SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the period ended June 30, 2000
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 0-31245
KAW ACQUISITION CORPORATION
(Exact name of registrant as specified in its charter)
Nevada 91-2048013
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
963 Valley View Drive
Meadowbrook PA 19046-1317
(Address of principal executive offices (zip code))
918-336-1773
(Registrant's telephone number, including area code)
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Securities registered pursuant to Section 12(b) of
the Exchange Act: NONE
Securities registered pursuant to Section 12(g) of
the Exchange Act: Common Stock:
$0.001 Per Share
Check whether the issuer: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding
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 No X
State the number of shares outstanding of each of
the issuer's class of common equity, as of March 27,
2003: 500,000 shares.
Transitional Small Business Disclosure Format:
Yes No X
PART I
Kaw Acquisition Corporation is in the process of
filing all of its periodic reports since its
inception with the Securities and Exchange
Commission. The periodic filings initially filed
erroneously stated that the Company's fiscal year
end was April 30 when, in fact, it has always been
December 31 and as such, the quarterly reports also
contained incorrect information.
ITEM 1. FINANCIAL STATEMENTS
KAW ACQUISITION CORPORATION
(A Development Stage Company)
BALANCE SHEET (Unaudited)
SEPTEMBER 30, 2001
ASSETS
Current Assets
Cash
$
500
---------------
Total Current Assets
$ 500
---------------
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
$
Stockholder's Equity
Common stock $.001 par value; 100 million
shares
authorized; 500,000 issued and
outstanding 500
Deficit accumulated during the development
stage
---------------
$ 500
---------------
$ 500
---------------
See notes to financial statements
KAW ACQUISITION CORPORATION
(A Development Stage Company)
Statements of Operations (Unaudited)
From
May 3, 2000
(Inception)
to June
30, 2000
----------
Net income
$
----------
Liabilities and Stockholder's Equity
Earnings per share
Net income per common share
$ --
----------
Weighted average of common shares
outstanding
----------
See notes to financial statements
KAW ACQUISITION CORPORATION
(A Development Stage Company)
Statement of Changes in Stockholder's Equity
(Unaudited)
From May 3, 2000 (Inception) to June 30, 2000s
Accumulated
through the
Common
Stock Paid in Development
Shares Amount Capital
Stage Total
---------- ---------- ----------
---------- ----------
Initial stock issuance,
on June 29, 2000 500,000 $ 500 $ --
$ -- $ 500
Net income, June 30,
2000
---------- ---------- ----------
---------- ----------
Balance June 30,
2000 500,000 $ 500 $
-- $ 500
---------- ---------- ----------
---------- ----------
See notes to financial statements
KAW ACQUISITION CORPORATION
(A Development Stage Company)
Statement of Cash Flows (Unaudited)
From May 3, 2000
(Inception) to
June
30, 2000
----------
Cash flows from operating activities
Net income
$
----------
Adjustments to reconcile net loss
to net cash used in operating
activities:
Net cash provided by operating
activities
$ --
----------
Cash flows from financing activities:
Net proceeds from issuance of
common stock
500
----------
Net cash provided by financing
activities
500
----------
Net increase in cash
500
----------
Cash, beginning of period
$ --
----------
Cash, end of period
$ 500
----------
See notes to financial statements
KAW ACQUISITION CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
Six Months Ended June 30, 2001
NOTE 1 UNAUDITED FINANCIAL STATEMENTS
The accompanying unaudited financial statements have
been prepared in accordance with generally accepted
accounting principles for interim financial
information and with the instructions to Form 10-Q
and Rule 310(b) of Regulation SB. Accordingly, they
do not include all of the information and footnote
disclosures normally included in complete financial
statements prepared in accordance with generally
accepted accounting principles. For further
information, including significant accounting
policies followed by the Company, refer to the notes
to the Company's audited financial statements at
December 31, 2000 - Form 10KSB.
