======== ========
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The accompanying notes are an integral part
of these unaudited financial statements.
4
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CIGAR KING CORPORATION
(A Development Stage Company)
STATEMENT OF OPERATIONS
For the nine months ended June 30, 2002 and 2001,
and for the period from October 8, 1998 (Date of Inception) to June 30, 2002
(Unaudited - Prepared by Management)
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<Caption>
FOR THE FOR THE
NINE NINE
MONTHS MONTHS FROM INCEPTION
ENDED ENDED TO
JUNE 30, JUNE 31, JUNE 30,
2002 2001 2002
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SALES $ - $ - $ -
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GENERAL AND ADMINISTRATIVE
EXPENSES:
Loss of license - - 50,000
Accounting and audit 1,900 1,900 19,350
Bank charges and interest 34 35 381
Consulting - - 9,650
Filing fees - 225 2,957
Legal - - 110
Office and administrative
expenses 14 208 3,432
Rent - - 4,500
Telephone - - 2,700
Transfer agent's fees 1,664 1,484 7,903
Travel - - 2,000
Website fees - - 500
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NET LOSS $ ( 3,612) $ (3,852) $( 103,483)
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NET LOSS PER COMMON SHARE
Basic $ - $ -
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AVERAGE OUTSTANDING SHARES
Basic 10,535,000 10,535,000
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The accompanying notes are an integral part
of these unaudited financial statements.
5
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CIGAR KING CORPORATION
(A Development Stage Company)
STATEMENT OF CASH FLOWS
For the nine months ended June 30, 2002 and 2001 and
for the period from October 8, 1998 (Date of
Inception) to June 30, 2002
(Unaudited - Prepared by Management)
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<Caption>
FOR THE FOR THE
NINE NINE
MONTHS MONTHS FROM INCEPTION
ENDED ENDED TO
JUNE 30, JUNE 30, JUNE 30,
2002 2001 2002
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CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (3,612) $ (3,852) $ (100,633)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Changes in current assets and liabilities:
Capital contributions - expenses - - 10,950
Accounts payable - related parties 135 - 1,341
Accounts payable 3,493 3,705 13,460
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Net cash (deficiency) from operations 16 (147) (77,732)
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CASH FLOWS FROM INVESTING
ACTIVITIES:
- - -
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock - - 77,750
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Net Increase (Decrease) in Cash 16 (147) 18
Cash at Beginning of Period 2 160 -
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CASH AT END OF PERIOD $ 18 $ 13 $ 18
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</Table>
The accompanying notes are an integral part
of these unaudited financial statements.
6
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CIGAR KING CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 2002
(Unaudited - Prepared by Management)
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on
October 8, 1998 with the authorized common shares of 200,000,000 shares at
$0.001 par value.
The Company was organized for the purpose of engaging in quality cigar
sales. The company has since abandoned the Cigar King concept and is
looking for another project. No operations have been started.
Since its inception the Company has completed Regulation D offerings of
10,535,000 of its common capital stock for cash.
The Company is in the development stage.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTING METHODS
The Company recognizes income and expenses based on the accrual method of
accounting.
DIVIDEND POLICY
The Company has not yet adopted a policy regarding payment of dividends.
INCOME TAXES
On June 30, 2002 the Company had a net operating loss carry forward of
$100,633. The tax benefit of $30,190 from the loss carry forward has been
fully offset by a valuation reserve because the use of the future tax
benefit is doubtful since the Company is in the development stage and has
not started operations. The net operating loss will expire in 2023.
EARNINGS (LOSS) PER SHARE
Earnings (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding.
7
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CIGAR KING CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 2002
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
CASH AND CASH EQUIVALENTS
The Company considers all highly liquid instruments purchased with a
maturity, at the time of purchase, of less than three months, to be cash
equivalents.
COMPREHENSIVE INCOME
The Company adopted Statement of Financial Accounting Standards No. 130.
The adoption of this standard had no impact on the total stockholder's
equity.
RECENT ACCOUNTING PRONOUNCEMENTS
The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact on its financial statements.
FINANCIAL INSTRUMENTS
The carrying amounts of financial instruments, including cash and accounts
payable are considered by management to be their estimated fair values.
ESTIMATES AND ASSUMPTIONS
Management uses estimates and assumptions in preparing financial statements
in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of the assets and
liabilities, the disclosure of contingent assets and liabilities, and the
reported revenues and expenses. Actual results could vary from the
estimates that were assumed in preparing these financial statements.
3. RELATED PARTY TRANSACTIONS
Related parties acquired 43% of the common stock issued.
4. GOING CONCERN
Continuation of the Company as a going concern is dependent upon obtaining
additional working capital and the management of the Company has developed
a strategy, which it believes will accomplish this objective through
additional equity funding, and long term financing, which will enable the
Company to operate for the coming year.
8
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ITEM 2. PLAN OF OPERATIONS
Under new management and Board of Directors, the Company is in process of
establishing a new concept for multi-unit quick service restaurant business in
the United States. The Board has proposed that the Company changes its name to
"Starberrys Corporation" at the Annual Meeting of Stockholders on August 7,
2002.
LIQUIDITY AND CAPITAL RESOURCES
The Company is in process of raising funds to bring the new concept to fruition.
RESULTS OF OPERATIONS
The Company has had no revenues from operations since its inception.
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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.
CIGAR KING CORPORATION
(Registrant)
AUGUST 13, 2002 /s/ "JOHN H. GOODWIN"
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Date John H Goodwin - Director
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