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 September 30, 2002
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from to
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Commission File Number: 0-49915
JavaJuice.net
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(Exact name of Registrant as specified in its charter)
Nevada 88-0474056
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(State or other jurisdiction (I.R.S. Employer
of incorporation or organization Identification No.)
150 Freeport Blvd., Suite 8
Sparks, Nevada 89431 (775) 849-5078
- --------------------------------- -----------------------------
(Address of principal executive (Registrant's telephone number,
offices) including area code)
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
September 30, 2002 was 1,700,000.
Registrant's common stock is listed on the OTC Bulletin Board under
the symbol "JAVJ".
Transitional Small Business Disclosure Format: Yes No X
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Part I - Financial Information
Item 1. Financial Statements
The interim financial statements for JavaJuice.net (the Company)were
included herein were prepared by management and are unaudited but were
reviewed by Clyde Bailey, P.C., our independent chartered account and
reflect, in management's opinion, all adjustments, consisting only of
normal recurring adjustments, that are necessary for a fair presentation
of the Company's financial position and the results of operations for
the interim periods presented. Because of the nature of the Company's
business, the results of operations for the three and nine months ended
September 30, 2002 are not necessarily indicative of the results that
may be expected for the full fiscal year.
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JavaJuice.net
Financial Statements
September 30, 2002
3
JavaJuice.net
(A Development Stage Enterprise )
Balance Sheet
September 30 December 31
2002 2001
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ASSETS
- ------
Current Assets
- --------------
Cash $ 34,693 $ 3,031
-------- ----------
Total Current Assets $ 34,693 $ 3,031
-------- ----------
Total Assets $ 34,693 $ 3,031
======== ==========
LIABILITIES
- -----------
Current Liabilities
- -------------------
Accounts Payable $ - $ -
-------- ----------
Total Current Liabilities $ - $ -
Total Liabilities - -
STOCKHOLDERS' EQUITY
- --------------------
Common Stock $ 1,700 $ 1,000
25,000,000 authorized shares,
par value $.001 1,700,000 and
1,000,000 shares issued and
outstanding
Additional Paid-in-Capital 38,300 4,000
Deficit accumulated during the (5,307) (1,969)
development stage -------- ---------
Total Stockholders' Equity 34,693 3,031
-------- ---------
Total Liabilities and
Stockholders' Equity $ 34,693 $ 3,031
========= =========
See accompanying notes to Financial Statements.
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JavaJuice.net
(A Development Stage Enterprise)
Statement of Operations
For the For the From
Three Months Nine Months Inception
Ended Ended (September 13, 2000)
September 30, 2002 September 30, 2002 to September 30, 2002
------------------- ------------------ ---------------------
Revenues:
- ---------
Revenues $ - $ - $ -
----------- ----------- -----------
Total Revenues
Expenses:
- ---------
Professional Fees - 800 1,600
Operating Expenses 227 2,538 3,707
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Total Expenses 227 3,338 5,307
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Net loss from Operations (227) $ (3,338) $ (5,307)
Provision for Income Taxes:
- ---------------------------
Income Tax Benefit - - -
Net Income (Loss) $ (227) $ (3,338) $ (5,307)
========== =========== ==========
Basic and Diluted Earnings
Per Common Share $ (0.00) $ (O.O0) $ (0.00)
---------- ----------- ----------
Weighted Average number of
Common Shares used in per
share calculations 1,700,000 1,466,666 1,175,000
========== =========== ==========
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JavaJuice.net
(A Development Stage Enterprise)
Statement of Stockholders' Equity
Deficit
Accumulated
$0.001 Paid-In During the Stockholders'
Shares Par Value Capital Development Stage Equity
-----------------------------------------------------------
Balance, September
13, 2000, Date of
Inception - - $ - $ - $ -
Stock Issued for
Cash 1,000,000 1,000 4,000 - 5,000
Net Income (Loss) (1,969) (1,969)
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Balance December
31, 2001 1,000,000 1,000 $ 4,000 $ (1,969) $ 3,031
============================================================
Stock Issued for
Cash 700,000 700 34,300 35,000
Net Income (Loss) (3,338) (3,338)
------------------------------------------------------------
Balance
September 30, 2002 1,700,000 $1,700 $ 38,300 $ (5,307) $ 34,693
============================================================
See accompanying notes to Financial Statements.
