KINSHIP SYSTEMS, INC.
(A Development Stage Enterprise)
INDEX TO FINANCIAL STATEMENTS
Page
Financial Statements:
Balance Sheets - March 31, 2001 (Unaudited)
and December 31, 2000 1
Statements of Operations (Unaudited) for the
Three Months Ended March 31, 2001 and 2000,
and for the Period from February 1, 2000
(Date of Inception) through March 31, 2001 2
Statements of Cash Flows (Unaudited) for
the Three Months Ended March 31, 2001 and
2000, and for the Period from February 1,
2000 (Date of Inception) through March 31, 2001 3
Notes to Financial Statements (Unaudited) 4
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KINSHIP SYSTEMS, INC.
(A Development Stage Enterprises)
BALANCE SHEETS
March 31, December 31,
2001 2000
Unaudited)
ASSETS ---------- -----------
Current Assets
Cash $ 7,148 $ 10,955
---------- -----------
Total Current Assets 7,148 10,955
---------- -----------
Deferred Offering Costs 26,560 24,907
---------- -----------
Total Assets $ 33,708 $ 35,862
========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 18,687 $ 17,986
---------- ----------
Total Current Liabilities 18,687 17,986
---------- ----------
Stockholders' Equity
Common stock - no par value;
50,000,000 shares authorized;
1,270,000 shares issued and
outstanding 25,813 25,813
Deficit accumulated during the
development stage (10,792) (7,937)
---------- ----------
Total Stockholders' Equity 15,021 17,876
---------- ----------
Total Liabilities and Stockholders' Equity $ 33,708 $ 35,862
========== ==========
The accompanying notes are an integral part of these financial statements.
1
KINSHIP SYSTEMS, INC.
(A Development Stage Enterprise)
STATEMENTS OF OPERATIONS
(UNAUDITED)
From
February 1,
2000
(Date of
For the Three Monts Ended Inception)
March 31, through
------------------------- March 31,
2001 2000 2001
---------- ---------- ----------
Revenue $ - $ - $ -
General and administrative expenses 2,855 813 10,792
----------- ---------- ----------
Net Loss $ 2,855 $ 813 $ (10,792)
=========== ========== ==========
Basic and Diluted Loss Per Share $ - $ - $ (0.01)
=========== ========== ==========
Weighted Average Number of Shares
Outstanding 1,270,000 1,270,000 1,270,000
The accompanying notes are an integral part of these financial statements.
2
KINSHIP SYSTEMS, INC.
(A Development Stage Enterprise)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
From
February 1,
2000
For The (Date of
Three Months Ended Inception)
March 31, through
----------------- March 31,
2001 2000 2001
------- ------- --------
Cash Flows from Operating Activities
Net loss $(2,855) $ (813) $(10,792)
Adjustments to reconcile net loss to net cash
used by operating activities:
Accounts payable (310) - 528
Stock issued for services - 813 813
------- ------- --------
Net Cash Used by Operating Activities (3,165) - (9,451)
------- ------- --------
Net Cash From Investing Activities - - -
------- ------- --------
Cash Flows From Financing Activities
Deferred offering costs (642) - (8,401)
Proceeds from issuance of common stock - 25,000 25,000
------- ------- --------
Net Cash Provided (Used) by Financing
Activities (642) 25,000 16,599
------- ------- --------
Net Increase (Decrease) in Cash and
Cash Equivalents (3,807) 25,000 7,148
Cash and Cash Equivalents at Beginning
of Period 10,955 - -
------- ------- --------
Cash and Cash Equivalents at End
of Period $ 7,148 $25,000 $ 7,148
======= ======= ========
Non-Cash Financing and Investing Information
Accrual of Deferred Offering Costs $ 1,011 $ - $ 18,159
======= ======= ========
The accompanying notes are an integral part of these financial statements.
3
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interim Financial Statements-The accompanying financial
statements are unaudited. In the opinion of management, all
necessary adjustments (which include only normal recurring
adjustments) have been made to present fairly the financial
position, results of operations and cash flows for the periods
presented. Certain information and 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 consolidated financial
statements be read in conjunction with the Company's financial
statements and notes thereto included in the Form 10-KSB dated
December 31, 2000. The results of operations for the three month
period ended March 31, 2001 are not necessarily indicative of the
operating results to be expected for the full year.
Basis of Presentation - The accompanying financial statements
have been prepared on a going concern basis, which contemplates
the realization of assets and the satisfaction of liabilities in
the normal course of business. During the three months ended
March 31, 2001 and 2000, the Company incurred net losses of
$2,855 and $813, respectively. As of March 31, 2001, the
accumulated deficit from inception totaled $10,792. These
factors, among others, indicate that the Company may be unable to
continue as a going concern. The accompanying financial
statements do not include any adjustments relating to the
carrying amount and classification of recorded assets or the
amount and classification of liabilities that might be necessary
should the Company be unable to continue as a going concern. The
Company has plans to complete a SB-1 Registration Statement to
raise additional capital. The Company's ability to continue as a
going concern is dependent upon its ability to generate
sufficient cash flows to meet its obligations on a timely basis,
to obtain additional financing and ultimately to attain
successful operations.
NOTE 2 - COMMITMENTS AND CONTINGENCIES
The Company has entered into an agreement with the president to
provide a $1,000 stipend per month that will not accrue until the
Company has revenues or until after six months. After that time,
the anticipated salaries for the three full time officers will be
determined by the Board of Directors. For services performed
previous to the Company receiving revenues or the six month time
period, the officers received common stock as compensation.
NOTE 3 - SUBSEQUENT EVENTS
On April 30, 2001, the Company closed its initial public offering
and issued 102,750 common shares upon receiving cash proceeds of
$102,750. Accrued deferred offering costs in the amount of
$18,687 were recognized as a reduction from the proceeds of the
offering.
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