UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2002
[ ] 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: 000-32329
ALNILAM CORPORATION
(Exact name of Registrant as specified in charter)
NEVADA 91-2081398
State or other jurisdiction of I.R.S. Employer I.D. No.
incorporation or organization
3857 BIRCH STREET, #606, NEWPORT BEACH, CA 92660
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (949) 644-0095
Check whether the Issuer (1) has 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 fling requirements for the past 90 days.
(1) Yes [X] No [ ] (2) Yes [X] No [ ]
State the number of shares outstanding of each of the Issuer's classes of
common equity as of the latest practicable date: At August 8, 2002, there
were 1,000,000 shares of the Registrant's Common Stock outstanding.
Page 2
PART I
ITEM 1. FINANCIAL STATEMENTS
The condensed 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 pursuant to such rules and regulations, although the
Company believes that the disclosures are adequate to make the information
presented not misleading.
In the opinion of the Company, all adjustments, consisting of only
normal recurring adjustments, necessary to present fairly the financial
position of the Company as of June 30, 2002, and the results of its
operations and changes in its financial position from May 10, 2000, through
June 30, 2002, have been made. The results of its operations for such
interim period are not necessarily indicative of the results to be expected
for the entire year. These condensed financial statements should be read
in conjunction with the financial statements and notes thereto included in
the Company's annual report on Form 10-KSB for the year ended September 30,
2001.
Page 3
Alnilam Corporation
(A Development Stage Company)
Balance Sheet
June September
30, 2002 30, 2001
----------- -----------
(Unaudited)
Assets
Current Assets
Cash $ - $ 3,520
--------- ---------
Total Assets $ - $ 3,520
========= =========
Liabilities & Stockholders' Equity
Current Liabilities
Accounts Payable $ 3,541 $ 200
Interest Payable 2,721 1,608
Note Payable - Related Party 14,835 14,835
--------- ---------
Total Current Liabilities 21,097 16,643
Stockholders' Equity
Common Stock, 100,000,000 Shares
Authorized at $.001 Par Value;
1,000,000 Shares Issued and Outstanding 1,000 1,000
Additional Paid In Capital 9,000 9,000
Deficit Accumulated in the Development Stage (31,097) (23,123)
--------- ---------
Total Stockholders' Equity (21,097) (13,123)
--------- ---------
Total Liabilities and Stockholders' Equity $ - $ 3,520
========= =========
See accompanying notes to the financial statements.
Page 4
Alnilam Corporation
(A Development Stage Company)
Statement of Operations
(Unaudited)
For the Period
May 10, 2000
For the Three Months Ended For the Nine Months Ended (Inception)
June June June June to June
30, 2002 30, 2001 30, 2002 30, 2001 30, 2002
---------- ---------- ---------- ---------- ----------
Revenue $ - $ - $ - $ - $ -
--------- --------- --------- --------- ---------
Expenses
General
& Administrative 1,327 13,713 6,861 16,608 28,376
--------- --------- --------- --------- ---------
Total Expenses 1,327 13,713 6,861 16,608 28,376
--------- --------- --------- --------- ---------
Income (Loss)
From Operations (1,327) (13,713) (6,861) (16,608) (28,376)
Other Income (Expenses)
Interest Expense (371) (371) (1,113) (742) (2,721)
--------- --------- --------- --------- ---------
Total Other Income
(Expenses) (371) (371) (1,113) (742) (2,721)
--------- --------- --------- --------- ---------
Income (Loss)
Before Taxes (1,698) (14,084) (7,974) (17,350) (31,097)
Taxes - - - - -
--------- --------- --------- --------- ---------
Net Income (Loss) $ (1,698) $ (14,084) $ (7,974) $ (17,350) $ (31,097)
========= ========= ========= ========= =========
Loss Per
Common Share $ - $ - $ - $ -
Weighted Average
Outstanding Shares 1,000,000 1,000,000 1,000,000 948,768
See accompanying notes to the financial statements.
Page 5
Alnilam Corporation
(A Development Stage Company)
Statement of Cash Flows
(Unaudited)
For the Period
May 10, 2000
For the Nine Months Ended (Inception)
June June to June
30, 2002 30, 2001 30, 2002
----------- ----------- -----------
Cash Flows from Operating Activities
Net Income (Loss) $ (7,974) $ (17,350) $ (31,097)
Adjustments to Reconcile Net Loss to
Net Cash;
Increase (Decrease) in Accounts Payable
/Interest Payable 4,454 1,242 6,262
Stock Issued for Services - 495 2,635
--------- --------- ---------
Net Cash Provided (Used) by
Operating Activities (3,520) (15,613) (22,200)
Cash Flows from Investing Activities - - -
--------- --------- ---------
Cash Flows from Financing Activities
Issuance of Common Stock for Cash - 2,200 22,200
--------- --------- ---------
Net Cash Provided (Used) by
Financing Activities - 2,200 22,200
--------- --------- ---------
Increase (Decrease) in Cash (3,520) (13,413) -
Cash, Beginning of Period 3,520 19,985 -
--------- --------- ---------
Cash, End of Period $ - $ 6,572 $ -
========= ========= =========
Supplemental Cash Flow Information
Interest $ - $ - $ -
Income Taxes - - -
See accompanying notes to the financial statements.
