AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON ________, 2002
REGISTRATION NO. 333-90188
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
Amendment 2 to
FORM SB-2
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
---------------
PREMIUM FINANCIAL SERVICES & LEASING, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
(Formerly known as Business to Business, Inc.)
WYOMING 6159 86-0970133
------- ---- ----------
(STATE OR OTHER JURISDICTION OF (PRIMARY STANDARD INDUSTRIAL (IRS EMPLOYER
INCORPORATION OR ORGANIZATION) CLASSIFICATION NUMBER) IDENTIFICATION NUMBER)
9229 DELEGATES ROW, SUITE 130
INDIANAPOLIS, INDIANA 46240
(317) 575-1800
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING
AREA CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
---------------
MICHAEL GOOCH
PREMIUM FINANCIAL SERVICES & LEASING, INC.
9229 DELEGATES ROW, SUITE 130
INDIANAPOLIS, INDIANA 46240
(317) 575-1800
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER,
INCLUDING AREA CODE, OF AGENT FOR SERVICE OF SERVICE)
---------------
WITH COPIES TO:
KEVIN M. SHERLOCK, ESQ.
2609 E. BROADWAY BLVD.
TUCSON, ARIZONA 85716-5305
(520) 906-3567
---------------
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE OF THE SECURITIES TO PUBLIC:
From time to time after the Registration Statement becomes effective as
determined by market conditions and the needs of the selling shareholders. If
any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. /X/
---------------
CALCULATION OF REGISTRATION FEE
- ------------------------------------- ------------------ --------------------- ---------------------------- ------------------
TITLE OF EACH CLASS OF SECURITY TO AMOUNT TO BE PROPOSED MAXIMUM PROPOSED MAXIMUM AGGREGATE AMOUNT OF
BE REGISTERED REGISTERED OFFERING PRICE OFFERING PRICE REGISTRATION FEE
- ------------------------------------- ------------------ --------------------- ---------------------------- ------------------
- ------------------------------------- ------------------ --------------------- ---------------------------- ------------------
Common Stock, $.001 par value 100,000 shares $.50 $50,000 $100
- ------------------------------------- ------------------ --------------------- ---------------------------- ------------------
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES
AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE
A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT
SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR UNTIL THE
REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION,
ACTING PURSUANT TO SAID SECTION 8(A), MAY DETERMINE.
PREMIUM FINANCIAL SERVICES & LEASING, INC.
100,000 SHARES OF COMMON STOCK
This prospectus is part of a registration statement that covers 100,000
shares of our common stock currently owned by the selling shareholders (the
"selling shareholders"). The shares of the selling shareholders were acquired as
follows: (i) 200,000 shares issued to our original shareholders and (ii) 50,000
shares issued to the shareholder of Premium Financial, an Indiana company, in
connection with our acquisition of Premium Financial (Indiana). These shares may
be offered or sold from time to time by the selling shareholders. The selling
shareholders will sell at a price of $0.50 per share until the shares are quoted
on the OTC Bulletin Board and thereafter, at prevailing market prices or
privately negotiated prices.
We will not receive any proceeds from the sale of shares by the selling
shareholders.
Premium Financial is not a bank and our securities, including the
shares being registered for sale under this registration statement are not
insured against loss by any governmental or private agency.
Our common stock is not currently listed or quoted on any quotation
medium. There can be no assurance that our common stock will ever be quoted on
any quotation medium or that any trading market for our common stock will ever
develop.
Unless the context otherwise requires "we," "our," "us," or the
"Company," refers to Premium Financial Services & Leasing, Inc., a Wyoming
corporation. Our principal executive offices are located at 9229 Delegates Row,
Suite 130, Indianapolis, Indiana 46240, and our telephone number is (317)
575-1800
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved of these securities or passed upon the
adequacy or accuracy of the prospectus. Any representation to the contrary is a
criminal offense.
SEE "RISK FACTORS" BEGINNING ON PAGE 6 FOR A DISCUSSION OF ALL
MATERIAL RISKS RELATED TO AN INVESTMENT IN OUR COMMON STOCK.
The date of this prospectus is ____________, 2002
TABLE OF CONTENTS
PAGE
PROSPECTUS SUMMARY...............................................................................................1
RISK FACTORS AND INVESTMENT CONSIDERATIONS.......................................................................4
USE OF PROCEEDS..................................................................................................6
DETERMINATION OF OFFERING PRICE..................................................................................6
SELLING SHAREHOLDERS.............................................................................................6
PLAN OF DISTRIBUTION.............................................................................................8
LEGAL PROCEEDINGS................................................................................................9
MANAGEMENT......................................................................................................11
DESCRIPTION OF SECURITIES.......................................................................................13
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS..................................................................13
BUSINESS .......................................................................................................14
SELECTED COMBINED FINANCIAL DATA................................................................................20
MANAGEMENT'S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATIONS..................................................21
DESCRIPTION OF PROPERTY.........................................................................................24
MARKET FOR THE SHARES AND RELATED STOCKHOLDER MATTERS...........................................................24
LEGAL MATTERS...................................................................................................25
EXPERTS.........................................................................................................25
i
PROSPECTUS SUMMARY
THE FOLLOWING SUMMARY IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE
MORE DETAILED INFORMATION AND FINANCIAL STATEMENTS APPEARING ELSEWHERE IN AND
INCORPORATED BY REFERENCE INTO THIS PROSPECTUS. THE SHARES OFFERED HEREBY ARE
SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK. EACH PROSPECTIVE INVESTOR SHOULD
CAREFULLY REVIEW THE ENTIRE PROSPECTUS, THE FINANCIAL STATEMENTS AND ALL
EXHIBITS AND DOCUMENTS REFERRED TO THEREIN. SEE "RISK FACTORS."
PREMIUM FINANCIAL
We were organized under the laws of the state of Wyoming on July 11,
1997 under the name Business to Business, Inc. On April 8, 2002 we entered into
a acquisition agreement with Premium Financial Services & Leasing, Inc. of
Indiana to acquire Premium Financial (Indiana) and its assets and liabilities.
Our shareholders approved the acquisition and we completed the acquisition on
May 21, 2002. Premium Financial (Indiana) was originally founded in September
1995 in Indiana. As a result of the acquisition, we issued 4,000,0000 shares of
our common stock to the shareholder of Premium Financial (Indiana). On May 31,
2002 we filed articles of merger with the State of Wyoming to merge Premium
Financial (Indiana) with and into Business to Business, and to change our name
to Premium Financial Services & Leasing, Inc. pursuant to the closing of the
acquisition of Premium Financial (Indiana). The articles of merger and name
change were approved by the State of Wyoming on August 8, 2002. Premium
Financial (Wyoming) has no subsidiaries.
Our common stock is not listed on any recognized exchange or quoted on
any quotation medium. There are no plans, proposals, arrangements or
understandings with any persons concerning the development of a trading market
in our common stock.
Our principal executive offices are located at 9229 Delegates Row,
Suite 130, Indianapolis, Indiana 46240, and our telephone number is (317)
575-1800.
SUMMARY OF OUR BUSINESS
Prior to the acquisition we had no assets or business operations.
Premium Financial is a commercial equipment leasing company that acts primarily
as a broker for the leasing of business equipment, preparing and sending lease
applications to banks and financing firms, who will then fund or buy the lease
and pay Premium Financial a commission. While Premium Financial will lease most
all types of equipment for almost all types of businesses, its focus is on
offering medium sized and small ticket leasing programs to other lease brokers,
vendors and equipment end-users, particularly start-up companies.
Premium Financial is not a bank and our securities, including the
shares being registered for sale under this registration statement are not
insured against loss by any governmental or private agency. Summary of the
Offering
-1-
SECURITIES OFFERED........................................ 100,000 shares of common stock, $.001 par value.
CAPITAL STOCK OUTSTANDING
Common Stock outstanding prior to and after
Offering............................................. 5,000,000 shares (1)
USE OF PROCEEDS........................................... We will not receive any proceeds from the sale of
the shares by the selling shareholders. See "Use of
Proceeds."
PLAN OF DISTRIBUTION...................................... The shares offered hereby may be sold from time to
time by the selling shareholders at a rate of $0.50
per share until such tome as the shares are quoted
on the OTC Bulletin Board or any other public
market. These shares may then be offered from time
to time in one or more transactions on the OTC
Bulletin Board or any public market on which the our
common stock trades at market prices prevailing at
the time of the sale, at prices related to such
prevailing market prices, or at negotiated prices.
We are paying all of the expenses in connection with the
preparation of this prospectus and the related Registration
Statement, estimated at $32,600. See "selling shareholders"
and "Plan of Distribution."
RISK FACTORS.............................................. An investment in our common stock involves a high
degree of risk. SEE "RISK FACTORS AND INVESTMENT
CONSIDERATIONS."
- --------------------
(1) Indicates shares of common stock outstanding as of the date of this
prospectus.
-2-
SUMMARY FINANCIAL DATA
The following table summarizes certain of our selected financial data
and unaudited data is qualified in its entirety by the more detailed financial
statements contained elsewhere in this prospectus. The summary financial
information contained in the following table is derived from and should be read
in conjunction with our audited financial statements the notes thereto appearing
elsewhere in this prospectus.
Premium Financial Services & Leasing, Inc.
(in thousands, except per share date)
For the Year Ended For the Nine Months Ended
December 31, September 30,
-------------------------------------- -------------------------------------
2000 2001 2001 2002
----------------- ----------------- ---------------- -----------------
Statement of (Unaudited)
Operation Data: Actual Actual Actual Actual
----------------- ----------------- ---------------- -----------------
Net Sales $383 $428 $342 $204
Operating Expense 351 358 319 328
Operating Income (loss) 32 70 22 (125)
Other Income (expense) (1) (1) - (15)
Net Income Attributable to
Common Stockholders 31 69 22 (140)
Basic & Diluted
Income per Share $ 0.01 $ 0.02 $ 0.01 $ (0.03)
Weighted Average Number
of Shares Outstanding 4,000,000 4,000,000 4,000,000 4,481,618
(In thousands)
Nine Months Ended
September 30, 2002
(Unaudited)
Balance Sheet Data Actual
- ------------------------------------- ----------------------------
Working Capital (117)
Total Assets 25
Short-term Debt 124
Long-term Debt 86
Total Stockholders' Equity (185)
-3-
RISK FACTORS AND INVESTMENT CONSIDERATIONS
INVESTMENT IN OUR COMMON STOCK INVOLVES A NUMBER OF RISKS. THE
FOLLOWING MATERIAL RISK FACTORS SHOULD BE CAREFULLY CONSIDERED BY ANYONE
PURCHASING SHARES OF OUR COMMON STOCK. ANY OF THE FOLLOWING RISKS WOULD
ADVERSELY EFFECT OUR BUSINESS, FINANCIAL CONDITION AND RESULTS OF OPERATION.
RISKS OF PREMIUM FINANCIAL
PREMIUM FINANCIAL MUST ACCURATELY ASSES A LESSEE'S CREDIT WORTHINESS OR PREMIUM
FINANCIAL WILL INCREASE ITS EXPENSES.
The primary risk associated with leasing and financing is making appropriate
financing decisions regarding the evaluation of a lessee's credit worthiness.
Prior to funding the purchase of equipment for lease, Premium Financial must
evaluate the likelihood that the lessee will make its lease payments. Failure by
Premium Financial to correctly assess credit worthiness will result in increase
costs associated with collections.
PREMIUM FINANCIAL MUST RETAIN KEY EMPLOYEES OTHERWISE PREMIUM FINANCIAL WILL
LIKELY LOSE BUSINESS.
The future success of Premium Financial Services & Leasing will depend in part
on its ability to retain key employees and hire new employees. Premium financial
relies on personal relationships and contacts to generate and to sell leases,
and the success of the company depends on the continued productivity of its key
employees. If Premium Financial loses key employees, it would likely loss
personal relationships and contacts resulting in a loss of business.
MANAGEMENT WILL CONTROL 80% OF OUR COMMON STOCK, AND THIS PERSON MAY HAVE
CONFLICTS OF INTEREST WITH MINORITY SHAREHOLDERS.
