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.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______.
Commission File No. 000-26607
BECK & CO.
-------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Nevada 88-0390828
--------------------------------- ---------------------
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
1273 West Glengyle Court, Murray, UT 84123
--------------------------------------------
(Address of principal executive offices)
(801) 270-5867
-----------------------------
(Issuer's telephone number)
Not Applicable
----------------------------------------------------------------------
(Former name, address and fiscal year, if changed since last report)
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 preceding 12 months (or
for such shorter period that the issuer was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes [ X ] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Check whether the registrant has filed all documents and reports required
to be filed by Sections 12, 13, or 15(d) of the Exchange Act subsequent to
the distribution of securities under a plan confirmed by a court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: As of April 15, 2000,
15,217,500 shares of common stock where issued and outstanding.
<PAGE>
FORM 10-QSB
BECK & CO.
TABLE OF CONTENTS
PART I
ITEM 1. FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . 3
Financial Statements
Independent Accountants' Review Report . . . . . . . . . . . . . 5
Balance Sheets - March 31, 2000 (Unaudited) and
June 30, 1999 (Audited) . . . . . . . . . . . . . . . . . . . . 6
Statements of Operations - Three Months Ended
March 31, 2000 and 1999 . . . . . . . . . . . . . . . . . . . . 7
Statements of Operations - Nine Months Ended March 31, 2000
and 1999, and Inception through March 31, 2000. . . . . . . . . 8
Statement of Stockholders' Equity - From Inception through
March 31, 2000. . . . . . . . . . . . . . . . . . . . . . . . . 9
Statements of Cash Flows - Nine Months Ended March 31, 2000
and 1999, and Inception through March 31, 2000. . . . . . . . .10
Notes to the Financial Statements - March 31, 2000 and 1999 . .11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . .12
PART II
ITEM 5. OTHER INFORMATION . . . . . . . .. . . . . . . . . . . . . . .14
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K . . . . . . . . . . . . . . .14
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . .15
2
<PAGE>
PART I
- ---------------------------------------------------------------------------
Item 1. FINANCIAL INFORMATION
- ---------------------------------------------------------------------------
In the opinion of management, the accompanying unaudited financial
statements included in this Form 10-QSB reflect all adjustments (consisting
only of normal recurring accruals) necessary for a fair presentation of the
results of operations for the periods presented. The results of operations
for the periods presented are not necessarily indicative of the results to
be expected for the full year.
[THIS SPACE WAS INTENTIONALLY LEFT BLANK]
3
<PAGE>
BECK & CO.
(A Development Stage Company)
FINANCIAL STATEMENTS
March 31, 2000 and 1999
[THIS SPACE WAS INTENTIONALLY LEFT BLANK]
4
<PAGE>
INDEPENDENT ACCOUNTANTS' REVIEW REPORT
To the Board of Directors
Beck & Co.
Salt Lake City, Utah
We have reviewed the accompanying balance sheet of Beck & Co. as of March 31,
2000 and the related statements of operations stockholders' equity (deficit)
and cash flows for the periods ended March 31, 2000 and 1999. These financial
statements are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures
to financial data, and making inquiries of persons responsibility for
financial and accounting matters. It is substantially less in scope than an
audit conducted in accordance with generally accepted auditing standards,
which will be performed for the full year with the objective of expressing an
opinion regarding the financial statements taken as a whole. Accordingly, we
do not express such an opinion.
Based on our reviews, we are not aware of any material modifications that
should be made to the accompanying condensed financial statements referred to
above for them to be in conformity with accounting principles generally
accepted in the United States.
We have previously audited, in accordance with auditing standards generally
accepted in the United States, the balance sheet of Beck & Co. as of June 30,
1999 and the related statements of operations, stockholders' equity, and cash
flows for the year then ended (not presented herein) and in our report dated
November 22, 1999, we expressed an unqualified opinion on those consolidated
financial statements.
HJ & Associates, LLC
Salt Lake City, Utah
May 9, 2000
5
<PAGE>
BECK & CO.
(A Development Stage Company)
Balance Sheets
March 31, June 30,
2000 1999
(Unaudited) (Audited)
----------- -----------
ASSETS
CURRENT ASSETS
Cash $ 3,422 $ 10,191
Inventory 5,651 2,277
----------- -----------
Total Current Assets 9,073 12,468
----------- -----------
FIXED ASSETS
Furniture and equipment - net 11,316 2,327
----------- -----------
Total Fixed Assets 11,316 2,327
----------- -----------
TOTAL ASSETS $ 20,389 $ 14,795
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable - related party $ - $ 1,746
Allowance for bad debt and returns 4,592 1,951
Note payable - related party 10,746 -
Note payable - other 2,500 2,500
Accrued interest - related party 90 -
Accrued interest - other 250 62
Accrued salaries/office 27,900 -
----------- -----------
Total Current Liabilities $ 46,078 $ 6,259
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value:
5,000,000 shares authorized; -0-
and -0- shares issued and
outstanding, respectively - -
Common stock, $0.001 par value:
200,000,000 and 20,000,000 shares
authorized March 31, 2000 and
June 30, 1998 respectively;
15,217,500 and 1,521,750 shares
issued and outstanding 15,218 1,522
Additional paid-in capital 52,982 66,678
Deficit accumulated during the
development stage (93,889) (59,664)
----------- -----------
Total Stockholders' Equity (Deficit) $ (25,689) $ 8,536
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 20,389 $ 14,795
=========== ===========
6
<PAGE>
BECK & CO.
