QUARTERLY REPORT FOR THE QTR ENDED 03/31/2002
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly report under Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 2002
Commission File number: 000-33123
VISIONS IN GLASS, INC.
(Name of Small Business Issuer in its Charter)
1198 Via Fresno, Cathedral City, CA 92234
(Address of Principal Executive Offices including zip code)
(760) 324-8517
(Issuer's Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year,
if changed since last report)
Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]
There were 5,293,000 shares of Common stock outstanding as of March 31, 2002.
VISIONS IN GLASS, INC.
(A Development Stage Company)
TABLE OF CONTENTS
Page No.
--------
Independent Accountant's Report 1
Balance Sheets 2
Statement of Operations 3
Statement of Changes in Stockholders' Equity 4
Statement of Cash Flows 5
Notes to Financial Statements 6-8
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[LETTERHEAD OF ARMANDO C. IBARRA]
INDEPENDENT ACCOUNTANT'S REPORT
We have reviewed the accompanying balance sheets of Visions In Glass, Inc. (A
Development Stage Company) as of March 31, 2002 and December 31, 2001, and the
related statements of operations, changes in stockholders' equity, and cash
flows for the three months ended March 31, 2002, in accordance with Statements
on Standards for Accounting Review Services issued by the American Institute of
Certified Public Accountants. All information included in these financial
statements is the representation of the management of Visions In Glass, Inc.
A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any modifications that should be made
to the accompanying financial statements in order for them to be in conformity
with generally accepted accounting principles.
/s/ Armando C. Ibarra
- ----------------------------------
Armando C. Ibarra, CPA-APC
May 1, 2002
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1. FINANCIAL STATEMENTS
VISIONS IN GLASS, INC.
(A Development Stage Company)
Balance Sheets
- --------------------------------------------------------------------------------
ASSETS
THREE MONTHS
ENDED YEAR ENDED
MARCH 31, DECEMBER 31,
2002 2001
--------- ---------
CURRENT ASSETS
Cash $ 6,828 $ 8,813
--------- ---------
TOTAL CURRENT ASSETS 6,828 8,813
--------- ---------
TOTAL ASSETS $ 6,828 $ 8,813
========= =========
LIABILITIES & STOCKHOLDERS' EQUITY
TOTAL LIABILITIES 0 0
STOCKHOLDERS' EQUITY
Common stock ($.0001 par value, 80,000,000
shares authorized; 5,293,000 shares issued
and outstanding as of March 31, 2002 and
December 31, 2001 respectively) 529 529
Additional paid-in capital 9,071 9,071
Deficit accumulated during development stage (2,772) (787)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 6,828 8,813
--------- ---------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 6,828 $ 8,813
========= =========
See Notes to Financial Statements
2
VISIONS IN GLASS, INC.
