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 November 30, 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
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Commission File number 0-26217
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VANCOUVER'S FINEST COFFEE COMPANY
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(Exact name of registrant as specified in charter)
Nevada 98-0203170
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Box 28567-4050 E. Hastings St.
Vancouver, B.C., Canada V5C 2H9
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(Address of principal executive offices) (Zip Code)
1-604-970-7892
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Registrant's telephone number, including area code
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(Former name, address, and fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), Yes [X] No [ ] and ( ) has been
subject to filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
Class Outstanding as of November 30 1999
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Common Stock, $0.001 per share 13,562,480
INDEX
Page
PART 1. Number
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ITEM 1. Financial Statements (unaudited).................. 3
Balance Sheet as at November 30, 1999 ........... 4
Statement of Operations
For the three months ended November 30, 1999, for
three months ended November 30, 1998 and for
the period from September 15, 1998 (Date of
Incorporation) to November 30, 1999.......... 5
Statement of Changes in Shareholders'Equity
For the period from September 15, 1998 (Date
of Incorporation) to November 30, 1999....... 6
Statement of Cash Flows
For the three months ended November 30, 1999,
for the three months ended November 30, 1998
and for the period from September 15, 1998
(Date of Incorporation)
To November 30, 1999......................... 7
Notes to the Financial Statements............... 8
ITEM 2. Plan of Operations.............................. 11
PART 11 Signatures...................................... 12
2
PART 1 - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheet of VANCOUVER'S FINEST COFFEE COMPANY (a
development stage company) at November 30, 1999 and the statement of operations
and statement of cash flow for the three months ended November 30, 1999, for the
three months ended November 30, 1998 and for the period from September 15, 1998
(date of incorporation) to November 30, 1999 and the statement of stockholders'
equity for the period from September 15, 1998 (date of incorporation) to
November 30, 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 November 30, 1999, are not necessarily
indicative of the results that can be expected for the year ending August 31,
2000.
3
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
BALANCE SHEET
November 30, 1999
(Unaudited - Prepared by Management)
NOVEMBER 30, AUGUST 31,
1999 1999
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ASSETS
CURRENT ASSETS
Bank $ 13,231 $ 20,534
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TOTAL CURRENT ASSETS $ 13,231 $ 20,534
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - related party $ 4,500 $ 4,500
Accounts payable 1,219 2,879
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5,719 7,379
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value, 13,562,480 shares issued and outstanding 13,562 13,562
Capital in excess of par value 20,436 18,186
Deficit accumulated during the development stage (26,486) (18,593)
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Total Stockholders' Equity 7,512 13,155
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$ 13,231 $ 20,534
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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 November 30, 1999, for the three months ended
November 30, 1998 and for period from
September 15, 1998 (Date of Inception) to November 30, 1999
(Unaudited - Prepared by Management)
FOR THE THREE FOR THE THREE FROM INCEPTION
MONTHS ENDED MONTHS ENDED TO
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1999 1998 1999
---- ---- ----
REVENUE $ -- $ -- $ --
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EXPENSES 7,893 -- 26,486
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NET LOSS $ 7,893 $ -- $ 26,486
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NET LOSS PER COMMON SHARE
Basic $ 0.0005 $ 0.000 $ 0.002
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AVERAGE OUTSTANDING SHARES
Basic 13,562,480 -- 7,991,000
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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 November 30, 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 contribution - expenses
Paid by officer -- -- 6,750 --
Net operating loss for the period from
September 15, 1998 to November 30, 1999 -- -- -- (26,486)
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BALANCE NOVEMBER 30, 1999 13,562,480 $ 13,562 $ 20,436 $ (26,486)
========== ========== ========== ==========
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 November 30, 1999, for the three months ended
September 30, 1998 and for the period from
September 15, 1998 (Date of Inception) to November 30, 1999
(Unaudited - Prepared by Management)
FOR THE THREE FOR THE THREE FROM INCEPTION
MONTHS ENDED MONTHS ENDED TO
NOVEMBER 30, NOVEMBER 30, NOVEMBER 30,
1999 1998 1999
---- ---- ----
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (7,893) $ -- $ (18,593)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Changes in accounts payable (1,660) -- 2,879
Capital contribution - expenses 2,250 -- 4,500
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Net Cash from Operations (7,303) -- (11,214)
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CASH FLOWS FROM INVESTING
ACTIVITIES: -- -- --
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from loan - related party -- -- 4,500
Proceeds from issuance of common stock -- -- 27,248
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Net Increase in Cash (7,303) 20,534
Cash at Beginning of Period 20,534 -- --
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CASH AT END OF PERIOD $ 13,231 $ -- $ 20,534
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SCHEDULE OF NONCASH FLOWS FROM OPERATING ACTIVITIES
Capital contributions-expenses paid by officer $ 6,750
========
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
November 30, 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 was organized for the purpose of marketing retail specialty
coffee through the establishment of coffee kiosks however it had not
started operations as at November 30, 1999.
The Company is in the development stage.
Since its inception the Company has completed three Regulation D
offerings of 13,562,480 shares of its capital stock.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
The Company recognizes income and expenses based on the accrual method
of accounting.
Dividend Policy
The Company has not yet adopted a policy regarding payment of
dividends.
Income Taxes
On November 30, 1999, the Company had a net loss carry forward of
$26,486. The tax benefit from the loss carry forward has been fully
offset by a valuation reserve because the use of the future tax benefit
is undeterminable since the Company has no operations. The net
operating loss will expire in 2019.
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.
8
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a
maturity, at the time of purchase, of less than three months, to be
cash equivalents.
Financial Instruments
The carrying amounts of financial instruments, including cash, and
accounts payable, are considered by management to be their estimated
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 estimates and assumptions affect the reported amounts of the
assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported revenues and expenses. Actual results
could vary from the estimates that were assumed in preparing these
financial statements.
3. RELATED PARTY TRANSACTIONS
Related parties acquired 44% of the common shares issued for cash.
4. GOING CONCERN
Management is currently seeking opportunities to establish coffee
kiosks for the retail sales of a specialty coffee. To be successful in
this effort the Company will need additional working capital.
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 funding through loans from officers, loans
from financial institutions, or sale of its common stock, which will
enable the Company to operate for the coming year.
9
VANCOUVER'S FINEST COFFEE COMPANY
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
November 30, 1999
(Unaudited - Prepared by Management)
4. GOING CONCERN - Continued
Continuation of the Company as a going concern for the coming year is
dependent upon receiving the funding needed and there can be no
assurance that the Company will be successful in its efforts to obtain
the needed working capital.
10
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ITEM 2. PLAN OF OPERATIONS
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The Company's management will concentrate its efforts on the development of its
coffee kiosk system through a detailed review of the pricing structure of
building the kiosks, space rentals and other cost to be incurred in finalizing
its concept. To date the management of the Company has been active in
accomplishing these goals but no decision has been made as to what course of
action the Company should take in regards to the installation of the kiosk
system.
Liquidity and Capital Resources
The Company will need additional working capital to finance its concept to a
position whereby it will have a viable operation. Currently the Company has
sufficient funds to meet its current obligations and maintain the Company in
good standing for a period of one year. The costs associated with the
maintenance of the Company are filing fees, transfer agents costs, auditing and
accounting and general office expenses.
Results of Operations
The Company has had no operations during this reporting period.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
VANCOUVER'S FINEST COFFEE COMPANY
(Registrant)
November 16, 1999 /s/ "Kirsten Wilson"
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Date Kirsten Wilson - President and Director
November 16, 1999 /s/ "Ryan Wilson"
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Date David Zosiak - Secretary Treasurer and
Director
12