SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] Quarterly Report Under Section 13 or 15(d)of the Securities Exchange Act
of 1934
For the quarterly period ended March 31, 1999
[ ] Transition Report Under Section 13 or 15(d) of the Exchange Act
For the transition period from _________ to __________.
Commission file number 000-25499
COLOR STRATEGIES
________________________________________________________________
(Exact name of small business issuer as specified in its charter)
Nevada 88-0390360
____________________________ ________________________________
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization
3050 East 630 North, Suite D1, St. George, Utah 84790
_____________________________________________________________
(Address of principal executive offices)
(435) 628-8130
________________________________________________
(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file
such reports) Yes [ x ] No [ ], and (2) has been subject to such filing
requirements for the past 90 days. Yes [ ] No [ x ]
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:
As of May 24, 1999, the issuer had outstanding 401,800 shares of its
Common Stock, $0.001 par value.
Transitional Small Business Disclosure Format [ ] [X]
1
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
The following are unaudited financial statements of Color Strategies, a
Nevada corporation (the "Company"), as of March 31, 1999, which, in the
opinion of Management, fairly present the financial condition of the Company.
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
MARCH 31, 1999
TABLE OF CONTENTS
Page Number
ACCOUNTANT'S REPORT ................................................. 1
FINANCIAL STATEMENT:
Balance Sheet................................................... 2
Statement of Operations and Deficit
Accumulated During the Development Stage....................... 3
Statement of Changes in Stockholder's Equity.................... 4
Statement of Cash Flows......................................... 5
Notes to the Financial Statements .............................. 6
2
DAVID E. COFFEY 3651 Lindell Rd. - Suite H Las Vegas, NV 89103
CERTIFIED PUBLIC ACCOUNTANT (702) 871-3979
To the Board of Directors and Stockholders
of Color Strategies
Vegas, Nevada
I have compiled the balance sheet of Color Strategies as of March 31,
1999 and the related statement of operations, cash flows and changes in
stockholders' equity for the period ended March 31, 1999 in accordance with
Statement on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial
statements information that is the representation of management. I have not
audited or reviewed the accompanying financial statements and, accordingly, do
not express an opinion or any other, form of assurance on them.
/s/David Coffey C.P.A.
David Coffey C.P.A.
May 18, 1999
3
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
MARCH 31, 1999
(Unaudited)
ASSETS
Cash $ 37,694
Organizational costs less accumulated
amortization of $107 428
Deposit 600
----------
Total Assets $ 38,722
==========
LIABILITIES STOCKHOLDERS' EQUITY
Accounts payable $ 765
----------
Total Liabilities 765
Stockholders' Equity
Common stock, authorized 25,000,000 shares
at $.001 par value, issued and outstanding
401,800 shares 402
Additional paid-in capital 42,371
Deficit accumulated during the
development stage (4,816)
----------
Total Stockholders' Equity 37,957
Total Liabilities and Stockholders' Equity $ 38,722
==========
The accompanying notes are an integral part of
these financial statements.
F-2
4
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
FOR THE PERIOD ENDED March 31, 1999
(With Cumulative Figures From Inception)
(Unaudited)
From Inception
January 1, 1999 March 24, 1998
To March 31, 1999 To March 31, 1999
----------------- -----------------
Sales $ 0 $ 450
Expenses
Amortization 27 107
Advertising 0 724
Consulting 500 500
Licenses and fees 881 1,376
Office expenses 0 559
Rent 1,200 2,000
----------------- -----------------
Total expenses 2,608 5,266
Net loss (2,608) (4,816)
=================
Retained earnings,
beginning of period (2,208)
-----------------
Deficit accumulated during
the development stage $ (4,816)
=================
Earnings (loss) per share
assuming dilution:
Net loss $ (.01) $ (.01)
Weighted average shares ================= =================
outstanding 401,800 323,561
================= =================
The accompanying notes are an integral part of
these financial statements.
F-3
5
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
PERIOD FROM March 24, 1998 (Date of Inception)
To March 31, 1999
(Unaudited)
Additional
Common Stock Paid-in
Shares Amount Capital Total
------- ------- ---------- ----------
Balance,
March 24, 1998 --- $ --- $ --- $ ---
Issuance of common
stock for cash
March of 1998 200,000 200 9,800 10,000
Issuance of common
stock for cash.
