UNITES STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 2001
OR
[ ] 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 0-25824
NEW HARVEST CAPITAL CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 13-3334512
(State or other jurisdiction of (IRS Employer)
incorporation or organization) Identification No.)
225 West 37th Street, New York, New York 10018
(Address of Principal Executive Offices)
(212) 819-1066
Registrant's telephone number, (including area code)
HARVEST CAPITAL CORPORATION
(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 of 1934 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
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: As of
December 19, 2002, there were 89,999,999 shares of common stock,
par value $.0001 per share.
Transitional small business disclosure format (check one)
Yes No X
Page 1 of 10.
There is no Exhibit Index.
NEW HARVEST CAPITAL CORPORATION
INDEX
Page
Part I. Financial Information:
Item 1. Financial Statements.
Balance Sheets at October 31, 2001 and
April 30, 2001 3
Statements of Operations for the three
months ended October 31, 2001 and 2000
4
Statements of Cash Flows for the
three months ended October 31, 2001 and 2000 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operation. 6-7
Part II. Other Information:
Item 5. Other Information. 8
Item 6. Exhibits and Reports on Form 8-K. 8
Signature 9
PART I. FINANCIAL INFORMATION
NEW HARVEST CAPITAL CORPORATION
(A Development Stage Corporation)
BALANCE SHEETS
ASSETS
October 31, April 30,
2001 2001
(Unaudited)
Current assets:
Cash $ 2,998 $ 3,063
Due from related party 10,000 -
Total current assets 12,998 3,063
Other assets:
Securities available for sale 138,855 126,772
$151,853 $129,835
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accrued expenses and
taxes payable $ 7,940 $ 13,940
Due to related party 74,300 71,300
Total current liabilities 82,240 85,240
Shareholders' equity
Preferred stock - $.0001 par value,
authorized 5,000,000 shares; issued
and outstanding- none
Common stock - $.0001 par value,
authorized 300,000,000 shares;
issued 88,999,999 at July 31, 2001
and April 30, 2001; 8,900 8,900
Additional paid-in capital 442,980 442,980
Retained (deficit)-prior to
development stage (314,120) (314,120)
Retained stage (deficit)-
development stage (152,991) (149,826)
Unrealized gain on securities
available for sale, net of taxes 84,844 56,661
Total stockholders' equity 69,613 44,595
$ 151,853 $ 129,835
NEW HARVEST CAPITAL CORPORATION
STATEMENTS OF OPERATIONS AND
(A Development Stage Corporation)
COMPREHENSIVE INCOME
Three Months Ended Six Months Ended
October 31, October 31,
2001 2000 2001 2000
Revenues:
Interest $ 8 $ - $ 19 $ -
Costs and expenses:
General and adminis-
trative $ 30 $ 45 $ 84 $ 10,341
Realized Loss on sale
of securities - - 100 -
Management fee -
related party 1,500 1,500 3,000 3,000
1,530 1,545 3,184 13,341
(Loss) from operations (1,522) (1,545) (3,165) (13,341)
before income taxes
Provision for income taxes - - - -
Net(Loss) $ (1,522) (1,545) (3,165) (13,341)
Other Comprehensive income
Unrealized (loss) on
securities (10,311) (9,842) 28,183 24,606
Total Comprehensive (loss) $ (11,833) $ (11,387)$ 25,018 $ 11,265
Net (loss) per common
share $ - $ - $ - $ -
Weighted average
common shares
outstanding 88,999,999 88,999,999 88,999,999 88,999,999
See accompanying notes to financial statements.
NEW HARVEST CAPITAL CORPORATION
(A Development Stage Corporation)
STATEMENTS OF CASH FLOWS
(Unaudited)
SIX MONTHS ENDED
OCTOBER 31,
2001 2000
Cash Flows from Operating Activities
Net (loss) $ (3,165) $(13,341)
Adjustments to reconcile net (loss)
to net cash used in operations:
Loss on securities sold 100 -
Changes in operating assets and liabilities
accrued expenses (3,000) 13,250
Net Cash (used in) Operating Activities (6,065) (91)
Cash Flows from Investing Activities
Proceeds from sale of Securities 6,000 -
(Decrease) in cash (65) (91)
Cash-beginning of period 3,063 234
Cash-end of period $ 2,998 $ 143
See accompanying notes to financial statements.
