UNITED STATES
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 Quarterly Period Ended June 30, 2003
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ____ to _____
Commission file number: 333-95549
HeavenExpress.com, Inc.
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(Exact name of small business issuer as specified in its charter)
Florida 65-0974212
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State or other jurisdiction of I.R.S. Employer
incorporation or organization Identification No.
2531 S.E. 14th Street, Pompano Beach, Florida 33062
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(Address of principal executive office)
(954) 782-4547
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(Issuer's telephone number including area code)
(All communications to)
Harold Martin, Esq.
Brown & Associates, PLLC
7400 Carmel Executive Park, Ste 120
Charlotte, North Carolina 28226
(704) 542-2525
As of August 5, 2003, we had 8,270,000 shares of our common stock issued and
outstanding.
INDEX TO FORM 10-QSB
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Page No.
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PART I
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Item 1. Financial Statements
Balance Sheet -June 30, 2003 2
Statements of Operations - Three and Six
Months Ended June 30, 2003 and 2002 3
Statements of Cash Flows - Six Months Ended
June 30, 2003 and 2002 4
Notes to Financial Statements 5-6
Item 2. Management's Discussion and Analysis of Financial
Condition And Results of Operations 7-8
Item 3. Quantitative and Qualitative Disclosures
on Market Risk 8
Item 4. Controls and Procedures 8
PART II
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Item 1. Legal Proceedings 9
Item 2. Changes in Securities 9
Item 3. Defaults Upon Senior Securities 9
Item 4. Submission of Matters to a Vote of Security Holders 9
Item 5. Other Information 9
Item 6. Exhibits 9
HEAVENEXPRESS.COM, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
AT JUNE 30, 2003
==============================================================================
ASSETS
------
CURRENT ASSETS
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Cash $ 142
--------
TOTAL ASSETS $ 142
========
LIABILITIES AND DEFICIENCY IN ASSETS
------------------------------------
LIABILITIES
- -----------
Accounts payable and accrued expenses $ 211
DEFICIENCY IN ASSETS
- --------------------
Preferred stock ($.001 par value, 10,000,000 shares authorized:
none issued and outstanding) -
Common stock ($.001 par value, 200,000,000 shares authorized:
8,270,000 issued and outstanding) 8,270
Additional paid-in-capital 96,188
Deficit accumulated during development stage (104,527)
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TOTAL DEFICIENCY IN ASSETS (69)
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TOTAL LIABILITIES AND DEFICIENCY IN ASSETS $ 142
========
See accompanying notes to the financial statements
HEAVENEXPRESS.COM, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002
===============================================================================
Cumulative-to
Three months Six months date since
ended June 30 ended June 30 inception
2003 2002 2003 2002
------ ------ ------ ------ ---------
OPERATING EXPENSES:
- -------------------
Professional and
consulting fees. . . . . . . $3,205 $3,552 $3,580 $3,497 $ 99,224
Interest expense. . . . . . . - 750 350 752 4,222
General and administrative. . . 30 195 105 45 1,081
------ ------ ------ ------ ---------
TOTAL EXPENSES. . . . . . . . 3,235 4,497 4,035 4,294 104,527
------ ------ ------ ------ ---------
LOSS BEFORE TAXES . . . . . (3,235) (4,497) (4,035) (4,294) (104,527)
INCOME TAX (PROVISION)
BENEFIT. . . . . . . . . . -0- -0- -0- -0- -0-
------ ------ ------ ------ ---------
NET INCOME (LOSS) . . . . .$(3,235) $(4,497) $(4,035) $(4,294) $(104,527)
====== ====== ====== ====== =========
Net loss per common share
Basic & fully diluted . . . . $ ** $ ** $ ** $ ** $ (0.01)
====== ====== ====== ====== =========
Weighted average common
shares outstanding. . . .8,210,000 8,116,000 8,185,000 8,116,000 8,089,000
** Less than $.01
See accompanying notes to the financial statements
HEAVENEXPRESS.COM, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
===============================================================================
Cumulative to
date since
2003 2002 inception
-------- -------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
- -------------------------------------
Net income (loss) $ (4,035) $ (8,761) $(104,527)
Adjustments to reconcile
net income (loss) to net
cash provided by (used in)
operating activities:
Common stock issued
for services 3,080 -0- 56,680
Increase (decrease) in
operating liabilities:
Accounts payable (9,200) (1,167) 211
Accrued expenses -0- 2,552 -0-
-------- -------- ---------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES (10,155) (7,376) (47,636)
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CASH FLOWS FROM FINANCING ACTIVITIES:
- -------------------------------------
Proceeds from sales of common stock -0- -0- 1,350
Contribution of officers 9,200 -0- 9,200
Proceeds from note payable to officer 1,074 7,380 37,228
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NET CASH PROVIDED BY
FINANCING ACTIVITIES 10,274 7,380 47,778
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NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 119 4 142
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CASH AND CASH EQUIVALENTS:
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Beginning of period 23 74 -0-
-------- -------- ---------
End of period $ 142 $ 78 $ 142
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SUPPLEMENTAL DISCLOSURES OF
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NON-CASH INVESTING AND FINANCING ACTIVITIES:
- --------------------------------------------
Common stock issued for services $ 3,080 $ -0- $ 53,600
======== ======== =========
See accompanying notes to the financial statements
HEAVENEXPRESS.COM, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
NOTE 1. BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business Activity - HeavenExpress.Com, Inc. ("the Company"), a development stage
company, is a Florida corporation formed in December 1999, primarily to provide
memorial products and services through the Internet.