Michael Gooch will own 80% of the outstanding common stock following the
combination with Business to Business. Accordingly, Mr. Gooch is able to exert
considerable influence over any stockholder vote, including any vote on the
election or removal of directors and any merger, consolidation or sale of all or
substantially all of our assets, and control our management and affairs. In
voting his common shares, Mr. Gooch may have interests that are not the same as
the minority shareholders. Such control could also discourage others from
initiating potential merger, takeover or other change in control transactions.
THERE IS NO MARKET FOR OUR SHARES AND YOU MAY NOT BE ABLE TO SELL THEM
There has been no trading market for our common stock. Although we
intend to apply to list our common stock on the OTC Bulletin Board, there can be
no assurance that our application will be granted and there can be no assurance
that an active market will develop for our common stock. Therefore, it may be
difficult to sell your shares if you should desire or need to sell.
-4-
If we do become listed on the OTC Bulletin Board, we do not know how
our common stock will trade. The market price of our common stock may fluctuate
significantly due to a number of factors, some of which may be beyond our
control, including:
o the potential absence of securities analysts covering us and
distributing research and recommendations about us;
o the liquidity of our common stock will be low because only 200,000
shares will be in the hands of non-affiliates;
o changes in earnings estimates by securities analysts or our ability to
meet those estimates;
o the operating results and stock price performance of other comparable
companies;
o overall stock market fluctuations; and
o economic conditions generally and in the lease financing industry in
particular. Any of these factors could have a significant and adverse
impact on the market price of our common stock. In addition, the stock
market in general has experienced extreme volatility and rapid decline
that has often been unrelated or disproportionate to the operating
performance of particular companies. These broad market fluctuations
may adversely affect the trading price of our common stock, regardless
of our actual operating performance.
OUR COMMON STOCK WILL LIKELY BE CONSIDERED A PENNY STOCK, WHOSE PURCHASE CAN BE
RISKY.
In the event that a public trading market develops for our shares, they
may be classified as a "penny stock" depending upon their market price and the
manner in which they are traded. Section 3(a)(51) of the Securities Exchange Act
of 1934 defines a "penny stock," for purposes relevant to us, as any equity
security that has a market price of less than $5.00 per share and is not
admitted for quotation and does not trade on the Nasdaq Stock Market or on a
national securities exchange. For any transaction involving a penny stock,
unless exempt, the rules require delivery by the broker of a document to
investors stating the risks of investment in penny stocks, the possible lack of
liquidity, commissions to be paid, current quotations and investors' rights and
remedies, a special suitability inquiry, regular reporting to the investor and
other requirements. Prices for penny stocks are often not available and
investors are often unable to sell such stock. Thus an investor may lose his
entire investment in a penny stock and consequently should be cautious of any
purchase of penny stocks.
LACK OF DIVIDENDS.
Holders of common stock are entitled to receive such dividends as may
be declared by our board of directors. To date, we have paid no cash dividends
on our shares of common stock and we do not expect to pay cash dividends on our
common stock in the near term. We intend to retain future earnings, if any, to
provide funds for operations of our business. Investors who anticipate the need
for dividends from investments should refrain from purchasing the common stock
offered by this prospectus.
-5-
USE OF PROCEEDS
We will not receive any proceeds from this offering. All proceeds from
the sale of the shares sold under this prospectus will go to the selling
shareholders.
DETERMINATION OF OFFERING PRICE
This prospectus may be used from time to time by the selling
shareholders who offer the common stock registered under the Registration
Statement of which this prospectus is a part. The common stock offered by the
selling shareholders will be offered from time to time at a fixed rate of $0.50
per share until such time as the common stock is listed for quotation, and then
from time to time in transactions (which may include block transactions) on the
OTC Bulletin Board or other public market at the then prevailing prices.
SELLING SHAREHOLDERS
The following table provides certain information with respect to the
common stock owned by the selling shareholders who are entitled to use this
prospectus. The information in the table is as of the date of this prospectus.
Except as described below, no Selling Shareholder has had a material
relationship with us within the past three years other than as a result of the
ownership of common stock.
PERCENT OWNED PERCENT OWNED
SHARES AVAILABLE BEFORE AFTER
NAME AND ADDRESS OF SELLING SHARES FOR SALE UNDER COMPLETION OF COMPLETION OF
SHAREHOLDER OWNED(1) THIS PROSPECTUS THE OFFERING (1) THE OFFERING (1)
- ------------------------------------
Michael Gooch (2) 4,000,000 50,000 80% 79%
9229 Delegates Row
Indianapolis, IN 46240
David Adams 2,000 2,000 * 0
6556 E. Calle Herculo
Tucson, AZ 85711
Frank Anjakos 2,000 2,000 * 0
1971 N. Lindenwood Dr.
Tucson, AZ 85712
Gerald Bowlin 2,000 2,000 * 0
1 East River Road, #720
Tucson, AZ 85704
Robert C. Daly 2,000 2,000 * 0
6250 Kelly Lynn Ct.
Waxhaw, NC 28173
Brian Delfs 2,000 2,000 * 0
5162 E. Citrus St.
Tucson, AZ 85712
-6-
James Delfs 2,000 2,000 * 0
3730 N. Tucson Blvd.
Tucson, AZ 85716
Eric Evans 2,000 2,000 * 0
305 N. Hidalgo
Alhambra, CA 91801
Andrew Gerrish 2,000 2,000 * 0
2231 N. Norris
Tucson, AZ 85719
Audra Guthery 2,000 2,000 * 0
4810 E. Seneca
Tucson, Az 85712
David Hack 2,000 2,000 * 0
232 W. Smoot Dr.
Tucson, AZ 85705
Matthew Hodges 2,000 2,000 * 0
1529 N. Desmond
Tucson, AZ 85712
Scott Krause 2,000 2,000 * 0
9160 E. Walnut Tree Dr.
Tucson, AZ 85749
Michael McKendrick 2,000 2,000 * 0
3015 N. Wentworth Rd.
Tucson, AZ 85749
John R. Ogden 2,000 2,000 * 0
5765 N. Paseo Otono
Tucson, AZ 85715
Ron Olson 2,000 2,000 * 0
9969 E. Paseo San Ardo
Tucson, AZ 85747
Mark Polifka 2,000 2,000 * 0
1132 Mohawk
Topanga, CA 90290
Michael Rhyner 2,000 2,000 * 0
9737 E. Mount Pleasant
Tucson, AZ 85749
Monica Romero 2,000 2,000 * 0
2528 W. Criswell Ct.
Tucson, AZ 85745
Melissa Saucedo 2,000 2,000 * 0
7019 W. Avondale
Tucson, AZ 85743
Howard Smith 2,000 2,000 * 0
4050 N. Hiddencove Pl.
Tucson, AZ 85749
John Sylvester 2,000 2,000 * 0
10222 E. Sylvester Rd.
Hereford, AZ 85615
-7-
Roger Tamietti 2,000 2,000 * 0
HC 70 Box 4254
Sahuarita, AZ 85629
Raymond Willey 2,000 2,000 * 0
1192 Joseph Ct.
Ripton, CA 95366
Jennifer Worden 2,000 2,000 * 0
9055 E. Catlina Hwy, No. 5206
Tucson, AZ 85749
Roger Wright 2,000 2,000 * 0
5294 W. Peridot St
Tucson, AZ 85741
- ----------------------
* These shareholders each hold 0.0004%.
(1) Percentages and share ownership numbers are based on the 5,000,000 total
shares outstanding as of December 1, 2002. Excludes additional shares of
Common Stock, which the Selling Shareholder may acquire from time to time
subsequent to the date of this prospectus.
(2) President and director of Premium Financial.
PLAN OF DISTRIBUTION
We are registering the shares covered by this prospectus for the
selling shareholders. As used in this prospectus, selling shareholders includes
the pledgees, donees, transferees or others who may later hold the selling
shareholders' interests. We will pay the costs and fees of registering the
shares, but the selling shareholders will pay any brokerage commissions,
discounts or other expenses relating to the sale of the shares.
The selling shareholders may sell the shares at the fixed rate of $0.50
per share until such time as the common stock is listed for quotation on a
public market, and thereafter in the over-the-counter market or otherwise, at
market prices prevailing at the time of sale, at prices related to the
prevailing market prices, or at negotiated prices. In addition, the selling
shareholders may sell some or all of their shares through:
o a block trade in which a broker-dealer may resell a portion of the
block, in order to facilitate the transaction;
o purchases by a broker-dealer, and resale by the broker-dealer for its
account; or
o ordinary brokerage transactions and transactions in which a broker
solicits purchasers.
-8-
When selling the shares, the selling shareholders, may enter into
hedging transactions. For example, the selling shareholders may:
o enter into transactions involving short sales of the shares by
broker-dealers;
o sell shares short themselves and redeliver such shares to close out
their short positions;
o enter into option or other types of transactions that require the
selling shareholder to deliver shares to a broker-dealer, who will
then resell or transfer the shares under this prospectus; or
o loan or pledge the common shares to a broker-dealer, who may sell the
loaned shares or, in the event of default, sell the pledged shares.
The selling shareholders may negotiate and pay broker-dealers
commissions, discounts or concessions for their services. Broker-dealers engaged
by the selling shareholders may allow other broker-dealers to participate in
resales. However, the selling shareholders and any broker-dealers involved in
the sale or resale of the shares may qualify as "underwriters" within the
meaning of the Section 2(a)(11) of the Securities Act. In addition, the
broker-dealers' commissions, discounts or concession may qualify as
underwriters' compensation under the Securities Act. If the selling shareholders
qualify as "underwriters," they will be subject to the prospectus delivery
requirements of Section 5(b)(2) of the Securities Act. We have informed the
selling shareholders that the anti-manipulative provisions of Regulation M
promulgated under the Securities Exchange Act of 1934 may apply to their sales
in the market.
In addition to selling their shares under this prospectus, the selling
shareholders may:
o agree to indemnify any broker-dealer or agent against certain
liabilities related to the selling of the common shares, including
liabilities arising under the Securities Act;
o transfer their shares in other ways not involving market makers or
established trading markets, including directly by gift, distribution,
or other transfer; or
o sell their shares under Rule 144 of the Securities Act rather than
under this prospectus, if the transaction meets the requirements of
Rule 144.
-9-
Restricted shares
Our officer and director owns an aggregate of 4,000,000 shares of our common
stock. 50,000 shares of common stock currently held by our officer and director
are registered hereunder. The common stock held by our officer and director are
"restricted securities" as that term is defined in Rule 144 promulgated under
the Securities Act, and may be sold only in compliance with Rule 144, pursuant
to registration under the Securities Act or pursuant to an exemption from such
registration. Generally, under Rule 144, each person holding restricted
securities for a period of one year may, every three months, sell in ordinary
brokerage transactions or to market makers an amount of shares up to (and
including) the greater of 1% of a company's then outstanding common stock or the
average weekly trading volume for the four weeks prior to the proposed sale.
None of such restricted securities were eligible for sale under Rule 144 as of
December 1, 2002.
LEGAL PROCEEDINGS
Premium Financial is not currently involved in any litigation. Premium
Financial was involved in S & S EMBROIDERY, ETC VS. PREMIUM FINANCIAL SERVICES,
Case Number 01-001334, Superior Court of the State of California, County of Los
Angles, Los Cerritos Judicial District, which has been concluded with a judgment
in favor of Premium Financial.
-10-
MANAGEMENT
EXECUTIVE OFFICERS AND DIRECTORS
The following table sets forth the names, positions and ages of the
individuals who serve as our directors and executive officers. All directors are
elected at each annual meeting and serve for one year and until their successors
are elected and qualify. Officers are elected by the Board of Directors and
their terms of office are at the discretion of the Board.
