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: September 30, 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), YES [X] NO [ ]
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 September 30, 2000:
1,018,900
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
See attached.
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KAYENTA KREATIONS, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
NINE MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED)
AND
YEAR ENDED DECEMBER 31, 2000
WITH
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
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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 of September 30, 2000, and the related statements of operations,
and cash flows for the three and nine months ended September 30, 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.
Salt Lake City, Utah
November 16, 2000
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KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED BALANCE SHEETS
ASSETS
September 30,December 31,
2000 1999
(Unaudited)
CURRENT ASSETS
Cash in bank $0 $0
Accounts receivable 0 28
Prepaid expenses 0 255
Inventory 682 965
___________ __________
Total Current Assets 682 1,248
___________ __________
EQUIPMENT
Office equipment and displays, less 5,356 7,148
depreciation of $5,967 and $5,589 ___________ __________
TOTAL ASSETS $6,038 $8,396
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Cash overdraft $6 $123
Accounts payable and accrued liabilities 681 349
Stockholders' advances 9,430 3,300
State franchise tax payable 0 100
___________ __________
Total Current Liabilities 10,117 3,872
___________ __________
DEFERRED TAXES PAYABLE 132 132
___________ __________
STOCKHOLDERS' EQUITY (DEFICIT)
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 1,019 1,019
issued and outstanding respectively
Capital in excess of par value 47,193 47,193
Earnings (deficit) accumulated (52,423) (43,820)
during the development stage ___________ __________
Total Stockholders' Equity (Deficit) (4,211) 4,392
___________ __________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $6,038 $8,396
=========== ==========
See notes to Condensed Financial Statements.
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KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three For the Nine Cumulative
Months Ended Months Ended During the
September 30, September 30, Development
2000 1999 2000 1999 Stage
SALES
Sales - net $0 $753 $377 $935 $2,814
Less cost of Sales 0 (364) (210) (445) (1,444)
________________________________________
Gross Margin 0 389 167 490 1,370
________________________________________
SELLING, GENERAL AND ADMINISTRATIVE
Accounting and legal 613 1,150 3,730 2,600 13,728
Amortization 0 50 0 150 602
General and administrative 568 1,703 2,172 3,936 31,146
Depreciation 548 563 1,787 1,926 7,548
________________________________________
Total Selling,General 1,729 3,466 7,689 8,612 53,024
and Administration ________________________________________
NET INCOME FROM OPERATIONS (1,729)(3,077)(7,522) (8,122) (51,654)
OTHER INCOME (EXPENSE)
Interest income 0 5 0 36 900
Loss on asset disposal 0 0 (591) 0 (591)
Interest expense (215) (7) (490) (16) (548)
________________________________________
NET INCOME BEFORE TAXES (1,944)(3,079)(8,603) (8,102) (51,893)
Income tax(provision) 0 0 0 0 (132)
benefits ________________________________________
NET INCOME(LOSS) BEFORE
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE (1,944) (3,079)(8,603) (8,102) (52,025)
Cumulative effect of
accounting change for
organization costs 0 0 0 0 (398)
________________________________________
NET INCOME (LOSS) $(1,944)$(3,079)$(8,603)$(8,102) $(52,423)
============ ===========================
EARNINGS(LOSS) PER SHARE
BEFORE ACCOUNTING CHANGE $0.00 $0.00 $0.01 $0.01 $0.05
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE $0.00 $0.00 $0.00 $0.00 $0.00
________________________________________
EARNINGS (LOSS) PER SHARE $0.00 $0.00 $0.01 $0.01 $0.05
============ ===========================
See notes to Condensed Financial Statements.
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KAYENTA KREATIONS, INC.
(A Development Stage Company)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three For the Nine Cumulative
Months Ended Months Ended During the
September 30, September 30, Development
2000 1999 2000 1999 Stage
CASH FLOWS FROM OPERATING ACTIVITIES
Cash from sales $0 $753 $377 $936 $2,814
Cash paid for organization costs 0 0 0 0 (1,000)
Cash from interest 0 5 0 36 900
Cash paid for interest (3) (7) (13) (16) (71)
Cash paid for supplies and (2,326)(3,408) (5,691)(7,567) (46,868)
employee services
Cash paid for taxes 0 0 (100) (100) (100)
_____________ ______________ __________
Net Cash (Used) by (2,329)(2,657) (5,427)(6,711) (44,325)
Operating Activities _____________ ______________ __________
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of equipment 0 0 (586) 0 (13,323)
_____________ ______________ __________
Net cash (Used) provided 0 0 (586) 0 (13,323)
by Investing Activities _____________ ______________ __________
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock 0 0 0 0 62,725
Direct offering costs 0 0 0 0 (14,533)
Stockholder advances 2,330 2,300 6,130 2,300 9,430
Contributed capital 0 0 0 0 20
_____________ ______________ __________
Net Cash Provided (Used) 2,330 2,300 6,130 2,300 57,642
By Financing Activities _____________ ______________ __________
NET INCREASE (DECREASE) IN CASH 1 (357) 117(4,411) (6)
CASH - BEGINNING OF PERIOD (7) 998 (123)5,052 0
_____________ ______________ __________
CASH - END OF PERIOD $(6) $641 $ (6) $641 $ (6)
============= ============== ==========
RECONCILIATION OF NET INCOME TO NET
CASH PROVIDED(USED) BY OPERATING
ACTIVITIES
NET INCOME (LOSS) $(1,944)$(3,079)$(8,603)$(8,102)$(52,423)
_____________ ______________ __________
Adjustments to reconcile net income
(loss) to net cash provided (used)
by operating activities
Amortization of organization costs 0 50 0 150 602
Cumulative effect of accounting 0 0 0 0 398
change
Loss on disposal of assets 0 0 591 0 419
Depreciation 548 642 1,787 1,926 7,548
Change in assets and liabilities
Organization costs 0 0 0 0 (1,000)
Accounts receivable 0 (800) 28 (800) 0
Prepaid expenses 0 0 256 0 0
Inventory 0 0 283 81 (682)
Accounts payable and accrued (933) 530 331 234 681
liabilities
Deferred taxes payable 0 0 0 0 132
Franchise taxes payable 0 0 (100) (200) 0
_____________ ______________ __________
Total Adjustments (385) 422 3,176 1,391 8,098
_____________ ______________ __________
NET CASH PROVIDED(USED) BY $(2,329)$(2,657)$(5,427)$(6,711)$(44,325)
OPERATING ACTIVITIES ============= ============== ==========
See notes to Condensed Financial Statements.
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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 September 30, 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 September 30, 2000
and 1999 are not necessarily indicative of the operating results
for the full year.
NOTE 2 - STOCKHOLDERS' ADVANCES
Advances from Stockholders to the Company are unsecured, to be
repaid upon demand or within one year and carries interest at 10%
per annum.
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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 nine months ended September 30, 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.
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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
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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.
Kayenta Kreations, Inc.
Date: November 17, 2000 by: /s/ Michelle Barlow
Michelle Barlow, Chairman
