United States
Securities and Exchange Commission
Washington, DC 20549
FORM 10Q SB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2002
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE
EXCHANGE ACT
Commission file Number 333 - 32564
XUNANTUNICH INC.
Exact name of small business issuer as specified in its charter
Nevada 76-0602960
(State or other jurisdiction of I.R.S. Employer Identification No.
incorporation or organization)
3e - 2775 Fir Street, Vancouver, BC V2X 4B4 Canada
(Address of principal executive office)
(604) 734-3546
Issuer's telephone number
NA
(Former name, former address and former fiscal year, if changed
since last report)
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PAST FIVE YEARS
Check whether the registrant filed all documents and reports
required
To be filed by Section 12, 13 or 15 (d) of the Exchange Act after
the distribution of
Securities under a plan confirmed by a court. Yes ____ No ____
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the Issuer's
common equity as of the last practicable date: 1,350,000 shares
Transitional Small Business Disclosure Format (check one) Yes ___ No X
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
Financial Statements for the three month and six month periods ending
June 30, 2002 follow:
XUNANTUNICH INC.
(A DEVELOPMENT STAGE ENTERPRISE)
BALANCE SHEET
AS AT SEPTEMBER 30, 2002
(PREPARED BY MANAGEMENT)
ASSETS
CURRENT ASSETS: $ 0
TOTAL ASSETS 0
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
DUE TO RELATED PARTY 8,820
STOCKHOLDERS' EQUITY:
COMMON STOCK, $0.001 PAR
VALUE; 100,000,000 SHARES
AUTHORIZED AND 5,250,000 SHARES
ISSUED AND OUTSTANDING 2,750
ADDITIONAL PAID-IN CAPITAL 11,284
DEEMED DIVIDEND RE:
LICENSE RIGHTS (2,000)
(DEFICIT) ACCUMULATED DURING
THE DEVELOPMENT STAGE
(20,854)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) ( 8,820)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 0
SEE ATTACHED NOTES
XUNANTUNICH INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF OPERATIONS FOR THE THREE MONTH
AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2002 AND 2001
(PREPARED BY MANAGEMENT)
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
2002 2001 2002 2001
REVENUES: $ 0 $ 0 $ 0 $ 0
OPERATING EXPENSES
OFFICE EXPENSES AND FILING FEES 350 0 610 800
LEGAL AND ACCOUNTING 250 0 710 6,700
TOTAL OPERATING EXPENSES 600 0 1,320 7,500
NET (LOSS) FOR THE PERIOD $ ( 600) $ ( 0) $ (1,320) $(7,500)
NET (LOSS) PER SHARE $ ( 0.00) $( 0.00) $ (0.00) $( 0.00)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 5,250,000 5,250,000 5,250,000 5,250,000
SEE ATTACHED NOTES
XUNANTUNICH INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTH PERIODS
ENDED SEPTEMBER 30, 2002 AND 2001
(PREPARED BY MANAGEMENT)
NINE MONTHS ENDED
SEPTEMBER 30
2002 2001
CASH FLOWS FROM (BY) OPERATING ACTIVITIES:
NET (LOSS) FOR THE PERIODS $ ( 1,320) $ (7,500)
LESS INCREASE IN AMOUNTS
DUE TO RELATED PARTY 1,320 7,500
NET CASH FROM (BY) OPERATING ACTIVITIES 0 0
CASH FLOWS FROM (TO) INVESTING ACTIVITIES 0 0
CASH FLOWS FROM (TO) FINANCING ACTIVITIES: 0 0
INCREASE (DECREASE) IN CASH 0 0
CASH, BEGINNING OF PERIOD 0 0
CASH, END OF PERIOD $ 0 $ 0
SEE ATTACHED NOTES
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(PREPARED BY MANAGEMENT)
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance
with US Securities and Exchange Commission ("SEC") requirements for
interim financial statements. Therefore, they do not include all of
the information and footnotes required by generally accepted
accounting principles for complete financial statements. The financial
statements should be read in conjunction with the year ended December
31, 2001 financial statements of Xunantunich Inc.
The results of operations for the interim period shown in this report
are not necessarily indicative of the results to be expected for the
full year. In the opinion of management, the information contained
herein reflects all adjustments necessary to make the results of
operations for the interim periods a fair statement of such operation.
All such adjustments are of a normal recurring nature.
NOTE 2 - RELATED PARTY TRANSACTIONS
The Company has entered into an agreement made effective July 1, 1999
with David R. Mortenson & Associates (Grantor) to receive the rights
to distribute the water treatment products developed by NW
Technologies, Inc. for the States of Arizona and Nevada. Minimum
purchase requirements were $125,000 the first year and $175,000 the
second year.