NAME OF DIRECTOR/OFFICER AGE POSITION(S) WITH COMPANY
Michael Gooch 35 President, CEO, Director
Bret Pafford 42 Vice President, Director
Glen Gangi 48 Chief Operating Officer, Director
Dennis Kluzke 39 Chief Financial Officer, Director
Kent Abernathy 44 Director
MICHAEL GOOCH - CEO/FOUNDER - PRESIDENT AND DIRECTOR
Mr. Gooch founded and has been continuously employed by Premium Financial
Services & Leasing, Inc. (Indiana) as President and CEO since September 1995,
and is continuing as President and CEO of Premium Financial (Wyoming) since the
merger. Prior to the founding of Premium Financial (Indiana), Mr. Gooch was
involved at various levels within the leasing services industry for more than a
decade. Premium financial is currently delivering services to businesses
nationwide. Mr. Gooch resides with his family in Sheridan, Indiana.
BRET PAFFORD - VICE PRESIDENT
Mr. Pafford has been with Premium Financial Services & Leasing as Vice President
since December of 2000. He has been responsible for business development at
Premium Financial. He has conducted due diligence on other companies in regard
to acquisitions and mergers for Premium Financial. From 1997 to 2000, Mr.
Pafford was with Comp USA and was a district sales manager in charge of business
development. Prior to that, Mr. Pafford was a sales manager for Circuit City
from 1995 to 1997.
GLEN GANGI - DIRECTOR - CHIEF OPERATING OFFICER
Glen Gangi will focus on the everyday operations of the business. Glen has over
20 years experience in the commercial leasing industry. Glen currently operates
a self-held portfolio and is president of CFC Leasing Company in Indianapolis,
IN since 1997. He currently funds transactions only in the Midwest. CFC has 98
leases that are being managed by Glen. Mr. Gangi handles all aspects of the
funding process from application, credit review and collections. Glen will be
assisting Premium Financial in credit decisions as well an managing Premium
Financial's portfolio.
-11-
DENNIS KLUTZKE - DIRECTOR
Dennis Klutzke has over 16 years of business management and project management
experience. From 2000 to present Dennis has been a senior project manager for
Workscape, Inc. Workscape is a software development company specializing in
human management software. At Workscape, Dennis recently oversaw the completion
of the largest Internet Portal deployment by a corporation. He was directly
responsible for the infrastructure build out as well as the software
customizations required by General Motors Corporation. From 1992 to 2000, Dennis
managed statewide operations for National City Bank of Indiana where he held the
officer-level position of branch operations administrator.
Mr. Klutzke earned a bachelors degree in Business from Indian University in
1992. In 1997, Dennis earned a double MBA degree in Finance and Management
Information Systems from Indiana University while working for National City
Bank.
KENT ABERNATHY - DIRECTOR
Mr. Abernathy is currently the sole Principal at Eagle Advisors, a business
consulting firm he founded in 2001. Eagle Advisors consults in the areas of
business development and securing capital finance. Prior to founding Eagle
Advisors, he spent over 15 years in the commercial banking industry. He was a
vice president at Bank One from 1998 to 2001, a vice president at National City
Bank from 1992 to 1998, an assistant vice president at Apple Bank for Savings
from 1989 to 1992. Mr. Abernathy joined Premium Financial in June, 2002.
PRINCIPAL STOCKHOLDERS AND STOCKHOLDINGS OF MANAGEMENT
NAME AND ADDRESS OF SHARES BENEFICIALLY PERCENT OF
BENEFICIAL OWNER) OWNED AFTER ACQUISITION COMMON STOCK (2)
----------------- ----------------------- ----------------
Michael Gooch (1) 4,000,000 80%
Daniel L. Hodges
1815 N. Placita Buendia
Tucson, AZ 85749 800,000 16%
All Officers and Directors as a group 4,000,000 80%
(1) The address of Mr. Gooch is 9229 Delegates Row, Suite 130, Indianapolis, IN
46240.
(2) Applicable ownership percentages were based on 5,000,000 shares issued and
outstanding as of December 1, 2002.
-12-
DESCRIPTION OF SECURITIES
COMMON STOCK
We are authorized to issue 100,000,000 shares of Common Stock, $.001
par value per share, of which 5,000,000 shares are issued and outstanding at the
date of this prospectus.
Holders of our common stock are entitled to one vote for each share
owned for all matters to be voted on by the shareholders, including the election
of directors. Holders of common stock are entitled to receive such dividends as
may be declared from time to time by our board of directors out of funds legally
available therefore and, in the event of liquidation, dissolution or winding up,
to share ratably in all assets remaining after payment of liabilities. The
holders of common stock have no preemptive or conversion rights. The holders of
common stock are not subject to further calls or assessments. There are no
redemption or sinking fund provisions applicable to the common stock.
DIVIDEND POLICY
Holders of common stock are entitled to receive such dividends as may
be declared by our board of directors. We have not declared or paid cash
dividends on our common stock and we do not anticipate that we will pay such
dividends in the foreseeable future. Rather, we intend to apply any earnings to
the expansion and development of our business. Any payment of future dividends
on our common stock and the amount of any dividends will be determined by our
board of directors and will depend, among other factors, upon our earnings,
financial condition and cash requirements, and any other factors our board of
directors may deem relevant.
TRANSFER AGENT
Our transfer agent is Holiday Stock Transfer located at 2939 N. 67th
Place, Scottsdale, AZ 85251. All inquiries may be made at (480) 481-3940.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
On December 4, 2001, Mr. Gooch, the president and director of Premium
Financial, provided Premium Financial with a cash loan in the amount of $75,000,
and received a promissory note from Premium financial to pay him $90,000 on June
4, 2002. Mr. Gooch agreed to an extension of the due date of the loan until
December 4, 2002. If the loan had been paid on December 4, 2002, the note would
have carried an interest rate of 20%. Mr. Gooch has agreed to a further
extension of the due date of the loan until March 4, 2003. Additionally, the
terms of the note provide that Mr. Gooch is to receive 75,000 common shares of
Premium Financial in the event that Premium Financial's stock becomes publicly
traded.
-13-
BUSINESS
We were incorporated in Wyoming 1997 under the name Business to Business, Inc.
Premium Financial (Indiana) was originally operated as a sole proprietorship
from 1995, and then incorporated under the laws of the state of Indiana on
February 8, 2000. On April 8, 2002 we entered into an acquisition agreement with
Premium financial Services & Leasing, Inc. of Indiana to acquire Premium
Financial (Indiana) and its assets and liabilities. Our shareholders approved
the acquisition and we completed the acquisition on May 21, 2002. Premium
Financial (Indiana) was originally founded in September 1995 in Indiana as a
sole proprietorship and was then incorporated under the laws of the state of
Indiana on February 8, 2000. As a result of the acquisition, we issued 4,000,000
shares of our common stock to the shareholder of Premium Financial (Indiana). On
May 31, 2002 we filed articles of merger with the State of Wyoming to merger
Premium Financial (Indiana) with and into Business to Business and to change our
name to Premium Financial Services & Leasing, Inc. pursuant to the closing of
the acquisition of Premium Financial (Indiana). The articles of merger and name
change were approved by the State of Wyoming on August 8, 2002. Premium
Financial (Wyoming) has no subsidiaries.
After the acquisition, we are a leasing and finance company that is focused on
offering medium sized and small ticket leasing programs to brokers, vendors and
end users. Premium Financial finances the purchase of equipment for end users of
such equipment, and enters into a leasing agreement with the equipment end
users. Premium Financial then either sells the lease outright to lease brokers
of banking/financial institutions or retains the lease in its portfolio. On a
lease transaction that is brokered by Premium Financial to banks or financing
companies, Premium is paid a commission for selling the lease to the bank. In
general, an average commission to a broker for a lease ranges from 5% to 15%.
All banking/funding institutions have their own commission structures and pay
accordingly. Premium Financial's average commission that we were paid is
approximately 8.6% during the first nine months of 2002. This figure is based on
the total fundings for leases we completed and the gross dollar amount of
commission that we were paid. The company's leasing activities allow business
the ability to acquire the capital needed to facilitate equipment acquisition,
whether the equipment is new or used. We solicit our services to leasing brokers
and commercial equipment manufacturers.
Founded in 1995 as a small 2 man lease brokerage company, Premium Financial has
grown to the point that it is now a fully staffed lease broker, able to prepare
all documents for all leases in its office thereby allowing Premium Financial to
control the processing of the lease and to act as lessor on the lease.
WEBSITE
We maintain a website located at: WWW.PREMIUMFINANCIAL.COM.
INDUSTRY AND MARKET OVERVIEW
According to the Equipment Leasing Association's 2001 Survey of Industrial
Activity, the $280 billion equipment leasing and finance industry continues to
show steady growth based on a 6.4 percent increase in volume of new business in
2000. Bank lessors experienced the largest growth in 2000, with a 39 percent
increase in new business volume, independents showed a 37 percent increase.
Captives, leasing companies having at least 50% of lease portfolio or volume
that consists of products produced by parent and/or subsidiaries, reported a 24
percent growth rate. Equipment leasing has demonstratively been an effective way
for small, medium sized and start-up companies to acquire the capital goods they
require. Leasing is prevalent and advantageous for the following reasons:
-14-
FLEXIBLE - Companies have different needs, different cash flow patterns and
sometimes irregular streams of income. COST-EFFECTIVE - According to the Juan
Hovey article entitled "The Most For the Leased" from the Emerging Business
periodical, sophisticated business managers have learned that the primary
benefits of higher productivity and profit come from the use of equipment, not
owning it.
TAX ADVANTAGES - Rather than deal with depreciation schedules and Alternative
Minimum Tax (AMT) problems, a lessee makes lease payments and deducts it as a
business expense. PURCHASING POWER - Leasing puts equipment to work immediately,
at minimal initial cost. Monthly lease payments represent a small portion of the
cost of equipment, allowing one the ability to obtain more equipment for their
business.
OPERATING CAPITAL - Leasing keeps operating lines of credit open, cash remains
free and costly down payments are avoided.
The disadvantages of leasing are that a lessee will pay a high interest rate; a
lessee that is unable to make payments is in danger of having the leased
equipment repossessed; and it is possible that the leased equipment can become
outdated or obsolete before the end of the term of the lease.
PLAN OF OPERATION
Premium Financial is a commercial equipment leasing company that acts as a
broker for leases of business equipment. Premium Financial prepares lease
applications, then sends those lease applications to banks and financing firms
who, upon funding the lease, then pay Premium Financial a commission. Premium
Financial will lease most all types of equipment for almost all types of
businesses. Premium Financial will work with both the new business start-up as
well as the established business, whether they are looking to lease new or used
equipment or whether they are replacing an old piece or leasing another piece of
equipment. By acting as a broker we sell 100% of our leases to funding
institutions and are paid a commission for our services. Commission is based on
the dollar amount of the lease and the commission is paid as soon as the lease
is funded by the source. In general, an average commission to a broker for a
lease ranges from 5% to 15%. All banking/funding institutions have their own
commission structures and pay accordingly. Premium Financial's average
commission that we were paid is approximately 8.6% during the first nine months
of 2002. This figure is based on the total fundings for leases we completed and
the gross dollar amount of commission that we were paid.
Premium Financial Services & Leasing's primary objective is to provide banking
institutions with exclusively tailored leasing clearinghouse services. To date,
it has been able to facilitate lease-financing deals up to $10,000,000.
Moreover, it has the ability to fund lease initiatives up to $75,000 without the
need for financials or tax return documentation from the lessee. Premium
Financial operates only from its offices in the State of Indiana.
Premium Financial's specific strategy is to:
o Increase marketing efforts in the areas of direct mail campaigns, trade
show arenas and local and national advertising.
o Target small and medium sized businesses as well as start-up's.
o Provide leasing and financing products for all types of equipment.
o Establish the top product development team in the business.
o Channel marketing investments towards awareness.
o Create innovative and interactive financial service processes.
-15-
GROWTH STRATEGY
Premium Financial Services & Leasing's keys to success in the lease financing
industry underline it's growth strategy, they are:
o Focused, consistent management, particularly of internal systems and
processes.
o An unwavering concern for reputation - for quality, integrity, reliability
and consistency.
o The aggressive pursuit of up to date information on the leasing industry as
a key competitive advantage.
o An unequivocal commitment to discipline in all aspects of leadership and
management.
