U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB
[X] Annual report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 For the fiscal year ended September 30, 2000, or
[ ] Transition report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the Transition period from ___________ to ____________
Commission file number 000-28339
Almost Country Productions, Inc.
(Name of Small Business Issuer in Its Charter)
Nevada 84-1398342
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
7050 Union Park Center, Suite 600, Midvale, Utah 84047
(Address of Principal Executive Offices) (Zip Code)
(801) 562-2252
(Issuer's Telephone Number, Including Area Code)
Securities registered under Section 12(b) of the Act:
Title of each class Name of each Exchange on which Registered
None None
Securities registered under Section 12(g) of the Act:
Common Stock, $0.001 par value
(Title of class)
Check whether the issuer: (1) 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 filing requirements for the past 90 days.
Yes [X] No[ ]
Check if there is no disclosure of delinquent filers in response to Item
405 of Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB. [X]
Issuer's revenues for its most recent fiscal year was $365
The aggregate market value of the voting and non-voting common equity
held by non-affiliates computed by reference to the average bid and asked
prices of such stock, as of December 27, 2000 was $75,687
The number of shares outstanding of the issuer's common equity, as of
December 27, 2000 was 621,100.
Documents Incorporated by Reference: None
Transitional Small Business Disclosure Format: Yes [ ] No [X]
ALMOST COUNTRY PRODUCTIONS, INC.
FORM 10-SB
TABLE OF CONTENTS
PART I
ITEM 1. Description of the Business
ITEM 2. Description of Property
ITEM 3. Legal Proceedings
ITEM 4. Submission of Matters to a Vote of Security Holders
PART II
ITEM 5. Market for Common Equity and Related Stockholder Matters
ITEM 6. Management's Discussion and Analysis or Plan of Operation
ITEM 7. Financial Statements
ITEM 8. Changes in and Disagreements with Accountants On Accounting and
Financial Disclosure
PART III
ITEM 9. Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a)Of the Exchange Act
ITEM 10.Executive Compensation
ITEM 11.Security Ownership of Certain Beneficial Owners and Management
ITEM 12. Certain Relationships and Related Transactions
ITEM 13. Exhibits and Reports on Form 8-K
Signatures
The information contained in this Form 10-KSB for the fiscal year ended
September 30, 2000, is as of the latest practicable date except for financial
information which relates to the fiscal year
PART I
ITEM 1.
Business Development
Almost Country Productions, Inc. (the "Company") is a Nevada corporation
which has not been actively in business since approximately November, 2000,
when it elected to discontinue its music production and marketing business.
The Company is deemed to be a "blank check" company, in that it is currently
seeking an unidentified business to acquire or with which it may merge. The
Company was organized on October24, 1996, under the laws of the State of
Nevada, for the purpose of producing and marketing music. In approximately
March 1997 the Company sold 100,000 shares of its common stock at $.30 per
share in an offering pursuant to Rule 504 and Section 3(b) of the Securities
Act of 1933. The Company realized net proceeds of approximately $25,000.
Shortly thereafter the Company invested its funds in the production and then
the promotion of a compact disc and audiotape entitled "Wildest Dream" and
performed by Pamela Lind. Pamela Lind is the stage name for the Company's
former President, Pamela Lindquist.
The Company entered into an agreement on September 13, 1996 with Ms.
Lindquist which provided that the Company would tender $25,000 to develop and
produce tapes and CD's for Almost Country, Pamela Lindquist's music group.
Ms. Lindquist assigned a royalty of $2.00 from the sale of each tape and $2.50
from the sale of each compact disc to the Company for a period of two years.
The royalty agreement expired on September 30, 2000.
The musical production was completed and approximately 1,100 compact
discs were produced and 550 cassette audio tapes. The results failed to meet
expectations. Only approximately 89 cassette tapes and 380 compact discs have
been sold or used for marketing purposes. The Company had sales of $636
through September 30, 2000.
The Company's board of directors determined that the Company would
discontinue its then business, and pursue other opportunities. The Company
intends to seek potential business opportunities with the intent to acquire or
merge with such business. The Company is considered a development stage
company and is a "shell" or "blank check" corporation. As of September 30,
2000, the Company had assets of $797 and current liabilities of $2,025. The
operating history has been limited to the receipt of the royalty from the sale
of the tapes and CD's.
