UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITES EXCHANGE
ACT OF 1934
For the quarterly period ended May 31, 1999
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from_________________________to_______________________
Commission File number 0-26217
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VANCOUVER'S FINEST COFFEE COMPANY
(Exact name of registrant as specified in charter)
Nevada 98-02031-70
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Box 28567, 4050 East Hastings Street
Vancouver, BC, Canada V5C 2H9
(Address of principal executive offices) (Zip Code)
604-970-7892
Registrant's telephone number, including area code
(Former name, address, and fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), Yes [X] No [ ] and ( ) has been
subject to filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
Class Outstanding as of September 19, 1999
- ----------------------------------- -------------------------------------
Common Stock, $0.001 per share 13,562,480
INDEX
Page
PART 1. Number
ITEM 1. Financial Statements (unaudited).............................. 3
Balance Sheet as at May 31, 1999.............................. 4
Statement of Operations
For the three months ended May 31, 1999 and for
the period from September 15, 1998 (Date of
Incorporation) to May 31, 1999............................... 5
Statement of Changes in Shareholders' Equity
For the period from September 15, 1998 (Date of
Incorporation) to May 31, 1999............................... 6
Statement of Cash Flows
For the three months ended May 31, 1999 and for
the period from September 15, 1998 (Date of
Incorporation) to May 31, 1999................................ 7
Notes to the Financial Statements.............................. 8
ITEM 2. Plan of Operations.............................................10
PART 11 Signatures.....................................................11
2
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying balance sheet of Vancouver's Finest coffee Company (a
development stage company) at May 31, 1999 and the statement of operations and
statement of cash flow for the three months ended May 31, 1999 and for the
period from September 15, 1998 (date of incorporation) to May 31, 1999 and the
statement of stockholders' equity for the period from September 15, 1998 (date
of incorporation) to May 31, 1999 have been prepared by the Company's management
and they do not include all information and notes to the financial statements
necessary for a complete presentation of the financial position, results of
operations, cash flows, and stockholders' equity in conformity with generally
accepted accounting principles. In the opinion of management, all adjustments
considered necessary for a fair presentation of the results of operations and
financial position have been included and all such adjustments are of a normal
recurring nature.
Operating results for the quarter ended May 31, 1999, are not necessarily
indicative of the results that can be expected for the year ending August 31,
1999.
3
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
BALANCE SHEET
May 31, 1999
(Unaudited - Prepared by Management)
ASSETS
CURRENT ASSETS
Bank $ 26,801
------
$ 26,801
======
LIABILITIES
Accounts payable and accrued liabilities $ 970
Due to a director 4,500
-----
5,470
-----
STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value, 13,562,480 shares issued and outstanding 13,562
Capital in excess of par value 16,836
Deficit accumulated during the development stage (9,067)
------
Total Stockholders' Equity 21,331
------
$ 26,801
======
The accompanying notes are an integral part of these
unaudited financial statements.
4
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
STATEMENT OF OPERATIONS
For the three months ended May 31, 1999 and for period from
September 15, 1998 (Date of Inception) to May 31, 1999
(Unaudited - Prepared by Management)
For the Three From Inception
Months Ended To
May 31, 1999 May 31, 1999
------------ --------------
SALES $ - $ -
------------- -----------
GENERAL AND ADMINISTRATIVE EXPENSES:
Accounting and audit 2,550 2,550
Bank charges and interest - 123
Incorporation costs written off - 670
Management fees 900 2,100
Office expenses 219 219
Rent 300 700
Telephone 150 350
Transfer agent's fees 1,140 2,355
----- -----
NET LOSS $ 5,259 $ 9,067
========= ======
NET LOSS PER COMMON SHARE
Basic $ 0.0003 $ 0.002
========= ======
AVERAGE OUTSTANDING SHARES
Basic 13,562,480 6,012,058
========== =========
The accompanying notes are an integral part of these
unaudited financial statements.
