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, 2003
[ ] 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: 0-32329
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 11, 2003, there
were 1,000,000 shares of the Registrant's Common Stock outstanding.
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, 2003, and the results of its
operations and changes in its financial position from May 10, 2000, through
June 30, 2003, 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,
2002.
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Alnilam Corporation
(A Development Stage Company)
Balance Sheet
June September
30, 2003 30, 2002
----------- -----------
Unaudited
Assets
Current Assets
Cash $ - $ -
---------- ----------
Total Current Assets - -
========== ==========
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 3,961 $ 4,241
Interest Payable 4,303 3,092
Note Payable - Related Party 16,786 14,835
---------- ----------
Total Current Liabilities 25,050 22,168
Stockholders' Equity
Common Stock Authorized; 100,000,000 Shares at
$.001 Par Value; 1,000,000 Shares Issued and
Outstanding 1,000 1,000
Capital In Excess of Par Value 9,000 9,000
Deficit Accumulated in the Development Stage (35,050) (32,168)
---------- ----------
Total Stockholders' Equity (25,050) (22,168)
---------- ----------
Total Liabilities & Stockholders' Equity $ - $ -
========== ==========
See accompanying notes to financial statements.
3
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, 2003 30, 2002 30, 2003 30, 2002 30, 2003
----------- ----------- ----------- ----------- -----------
Revenue $ - $ - $ - $ - $ -
---------- ---------- ---------- ---------- ----------
Expenses
General &
Administrative 1,212 1,327 1,669 6,861 30,745
---------- ---------- ---------- ---------- ----------
Total Expenses 1,212 1,327 1,669 6,861 30,745
---------- ---------- ---------- ---------- ----------
Income (Loss)
From Operations (1,212) (1,327) (1,669) (6,861) (30,745)
Other Income (Expenses)
Interest Expense (469) (371) (1,213) (1,113) (4,305)
---------- ---------- ---------- ---------- ----------
Total Other
Income (Expenses) (469) (371) (1,213) (1,113) (4,305)
---------- ---------- ---------- ---------- ----------
Income (Loss)
Before Taxes (1,681) (1,698) (2,882) (7,974) (35,050)
Taxes - - - - -
---------- ---------- ---------- ---------- ----------
Net Income (Loss) $ (1,681) $ (1,698) $ (2,882) $ (7,974) $ (35,050)
========== ========== ========== ========== ==========
(Loss) Per
Common Share $ - $ - $ - $ -
Weighted Average
Shares Outstanding 1,000,000 1,000,000 1,000,000 1,000,000
See accompanying notes to financial statements.
4
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, 2003 30, 2002 30, 2003
------------ ------------- ------------
Cash Flows from Operating Activities
Net Income (Loss) $ (2,882) $ (7,974) $ (35,050)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by
Operating Activities:
Increase in Accounts Payable-
Interest Payable 931 4,454 8,264
Increase in Stock Issued for Services - - 2,635
---------- ----------- ----------
Net Cash Provided (Used) by
Operating Activities (1,951) (3,520) (24,151)
Cash Flows from Investing Activities - - -
---------- ----------- ----------
Cash Flows from Financing Activities
Increase in Notes Payable 1,951 - 16,786
Issuance of Common Stock for Cash - - 7,365
---------- ----------- ----------
Net Cash Provided (Used) by
Financing Activities 1,951 - 24,151
---------- ----------- ----------
Increase (Decrease) in Cash - (3,520) -
Cash, Beginning of Period - 3,520 -
---------- ----------- ----------
Cash, End of Period $ - $ - $ -
========== =========== ==========
Supplemental Cash Flow Information
Interest $ - $ - $ -
Income Taxes - - -
See accompanying notes to financial statements.
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Alnilam Corporation
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2003
NOTE 1 - CORPORATE HISTORY
Alnilam Corporation (the "Company") was incorporated under the laws of the
state 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 - SIGNIFICANT ACCOUNTING POLICIES
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.
Earnings (Loss) Per Share - The Computation or income or (loss) per shares
of common stock is based on weighted average number of shares outstanding
at the date of the financial statements.
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 reported period. Actual results could differ from
those estimates.
NOTE 3 - INCOME TAXES
The Company adopted Statement of Financial Standards No. 109 "Accounting
for Income Taxes" in the fiscal year ended September 30, 2001.
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 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.
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Alnilam Corporation
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2003
NOTE 3 - INCOME TAXES continued
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, 2003 and earlier periods, no
deferred tax liabilities have been recognized.
The Company has cumulative net operating loss carryforwards over $35,000 at
June 30, 2003. 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, 2003
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 has issued two unsecured promissory notes bearing interest
rates of 10% per annum, and are due and payable on demand. The notes were
issued to a shareholder of the Company and a company whose president is a
shareholder. At June 30, 2003, the accrued interest associated with the
various notes was $4,303.
June 30, September 30,
The Company has the following note payable obligations: 2003 2002
---------- ----------
Related party notes payable, due on demand,
interest accrued at a rate of 10% per annum $ 14,835 $ 14,835
Related party notes payable, due on demand,
interest accrued at a rate of 10% per annum $ 1,951 $ -
--------- ---------
Totals $ 16,786 $ 14,835
Less Current Maturities (16,786) (14,835)
--------- ---------
Total Long-Term Notes Payable $ - $ -
========= =========
Following are maturities of long-term debt for each of the next five years:
Year Amount
--------- ----------
2003 $ 16,786
2004 -
2005 -
2006 -
Thereafter -
---------
Total $ 16,786
=========
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Alnilam Corporation
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2003
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. It is the intent of the Company to find additional capital
funding and/or a profitable business venture to acquire or merge with.
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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. Since
inception the Company has borrowed funds from corporations related to the
Company for operating expenses.
Management estimates that the cash requirements for the year ending
September 30, 2003, will be approximately $8,325, if no change in
operations occurs during the year. Management anticipates that any
additional needed funds will be loaned to the Company on the same or
similar terms as those of other loans to the Company. There are no
agreements with any of the companies and no assurance that all or a portion
of these funds will be loaned to the Company. If the Company is unable to
borrow such funds, management will seek other sources of funding which are
currently unknown to management. There is no assurance that such funding
would be available, or that if it is made available, it could be obtained
on terms favorable to the Company.
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 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
9
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.
ITEM 3. CONTROLS AND PROCEDURES
Within 90 days prior to the filing date of this report, the Company's
management conducted an evaluation, under the supervision and with the
participation of the Company's President and Chief Financial Officer, of
the effectiveness of the design and operation of the Company's disclosure
controls and procedures. Based on this evaluation, the President and Chief
Financial Officer concluded that the Company's disclosure controls and
procedures are effective. There have been no significant changes in the
Company's internal controls or in other factors that could significantly
affect those controls subsequent to the date of our last evaluation.
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, 2003.
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, 2003 By: /s/ Jason Daggett
Jason Daggett, President and Principal
Financial and Accounting Officer
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CERTIFICATION
I, Jason Daggett, President and Chief Financial Officer of Alnilam
Corporation, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Alnilam
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
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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.
Date: August 13, 2003 /s/ Jason Daggett
Jason Daggett, President and
Chief Financial Officer
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