UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2004
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ____________ to____________
Commission File No. 000-49671
BEAR LAKE RECREATION, INC.
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(Exact name of small business issuer as specified in its charter)
NEVADA 87-0620495
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(State or other jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
4685 S. Highland Drive #202
Salt Lake City, Utah 84117
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(Address of principal executive offices)
(801) 278-9424
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(Issuer's telephone number)
N/A
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(Former name, former address and former fiscal year,
if changed since last report)
Check whether the Company (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 Company was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes [X]
No [ ] Yes [X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date:
September 30, 2004
2,874,200 shares
Transitional Small Business Disclosure Format (Check one): Yes X No
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
BEAR LAKE RECREATION, INC.
[A Development Stage Company]
Balance Sheet
September 30, 2004
ASSETS
Current Assets:
Cash in bank $ 76
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Total Current Assets 76
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Total Assets $ 76
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LIABILITIES AND STOCKHOLDERS' DEFICIT
Liabilities:
Current Liabilities:
Accounts payable $ 345
Accounts payable-related party 13,523
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Total Current Liabilities 13,868
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Total Liabilities 13,868
Stockholders' Deficit:
Common Stock -- 50,000,000 shares authorized
having a par value of $.001 per share;
2,874,200 shares issued and outstanding 2,874
Additional Paid-in Capital 79,704
Deficit accumulated during the development stage (96,370)
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Total Stockholders' Deficit (13,792)
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Total Liabilities and Stockholders' Deficit 76
==========
See accompanying notes to financial statements
BEAR LAKE RECREATION, INC.
[A Development Stage Company]
Statements of Operations
For the three month periods ended September 30, 2002 and 2003, and for the
Period from Inception [October 22, 1998] through September 30, 2004
Three Three October 22,
Months Months 1998
Ended Ended through
9/30/04 9/30/03 9/30/04
Sales $ 0 $ 0 1,396
Cost of Sales 0 0 707
------- -------- ----------
Gross Profit 0 0 689
General and administrative expenses 4,318 0 77,348
------- -------- ----------
Net income/(loss) from operations (4,318) 0 (76,659)
Other Income(Expense)
Write off of inventory - - (10,645)
Loss on sale of assets - - (9,066)
------- -------- -----------
Total Other Income(Expense) - - (19,711)
Net income/(loss) before taxes (4,318) 0 (96,370)
Income taxes 0 0 -
-------- -------- ------------
Net income/(loss) $ (4,318) $ 0 $ (96,370)
======== ======== ============
Income/(Loss) Per Share-Basic and Diluted (0.01) 0.00 (0.07)
======== ======== ============
Weighted Average Shares Outstanding-
Basic and Diluted 1,407,167 1,374,200 1,340,103
========= ========= ============
See accompanying notes to financial statements
BEAR LAKE RECREATION, INC.
[A Development Stage Company]
Statements of Cash Flows
For the three month periods ended September 30, 2004 and 2003, and for the
Period from Inception [October 22, 1998] through September 30, 2004
Three Three October
Months Months 22, 1998
Ended Ended through
9/30/04 9/30/03 9/30/04
Cash Flows from Operating Activities
Net Loss $(4,318) $ 0 $ (96,370)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation and amortization - - 4,799
Loss on disposal of equipment - - 9,066
Write off of related party receivable - - 1,000
Write off of Website development costs - - 8,877
Write off of inventory - - 10,645
Decrease (increase) in inventory - - (10,645)
Increase in accounts payable (1,406) - 345
Increase in accounts payable-related party 4,224 - 13,523
Stock issued for services received 1,500 - 1,500
Increase (decrease) in bank overdraft - - -
------- ----------- ----------
Net Cash provided by (used in)
Operating activities - - (57,260)
Cash Flows from Investing Activities
Purchase of property and equipment - - (12,433)
Website development costs - - (10,309)
------- ----------- ----------
Net Cash used in Investing activities - - (22,742)
Cash Flows from Financing Activities
Stock offering costs - - (6,072)
Related-party receivable - - (1,000)
Proceeds from the issuance of common stock - - 87,150
------- ----------- ----------
Net Cash provided by Financing activities - - 80,078
Net increase (decrease) in Cash 0 0 76
Beginning Cash Balance 76 160 -
------- ----------- ----------
Ending Cash Balance $ 76 $ 160 $ 76
======= =========== ==========
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for interest $ 0 $ 0 $ 0
Cash paid during the year for income taxes 0 0 0
See accompanying notes to financial statements
BEAR LAKE RECREATION, INC.
[A Development Stage Company]
Notes to Financial Statements
September 30, 2004
Note 1 Organization and Summary of Significant Accounting Policies-
(continued)
(e) Inventories
Inventories have subsequently been written off.
(f) Use of Estimates in Preparation of Financial Statements
The financial statements contained herein have been prepared by
management and are unaudited. It is believed that these financial
statements conform with U. S. 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.
