SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended Commission file number March 31, 2002 33-27042-NY -------------- ----------- FINANCIAL EXPRESS CORPORATION ---------------------------------------------------- (Exact name of registrant as specified in its charter) Nevada 93-0996537 --------------------------- ------------------- (State of other jurisdiction (IRS Employer of incorporation) Identification Number) P. O. Box 974, Rancho Santa Fe, California 92067 -------------------------------------- -------- (Address of principal executive offices) (Zip Code) Registrant's telephone number: (760) 632-0312 Securities registered pursuant to Section 12(b) of the Act: NONE NONE ------------------- --------------------- (Title of Each Class) (Name of Each Exchange on which Registered) Securities registered pursuant to Section 12 (g) of the Act: Common -------------- (Title of Class) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. (1) Yes No X ** (2) Yes X No ----- ----- ----- ----- The number of shares of the Common Stock of the registrant outstanding as of March 31, 2002 was 3,743,900. The aggregate common stock held by non-affiliates on March 31, 2002 was approximately 243,900 shares. Documents incorporated by reference: NONE - ------------------------------------ FINANCIAL EXPRESS CORPORATION ============================= INDEX Page No. -------- Part I. Financial Information ------ --------------------- Item 1. Financial Statements (Unaudited) ------ -------------------------------- Balance Sheets - at March 31, 2002 and December 31, 2001 F-1 Statements of Operations - for the quarters ended March 31, 2002 and March 31, 20001 F-2 Statement of Cash Flows - for the quarters ended March 31, 2002 and March 31, 2001 F-3 Notes to Financial Statements F-4 Item 2. Management's Discussion and ------ Analysis of Financial Cond- ition and Results of Operations 3 Item 3. Quantitative and Qualitative ------ Disclosures About Market Risk 3 Part II. Other Information ------- ----------------- Item 4. Submission of Matters to a ------ Vote of Security Holders 4 Item 5. Other Information 4 ------ Item 6. Exhibits and Reports on Form 8-K 4 ------ 2 FINANCIAL EXPRESS CORPORATION (a development stage enterprise) Balance Sheets March 31, 2002 and December 31, 2001 Assets March 31 December 31 --------- --------- Total assets $ -- $ -- ========= ========= Liabilities and Stockholders' Equity Current liabilities: Accrued professional fees $ 20,003 $ 20,003 Due to officer 2,150 2,150 --------- --------- Total current liabilities 22,153 22,153 Stockholders' equity: Common stock $.001 par value; 25,000,000 shares authorized; 3,743,900 issued and outstanding 3,744 3,744 Additional paid in-capital 408,992 408,992 Losses accumulated during the development stage (434,889) (434,889) --------- --------- Total stockholders' equity (22,153) (22,153) --------- --------- Total liabilities and stockholders' equity $ -- $ -- ========= ========= See accompanying notes F-1 FINANCIAL EXPRESS CORPORATION (a development stage enterprise) STATEMENTS OF OPERATIONS For the quarters ended March 31, 2002 and 2001 2002 2001 --------- --------- Income $ -- $ -- Operating expenses: Amortization -- -- Total operating expenses -- -- --------- --------- Net loss $ -- $ -- ========= ========= Loss per share $ -- $ -- ========= ========= Weighted average shares outstanding -- -- ========= ========= See accompanying notes F-2 FINANCIAL EXPRESS CORPORATION (a development stage enterprise) STATEMENTS OF CASH FLOWS For the quarters ended March, 2002 and 2001 ---- ---- (Unaudited) 2002 2001 --------- --------- Net income (loss) $ -- $ -- Add items to reconcile net loss to working capital used by operations: Amortization -- -- --------- --------- Working capital provided by operations -- -- --------- --------- Net cash flows $ -- $ -- ========= ========= See accompanying notes F-3 FINANCIAL EXPRESS CORPORATION NOTES TO FINANCIAL STATEMENTS March 31, 2002 1. Summary of significant accounting principles -------------------------------------------- General ------- Financial Express Corporation (the "Company") was originally incorporated in the State of Nevada on January 5, 1989, as Harley Equities, Inc. ("Harley"), and was formed to purchase, merge with or acquire any business or assets which management believed had the potential for being profitable. Through a series or transactions, Harley acquired all of the stock of Financial Express Corporation, a Delaware corporation and development stage enterprise organized to develop and commercialize a distinctive nationwide service for processing and clearing checks and other bank transactions. The only assets of the acquired Company consisted of intangible assets comprised of intellectual properties, vendor relationships and customer relationships established during the development of the service. In connection with the transaction, the Company changed its name to Financial Express Corporation. Presentation ------------ The Company's 2002 financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the financial statements, the Company has a working capital deficit, and currently has not been able to bring its product to the marketplace. While the Company expects profits over the long term, the Company is currently seeking additional working capital and equity capital to fund the marketing and further development of the Company's product. The Company is continuing to pursue various investment and merger opportunities in its efforts to reach its investment and business objectives. The Company's continued existence is dependent upon its ability to finance continued product development and marketing programs by the acquisition of additional equity or debt financing, or in the procurement of a suitable merger candidate. While pursuing such opportunities, the Company must continue to operate on the limited resources by the Company's officers. F-4 FINANCIAL EXPRESS CORPORATION NOTES TO FINANCIAL STATEMENTS March 31, 2002 1. Summary of significant accounting principles (continued) -------------------------------------------------------- Intangible assets ----------------- Intangible assets are carried at cost, and are comprised of intellectual properties and vendor and potential customer relationships. Amortization is provided using the straight-line method over five years. 2. Capitalization -------------- In June 1990 the Company sold on a firm commitment basis 16,000 units at $6.00 per unit. Each unit consisted of one share of common stock par value of $.001 and sixteen Redeemable Stock Purchase Warrants each warrant capable of purchasing one share of common stock as follows: Exercise Warrants Total Price Class Per Unit Warrants Expiration date Per Share ----- -------- -------- --------------- --------- A 16 256,000 June 1, 2002 $5.50 B 16 256,000 June 1, 2002 $6.00 F-5 Item 2. Management's Discussion and Analysis of Financial Condition and - ------ --------------------------------------------------------------- Results of Operations --------------------- The Company's had no transactions during the current quarter and year to date for this year or the prior year as the company had no operating activities. Therefore there is no change between this year and last year. Management is pursuing various alternatives in an attempt to solve its liquidity problems, such as the sale of assets and the possible acquisition of additional equity financing. Item 3. Quantitative and Qualitative Disclosures about Market Risk - ------ ----------------------------------------------------------- We have no material changes to the disclosure on this matter made in our report on form 10-K for the year ended December 31, 2001. 3 PART II Other Information. - ------- ----------------- Item 4. Submission of Matters to a Vote of Security Holders. - ------ --------------------------------------------------- None Item 5. Other Information. - ------ ----------------- Not applicable Item 6. Exhibits and Reports on Form 8-K - ------ -------------------------------- None SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized FINANCIAL EXPRESS CORPORATION By: /s/ Frank Baldwin Date: April 20, 2002 ------------------------------- -------------- Frank Baldwin Secretary and director 4 CERTIFICATIONS I, Frank Baldwin, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Financial Express Corporation; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date 4/20/02 /s/ Frank Baldwin ------------ ------------------------------ Frank Baldwin Secretary, Treasurer and Director