On July 6, 1999 the Company filed a Form D pursuant to Section 3(b) of
the Securities Act and Rule 504 promulgated thereunder, with the
Securities and Exchange Commission registering the issuance of 200,000
shares of common stock to each of the ten general partners of David R.
Mortenson and Associates, a Texas general Partnership. The shares
were issued at a price of $0.001 per share being the par value per
share for a total of $2,000 in exchange for the water remediation
license. The water remediation license is recorded a cost of $NIL,
being the original cost of the license to David R. Mortenson and
Associates. The difference between the issue price of the shares and
the cost of the license is recorded as a deemed dividend.
The agreement with David R. Mortenson & Associates was entered into by
previous management.
In December, 1999 N.W. Technologies, Inc. unilaterally cancelled its
contract with David Mortenson & Associates. Early in the year 2000
David Mortenson & Associates laid suit against N.W. Technologies, Inc.
in Harris County Court, Texas.
In the opinion of management, the Company has no direct or indirect
interest in the Texas lawsuit
In a letter dated January 5, 2000 David Mortenson & Associates
suspended all present and future payments under the License Agreement
until their dispute with N.W. Technologies is resolved.
Due to the dispute regarding the water remediation license, David R.
Mortenson and Associates gave and additional license to the Company on
January 20, 2000. The license is to distribute vitamins, minerals,
herbs and other health products and supplements via the Internet. The
license calls for a 10% add-on for all products purchased and an
annual $500 website maintenance fee. The effective date of the
License Agreement was January 3, 2000. The license is for an initial
three years from the effective date and is automatically renewable
unless either party to the license agreement gives ninety days written
notice of non-renewal prior to expiration date. No amounts have been
recorded in these financial statements regarding the granting of the
license.
Dorothy Mortenson is the wife of David R. Mortenson. She is an
original incorporator of the Company and served as Corporate Secretary
until January 17, 2000 when her shares were purchased by present
management. David R. Mortenson is a principal in both David Mortenson
& Associates and VitaMineralHerb.com. Neither Mr. nor Mrs. Mortenson
own or have owned any of the Company's securities since November 24,
1999. Outside of his association with VitaMineralHerb.com, Mr.
Mortenson has no connection with Xunantunich. As a result, management
considers that he is at arms length with the Company.
Due to related party as at September 30, 2002 $8,820
Item 2. Management's Discussion and Analysis or Plan of Operation.
Xunantunich Inc. has a three-year license to market and sell vitamins,
minerals, nutritional supplements, and other health and fitness
products to medical professionals, alternative health professionals,
martial arts studios and instructors, sports and fitness trainers,
other health and fitness professionals, school and other fund raising
programs and other similar types of customers. All of these
individuals and organizations will order their products via the
Internet for sale to their clients. The license will be automatically
renewed unless the Company or VitaMineralHerb.com gives the other
notice of its intent not to renew.
As a licensee of VitaMineralHerb.com, Xunantunich Inc. eliminates the
need to develop products, store inventory, build and maintain a
website, establish banking liaisons, and develop a fulfillment system,
thereby enabling us to focus strictly on marketing and sales. The
Company plans to target health and fitness professionals in the
Province of Alberta, Canada who wish to offer health and fitness
products to their customers.
Xunantunich (and its customers) will have access to all products
offered on the VitaMineralHerb.com website, as well as the ability to
order custom-formulated and custom-labeled products.
VitaMineralHerb.com sets the price for products based on the
manufacturer's price, plus a markup that provides a 10% commission to
VitaMineralHerb.com and a profit for Xunantunich Inc.
(b) Management's discussion and analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
Xunantunich Inc. remains in the development stage and, since
inception, has experienced some small expenses for the preparation of
financial statements and periodic reports as required by the
Securities Exchange Act of 1934. Consequently, our balance sheet for
the period ending June 30, 2000 reflects current assets of $ 0.00 in
the form of cash, and total assets of $ 0.00.
We will carry out our plan of business as discussed above. We cannot
predict to what extent liquidity and capital resources will be
diminished prior to the consummation of a business combination.
We believe that our existing capital will not be sufficient to meet
our cash needs, including the costs of compliance with the continuing
reporting requirements of the Securities Exchange Act.
As a result, we believe that we must do all or part of the self
underwritten offering contained in the recently effective registration
statement filed by the Company in order to have the funds necessary to
proceed with our business plan.
No commitments to provide additional funds have been made by
management or other stockholders. Accordingly, there can be no
assurance that any additional funds will be available.
Irrespective of whether the cash assets prove to be inadequate to
meet operational needs, the Company might seek to compensate providers
of services by issuances of stock in lieu of cash.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Securities Holders
None
Item 6. Exhibits and Reports on Form 8K
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
XUNANTUNICH INC.
Dated November 13, 2002 /S/ Mark Cramer
Mark Cramer, President and Director
/S/ Florence Cramer
Florence Cramer,
Secretary/Treasurer and Director