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, 2007
[ ] 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 [ ]
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). 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
July 1, 2007, there were 500,000 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, 2007, and
the results of its operations and changes in its financial
position from May 10, 2000, through June 30, 2007, 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, 2006.
Alnilam Corporation
(A Development Stage Company)
Balance Sheets
ASSETS
June 30,2006 September 30,2007
(Unaudited)
Current Assets
Cash $ - $ -
Total Current Assets $ - $ -
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 41,703 $ 36,795
Interest Payable 11,954 10,412
Note Payable - Related Party (Note 4)
20,560 20,560
Total Current Liabilities 74,217 67,767
Total Liabilities 74,217 67,767
Stockholders' Equity
Common Stock Authorized; 100,000,000 Shares at $.001
Par Value; 500,000 Shares Issued and Outstanding
500 500
Capital In Excess of Par Value
9,500 9,500
Deficit Accumulated in the Development Stage
(84,217) (77,767)
Total Stockholders' Equity (74,217) (67,767)
Total Liabilities & Stockholders' Equity
$ - $ -
Alnilam Corporation
(A Development Stage Company)
Statements of Operations
(Unaudited)
For the Period
May 10, 2000
For the Three Months Ended For the Nine MonthsEnded(Inception)
June June June June to June
30, 2007 30, 2006 30, 2007 30, 2006 30, 2007
Revenue
$ - $ - $ - $ - $ -
Expenses General & Administrative
905 2,713 4,908 4,268 72,261
Total Expenses
905 2,713 4,908 4,268 (72,261)
Income (Loss)
From Operations
(905) (2,713) (4,908) (1,542) (72,261)
Other Income (Expenses)
Interest Expense
(514) (514) (1,542) (1,542) (11,956)
Total Other
Income (Expenses)
(514) (514) (1,542) (1,542) (11,956)
Income (Loss)
Before Taxes
(1,419) (3,227) (6,450) (5,810) (84,217)
Taxes
- - - - - -
Net Income (Loss)
$ (1,419) $ (3,227) $ (6,450) $( 5,810) $ (84,217)
(Loss) Per
Common Share
$ (.00) $ (.01) $ (.01) $(.01)
Weighted Average
Shares Outstanding
500,000 500,000 500,000 500,000
Alnilam Corporation
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
Accumulated
May 10, 2000
For the Nine Months Ended (Inception)
June June through June
30, 2007 30, 2006 30, 2007
Cash Flows from Operating Activities
Net Income (Loss) $ (6,450) $ (5,810) $ (84,217)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by
Operating Activities:
Increase in Accounts Payable /Interest Payable
6,450 5,810 53,657
Increase in Stock Issued for Services
- - 2,635
Net Cash Provided (Used) by
Operating Activities - - (27,925)
Cash Flows from Investing Activities
- - -
Cash Flows from Financing Activities
Issuance of Note Payable for Cash
- - 20,560
Issuance of Common Stock for Cash
- - 7,365
Net Cash Provided (Used) by
Financing Activities - - 27,925
Increase (Decrease) in Cash - - -
Cash, Beginning of Period - - -
Cash, End of Period $ - $ - $ -
Supplemental Cash Flow Information
Interest $ - $ - $ -
Income Taxes - - -
Alnilam Corporation
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2007
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.
Alnilam Corporation
(A Development Stage Company)
Notes to Financial Statements
June 30, 2007
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, 2007 and earlier years, no deferred tax liabilities have been
recognized.
The Company has cumulative net operating loss carryforwards of
approximately $84,000 at June 30, 2007. 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,
2007 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 promissory notes totaling $20,560 to
corporations whose officer(s) and/or director(s) are shareholders
of the Company. The notes are unsecured and carry interest rates
of 10% per annum. The principal and interest of the notes are
due and payable upon demand. As of June 30, 2007, the accrued
interest was $11,954.
The Company has the following note payable obligations:
June 30,
2007
Related party notes payable, due on demand,
accruing interest at a rate of 10% per annum $ 20,560
Total 20,560
Less Current Maturities (20,560)
Total Long-Term Notes Payable $ -
NOTE 5 - NEW TECHNICAL PRONOUNCEMENTS
In September 2006, FASB issued SFAS No. 157, (Fair Value
Measurements,) which is effective for calendar year companies on
January 1, 2008. The statement defines fair value, establishes a
framework for measuring fair value in accordance with generally
accepted accounting principles, and expands disclosures about
fair value measurements. The statement codifies the definition of
fair value as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The standard
clarifies the principle that fair value should be based on the
assumptions market participants would use when pricing the asset
or liability and establishes a fair value hierarchy that
prioritizes the information used to develop those assumptions.
