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: March 31, 2003
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from _______to _______
Commission file number: 000-32249
ARMOR ENTERPRISES, INC.
(Exact name of small business issuer as specified in its charter)
Florida 65-0853784
(State or other jurisdiction of (IRS Employee Identification No.)
incorporation or organization)
11789, 79A Avenue, Delta, BC, V4C 1V7
(Address of principal executive offices)
(604) 605-0507
(Issuer's telephone number)
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
Common Stock, $0.001 par value 13,717,333
(Class) (Outstanding as of May 1, 2002)
Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
ARMOR ENTERPRISES, INC.
FORM 10-QSB
INDEX
Page
----
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Balance Sheets......................................................3
Condensed Statements of Operations............................................4
Condensed Statements of Cash Flows............................................5
Statement of Changes in Stockholder's equity..................................6
Notes to Condensed Financial Information......................................7
Item 2 Management's Discussion and Analysis or Plan of Operation............8
Item 3 Controls and Procedures..............................................9
Part II OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K.....................................9
Signatures....................................................................10
Certifications................................................................10
2
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
ARMOR ENTERPRISES, INC.
(A Development Stage Company)
BALANCE SHEETS
MARCH 31, JUNE 30,
2003 2002
--------- ---------
ASSETS (unaudited)
------
CURRENT ASSETS
Cash held in trust by related party -- $ 5,238
--------- ---------
Total Current Assets -- 5,238
--------- ---------
-- $ 5,238
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable $ 1,035 $ --
Shareholder advances 6,540
Advances from related party 1,418 --
Accrued payroll 6,875 5,000
--------- ---------
Total Current Liabilities 9,328 11,540
--------- ---------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, par value $.001, 10,000,000 shares
authorized, none issued -- --
Common stock, par value $.001, 100,000,000 shares
authorized, 13,717,333,000 issued and outstanding 13,717 12,650
Paid-in capital 23,073 17,600
Contributed capital 3,300 2,400
Deficit accumulated during development stage (49,418) (38,952)
--------- ---------
Total Stockholders' Equity (9,328) (6,302)
--------- ---------
$ 0 $ 5,238
========= =========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
3
ARMOR ENTERPRISES, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(UNAUDITED)
CUMMULATIVE
THREE MONTHS ENDED NINE MONTHS ENDED FROM
MARCH 31, MARCH 31, JUNE 5, 1998
------------------------- -------------------------- (INCEPTION) TO
2003 2002 2003 2002 MARCH 31, 2003
----------- ----------- ----------- ------------ --------------------
REVENUE $ - $ - $ - $ - $ -
EXPENSES:
General and administrative 3,755 925 10,465 3,348 49,418
----------- ----------- ----------- ------------ --------------------
Total Expenses 3,755 925 10,465 3,348 49,418
----------- ----------- ----------- ------------ --------------------
NET (LOSS) $ (3,755) $ (925) $ (10,465) $ (3,348) $ (49,418)
=========== =========== =========== ============ ====================
NET INCOME PER COMMON SHARE-BASIC * * * *
=========== =========== =========== ============
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 13,717,333 12,650,000 13,124,370 12,650,000
=========== =========== =========== ============
* less than $.01 per share
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
4
ARMOR ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(DEFICIT)
ACCUMULATED
COMMON STOCK DURING THE
---------------------------- PAID-IN CONTRIBUTED DEVELOPMENT
SHARES AMOUNT CAPITAL CAPITAL STAGE TOTAL
---------------------------- ----------- ---------- -------------- -----------
Balances, inception - $ - $ - $ - $ - $ -
Shares issued January 10, 1998, for services 5,250,000 5,250 5,250
Net loss for the year (5,250) (5,250)
-------------- ----------- ----------- ---------- -------------- -----------
BALANCES, JUNE 30, 1998 5,250,000 5,250 - - (5,250) -
Shares issued August 31, 1998, for cash 21,000 21 189 210
Shares issued August 31, 1998, for services 976,000 976 8,784 9,760
Shares issued September 30,1998, for cash 1,000 1 9 10
Shares issued October 12,1998, for cash 2,000 2 18 20
Net loss for the year (10,000) (10,000)
-------------- ----------- ----------- ---------- -------------- -----------
BALANCES, JUNE 30, 1999 6,250,000 6,250 9,000 (15,250) -
2 for 1 forward stock split, August 31, 1999 6,250,000 6,250 (6,250) -
