2
UNITED
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2001
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File number 0-25541
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CIGAR KING CORPORATION
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(Exact name of registrant as specified in charter)
Nevada 91-1948357
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
269 Robson Place
Delta, BC, Canada V4M 3P3
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(Address of principal executive offices) (Zip Code)
604-943-0468
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Registrant's telephone number, including area code
(Former name, address, and fiscal year, if changed since last report)
Indicate by check mark whether the registrant (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
registrant was required to file such reports), Yes [X] No [ ] and ( ) has
been subject to filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
Class Outstanding as of June 30, 2001
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Common Stock, $0.001 per share 10,535,000
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INDEX
PAGE
NUMBER
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PART 1.
ITEM1 . . . Financial Statements . 3
Balance Sheet as at June 30, 2001
and September 30, 2000 . . . . . . . . . . . . . . 4
Statement of Operations
For the three months ended June 30, 2001 and 2000,
for the nine months ended June 30, 2001 and 2000
and for the period from October 8,1998 (Date of
Inception) to June 30, 2001. . . . . . . 5
Statement of Cash Flows
For the six months ended June 30, 2001 and 2000
and for the period from October 8,1998 (Date of
Inception) to June 30, 2001. . . . . . . . . . . . 6
Notes to Financial Statements . . . . . . . 7
ITEM 2. Plan of Operations 9
PART 11.. . .Signatures 10
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PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying balance sheet of Cigar King Corporation (a development stage
company) at June 30, 2001 and the statement of operations for the three and nine
months ended June 30, 2001 and 2000, and for the period from October 8, 1998
(date of inception) to June 30, 2001 and the statement of cash flow for the nine
months ended June 30, 2001 and 2000 and for the period from October 8, 1998
(date of inception) to June 30, 2001 have been prepared by the Company's
management in conformity with accounting principles accepted in United States of
America. In the opinion of management, all adjustments considered necessary for
a fair presentation of the results of operations and financial position have
been included and all such adjustments are of a normal recurring nature.
Operating results for the nine months ended June 30, 2001, are not necessarily
indicative of the results that can be expected for the year ending September 30,
2001.
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CIGAR KING CORPORATION
(A Development Stage Company)
BALANCE SHEET
June 30, 2001 and September 30, 2000
(Unaudited - Prepared by Management)
JUNE 30, September 30,
2001 2000
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ASSETS
CURRENT ASSETS
Bank . . . . . . . . . . . . . . . . . . . . . . . . . $ 19 $ 160
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TOTAL CURRENT ASSETS. . . . . . . . . . . . . . . . . . . . $ 19 $ 160
=========== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities. . . . . . . $ 11,017 $ 6,439
Accounts payable - related parties. . . . . . . . . . 1,205 956
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TOTAL CURRENT ASSETS. . . . . . . . . . . . . . . . . . . . 12,222 7,395
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value, 10,535,000 shares issued and outstanding. 10,535 10,535
Capital in excess of par value . . . . . . . . . . . . 74,515 74,515
Deficit accumulated during the development stage . . . (97,253) (92,285)
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Total Stockholders' Equity (Deficiency). . . . . (12,203) (7,235)
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$ 19 $ 160
=========== ===============
The accompanying notes are an integral part of these unaudited financial
statements.
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CIGAR KING CORPORATION
(A Development Stage Company)
STATEMENT OF OPERATIONS
For the three months ended June 30, 2001 and 2000,
for the nine months ended June 30, 2001 and 2000 and for the period from
October 8, 1998 (Date of Inception) to June 30, 2001
(Unaudited - Prepared by Management)
FOR THE FOR THE
FOR THE THREE FOR THE THREE NINE NINE
MONTHS MONTHS MONTHS MONTHS FROM INCEPTION
ENDED ENDED ENDED ENDED TO
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2001 2000 2001 2000 2001
--------------- --------------- ------------ ------------- ----------------
SALES . . . . . . . . . . . . . . . . . $ - $ - $ - $ - $ -
=============== --------------- ------------ ------------- ----------------
GENERAL AND ADMINISTRATIVE EXPENSES:
Loss of license. . . . . . . . . . - - - - 50,000
Accounting and audit . . . . . . . 950 250 2,850 2,600 16,100
Bank charges and interest. . . . . 19 18 54 62 330
Consulting . . . . . . . . . . . . - - - 2,900 8,250
Filing fees. . . . . . . . . . . . - 323 225 887 2,957
Legal. . . . . . . . . . . . . . . - - - 80 2,610
Office and administrative
expenses . . . . . . . . . . . 88 69 297 1,540 3,378
Rent . . . . . . . . . . . . . . . - - - 1,500 3,000
Telephone. . . . . . . . . . . . . - - - 750 1,950
Transfer agent's fees. . . . . . . 58 225 1,542 1,443 6,178
Travel . . . . . . . . . . . . . . - - - - 2,000
Website fees . . . . . . . . . . . - - - - 500
--------------- --------------- ------------ ------------- ----------------
NET LOSS. . . . . . . . . . . . . . . . $ ( 1,115) $ (885) $ (4,968) $ (11,762) $ ( 97,253)
=============== =============== ============ ============= ================
NET LOSS PER COMMON SHARE
Basic. . . . . . . . . . . . . . . $ - $ - $ - $ -
=============== =============== ============ =============
AVERAGE OUTSTANDING SHARES
Basic. . . . . . . . . . . . . . . 10,535,000 10,535,000 10,535,000 10,535,000
=============== =============== ============ =============
The accompanying notes are an integral part of these unaudited financial
statements.