If the Company acquires or merges with an operating business, it is
likely that the Company's current shareholders will experience substantial
dilution and there will be a change in control of the Company.
Any company that is merged into or acquired by the Company will become
subject to the same reporting requirements as the Company. Thus, if the
Company successfully completes an acquisition or merger, that company must
have audited financial statements for at least the two most recent fiscal
years, or if the company has been in business for less than two years, audited
financial statements must be available from inception. This requirement limits
the Company's possible acquisitions or merger because private companies either
do not have audited financial statements or are unable to produce audited
statement without delay and expense.
On December 20, 2000 Mr. Reed Benson was appointed president of the
Company to pursue the Company's current business objectives. He will serve in
that capacity at the discretion of the board of directors. Mr. Benson
receives no compensation from the Company at this time.
The Company's principal executive offices are located at 7050 Union Park
Center, Suite 600, Midvale, Utah 84047 and its telephone number is
(801)562-2252.
Company's Business
The Company has no recent operating history. No representation is made,
and none is intended, that the Company has the ability to carry on future
business activities successfully. Further, there is no assurance that the
Company will have the opportunity to merge with or acquire an operating
business, a business opportunity or assets that will be of material value to
the Company.
Management intends to investigate, research and, if it is deemed to be
advisable, acquire or merge with one or more businesses or business
opportunities. Presently the Company has no commitment or arrangement,
written or oral, to participate in any business opportunity and management
cannot predict the nature or type of any possible future acquisition or
merger. Management has broad discretion in its search for and negotiation
with any potential business or business opportunity.
Sources
Management intends to use various sources and resources in the search
for potential business opportunities including, but not limited to the
Company's officers and directors, members of the financial community, and
consultants. The Company presently has no intention of hiring a consultant or
consultants but reserves the right to do so if deemed advisable. Because of
the Company's lack of resources the Company will be unable to retain for a fee
any professional firms specializing in business acquisitions and
reorganizations. Most likely the Company will have to rely on outside
sources, not otherwise associated with the Company, that will accept
compensation only upon a successful acquisition or merger.
The Company will not limit its search to any specific industry or type of
business. The Company may investigate and acquire a venture that is in its
preliminary or development stage, is already in operation, or in various
stages of its corporate existence or development. Management is unable to
determine the status or nature of any venture in which the Company may
participate. A potential venture may need additional capital or equity or may
merely desire to have its shares publicly traded. Most likely the acquisition
or merger would involve an operating business desiring to have a public
trading market for its shares. Management believes that the Company could
provide such an opportunity for a private operating business to become a
publicly held corporation without the time and expense typically associated
with an initial public offering.
Process of Evaluation
Once a possible merger or acquisition has been identified, management
will seek to determine if a merger or acquisition should be made or if
additional investigation is needed. This determination will be based on
management's knowledge and experience, in evaluating the preliminary
information available to them. Management may also engage other professionals
to assist in the analysis of the business opportunities. Because of the
Company's lack of resources it is unlikely it will have funds for a complete
and exhaustive investigation and evaluation. It is unlikely that the Company
will receive a fairness opinion regarding any business opportunities.
In the evaluation, consideration will be given to several factors
including but not limited to potential benefits to the Company, working
capital requirements, operating history, competition, present and anticipated,
future growth prospects, stage of development or exploration, future funding
requirements, management, profit potential and other factors deemed relevant
to the specific circumstances.
All potential risks cannot be identified because the Company has not yet
identified any specific business opportunity. No assurance can be given that
following an acquisition or merger that the venture will be successful or even
develop into a going concern or if the business is already operating, that it
will continue operating successfully or at a profit. Many potential business
opportunities involve new and untested products, processes or market
strategies which may fail.
Potential Acquisition or Merger Structure
The Company is unable to determine the manner in which it may participate
or be a part of a business opportunity. Each opportunity will be reviewed,
and based upon that review, a suitable legal structure or method of
acquisition or merger will be determined. The manner in which the Company
participates will depend upon the nature of that opportunity, the respective
needs, objectives, and goals of each party and the relative negotiating
strength. Participation in a business opportunity may take the form of an
asset purchase, stock purchase, reorganization, merger or consolidation, joint
venture, license agreement, or partnership. The Company does not intend to
participate in business opportunities through the purchase of minority stock
positions. The Company may act directly or indirectly through an interest in
a partnership, corporation or other form of business organization.