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Java.Juice.net
(A Development Stage Enterprise}
Statement of Cash Flows
For the Nine From Inception
Months Ended (September 13, 2000)
September 30, 2002 to September 30, 2002
------------------ ---------------------
Cash Flows from Operating Activities:
- ------------------------------------
Net Income (Loss) $ (3,338) $ (5,307)
Accounts Payable - -
---------- -----------
Net Cash Provided from Operating
Activities (3,338) (5,307)
---------- -----------
Cash Flows from Investing Activities:
- -----------------------------------
Other Assets - -
---------- -----------
Net Cash Used in Investing Activities - -
---------- -----------
Cash Flows from Financing Agtivities:
Sales of Common Stock 35,000 40,000
---------- -----------
Net Cash Provided from Financing Activities 35,000 40,000
---------- -----------
Net Increase in Cash 31,662 34,693
---------- -----------
Cash Balance, Begin Period 3,031 -
Cash Balance, End Period $ 34,693 $ 34,693
========== ===========
Supplemental Disclosures:
Cash Paid for interest $ - $ -
Cash Paid for income taxes $ - $ -
========== ===========
See accompanying notes to Financial Statements.
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JavaJuice.net
Notes to Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
- ------------
JavaJuice.net (the Company) was incorporated under the laws of the
State of Nevada on September 13, 2001 for the purpose to promote and
carry on any lawful business for which a corporation may be incorporated
under the laws of the State of Nevada. The company has a total of
25,000,000 authorized shares with a par value of $.001 per share and
with 1,700,000 shares issued and outstanding as of September 30, 2002.
The Company has been inactive since inception and has little or no
operating revenues or expenses.
Development Stage Enterprise
- ----------------------------
The Company is a development stage enterprise, as defined in Financial
Accounting Standards Board No. 7. The Company is devoting all of its
present efforts in securing and establishing a new business, and its
planned principal operations have not commenced, and, accordingly, no
revenue has been derived during the organizational period.
Federal Income Tax
- ------------------
The Company has adopted the provisions of Financial Accounting Standards
Board Statement No. 109, Accounting for Income Taxes. The Company accounts
for income taxes pursuant to the provisions of the Financial Accounting
Standards Board Statement No. 109, Accounting for Income Taxes, which
requires an asset and liability approach to calculating deferred income
taxes. The asset and liability approach requires the recognition of
deferred tax liabilities and assets for the expected future tax
consequences of temporary differences between the carrying amounts and
the tax basis of assets and liabilities.
Use of Estimates
- ----------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure on contingent assets and liabilities at the
date of the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
Accounting Method
- -----------------
The Company's financial statements are prepared using the accrual method
of accounting. Revenues are recognized when earned and expenses when
incurred. Fixed assets are stated at cost. Depreciation and amortization
using the straight-line method for financial reporting purposes and
accelerated methods for income tax purposes.
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JavaJuice.net
Notes to Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Earnings per Common Share
- -------------------------
The Company adopted Financial Accounting Standards (SFAS) No. 128,
Earnings Per Share, which simplifies the computation of earnings per
share requiring the restatement of all prior periods.
Basic earnings per share are computed on the basis of the weighted
average number of common shares outstanding during each year.
Diluted earnings per share are computed on the basis of the weighted
average number of common shares and dilutive securities outstanding.
Dilutive securities having an anti-dilutive effect on diluted earnings
per share are excluded from the calculation.
Cash and Cash Equivalents
- -------------------------
The Company considers all highly liquid debt instruments with a maturity
of three months or less at the time of purchase to be cash equivalents.
Cash and cash equivalents consist of checking accounts and money market
funds.
Fair Value of Financial Instruments
- -----------------------------------
The carrying amounts of financial instruments including cash and cash
equivalents, accounts receivable and payable, accrued and other current
liabilities and current maturities of long-term debt approximate fair
value due to their short maturity.
Recent Accounting Pronouncements
- --------------------------------
In June 1998, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 133, Accounting for Derivative
Investments and Hedging Activities (SFAS No 133) which establishes
accounting and reporting standards requiring that every derivative
instrument be recorded in the balance sheet as either an asset or
liability measured at its fair value. The statement also requires that
changes in the derivative's fair value be recognized in earnings unless
specific hedge accounting criteria are met. SFAS No. 133, as extended
by SFAS No. 137 and amended by SFAS No. 138, is effective for all fiscal
quarters beginning after June 15, 2001. The Company does not expect
adoption of SFAS No. 133 to have an effect on its financial statements.
In December 1999, the Securities and Exchange Commission issues Staff
Accounting Bulletin No. 101, Revenue Recognition in Financial
Statements (SAB 101, which provides guidance on the recognition,
presentation and disclosure of revenue in financial statements of all
public registrants. The provisions of SAB 101 are effective for
transactions beginning in fiscal year after September 30, 2001. The
Company does not expect adoption of SAB 101 to have an effect on its
financial statements.