Note 2 Going Concern
The Company is a development stage enterprise, has suffered losses
from operations and has had negative cash flows from operating
activities during the period from inception [October 22, 1998]
through this reporting period. Realization of a major portion of
the assets is dependent upon the Company's ability to meet its
future financing requirements, and the success of future
operations. These factors raise substantial doubt about the
Company's ability to continue as a going concern. The financial
statements do not include any adjustment that might result from
the outcome of this uncertainty. Currently, managements plans
include finding a well-capitalized merger candidate to recommence
its operations.
Note 3 Common Stock
On October 25, 1998, the Company issued 1,000,000 shares to an
officer of the Company for cash considerations of $1,000 or $.001
per share.
On March 4, 1999, the Company received $45,000 cash considerations
for the issuance of 45,000 shares of common stock at a price of
$1.00 per share.
In July and August 2000, the Company issued 329,200 shares of its
common stock for $41,150 or $.125 per share.
On September 28, 2004, the Company issued 1,500,000 shares of its
common stock at par value to its officers and directors for
services rendered.
BEAR LAKE RECREATION, INC.
[A Development Stage Company]
Notes to Financial Statements
Note 4 Related Party Transactions
The Company has received advances from an investor in order to
fund operating expenses. The loan is interest free, unsecured
and payable on demand. The balance of the loan as of September 30,
2004 is $13,523.
Note 5 Subsequent Events
In August 2003, and again in March 2004 the Company's sole
officer and director resigned from the Company, and in seriatim
appointed a new officer(s) and member(s) of the board of
directors.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
Plan of Operation.
- ------------------
Our Company has not engaged in any material operations during the year
end June 30, 2004 or since 2002.
Our Company's plan of operation for the next 12 months is to:(i)
consider guidelines of industries in which our Company may have an interest;
(ii) adopt a business plan regarding engaging in business in any selected
industry; and (iii) to commence such operations through funding and/or the
acquisition of a "going concern" engaged in any industry selected.
Our Company's only foreseeable cash requirements during the next 12
months will relate to maintaining our Company in good standing in the State
of Nevada, as well as legal and accounting fees. Management does not
anticipate that our Company will have to raise additional funds during the
next 12 months.
Results of Operations.
- ----------------------
In the quarterly period ended September 30, 2004, we had sales of
$0, compared to the quarterly period ended September 30, 2003, with sales of
$0. General and administrative expenses were $4,318 for the September 30,
2004 period compared to $0 for the September 30, 2003 period. We had net loss
of $4,318 for the September 30, 2004 period compared to a net income of $0 for
the September 30, 2003 period.
Liquidity and Capital Resources.
- --------------------------------
Our total assets as of September 30, 2003, were $76. We do depend
on a shareholder being able to loan us money to fund our attempt to get our
Company current in its filings and if this shareholder is not able to loan us
the money our ability to continue in our attempt to get our Company current
would be substantially reduced.
Forward-Looking Statements.
- ---------------------------
The foregoing discussion contains forward-looking statements that
discuss, among other things, future expectations and projections regarding
future developments, operations and financial conditions. All forward-looking
statements are based on management's existing beliefs about present and future
events outside of management's control and on assumptions that may prove to be
incorrect. If any underlying assumptions prove incorrect, Birch Financial's
actual results may vary materially from those anticipated, estimated,
projected or intended.
Item 3. Controls and Procedures.
As of the end of the period covered by this Quarterly Report, we carried
out an evaluation, under the supervision and with the participation of our
President and Secretary/Treasurer, of the effectiveness of our disclosure
controls and procedures. Based on this evaluation, our President and
Secretary/Treasurer concluded that our disclosure controls and procedures are
effective in timely alerting them to material information required to be
included in our periodic Securities and Exchange Commission reports. It
should be noted that the design of any system of controls is based in part
upon certain assumptions about the likelihood of future events, and there can
be no assurance that any design will succeed in achieving its stated goals
under all potential future conditions, regardless of how remote. In addition,
we reviewed our internal controls over financial reporting, and there have
been no changes in our internal controls or in other factors in the last
fiscal quarter that has materially affected or is reasonably likely to
materially affect our internal control over financial reporting.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None; not applicable.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
We issued on September 28, 2004, 1,500,000 shares of our common stock at
par value to our officers and directors for services rendered.
NAME OF BENEFICIAL OWNER NUMBER OF SHARES CONSIDERATION
- ------------------------------------ ---------------- -----------------
Todd Albiston, SEC / TR 500,000 Services at $.001
Wayne Bassham, PRES 500,000 Services at $.001
Derrick Albiston, VP 500,000 Services at $.001
Item 3. Defaults Upon Senior Securities.
None; not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
None; not applicable.
Item 5. Other Information.
None; not applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
31.1 302 Certification of Wayne Bassham
31.2 302 Certification of Todd Albiston
32 906 Certification
(b) Reports on Form 8-K.
None.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant has caused this Quarterly Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BEAR LAKE RECREATION, INC.
Date: 11/5/2004 By:/s/Wayne Bassham
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Wayne Bassham
President and Director
Date: 11/5/2004 By:/s/Todd Albiston
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Todd Albiston,
Secretary/Treasurer and Director