With limited assets and no recent operating history it is anticipated
that if the Company successfully enters into a transaction with an operating
business opportunity existing shareholders will experience substantial
dilution and a probable change in control of the Company. Most likely, the
owners of the business opportunity will acquire control of the Company in the
transaction. Management has not set any guideline as to the amount of control
it would offer to prospective business opportunities. Management will attempt
to negotiate the best possible agreement for the benefit of the Company's
shareholders.
Government Regulation
The Company's business activities are subject to general governmental
regulations.
Facilities, Equipment and Employees
The Company's offices are located at the office of its current
president, Mr. Benson, in Midvale, Utah. The Company has no rent obligation
at the present time. The Company has no employees.
The Company believes that inflation has little impact on its business
affairs.
ITEM 2. Description of Property
The Company's offices are located at the office of its president in
Midvale, Utah and has no obligation to pay rent at the present time. The
Company has no other property.
ITEM 3. Legal Proceedings
There are no legal proceedings pending against the Company, and, to the
best knowledge of the Company, no litigation has been threatened.
ITEM 4. Submission of Matters to a Vote of Security Holders
During the fiscal year ended September 30, 2000 no matters were
submitted to a vote of security holders.
Part II
ITEM 5. Market for Common Equity and Related Stock Matters
The Company's common stock is currently traded in the over-the-counter
market on the NASD's Electronic Bulletin Board under the symbol "ACPI".
The Company's stock began trading on November 20, 2000. The following table
sets forth, for the respective period indicated, the high and low bid
quotations, as adjusted for stock splits of the Company's common stock,
as reported by the National Quotation Bureau, and represents prices between
dealers, does not include retail markups, markdowns or commissions, and may
not represent actual transactions:
Calendar Quarters High Bid Low Bid
----------------- --------- -------
2000
4th Quarter .625 .625
As of December 27, 2000, the Company had 621,100 shares of its common
stock issued and outstanding, and there were approximately 44 shareholders of
record.
As of the date hereof, the Company has not paid or declared any cash
dividends. Future payment of dividends by the Company, if any, is at the
discretion of the Board of Directors and will depend, among other criteria,
upon the Company's earnings, capital requirements, and its financial
condition as well as other relative factors. Management intends to retain any
and all earnings to finance the development of its business, at least in the
foreseeable future. Such a policy is likely to be maintained as long as
necessary to provide working capital for the Company's operations.
RECENT SALES OF UNREGISTERED SECURITIES
In March of 2000, the Company's board of directors voted to issue 100,000
shares to its then current president as compensation for work done on behalf
of the Company and as consideration for her loan to the Company. The Company
believes this transaction was exempt from registration under the Securities
Act of 1933, pursuant to Section 4(2), and the regulations promulgated
thereunder.
In March of 2000, the Company sold 200,000 shares of its common stock for
$20,000 to Richard Casper, an investor. The Company believes that the
transaction is exempt from registration under the Securities Act of 1933
pursuant to Rule 505 of Regulation D promulgated thereunder. See Item 11.
In June of 2000, the Company issued 20,000 shares of common stock to
Claire Singleton for consulting services provided to the Company. The Company
believes this transaction is exempt from registration under the Securities Act
of 1933 pursuant to Section 4(2).
Item 6. Management's Discussion and Analysis or Plan of Operation.
The following information should be read in conjunction with the
consolidated financial statements and notes thereto appearing elsewhere in
this Form 10K-SB.
The Company is a development stage company as it has limited assets,
operations and income. It is believed that only limited capital will be
required to maintain the Company's operations and any funds needed in the
immediate future will be provided by the officers and directors of the
Company. Nevertheless, unless the Company is able to accomplish an
acquisition or merger with an operating business or is able to obtain
significant financing there is substantial doubt and concern about the
Company's ability to continue as a going concern.
Plan of Operation
During the next year the Company will investigate possible business
opportunities with the intent to acquire or merge with one or more business
ventures. Generally management will follow the procedures discussed in Item 1
above. Because the Company has no funds, it may be necessary for the officers
and directors to advance funds or accrue expenses until a future time.
