U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 333-4066
KAYENTA KREATIONS, INC.
(Exact name of registrant as specified in its charter)
NEVADA 87-0554463
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1020 Belmont Avenue
Salt Lake City, Utah 84105
(Address of principal executive offices)
(801) 521-4128
(Registrant's telephone number, including area code)
Check whether the issuer (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such report(s), and (2)
has been subject to such filing requirements for the past 90
days.
YES [X] NO [ ]
The number of $.001 par value common shares outstanding at March
31, 1997: 1,018,900
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
See attached.
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED BALANCE SHEETS
ASSETS
March 31, 1997 December 31, 1996
(Unaudited)
CURRENT ASSETS:
Cash in bank $ 40 $ 1,036
Deferred offering costs - 5,819
------------ -------------
Total Current Assets 40,705 6,855
------------ -------------
EQUIPMENT
Office equipment, less depreciation of $91 5,363 -
------------ -------------
OTHER ASSETS:
Organization costs, net of amortization of
$252 and $202 748 798
------------ -------------
Total Other Assets 748 798
------------ -------------
TOTAL ASSETS $ 46,816 $ 7,653
------------ -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 790 $ -
------------ -------------
Total Current Liabilities 790 -
------------ -------------
STOCKHOLDERS' EQUITY:
Preferred stock; $.001 par value, 5,000,000
shares authorized, no shares issued and
outstanding - -
Common stock; $.001 par value, 50,000,000
shares authorized, 1,018,900 and 800,000
shares issued and outstanding respectively 1,019 800
Capital in excess of par value 47,194 7,220
Earnings (deficit) accumulated during the
development stage (2,187) (367)
------------ -------------
Total Stockholders' Equity 46,026 7,653
------------ -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 46,816 $ 7,653
------------ -------------
See Notes to Condensed Financial Statements
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
For the For the Cumulative
Three Months Three Months During the
Ended Ended Development
March 31, 1997 March 31, 1996 Stage
REVENUE
Interest $ 33 $ 21 $ 39
------------ ----------- ----------
EXPENSES
Amortization 50 38 252
Bank charges 22 33 44
Depreciation 91 - 91
Dues and subscriptions 99 - 99
Equipment rental 98 - 98
Insurance 255 - 255
License and permits 357 - 357
Office expense 805 - 955
Professional fees 75 - 75
------------ ----------- ----------
Total expenses 1,852 71 2,226
------------ ----------- ----------
NET INCOME (LOSS) $ (1,819) $ (50) $ (2,187)
------------ ----------- ----------
EARNINGS (LOSS) PER SHARE $ (0.00) $ (0.00) $ (0.00)
------------ ----------- ----------
See Notes to Condensed Financial Statements
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For the For the Cumulative
Three Months Three Months During the
Ended Ended Development
March 31, 1997 March 31, 1997 Stage
INCREASE (DECREASE) IN CASH
CASH FLOWS FROM OPERATING ACTIVITIES
Cash from interest $ 33 $ 21 $ 39
Cash paid for organization costs - - (1,000)
Bank charges (22) (33) (44)
Cash paid for organization expense,
supplies and services (899) - (1,049)
---------- ---------- ----------
Net Cash (Used) by Operating
Activities (888) (12) (2,054)
---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase office equipment (5,454) - (5,454)
---------- ---------- ----------
Net Cash (Used) by Investing
Activities (5,454) - (5,454)
---------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock 54,725 3,000 62,725
Direct costs of offering (8,714) - (14,532)
Contributed capital - - 20
---------- ---------- ----------
Net Cash Provided by Financing
Activities 46,011 3,000 48,213
---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH 39,669 2,988 40,705
CASH - BEGINNING OF PERIOD 1,036 4,000 -
---------- ---------- ----------
CASH - END OF PERIOD $ 40,705 $ 6,988 $ 40,705
---------- ---------- ----------
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
NET INCOME (LOSS) $ (1,819) $ (50) $ (2,187)
---------- ---------- ----------
Adjustments to reconcile net income
(loss) to net cash provided (used)
by operating activities
Amortization 50 38 252
Depreciation 91 - 91
Change in assets and liabilities
Organization costs - - (1,000)
Accounts payable 790 - 790
---------- ---------- ----------
Total Adjustments 931 38 133
---------- ---------- ----------
NET CASH (USED) BY OPERATING ACTIVITIES $ (888) $ (12) $ (2,054)
---------- ---------- ----------
See Notes to Condensed Financial Statements
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the Company
without audit. In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the financial
position, results of operation and cash flows at March 31, 1997 and 1996 and
for all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these
condensed financial statements be read in conjunction with the financial
states and notes thereto included in the Company's December 31, 1996 audited
financial statements. The results of operations for the periods ended March
31, 1997 and 1996 are not necessarily indicative of the operating results for
the full year.