Unaudited Financial Statements - The unaudited financial statements as of and
for the three and six months ended June 30, 2003 and 2002, have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information and with the instructions to Form
10-QSB and Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by accounting principles generally
accepted in the United States of America for complete financial statements. In
the opinion of Management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three months ended June 30, 2003 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2003.
Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the dated financial statements and the reported
amounts of revenues and expenses during the reporting periods. Actual results
could differ from those estimates.
Income Taxes - The Company follows Statement of Financial Accounting Standards
No. 109 (FAS 109), "Accounting for Income Taxes". FAS 109 is an asset and
liability approach that requires the recognition of deferred tax assets and
liabilities for the expected future tax consequences of the difference in events
that have been recognized in the Company's financial statements compared to the
tax returns.
Basic Net Loss Per Common Share - The Company follows the provisions of FASB
Statement No. 128 (SFAS No. 128), "Earnings Per Share". SFAS No. 128 requires
companies to present basic earnings per share (EPS) and diluted EPS, instead of
primary and fully diluted EPS presentations that were formerly required by
Accounting Principles Board Opinion No. 15, "Earnings Per Share". Basic EPS is
computed by dividing net income or loss by the weighted average number of common
shares outstanding during each year.
Development Stage Company - The Company has been devoting its efforts to
activities such as raising capital, establishing sources of information, and
developing markets for its planned operations. The Company has not yet generated
any revenues and, as such, it is considered a development stage company.
NOTE 2. RELATED PARTY TRANSACTIONS
The note payable to officer was a loan from Mr. Charles Scheuerman in the amount
of $37,255 which includes accrued interest of approximately $5,100. The note was
exchanged by Mr. Scheuerman during the second quarter pursuant to an agreement
with Saundra Sharpe, the former President whereby Ms. Sharpe transferred her
3,800,000 common shares of our Company to Mr. Scheuerman. Also pursuant to the
transaction, Mr. Scheuerman paid the Company's current accounts payable of
$9,200. Ms. Sharpe resigned her officer and directorship positions. The facts of
this transaction were disclosed in a Form 8-K filed with the Securities and
Exchange Commission on or about August 14, 2003.
NOTE 3. INCOME TAXES
At June 30, 2003, the Company had a net operating loss carryforward of
approximately $47,847. This loss may be carried forward to offset federal income
taxes in various future years through year 2022. However, if subsequently there
are ownership changes in the Company, as defined in Section 382 of the Internal
Revenue Code, the Company's ability to utilize net operating losses available
before the ownership change may be restricted to a percentage of the market
value of the Company at the time of the ownership change. Therefore, substantial
net operating loss carryforwards could, in all likelihood, be limited or
eliminated in future years due to a change in ownership as defined in the Code.
The utilization of the remaining carryforwards is dependent on the Company's
ability to generate sufficient taxable income during the carryforward periods
and no further significant changes in ownership.
SFAS No. 109 provides for the recognition and measurement of deferred income tax
benefits based on the likelihood of their realization in future years. A
valuation allowance must be established to reduce deferred income tax benefits
if it is more likely than not that, a portion of the deferred income tax
benefits will not be realized. It is Management's opinion that the entire
deferred tax benefit of $15,000 resulting from the net operating loss
carryforward may not be recognized in future years. Therefore, a valuation
allowance equal to the deferred tax benefit of $15,000 has been established,
resulting in no deferred tax benefits as of the balance sheet date.
NOTE 4. GOING CONCERN AND MANAGEMENT'S PLANS
As shown in the accompanying financial statements, the Company incurred net
losses of $4,035 for the six months ended June 30, 2003, and has an accumulated
deficit of $104,527. As a result, the Company has a negative working capital and
a deficiency in assets. The ability of the Company to continue as a going
concern is dependent upon its ability to obtain financing and achieve profitable
operations. The Company anticipates meeting its cash requirements through the
financial support of its management until such time as it begins operations. The
financial statements do not include any adjustments that might be necessary
should the Company be unable to continue as a going concern.