Management intends to operate on limited funds. If the Company determines to
employ outside advisers or consultants in its search for business
opportunities, the Company may have to attempt to raise additional funds. As
of this date the Company has no plans to engage outside advisers or
consultants or to attempt to raise additional capital. It may be anticipated
that at such time that the Company does enter into a transaction to acquire or
enter into a business opportunity, the Company will need to raise substantial
capital for operations. If the Company seeks to raise capital, most likely it
would attempt a private placement of its securities. Because of the Company's
current status a public sale of securities, or borrowing from conventional
sources, is unlikely. No assurance can be given that the Company will be able
to obtain any funding if it determines funding is necessary or that such
funding could be obtained on terms acceptable to the Company. Since its
inception until September 30, 2000, the Company has accumulated a net loss of
$(59,143) from its activities. This loss may be carried forward and used to
offset future income, if any. The Company must comply with applicable
regulations and must generate sufficient income prior to the expiration of the
net operating loss carryforwards. If there is a change in control of the
Company, there will be an annual limitation on the amount of the net operating
loss carryforwards which can be used. It is possible that the Company will
receive little or no benefit from the net operating loss carryforwards. As of
September 30, 2000, the Company had current assets of $797 and current
liabilities of $2,025.
For the year ended September 30, 2000, revenues were $365 and expenses
were $20,639 with a net loss of $(20,331) compared to revenues of $83,
expenses of $6,477 and a net loss of $(6,440) for year ended September 30,
1999.
Recent Accounting Pronouncements
Statement of Financial Accounting Standards (SFAS) No. 136, "Transfers
of Assets to a not for profit organization or charitable trust that raises or
holds contributions for others", SFAS No. 137, "Accounting for Derivative
Instruments and Hedging Activities deferral of the effective date of FASB
Statement No. 133 (an amendment of FASB Statement No. 133.),", SFAS No. 138
"Accounting for Certain Derivative Instruments and Hedging Activities and
Amendment of SFAS No. 133", SFAS No. 139, "Recission of SFAS No. 53 and
Amendment to SFAS No. 63, 89 and 21", and SFAS No. 140, "Accounting to
Transfer and Servicing of Financial Assets and Extinguishment of Liabilities",
were recently issued. SFAS No. 136, 137, 138, 139 and 140 have no current
applicability to the Company or their effect on the financial statements would
not have been significant.
Inflation
In the opinion of management, inflation has not had, and will not have,
a material effect on the operations of the Company. When the Company
accomplishes a merger or acquisition, management will evaluate the possible
effects of inflation on operations and its business.
Risk Factors and Cautionary Statements
This Registration Statement contains certain forward-looking statements.
The Company wishes to advise readers that actual results may differ
substantially from such forward-looking statements. Forward-looking
statements involve risks and uncertainties that could cause actual results to
differ materially from those expressed in or implied by the statements,
including but not limited to, the following: the ability of the Company to
maintain a sufficient customer base to have sufficient revenues to fund and
maintain its operations, the ability of the Company to meet its cash and
working capital needs, to have sufficient revenues to continue operations.
ITEM 7. Financial Statements
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
PRITCHETT, SILER & HARDY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
CONTENTS
PAGE
Independent Auditors' Report 1
Balance Sheet, September 30, 1999 2
Statements of Operations, for the years ended
September 30, 1999 and 1998 and from inception
on October 24, 1996 through September 30, 1999 3
Statement of Stockholders' Equity (Deficit), from
inception on October 24, 1996 through
September 30, 1999 4
Statements of Cash Flows, for the years ended
September 30, 1999 and 1998 and from inception
on October 24, 1996 through September 30, 1999 5
Notes to Financial Statements 6 - 9
<PAGE>
PRITCHETT, SILER & HARDY, P.C.
430 EAST 400 SOUTH
Salt Lake City, Utah 84111
(801) 328-2727
INDEPENDENT AUDITORS' REPORT
Board of Directors
ALMOST COUNTRY PRODUCTIONS, INC.
Salt Lake City, Utah
We have audited the accompanying balance sheet of Almost Country Productions,
Inc. [a development stage company] at September 30, 1999, and the related
statements of operations, stockholders' equity (deficit) and cash flows for
the years ended September 30, 1999 and 1998 and from inception on October 24,
1996 through September 30, 1999. These financial statements are the
responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements audited by us present fairly, in all
material respects, the financial position of Almost Country Productions, Inc.
