United 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 First Quarterly Period ended August 31, 2002
Commission File Number: 000-31759
FIRST AUTO, INC.
Nevada 88-0423037
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
3131 Southwest Freeway, Number 36, Houston TX 77098
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 949-487-7295
As of August 31, 2002, the number of shares outstanding
of the Registrant's Common Stock was 8,281,500.
Transitional Small Business Disclosure Format (check one): yes [ ] no [X]
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
The financial statements, for the three and six months ended August 31,
2002, 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 footnotes disclosure normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations, although the
Company believes that the disclosures are adequate to make the information not
misleading.
The Remainder of this Page is Intentionally left Blank
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FIRSTAUTO, INC.
(a Development Stage Company)
BALANCE SHEETS
August 31, February 28,
2002 2002
---------- ----------
ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 597 $ 607
---------- ----------
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . 597 607
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . $ 597 $ 607
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable - related party . . . . . . . . . . . $ 121,201 $ 93,350
Note payable - related party . . . . . . . . . . . . . 1,700 1,700
---------- ----------
Total Liabilities. . . . . . . . . . . . . . . . . . . . $ 122,901 $ 95,050
---------- ----------
STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; authorized 100,000,000
shares; issued and outstanding, 8,281,500 shares. . 8,282 $ 8,282
Additional Paid-In Capital . . . . . . . . . . . . . . 145,035 145,035
Accumulated Equity (Deficit) . . . . . . . . . . . . . (275,621) (247,760)
---------- ----------
Total Stockholders' Equity . . . . . . . . . . . . . . . (122,304) (94,443)
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . $ 597 $ 607
========== ==========
The accompanying notes are an integral part of these financial statements.
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FIRSTAUTO, INC.
(a Development Stage Company)
STATEMENTS OF OPERATIONS (UNAUDITED)
From
Inception on
From June From June From March From March March 24,
1, 2002 to 1, 2001 to 1, 2002 to 1, 2001 to 1999 through
August 31, August 31, August 31, August 31, August 31,
2002 2001 2002 2001 2002
----------- ----------- ----------- ----------- -----------
Revenues. . . . . . . . . $ -0- $ -0- $ -0- $ -0- $ -0-
----------- ----------- ----------- ----------- -----------
Net Loss from Operations. 21,601 7,930 27,861 15,760 275,621
----------- ----------- ----------- ----------- -----------
Net Income (Loss) . . . . $ (21,601) $ (7,930) $ (27,861) $ (15,760) $ (275,621)
=========== =========== =========== =========== ===========
Loss per Share. . . . . . $ (0.00) $ (0.00) $ (0.00) $ (0.00) $ (0.03)
=========== =========== =========== =========== ===========
Weighted Average
Shares Outstanding. . 8,281,500 7,981,500 8,281,500 7,981,500 7,882,500
=========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
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FIRSTAUTO, INC.
(a Development Stage Company)
STATEMENTS OF CASH FLOW (UNAUDITED)
From
Inception on
From March From March March 24,
1, 2002 to 1, 2001 to 1999 through
August 31, August 31, August 31,
2002 2001 2002
--------- --------- ----------
Operating activities
Net Income (Loss) . . . . . . . . . $(27,861) $(15,760) $(275,621)
Items not effecting cash
Stock issued for services . . . . . 0 0 36,817
Increase in accounts receivable . . 0 (4,400) 0
Increase in accounts payable. . . . 27,851 17,438 121,201
--------- --------- ----------
Net Cash from Operations. . . . . . (10) (2,722) (117,603)
--------- --------- ----------
Cash from financing activities
Proceeds from note payable. . . . . 0 0 1,700
Cash from sale of common stock. . . 0 0 116,500
--------- --------- ----------
Net Cash from financing activities. 0 0 118,200
--------- --------- ----------
Increase (Decrease) in Cash . . . . (10) (2,722) 597
Beginning Cash. . . . . . . . . . . 607 3,329 0
--------- --------- ----------
Ending Cash . . . . . . . . . . . . $ 597 $ 607 $ 597
========= ========= ==========
Cash Paid For:
Interest. . . . . . . . . . . . . . $ 0 $ 0 $ 0
Taxes . . . . . . . . . . . . . . . $ 0 $ 0 $ 0
Non-Cash Financing Activities
The Company issued 6,816,500 shares of common stock for organization costs.
These costs were valued at $6,817 and expensed in 1999.