NOTE 5. COMMITMENTS AND CONTINGENCIES
The Company has its executive offices in the residence of its Chairman. The
Company occupies approximately 150 square feet, free of charge.
NOTE 6. COMMON STOCK ISSUANCES
During the quarter, the Company issued 154,000 shares of common stock for
consulting services. The shares were valued at $.02 per share, or $3,080. These
expenses are included in the accompanying financial statements.
HeavenExpress.com, Inc.
(A Development Stage Company)
ITEM 2. Plan Of Operation
Forward-Looking Statements
This report on Form 10-QSB contains forward-looking statements. The words or
phrases "would be," "will allow," "intends to," "will likely result," "are
expected to," "will continue," "is anticipated," "estimate," "project," or
similar expressions are intended to identify "forward-looking statements."
Actual results could differ materially from those projected in the
forward-looking statements as a result of a number of risks and uncertainties,
including: (a) lack of demand for our products and services being purchased via
the Internet; (b) competitive products and pricing; (c) limited or no amount of
resources devoted to advertising; (d) limited amount of time our management
devotes to our business; (e) the absence of management experience in the
memorial business or in Internet marketing; (f) if we fail to obtain financing
to conduct our plan of operations, we may be unable to continue in business; (g)
because our former President, Ms. Sharpe, is recovering from a brain related
operation, our Plan of Operations has experienced substantial delays; (h)
absence of any contracts or arrangements with third party supplies or
manufacturers; and (i) the plan of exchange with Guangdong Golden Sand & Green
Land Ecology and Environment Protection Development Co., Ltd. is likely to cause
significant revision in our business plan during the third quarter. Statements
made herein are as of the date of the filing of this Form 10-QSB with the
Securities and Exchange Commission and should not be relied upon as of any
subsequent date. Unless otherwise required by applicable law, we do not
undertake, and we specifically disclaim any obligation, to update any
forward-looking statements to reflect occurrences, developments, unanticipated
events or circumstances after the date of such statement.
Our Operations from Our Inception to June 30, 2003
We were incorporated on December 9, 1999. Since our inception through June 30,
2003, we have no revenues and we have an accumulated deficit of $104,527. Our
business plan currently consists of an online memoriam which offers products and
services to those who are seeking to plan funeral services. Our site offers
catalogs for caskets, monuments, markers, urns, flowers and burial sites. We
also offer a service of a jazz band to play at memorial services.
Since our inception to June 30, 2003, we have accomplished the following:
- - Developed our business plan;
- - Raised Capital - We raised $1,350 for our operations through the sale of
private placement securities;
- - Appointment of Board Members - We appointed Charles Scheuerman as a second
member of our Board of Directors;
- - Obtained our website address - We obtained the address of
www.heavenexpress.com
- - Development of a website - We developed our website content;
- - Graphics - We designed the graphics for our website; and
- - Website Designers - We hired Sensory Design Group, Inc. who created our
website;
- - Our website became operational on May 21, 2000.
Our Future Plan of Operations. Our plan of operations regarding our online
funeral business is uncertain. As discussed in Item 5, we have enacted a plan of
exchange with Guangdong Golden Sand & Green Land Ecology and Environment
Protection Development, Ltd., a company formed according to the laws of the
People's Republic of China. As indicated in our filings with the Securities and
Exchange Commission, our name will soon be changed to Golden Sand
Eco-Protection, Inc. This plan of exchange will also result in a change of
control in our company. During this reorganization, we will be re-evaluating our
business and will likely have significant impact for our future business plans.
The following information regarding our funeral business should be read in light
of these circumstances.
Net loss for the period. Our net loss for the three months ended June 30, 2003
was $3,235. Our net loss for the six months ended June 30, 2003 was $4,035.Our
net loss for both periods consisted primarily of $3,080 in expenses related to
common stock issued for services. There were 154,000 common shares issued for
consulting services during the period that were valued at the then current bid
price, or $.02 per share.
Liquidity and Capital Resources. As of June 30, 2003, we had limited cash
capital resources of only $142. Our current business plan includes the following
estimated capital expenditures of $32,000 over the next twelve months: $10,000
for advertising; $2,500 to establish new sources of revenue; $1,500 to improve
the content of our website; $600 for paying our server over the next twelve
months; $5,000 to upgrade our website and $12,000 for working capital.
Our existing cash is insufficient to fund our operations. Moreover, we have
incurred accumulated net losses of $104,527 since our inception to June 30,
2003. As a result, we have a negative working capital and a deficiency in
assets. Our ability to continue as a going concern is dependent upon our ability
to obtain financing and achieve profitable operations. If our revenues are
insufficient to meet our needs, our Officers or Directors may loan us funds to
conduct our operations; however, we have no agreement with our
Officers/Directors to do so and they are under no obligation to loan us funds.