[a development stage company] as of September 30, 1999, and the results of its
operations and its cash flows for the years ended September 30, 1999 and 1998
and for the period from inception through September 30, 1999, in conformity
with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming the Company
will continue as a going concern. As discussed in Note 6 to the financial
statements, the Company has current liabilities in excess of current assets
and has not yet been successful in establishing profitable operations, raising
substantial doubt about its ability to continue as a going concern.
Management's plans in regards to these matters are also described in Note 6.
The financial statements do not include any adjustments that might result from
the outcome of these uncertainties.
/s/ Pritchett, Siler & Hardy, P.C.
Salt Lake City, Utah
October 6, 1999
<PAGE>
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
BALANCE SHEET
ASSETS
September 30,
1999
-------------
CURRENT ASSETS:
Cash in bank $ 1,358
Inventory 257
-------------
Total Current Assets 1,615
-------------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 100
Loans payable - related party 13,972
-------------
Total Current Liabilities 14,072
-------------
STOCKHOLDERS' EQUITY (DEFICIT):
Common stock, $.001 par value,
50,000,000 shares authorized, 301,100 shares
issued and outstanding 301
Capital in excess of par value 26,054
Deficit accumulated during the development stage (38,812)
-------------
Total Stockholders' Equity (Deficit) (12,457)
-------------
$ 1,615
=============
The accompanying notes are an integral part of this financial statements.
-2-
<PAGE>
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
STATEMENTS OF OPERATIONS
From
For the Inception on
Year Ended October 24,
September 30, 1996 Through
------------------------- September 30,
1999 1998 1999
------------ ------------ -------------
REVENUE:
Sales, net $ 83 $ - $ 271
COST OF GOODS SOLD 46 - 156
------------ ------------ -------------
Gross Profit 37 - 115
------------ ------------ -------------
EXPENSES:
General and administrative 6,421 4,460 14,844
Cost of record master - - 22,332
Other operating expenses 56 1,081 1,751
------------ ------------ -------------
Total Expenses 6,477 5,541 38,927
------------ ------------ -------------
LOSS BEFORE INCOME TAXES (6,440) (5,541) (38,812)
CURRENT TAX EXPENSE - - -
DEFERRED TAX EXPENSE - - -
------------ ------------ -------------
NET LOSS $ (6,440) $ (5,541) $ (38,812)
============ ============ =============
LOSS PER COMMON SHARE $ (.02) $ (.02) $ (.14)
============ ============ =============
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FROM THE DATE OF INCEPTION ON OCTOBER 24, 1996
THROUGH SEPTEMBER 30, 1999
Deficit
Accumulated
Common Stock Capital in During the
----------------------- Excess of Development
Shares Amount Par Value Stage
----------- ----------- ------------ -----------
BALANCE, October 24, 1996 - $ - $ - $ -
Issuance of 200,000 shares
common stock for cash,
October 24, 1996 at
$.01 per share 200,000 200 1,800 -
Issuance of 100,000 shares
common stock for cash,
March 31, 1997 at $.30 per
share, net of $5,975
offering costs 100,000 100 23,925 -
Issuance of 1,100 shares of
common stock for legal
services and other operating
expenses June 30, 1997 at
$.30 per share 1,100 1 329 -
Net loss for the period ended
September 30, 1997 - - - (26,831)
----------- ----------- ------------ -----------
BALANCE, September 30, 1997 301,100 301 26,054 (26,831)
Net loss for the year ended
September 30, 1998 - - - (5,541)
----------- ----------- ------------ -----------
BALANCE, September 30, 1998 301,100 301 26,054 (32,372)
Net loss for the year ended
September 30, 1999 - - - (6,440)
----------- ----------- ------------ -----------
BALANCE, September 30, 1999 301,100 $ 301 $ 26,054 $ (38,812)
----------- ----------- ------------ -----------
The accompanying notes are an integral part of this financial statement.