(A Development Stage Company)
Statements of Operations
(Unaudited)
For the
Three Months Ended
March 31,
2000 1999
---------- ----------
NET SALES $ 23,988 $ 185
COST OF SALES 20,028 124
---------- ----------
GROSS PROFIT 3,960 61
EXPENSES
General and administrative 8,610 1,519
Bad debt and return expense 1,200 -
Depreciation expense 435 -
Officer's salary 9,000 9,000
---------- ----------
Total Expenses 19,245 10,519
OTHER EXPENSES
Interest expense 152 -
Total Other Expenses 152 -
---------- ----------
TOTAL EXPENSES $ (19,397) $ (10,519)
---------- ----------
NET LOSS $ (15,437) $ (10,458)
========== ==========
BASIC (LOSS) PER SHARE$ $ (0.00) $ (0.00)
========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 15,217,500 1,507,000
7
<PAGE>
BECK & CO.
(A Development Stage Company)
Statements of Operations
(Unaudited)
From
Inception on
For the April 14,
Nine Months Ended 1998 Through
March 31, March 31,
2000 1999 2000
---------- ---------- ------------
NET SALES $ 48,075 $ 6,568 $ 86,549
COST OF SALES 36,952 4,626 69,500
---------- ---------- ------------
GROSS PROFIT 11,123 1,942 17,049
EXPENSES
General and administrative 14,643 11,424 25,916
Bad debt and return expense 2,642 - 4,592
Depreciation expense 787 - 981
Officer's salary 27,000 27,000 70,500
---------- ---------- ------------
Total Expenses 45,072 38,424 110,599
OTHER EXPENSES
Interest expense 277 - 339
Total Other Expenses 277 - 339
---------- ---------- ------------
TOTAL EXPENSES $ (45,349) $ (38,424) $ (110,938)
---------- ---------- ------------
NET LOSS $ (34,225) $ (36,482) $ (93,889)
========== ========== ============
BASIC (LOSS) PER SHARE $ (0.01) $ (0.02)
========== ==========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 15,217,500 1,507,000
8
<PAGE>
<TABLE>
BECK & CO.
(A Development Stage Company)
Statements of Stockholders' Equity
From Inception on April 14, 1998 Through March 31, 2000
<CAPTION>
Deficit
Accumulated
Additional During the
Common Stock Paid-In Subscription Development
Shares Amount Capital Receivable Stage
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Balance at inception on
April 14, 1998 - $ - $ - $ - $ -
Issuance of common stock
for services at $0.045
per share 1,000,000 1,000 44,950 (37,200) -
Issuance of common stock
for cash at $0.001
per share 500,000 500 - - -
Issuance of common stock
for cash at $1.00
per share 7,000 7 6,993 - -
Net loss from inception on
April 14, 1998 through
June 30, 1998 - - - - (8,332)
------------ ------------ ------------ ------------ ------------
Balance, June 30, 1998 1,507,000 1,507 51,943 (37,200) (8,332)
Issuance of common stock
for cash at $1.00
per share 14,750 15 14,735 - -
Receipt of stock subscription - - 37,200 - -
Net loss for the year ended
June 30, 1999 - - - - (51,332)
------------ ------------ ------------ ------------ ------------
Balance, June 30, 1999 1,521,750 1,522 66,678 - (59,664)
10-for-one forward
stock split
March 31, 2000 15,065,325 13,696 13,696 - -
Net loss for the nine
months ended March 31, 2000
(unaudited) - - - - (34,225)
------------ ------------ ------------ ------------ ------------
Balance, March 31, 2000
(unaudited) 15,217,500 $ 15,218 $ 52,982 $ - $ (93,889)
============ ============ ============ ============ ============
</TABLE>
9
<PAGE>
BECK & CO.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
From
Inception on
For the April 14,
Nine Months Ended 1998 Through
March 31, March 31,
2000 1999 2000
---------- ---------- ------------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net (loss) $ (34,225) $ (36,482) $ (93,889)
Adjustments to reconcile net
loss to net cash used by
operating activities:
Common stock issued for services - 27,900 45,950
Increase allowance for bad debt
and returns 2,641 - 4,592
Depreciation expense 787 - 981
Increase in accounts payable
and accrued expenses 37,177 2,758 41,486
(Increase) in inventories (3,374) (525) (5,651)
Net Cash (Used) Provided by
Operating Activities 3,006 (6,349) (6,531)
CASH FLOWS FROM INVESTING
ACTIVITIES
Furniture and equipment (9,775) (1,152) (12,297)
Net Cash Used by Investing
Activities (9,775) (1,152) (12,297)
CASH FLOWS FROM FINANCING
ACTIVITIES
Common stock issued for cash - 14,750 22,250
Net Cash Provided by Financing
Activities - 14,750 22,250
NET INCREASE (DECREASE) IN CASH (6,769) 7,249 3,422
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 10,191 9,525 -
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 3,422 $ 16,774 $ 3,422
CASH PAID DURING THE YEAR FOR:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
10
<PAGE>
BECK & CO.
