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, 2000
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, 2000: 1,018,900
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
See attached.
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2000
(UNAUDITED)
AND
YEAR ENDED DECEMBER 31, 1999
WITH
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
<PAGE>
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
Board of Directors and Shareholders
KAYENTA KREATIONS, INC.
Salt Lake City, Utah
I have reviewed the accompanying balance sheet of Kayenta Kreations,
Inc. as March 31, 2000, and the related statements of operations, and
cash flows for the three months ended March 31, 2000 and 1999. These
financial statements are the responsibility of the management of Kayenta
Kreations, Inc.
I conducted my review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial statements consist principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit in accordance with generally accepted auditing standards,
the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, I do not express
such an opinion.
Based on my review, I am not aware of any material modifications that
should be made to the accompanying financial statements in order for
them to be in conformity with generally accepted accounting principles.
David T. Thomson, P.C.
Salt Lake City, Utah
May 9, 2000
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED BALANCE SHEETS
ASSETS
March 31, December 31,
2000 1999
(Unaudited)
CURRENT ASSETS
Cash in bank $626 $0
Accounts receivable 28 28
Prepaid expenses 0 255
Inventory 682 965
__________ ___________
Total Current Assets 1,336 1,248
__________ ___________
EQUIPMENT
Office equipment and displays, less depreciation 6,494 7,148
of $6,243 and $5,589 __________ ___________
TOTAL ASSETS $7,830 $8,396
========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Bank overdraft $0 $123
Accounts payable and accrued liabilities 92 349
Stockholders' advances 4,300 3,300
State franchise tax payable 100 100
__________ ___________
Total Current Liabilities 4,492 3,872
__________ ___________
DEFERRED TAXES PAYABLE 132 132
__________ ___________
STOCKHOLDERS' EQUITY
Preferred stock; $.001 par value, 5,000,000 shares
authorized, no shares issued and outstanding 0 0
Common stock; $.001 par value, 50,000,000 shares
authorized, 1,018,900 and 1,018,900 shares issued 1,019 1,019
and outstanding respectively
Capital in excess of par value 47,193 47,193
Earnings (deficit) accumulated during the (45,006) (43,820)
development stage __________ ___________
Total Stockholders' Equity 3,206 4,392
__________ ___________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $7,830 $8,396
========== ===========
See notes to Condensed Financial Statements.
See Independent Accountant's Review Report
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three For the Three Cumulative
Months Ended Months Ended During the
March 31, March 31, Development
2000 1999 Stage
SALES
Sales - net $377 $183 $2,814
Less cost of Sales (210) (81) (1,444)
_________________________________
Gross Margin 167 102 1,370
_________________________________
SELLING, GENERAL AND ADMINISTRATIVE
Accounting and legal 0 1,150 9,998
Amortization 0 50 602
General and administrative 693 1,167 29,667
Depreciation 654 642 6,415
_________________________________
Total Selling, General and 1,347 3,009 46,682
Administration _________________________________
NET INCOME FROM OPERATIONS (1,180) (2,907) (45,312)
OTHER INCOME (EXPENSE)
Interest income 0 24 900
Interest expense (6) (2) (64)
_________________________________
NET INCOME BEFORE TAXES (1,186) (2,885) (44,476)
Income tax (provision) benefit 0 0 (132)
_________________________________
NET INCOME (LOSS) BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE (1,186) (2,885) (44,608)
Cumulative effect of accounting change
for organization costs 0 0 (398)
_________________________________
NET INCOME (LOSS) $(1,186) $(2,885) $(45,006)
===================== ===========
EARNINGS (LOSS) PER SHARE BEFORE
ACCOUNTING CHANGE $0.00 $0.00 $0.04
===================== ===========
CUMULATIVE EFFECT OF ACCOUNTING CHANGE $0.00 $0.00 $0.00
===================== ===========
EARNINGS (LOSS) PER SHARE $0.00 $0.00 $0.04
===================== ===========
See notes to Condensed Financial Statements.
