U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: March 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 33-25779
BUD FINANCIAL GROUP, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 84-1100609
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
311 South State Street, Suite 440, Salt lake City, Utah 84111
(Address of principal executive offices)
(801) 531-0066
(Issuer's telephone number, including area code)
Check whether the issuer (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 issuer was required
to file such report(s), and (2) has been subject to such filing requirements
for the past 90 days.
YES [X] NO [ ]
The number of $.001 par value common shares outstanding at April 27, 2000,
2,000,000.
Transitiional Small Business Disclosure Format (check one):
YES [ ] NO [X]
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BUD FINANCIAL GROUP, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(UNAUDITED)
AND
YEAR ENDED DECEMBER 31, 1999
WITH
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
Board of Directors and Stockholders
BUD FINANCIAL GROUP, INC.
I have reviewed the accompanying balance sheet of Bud Financial Group,
Inc. as of March 31, 2000, and the related statements of operations, and
cash flows for the three months ended March 31, 2000 and 1999. These
financial statements are the responsibility of the management of Bud
Financial Group, Inc..
I conducted my review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial statements consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted 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, I do
not express such an opinion.
Based on my review, I am not aware of any material modifications that
should be made to the accompanying financial statements in order for
them to be in conformity with generally accepted accounting principles.
Salt Lake City, Utah
April 25, 2000
BUD FINANCIAL GROUP, INC.
(A Development Stage Company)
BALANCE SHEETS
ASSETS
March 31, December 31,
2000 1999
(Unaudited)
CURRENT ASSETS:
Cash $7,066 $8,507
_________ ____________
Total Current Assets 7,066 8,507
_________ ____________
TOTAL ASSETS $7,066 $8,507
========= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $0 $400
_________ ____________
Total Current Liabilities 0 400
_________ ____________
STOCKHOLDERS' EQUITY:
Preferred stock; Series A $.0001 par value,
10,000,000 shares authorized, discontinued
in 1999, no shares issued and outstanding
in 1998 0 0
Preferred stock, $.001 par value, 1,000,000 shares
authorized; no shares issued and outstanding 0 0
Common stock; $.0001 par value, 500,000,000 shares
authorized, 10,000,000 and 10,000,000 shares
issued and outstanding respectively 2,000 2,000
Capital in excess of par value 83,360 80,360
Earnings(deficit) accumulated during the (78,294) (74,253)
development stage _________ ____________
Total Stockholders' Equity 7,066 8,107
_________ ____________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $7,066 $8,507
========= ============
See Notes to Financial Statements.
BUD FINANCIAL GROUP, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Cumulative
Months Ended During the
March 31, Development
2000 1999 Stage
REVENUE
Interest income $41 $40 $5,280
Gain on sale of marketable securities 0 0 21,068
Other income 0 0 6,876
________________________________
Total revenues 41 40 33,224
________________________________
EXPENSES
Amortization 0 0 500
Consulting 0 0 10,800
Interest 0 0 2,085
Miscellaneous 0 0 125
Offering expenses 0 0 12,000
Office expenses 360 275 5,167
Rent 0 0 2,781
Research fees 0 0 300
Professional services 3,182 3,650 60,879
Stock transfer fees 540 272 5,587
Travel 0 0 1,571
Bad debt expense 0 0 26,250
________________________________
Total expenses 4,082 4,197 128,045
________________________________
INCOME (LOSS) BEFORE EXTRA-
ORDINARY ITEM (4,041) (4,157) (94,821)
Extraordinary Item - gain on
extinguishment of debt (net of
income tax of $0) 0 0 16,527
________________________________
NET INCOME (LOSS) BEFORE TAXES (4,041) (4,157) (78,294)
PROVISION FOR INCOME TAXES 0 0 0
________________________________
NET INCOME (LOSS) $(4,041) $(4,157) $(78,294)
================================
EARNINGS (LOSS) PER SHARE $0.00 $0.00 $0.03
================================
See Notes to Financial Statements.