<PAGE>
Item 2: Management's Discussion & Analysis or Plan of Operations
The Company was incorporated on December 26, 1995. The
Company has not yet generated any revenues from operations and is
considered a development stage company. To date, activities have
been limited to organizational matters, the preparation and
filing of the registration statement to register a public
offering of its securities, pursuant to which the Company offered
and sold 218,900 shares of common stock and raised gross proceeds
of $54,725, the closing of such offering and the initial
commencement of limited operations. The Company has no
significant assets other than the net proceeds from the offering.
Management's plan of operation for the next twelve months is
to use the net proceeds from the offering primarily to complete
artwork and pay for the costs of an initial printing of
approximately 10,000 copies of a specialty children's coloring
art book, which the Company will then attempt to market. The
Company will also use offering proceeds to make initial equipment
purchases and other capital expenditures for a computer system, a
digitized scanner software program, a plain paper laser fax
machine, a laser printer and a photocopy machine. A portion of
the proceeds will also be used to provide initial working capital
for the operation of the Company's proposed business.
There is absolutely no assurance that the Company will be
able, with the proceeds of this offering, to enter into suitable
arrangements for printing and marketing. At this time, no
assurances can be given with respect to the length of time after
commencement of operations that it will be necessary to fund
operations from proceeds of this offering. If the marketing of
the initial printing of books is successful, management intends
for the foreseeable future to reinvest the revenues derived
therefrom for additional printings and editions of the coloring
art books, and for development and marketing costs relating to a
line of colored pencils which the Company also intends to
eventually market.
Management believes that the net proceeds of this offering
will be sufficient to make an initial printing of approximately
10,000 copies and to begin marketing the coloring art books,
after which time management anticipates that the Company will
begin generating revenues from sales to cover ongoing expenses.
However, there is absolutely no assurance of this. If the
initial marketing of the coloring art books is unsuccessful,
investors will have lost their money and management will not
attempt to pursue further marketing efforts with respect to such
product, and it is unlikely the Company would have the financial
ability to do so in any event. Instead management will call a
shareholders meeting to decide whether to liquidate the Company
or what direction the Company will pursue, if any. However, the
Company presently has no plans, commitments or arrangements with
respect to any other potential business venture and there is no
assurance the Company could become involved with any other
business venture, especially any business venture requiring
significant capital.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Change in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Kayenta Kreations, Inc.
Date: May 28, 1997 by: /s/ Michelle Barlow
Michelle Barlow, Chairman
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS DOCUMENT CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF KAYENTA KREATIONS, INC. AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 40,705
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<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 40,705
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 46,816
<CURRENT-LIABILITIES> 790
<BONDS> 0
0
0
<COMMON> 1,019
<OTHER-SE> 45,007
<TOTAL-LIABILITY-AND-EQUITY> 46,816
<SALES> 33
<TOTAL-REVENUES> 33
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,852
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,819)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,819)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,819)
<EPS-PRIMARY> (0.00)
<EPS-DILUTED> (0.00)
</TABLE>