The accounting policies followed for interim
financial reporting are the same as those disclosed
in Note 1 of the Notes to Financial Statements
included in the Company's audited financial
statements for the fiscal year ended December 31,
2000, which are included in Form 10-KSB.
In the opinion of management, the unaudited
financial statements include all necessary
adjustments (consisting of normal, recurring
accruals) for a fair presentation of the financial
position, results of operations and cash flow for
the interim periods presented. Preparing financial
statements requires management to make estimates and
assumptions that affect the reported amounts of
assets, liabilities, revenues and expenses. Actual
results may differ from these estimates. Interim
results are not necessarily indicative of results
for a full year. The results of operations for the
six-month period ended June 30, 2001, are not
necessarily indicative of operating results to be
expected for a full year.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING
PRINCIPLES
Business Description
The Company was formed to serve as a vehicle to
effect a merger, exchange of capital stock, asset
acquisition or other business combination with a
domestic or foreign private business.
The Company was incorporated in the State of Nevada
on May 3, 2000, as Kaw Acquisition Corporation.
The Company is considered to be in the development
stage and the accompanying financial statements
represent those of a development stage company.
Activity during the development stage included
organization of the Company, and implementation and
revision of the business plan.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the
Company treats all short-term investments with
maturities of three months or less at the date of
purchase to be cash equivalents.
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 of contingent
assets and liabilities at the date of the financial
statements and then reported amounts of revenues and
expenses during the reporting period. Actual
results could differ from those estimates.
Stock Options
The Company elected to account for stock options
issued to employees in accordance with Accounting
Principles Board Opinion No. 25 (APB Opinion No. 25)
Accounting For Stock Issued to Employees and related
interpretations, which established financial
accounting and reporting for compensation cost of
stock issued to employees through non-variable
plans, variable plans, and non-compensatory plans,
and accounts for stock options and warrants issued
to non-employees in accordance with SFAS 123,
Accounting For Stock-Based Compensation, which
established a fair value method of accounting for
stock compensation plans with employees and others.
Concentration of Risk
There were no cash balances at June 30, 2001, that
exceed federal insurance limits.
Basic Earnings (Loss) per Share
Basic earnings (loss) per share for each year is
computed by dividing income (loss) for the year by
the weighted average number of common shares
outstanding during the year. Diluted earnings
(loss) per share include the effects of common stock
equivalents to the extent they are dilutive.
Basic weighted average number of shares outstanding
at June 30, 2000, is as follows:
Basic weighted average number of shares
outstanding 500,000
NOTE 3 STOCKHOLDER'S EQUITY
Common Stock
The Company is authorized to issue 100,000,000
shares of common stock at $0.001 par value. On June
29, 2000, the Company issued 500,000 shares of
common stock for an aggregate consideration of $500.
NOTE 4 GOING CONCERN UNCERTAINTY
These financial statements are presented assuming
the Company will continue as a going concern. The
Company has no operating history, no established
source of revenue or earnings from operations, as
well as an accumulated deficit. This raises
substantial doubt about the Company's ability to
continue as a going concern. Management's plan in
regard to these matters includes active pursuit of
suitable business opportunities with which to
negotiate business combinations on terms favorable
to the Company.
NOTE 5 SUBSEQUENT EVENTS
Change in Registrant's Certifying Accountant.
On January 17, 2003, Kaw Acquisition Corporation
(the "Registrant") notified the accounting firm of
Magee, Rausch & Shelton, LLP, of Tulsa, Oklahoma
("MRS") that MRS had been replaced as the
Registrant's principal accountant. MRS reported on
and audited the financial statements prepared by the
Registrant for the period since inception (May 3,
2000) and ending July 15, 2000.