Shares issued February 8, 2000 for cash 150,000 150 14,850 15,000
Net loss for the year (5,275) (5,275)
-------------- ----------- ----------- ---------- -------------- -----------
BALANCES, JUNE 30, 2000 12,650,000 12,650 17,600 (20,525) 9,725
Contributed capital-office overhead 1,200 1,200
Net loss for the year (14,155) (14,155)
-------------- ----------- ----------- ---------- -------------- -----------
BALANCES, JUNE 30, 2001 12,650,000 12,650 17,600 1,200 (34,680) (3,230)
Contributed capital-office overhead 1,200 1,200
Net loss for the year (4,272) (4,272)
-------------- ----------- ----------- ---------- -------------- -----------
BALANCES, JUNE 30, 2002 12,650,000 12,650 17,600 2,400 (38,952) (6,302)
(UNAUDITED)
Contributed capital-office overhead 300 300
Net loss for the three months (925) (925)
-------------- ----------- ----------- ---------- -------------- -----------
BALANCES, SEPTEMBER 30, 2002 (UNAUDITED) 12,650,000 12,650 17,600 2,700 (39,877) (6,927)
Contributed capital-office overhead 300 300
Shares issued December 18, 2002 @ $.0061
per share for shareholder loan 1,067,333 1,067 5,473 6,540
Net loss for the three months (5,786) (5,786)
-------------- ----------- ----------- ---------- -------------- -----------
BALANCES, DECEMBER 31, 2002 (UNAUDITED) 13,717,333 13,717 23,073 3,000 (45,663) (5,873)
Contributed capital-office overhead 300 300
Net loss for the three months (3,755) (3,755)
-------------- ----------- ----------- ---------- -------------- -----------
BALANCES, MARCH 31, 2003 (UNAUDITED) 13,717,333 $ 13,717 $ 23,073 $ 3,300 $ (49,418) $ (9,328)
============== =========== =========== ========== ============== ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
5
ARMOR ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
CUMMULATIVE
NINE MONTHS ENDED FROM
MARCH 31, JUNE 5, 1998
------------------------ (INCEPTION) TO
2003 2002 MARCH 31, 2003
--------- --------- ---------
OPERATING ACTIVITIES:
Net (loss) from operations $(10,465) $ (3,348) $(49,418)
Contributions to capital 900 $ 900 3,300
Capital issued for services 15,010
Adjustments to reconcile net (loss) to net
cash used by operating activities:
Changes in:
Accounts payable 1,035 1,035
Trust funds 6,655 $ 573 1,418
Accrued payroll 1,875 1,875 6,875
--------- --------- ---------
Net Cash provided (Used) by Operating Activities -- -- (21,780)
--------- --------- ---------
FINANCING ACTIVITIES:
Proceeds from sale of common stock 15,240
Shareholder loans -- -- 6,540
--------- --------- ---------
Net Cash provided by Financing Activities -- -- 21,780
--------- --------- ---------
NET INCREASE IN CASH -- -- --
CASH, beginning of period -- --
--------- --------- ---------
CASH, end of period $ -- $ -- $ --
========= ========= =========
SUPPLEMENTAL CASH FLOWS INFORMATION
Common stock issued in exchange for
shareholder loan $ 6,540 $ 6,540
========= =========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
6
Note 1. BASIS OF PRESENTATION
In the opinion of management, the accompanying unaudited condensed financial
statements have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form
10-QSB. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation of the
Company's financial position as of March 31, 2003 and the results of its
operations and cash flows for the three and nine months ended March 31, 2003 and
2002. Operating results for the nine months ended March 31, 2003 are not
necessarily indicative of the results that may be expected for the year ended
June 30, 2003.
These condensed financial statements should be read in conjunction with the
financial statements and notes thereto contained in the Company's Form 10-SB for
the year ended June 30, 2002.
Note 2. SHARES ISSUED IN EXCHANGE FOR SHAREHOLDER LOAN
On December 18, 2002, the Company issued 1,067,333 shares in exchange for the
outstanding shareholder loan of $6,540 as of that date. The per share price was
$.0061.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
Overview
- --------
The Company is considered a development stage company with limited assets or
capital and with no operations or income since inception. The costs and expenses
associated with the preparation and filing of this registration statement and
other operations of the Company have been paid for by loans from the President
of the Company (see Item 4, Security Ownership of Certain Beneficial Owners and
Management). It is anticipated that the Company will require only nominal
capital to maintain the corporate viability of the Company and necessary funds
will most likely be provided by the Company's existing shareholders or its
officers and directors in the immediate future. However, unless the Company is
able to facilitate an acquisition of or merger with an operating business or is
able to obtain significant outside financing, there is substantial doubt about
its ability to continue as a viable corporation.