(A Development Stage Company)
Statements of Operations
- --------------------------------------------------------------------------------
JUNE 23, 1999
THREE MONTHS THREE MONTHS (INCEPTION)
ENDED ENDED THROUGH
MARCH 31, MARCH 31, MARCH 31,
2002 2001 2002
----------- ----------- -----------
REVENUES
Revenues $ 0 $ 6,039 $ 6,749
----------- ----------- -----------
TOTAL REVENUES 0 6,039 6,749
GENERAL & ADMINISTRATIVE EXPENSES 1,985 226 9,521
----------- ----------- -----------
NET INCOME / (LOSS) $ (1,985) $ 5,813 $ (2,772)
=========== =========== ===========
BASIC EARNINGS / (LOSS) PER SHARE $ 0.00 $ 0.00
=========== ===========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 5,293,000 5,293,000
=========== ===========
See Notes to Financial Statements
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VISIONS IN GLASS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FROM JUNE 23, 1999 (INCEPTION) THROUGH MARCH 31, 2002
- --------------------------------------------------------------------------------
DEFICIT
ACCUMULATED
COMMON ADDITIONAL DURING
COMMON STOCK PAID-IN DEVELOPMENT
STOCK AMOUNT CAPITAL STAGE TOTAL
--------- --------- --------- --------- ---------
Beginning balance, June 23, 1999 0 $ 0 $ 0 $ 0 $ 0
Stock issued for cash on June 24,
1999 @ $0.0002 per share 5,000,000 500 500 1,000
Stock issued for cash on June 24,
1999 @ $0.01 per share 230,000 23 2,277 2,300
Net loss, December 31, 1999 0 0
--------- --------- --------- --------- ---------
BALANCE, DECEMBER 31, 1999 5,230,000 523 2,777 0 3,300
========= ========= ========= ========= =========
Stock issued for cash on February 7,
2000 @ $0.10 per share 63,000 6 6,294 6,300
Net loss, December 31, 2000 (2,972) (2,972)
--------- --------- --------- --------- ---------
BALANCE, DECEMBER 31, 2000 5,293,000 529 9,071 (2,972) 6,628
========= ========= ========= ========= =========
Net income, December 31, 2001 2,185 2,185
--------- --------- --------- --------- ---------
BALANCE, DECEMBER 31, 2001 5,293,000 $ 529 $ 9,071 $ (787) $ 8,813
========= ========= ========= ========= =========
Net income, March 31, 2002 (1,985) (1,985)
--------- --------- --------- --------- ---------
BALANCE, MARCH 31, 2002 5,293,000 $ 529 $ 9,071 $ (2,772) $ 6,828
========= ========= ========= ========= =========
See Notes to Financial Statements
4
VISIONS IN GLASS, INC.
(A Development Stage Company)
Statements of Cash Flows
- --------------------------------------------------------------------------------
JUNE 23, 1999
THREE MONTHS THREE MONTHS (INCEPTION)
ENDED ENDED THROUGH
MARCH 31, MARCH 31, MARCH 31,
2002 2001 2002
--------- --------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income / (loss) $ (1,985) $ 5,813 $ (2,772)
--------- --------- ---------
NET CASH PROVIDED / (USED) BY OPERATING ACTIVITIES (1,985) 5,813 (2,772)
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock 0 0 529
Additional paid-in capital 0 0 9,071
--------- --------- ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES 0 0 9,600
--------- --------- ---------
NET INCREASE / (DECREASE) IN CASH (1,985) 5,813 6,828
CASH AT BEGINNING OF PERIOD 8,813 6,628 0
--------- --------- ---------
CASH AT END OF PERIOD $ 6,828 $ 12,441 $ 6,828
========= ========= =========
See Notes to Financial Statements
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VISIONS IN GLASS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MARCH 31, 2002
NOTE 1. HISTORY AND ORGANIZATION OF THE COMPANY
The Company was organized June 23, 1999, under the laws of the state of
Delaware, as Visions in Glass, Inc. The Company has minimal operations and in
accordance with SFAS # 7, the Company is considered a development stage company.
On June 24, 1999, the Company issued 5,000,000 shares common stock for cash
valued at $ 0.0002 per share
On June 24, 1999, the Company issued 230,000 shares of common stock for cash
valued at $ 0.01 per share.
On February 7, 2000, the Company issued 63,000 shares of common stock for cash
valued at $ 0.10 per share.
As of March 31, 2002 there were 5,293,000 shares of common stock outstanding.
NOTE 2. ACCOUNTING POLICIES AND PROCEDURES
A. BASIS OF ACCOUNTING
The Company uses the accrual method of accounting.
B. BASIC LOSS PER SHARE
In February 1997, the FASB issued SFAS No. 128, "Earnings Per Share", which
specifies the computation, presentation and disclosure requirements for earnings
(loss) per share for entities with publicly held common stock. SFAS No. 128
supersedes the provisions of APB No. 15, and requires the presentation of basic
earnings (loss) per share and diluted earnings (loss) per share. The Company has
adopted the provisions of SFAS No. 128 effective June 23, 1999 (inception).
