1
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 Quarter Ended: March 31,2002
[ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the Transition Period from _____________ to ____________
Commission File Number 0-25951
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BARBECUE CAPITAL CORP.
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(Name of Small Business Issuer in its charter)
Nevada 86-0852222
- ------------------------------- --------------------------
(State or other jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
8800 North Gainey Ranch Center Drive, Suite 256, Scottsdale, Arizona 85258
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(Address of principal executive offices and Zip Code)
(480) 453-0851
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (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.
(1) Yes X No (2) Yes X No
--- --- --- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, Par Value $0.001 1,023,000
- -------------------------------- ----------------------------
Title of Class Number of Shares Outstanding
as of May 9, 2002
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PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BARBECUE CAPITAL CORP.
FINANCIAL STATEMENTS
(UNAUDITED)
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 condensed or 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 periods presented have been made. These
financial statements should be read in conjunction with the accompanying
notes, and with the historical financial information of the Company.
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BARBECUE CAPITAL CORP.
(A Development Stage Company)
Balance Sheets
ASSETS
March 31, December 31,
2002 2001
----------- -----------
(Unaudited)
CURRENT ASSETS
Cash $ - $ -
----------- -----------
Total Current Assets - -
----------- -----------
TOTAL ASSETS $ - $ -
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 16,689 $ 14,921
Accounts payable - related party (Note 5) 7,918 7,918
------------ ----------
TOTAL LIABILITIES 24,,607 22,839
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STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.001 par value,
authorized 25,000,000 shares;
1,023,000 shares issued and outstanding 1,023 1,023
Additional paid-in capital 50,371 50,371
Deficit accumulated during the development
stage (76,001) (74,233)
----------- ---------
Total Stockholders= Equity (Deficit) (24,607) (22,839)
----------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ - $ -
=========== =========
The accompanying notes are an integral part of these financial statements.
4
BARBECUE CAPITAL CORP.
(A Development Stage Company)
Statements of Operations
(Unaudited)
From
For the Inception on
Three Months Ended December 18,
March 31, 1996 Through
---------------------- March 31,
2002 2001 2002
------- ------ -----------
REVENUE $ - $ - $ -
EXPENSES 1,768 1,188 76,001
--------- --------- ------------
NET LOSS $ (1,768) $ (1,188) $ (76,001)
========= ========= ============
BASIC LOSS PER
SHARE $ (0.00) $ (0.00)
======== ========
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING 1,023,000 1,023,000
========= =========
The accompanying notes are an integral part of these financial statements.
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BARBECUE CAPITAL CORP.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
Deficit
Accumulated
Common Stock Additional During the
--------------------- Paid-In Development
Shares Amount Capital Stage
---------- --------- ---------- -----------
Inception,
December 18, 1996 - $ - $ - $ -
Common stock issued
for cash at $.02 per share 500,000 500 9,500 -
Net loss from inception
on December 18, 1996
through December 31, 1996 - - - -
-------- --------- --------- ----------
Balance,
December 31, 1996 500,000 500 9,500 -
Net loss for the year
ended December 31, 1997 - - - (458)
-------- --------- --------- ----------
Balance,
December 31, 1997 500,000 500 9,500 (458)
Common stock issued for
cash at $0.10 per share 523,000 523 51,777 -
Stock offering costs - - (10,906) -
Net loss for the year
ended December 31, 1998 - - - (13,186)
--------- ------- --------- ----------
Balance,
December 31, 1998 1,023,000 1,023 50,371 (13,644)
Net loss for the year
ended December 31, 1999 - - - (30,724)
--------- -------- -------- -----------
Balance,
December 31, 1999 1,023,000 1,023 50,371 (44,368)
Net loss for the year
ended December 31, 2000 - - - (11,918)
--------- --------- -------- ----------
Balance, December 31, 2000 1,023,000 1,023 50,371 (56,286)
Net loss for the year
ended December 31, 2000 - - - (17,947)
--------- --------- -------- ----------
Balance December 31, 2001 1,023,000 1,023 50,371 (74,233)
Net Loss for the three
months ended
March 31, 2002 (unaudited) - - - (1,768)
--------- --------- -------- ----------
Balance, March 31, 2002
(unaudited) 1,023,000 $ 1,023 $ 50,371 $ (76,001)
=========== ========= ========= ===========
The accompanying notes are an integral part of these financial statements.
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BARBECUE CAPITAL CORP.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
From
For the Inception on
Three Months Ended December 18,
March 31, 1996 Through
------------------------ March 31,
2002 2001 2002
---------- -------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (1,768) $ (1,188) $ (76,001)
Adjustments to reconcile net
loss to net cash (used) by
operating activities:
Amortization expense - - 495
Disposal of prototype - - 1,500
Change is operating assets
and liabilities:
Increase (decrease) in
accounts payable and accounts
payable - related party 1,768 (1,188) 24,607
---------- ---------- ----------
Net Cash (Used) by Operating
Activities - - (49,399)
---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Development of prototype - - (1,500)
Organization costs incurred - - (495)
---------- ---------- ----------
Net Cash (Used) by Investing
Activities - - (1,995)
---------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Stock offering costs - - (10,906)
Issuance of common stock for cash - - 62,300
---------- ---------- ----------
Net Cash Provided by
Financing Activities - - 51,394
---------- ---------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS - (6,084) -
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD - 9,276 -
---------- ---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ - $ 3,192 $ -
========== ========== ==========
Cash Paid For:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
The accompanying notes are an integral part of these financial statements.