In the opinion of management, inflation has not and will not have a material
effect on the operations of the Company until such time as the Company
successfully completes an acquisition or merger. At that time, management will
evaluate the possible effects of inflation on the Company as it relates to its
business and operations following a successful acquisition or merger.
Plan of Operation
- -----------------
During the next twelve months, the Company will actively seek out and
investigate possible business opportunities with the intent to acquire or merge
with one or more business ventures. In its search for business opportunities,
management will follow the procedures outlined in Item I above. Because the
Company lacks finds, it may be necessary for the officers and directors to
either advance funds to the Company or to incur expenses until such time as a
successful business consolidation can be made. Management intends to hold
expenses to a minimum and to obtain services on a contingency basis when
possible. Further, the Company's President and sole Director will defer payment
of all accrued compensation until such time as an acquisition or merger can be
accomplished and will strive to have the business opportunity provide his
remuneration. However, if the Company engages outside advisors or consultants in
its search for business opportunities, it may be necessary for the Company to
attempt to raise additional funds.
As of the date hereof, the Company has engaged its officers and directors and
legal counsel to assist in the search for business opportunities. The Company
has not made any arrangements or definitive agreements to use outside advisors
or consultants or to raise any capital. In the event the Company does need to
raise capital most likely the only method available to the Company would be the
private sale of its securities. Because of the nature of the Company as a
development stage company, it is unlikely that it could make a public sale of
securities or be able to borrow any significant sum, from either a commercial or
private lender. There can be no assurance that the Company will be able to
obtain additional funding when and if needed, or that such funding, if
available, can be obtained on terms acceptable to the Company.
8
The Company does not intend to use any employees, with the possible exception of
part-time clerical assistance on an as-needed basis. Outside advisors or
consultants will be used only if they can be obtained for minimal cost or on a
deferred payment basis. Management is confident that it will be able to operate
in this manner and to continue its search for business opportunities during the
next twelve months.
Results of Operation
- --------------------
The Company has had no operations during this reporting period. During the
quarterly period covered by this report, the Company received no revenue and
incurred expenses of $3,755 stemming from general and administrative
expenditures.
Liquidity
- ---------
As of March 31, 2003 the Company had total current assets of $0 and total
liabilities of $9,328.
ITEM 3. CONTROLS AND PROCEDURES
The registrant's Principal executive officers and principal financial officer,
based on their evaluation of the registrant's disclosure controls and procedures
(as defined in Rules 13a-14 ( c ) of the Securities Exchange Act of 1934 ) as of
March 31, 2003 have concluded that the registrants' disclosure controls and
procedures are adequate and effective to ensure that material information
relating to the registrants and their consolidated subsidiaries is recorded,
processed , summarized and reported within the time periods specified by the
SEC' s rules and forms, particularly during the period in which this quarterly
report has been prepared.
The registrants' principal executive officers and principal financial officer
have concluded that there were no significant changes in the registrants'
internal controls or in other factors that could significantly affect these
controls subsequent to February 28, 2003 the date of their most recent
evaluation of such controls, and that there was no significant deficiencies or
material weaknesses in the registrant's internal controls.
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3.1.1 Articles of Incorporation dated June 5, 1998
3.1.2 Articles of Amendment dated August 31, 1999
3.2 Bylaws
99.1 Section 906 Certification of CEO
99.2 Section 906 Certification of CFO
-------------
* Previously filed as an exhibit to the Company's Form 10-SB as filed
January 6, 2003
(b) Reports on Form 8-K filed during the three months ended March 31, 2003.
No Current Reports on Form 8-K were filed during the three months ended
March 31, 2003
9
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.
Date: May 14, 2003 Armor Enterprises, Inc.
/s/ Peter Braun
-----------------------------------
Peter Braun
President
10
CERTIFICATIONS
I, Peter Braun, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Armor
Enterprises, Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
have :
(a) Designed such disclosure controls and procedures to ensure
that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the
period in which this quarterly report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this quarterly report (the "Evaluation
date"); and
(c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based
on our evaluation as of the Evaluation date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
registrant's board of directors:
(a) All significant deficiencies in the design or operation of
internal controls which could adversely affect the
registrant's ability to record, process, summarize and report
financial data and have identified for the registrant's
auditors any material weaknesses in internal controls, and
(b) Any fraud, whether or not material, that involves management
or other employees who have a significant role in the
registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation including
any corrective actions with regard to significant deficiencies and
material weaknesses.
Date : May 14, 2003
/s/ Peter Braun
- ------------------------------------
Peter Braun
President
11