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 June 30, 2002
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from ---- to -----
Commission File Number 0-49628
HERBALORGANICS.COM
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(Exact name of registrant as specified in its charter)
Nevada 88-0471263
- -------------------------- -----------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization Identification No.)
7171 - 121st St. #109, Surrey, B.C., Canada V3W 1G9
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(604) 649-5595
None
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Former Name, Address and 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 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
The number of shares outstanding of the registrant's common stock as
of June 30, 2002 was 1,800,000. Registrant's original registration
statement on Form 10SB and all exhibits thereto, filed under SEC
File Number 0-49628, on February 13, 2002, are incorporated herein
by reference.
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PART 1
Item 1. Financial Statements
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The financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
omitted. However, in the opinion of management, all adjustments
(which include only normal recurring accruals) necessary to present
fairly the financial position and results of operations for the period
presented have been made. The results for interim periods are not
necessarily indicative of trends or of results to be expected for the
full year. These financial statements should be read in conjunction
with the financial statements and notes thereto for the year ended
December 31, 2001. included in the Registrant's Form 10SB.
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HERBALORGANICS.COM
(A Development Stage Company)
Balance Sheet
June 30, 2002 (unaudited) and December 31, 2001
ASSETS
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June 30, 2002 December 31, 2001
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Cash $ 22,552 $ 27,067
- ---- ------------- ---------------
Total Current Assets 22,552 27,067
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Deferred Tax Asset (net) - -
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Total Assets $ 22,552 $ 27,067
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities
- ---------------------
Accounts payable $ 1,750 $ -
Accrued issuance costs - 595
Advance from stockholder 100 100
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Total Current and
Total Liabilities 1,850 695
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Commitments and Contingencies
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Stockholders' Equity
- --------------------
Preferred stock, $.01 par value,
10,000,000 shares authorized, no shares
issued and outstanding - -
Common Stock, $.001 par value,
25,000,000 shares authorized, 1,800,000
shares issued and outstanding 1,800 1,800
Additional Paid-In-Capital 38,795 38,200
Deficit accumulated during the
Development stage (19,893) (13,628)
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Total Stockholders' Equity 20,702 26,372
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Total Liabilities and
Stockholders' Equity $ 22,552 $ 27,067
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See Notes to the Interim Financial Statements
HERBALORGANICS.com
(A Development Stage Company)
Statement of Operations
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(Unaudited)
Cumulative
During For the Six For the Three
Development Months Months
Stage Ended 6/30/02 Ended 6/30/02
------------ ------------- --------------
Revenue $ - $ - $ -
Consulting expense (2,000) (2,000) (1,000)
Legal and accounting (8,750) (3,750) (1,750)
General and administrative
expenses (9,143) (515) (515)
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Net loss before income taxes (19,893) (6,265) (3,265)
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Provision for income tax - - -
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Net Los $ (19,893) $ (6,265) $ (3,265)
============ ============= =============
Loss per share
- - Basic and Diluted $ (0.01) $ 0.00 $ 0.00
============ ============= =============
Weighted average shares
outstanding-basic and diluted 1,348,718 1,800,000 1,800,000
============ ============= =============
See Notes to the Interim Financial Statements
HERBALORGANICS.com
(A Development Stage Company)
Statement of Cash Flows
-----------------------
(Unaudited)
Cumulative
During For the Six
Development Months Ended
Stage June 30, 2002
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Cash Flows from Operating Activities
- ------------------------------------
Net Loss $ (19,893) $ (6,265)
Adjustment to reconcile net loss to net:
Increase in accounts payable 1,750 1,750
Increase in deferred tax asset (6,764) (2,130)
Increase in deferred tax valuation allowance 6,764 2,130
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Net cash used in operating activities (18,143) (4,515)
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Cash Flows from financing Activities
- ------------------------------------
Proceeds received from issuance of stock 43,000 -
Issue costs paid (2,405) -
Advance from stockholder 100 -
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Net cash provided by financing activities 40,695 -
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Net Increase (decrease)in cash 22,552 (4,515)
Cash and cash equivalents at April
16, 1999 and December 31, 2001 - 27,067
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Cash and cash equivalents at
June 30, 2002 $ 22,552 $ 22,552
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Schedule of Supplemental Information:
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No amounts were actually paid for either interest or income taxes
during the quarter ended June 30, 2002.
See Notes to the Interim Financial Statements
HERBALORGANICS.COM
(A Company in the Development Stage)
NOTES TO THE FINANCIAL STATEMENTS
---------------------------------
June 30, 2002
1. Basis of Presentation
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The accompanying unaudited interim financial statements of
Herbalorganics.com (the "Company") have been prepared by the Company
in accordance with accounting principles generally accepted in the
United States of America, pursuant to the Securities and Exchange
Commission rules and regulations. In managements opinion all
adjustments necessary for a fair presentation of the results for interim
periods have been reflected in the interim financial statements. The
results of operations for any interim period are not necessarily
indicative of the results for a full year. All adjustments to the
financial statements are of a normal recurring nature.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. Such disclosures
are those that would substantially duplicate information contained in
the most recent audited financial statements of the Company, such as
significant accounting policies and stock options. Management
presumes that users of the interim statements have read or have access
to the audited financial statements and notes thereto included in the
Company's most recent annual report on Form 10SB12G. Prior year's
comparative quarter information is unavailable, as no interim financial
statements were prepared in the prior year.
New Pronouncements
- ------------------
In May 2002 the Financial Accounting Standards Board ('FASB') issued
Statement of Financial Accounting Standards ('SFAS') 145 "Rescission of
FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13,
and Technical Corrections". This pronouncement requires that gain or
losses arising from early extinguishments of debt that are part of a
company's recurring operations (i.e., a risk management strategy) would
not be reported as extraordinary items. The statements also provides
that modifications to a capital lease that make it an operating lease
be accounted for a sale-leaseback.
HERBALORGANICS.COM
(A Company in the Development Stage)
NOTES TO THE FINANCIAL STATEMENTS
---------------------------------
June 30, 2002
1. Basis of Presentation (continued)
---------------------------------
New Pronouncements (continued)
---------------------------------
Management feels that the early adoption of SFAS No. 145 has not had a
materialeffect on the financial results.
2. Going Concern
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These financial statements have been prepared assuming that the Company
will continue as a going concern. The Company is currently is the
development stage, and existing cash, other material assets, and
available credit may be insufficient to fund the Company's cash flow
needs for the next year. Their ability to continue as a going concern
is dependent on their ability to generate revenues or raise funds through
sale of their equity securities for use in administrative, marketing, and
research and development activities.
3. Accrued Issuance Costs
----------------------
Estimated issuance costs of $595 that had been accrued at December 31, 2001,
were reversed in the current quarter as all amounts due have been paid.
PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
A) The following exhibits required to be filed herein are
incorporated by reference and can be found in their entirety
in Registrant's original Form 10SB registration statement, filed on
February 13, 2002, under SEC File Number 0-49628:
<s> <c>
Exhibit No. Description
- ---------- -----------
3(i) Articles of Incorporation
3(ii) Bylaws
B) There were no reports on Form 8-K filed during the quarter.
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be
signed on its behalf the undersigned thereunto duly authorized.
HerbalOrganics.com,
a Nevada corporation (Registrant)
Dated: August 13, 2002 By:/s/ Thomas C. Whalen, President,
Secretary, Treasurer and Director
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