Page 6
Alnilam Corporation
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2002
NOTE 1 - CORPORATE HISTORY
Alnilam Corporation (the "Company") was incorporated under the laws of
Nevada on May 10, 2000 as Alnilam Corporation for the purpose of
seeking and consummating a merger or acquisition with a business
entity organized as a private corporation, partnership, or sole
proprietorship.
The Company has yet to fully develop any material income from its
stated primary objective and it is classified as a development stage
company. All income, expenses, cash flows and stock transactions are
reported since the beginning of development stage.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Income (Loss) Per Share
The computation of income or (loss) per share of common stock is based
on the weighted average number of shares outstanding at the date of
the financial statements.
Cash and Cash Equivalents
The Company considers all highly liquid investments with an original
maturity of three months or less when purchased 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 the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
NOTE 3 - INCOME TAXES
The Company adopted Statement of Financial Accounting Standards No.
109 "Accounting for Income Taxes" in the fiscal year ended September
30, 2000 and has applied the provisions of the statement to the
current year which resulted in no significant adjustment.
Statement of Financial Accounting Standards No. 109 "Accounting for
Income Taxes" requires an asset and liability approach for financial
accounting and reporting for income tax purposes. This statement
recognizes (a) the amount of taxes payable or refundable for the
Page 7
Alnilam Corporation
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2002
NOTE 3 - INCOME TAXES - continued
current year and (b) deferred tax liabilities and assets for future
tax consequences of events that have been recognized in the financial
statements or tax returns.
Deferred income taxes result from temporary differences in the
recognition of accounting transactions for tax and financial reporting
purposes. There were no temporary differences at June 30, 2002 and
earlier periods; accordingly, no deferred tax liabilities have been
recognized for all years.
The Company has cumulative net operating loss carryforwards over
$31,000 at June 30, 2002. No effect has been shown in the financial
statements for the net operating loss carryforwards as the likelihood
of future tax benefit from such net operating loss carryforwards is
not presently determinable. Accordingly, the potential tax benefits
of the net operating loss carryforwards, estimated based upon current
tax rates at June 30, 2002 have been offset by valuation reserves in
the same amount. The net operating losses begin to expire in 2020.
NOTE 4 - NOTE PAYABLE - RELATED PARTY
The Company issued a promissory note in the amount of $14,835 to
Mezzanine Capital Ltd., on September 1, 2000. The note is unsecured
and carries an interest rate of 10% per annum. The principal and
interest of the note shall be due and payable on September 1, 2002.
The amount of principal and accrued interest as of June 30, 2002 is
$17,556.
NOTE 5 - 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. Currently, the Company does not
have significant cash or other material assets, nor does it have an
established source of revenues sufficient to cover its operating costs
and to allow it to continue as a going concern.
Page 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR
PLAN OF OPERATION
The Company is a development stage company. Since its inception, the
Company has had no operations. The Company was organized for the purpose
of engaging in any lawful activity permitted under Nevada state law;
however, the Company does not have any significant cash or other material
assets, nor does it have an established source of revenues sufficient to
cover operating costs and to allow it to continue as a going concern. 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, but will submit the proposal to the shareholders for final
approval.
The original shareholders contributed a total of $10,000 in cash and
services as capital contributions for stock of the Company and Mezzanine
Capital Ltd. loaned $14,835 to the Company at inception for operating
expenses.
The investigation of specific business opportunities and the
negotiation, drafting, and execution of relevant agreements, disclosure
documents, and other instruments will require substantial 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 a 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 locate and acquire or merge with a 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 transaction, will be profitable. 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 due to the likely
issuance of stock to acquire such an opportunity.
Page 9
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
99.1 Written Statement of the Chief Executive Officer and
Chief Financial Officer with respect to compliance with Section 13(a) of
the Securities Exchange Act of 1934.
(b) Reports on Form 8-K: No reports on Form 8-K were filed during
the third quarter of the fiscal year ending September 30, 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
Alnilam Corporation
Date: August 13, 2002 By: /s/ Jason Daggett
Jason Daggett, President and
Principal Financial and Accounting Officer