VENDOR RELATIONSHIPS
Premium Financial will pursue growth in its number and quality of vendor
relationships. Manufacturers, suppliers and resellers of equipment who do not
have internal financing departments work with lease brokers to facilitate the
sale of their equipment. Such vendors send us lease applications of their
clients who are looking for financing. Premium Financial then assists in
locating financing and if successful, receives a commission. This allows those
vendors to focus on sales and to utilize the services of lease brokers for
financing. More vendor relationships means more financings. Vendor relationships
are the key to high sales volumes. Premium Financial is committed to assist
vendors in simplifying the leasing process and getting valued customers funded
quickly.
TARGET MARKET - START-UP MARKETS
Premium Financial has identified the start-up community as one that presents the
business with a source of growth. Equipment leasing is a critical component for
the financial success of a start-up. Equipment leasing is a strategic option for
start-ups, and is represented as such by the fact that many start-ups identify
and utilize leasing as an essential component of their financial success. While
most leasing companies shy away from business start-ups. Premium Financial has
designated several programs for young businesses.
Over the past 5 years, Premium Financial has financed over 85% of its applicant
transactions with the start-up market. Most business start-ups have to monitor
the value of their assets. As these businesses look to build and develop overall
value they are conscious of not retaining assets that quickly diminish in their
worth. By facilitation lease transactions for this market, Premium Financial
increases new business cash flows and provides tax benefits, balance sheet
management and in most cases assists new businesses in avoiding technological
obsolescence.
Premium Financial's leasing arrangements are advantageous to small businesses as
it allows them to re-invest capital into marketing, research, development and
other areas of expansion. Premium Financial's programs provide the opportunity
for a lower recorded capital burn rate. As these new businesses grow, so does
their relationship with Premium Financial . Historically, Premium Financial has
seen more and more leasing dollars flowing into the organization as its clients
grow.
-16-
Premium Financial has minimized the risks associated with business start-ups by
developing a relationship with each client. The more Premium Financial knows
about a business, the better equipped the company is to assess the business
potential and any risk factors involved.
START-UP LEASE FINANCE PROGRAMS
Premium Financial has designed seven programs to assist the new business owner
in the financing of equipment.
1. Application Program (up to $20K) - client fills out a credit application and
consents to a personal/business credit check, `no time in business' requirement.
2. Limited Financial Program (up to $30K) - same as Application Program plus
previous year's tax return and a personal financial statement.
3. Complete Financial Program (up to $75K) - client is required to provide
interim financial statements, a business plan, resume, two years tax returns and
a pro-forma financial statement for the business.
4. Two Payments Program - this program assists those with more challenging
credit histories to obtain one of the above three programs. In this program for
a 36 , 48 or 60 month lease, the lessee deposits two payments in advance, and
then has the remaining payments due.
5. 20% Security Program - similar to the Two Payments Program OR a client may
choose this option to receive a better interest rate resulting in a lower
monthly payment.
6. Second Chance Program - for those clients with more challenging credit
histories - can facilitate an equipment lease by providing Premium Financial
with 1+5 payments.
7. Better Credit Program - for the financing of more challenging equipment, ie.
tanning beds, software, website development - typically one must be a homeowner
in order to finance this type of equipment.
Generic municipal lease agreements
Premium Financial is ramping up its ability to offer manufacturers and
distributors leasing arrangements under their own company's name directly in
order for manufacturers and distributors to lease directly to municipalities. A
generic municipal lease agreement is a lease agreement in which either a
manufacturer-vendor or a broker acts as the lessor and a governmental entitly
acts as the lessee. Generic municipal leases allows the municipality to lease a
piece of equipment from the manufacturer-vendor who would then assign the lease
to Premium Financial, and then Premium can reassign the lease to a financing or
banking institution. The reason this is helpful for both the vendor and the
municipality is that it speeds up the process of delivering equipment and can
bypass normal bidding processes that can take place on municipal transactions.
An ideal market position for Premium Financial would be to contract with large
manufacturer or distributors to finance and service their lease portfolio.
Premium Financial is currently seeking such manufacturers and distributors to
enter into a generic municipal lease program with.
Premium Financial is protected by receivable insurance, business collateral and
after-market resale values. This level of protection has facilitated its ability
to capture and exploit the business start-ups market.
-17-
EQUIPMENT ELIGIBLE FOR LEASING TRANSACTION.
Premium Financial is able to provide financing for various types of equipment.
The following is a partial list of eligible equipment: Audio/Visual Equipment;
ATM's; Architectural Equipment (CADs, Plotters); Agricultural Machinery;
Ambulances; Automobiles; Buses; Computer Systems (Networks, Mainframes, PC's);
Copiers; Facsimile; Mail Machines; Compressors; Construction Equipment; Dental
Equipment; Electronic Testing Equipment; Exercise/Fitness Equipment; Industrial
Machinery; Industrial Heating & Air Units; Mall Decor; Marine Electronics;
Material Handling Equipment; Medical Equipment; Model Home Interiors; Office
Furniture/Panel Systems; Off-Road Vehicles; Ophthalmic Equipment; Patient
Transports; Portable Toilets; Point of Sale Systems; Printing Equipment; Refuse
Containers/Bailers; Restaurant Equipment; Security Systems; Signage; Software
Packages; Storage Containers; Telephone Systems; Trucks; Two-Way Radio Systems;
Vending Machines; Veterinary Equipment.
Lease funders and purchasers
After it arranges the financing for the purchase of equipment via a lease,
Premium Financial offers its leases for sale to banking and financing
institutions. In the seven years that Premium Financial has been in business we
have developed relationships with these businesses. Banking and funding
relationships are developed and maintained in part by the quality of lease
applications that we prepare and submit to the banking and financing
institutions. Premium Financial does not have any material contracts with end
purchasers as generally, these leases are bought and sold without a formal
contract for sale. Our lending and are comprised of private and public lending
facilities including banks, independent finance organizations and funding
agencies. Our list of banking institutions, funders and purchasers includes:
Republic Leasing Co.
Pawnee Leasing
Financial Pacific Leasing
Manifest Funding Corp.
Pioneer Capital
Centerpoint Leasing
Safe Leasing
CFC Leasing Corporation
Glen Gangi, our chief operating officer, is also president of CFC Leasing
Company. Other than CFC Leasing Company, there are no affiliations between the
above banking institutions, funders and purchasers and Premium Financial.
Premium Financial has lease brokers that it has worked with over the past 5
years. We will send a lease application to a broker that may have a better
ability to locate funding for a particular transaction or equipment type.
Conversely, we also receive lease applications from brokers seeking our
assistance in obtaining financing for the lease. We regularly work with the
following brokers:
Jensen West Leasing
Easy Lease
Dimension Funding
Maximum Capital
Action Leasing Services
There are no affiliations between the above lease brokers and Premium Financial.
-18-
Our business generally parallels that of the general business climate in the
United States. With a stronger economy, the more companies are in need of lease
financing, and conversely, with a weaker general economy, fewer leases are
generated.
COMPETITION
Premium Financial Services & Leasing is not a significant participant in the
market for lease financing. There are many established leasing companies that
have significantly greater financial and personnel resources, technical
expertise and experience than we have in this field. In view of its limited
resources and size, Premium Financial Services & Leasing will continue to be at
a significant competitive disadvantage.
INTELLECTUAL PROPERTY
We own no intellectual property of any kind.
EMPLOYEES
Currently we have 7 full-time employees, 3 of which are salaried and 4 that work
on commission. We also have 10 non-employee independent contractor sales
associates that only receive compensation on a deal by deal basis upon
completion of a transaction. Premium Financial Services & Leasing's employees
are not represented by a union. Premium Financial Services & Leasing considers
its relations with its employees to be satisfactory.
REGULATION
Premium Financial's leasing activities are generally not subject to
regulation, except that certain states may regulate motor vehicle transactions,
impose licensing, documentation and lien perfection requirements, and/or
restrict the amount of interest or finance rates and other amounts the Company
may charge. The Company's failure to comply with such regulations, requirements
or restrictions could result in loss of principal and interest or finance
charges, penalties and imposition of restrictions on future business activities.
Although we believe we have systems and procedures in place to ensure
compliance with these requirements and believe that we currently are in
compliance in all material respects with applicable federal, state and local
laws, rules, regulations, there can be no assurance of full compliance with
current laws, regulations and rules, that more restrictive laws, regulations and
rules will not be adopted in the future, or that existing laws, regulations and
rules or the lease financing documents will not be interpreted in a different or
more restrictive manner. The occurrence of any such event could make compliance
substantially more difficult or expensive, restrict our ability to originate,
sell or service leases, further limit or restrict the amount of interest and
other fees and charges earned from leases that we originate, sell or service,
expose us to claims by borrowers and administrative enforcement actions, or
otherwise materially and adversely affect our business, financial condition and
prospects.
INDEMNIFICATION
The Wyoming Business Corporation Act permits the inclusion in the articles of
incorporation, provisions limiting or eliminating the personal monetary
liability of directors to a corporation or its shareholders by reason of their
conduct as directors. The Wyoming Business Corporation law limits or eliminates
the liability of a director of a corporation for monetary damages for any action
taken or not taken as a director in all instances except (i) instances where a
director receives financial benefits to which he is not entitled; (ii) any
intentional infliction of harm on the corporation or its shareholders; (iii) the
making of unlawful distributions; and (iv) intentional violations of criminal
law.
-19-
The bylaws of the Company allow for the elimination of personal monetary
liability on the part of a director to the fullest extent permitted by Wyoming
law. A shareholder is able to prosecute an action against a director for
monetary damages for any action taken, or any failure to take any action, as a
director, for the amount of financial benefit received by a director for which
he is not entitled, an intentional infliction of harm on the corporation or
shareholders, a violation of Section 17-16-833 of the Wyoming Business
Corporation Law or an intentional violation of criminal law.
SELECTED COMBINED FINANCIAL DATA
The following table contains certain selected financial data and is
qualified by the more detailed financial statements and the notes thereto
included elsewhere in this prospectus. The financial data for the years ended
December 31, 2000 and 2001 have been derived from our financial statements,
which statements have been audited by Robison, Hill & Co., independent public
accountants, and are included elsewhere in this prospectus. The financial data
for the nine months ended September 30, 2002 and 2001 have been derived from our
unaudited financial statements which, in our opinion, reflect all adjustments,
consisting only of normal recurring adjustments, necessary for a fair
presentation of results of operations of such periods.
The actual results for the nine months ended September 30, 2002 are not
necessarily indicative of the results that may be expected for any subsequent
interim period or for the full year. This data should be read in conjunction
with our financial statements and the Notes thereto included elsewhere in this
prospectus and "Management's Discussion and Analysis of Financial Conditions and
Result of Operations."
Premium Financial Services & Leasing, Inc.
(in thousands, except per share date)
For the Year Ended For the Nine Months Ended
December 31, September 30,
-------------------------------------- -------------------------------------
2000 2001 2001 2002
----------------- ----------------- ---------------- -----------------
Statement of (Unaudited)
Operation Data: Actual Actual Actual Actual
----------------- ----------------- ---------------- -----------------
Net Sales $383 $428 $342 $204
Operating Expense 351 358 319 328
Operating Income (loss) 32 70 22 (125)
Other Income (expense) (1) (1) - (15)
Net Income Attributable to
Common Stockholders 31 69 22 (140)
Basic & Diluted
Income per Share $ 0.01 $ 0.02 $ 0.01 $ (0.03)
Weighted Average Number
of Shares Outstanding 4,000,000 4,000,000 4,000,000 4,481,618
(In thousands)
Nine Months Ended
September 30, 2002
(Unaudited)
Balance Sheet Data Actual
- ------------------------------------- ----------------------------
Working Capital (117)
Total Assets 25
Short-term Debt 124
Long-term Debt 86
Total Stockholders' Equity (185)
-20-
MANAGEMENT'S DISCUSSION AND ANALYSIS AND RESULTS OF OPERATIONS
Premium Financial Services & Leasing, Inc. may make certain statements
in this prospectus, including, without limitation statements that contain the
words "believes," "anticipates," "estimates," "expects," and words of similar
import, constitute "forward-looking statements." Forward-looking statements may
relate to our future growth and profitability; the anticipated trends in our
industry; our competitive strengths and business strategies. Further,
forward-looking statements are based on our current expectations and are subject
to a number of risks, uncertainties and assumptions relating to our operations,
financial condition and results of operations. For a discussion of factors that
may affect the outcome projected in such statements, see "Risk Factors and
Investment Considerations." If any of these risks or uncertainties materialize,
or if any of the underlying assumptions prove incorrect, actual results could
differ materially from results expressed or implied in any of our
forward-looking statements. We do not undertake any obligation to revise these
forward-looking statements to reflect events or circumstances arising after the
date of this prospectus.
