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 March 31, 2004
[ ] 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 May 7, 2004, 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 March 31, 2004, and the results of its
operations and changes in its financial position from May 10, 2000, through
March 31, 2004, 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,
2003.
2
Alnilam Corporation
(A Development Stage Company)
Balance Sheet
March September
31, 2004 30, 2003
----------- -----------
(Unaudited)
ASSETS
Current Assets
Total Current Assets $ - $ -
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable 12,224 8,724
Interest Payable 5,589 4,723
Note Payable - Related Party (Note 4) 18,354 16,786
---------- ----------
Total Current Liabilities 36,167 30,233
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 (46,167) (40,233)
---------- ----------
Total Stockholders' Equity (36,167) (30,233)
---------- ----------
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 Six Months Ended (Inception)
March March March March to March
31, 2004 31, 2003 31, 2004 31, 2003 31, 2004
---------- ---------- ---------- ---------- ----------
Revenue $ - $ - $ - $ - $ -
--------- --------- --------- --------- ---------
Expenses
General &
Administrative 2,568 - 5,068 457 40,576
--------- --------- --------- --------- ---------
Total Expenses 2,568 - 5,068 (457) 40,576
--------- --------- --------- --------- ---------
Income (Loss)
From Operations (2,568) - (5,068) (457) (40,576)
Other Income (Expenses)
Interest Expense (446) (373) (866) (744) (5,591)
--------- --------- --------- --------- ---------
Total Other
Income (Expenses) (446) (373) (866) (744) (5,591)
--------- --------- --------- --------- ---------
Income (Loss)
Before Taxes (3,014) (373) (5,934) (1,201) (46,167)
Taxes - - - - -
--------- --------- --------- --------- ---------
Net Income (Loss) $ (3,014) $ (373) $ (5,934) $ (1,201) $ (46,167)
========= ========= ========= ========= =========
(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 Six Months Ended (Inception)
March March to March
31, 2004 31, 2003 31, 2004
---------- ---------- ----------
Cash Flows from Operating Activities
Net Income (Loss) $ (5,934) $ (1,201) $ (46,167)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by
Operating Activities:
Increase in Accounts Payable
/Interest Payable 5,934 1,201 36,167
Increase in Stock Issued for Services - - 2,635
--------- --------- ---------
Net Cash Provided (Used) by
Operating Activities - - (7,365)
Cash Flows from Investing Activities - - -
--------- --------- ---------
Cash Flows from Financing Activities
Issuance of Common Stock for Cash - - 7,365
--------- --------- ---------
Net Cash Provided (Used) by
Financing Activities - - 7,365
--------- --------- ---------
Increase (Decrease) in Cash - - -
Cash, Beginning of Period - - -
--------- --------- ---------
Cash, End of Period $ - $ - $ -
========= ========= =========
Supplemental Cash Flow Information
--------- --------- ---------
Interest $ - $ - $ -
Income Taxes - - -
See accompanying notes to financial statements.
5
Alnilam Corporation
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2004
NOTE 1 - COMPANY ORGANIZATION
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 is a development stage company as defined in SFAS No. 7. It is
concentrating substantially all of its efforts in raising capital and
developing its business operations in order to generate significant
revenues.
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.
Income (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
March 31, 2004
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 March 31, 2004 and earlier years, no
deferred tax liabilities have been recognized.
The Company has cumulative net operating loss carryforwards over $46,167 at
March 31, 2004. 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 March 31,
2004 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 to a company whose president is
a shareholder. As of March 31, 2004, the accrued interest was $5,589.
The Company has the following note payable obligations: March 31,
2004
-----------
Related party notes payable, due on demand,
accruing interest at a rate of 10% per annum $ 18,354
---------
Total 18,354
Less Current Maturities (18,354)
---------
Total Long-Term Notes Payable $ -
=========
NOTE 5 - GOING CONCERN
The Company has had recurring operating losses since inception and is
dependent upon financing to continue operations. These factors indicate
that the Company may be unable to continue in existence. These financial
statements do not include any adjustments relating to the recoverability
and classification of recorded assets, or the amounts and classification of
liabilities that might be necessary in the event the Company cannot
continue its existence. These financial statements do not include any
adjustments that might result from the outcome of this uncertainty. It is
the intent of the Company to find additional capital funding and/or a
profitable business venture to acquire or merge.
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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, 2004, will be approximately $9,000, 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
will 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 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
8
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.
Off-Balance Sheet Arrangements
Management does not believe the company has any off-balance sheet
arrangements that have, or are reasonable likely to have, a current or
future effect on our financial condition, changes in financial condition,
revenues or expenses, results of operations, liquidity, capital
expenditures, or capital resources which would be material to investors.
ITEM 3. CONTROLS AND PROCEDURES
Evaluation of disclosure and controls and procedure
With the participation of management the Company's chief executive
officer and chief financial officer have evaluated the effectiveness of the
design and operation of the Company's disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange
Act of 1934, as amended) as of the end of the period covered by this
quarterly report. Based on that evaluation the chief executive officer and
chief financial officer have concluded that the Company's disclosure
controls and procedures are designed to ensure that information required to
be disclosed by the Company in the reports that it files or submits under
the Exchange Act is recorded, processed, summarized and reported within the
time periods specified in the SEC's rules and forms, and are operating in
an effective manner.
Changes in internal controls
There were no changes in the Company's internal control over financial
reporting that have materially affected, or are reasonably likely to
materially affect, the Company's internal control over financial reporting.
It should be noted that any system of controls, however well designed
and operated, can provide only reasonable and not absolute assurance that
the objectives of the system will be met. In addition, the design of any
control system is based in part upon certain assumptions about the
likelihood of future events. Because of these and other inherent
limitations of control systems, there is only reasonable assurance that our
controls will succeed in achieving their stated goals under all potential
future conditions.
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PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
31.1 Rule 13a-14(a) Certification by Principal Executive Officer
31.2 Rule 13a-14(a) Certification by Principal Financial Officer
32 Section 1350 Certification of Principal Executive Officer
and Principal Financial Officer
(b) Reports on Form 8-K: A report on Form 8-K dated February 10,
2004, was filed on February 24, 2004, reporting that although the Company
had not changed the firm that performs its audits, because of a merger of
operations the name of the firm changed from Bierwolf, Nilson & Associates
to Chisholm, Bierwolf & Nilson, LLC.
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: May 17, 2004 By: /s/ Jason Daggett
Jason Daggett, President and Principal
Financial and Accounting Officer
10