U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934 for the Quarterly Period Ended July 31, 2000
Commission file number 000-29181
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BOEING RUN, INC.
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(Exact name of small business issuer as specified in its charter)
Colorado 84-1493153
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7899 West Frost Drive, Littleton, Colorado 80128
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(Address of principal executive offices) (Zip Code)
303-979-3224
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(Issuer's telephone number)
Not applicable
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(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (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 registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
Yes X No
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State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.
As of July 31, 2000, 1,230,000 shares of common stock, no par value, were
outstanding.
INDEX
Page
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PART I--FINANCIAL INFORMATION
Item 1. Financial Statements*
Condensed balance sheet - July 31, 2000 (Unaudited) 3
Condensed statement of operations (Unaudited) - Three months ended
July 31, 2000 and 1999 and April 9, 1998 (inception)
through July 31, 2000 4
Condensed statements of cash flows (Unaudited) - Three months ended
July 31, 2000 (Unaudited) and 1999 and April 9, 1998 (inception)
through July 31, 2000 (Unaudited) 5
Notes to condensed financial statements (Unaudited) 6
Item 2. Plan of operation 8
PART II--OTHER INFORMATION 8
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures 9
*The accompanying financial statements are not covered by an Independent
Certified Public Accountant's report.
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BOEING RUN, INC.
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A Development Stage Company
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Condensed Balance Sheet
July 31, 2000
(Unaudited)
ASSETS
ASSETS
Cash $ 501
Accounts receivable, related party (Note B) 106
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TOTAL ASSETS 607
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LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES
Accounts payable and accrued liabilities $ 2,873
Accounts payable, related party (Note B) 589
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TOTAL LIABILITIES 3,462
SHAREHOLDERS' DEFICIT
Common stock 2,673
Additional paid-in capital 900
Deficit Accumulated during the development stage (6,428)
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TOTAL SHAREHOLDERS' DEFICIT $ (2,855)
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$ 607
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See accompanying notes to condensed financial statements
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BOEING RUN, INC.
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A Development Stage Company
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Condensed Statement of Operations
(Unaudited)
April 9, 1998
(inception)
Three Months Ended through
July 31, July 31,
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2000 1999 2000
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Interest Income - 13 106
Cost and expenses 1,048 46 5,634
Cost and expenses, related party
(Note B) 300 - 900
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Net Loss Before Taxes (1,348) (33) (6,428)
Income taxes - - -
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Net (loss) (1,348) (33) $ (6,428)
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Basic (loss) per share * * *
Weighted average shares
outstanding 1,230,000 1,230,000 1,230,000
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* Less than $.01 per share
See accompanying notes to condensed financial statements
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BOEING RUN, INC.
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A Development Stage Company
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Condensed Statements of Cash Flows
(Unaudited)
April 9, 1998
(inception)
Three Months Ended through
July 31, July 31,
2000 1999 2000
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(unaudited) (unaudited)
NET CASH (USED IN) $ (21) $ - $ (1,672)
OPERATING ACTIVITIES ------------ ------------ --------------
NET CASH PROVIDED BY
INVESTING ACTIVITIES - - -
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FINANCING ACTIVITIES
Sale of common stock - - 2,300
Offering costs incurred - - (127)
NET CASH PROVIDED BY
FINANCING ACTIVITIES - - 2,173
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NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (21) - 501
Cash and cash equivalents,
beginning of period 522 2,084 -
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CASH AND CASH EQUIVALENTS, END
OF PERIOD $ 501 $ 2,084 $ 501
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Supplemental disclosure:
No cash was paid for interest or income taxes for all periods presented
See accompanying notes to condensed financial statements
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BOEING RUN, INC.
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A Development Stage Company
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NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
July 31, 2000
Note A: Basis of Presentation
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The financial statements presented herein have been prepared by the Company in
accordance with the accounting policies in its audited financial statements
for the year ended April 30, 2000 as filed in its Form 10-KSB on July 28, 2000
and should be read in conjunction with the notes thereto. The Company entered
the development stage in accordance with Statement of Financial Accounting
Standard ("SFAS") No. 7 on April 9, 1998 and its purpose is to evaluate,
structure and complete a merger with, or acquisition of, a privately owned
corporation.