Basic net loss per share amounts is computed by dividing the net income by the
weighted average number of common shares outstanding. Diluted earnings per share
are the same as basic earnings per share due to the lack of dilutive items in
the Company.
C. CASH EQUIVALENTS
The Company considers all highly liquid investments with a maturity of three
months or less when purchased to be cash equivalents.
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VISIONS IN GLASS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MARCH 31, 2002
NOTE 2. ACCOUNTING POLICIES AND PROCEDURES (CONTINUED)
D. USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires 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.
E. INCOME TAXES
The Company accounts for income taxes using the asset and liability method.
Under the asset and liability method, deferred income taxes are recognized for
the tax consequences of "temporary differences" by applying enacted statutory
tax rates applicable to future years to differences between the financial
statement carrying amounts and the tax bases of existing assets and liabilities.
Deferred tax assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion or all of the deferred
tax assets will not be realized.
NOTE 3. WARRANTS AND OPTIONS
There are no warrants or options outstanding to acquire any additional shares of
common stock or preferred stock.
NOTE 4. GOING CONCERN
The Company's financial statements are prepared using the generally accepted
accounting principles applicable to a going concern, which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. However, the Company has minimal current source of revenue. Without
realization of additional capital, it would be unlikely for the company to
continue as a going concern. It is management's plan to seek additional capital
through the sale of its securities through private placements.
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VISIONS IN GLASS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MARCH 31, 2002
NOTE 5. INCOME TAXES
AS OF MARCH 31, AS OF DECEMBER 31,
2002 2001
--------------- ------------------
Deferred tax assets/(liability): $ 416 $ 118
Income tax expense: -0- -0-
------- -------
Valuation allowance (416) (118)
------- -------
Net deferred tax assets $ -0- $ -0-
======= =======
Realization of deferred tax assets is dependent upon sufficient future taxable
income during the period that deductible temporary differences and carryforwards
are expected to be available to reduce taxable income. As the achievement of
required future taxable income is uncertain, the Company recorded a valuation
allowance.
NOTE 6. SCHEDULE OF NET OPERATING LOSSES
1999 Net Operating Income $ 0
2000 Net Operating (Loss) (2,972)
2001 Net Operating Income 2,185
2002 Net Operating (Loss) 1st quarter (1,985)
-------
Net Operating Loss $(2,772)
=======
As of March 31, 2002, the Company has a net operating loss carryforward of
approximately $ 2,772, which will expire 20 years from the date the loss was
incurred.
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2. CERTAIN FORWARD LOOKING STATEMENTS
Information provided in this Quarterly report on Form 10QSB may contain
forward-looking statements within the meaning of Section 21E or Securities
Exchange Act of 1934 that are not historical facts and information. These
statements represent the Company's expectations or beliefs, including, but not
limited to, statements concerning future and operating results, statements
concerning industry performance, the Company's operations, economic performance,
financial conditions, margins and growth in sales of the Company's products,
capital expenditures, financing needs, as well as assumptions related to the
forgoing. For this purpose, any statements contained in this Quarterly Report
that are not statement of historical fact may be deemed to be forward-looking
statements. These forward-looking statements are based on current expectations
and involve various risks and uncertainties that could cause actual results and
outcomes for future periods to differ materially from any forward-looking
statement or views expressed herein. The Company's financial performance and the
forward-looking statements contained herein are further qualified by other risks
including those set forth from time to time in the documents filed by the
Company with the Securities and Exchange Commission, including the Company's
most recent Form 10SB.
3. CONDITION AND RESULTS OF OPERATIONS.
THREE MONTHS ENDED MARCH 31, 2002.
Net sales were $0 for the quarters ended March 31, 2002 and $6,039 for
2001.
Net Loss was ($1985) for the quarter ended March 31, 2002 and $5813 for the
same quarter in 2001.