ACQUISITION AND MERGER
On May 21, 2002 we closed on the acquisition of Premium Financial (Indiana). As
a result of the acquisition, we issued 4,000,000 shares of our common stock to
Michael Gooch, the shareholder of Premium Financial (Indiana) and the business
of Premium Financial (Indiana) became our business. On May 31, 2002, we filed
articles of amendment in the State of Wyoming to merge Premium Financial
(Indiana) into Business to Business and to amend our articles of incorporation
to change our name from Business to Business, Inc. to Premium Financial Services
& Leasing, Inc. to reflect our new business. The name change became effective on
August 8, 2002. After the acquisition and merger, we are a leasing and finance
company that is focused on offering medium sized and small ticket leasing
programs to brokers, vendors and end users. Premium Financial finances the
purchase of equipment for end users of such equipment, and enters into a leasing
agreement with the equipment end users. Premium Financial then either sells the
lease outright to lease brokers or banking/financial institutions or retains the
lease in its portfolio. The company's financing solutions allow business the
ability to acquire capital needed to facilitate equipment acquisition, whether
the equipment is new or used. We solicit our services to leasing brokers and
commercial equipment manufacturers. Our financing solutions allow business the
ability to acquire the capital needed to facilitate equipment acquisition,
whether the equipment is new or used. We have no subsidiaries. Before our
acquisition and merger of Premium Financial (Indiana) we were an inactive
publicly registered shell corporation and had no significant assets or
operations.
-21-
RESULTS OF OPERATIONS AND ANALYSIS OF FINANCIAL CONDITION
Revenues
Premium Financial Services & Leasing had sales and sales revenues for year ended
December 31, 2001 in the amount of $428,221 compared to $383,351 for the same
period ended December 31, 2000. Sales and sales revenues for the nine months
ended September 30, 2002 were $203,567 compared to $341,619 for the same period
ended September 30, 2001. Revenues consisted primarily of fees collected for the
management and sale of leasing agreements. During 2001 we received an average
commission rate of 8.9% compared to 8.5% for 2000. Our average commission rate
for the nine months ended September 30, 2002 was 8.62% compared to 8.82% for the
same period ended September 30, 2001.
Our revenues decreased significantly in the first three quarters of 2002 as
compared to 2001 as a result of the general economic slowdown in the United
States. With the economic downturn, we generated fewer leases. We also received
slightly lower average percentage commissions on the leases that we sold because
banking institutions reduced the commission percentage given to brokers in
response to the general economic slowdown. Management believes that with a
stronger economy, more companies are in need of lease financing, and conversely,
with a weaker general economy, fewer leases are generated. Additionally, with a
weaker economy, many manufactures, in order to generate business, are willing to
provide low and even zero interest rate financing. Management does not
anticipate any further decrease of its leasing volume. Management's strategy to
help mitigate the risks posed by an economic slowdown is to focus on small
ticket leasing and on start-up leasing because Management believes that these
markets are underserved and additionally, will not decrease below their current
levels. Management believes that there are no other trends that are expected to
affect the results of operations.
Costs and Expenses
Premium Financial Services & Leasing had selling and marketing expenses for year
ended December 31, 2001 in the amount of $244,871 compared to $ 210,578 for the
same period ended December 31, 2000. Selling and marketing expenses for the nine
months ended September 30, 2002 were $129,317 compared to $218,336 for the same
period ended September 30, 2001. Premium Financial Services & Leasing had
general and administrative expenses for year ended December 31, 2001 in the
amount of $113,423 compared to $140,695 for the same period ended December 31,
2000. General and administrative expenses for the nine months ended September
30, 2002 were $198,884 compared to $101,536 for the same period ended September
30, 2001. Our general and administrative expenses have increased primarily due
to additional costs associated with the merger between Premium Financial
Services & Leasing (Indiana) and Business to Business, Inc., and for record
keeping associated with our becoming a public company.
-22-
Net Income
Premium Financial Services & Leasing had net income for December 31, 2001 of
$68,518 compared to $31,481 for December 31, 2000. Premium Financial received a
weighted average commission in the amount of 8.9% for the year ended December
31, 2001, compared to 8.52% for the year ended December 31, 2000. Net loss for
the nine months ended September 30, 2002 of ($139,812) compared to income of
$21,747 for the same period ended September 30, 2001. Premium Financial received
a weighted average commission in the amount of 8.62% for the nine months ended
September 30, 2002, compared to 8.825% for the nine months ended September 30,
2001. The net loss in 2002 is attributable to our reduced revenues and the
increase in our general and administrative expenses resulting from additional
costs associated with the merger between Premium Financial Services & Leasing
(Indiana) and Business to Business, Inc., and for record keeping associated with
our becoming a public company.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 2002, Premium Financial Services & Leasing had total current
assets of $7,032 and total assets of $25,324 compared to $33,030 current assets
and $130,336 total assets at December 21, 2001. Premium Financial Services &
Leasing had a net working capital deficit of $117,035 and $60,067 at September
30, 2002 and December 31, 2001. Net stockholders equity (deficit) in Premium
Financial Services & Leasing was ($184,618) at September 30, 2002 compared to
$30,194 as of December 31, 2001. The stockholders deficit resulted from a
retained earnings deficit of ($189,618) at September 30, 2002.
At September 31, 2002, while Premium Financial had used ($103,606) by its
operating activities, net cash in the amount of $77,608 was provided by its
financing activities resulting from the sale of its 10% convertible debenture
and a loan from a related party for the nine months ended September 30, 2002,
compared to net cash provided by operations of $27,462 and ($11,744) provided by
its financial activities for the same period in 2001. At September 30, 2002
Premium Financial had cash and cash equivalents in the amount of $7,032 compared
to $14,171 for the same period in 2001. We expect that we will be able to
satisfy our cash requirements for the next twelve months from our existing cash
flow. Premium Financial Services & Leasing will not have sufficient funds
(unless it is able to raise funds in a private placement) to undertake any
significant acquisitions or developments.
Our liquidity decreased significantly in the first three quarters of 2002 as
compared to 2001 as a result of our reduced revenues and increased costs. With
the economic downturn, we generated fewer leases. We also received slightly
lower average percentage commissions on the leases that we sold because banking
institutions reduced the commission percentage given to brokers in response to
the general economic slowdown. Management believes that with a stronger economy,
more companies are in need of lease financing, and conversely, with a weaker
general economy, fewer leases are generated. Additionally, with a weaker
economy, many manufactures, in order to generate business, are willing to
provide low and even zero interest rate financing. Management does not
anticipate any further decrease of its leasing volume. Management's strategy to
help mitigate the risks posed by an economic slowdown is to focus on small
ticket leasing and on start-up leasing because Management believes that these
markets are underserved and additionally, will not decrease below their current
levels. Management believes that there are no other known material trends,
events or uncertainties that have or are reasonably likely to have a material
impact on our short-term or long-term liquidity.
-23-
It is the opinion of Management that by focusing on the small ticket leasing and
start-up leasing markets, it will be able to return to profitability by the
second quarter of 2003.
DESCRIPTION OF PROPERTY
Premium Financial has entered into a lease agreement for its office facilities.
The rental charges are approximately $1,400 per month and this lease expires in
April 2006. On January 14, 2002 the Company entered into a sublease for
additional office space. The rental charge ranges from $3,500 to $6,992 per
month expiring November 30, 2004. In March of 2002, our sublease rental charges
increased due to our increase in rented square footage from 3,500 sq ft to 6,500
sq ft.
MARKET FOR THE SHARES AND RELATED STOCKHOLDER MATTERS
Our common stock is not listed or quoted at the present time, and there
is no public market for our common stock. There can be no assurance that a
public market for our common stock will ever develop. We intend to qualify our
common stock for trading on the OTC Bulletin Board or other public market after
the Registration Statement, of which this prospectus is a part, becomes
effective.
We have no options or warrants outstanding at the current time.
EXECUTIVE COMPENSATION
The following table sets forth all compensation paid by us to the chief
executive officer and the four most highly compensated executive officers for
services rendered during the last three completed fiscal years.
SUMMARY COMPENSATION TABLE
LONG-TERM
COMPENSATION AWARDS
ANNUAL RESTRICTED SECURITIES
COMPENSATION STOCK UNDERLYING ALL OTHER
NAME AND PRINCIPAL POSITION YEAR SALARY ($) BONUS ($) AWARDS ($) OPTIONS/SARS COMPENSATION
--------------------------- ---- ---------- --------- ----------- ------------ ------------
Michael Gooch 2001 120,000 - - - -
President, CEO 2000 68,000 - - - -
1999 42,000 - - - -
Glen Gangi 2001 - - - - -
COO 2000 - - - - -
1999 - - - - -
Bret Pafford 2001 3,400 - - - -
Vice Presidnet 2000 - - - - -
1999 - - - - -
Dennis Klutzke 2001 - - - - -
CFO 2000 - - - - -
1999 - - - - -
-24-
DIRECTOR COMPENSATION
Directors currently receive no cash compensation for their services in
that capacity. Reasonable out-of-pocket expenses may be reimbursed to directors
in connection with attendance at meetings.
LEGAL MATTERS
The legality of the securities offered hereby has been passed upon for
Premium Financial by Kevin Sherlock, Esq..
EXPERTS
The Consolidated Financial Statements and Related Financial Statement
Schedules incorporated in this prospectus have been audited by Robison, Hill &
Co., independent auditors, as stated in their reports, and have been included in
reliance upon the reports of such firm given upon their authority as experts in
accounting and auditing.
Additional information
We have filed with the SEC a registration statement on Form SB-2 under the
Securities Act of 1933, with respect to 100,000 of our issued and outstanding
shares of commons stock. This prospectus, which forms a part of the registration
statement, does not contain all of the information set forth in the registration
statement as permitted by applicable SEC rules and regulations. Statements in
this prospectus about any contract, agreement, or other document are not
necessarily complete. With respect to each such contract, agreement, or document
filed as an exhibit to the registration statement, reference is made to the
exhibit for a more complete description of the matter involved, and the validity
of each such statement is limited by this reference.
Copies of our reports, proxy statements and other information may by inspected
and copied, and can be obtained by mail at prescribed rates from the Public
Reference Section of the SEC, 450 Fifth Street, N.W., Washington, D.C. 20549, or
by calling the SEC at 1-800-SEC-0330. The SEC maintains a Web site that includes
reports, proxy statements and other information. The address of the SEC Web site
is http://www.sec.gov.
We will furnish to our shareholders annual reports containing audited financial
statements reported on by independent public accountants for each fiscal year
and make available quarterly reports containing unaudited financial information
for the first three quarters of each fiscal year.
-25-
INDEPENDENT ACCOUNTANTS' REPORT
Premium Financial Services and Leasing, Inc.
We have audited the accompanying balance sheet of Premium Financial
Services and Leasing, Inc. as of December 31, 2001 and the related statements of
operations, cash flows, and stockholders' equity (deficit) for the years ended
December 31, 2001 and 2000. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the December 31, 2001 financial statements referred to
above present fairly, in all material respects, the financial position of
Premium Financial Services and Leasing, Inc. as of December 31, 2001, and the
results of its operations and its cash flows for the years ended December 31,
2001 and 2000 in conformity with generally accepted accounting principles in the
United States of America.
Respectfully submitted
/S/ ROBISON, HILL & CO.