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BARBECUE CAPITAL CORP.
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2002 and December 31, 2001
NOTE 1 CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the Company
without audit. In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the financial
position, results of operations and cash flows at March 31, 2002 and 2001 and
for all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted. It
is suggested that these condensed financial statements be read in conjunction
with the financial statements and notes thereto included in the Company's
December 31, 2001 audited financial statements. The results of operations for
periods ended March 31, 2002 and 2001 are not necessarily indicative of the
operating results for the full years.
NOTE 2 GOING CONCERN
The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. The Company has not established revenues sufficient to cover its
operating costs and allow it to continue as a going concern. The Company is
seeking a merger with an existing operating company. Currently, management is
committed to cover all operating and other costs until sufficient revenues are
generated.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
- -------------------------------------------------
This periodic report contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995 with
respect to the financial condition, results of operations, business
strategies, operating efficiencies or synergies, competitive positions, growth
opportunities for existing products, plans and objectives of management.
Statements in this periodic report that are not historical facts are hereby
identified as "forward-looking statements."
Business of the Company
- -----------------------
The Company was incorporated in Nevada on December 18, 1996, to engage in
the manufacture and distribution of commercial size barbecues for individual,
groups, and restaurant use. After two seasonal business cycles of trying to
develop a market for the Company's barbecues, management of the Company
determined that without significant additional funding, the Company would not
be able to compete in the barbecue business. Accordingly, after several
unsuccessful attempts to obtain additional capital, the Company determined
that it was in the Company's and its shareholders best interest to cease the
barbecue business and search for alternative businesses while the Company was
still solvent.
The Company intends to take advantage of any reasonable business proposal
presented which management believes will provide the Company and its
stockholders with a viable business opportunity. The board of directors will
make the final approval in determining whether to complete any acquisition,
and unless required by applicable law, the articles of incorporation, bylaws
or by contract, stockholders' approval may not be sought.
The investigation of specific business opportunities and the negotiation,
drafting, and execution of relevant agreements, disclosure documents, and
other instruments will require management time and attention and will require
the Company to incur costs for payment of accountants, attorneys, and others.
If a decision is made not to participate in or complete the acquisition of a
specific business opportunity, the costs incurred in a related investigation
will not be recoverable. Further, even if an agreement is reached for the
participation in a specific business opportunity by way of investment or
otherwise, the failure to consummate the particular transaction may result in
the loss to the Company of all related costs incurred.
Currently, management is not able to determine the time or resources that
will be necessary to complete the participation in or acquisition of any
future business prospect. There is no assurance that the Company will be able
to acquire an interest in any such prospects, products or opportunities that
may exist or that any activity of the Company, regardless of the completion of
any participation in or the acquisition of any business prospect, will be
profitable.
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Discussion and Analysis of Financial Condition and Results of Operations
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Liquidity and Capital Resources
-------------------------------
As of March 31, 2002, the Company had no assets and liabilities of
$24,607. If the Company cannot find a new business, it will have to seek
additional capital either through the sale of its shares of common stock or
through a loan from its officer. The Company's ongoing expenses are primarily
associated with maintaining its corporate status and professional fees
associated with accounting and legal costs and should not require substantial
money to maintain its SEC filing obligations and corporate status.
Management anticipates that the Company will incur more cost including
legal and accounting fees to locate and complete a merger or acquisition. At
the present time the Company does not have the assets to meet these financial
requirements. Additionally, the Company does not have substantial assets to
entice potential business opportunities to enter into transactions with the
Company.
Since inception the Company has not generated revenue and it is unlikely
that any revenue will be generated until the Company locates a business
opportunity with which to acquire or merge. Management of the Company will be
investigating various business opportunities. These efforts may cost the
Company not only out of pocket expenses for its management but also expenses
associated with legal and accounting cost. There can be no guarantee that the
Company will receive any benefits from the efforts of management to locate
business opportunities.
If and when the Company locates a business opportunity, management of the
Company will give consideration to the dollar amount of that entity's
profitable operations and the adequacy of its working capital in determining
the terms and conditions under which the Company would consummate such an
acquisition. Potential business opportunities, no matter which form they may
take, will most likely result in substantial dilution for the Company's
shareholders as it has only limited capital and no operations.
The Company does not intend to employ anyone in the future, unless its
present business operations were to change. The president of the Company is
providing the Company with a location for its offices on a "rent free basis."
The Company does intend to reimburse its officers and directors for out of
pocket cost.
Results of Operations
---------------------
For the three months ended March 31, 2002, the Company had a net loss of
$1,768 compared to a loss for the quarter ended March 31, 2001, of $1,188.
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The Company anticipates losses to remain at the present level until a business
opportunity is found. The Company had no revenue for the three months ended
March 31, 2002, as a result of the termination of its barbecue business. The
Company does not anticipate any revenue until it locates a new business
opportunity.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
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Item 4 Instruments Defining the Rights of Security Holders
- ------- ---------------------------------------------------
4.01 4 Specimen Stock Certificate Incorporated
by reference*
* Incorporated by reference from the Company's registration statement on form
10-SB filed with the Commission, SEC file no. 0-25951.
(b) Reports on Form 8-K.
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None.
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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.
BARBECUE CAPITAL CORP.
[Registrant]
Dated: May 13, 2002 By: /s/ Jeff Holmes, President,
Chief Financial Officer, and Director