The Company is currently assessing the potential impacts of
implementing this standard.
In September 2006, the FASB issued SFAS No. 158, "Employers'
Accounting for Defined Benefit Pension and Other Postretirement
Plans an amendment of FASB Statements No. 87, 88, 106 and 132
(R)" ("SFAS No. 158"). SFAS 158 requires an employer to recognize
the funded status of a defined benefit postretirement plan as an
asset or liability in its statement of financial position and to
recognize changes in that funded status in the year in which the
changes occur through comprehensive income. The funded status of
a benefit plan is defined as the difference between the fair
value of the plan assets and the plans benefit obligation. For a
pension plan the benefit obligation is the projected benefit
obligation and for any other postretirement benefit plan, such as
a retiree health care plan, the benefit obligation is the
accumulated postretirement benefit obligation. SFAS No. 158
requires an employer to recognize as a component of other
comprehensive income, net of tax, the gains and losses and prior
service costs or credits that arise during the period but that
are not recognized as components of net periodic benefit costs
pursuant to SFAS No. 87. SFAS No. 158 also requires an employer
to measure the funded status of a plan as of the date of its
year-end. Additional footnote disclosure is also required about
certain effects on net periodic benefit cost for the next year
that arise from the delayed recognition of gains or losses, prior
service costs or credits, and transition asset or obligation.
Except for the year-end measurement requirement, SFAS No. 158 is
effective for the year ending September 30, 2007. The Company
does not anticipate that the adoption of this statement will have
a material effect on its financial condition or operations.
NOTE 6 - 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.
NOTE 7 - REVERSE STOCK SPLIT
On February 7, 2005, the Board of Directors approved a resolution
to effect a one-for-two reverse split of the Company's issued and
outstanding shares of common stock. The shareholders approved
the reverse stock split on February 8, 2005. The effective date
was March 21, 2005. Each share of common stock issued and
outstanding immediately prior to the effective date was
reclassified as and changed into one-half of one share of common
stock. These financial statements reflect the stock split.
The common stock issued pursuant to the reverse stock split is
fully paid and non-assessable. The respective relative voting
rights and other rights that accompany the common stock were not
altered by the reverse stock split, and the common stock
continues to have a par value of $0.001 per share. Consummation
of the reverse stock split did not alter the number of our
authorized shares of common stock, which remains at 100,000,000
shares.
NOTE 8 EARNINGS PER SHARE
The computation of earnings (loss) per share of common stock is
based on the weighted average number of shares outstanding at the
date of the financial statements. The Company did not have any
potentially dilutive options or warrants at June 30, 2007 and
2006.
For the Three Months Ended
Basic / Full Diluted Earnings per Share:
June 30
2007 2006
Income (loss) (numerator) (1,419) (3,227)
Shares (denominator) 500,000 500,000
Per Share Amount $(.00) $(.01)
For the Six Months Ended
Basic / Full Diluted Earnings per Share:
June 30
2007 2006
Income (loss) (numerator) (6,450) (5,810)
Shares (denominator) 500,000 500,000
Per Share Amount $(.01) $(.01)
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 may 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, 2007, will be approximately $5,000, 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 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
The principal executive officer and principal financial officer
has concluded, based on his evaluation, as of the end of the
period covered by this report, that the Company's disclosure
controls and procedures (as defined in Rule 13a-15(e) under the
Exchange Act) are (1) effective to ensure that material
information required to be disclosed by us in reports filed or
submitted by us under the Exchange Act is recorded, processed,
summarized, and reported within the time periods specified in the
rules and forms of the Securities and Exchange Commission, and
(2) effective to ensure that information required to be disclosed
by us in such reports filed or submitted by the Company under the
Exchange Act is accumulated and communicated to management of the
Company, including the principal executive officer, to allow
timely decisions regarding required disclosure.
Changes in internal controls
During the last quarter ended June 30, 2007, 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.
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS
(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
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, 2007
By:/s/ Eric Bronk
Eric Bronk, President and Principal
Financial and Accounting Officer
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549