Moreover, there are no assurances that our Officers/Directors will have
sufficient funds to make these loans. Accordingly, there are no assurances that
we will receive loans from our Officers/Directors. We have no compensation
agreements to our Officers/Directors in connection with any loans that either
may provide to us. If our Officers/Directors is unable or unwilling to make
loans to us necessary to implement our continuing plan of operations, we will
need additional financing through traditional bank financing or a debt or equity
offering; however, because we are a development stage company with little
operating history and a poor financial condition, we may be unsuccessful in
obtaining such financing or the amount of the financing may be minimal and
therefore inadequate to implement our continuing plan of operations.
Accordingly, there can be no assurance that we will be able to obtain financing
on satisfactory terms or at all, or raise funds through a debt or equity
offering. In addition, if we only have nominal funds by which to conduct our
operations, we may have to curtail advertising or be unable to conduct any
advertising, both of which will negatively impact development of our company
name and reputation.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
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We do not have any material risk with respect to changes in foreign currency
exchange rates, commodities prices or interest rates. We do not believe that we
have any other relevant market risk with respect to the categories intended to
be discussed in this item of this report.
ITEM 4. Controls and Procedures
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(a) On June 30, 2003, we made an evaluation of our disclosure controls and
procedures. In our opinion, the disclosure controls and procedures are
adequate because the systems of controls and procedures are designed to
assure, among other items, that 1) recorded transactions are valid; 2)
valid transactions are recorded; and 3) transactions are recorded in the
proper period in a timely manner to produce financial statements which
present fairly the financial condition, results of operations and cash
flows for the respective periods being presented. Moreover, the evaluation
did not reveal any significant deficiencies or material weaknesses in our
disclosure controls and procedures.
(b) There have been no significant changes in our internal controls or in other
factors that could significantly affect these controls since the last
evaluation.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
The Company issued 154,000 shares of common stock for consulting services during
the period. The shares were valued at $.02 per share, or $3,080, which was the
market price at the time of issuance.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER EVENTS
On June 26, 2003, our Company entered into a Plan of Exchange, (the "Plan of
Exchange") with Guangdong Golden Sand & Green Land Ecology And Environment
Protection Development Co., Ltd., a corporation organized under the laws of the
People's Republic of China ("Golden Sand"), this was also amended by a First
Amended Plan of Exchange, dated July 31, 2003 (the "First Amended Plan of
Exchange"), pursuant to which the Company will acquire Golden Sand in an
exchange transaction, Golden Sand will become a subsidiary of the Registrant,
and the shareholders of Golden Sand will acquire control of the Registrant. Also
pursuant to the transaction, Mr. Scheuerman resigned as President and the
Company elected two new officers from the Golden Sand management team - Mr. Shu
Yang, President and Mr. Kwan Kim Lun, Chief Executive Officer. Additional
information is available in our Form 8-K and other filings with the Securities
and Exchange Commission.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K EXHIBITS
3.1 Articles of Incorporation*
3.2 Amendment to Articles of Incorporation**
3.2 Bylaws*
4.0 Share Certificate*
* Filed by the Company as exhibits to its Registration Statement on
Form SB-2 filed with the Commission on January 27, 2000.
** Filed by the Company as exhibits to its Report on 8-K filed on
February 22, 2002.
Reports on Form 8-K.
A Form 8-K was filed on or about June 26, 2003 to disclose the Plan of Exchange
with Guangdong Golden Sand & Green Land Ecology And Environment Protection
Development Co., Ltd. An additional Form 8-K will be filed after the closing of
this transaction.
A Form 8-K was filed on or about August 14, 2003 to discuss the prior
transaction between Mr. Charles Scheuerman and Ms. Saundra Sharpe, both officers
of Company, whereby Mr. Scheuerman acquired Ms. Sharpe's common shares in our
Company and Ms. Sharpe resigned her officer and directorship positions.
We hereby incorporate the following documents by reference in this Registration
Statement:
a) Our Form SB-2 Registration Statement filed on May 3, 2001.
b) Our Report on Form 8-K filed with the Commission on February 22, 2002
reporting a forward stock split of our common stock at a ratio of four (4)
shares for every one (1) share held. The forward split became effective on
February 22, 2002.
--SIGNATURE PAGE FOLLOWS--
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
HeavenExpress.com, Inc.
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(Registrant)
Date: August 14, 2003
By: /s/ Mr. Kwan Kim Lun
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Mr. Kwan Kim Lun, Chief Executive Officer
By: /s/ Charles Scheuerman
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Charles Scheuerman, Chairman