August of 1998 201,800 202 50,248 50,450
Less offering costs --- --- (11,888) (11,888)
Less net loss --- --- --- (2,208)
------- ------- ---------- ----------
Balance,
December 31, 1998 401,800 402 48,160 46,354
Less offering costs 0 0 (5,789) (5,789)
Less net loss --- --- --- (2,608)
------- ------- ---------- ----------
Balance,
March 31, 1999 401,800 $ 402 $ 42,371 $ 37,957
======= ======= ========== ==========
The accompanying notes are an integral part of
these financial statements.
F-4
6
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED March 31, 1999
(With Cumulative Figures From Inception)
(Unaudited)
From Inception,
January 1, 1999 March 24,1998
To March 31, 1999 To March 31, 1999
----------------- -----------------
CASH FLOWS PROVIDED BY OPERATING
ACTIVITIES
Net Loss $ (2,608) $ (4,816)
Non-cash items included in net loss
Amortization 27 107
Adjustments to reconcile net loss to
cash used by operating activity
Deposits 0 (600)
Accounts payable (120) 765
----------------- -----------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES (2,701) (4,544)
CASH FLOWS USED BY INVESTING ACTIVITIES
Organizational costs 0 535
----------------- -----------------
NET CASH USED BY
INVESTING ACTIVITIES 0 535
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock 0 402
Paid-in capital 0 48,160
Less offering costs (5,789) (5,789)
----------------- -----------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES (5,789) 42,773
NET INCREASE IN CASH (8,490) $ 37,694
=================
CASH AT BEGINNING OF PERIOD 46,184
-----------------
CASH AT END OF PERIOD $ 37,694
=================
The accompanying notes are an integral part of
these financial statements.
F-5
7
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
March 31, 1999
NOTE A SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
The Company was incorporated on March 24, 1998 under the laws of the state of
Nevada. The business purpose of the Company is to provide motivational and
self improvement services through the use of seminars, workshops, specialized
training courses and other aids.
The Company will adopt accounting policies and procedures based upon
the nature of future transactions.
NOTE B ORGANIZATION COSTS
Organization costs are capitalized and amortized over 60 months.
NOTE C OFFERING COSTS
The offering costs were incurred by the Company in connection with a public
stock offering were deducted from the pet proceeds of that offering.
NOTE D COMMON STOCK
The Company has completed two offerings of its common stock. The first
offering was a private placement offer of 200,000 shares in March of 1998 to
its founding stockholder. The second offering was completed in August of 1998
consisting of 201,800 shares at $.25 per share. The net proceeds of that
offering will be used to provide motivational and self improvement services
through the use of seminars, workshops, specialized training courses and other
aids.
F-6
8
Item 2. Management's Discussion and Analysis or Plan of Operation.
Plan of Operation
The Company's limited capital and its lack of significant operating
history, designate that the Company must be considered a development stage
company. Development stage companies are inherently more risky than
established companies because there is no earnings history and no assurance
that future revenues will develop. The Company's business purpose is that of
creating and presenting self-improvement and motivational seminars which
utilize the concept of (1) identifying individual characteristics through
"color coded" personality profiles, (2) enhancing an individual's self-image
once such personality traits are recognized, and/or (3)effectively utilizing
such "color coded" personality profiles in a wide range of situations which
include individual success in the work place, corporate hiring strategies and
employee relations, and more effective use of mass-media presentations such
as training videos or infomercials. The Company plans to introduce to the
established topics of self-improvement and motivation the concepts of image
and style enhancement by profiling personality characteristics through "color
coding". The Company's concept of integrating the "color coding" of
behavioral characteristics with self-improvement and motivational techniques
is hereinafter referred to as its "Color/Image Strategies". The "color coding"
system enables you to identify your behavioral profile, capitalize on your
behavioral strengths, increase your appreciation of different profiles and
anticipate and minimizes potential conflicts with others. The Company's
largest hurdle is, and will be, to convince its various target markets that
the use of its Color/Image Strategies will prove beneficial.