5
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the period from September 15, 1998 (Date of Inception)
to May 31, 1999
(Unaudited - Prepared by Management)
Capital in
Common Stock Excess of Accumulated
Shares Amount Par Value Deficit
------ --------- ---------- ---------
Balance September 15, 1998 (date of inception) - $ - $ - $ -
Issuance of common shares for cash at
$0.001 - February 5, 1999 6,000,000 6,000 - -
Issuance of common shares for cash at
$0.002 - February 7, 1999 7,500,000 7,500 7,500 -
Issuance of common shares for cash at
$0.10 - February 23, 1999 62,480 62 6,186 -
Capital contributions - expenses 3,150
Net operating loss for the period from
September 15, 1998 to May 31, 1999 - - - (9,067)
---------- ---------- --------- ----------
Balance May 31, 1999 13,562,480 $ 13,562 $ 16,836 $ (9,067)
========== =========== ========= ==========
The accompanying notes are an integral part of these
unaudited financial statements.
6
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
STATEMENT OF CASH FLOWS
For the three months ended May 31, 1999 and for the period from
September 15, 1998 (Date of Inception) to May 31, 1999
(Unaudited - Prepared by Management)
For the Three From Inception
Months Ended To
May 31, 1999 May 31, 1999
------------ ------------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (5,259) $ (9,067)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in accounts payable 301 970
Increase in due to a director - 4,500
-------- --------
Net Cash from Operations (4,958) (3,597)
--------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common stock - 27,248
Capital contributions 1,350 3,150
-------- ------
1,350 30,398
-------- ------
Net Increase in Cash (3,608)
26,801
Cash at Beginning of Period 30,409 -
-------- ------
CASH AT END OF PERIOD $ 26,801 $ 26,801
======== ========
The accompanying notes are an integral part of these
unaudited financial statements.
7
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
May 31, 1999
(Unaudited - Prepared by Management)
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on
September 15, 1998 with the authorized common shares of 200,000,000
shares at $0.001 par value.
The Company is in the development stage.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNTING METHODS
The Company recognizes income and expenses based on the accrual method
of accounting.
DIVIDEND POLICY
The Company has not yet adopted a policy regarding payment of
dividends.
INCOME TAXES
The Company has elected a fiscal year ending August 31, 1999 and has
not completed an operating period and therefore has not filed an income
tax return, however, the Company may incur an operating loss for the
period ending August 31, 1999 which will be available for carryover and
applied against future taxable income resulting in a tax benefit. The
potential tax benefit from any loss carry forward has been fully offset
by a valuation reserve because the use of any future tax benefit is
doubtful since the Company has no operations.
Any loss carry forward from the year ended August 31, 1999 will expire
in the year 2012.
LOSS PER SHARE
Loss per share amounts are computed based on the weighted average
number of shares actually outstanding using the treasury stock method
in accordance with FABS Statement No. 128.
CASH AND CASH EQUIVALENTS
The Company considers all highly liquid instruments purchased with a
maturity, at the time of purchase, of less than three months, to be
cash equivalents.
8
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
May 31, 1999
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
FINANCIAL INSTRUMENTS
The carrying amounts of financial instruments, including cash, prepaid
expenses and deferred offering costs are considered by management to be
their standard fair values. These values are not necessarily indicative
of the amounts that the Company could realize in a current market
exchange.
ESTIMATES AND ASSUMPTIONS
Management uses estimates and assumptions in preparing financial
statements in accordance with generally accepted accounting principles.
Those estimated and assumption affect the reported amounts of the
assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported revenues and expenses. Actual results
could vary from the estimates that were assumed in preparing these
financial statements.
3. RELATED PARTY TRANSACTIONS
Related parties acquired 44% of the common stock issued.
4. GOING CONCERN
Continuation of the Company as a going concern is dependent upon
obtaining additional working capital and the management of the Company
has developed a strategy, which it believes will accomplish this
objective through additional equity funding, and long term financing,
which will enable the Company to operate in the future.
9
ITEM 2. PLAN OF OPERATIONS
The Company's management is in the process of reviewing the costing of
kiosk systems and determining the profitability of various locations that
are under consideration for installation of the kiosks.
LIQUIDITY AND CAPITAL RESOURCES
The Company will need additional working capital to finance its activities
on the Semple mineral claims.
RESULTS OF OPERATIONS
The Company has had no operations during this reporting period.
10
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
VANCOUVER'S FINEST COFFEE COMPANY
(Registrant)
September 19, 1999 /c/ "Kirsten Wilson"
-----------------------
Date Kirsten Mide Wilson
President and Director
11