The Company issued 300,000 shares of common stock for services. These costs
were valued at $30,000 and expensed in September 2001.
The accompanying notes are an integral part of these financial statements.
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FIRSTAUTO, INC.
(A Development Stage Company)
Notes to the Financial Statements
August 31, 2002
NOTES TO FINANCIAL STATEMENTS
FirstAuto, Inc. ("the Company") has elected to omit substantially all footnotes
to the financial statements for the period ended August 31, 2002, since there
have been no material changes (other than indicated in other footnotes) to the
information previously reported by the Company in their Annual Report filed on
Form 10-KSB for the Fiscal year ended February 28, 2002.
UNAUDITED INFORMATION
The information furnished herein was taken from the books and records of the
Company without audit. However, such information reflects all adjustments which
are, in the opinion of management, necessary to properly reflect the results of
the period presented. The information presented is not necessarily indicative
of the results from operations expected for the full fiscal year.
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ITEM 2. DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
(A) PLAN OF OPERATION. Our Plan of Operation and Financial requirements are
unchanged from our previous Quarterly Report, except that current market and
economic conditions have resulted in a period of delay, in start-up.
There is no assurance that our funding plans will be realized or that our
requirements will be met. If we are not able to achieve this requirement, we may
not be able to become or continue as a going concern. In this connection we
refer to Note 2 of our previous audited financial statements: "The accompanying
financial statements have been prepared assuming that the Company will continue
as a going concern. The Company is dependent upon raising capital to continue
operations. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty. It is management's plan to raise
capital in order to define their operations, thus creating operating revenues."
We further refer to Note 3: "The Company is a development stage company as
defined in Financial Accounting Standards Board Statement 7. It is concentrating
substantially all its efforts in raising capital and developing its business
operations in order to generate significant revenues.
We do not anticipate any contingency upon which we would voluntarily cease
filing reports with the SEC, even though we may cease to be required to do so.
It is in our compelling interest to report our affairs quarterly, annually and
currently, as the case may be, generally to provide accessible public
information to interested parties, and also specifically to maintain its
qualification for the OTCBB, if and when the Issuer's intended application for
submission be effective.
(2) SUMMARY OF PRODUCT RESEARCH AND DEVELOPMENT. None.
(3) EXPECTED PURCHASE OR SALE OF PLANT AND SIGNIFICANT EQUIPMENT. None.
(4) EXPECTED SIGNIFICANT CHANGE IN THE NUMBER OF EMPLOYEES. None for the
present. Following launch of operations, we would expect to require a staff of
employees. The number required would grow as our operations might grow.
(B) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
We have enjoyed no revenues since inception. We had no expenses during this
reporting quarter.
(C) FUTURE PROSPECTS. We have disclosed an ambitious business plan. There can
be no assurance that our plan will succeed in whole or in part. We may not be
able to achieve our funding requirements. Even if substantial funding proves
available, there is no assurance that our business will prove competitive or
profitable. Our business may fail for any number of possible unforeseen
contingencies. Start-up ventures such as ours are inherently speculative and
fraught with risks of business failure. While management believes that its plan
contains the strategy for success, the road to failure is filled with good
intentions and missed opportunities. Caution must be expressed at this early
stage of our development, that we may be disappointed in our expectations.
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PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS. None
ITEM 2. CHANGE IN SECURITIES. None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS. None
ITEM 5. OTHER INFORMATION. None
ITEM 6. REPORTS ON FORM 8-K. None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-Q Report for the second Quarter ended August 31, 2002, has been signed
below by the following person on behalf of the Registrant and in the capacity
and on the date indicated.
By signing this Quarterly Report, the undersigned hereby certify: (1) This
Report fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and (2) The information contained in the Report
fairly presents, in all material respects, the financial condition and result of
operations of the Company.
Dated: October 3, 2002
FIRST AUTO, INC.
by
/s/J. Dan Sifford=
J. Dan Sifford
President/Director
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EXHIBIT A2
CONSENT OF OFFICER
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CERITIFICATION PURSUANT TO 18 USC SECTION 1350
In connection with this Quarterly Report on Form 10-QSB, I, J. Dan Sifford,
president/director of this Registrant Company, hereby certify(s), to the best of
my knowledge and belief:
(1) This report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
(2) The information contained in this report fairly presents, in all material
aspects, the financial condition and results of operations of this Registrant
Company.
Dated: October 7, 2002
/s/J. Dan Sifford
J. Dan Sifford
president/director
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