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CIGAR KING CORPORATION
(A Development Stage Company)
STATEMENT OF CASH FLOWS
For the nine months ended June 30, 2001 and 2000 and for the period from
October 8, 1998 (Date of Inception) to June 30, 2001
(Unaudited - Prepared by Management)
FOR THE For the
NINE Nine FROM
MONTHS Months INCEPTION
ENDED Ended TO
JUNE 30, June 30, JUNE 30,
2001 2000 2001
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CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (4,968) $ (11,762) $ (97,253)
Adjustments to reconcile net loss to net cash provided by operating activities:
Changes in current assets and liabilities:
Capital contributions - expenses . . . . . . . . . . . . . . . . . . . . . . . . - 3,650 7,300
Accounts payable - related parties . . . . . . . . . . . . . . . . . . . . . . . 249 (44) 1,205
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,578 419 11,017
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Net cash (deficiency) from operations . . . . . . . . . . . . . . . . . . . . . . (141) (7,737) (77,731)
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CASH FLOWS FROM INVESTING ACTIVITIES:
- - -
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock. . . . . . . . . . . . . . . . . . . . . . - - 77,750
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Net Increase (Decrease) in Cash. . . . . . . . . . . . . . . . . . . . . . . (141) (7,737) 19
Cash at Beginning of Period. . . . . . . . . . . . . . . . . . . . . . . . . 160 8,024 -
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CASH AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19 $ 287 $ 19
========== ========== ===========
The accompanying notes are an integral part of these unaudited financial
statements.
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CIGAR KING CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited - Prepared by Management)
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on October 8,
1998 with the authorized common shares of 200,000,000 shares at $0.001 par
value.
The Company was organized for the purpose of engaging in quality cigar sales.
No operations have been started.
Since its inception the Company has completed Regulation D offerings of
10,535,000 of its common capital stock for cash.
The Company is in the development stage.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
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The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
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The Company has not yet adopted a policy regarding payment of dividends.
Income Taxes
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On June 30, 2001 the Company had a net operating loss carry forward of
$97,253. The tax benefit of $29,176 from the loss carry forward has been fully
offset by a valuation reserve because the use of the future tax benefit is
doubtful since the Company is in the development stage and has not started
operations. The net operating loss will expire in 2022.
Earnings (Loss) per Share
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Earnings (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding.
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CIGAR KING CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Cash and Cash Equivalents
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The Company considers all highly liquid instruments purchased with a maturity,
at the time of purchase, of less than three months, to be cash equivalents.
Comprehensive Income
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The Company adopted Statement of Financial Accounting Standards No. 130. The
adoption of this standard had no impact on the total stockholder's equity.
Recent Accounting Pronouncements
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The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact on its financial statements.
Financial Instruments
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The carrying amounts of financial instruments, including cash and accounts
payable are considered by management to be their estimated fair values.
Estimates and Assumptions
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Management uses estimates and assumptions in preparing financial statements in
accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could vary from the estimates that were assumed in
preparing these financial statements.
3. RELATED PARTY TRANSACTIONS
Related parties acquired 43% of the common stock issued.
4. GOING CONCERN
Continuation of the Company as a going concern is dependent upon obtaining
additional working capital and the management of the Company has developed a
strategy, which it believes will accomplish this objective through additional
equity funding, and long term financing, which will enable the Company to
operate for the coming year.
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ITEM 2. PLAN OF OPERATIONS
The Company has not developed its original concept of operating cigar kiosks in
the Greater Vancouver, British Columbia area. The funds are not available for
it to build its first kiosk and therefore the Company has not been able to
pursue its concept.
Liquidity and Capital Resources
- ----------------------------------
No funds are on hand to undertake the cigar kiosk concept. The directors have
been personally advancing funds to the Company in order to meet its current
obligations.
Results of Operations
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The Company has had no revenues from operations since its inception.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CIGAR KING CORPORATION
(Registrant)
August 20, 2001 /s/ "Michael J. Kennaugh"
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Date Michael Kennaugh - Director
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