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JavaJuice.net
Notes to Financial Statements
NOTE 2 - COMMON STOCK
A total of 1,000,000 shares of stock were issued pursuant to a stock
subscription agreement for $0.005 per share for a total of $5,000 to
the original officer and director.
In March of 2002 the company completed a 504 offering whereby 700,000
shares of common stock was sold for $35,000.
NOTE 3 - RELATED PARTIES
The sole officer and director of the Company is providing the business
office on a rent-free basis and has done all of the research
and development for establishing the business plans of the Company;
she does not receive a salary. The Company has not yet formulated a
policy for the resolution of any conflicts with related parties should
they arise.
NOTE 4 - INCOME TAXES
Deferred income taxes arise from temporary differences resulting from
the Company's subsidiary utilizing the cash basis of accounting for
tax purposes and the accrual basis for financial reporting purposes.
Deferred taxes are classified as current or non-current, depending on
the classification of the assets and liabilities to which they relate.
Deferred taxes arising from timing differences that are not related to
an asset or liability are classified as current or non-current depending
on the periods in which the timing differences are expected to reverse.
The Company's previous principal temporary differences relate to revenue
and expenses accrued for financial purposes, which are not taxable for
financial reporting purposes. The Company's material temporary
differences consist of bad debt expense recorded in the financial
statements that is not deductible for tax purposes and differences in
the depreciation expense calculated for financial statement purposes
and tax purposes.
NOTE 5 - SUBSEQUENT EVENTS
There were no other material subsequent events that have occurred
since the balance sheet date that warrants disclosure in these
financial statements.
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Item 2. Management's Discussion and Analysis or Plan of Operation.
Plan of Operation
- -----------------
Registrant expects its current cash in the bank to satisfy its cash
requirements for business operations for at least the next 12 months
without having to raise additional funds or seek bank loans.
For the period from inception to the nine months ended September 30,
2002, Registrant had not yet generated any revenues or expended any
significant amount of money for research and development. During the
next 12 months, Registrant does not intend to purchase any
significant property or equipment. Registrant is still in the
development stage and is continuing development of its eXmailit
software.
Results of Operations
- ---------------------
For the three and nine months ended September 30, 2002, Registrant
had no revenues and incurred net operating losses of $237 and
$3,338,respectively, all of which comprised general and administrative
expenses.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A) The following exhibits marked with an asterisk and required
to be filed herein are incorporated by reference to Registrant's
Form 10SB, filed with the Commission on July 15, 2002 under
CIK Number 0001177326 and SEC File Number 0-49915:
Exhibit No. Description
- ----------- -----------
* 3(i) Articles of Incorporation
* 3(ii) Bylaws
99 Sec. 906 Certifications
B) There were no reports on Form 8-K filed during the quarter.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
JavaJuice.net
------------------------
Dated: November 14, 2002 By:/s/ Laura P. Mazany
President, CEO, Treasurer, CFO,
Secretary and Chairman of the
Board of Directors
CERTIFICATION PURSUANT TO SECTION 302 OF THE ACT
------------------------------------------------
I, Laura P. Mazany, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of JavaJuice.
net.
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect
to the period covered by this quarterly report.
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of JavaJuice.net as of, and for, the periods
presented in this quarterly report.
4. JavaJuice.net's other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-14 and 15d-14) for JavaJuice.net
and have:
(a) designed such disclosure controls and procedures to
ensure that material information relating to JavaJuice.net,
including its consolidated subsidiaries, is made known to
us by others within those entities, particularly during
the period in which this quarterly report is being prepared;
(b) evaluated the effectiveness of JavaJuice.net's
disclosure controls and procedures as of a date within
90 days prior to the filing date of this quarterly report
(the "Evaluation Date"); and
(c) presented in this quarterly report our conclusions
about the effectiveness of the disclosure controls and
procedures based on our evaluation as of the Evaluation Date;
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5. The other certifying officers and I have disclosed, based on our
most recent evaluation, to our auditors and the audit committee of our
Board of Directors (or persons performing the equivalent functions):
(a) all significant deficiencies in the design or operation of
internal controls which could adversely affect our ability to
record, process, summarize and report financial data and have
identified for our auditors any material weaknesses in internal
controls; and
(b) any fraud, whether or not material, that involves management
or other employees who have a significant role in our internal
controls.
6. The other certifying officers and I have indicated in this quarterly
report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies
and material weaknesses.
November 14, 2002 /s/ Laura P. Mazany
-------------------------------------------
By: Laura P. Mazany, Chief Executive Officer
and Chairman of the Board of Directors
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