UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
for the quarterly period ended July 31, 2002
Commission File Number
0-49884
RESIDENTIAL RESALES, INC
(Name of Small Business Issuer in its charter)
FLORIDA 75-3026967
(State or other jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or organization)
270 NW 3rd Court 33432-3720
Boca Raton, Florida (Zip Code)
(Address of principal executive offices)
Issuers Telephone: (561) 368-1427
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APPLICABLE ONLY TO CORPORATE ISSUERS
As of July 31, 2002, there are 3,000,000 shares
of common stock outstanding. The issuer has no
other classes of stock authorized.
Transitional Small Business Format: No
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PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Unaudited financial statements for Residential Resales, as of the fiscal
quarter ended July 31, 2002 are submitted in compliance with Item 310(b) of
Regulation S-B.
RESIDENTIAL RESALES, INC.
(F/K/A MEDIA ACQUISITIONS GROUP, INC.)
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
JULY 31, 2002
(UNAUDITED)
ASSETS
---------
CURRENT ASSETS
Cash $1,633
========
LIABILITIES AND STOCKHOLDERS' EQUITY
-------------------------------------
CURRENT LIABILITIES
Due to stockholder $ 1,111
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STOCKHOLDERS' EQUITY
Common stock, $.001 par value, 50,000,000
shares authorized, 3,000,000 shares
issued and outstanding 3,000
Additional paid-in capital 6,500
Deficit accumulated during the development
stage (8,978)
--------
Total Stockholders' Equity 522
--------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,633
========
Read accompanying Notes to Financial Statements.
F-1
RESIDENTIAL RESALES, INC.
(F/K/A MEDIA ACQUISITIONS GROUP, INC.)
(A DEVELOPMENT STAGE COMPANY)
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Period From
June 29, 1998
Three Months (Inception)
Ended July 31, To July 31,
2002 2001 2002
------------ ------------- ------------
REVENUES $ - $ - $ -
EXPENSES
General and administrative 2,776 - 8,978
------------ ------------- ------------
NET (LOSS) $ (2,776) $ - $ (8,978)
============ ============= ============
(LOSS) PER SHARE $ - $ -
============ =============
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 3,000,000 750,000
============ =============
Read accompanying Notes to Financial Statements.
F-2
RESIDENTIAL RESALES, INC.
(F/K/A MEDIA ACQUISITIONS GROUP, INC.)
(A DEVELOPMENT STAGE COMPANY)
CONDENSED STATEMENTS OF CASH FLOW
(UNAUDITED)
Period From
Three Three June 29,1998
Months Ended Months Ended (Inception)
July 31, July 31, to July 31,
2002 2001 2002
----------------- --------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $(2,776) $- $(8,978)
Adjustments to reconcile net loss to
cash (used in) operating activities:
Common shares issued for services
Rendered - - 5,000
----------------- --------------- ----------------
NET CASH (USED IN) OPERATING ACTIVITIES (2,776) - (3,978)
----------------- --------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock - - 1,000
Increase in amount due to stockholder - - 1,111
Repayment of stock subscriptions receivable 3,500 - 3,500
----------------- --------------- ----------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 3,500 - 5,611
----------------- --------------- ----------------
NET INCREASE IN CASH 724 - 1,633
CASH - BEGINNING 909 - -
----------------- --------------- ----------------
CASH - ENDING $ 1,633 $ - $1,633
================= =============== ================
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING
AND FINANCING ACTIVITIES:
Common shares issued for services rendered $ - $ - $5,000
================= =============== ================
Read accompanying Notes to Financial Statements.
F-3
RESIDENTIAL RESALES, INC.
(F/K/A MEDIA ACQUISITIONS GROUP, INC.)
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
JULY 31, 2002
NOTE 1. ORGANIZATION
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Residential Resales, Inc. (formerly known as Media Acquisitions Group, Inc.) was
incorporated on June 29, 1998 under the laws of the State of Florida. The
company is engaged in the acquisition and renovation of foreclosed or distressed
residential homes for resale. The company's headquarters is in Boca Raton,
Florida.
The Company has no revenues to date. Since its inception, the Company has been
dependent upon the receipt of capital investment or other financing to fund its
continuing activities. In addition to the normal risks associated with a new
business venture, there can be no assurance that the Company's product
development will be successfully completed or that it will be a commercial
success. Further, the Company is dependent upon certain related parties to
provide continued funding and capital resources.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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BASIS OF PRESENTATION
-----------------------
The accompanying condensed financial statements are unaudited. These statements
have been prepared in accordance with the rules and regulations of the
Securities and Exchange Commission (SEC). 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. In the opinion of management, all
adjustments (which include only normal recurring adjustments) considered
necessary for a fair presentation have been included. These financial statements
should be read in conjunction with the Company's financial statements and notes
thereto for the year ended April 30, 2002, included in the Company's Form 10-SB
as filed with the SEC.