BUD FINANCIAL GROUP, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Cumulative
Months Ended During the
March 31, Development
2000 1999 Stage
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $(4,041)$(4,157) $(78,294)
Adjustments to reconcile net income (loss)
to net cash used by operations
Organization costs 0 0 (500)
Research fees and expenses paid by common stock 0 0 9,239
Bad debt allowance 0 0 26,250
Amortization 0 0 500
Forgiveness of debt 0 0 (21,739)
Rent provided free 0 0 200
Changes in assets and liabilities
Increases in accrued interest receivable 0 0 (1,250)
Increase (decrease) in accounts payable (400) 0 693
Increase in accrued interest payable 0 0 0
____________________________
Net Cash Provided (Used) by Operating (4,441) (4,157) (64,901)
Activities ____________________________
CASH FLOWS FROM INVESTING ACTIVITIES
Officer cash advances 0 0 15,493
Payment on officer advances 0 0 (3,061)
____________________________
Net Cash Provided by Investing 0 0 12,432
Activities ____________________________
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowing 0 0 6,906
Repayments of borrowing - net 0 0 (126,323)
Proceeds form sale of investments 0 0 128,032
Proceeds from sale of common stock 0 0 18,420
Contribution of capital 3,000 6,000 20,000
Common stock issued for cash 0 0 7,500
Common stock issued to pay accounts payable 0 0 5,000
____________________________
Net Cash Provided by Financing 3,000 6,000 59,535
Activities ____________________________
NET INCREASE (DECREASE) IN CASH (1,441) 1,843 7,066
CASH - BEGINNING OF PERIOD 8,507 6,168 0
____________________________
CASH - END OF PERIOD $7,066 $8,011 $7,066
============================
NONCASH TRANSACTIONS
Note exchanged for debt and interest $0 $0 $16,527
============================
Stock issued to pay for services and expenses $0 $0 $15,040
============================
SUPPLEMENTAL DISCLOSURES
Interest $0 $0 $1,311
============================
Taxes $0 $0 $40
============================
See Notes to Financial Statements.
BUD FINANCIAL GROUP, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The Company, without audit, has prepared the accompanying
financial statements. In the opinion of management, all
adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of
operation and cash flows at March 31, 2000 and 1999 and for all
periods presented have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. It
is suggested that these condensed financial statements be read in
conjunction with the financial statements and notes thereto
included in the Company's December 31, 1999 audited financial
statements. The results of operations for the periods ended March
31, 2000 and 1999 are not necessarily indicative of the operating
results for the full year.
NOTE 2 - ACQUISITION NEGOTIATIONS
The Company is negotiating to acquire all of the outstanding
common stock of a private corporation with offices in Richardson,
Texas. The proposed acquisition is subject to numerous
conditions.
ITEM 2: MANAGEMENT'S DISCUSSION & ANALYSIS OR PLAN OF OPERATIONS
The Company was formed for the purpose of investing in any and all types
of assets, properties, and business. The Company completed a public stock
offering in 1991. The offering was registered on Form S-18 with the
Securities and Exchange Commission. The Company's only business activity, to
date, has been its formation, the registration of securities and the
preliminary investigation of potential investments and acquisitions.
Liquidity and Capital Resources
At March 31, 2000, the Company's assets consist primarily of cash from
the issuance of common stock. The Company has no other resources. The
Company has incurred losses since inception and has expended all of its
working capital. Management is proposing to raise additional funds through
loans and/or through sales of its common stock or through a proposed
acquisition of another company by issuing common stock. There is no assurance
the Company will be successful in raising this additional capital. At
present, the Company is engaged in the search for potential investments or
acquisitions of private companies. Management believes that any acquisition
will be made by issuing shares of the Company's unissued common stock. The
Company's liquidity, capital resources and financial statements will be
significantly different subsequent to the consummation of any acquisition.
Results of Operations
The Company's only operation to date has been the preliminary
investigation of potential acquisitions.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Issuer has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BUD FINANCIAL GROUP, INC.
Date: April 27, 2000 By: /s/Thomas G. Kimble
Thomas G. Kimble, President