Certified Public Accountants
Salt Lake City, Utah
October 22, 2002
F - 1
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
BALANCE SHEET
(Unaudited)
September 30, December 31,
2002 2001
------------------ ------------------
ASSETS
Current Assets:
Cash and Cash Equivalents $ 7,032 $ 33,030
Fixed Assets:
Computer and Office Equipment 26,767 26,767
Less Accumulated Depreciation (8,475) (4,461)
------------------ ------------------
18,292 22,306
------------------ ------------------
Other assets - deposits - 75,000
------------------ ------------------
TOTAL ASSETS $ 25,324 $ 130,336
================== ==================
LIABILITIES
Current Liabilities:
Accounts Payable $ 15,033 $ 2,932
Accrued Expenses 5,653 151
Line of Credit 14,589 -
Current portion of lease obligations 3,792 4,071
Related Party Loans - Current 85,000 85,943
------------------ ------------------
Total Current Liabilities 124,067 93,097
------------------ ------------------
Non-Current Liabilities:
Convertible Debentures 85,000 -
Long-Term Debt - lease obligations 875 7,045
------------------ ------------------
Total Liabilities 209,942 100,142
------------------ ------------------
STOCKHOLDERS EQUITY
Common Stock, Par Value $.001
Authorized 100,000,000 shares, Issued
5,000,000 and 4,000,000 at September 30, 2002
and December 31, 2001 $ 5,000 $ 4,000
Retained Earnings (Deficit) (189,618) 26,194
------------------ ------------------
Total Stockholders' Equity (184,618) 30,194
------------------ ------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 25,324 $ 130,336
================== ==================
See accompanying notes and accountants' report.
F - 2
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
For The Nine For The Year
Months Ended Ended
September 30, December 31,
------------------------------------- -------------------------------------
2002 2001 2001 2000
----------------- ------------------ ------------------ -----------------
REVENUES
Sales commissions $ 203,567 $ 341,619 $ 428,221 $ 383,351
----------------- ------------------ ------------------ -----------------
EXPENSES
Selling & Marketing 129,317 218,336 244,871 210,578
General & Administrative 198,884 101,536 113,423 140,695
----------------- ------------------ ------------------ -----------------
328,201 319,872 358,294 351,273
----------------- ------------------ ------------------ -----------------
Net Income from Operations (124,634) 21,747 69,927 32,078
Other Income (Expense)
Interest Income (Expense) (15,178) - (1,409) (597)
----------------- ------------------ ------------------ -----------------
NET INCOME (LOSS) $ (139,812) $ 21,747 $ 68,518 $ 31,481
================= ================== ================== =================
Earnings Per Share $ (0.03) $ 0.01 $ 0.02 $ 0.01
================= ================== ================== =================
See accompanying notes and accountants' report.
F - 3
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
REFERENCES TO SEPTEMBER 30, 2002 ARE UNAUDITED
Retained
Common Stock Earnings
--------------------------------------
Shares Value (Deficit)
------------------ ----------------- ------------------
Balance at February 8, 2000 (inception) - $ - $ -
Common stock issued for cash
on February 8, 2000 100 100 -
Effect of Recapitalization May 21, 2002 3,999,900 3,900 (3,900)
Distributions - - (29,600)
Net Income - - 31,481
------------------ ----------------- ------------------
Balance at December 31, 2000 4,000,000 4,000 (2,019)
Distributions - - (40,305)
Net Income - - 68,518
------------------ ----------------- ------------------
Balance at December 31, 2001 4,000,000 4,000 26,194
To Record Merger with
Business to Business, May 21, 2002 1,000,000 1,000 (76,000)
Net Loss - - (139,812)
------------------ ----------------- ------------------
Balance at September 30, 2002
(Unaudited) 5,000,000 $ 5,000 $ (189,618)
================== ================= ==================
See accompanying notes and accountants' report.
F - 4
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
For The Nine For The
Months Ended Year Ended
September 30, December 31,
-------------------------------------- -------------------------------------
2002 2001 2001 2000
------------------ ------------------ ----------------- -----------------
Cash Flows From Operating Activities
Net income (loss) for the period $ (139,812) $ 21,747 $ 68,518 $ 31,481
Adjustments to reconcile net loss to net cash
provided by operating activities
Depreciation 4,014 - 4,461 1,603
Changes in Operating Assets and Liabilities
Increase (Decrease) in Accounts Payable 12,101 3,867 (15,925) 17,253
Increase (Decrease) in Accrued Expenses 5,502 1,848 151 -
Increase (Decrease) in Line of Credit 14,589 -
------------------ ------------------ ----------------- -----------------
Net Cash Provided by (Used in) Operating
Activities (103,606) 27,462 57,205 50,337
------------------ ------------------ ----------------- -----------------
Cash Flows From Investing Activities
Purchase of Equipment - (26,547) (10,425) (16,342)
Deposit - - (75,000) -
------------------ ------------------ ----------------- -----------------
Net Cash Used by Investing Activities - (26,547) (85,425) (16,342)
------------------ ------------------ ----------------- -----------------
Cash Flows From Financing Activities
Proceeds from Convertible Debentures 85,000 - - -
Proceeds from Loans - Related Party 30,000 - 80,000 5,943
Proceeds Long-Term Debt - 12,952 - 16,342
Proceeds from Sale of Common Stock - - - 100
AAA Distributions - (24,696) (40,304) (29,600)
Payments on Long-term Debt (6,450) - (3,446) (1,780)
Payments on Related Party Loans (30,942) - - -
------------------ ------------------ ----------------- -----------------
Net Cash Provided by (Used in) Financing
Activities 77,608 (11,744) 36,250 (8,995)
------------------ ------------------ ----------------- -----------------
Increase (Decrease) in Cash (25,998) (10,829) 8,030 25,000
Cash at beginning of period 33,030 25,000 25,000 -
------------------ ------------------ ----------------- -----------------
Cash at End of Period $ 7,032 $ 14,171 $ 33,030 $ 25,000
================== ================== ================= =================
Supplemental Disclosure of Interest and Income Taxes Paid
Interest paid during the period $ 12,343 $ - $ 1,338 $ 597
================== ================== ================= =================
Income taxes paid during the period $ - $ - $ - $ -
================== ================== ================= =================
Supplemental Disclosure of Non-cash Investing and Financing Activities:
None
See accompanying notes and accountants' report.
F - 5
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
REFERENCES TO SEPTEMBER 30, 2002 AND 2001ARE UNAUDITED
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of accounting policies for Premium Financial Services and
Leasing, Inc. ( the "Company") is presented to assist in understanding the
Company's financial statements. The accounting policies conform to generally
accepted accounting principles and have been consistently applied in the
preparation of the financial statements.
INTERIM REPORTING
The unaudited financial statements as of September 30, 2002 and for the
nine month period then ended reflect, in the opinion of management, all
adjustments (which include only normal recurring adjustments) necessary to
fairly state the financial position and results of operations for the nine
months. Operating results for interim periods are not necessarily indicative of
the results which can be expected for full years.
ORGANIZATION AND BASIS OF PRESENTATION
The Company was incorporated under the laws of the State of Wyoming on
July 11, 1997. The Company ceased all operating activities during the period
from July 11, 1997 to October 20, 1999 and was considered dormant.
On April 8, 2002, the Company entered into an acquisition agreement
with Premium Financial Services & Leasing, Inc., wherein, Business to Business
acquired Premium Financial Services & Leasing, Inc. in exchange for a
controlling interest in its shares of Common Stock. Subsequently, Business to
Business changed its name to Premium Financial Services & Leasing, Inc. On May
21, 2002, the merger was finalized.
NATURE OF BUSINESS
The Company is in the business of full service leasing that is focused
on offering medium sized and small ticket-leasing programs to a national network
of brokers, vendors and end users.
PERVASIVENESS OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles required management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
F - 6
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
REFERENCES TO SEPTEMBER 30, 2002 AND 2001ARE UNAUDITED
(Continued)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
DEPRECIATION
Fixed assets are stated at cost. Depreciation is calculated primarily
using the straight-line method over the estimated useful lives of the assets as
follows:
Asset Rate
- ------------------------------------------------ -----------------
Computer Equipment 5 years
Maintenance and repairs are charged to operations; betterments are
capitalized. The cost of property sold or otherwise disposed of and the
accumulated depreciation thereon are eliminated from the property and related
accumulated depreciation accounts, and any resulting gain or loss is credited or
charged to income.
INCOME TAXES
For the years 2001 and 2000 the Company has elected to be an
"S-Corporation" and is not subject to income tax. Income is taxed directly to
the shareholders.
CASH AND CASH EQUIVALENTS
For purposes of the statement of cash flows, the Company considers all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.
RECLASSIFICATIONS
Certain reclassifications have been made in the 2001 and 2000 financial
statements to conform with the 2002 presentation.
REVENUE RECOGNITION
The Company's primary source of revenue is from acting as a lease
broker. Revenue is recognized from the sale or assignment of sales-type or
direct financing leases to third parties when the lease is funded by the
purchaser.
F - 7
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
REFERENCES TO SEPTEMBER 30, 2002 AND 2001ARE UNAUDITED
(Continued)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
INCOME PER SHARE
The reconciliations of the numerators and denominators of the basic
income per share computations are as follows:
Income Shares Per-Share
(Numerator) (Denominator) Amount
------------------ ------------------- ------------------
For the Nine Months Ended September 30, 2002
-----------------------------------------------------------
BASIC LOSS PER SHARE
Loss to common shareholders $ (139,812) 4,481,618 $ (0.03)
================== =================== ==================
For the Nine Months Ended September 30, 2001
-----------------------------------------------------------
BASIC EARNING PER SHARE
Income to common shareholders $ 21,747 4,000,000 $ 0.01
================== =================== ==================
For the Year Ended December 31, 2001
-----------------------------------------------------------
BASIC EARNINGS PER SHARE
Income to common shareholders $ 68,518 4,000,000 $ 0.02
================== =================== ==================
For the Year Ended December 31, 2000
-----------------------------------------------------------
BASIC EARNINGS PER SHARE
Income to common shareholders $ 31,481 4,000,000 $ 0.01
================== =================== ==================
There were no common stock equivalents outstanding at December 31, 2001
and 2000.
CONCENTRATIONS OF CREDIT RISK
The Company has no significant off-balance-sheet concentrations of
credit risk such as foreign exchange contracts, options contracts or other
foreign hedging arrangements. The Company maintains the majority of its cash
balances with two financial institutions, in the form of demand deposits
ADVERTISING EXPENSE
Advertising costs are expensed when the services are provided.
F - 8
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
REFERENCES TO SEPTEMBER 30, 2002 AND 2001ARE UNAUDITED
(Continued)
NOTE 2 - DEPOSITS
Deposits as of March 31, 2002 and December 31, 2001, include a $75,000
deposit paid in contemplation of the May 21, 2002 purchase of Business to
Business, Inc.
NOTE 3- LINE OF CREDIT
The Company has a $50,000 line of credit through Farmers Bank at an
interest rate of 7.25%. As of September 30, 2002, the Company owes $14,589 on
this line of credit.
NOTE 4 - RELATED PARTY PAYABLES
On December 4, 2001, an officer loaned the Company $75,000. The Company
shall repay $90,000 to the officer within 180 days of the date of the loan.
On February 5, 2002, the father of the president of the Company, loaned
the Company $30,000. Interest at the stated prime rate of 4.75% is being
accrued.
Related Party payables consists of the following:
(Unaudited)
September 30, December 31,
-------------------------------- -----------------------------
2002 2001 2001 2000
----------------- ------------- -------------- -------------
Note payable to officer, unsecured $ 75,000 - $ 75,000 $ -
Note payable, related party 10,000 - - -
Advances, unsecured, non-interest bearing,
due on demand - - 10,943 5,943
----------------- ------------- -------------- -------------
$ 85,000 $ - $ 85,943 $ 5,943
================= ============= ============== =============
NOTE 5 - LONG TERM DEBT
Long-term liabilities of the Company at December 31, 2001 and 2000
consists of the following:
(Unaudited)
September 30, December 31,
----------------------------- ----------------------------
2002 2001 2001 2000
------------- ------------- ------------- -------------
Lease payable to a Bank, due July 31, 2004 with
interest of 7.65%, secured by computer equipment $ 4,667 $ 11,116 $ 11,116 $ 14,562
Less Current Portion 3,792 4,071 4,071 3,772
------------- ------------- ------------- -------------
Total Long-Term Liability $ 875 $ 7,045 $ 7,045 $ 10,790
============= ============= ============= =============
F - 9
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
REFERENCES TO SEPTEMBER 30, 2002 AND 2001ARE UNAUDITED
(Continued)
NOTE 6- CONVERTIBLE DEBENTURES
During 2002, the Company made a private offering of 500 to 10,000 units
that consist of a $100, 10% Convertible Debenture and common share purchase
warrant. The debenture matures one year from closing, unless extended. The
debentures will bear an annual interest rate of 10%, payable semi-annually,
beginning six months from closing of the offering, payable in cash or common
stock. The debenture will be convertible at the holder's option at any time
prior to maturity at a conversion price of equal to 50% of the average trading
price of Premium Financial Services & Leasing , Inc.'s shares over 20
consecutive trading days. As of the date of this report the Company's stock has
not begun trading. As of September 30, 2002, the Company has $85,000 in
convertible debentures.