-4-
<PAGE>
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
STATEMENTS OF CASH FLOWS
From
For the Inception on
Year Ended October 24,
September 30, 1996 Through
------------------------- September 30,
1999 1998 1999
------------ ------------ -------------
Cash Flows from Operating Activities:
Net loss $ (6,440) $ (5,541) $ (38,812)
Adjustments to reconcile net loss
to net cash used by operating
activities:
Depreciation and amortization 186 62 310
Non-cash expense - - 330
Change in assets ad liabilities:
Decrease (increase) in inventory 103 1,118 (257)
Increase (decrease) in accounts
payable (4,501) 4,241 100
------------ ------------ -------------
Net Cash Flows (Used) by
Operating Activities (10,652) (120) (38,329)
------------ ------------ -------------
Cash Flows from Investing Activities:
Payments for organization costs - - (310)
------------ ------------ -------------
Net Cash (Used) by
Investing Activities - - (310)
------------ ------------ -------------
Cash Flows from Financing Activities:
Proceeds from shareholder loans 12,001 35 13,972
Proceeds from common stock issuance - - 32,000
Payment of stock offering costs - - (5,975)
------------ ------------ -------------
Net Cash Provided by
Financing Activities 12,001 35 39,997
------------ ------------ -------------
Net Increase (Decrease) in Cash (1,349) (85) 1,358
Cash at Beginning of Period 9 94 -
------------ ------------ -------------
Cash at End of Period $ 1,358 $ 9 $ 1,358
------------ ------------ -------------
Supplemental Disclosures of Cash Flow Information:
Cash paid during the year for:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
Supplemental Schedule of Noncash Investing and Financing Activities:
For the year ended September 30, 1999:
None.
For the year ended September 30, 1998:
None
The accompanying notes are an integral part of these financial statements.
-5-
<PAGE>
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization Almost Country Productions, Inc. (the Company) was organized
under the laws of the State of Nevada on October 24, 1996. The Company has
not yet generated significant revenues from its planned principal operations
and is considered a development stage company as defined in the Statement of
Financial Accounting Standards (SFAS) No. 7. The Company is planning to
engage in the business to produce and market country music on tapes and
compact discs (CD's) featuring Pamela Lindquist and her music group known as
Almost Country. The Company has, at the present time, not paid any dividends
and any dividends that may be paid in the future will depend upon the
financial requirements of the Company and other relevant factors.
Inventory - Inventory is carried at the lower of cost or market. Cost is
determined by the first-in, first-out method.
Organization Costs - The Company has amortized its organization costs, which
reflect amounts expended to organize the Company, in accordance with the
Statement of Position 98-5, "Reporting on the Costs of Start-up Activities."
Loss Per Share - The computation of loss per share is based on the weighted
average number of shares outstanding during the period presented, in
accordance with Statement of Accounting Financial Standard No. 128 "Earnings
Per Share".
Cash and Cash Equivalents - For purposes of the financial statements, the
Company considers all highly liquid debt investments purchased with a maturity
of three months or less to be cash equivalents.
Revenue Recognition The Company recognizes revenue when product is
delivered.
Accounting Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that effect the reported amounts of assets and
liabilities, the disclosures of contingent assets and liabilities at the date
of the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimated
by management.
Recently Enacted Accounting Standards Statement of Financial Accounting
Standards (SFAS) No. 132, "Employer's Disclosure about Pensions and Other
Postretirement Benefits", SFAS No. 133, "Accounting for Derivative Instruments
and Hedging Activities", SFAS No. 134, "Accounting for Mortgage-Backed
Securities " and SFAS No. 135, "Rescission of FASB Statement No. 75 and
Technical Corrections" were recently issued. SFAS No. 132, 133, 134 and 135
have no current applicability to the Company or their effect on the financial
statements would not have been significant.
-6-
<PAGE>
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - INVENTORY
Inventory at September 30, 1999 consists of the following:
Compact disc's $ 1,120
Cassette tapes 218
Allowance for excess quantities
of inventory (1,081)
___________
$ 257
___________
During the year ended September 30, 1999, the Company had few product sales.
However, the Company is pursuing new markets in the United States and possibly
in foreign markets. Management believes that while they have some excess
quantities of inventory, a portion of the inventory is still saleable.
Accordingly, the Company has established an allowance for excess quantities of
inventory to reduce the valuation of the inventory to its estimated market
value of $257.
NOTE 3 - CAPITAL STOCK
Common Stock - During June 1997, the Company issued 1,000 shares of common
stock for legal services rendered in association with its public stock
offering, valued at $300.