The Company continues to study the stained glass market to develop
additional variations and markets for its products. In addition to the
custom-designed leaded glass artifacts featuring various Holocaust images, the
Company is also considering production of low-cost gift items for children. The
pricing of the products will depend on the sizes selected for production.
Details are still being considered and there can be no assurance that the price
goals can be met.
The Company does not anticipate any material increase in operating expenses
until such time as additional capital can be raised and the Company proceeds
with the further development of its business plan. Management believes that the
Company must be successful in raising equity or debt financing sufficient to
meet its working capital requirements to support development of its product
sales and marketing.
4. ANALYSIS OF FINANCIAL CONDITION
As of March 31, 2002, the Company had working capital of $6828. Visions In
Glass may raise additional capital either through debt or equity. No assurances
can be given that such efforts will be successful. The need for substantial
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additional working capital in the near future would require the company to
secure additional financing to implement further development plans. No assurance
can be given that the Company will have financing available, if required, or if
available, will be available on terms and conditions satisfactory to management.
As part of the Company's financial plan to raise additional working
capital, the Company may offer sales of its Common Shares to qualified investors
in transactions that are exempt from registration under the 1933 Act. The sales
of Common Shares may be higher or lower than the price of the common Shares in
this Registration Statement. Such prices will be considered reasonable given the
existing circumstances of the Company at time of sale.
5. RISK FACTORS
LIMITED HISTORY AND OPERATIONS
Visions in Glass is a start up company and subject to all the risks of a
new business. The Company was incorporated under the laws of the State of
Delaware on June 23, 1999 and has had limited operations to date. Visions In
Glass operates in a business field where there are competing companies that are
much larger and because other established stained glass companies will likely
have larger amounts of capital than Visions In Glass, the Company may find it
very difficult to acquire sufficient funds to compete and make a profit. The
likelihood of the success of the Company must be considered in light of the
problems and expenses that are frequently encountered in connection with the
operation of a new business and the competitive environment in which the Company
will be operating.
6. NEED FOR ADDITIONAL WORKING CAPITAL - CONTINUATION OF GOING CONCERN NOT
ASSURED
As of March 31, 2002, the Company had working capital of $6828. Without
additional capital the original investor funds may be at risk. The Company
estimates sufficient funds for approximately six months of current operations.
The Company may need to raise additional capital and there is no assurance that
the Company will be able to raise sufficient capital for continuing needs. While
the Company intends to sell its products through the Internet, there can be no
assurance that the Company will be successful in obtaining its objectives.
7. MARKET STUDY BY THE COMPANY
The evaluation of the Company's products has been done solely by its
officers and directors. The investor is at risk if the company's studies have
overestimated the product's marketability.
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8. LIMITED HISTORY OF OPERATIONS / OPERATING LOSSES IN THE FORESEEABLE FUTURE
The Company was organized on June 23, 1999 and has had limited operations
to date. Even though the Company has limited operating funds, the Company
expects to incur operating losses in the foreseeable future. For example, we
expect to hire additional employees and lease space as needed. The Company may
increase it's operating expenses to include purchasing hardware and software for
its corporate offices. If any of these expenses are not accompanied by increased
revenue, the Company's losses will be more than expected.
9. COMPETITION
Competition in the stained glass industry may be expected to grow.
10. DEPENDENCE ON MANAGEMENT
The Company will be heavily dependent on the services and experience of its
officers. The loss of service of any officer could disrupt the progress of the
Company's business.
11. LEGAL PROCEEDING
None
12. CHANGES IN SECURITIES
None
13. DEFAULTS UPON SENIOR SECURITIES
None
14. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
15. OTHER INFORMATION
None
16. EXHIBITS AND REPORTS ON FORM 8-K
None
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SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the Company has duly caused this disclosure statement to be signed on
its behalf by the undersigned, hereunto duly authorized.
VISIONS IN GLASS, INC.
Date: 05/09/2002 /s/ Irving Munowitz
--------------------------------
Irving Munowitz
President
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