In the opinion of management, all adjustments (consisting only of normal
recurring adjustments) which are necessary to provide a fair presentation of
operating results for the interim period presented have been made. The
results of operations for the periods presented are not necessarily indicative
of the results to be expected for the year.
Interim financial data presented herein are unaudited. The unaudited interim
financial information presented herein has been prepared by the Company in
accordance with the policies in its audited financial statements for the year
ended April 30, 2000 and should be read in conjunction with the notes thereto.
Note B: Related Party Transactions
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The Company issued Corporate Management Services (the "affiliate") 1,000,000
shares of common stock in exchange for services related to management and
organization costs of $500. The affiliate provides administrative and
marketing services as needed. The affiliate may, from time to time, advance
to the Company any additional funds that the Company needs for operating
capital and for costs in connection with searching for or completing an
acquisition or merger.
On behalf of the Company, the affiliate sold 230,000 shares of the Company's
common stock in a private placement for $2,300. The private placement, which
closed in July 1998, also included the offering of common shares in nineteen
other corporations. The costs related to the offering and certain legal fees
and general and administrative fees were allocated to each of the twenty
companies participating in the offering. The Company's pro rata one twentieth
share of the costs and expenses were deducted from the gross proceeds from the
sale of the Company's common shares. The gross proceeds of $2,300 were
transferred to the Company net of offering costs of $127, certain general and
administrative costs incurred by the affiliate of $89. At April 30, 2000 the
Company had cash of $522. For the three months ended July 31, 2000 the Company
paid bank charges of $21 resulting in a cash balance of $501.
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Note B: Related party transactions, concluded
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At April 30, 2000 the Company owed the affiliate $476 for certain legal
expenses paid by the affiliate on behalf of the Company. During the three
months ended July 31, 2000 the affiliate paid an additional $113 in legal
expenses on behalf of the Company, which resulted in a net due to the
affiliate at July 31, 2000 of $589.
On November 1, 1999 the Company began incurring an expense of $100 per month
for rent and other administrative services which are performed by Corporate
Management Services on behalf of the Company. For the three months ended July
31, 2000 the Company incurred rent and administrative service expenses of
$300, which has been credited to additional paid-in capital.
Note C: Income Taxes
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The Company records its income taxes in accordance with Statement of Financial
Accounting Standard No. 109, "Accounting for Income Taxes". The Company
incurred net operating losses during the three periods shown on the condensed
financial statements resulting in a deferred tax asset, which was fully
allowed for, therefore the net benefit and expense result in $0 income taxes.
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Part I--Item 2. Plan of Operation
The Company's plan of operation is to seek out, investigate, and pursue a
merger, acquisition, or other business combination with an entity desiring the
perceived benefits offered by the Company as a result of its having a class of
securities registered under the Exchange Act. There have been no revenues
from operations since formation, and none are anticipated prior to completing
a business combination. The Company has no full time employees,
incurs nominal rent and administrative expenses of $100 per month, and has no
other recurring operational expenses except professional fees incurred as
necessary. The Company's president continues to devote approximately ten (10)
hours per month, without compensation, to the affairs of the Company. The
Company does not anticipate raising any additional funds in the next twelve
(12) months, and has no present plans to acquire any assets or make any
investments prior to completing a business combination.
To date, the Company has not identified a suitable target entity for any type
of business combination, and management has no particular type of merger,
acquisition, or business opportunity in mind. No restrictions have been
placed on management's discretion to seek out and participate in an
appropriate business opportunity. Due to limited financial resources it is
anticipated that only a single potential business venture will be pursued.
Selection of an appropriate business opportunity is complex and risky due to
the Company's limited financial resources, the speculative nature of
operations, management's limited time commitment to the Company, management's
potential conflicts of interest, the burdens of being a reporting company,
lack of market research, and competition in the marketplace. The Company's
success is dependent upon locating and consummating a business combination,
and there are no assurances that this will occur.
Part II--Other Information
Items 1 through 5
No response required.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K
None
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Boeing Run, Inc.
Date: September 13, 2000 By: /s/ George G. Andrews
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George G. Andrews, President
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