See Independent Accountant's Review Report
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three For the Three Cumulative
Months Ended Months Ended During the
March 31, March 31, Development
2000 1999 Stage
CASH FLOWS FROM OPERATING ACTIVITIES
Cash from sales $377 $183 $2,814
Cash paid for organization costs 0 0 (1,000)
Cash from interest 0 24 900
Cash paid for interest (6) (2) (64)
Cash paid for taxes 0 (100) 0
Cash paid for supplies and employee (622) (2,670) (41,799)
services ______________________ ___________
Net Cash (Used) by Operating (251) (2,565) (39,149)
Activities ______________________ ___________
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of equipment 0 0 (12,737)
______________________ ___________
Net cash (Used) by Investing 0 0 (12,737)
Activities ______________________ ___________
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock 0 0 62,725
Direct offering costs 0 0 (14,533)
Contributed capital 1,000 0 4,320
______________________ ___________
Net Cash Provided(Used) By Financing 1,000 0 52,512
Activities ______________________ ___________
NET INCREASE (DECREASE) IN CASH 749 (2,565) 626
CASH - BEGINNING OF PERIOD (123) 5,052 0
______________________ ___________
CASH - END OF PERIOD $626 $2,487 $626
====================== ===========
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES
NET INCOME (LOSS) $(1,186) $(2,885) $(45,006)
______________________ ___________
Adjustments to reconcile net income(loss)
to net cash provided(used) by operating activities
Amortization of organization costs 0 50 602
Cumulative effect of accounting change 0 0 398
Depreciation 654 641 6,415
Asset disposal 0 0 (172)
Change in assets and liabilities
Organization costs 0 0 (1,000)
Accounts receivable 0 0 (28)
Prepaid expenses 255 0 0
Inventory 283 81 (682)
Accounts payable and accrued liabilities (257) (352) 92
Franchise taxes payable 0 (100) 100
Deferred taxes payable 0 0 132
______________________ ___________
Total Adjustments 935 320 5,857
______________________ ___________
NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES $(251) $(2,565) $(39,149)
====================== ===========
See notes Condensed Financial Statements
See Independent Accountant's Review Report
<PAGE>
KAYENTA KREATIONS, INC.
(A Development Stage Company)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statement 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, 2000 and 1999 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, 1999 audited financial statements.
The results of operations for the periods ended March 31, 2000 and
1999 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 significant revenues from
operations and is considered a development stage company.
The company has experienced losses of $10,933 and $10,755 in
1999 and 1998 and has experienced losses from its inception. The
Company has limited operating capital and no income producing
assets and again sustained losses during the three months ended
March 31, 2000. In light of the above circumstances, the ability
of the Company to continue as a going concern is substantially in
doubt. The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
Management believes their plans will provide the corporation
with the ability to continue in existence. Management's plan of
operation for the next twelve months is to maintain its filings
and curtail operations and activities to keep it in existence.
This may require additional advances from stockholders to pay
accounting and legal fees associated with its filings. Its Web
page is still available for sales and marketing of its product
through the year. The Company believes sales from this site and
from others who have committed to purchase its product will cover
expenses which will be curtailed to the minimum amount possible.
Management believes it has resources currently available to
maintain the entity as a going concern.
However, there is absolutely no assurance of this. If the
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 may 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. CHANGES IN SECURITIES AND USE OF PROCEEDS
(a) None.
(b) None.
(c) See Part I, Item 1 (financial statements) and Item 2
(management's discussion) for financial information and
a discussion regarding use of proceeds.
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 12, 2000 by: /s/ Michelle Barlow
Michelle Barlow, Chairman
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE 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-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 626
<SECURITIES> 0
<RECEIVABLES> 28
<ALLOWANCES> 0
<INVENTORY> 682
<CURRENT-ASSETS> 1,336
<PP&E> 12,737
<DEPRECIATION> 6,243
<TOTAL-ASSETS> 7,830
<CURRENT-LIABILITIES> 4,492
<BONDS> 0
0
0
<COMMON> 1,019
<OTHER-SE> 2,187
<TOTAL-LIABILITY-AND-EQUITY> 7,830
<SALES> 377
<TOTAL-REVENUES> 377
<CGS> 210
<TOTAL-COSTS> 210
<OTHER-EXPENSES> 1,347
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6
<INCOME-PRETAX> (1,186)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,186)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,186
<EPS-BASIC> (0.00)
<EPS-DILUTED> 0
</TABLE>