During the next twelve months the Company's plan of operation is to
introduce its Color/Image Strategies to various markets and hopefully achieve
a certain amount of market penetration in one or more of these markets by
achieving a client base. In order to achieve this, the Company plans to
narrow its target market, which was initially broad in scope, to three areas:
(1) Motivational Seminars, (2) Keynote Speaking Services, and (3) One-on-One
Image Consulting. The Company plans to continue to research these markets and
develop a complete market analysis. Although the Company had intended to
pursue the market of employee and management training in the Hotel/Casino
industry, at present time, the Company's efforts in this direction have found
this market to be highly saturated and too competitive for the Company's
resources. The Company will explore this market at a later time when
resources allow.
The Company held its first complete motivational seminar on May 15, 1999
in St. George, Utah. Revenues from this seminar were $1,860, with over 100
people in attendance. Management feels the quality of presentation and the
performance of Ms. Tischner, the Company's President, and that of other
special guest speakers was well taken, and the response of the people in
audience was positive. The Company attributes the attendance to promotion,
and a targeted audience of professional working women. The Company will
continue to pursue this market aggressively. Although the profit margin on
this seminar was minimal, revenues were sufficient to cover costs; the Company
intends to keep its seminar fees competitive to encourage attendance and
hopefully, as a result, a certain amount of name recognition will develop.
The Company's marketing approach will be to solicit interest in its color
system concept, and pursue the above stated markets. During the next twelve
months, its cash requirements will include its lease payments of $400 per
month on the Company's office space in St. George, Utah, compensation to
9
Tami Tischner, the Company's President, of $1,000 per month, as well as
miscellaneous overhead. The Company has approximately $37,000 which it
believes will be sufficient to provide for the foregoing cash requirements for
day to day operations in the next twelve months, as well at provide for costs
of implementing its marketing strategies. Of those funds, the Company has
budgeted approximately $20,000 to cover the costs associated with establishing
its client base, advertising, purchase of supplies and equipment associated
with seminars, and hopefully some limited market penetration in the three
areas discussed above. There is no guarantee that the budgeted funds will be
sufficient to achieve these goals. The Company has no plans for any purchases
of significant equipment or property, nor are there plans for additional
employees until or unless warranted due to business needs. Management believes
that it will not achieve profitability until it is able to realize
approximately $5,000 in gross sales per month. The Company has no guarantee
that it will be able to achieve this goal in the next twelve months.
If the Company does not succeed in seeing limited revenues or, at
minimum, the potential of limited revenues, in the next twelve months, it may
be forced to discontinue operations unless it is able to raise sufficient
capital to continue pursuing its business plan. Management is not experienced
in developmental companies and may not have estimated its needs for
advertising and associated expenses in acquiring a client base accurately.
The Company may require additional funds and time to achieve these goals.
Even if the Company begins generating revenues, it could require additional
funding for expansion. It may be difficult for the Company to succeed in
securing additional financing. The Company may be able to attract some private
investors, or officers and directors may be willing to make additional cash
contributions, advancements or loans. Or, in the alternative, the Company
could attempt some form of debt or equity financing. However, there is no
guarantee that any of the foregoing methods of financing would be successful.
If the Company fails to achieve at least a portion of its business goals in
the next twelve months with the funds available to it, there is substantial
uncertainty as to whether it will continue operations.
ANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-QSB REFLECT
MANAGEMENT'S BEST JUDGMENT BASED ON FACTORS CURRENTLY KNOWN AND INVOLVE RISKS
AND UNCERTAINTIES. ACTUAL RESULTS MAY VARY MATERIALLY.
Year 2000 Compliance
Management believes that the Company's accounting and operational systems
are year 2000 compliant. The Company is not dependent on computers other than
for its internal bookkeeping which is done on a system that is Year 2000
compliant. The Company has no relationship with any third parties which are
dependent on computers other than its bank. The Company's bank has reported
that it is Year 2000 compliant.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
10
Not applicable.
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
Exhibit No. Description
27 Financial Data Schedule
(b) Reports on Form 8-K
None
11
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COLOR STRATEGIES
(Registrant)
Date: MAY 26, 1999 By: /s/ Tami Tischner
------------------------
Tami Tischner
President, Secretary/Treasurer
Chief Executive Officer, Chief
Financial Officer, Chairman of
the Board of Directors