On October 25, 2002, the Registrant engaged the
accounting firm of James J. Taylor ("JJT") of New
Braunfels, Texas, as its principal accountant to
audit the financial statements prepared by the
Registrant for the current fiscal year and for its
past filings. The decision to change accountants
was recommended by the Company's Board of Directors
and was based on the recommendation of Special
Counsel to the Registrant to change as JJT would be
more accessible in the State of Texas to potential
merger candidates.
The financial statements reviewed as of July 15,
2000 and reported by MRS did not contain an adverse
opinion or a disclaimer of opinion, nor were
qualified or modified as to uncertainty, audit
scope, or accounting principles. Additionally,
during he Registrant's two most recent fiscal years
and any subsequent interim period preceding MRS'
dismissal, there were no disagreements with the
Registrant's former accountant on any matter of
accounting principles or practices, financial
statement disclosure, or auditing scope or
procedures. A copy of this disclosure has been
provided to MRS. A copy of MRS' letter addressed to
the Securities and Exchange Commission stating
whether it agrees with the statements made by the
Registrant contained in this Item 4 is attached to
this Report as an exhibit.
Other Events
The Board of Directors recommended to the Registrant
shareholders, and on September 30, 2002, the
shareholders of the Registrant approved, a
Resolution to amend the Registrant's Articles of
Incorporation to:
- - create a Class A Common Stock
from the authorized capital
stock consisting of 12,000,000
shares with a par value of
$0.001 per share,
- - create a Class B Common Stock
from the authorized capital
stock consisting of 88,000,000
shares with a par value of
$0.001 per share, and
- - add a preferred stock class
for 20.0 million additional
authorized shares.
PART II
OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS
There are no legal proceedings against the Company
and the Company is unaware of such proceedings
contemplated against it.
ITEM 2 CHANGES IN SECURITIES
Not applicable.
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4 SUBMISSION OF MATTER TO A VOTE
OF SECURITY HOLDERS
Not applicable.
ITEM 5 OTHER INFORMATION
Not applicable.
ITEM 6 EXHIBITS AND REPORTS
(a) Exhibits
EXHIBIT NUMBER DESCRIPTION
3.1 Articles of Incorporation (1)
99.3 Certification by the Company's
Chief Executive Officer and
Chief Financial Officer.*
(1) filed as an Exhibit to the Company's Form
10-SB, filed with the Securities and
Exchange Commission on August 7, 2000
* filed with this Form 10-QSB
There were no reports on Form 8-K filed by the
Company during the quarter.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KAW ACQUISITION CORPORATION
By: /s/ Peter R. Goss
Peter R. Goss
President
Dated: March 27, 2003
EXHIBIT 99.3
CERTIFICATION
I, Peter R. Goss, President, Chief Executive Officer
and Acting Chief Financial Officer of Kaw
Acquisition Corporation, certify that:
1. I have reviewed this quarterly report
on Form 10-Q of Kaw Acquisition Corporation;
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 the registrant as
of, and for the periods presented in this quarterly
report;
4. I am responsible for establishing and
maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for
the registrant and I have:
a. designed such disclosure controls
and procedures to ensure that material
information relating to the registrant,
including its consolidated subsidiaries, is
made known to me by others within those
entities, particularly during the period in
which this quarterly report is being prepared;
b. evaluated the effectiveness of the
registrant'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
my conclusions about the effectiveness of the
disclosure controls and procedures based on
my evaluation as of the Evaluation Date;
5. I have disclosed, based on my most
recent evaluation, to the registrant's auditors and
the audit committee of registrant's board of
directors (or persons performing the equivalent
function):
a. all significant deficiencies in the
design or operation of internal controls
which could adversely affect the registrant's
ability to record, process, summarize and
report financial data and have identified for
the registrant's 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 the
registrant's internal controls; and
6. 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 my most recent evaluation, including any
corrective actions with regard to significant
deficiencies and material weaknesses.
By: /s/ Peter R. Goss
Peter R. Goss
President, Chief Executive
Officer and Acting Chief Financial
Officer
Dated: March 27, 2003