During June 1997, the Company issued 100 shares of common stock for operating
expenses valued at $30.
Public Offering - During March 1997, the Company issued 100,000 shares of
common stock for cash at $0.30 per share, net of $5,975 stock offering cost,
pursuant to a public offering believed to be exempt from registration with the
Securities and Exchange Commission under rule 504 of Regulation D as
promulgated under the Securities Act of 1933, as amended.
Organization - During October 1996, in connection with its organization, the
Company issued 200,000 shares of its previously authorized, but unissued
common stock. Total proceeds from the sale of stock amounted to $2,000 (or
$.01 per share).
NOTE 4 - INCOME TAXES
The Company accounts for income taxes in accordance with Statement of
Financial Accounting Standards No. 109 "Accounting for Income Taxes". SFAS
No. 109 requires the Company to provide a net deferred tax asset/liability
equal to the expected future tax benefit/expense of temporary reporting
differences between book and tax accounting methods and any available
operating loss or tax credit carryforwards. At September 30, 1999, the
Company has available unused operating loss carryforwards of approximately
$38,000, which may be applied against future taxable income and which expire
in various years through 2019.
-7-
<PAGE>
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - INCOME TAXES [Continued]
The amount of and ultimate realization of the benefits from the operating loss
carryforwards for income tax purposes is dependent, in part, upon the tax laws
in effect, the future earnings of the Company, and other future events, the
effects of which cannot be determined. Because of the uncertainty surrounding
the realization of the loss carryforwards the Company has established a
valuation allowance equal to the amount of the loss carryforwards and,
therefore, no deferred tax asset has been recognized for the loss
carryforwards. The net deferred tax asset is approximately $12,900 as of
September 30, 1999, with an offsetting valuation allowance at September 30,
1999 of the same amount. The increase in the valuation allowance for the year
ended September 30, 1999 was approximately $1,900.
NOTE 5 - RELATED PARTY TRANSACTIONS
Management Compensation - The Company has not paid any compensation to its
officers and directors.
Office Space - The Company has not had a need to rent office space. An
officer/shareholder of the Company is allowing the Company to use her home as
a mailing address, as needed, at no expense to the Company.
Financing - An officer of the Company has advanced a total of $13,972 to the
Company as of September 30, 1999. These advances are non-interest bearing,
and are due on demand.
NOTE 6 - GOING CONCERN
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles which contemplate continuation of the
Company as a going concern. However, the Company has incurred losses since
its inception, has current liabilities in excess of current assets and has not
yet been successful in establishing profitable operations. These factors
raise substantial doubt about the ability of the Company to continue as a
going concern. In this regard, management is proposing to raise any necessary
additional funds not provided by its planned operations through loans and/or
through additional sales of its common stock. There have been no significant
product sales during the year ended September 30, 1999; however, management is
still attempting to develop new markets in the United States, and is
contemplating marketing efforts in foreign markets. There is no assurance that
the Company will be successful in raising additional capital or in developing
new markets for its products in the U.S. or in foreign markets, or achieving
profitable operations. The financial statements do not include any
adjustments that might result from the outcome of these uncertainties.
-8-
<PAGE>
ALMOST COUNTRY PRODUCTIONS, INC.
[A Development Stage Company]
NOTES TO FINANCIAL STATEMENTS
NOTE 7 COMMITMENTS
During September 1996, the Company entered into a contract with Pamela
Lindquist (the Company's President) wherein the Company will provide up to
$25,000 in financing to develop and produce tapes and CD's for Almost Country,
Pamela Lindquist's music group. In return, Pamela has assigned a financial
interest that will provide a royalty of $2.00 on each tape and $2.50 on each
CD sold from the recordings produced, for a period of two years. On September
1, 1998, the company entered into an agreement with Pamela Lindquist that
extends the terms of the contract through September 30, 2000.
NOTE 8 LOSS PER SHARE
The following data show the amounts used in computing loss per share for the
periods presented:
From
For the Inception on
Year Ended October 24,
September 30, 1996 Through
------------------------- September 30,
1999 1998 1999
------------ ------------ -------------
Loss from continuing operations
available to common shareholders
(numerator) $ (6,440) $ (5,541) $ (38,812)
------------ ------------ -------------
Weighted average number of common
shares outstanding used in loss
per share for the period
(denominator) 301,100 301,100 286,092
------------ ------------ -------------
-9-
ITEM 8. Changes In and Disagreements With Accountants on Accounting and
Financial Disclosure
During the fiscal year, there have been no changes in or disagreements
with accountants.