NEW HARVEST CAPITAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1.
The balance sheet as of October 31, 2001, the statements of
operations for the three month periods ended October 31, 2001 and
2000 and the statements of cash flows for the six month periods
ended October 31, 2001 and 2000, have been prepared by the Company,
without audit. In the opinion of management, all adjustments
necessary to present fairly the financial position, results of
operations and cash flows, as of October 31, 2001 and for all
periods presented have been made. The results of operations are not
necessarily indicative of the results to be expected for the full
year.
Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally
accepted accounting principles have been omitted. It is suggested
that these financial statements be read in conjunction with the
financial statements and notes thereto included in the Company's
Form 10-KSB for its fiscal year ended April 30, 2001, which was
filed with the Securities and Exchange Commission.
Note 2.
During the first six months of the current fiscal year, the
Company sold 10,000 shares of JLM Couture, Inc. to a related party
at a price of $1.60 per share (the Purchase Price"), the fair
market value thereof on the date of such sale. The proceeds of the
sale are payable to the Company at the rate of $2,000 per month.
As of October 31, 2001, $6,000 has been paid by the purchaser. The
shares sold to the related party are being held to secure payment
of the full Purchase Price. As of October 31, 2001, the Company
owns 68,740 shares of JLM Common Stock.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Results of Operations
Liquidity and Capital Resources
The Company had limited operations in both periods and lost
$1,522 for the three months ended October 31, 2001 and $1,545 for
the same period in the prior year. It lost $3,165 for the six
months ended October 31, 2001 and $13,341 for the same period in
the prior year.
Recent Accounting Pronouncements
In 1997, the Financial Accounting Standards Board issued SFAS
No. 130, "Reporting Comprehensive Income." This standard
establishes requirements for the reporting and display of
comprehensive income and its components in a full set of general
purpose financial statements. Comprehensive income is the total of
net income and all other nonowner changes in equity. The objective
of this statement is to report a measure of all changes in equity
of a company that result from transactions and other economic
events in the period other than transactions with owners. This
standard is effective for the Company's fiscal year beginning
November 1, 1998. The Company does not have any transactions other
than with owners. As such, disclosure of comprehensive income is
not necessary. As this statement relates solely to disclosure
provisions, the Company believes that the adoption of this standard
will not have an effect on its financial position or results of
operations.
In June 1997, the Financial Accounting Standards Board issued
SFAS No. 131, "Disclosures About Segments of an Enterprise and
Related Information," ("SFAS 131"). This pronouncement establishes
standards for companies to report information about operating
segments in financial statements based on the approach that
management utilizes to organize the segments within the company for
management reporting and decision making. In addition, SFAS No.
131 requires that companies report disclosures about products and
services, geographic areas and major customers. SFAS No. 131 is
effective for the Company's fiscal year beginning November 1, 1998.
Financial statement disclosures for prior periods are required to
be restated. As this statement relates solely to disclosure
provisions, the Company believes that the adoption of this
statement will not have an effect on its financial position or
results of operations.
Safe Harbor Statement
Statements which are not historical facts, including
statements about the Company's confidence and strategies and its
expectations about new and existing products, technologies and
opportunities, market and industry segment growth, demand and
acceptance of new and existing products are forward looking
statements that involve risks and uncertainties. These include,
but are not limited to, product demand and market acceptance risks;
the impact of competitive products and pricing; the results of
financing efforts; the loss of any significant customers of any
business; the effect of the Company's accounting policies; the
effects of economic conditions and trade, legal, social, and
economic risks, such as import, licensing, and trade restrictions;
the results of the Company's business plan and the impact on the
Company of its relationship with its lender.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
3.1 Articles of Incorporation of the Company, incorporated by
reference to Form S-18 Registration Statement No.
33-2034-NY (the Registration Statement").
3.2 Certificate of Renewal and Revival of Certificate of
Incorporation of the Company filed with the Delaware
Secretary of State on August 3, 2000.
3.3 The Company's By-Laws are incorporated by reference to
Exhibit 6 of the Registration Statement.
(b) Reports on Form 8-K.
None.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
NEW HARVEST CAPITAL CORPORATION
Registrant
By:/s/Joseph L. Murphy
Joseph L. Murphy, President
(Duly authorized officer)
Dated: January 11, 2002