NOTE 7- CONTINGENCIES
The Company at times will have agreements with a funding source to sell
certain receivables with recourse. In the event of the customer's default the
company must repurchase the receivables from the funding source. As of December
31, 2001 and 2000 the company is not contingently liable to such receivables
sold with recourse.
The Company was a defendant in a lawsuit. In the opinion of Company's
management, the lawsuit will not have a material adverse impact on the Company's
financial position, results of operations or cash flows. On July 16, 2002, the
lawsuit was settled in the Company's favor.
NOTE 8 - LEASES
The Company leases facilities and equipment under various capital and
operating leases with expiration dates through 2006.
The Company has entered into a lease agreement for its office
facilities. The rental charges are approximately $1,400 per month. The lease
expires in April 2006. On January 14, 2002 the Company entered into a sublease
for additional office space. The rental charge ranges from $3,500 to $6,992 per
month expiring November 30, 2004.
Equipment capitalized under capital leases had fair market value of
$16,342 as of June 30, 2000 (date of acquisition of the equipment and assumption
of the related leases by the Company). Total rental expense for the Company for
the years ended December 31, 2001 and 2000 was $19,885 and $17,077,
respectively, including rent under month-to month leases.
F - 10
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
REFERENCES TO SEPTEMBER 30, 2002 AND 2001ARE UNAUDITED
(Continued)
NOTE 8 - LEASES (CONTINUED)
Net minimum rental commitments under all non-cancelable operating leases are as
follows:
Capital Operating
Year Ending December 31, Leases Leases Total
------------------ ------------------- ------------------
2002 $ 4,755 $ 59,038 $ 63,793
2003 4,755 88,343 93,098
2004 2,379 98,947 101,326
2004 - 31,545 31,545
2005 - 16,800 16,800
------------------ ------------------- ------------------
Total minimum lease payments due 11,889 294,673 306,562
Less amounts representing interest (1,099) - (1,099)
------------------ ------------------- ------------------
$ 10,790 $ 294,673 $ 305,463
================== =================== ==================
The minimum future lease payments under these leases for the next five years
are:
Twelve Months
Ended December 31, Real Property Equipment
- --------------------------- ------------------- ------------------
2002 $ 51,300 $ 12,493
2003 72,741 20,357
2004 93,712 7,614
2005 16,800 14,745
2006 16,800 -
------------------- ------------------
Total minimum future lease payments $ 251,353 $ 55,209
=================== ==================
The leases generally provides that insurance, maintenance and tax
expenses are obligations of the Company. It is expected that in the normal
course of business, leases that expire will be renewed or replaced by leases on
other properties.
F - 11
PREMIUM FINANCIAL SERVICES AND LEASING, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
REFERENCES TO SEPTEMBER 30, 2002 AND 2001ARE UNAUDITED
(Continued)
NOTE 9- SUBSEQUENT EVENTS
On May 21, 2002, the Company finalized a merger agreement with Premium
Financial Services & Leasing, Inc. (Indiana). As a result, the Company acquired
the business and operations of Premium Financial Services & Leasing, Inc.
(Indiana), in exchange for the issuance of a controlling interest in Premium
Financial Services & Leasing, Inc. (Wyoming) shares to the former shareholder of
Premium Financial Services & Leasing, Inc. (Indiana). Under the Plan of Merger,
4,000,000 shares of Common Stock were issued to the former shareholder of
Premium Financial Services & Leasing, Inc. (Indiana), increasing the number of
shares outstanding to 5,000,000. Merger expenses of $75,000 were recorded as a
decease to retained earnings (deficit).
The merger was recorded as a recapitalization. In connection with this
recapitalization, the number of shares outstanding prior to the merger have been
restated to their post merger equivalents (increased from 100 shares to
4,000,000) and the par value of the Common Stock changed from no par value to
$.001. All references in the accompanying financial statements to the number of
Common shares and per-share amounts for 2001 and 2000 have been restated to
reflect the equivalent number of post merger shares.
F - 12
PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
ITEM 24. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The Wyoming Business Corporation Act permits the inclusion in the articles of
incorporation, provisions limiting or eliminating the personal monetary
liability of directors to a corporation or its shareholders by reason of their
conduct as directors. The Wyoming Business Corporation Law limits or eliminates
the liability of a director of a corporation for monetary damages for any action
taken or not taken as a director in all instances except (i) instances where a
director receives financial benefits to which he is not entitled; (ii) any
intentional infliction of harm on the corporation or its shareholders; (iii) the
making of unlawful distributions; and (iv) intentional violations of criminal
law.
The bylaws of the Company allow for the elimination of personal monetary
liability on the part of a director to the fullest extent permitted by Wyoming
law. A shareholder is able to prosecute an action against a director for
monetary damages for any action taken, or any failure to take any action, as a
director, for the amount of financial benefit received by a director for which
he is not entitled, an intentional infliction of harm on the corporation or
shareholders, a violation of Section 17-16-833 of the Wyoming Business
Corporation Law or an intentional violation of criminal law.
ARTICLE XI of the Bylaws of the Registrant provide as follows:
SECTION 43. INDEMNIFICATION OF DIRECTORS, EXECUTIVE OFFICERS, OTHER
OFFICERS, EMPLOYEES AND OTHER AGENTS.
(a.) DIRECTORS OFFICERS. The corporation shall indemnify its directors
and officers to the fullest extent not prohibited by the Wyoming General
Corporation Law; provided, however, that the corporation may modify the extent
of such indemnification by individual contracts with its directors and officers;
and, provided, further, that the corporation shall not be required to indemnify
any director or officer in connection with any proceeding (or part thereof)
initiated by such person unless (i) such indemnification is expressly required
to be made by law, (ii) the proceeding was authorized by the Board of Directors
of the corporation, (iii) such indemnification is provided by the corporation,
in its sole discretion, pursuant to the powers vested in the corporation under
the Wyoming General Corporation Law or (iv) such indemnification is required to
be made under subsection (d).
(b.) EMPLOYEES AND OTHER AGENTS. The corporation shall have power to
indemnify its employees and other agents as set forth in the Wyoming General
Corporation Law.
(c.) EXPENSE. The corporation shall advance to any person who was or is
a party or is threatened to be made a party to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative or
investigative, by reason of the fact that he is or was a director or officer, of
the corporation, or is or was serving at the request of the corporation as a
director or executive officer of another corporation, partnership, joint
venture, trust or other enterprise, prior to the final disposition of the
proceeding, promptly following request therefor, all expenses incurred by any
director or officer in connection with such proceeding upon receipt of an
undertaking by or on behalf of such person to repay said mounts if it should be
determined ultimately that such person is not entitled to be indemnified under
this Bylaw or otherwise.
II-1
Notwithstanding the foregoing, unless otherwise determined pursuant to
paragraph (e) of this Bylaw, no advance shall be made by the corporation to an
officer of the corporation (except by reason of the fact that such officer is or
was a director of the corporation in which event this paragraph shall not apply)
in any action, suit or proceeding, whether civil, criminal, administrative or
investigative, if a determination is reasonably and promptly made (i) by the
Board of Directors by a majority vote of a quorum consisting of directors who
were not parties to the proceeding, or (ii) if such quorum is not obtainable,
or, even if obtainable, a quorum of disinterested directors so directs, by
independent legal counsel in a written opinion, that the facts known to the
decision-making party at the time such determination is made demonstrate clearly
and convincingly that such person acted in bad faith or in a manner that such
person did not believe to be in or not opposed to the best interests of the
corporation.
(d.) ENFORCEMENT. Without the necessity of entering into an express
contract, all rights to indemnification and advances to directors and officers
under this Bylaw shall be deemed to be contractual rights and be effective to
the same extent and as if provided for in a contract between the corporation and
the director or officer. Any right to indemnification or advances granted by
this Bylaw to a director or officer shall be enforceable by or on behalf of the
person holding such right in any court of competent jurisdiction if (i) the
claim for indemnification or advances is denied, in whole or in part, or (ii) no
disposition of such claim is made within ninety (90) days of request therefor.
The claimant in such enforcement action, if successful in whole or in part,
shall be entitled to be paid also the expense of prosecuting his claim. In
connection with any claim for indemnification, the corporation shall be entitled
to raise as a defense to any such action that the claimant has not met the
standard of conduct that make it permissible under the Wyoming General
Corporation Law for the corporation to indemnify the claimant for the amount
claimed. In connection with any claim by an officer of the corporation (except
in any action, suit or proceeding, whether civil, criminal, administrative or
investigative, by reason of the fact that such officer is or was a director of
the corporation) for advances, the corporation shall be entitled to raise a
defense as to any such action clear and convincing evidence that such person
acted in bad faith or in a manner that such person did not believe to be in or
not opposed in the best interests of the corporation, or with respect to any
criminal action or proceeding that such person acted without reasonable cause to
believe that his conduct was lawful. Neither the failure of the corporation
(including its Board of Directors, independent legal counsel or its
stockholders) to have made a determination prior to the commencement of such
action that indemnification of the claimant is proper in the circumstances
because he has met the applicable standard of conduct set forth in the Wyoming
General Corporation Law, nor an actual determination by the corporation
(including its Board of Directors, independent legal counsel or its
stockholders) that the claimant has not met such applicable standard of conduct,
shall be a defense to the action or create a presumption that claimant has not
met the applicable standard of conduct. In any suit brought by a director or
officer to enforce a right to indemnification or to an advancement of expenses
hereunder, the burden of proving that the director or officer is not entitled to
be indemnified, or to such advancement of expenses, under this Article XI or
otherwise shall be on the corporation.
(e.) NON-EXCLUSIVITY OF RIGHTS. The rights conferred on any person by
this Bylaw shall not be exclusive of any other right which such person may have
or hereafter acquire under any statute, provision of the Articles of
Incorporation, Bylaws, agreement, vote of stockholders or disinterested
directors or otherwise, both as to action in his official capacity and as to
action in another capacity while holding office. The corporation is specifically
authorized to enter into individual contracts with any or all of its directors,
officers, employees or agents respecting indemnification and advances, to the
fullest extent not prohibited by the Wyoming General Corporation Law.
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(f.) SURVIVAL OF RIGHTS. The rights conferred on any person by this
Bylaw shall continue as to a person who has ceased to be a director, officer,
employee or other agent and shall inure to the benefit of the heirs, executors
and administrators of such a person.
(g.) INSURANCE. To the fullest extent permitted by the Wyoming General
Corporation Law, the corporation, upon approval by the Board of Directors, may
purchase insurance on behalf of any person required or permitted to be
indemnified pursuant to this Bylaw.
(h.) AMENDMENTS. Any repeal or modification of this Bylaw shall only be
prospective and shall not affect the rights under this Bylaw in effect at the
time of the alleged occurrence of any action or omission to act that is the
cause of any proceeding against any agent of the corporation.
(i.) SAVING CLAUSE. If this Bylaw or any portion hereof shall be
invalidated on any ground by any court of competent jurisdiction, then the
corporation shall nevertheless indemnify each director and officer to the full
extent not prohibited by any applicable portion of this Bylaw that shall not
have been invalidated, or by any other applicable law.
(j.) CERTAIN DEFINITIONS. For the purposes of this Bylaw, the following
definitions shall apply:
(i.) The term "proceeding" shall be broadly construed and shall
include, without limitation, the investigation, preparation,
prosecution, defense, settlement, arbitration and appeal of, and the
giving of testimony in, any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or
investigative.