Part III
ITEM 9. Directors, Executive Officers, Promoters and Control Persons;
Compliance With Section 16(a) of the Exchange Act
The following sets forth information related to the Company's sole
executive officer and director:
Name Position Age Directorship
----- -------- ---- ------------
Reed L. Benson President 53 Director since
December 20, 2000
Caroline Christensen Secretary/Treasurer 53
Mr. Benson has served as the President and sole director of the Company only
since December 20, 2000 and will continue to serve until his successors are
elected and dully qualified. He is a practicing attorney in the State of Utah
and since April 15, 2000 has been engaged in the private practice of law as a
sole practitioner and managing his own investments. From June 30, 1995 until
April 15, 2000, Mr. Benson was Vice President, Secretary and General Counsel
of Data Broadcasting Corporation, a publicly traded corporation.
Ms. Christensen has served as Secretary/Treasurer since December 20, 2000.
Since January, 2000 she has served as administrative assistant for the Lewis
Law Offices. From December, 1998 to December, 1999 Ms. Christensen was the
administrative assistant/ office manager for Alliance Commercial Real Estate.
Prior to December, 1998 she was the administrative assistant/office manager
for Hermes Development.
ITEM 10. Executive Compensation
The Company has not paid any compensation either as salary or benefits to
any officer or director since inception other than the Agreement between the
Company and Ms. Lindquist for the production of the music tape and CD. Ms.
Lindquist is no longer an officer or director of the Company. Mr. Benson has
received no salary for serving as president of the company.
ITEM 11. Security Ownership of Certain Beneficial Owners and Management
The following table sets forth information, to the best of the Company's
knowledge, as of September 30, 2000, with respect to each person known by the
Company to own beneficially more than 5% of the issued and outstanding common
stock, each officer, director and all directors and officers as a group.
Name and Address Amount and Nature of Percent
of Beneficial Owner Beneficial Ownership Of Class(1)
------------------------ --------------------- -----------
Pamela Lindquist 200,000 32
245 North Vine Street, No.105
Salt Lake City, Utah 84103
Marie Lindquist 100,000 16
780 North 150 West
Logan, Utah 84321
Richard Casper 200,000 32
5450 South Green Street
Murray, Utah 84123
Reed L. Benson (2) 0 0
8361 Ridge Point Rd.
Sandy, UT 84123
Caroline Christensen (3) 0 0
322 E. Clark St.
Murray, UT 84107
All Executive Officers & 0 0
Directors as a Group
(1) Based on 621,100 shares of common stock outstanding as of September 30,
2000.
(2) Mr. Benson is president and sole director of the Company.
(3) Ms. Christensen is secretary/treasurer of the Company.
All directors hold office until the next annual meeting of stockholders
and until their successors have been duly elected and qualified. There are no
agreements with respect to the election of directors. The Company does not
have any standing committees.
None of the officers or directors of the Company has during the past five
years, been involved in any events (such as petitions in bankruptcy, receiver-
ship or insolvency, criminal proceedings or proceedings relating to securities
violations).
Officer Remuneration
As of September 30, 2000, the Company had no employment contracts with
any officers or directors. No one was paid a salary and received compensation
in any form of $60,000 or more in any year since operations began.
Officer and Director Compensation
The Company's directors are not compensated for attending meetings of the
Board of Directors. In the future the directors may be compensated for their
services. No decision has been made as to the manner or type of future
compensation.
ITEM 12. Certain Relationships and Related Transactions
During year ended September 30, 1999, the Agreement between the Company
and Ms. Lindquist was extended until September 30, 2000 on which date the
agreement was terminated. Ms. Lindquist owns 200,000 shares of the Company's
common stock.
ITEM 13. Exhibits and Reports on Form 8-K
The Exhibits from the Company's Form 10-SB are incorporated herein by this
reference. There have been no reports on Form 8-K filed during the past year.
SIGNATURES
In accordance with the requirement of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
ALMOST COUNTRY PRODUCTIONS, INC.
Date: January 12, 2000 By /s/ Reed L. Benson
President, Chief Executive Officer
and Director