F-4
RESIDENTIAL RESALES, INC.
(F/K/A MEDIA ACQUISITIONS GROUP, INC.)
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
JULY 31, 2002
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
-----------------------------------------------------------
(LOSS) PER SHARE
- ------------------
(Loss) per share is computed by dividing net (loss) for the year by the weighted
average number of shares outstanding.
USE OF ESTIMATES
- ------------------
Management uses estimates and assumptions in preparing financial statements in
accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Accordingly, actual results could vary from the estimates that were
assumed in preparing the financial statements.
NOTE 3. CAPITAL STOCK
--------------
The Company had originally 5,000 common shares authorized, issued and
outstanding with a par value of $1 per share. On September 17, 2001, the
Articles of Incorporation were amended to increase the number of authorized
common shares to 50,000,000 and to decrease the par value to $.001 per share. In
addition, on March 1, 2002, the Board of Directors approved a 150 to 1 stock
split. As a result of the stock split, the original 5,000 common shares issued
and outstanding with a par value of $1 per share as of the date of inception
have been retroactively adjusted to 750,000 common shares with a par value of
$.001 per share.
As of July 31, 2002, 3,000,000 common shares were issued and outstanding.
F-5
ITEM 2. PLAN OF OPERATION
At the present time the Company has no overhead costs. The officers of the
Company are not on any payroll and the offices of the Company and administrative
assistance are now being provided at no cost. This situation will remain
constant until such time as the Company has purchased and sold one or more
residences.
The plan of operation for the next twelve months is to purchase one or more
residential properties, make necessary repairs and/or renovations, and resell
those residences. The Company estimates that it will require $60,000 for the
purchase price of a given residence and that it will require $10,000 to cover
repairs and/or maintenance. However, it must be emphasized that these cash
requirements are estimates only. There is no way to specifically identify these
costs until an actual purchase occurs. Until that time, the Company will not
require additional cash to main itself in a current position.
To provide the anticipated cash that will be required, the Company intends
to obtain cash loans from certain of its present stockholders, several of whom
have expressed an intention to make loans to the Company for the purpose of
residence purchases and the repairs and/or renovations that may be required.
There is no way to state at this time the amount of loans that will be required.
However, in terms of structure, the Company plans to issue the loans as
unsecured promissory notes, payable on demand, with annual interest at five
percent (5%). All interest will accrue until the note is paid by the Company or
demand is made for payment. The Company will have the right of prepayment at
any time without penalty. The Company intends to pay off all loans used to
acquire and improve a given residence upon such time as a residence is sold.
The Company intends to finance all residence purchases with loans until such
time as accrued profits will permit a purchase(s) with Company funds.
ITEM 3. CONTROLS AND PROCEDURES
Harry DiFrancesco is the President of the Company and is the sole director.
He is the only executive officer and all reports to be filed with the Securities
and Exchange Commission are signed by him alone. Consequently, it is the
conclusion of the sole executive officer that reports filed or submitted under
the Act (as specified in Regulation Section 240.13a-14 (c) ) are his
responsibility alone and that no other disclosure controls and procedures are
applicable.
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PART II - OTHER INFORMATION
ITEMS 1- 5 - NOT REQUIRED
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits 3(i) and (ii) are incorporated into this filing by
reference to Exhibits 2(i) and 2 (iii) as filed in Part III of Form 10SB as
filed with the Securities and Exchange Commission.
(b) Reports on Form 8-K
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report be signed on its behalf by the undersigned, thereunto duly
authorized.
Date: October 2, 2002 By: /s/ Harry Di Francesco
-------------------------- ---------------------------
Harry Di Francesdo
President
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CERTIFICATION
-------------
I, HARRY DI FRANCESCO, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Residential
Resales, Inc.
2. Based on my knowledge, the 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. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and 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 us 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 our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and audit
committee of the registrant's board of directors (or persons performing the
equivalent functions.
(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
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(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
6. The registrant's other certifying officers and 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 our most recent evaluation, including
any corrective actions with regard to significant deficiencies and material
weaknesses.
Date: October 2, 2002
/s/ Harry Di Francesco
- -------------------------
Harry Di Francesco
President and Sole Certifying Officer
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