(ii.) The term "expenses" shall be broadly construed and shall include,
without limitation, court costs, attorneys' fees, witness fees, fines,
amounts paid in settlement or judgment and any other costs and expenses
of any nature or kind incurred in connection with any proceeding.
(iii.) The term the "corporation" shall include, in addition to the
resulting corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger
which, if its separate existence had continued, would have had power
and authority to indemnify its directors, officers, and employees or
agents, so that any person who is or was a director, officer, employee
or agent of such constituent corporation, or is or was serving at the
request of such constituent corporation as a director, officer,
employee or agent or another corporation, partnership, joint venture,
trust or other enterprise, shall stand in the same position under the
provisions of this Bylaw with respect to the resulting or surviving
corporation as he would have with respect to such constituent
corporation if its separate existence had continued.
(iv.) References to a "director," "executive officer," "officer,"
"employee," or "agent" of the corporation shall include, without
limitation, situations where such person is serving at the request of
the corporation as, respectively, a director, executive officer,
officer, employee, trustee or agent of another corporation,
partnership, joint venture, trust or other enterprise.
(v.) References to "other enterprises" shall include employee benefit
plans; references to "fines" shall include any excise taxes assessed on
a person with respect to an employee benefit plan; and references to
"serving at the request of the corporation" shall include any service
as a director, officer, employee or agent of the corporation which
imposes duties on, or involves services by, such director, officer,
employee, or agent with respect to an employee benefit plan, its
participants, or beneficiaries; and a person who acted in good faith
and in a manner he reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan shall be
deemed to have acted in a manner "not opposed to the best interests of
the corporation" as referred to in this Bylaw.
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Section 17-16-202 of the Wyoming Business Corporation Law allows a
corporation to eliminate the personal liability of directors of a corporation to
the corporation or its stockholders for monetary damages for any action taken,
or any failure to take any action, as a director, except for the amount of
financial benefit received by a director for which he is not entitled, an
intentional infliction of harm on the corporation or shareholders, a violation
of 17-16-833 or an intentional violation of criminal law.
Section 17-16-850, et seq. of the Wyoming Business Corporation Law
provides that a corporation has the power to indemnify a director, officer,
employee or agent of the corporation and certain other persons serving at the
request of the corporation in related capacities against amounts paid and
expenses incurred in connection with an action or proceeding to which he is or
is threatened to be made a party by reason of such position, if such person
shall have acted in good faith and in a manner he reasonably believed to be in
or not opposed to the best interests of the corporation, and, in any criminal
proceeding, if such person had no reasonable cause to believe his conduct was
unlawful; provided that, in the case of actions brought by or in the right of
the corporation, no indemnification shall be made with respect to any matter as
to which such person shall have been adjudged to be liable to the corporation
unless and only to the extent that the adjudicating court determines that such
indemnification is proper under the circumstances.
Insofar as indemnification for liabilities arising under the Securities Act may
be permitted to directors, officers and controlling persons of the Company
pursuant to the foregoing provisions, or otherwise, the Company has been advised
that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Company of expenses
incurred or paid by a director, officer or controlling person of the Company in
the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Company will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
ITEM 25. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth the estimated costs and expenses of
Premium Financial in connection with the offering described in the Registration
Statement.
Securities and Exchange Commission Registration Fee $ 100
Legal Fees and Expenses 10,000
Accounting Fees and Expenses 20,000
Other Expenses 2,500
-----
Total Expenses $32,600
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ITEM 26. RECENT SALES OF UNREGISTERED SECURITIES.
On March 21, 2002, pursuant to the closing of the acquisition agreement
and in consideration for the assumption of the assets and liabilities of Premium
Financial (Indiana), Business to Business, Inc. (now named Premium Financial
Services & Leasing, Inc. (Wyoming)) issued a total of 4,000,000 shares to our
president and director, Michael Gooch in reliance on Section 4(2) of the
Securities Act as no public offering was involved..
On March 18, 2002, in return for $10,000, and again on April 17, 2002,
in return for another $10,000 Premium Financial sold to and issued to J.R. Gooch
of Indianapolis, Indiana, convertible debentures. J.R. Gooch is the brother of
Michael Gooch, the president of Premium Financial. These debentures were issued
in reliance on Section 4(2) of the Securities Act as no public offering was
involved. The debentures carry an interest rate of 10% payable semi-annually and
mature one year from the date of issuance. The debentures are convertible at the
holder's option at any time prior to maturity at a conversion price of equal to
50% of the average trading price of Premium Financial's common stock, over 20
consecutive trading days, in the event that the commons stock of Premium
Financial is listed for quotation on an exchange. Upon any conversion to commons
shares, the debenture holder will also receive one warrant for every one common
share issued. Each warrant will entitle the holder to acquire one additional
common share of Premium Financial at the rate of 100% of the average trading
price of Premium Financial's common stock, over 20 consecutive trading days, and
the warrant shall be exercisable within 180 days of issuance. A form of this
convertible debenture is included as Exhibit 4.2.
On May 9, 2002, in return for $20,000 Premium Financial sold to and
issued to three accredited investors from Indianapolis, Indiana, convertible
debentures. Carol Cummings purchased $5,000; Thomas Mathews purchased $10,000;
and Carl Singleton purchased $5,000 of the debentures. Carol Cummings is the
long time girlfriend of the father of Michael Gooch, the president of Premium
Financial. Thomas Mathews is a long time friend of Michael Gooch, the president
of Premium Financial. Carl Singleton is a long time friend of Michael Gooch, the
president of Premium Financial. These debentures were issued in reliance on
Section 4(2) of the Securities Act as no public offering was involved. The
debentures carry an interest rate of 10% payable semi-annually and mature one
year from the date of issuance. The debentures are convertible at the holder's
option at any time prior to maturity at a conversion price of equal to 50% of
the average trading price of Premium Financial's common stock, over 20
consecutive trading days, in the event that the commons stock of Premium
Financial is listed for quotation on an exchange. Upon any conversion to commons
shares, the debenture holder will also receive one warrant for every one common
share issued. Each warrant will entitle the holder to acquire one additional
common share of Premium Financial at the rate of 100% of the average trading
price of Premium Financial's common stock, over 20 consecutive trading days, and
the warrant shall be exercisable within 180 days of issuance. A form of this
convertible debenture is included as Exhibit 4.2.
On June 28, 2002, in return for $35,000 Premium Financial sold to and
issued to Karen Krach of Indianapolis, Indiana, an accredited investor,
convertible debentures. Karen Krach contacted Premium Financial and asked to
invest. Karen Krach learned of Premium Financial from a friend of Michael Gooch,
the president of Premium Financial. These debentures were issued in reliance on
Section 4(2) of the Securities Act as no public offering was involved. The
debentures carry an interest rate of 10% payable semi-annually and mature one
year from the date of issuance. The debentures are convertible at the holder's
option at any time prior to maturity at a conversion price of equal to 50% of
the average trading price of Premium Financial's common stock, over 20
consecutive trading days, in the event that the commons stock of Premium
Financial is listed for quotation on an exchange. Upon any conversion to commons
shares, the debenture holder will also receive one warrant for every one common
share issued. Each warrant will entitle the holder to acquire one additional
common share of Premium Financial at the rate of 100% of the average trading
price of Premium Financial's common stock, over 20 consecutive trading days, and
the warrant shall be exercisable within 180 days of issuance. A form of this
convertible debenture is included as Exhibit 4.2.
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On July 2, 2002, in return for $10,000 Premium Financial sold to and
issued to Keith Mathews of Indianapolis, Indiana, an accredited investor,
convertible debentures. Keith Mathews contacted Premium Financial and asked to
invest. Keith Mathews learned of Premium Financial from an acquaintance of
Michael Gooch, the president of Premium Financial. These debentures were issued
in reliance on Section 4(2) of the Securities Act as no public offering was
involved. The debentures carry an interest rate of 10% payable semi-annually and
mature one year from the date of issuance. The debentures are convertible at the
holder's option at any time prior to maturity at a conversion price of equal to
50% of the average trading price of Premium Financial's common stock, over 20
consecutive trading days, in the event that the commons stock of Premium
Financial is listed for quotation on an exchange. Upon any conversion to commons
shares, the debenture holder will also receive one warrant for every one common
share issued. Each warrant will entitle the holder to acquire one additional
common share of Premium Financial at the rate of 100% of the average trading
price of Premium Financial's common stock, over 20 consecutive trading days, and
the warrant shall be exercisable within 180 days of issuance. A form of this
convertible debenture is included as Exhibit 4.2.
ITEM 27. EXHIBITS
EXHIBIT
NUMBER DESCRIPTION REFERENCE
-------------- ------------------------------------------------------------------------------- --------------
2.1 Acquisition Agreement between Registrant and Premium Financial (1)
3.1 Articles of Incorporation of Registrant (2)
3.2 Certificate of Merger and Name Change *
3.3 By-laws of Registrant (2)
4.1 Form of Common Stock Certificate *
4.2 Form of Convertible Debenture *
5.1 Opinion of Kevin M. Sherlock, Esq. as to the legality of securities being *
registered (includes consent)
23.2 Consent of Auditors Robison Hill & Co. *
- ----------
* Filed herewith
(1) Filed with Information Statement on Schedule 14C, dated May 1, 2002.
(2) Filed with Form 10SB 12(g), dated December 17, 1999.
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ITEM 28. UNDERTAKINGS
(a) Rule 415 Offering. The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration
statement:
(i) To include any prospectus required by Section
10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events
which, individually or together, represent a
fundamental change in the information in the
registration statement; and notwithstanding the
forgoing, any increase or decrease in volume of
securities offered (if the total dollar value of
securities offered would not exceed that which was
registered) and any deviation From the low or high
end of the estimated maximum offering range may be
reflected in the form of prospects filed with the
Commission pursuant to Rule 424(b) if, in the
aggregate, the changes in the volume and price
represent no more than a 20% change in the maximum
aggregate offering price set forth in the
"Calculation of Registration Fee" table in the
effective registration statement; and
(iii) To include any material information with respect to
the plan of distribution not previously disclosed in
the registration statement or any material change to
such information in the registration statement;
(2) For determining any liability under the Securities Act of 1933
(the "Securities Act"), to treat each such post-effective
amendment as a new registration statement of the securities
offered, and the offering of the securities at the time to be
the initial bona fide offering.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain
unsold at the termination of the offering.
(b) Indemnification:
Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of
the small business issuer pursuant to the foregoing provisions, or
otherwise, the small business issuer has been advised that in the
opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the small business
issuer of expenses incurred or paid by a director, officer or
controlling person of the small business issuer in the successful
defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the
securities being registered, the small business issuer will, unless in
the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as
expressed in the Securities Act and will be governed by the final
adjudication of such issue.
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SIGNATURES
In accordance with the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form SB-2 and authorized this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in Indianapolis, Indiana, on December 11, 2002.
PREMIUM FINANCIAL SERVICES & LEASING, INC., a Wyoming corporation
/S/ MICHAEL GOOCH
Michael Gooch,
Chairman of the Board and President
(Chief Executive Officer)
/s/ Dennis Klutzke
DENNIS KLUTZKE
Chief Financial Officer and Director
/s/ Dennis Klutzke
DENNIS KLUTZKE
Principal Financial Officer
Pursuant to the requirements of the Securities Act of 1933, the
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.
SIGNATURE AND TITLE DATE
/s/ Michael Gooch December 11, 2002
- ---------------------------------------------------------------
Michael Gooch, Chairman of the Board, President, Principal
Executive Officer and Director
/s/ Glen Gangi December 11, 2002
- ---------------------------------------------------------------
Glen Gangi, Director and Chief Operating Officer
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/s/ Bret Pafford December 11, 20002
- ---------------------------------------------------------------
Bret Pafford, Vice President
/s/ Dennis Klutzke December 11, 2002
- ---------------------------------------------------------------
Dennis Klutzke, Chief Financial Officer and Director
/s/ Kent Abernathy December 11, 2002
- ---------------------------------------------------------------
Kent Abernathy, Director
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