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2000 and 1999
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 operations 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
statements and notes thereto included in the Company's June 30, 1999 audited
financial statements. The results of operations for periods ended March 31,
2000 and 1999 are not necessarily indicative of the operating results for the
full years.
NOTE 2 - GOING CONCERN
The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. However, the Company does not have significant cash or other
material assets, nor does it have an established source of revenues sufficient
to cover its operating costs and to allow it to continue as a going concern.
The Company's President has, therefore, committed to meeting its minimal
operating expenses for a period of at least 12 months.
NOTE 3 - ACCOUNTS PAYABLE / NOTES PAYABLE
As of June 30, 1999 the Company owed $1,746 to the Company's President for
costs and expenses paid by the Company's President on behalf of the Company.
On March 1, 2000 the Company's President loaned an additional $9,000 to the
Company. On March 1, 2000 The Company and its President mutually agreed to
combine the $1,746 account payable and the $9,000 note payable into a single
note payable to the Company's President in the amount of $10,746 due March 31,
2001 and bearing interest at 10% per annum.
In addition, the Company owed $2,500 plus accrued interest to an unrelated
party under a $2,500 note payable due March 31, 2000 and bearing interest at
10% per annum.
11
<PAGE>
- -----------------------------------------------------------------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
- -----------------------------------------------------------------------------
Results of Operations
- - --------------------
Three-Month Periods Ended March 31, 2000 and 1999
The Company had net sales of $23,988 and $185 for the three months ended
March 31, 2000 and 1999, respectively. Cost of sales was $20,028 during the
three month period ended March 31, 2000 and $124 for the three months ended
March 31, 1999. The increase in sales was the result of an increase in sales
efforts through advertising, word-of-mouth and the launch of the Company's
Internet web site wwww.e-tailjewelry.com. Cost of sales increased due to an
increase in products sold.
Operating expenses in the three month periods ended March 31, 2000 and
1999, consisted of general corporate administration, legal and professional
expenses, advertising, salaries, depreciation, bad debt & return expenses and
accounting and auditing costs. These expenses were $19,245 for the three
months ended March 31, 2000 and $10,519 for the three months ended March 31,
1999. The increase in operating expenses was primarily from an increase in
accrued bad debt and return expenses and legal and accounting expenses in
connection with the Company's registration statement on Form 10-SB with the
Securities and Exchange Commission.
Other expenses in the three months ended March 31, 2000 and 1999,
consisted of interest on notes payable. Interest expense was $152 for the
three months ended March 31, 2000 and $0 for the three months ended March 31,
1999. The increase in interest expense was due to interest on two notes
payable: a) a $2,500 note payable to a third party due March 31, 2000 and
bearing interest at 10% per annum, and b) a $10,746 note payable to the
Company's President due March 31, 2001 and bearing interest at 10% per annum.
As a result of the foregoing factors, the Company realized a net loss of
$15,437 for the three months ended March 31, 2000, and a net loss of $10,458
for the three months ended March 31, 1999. Management expects losses will
continue unless and until the Company's Internet site generates sufficient
additional sales to offset operating expenses.
Nine-Month Periods Ended March 31, 2000 and 1999 and from Inception on April
14, 1998 to March 31, 2000
The Company had net sales of $48,075, $6,568 and $86,549 for the nine
months ended March 31, 2000 and 1999 and from Inception on April 14, 1998 to
March 31, 2000, respectively. Cost of sales was $36,952, $4,626 and $65,900
for the nine months ended March 31, 2000 and 1999 and from Inception on April
14, 1998 to March 31, 2000, respectively. The increase in sales was the
result of an increase in sales efforts through advertising, word-of-mouth and
the launch of the Company's Internet web site wwww.e-tailjewelry.com. Cost of
Sales increased due to an increase in products sold.
12
<PAGE>
Operating expenses in the nine months ended March 31, 2000 and 1999, and
from Inception on April 14, 1998 to March 31, 2000 consisted of general
corporate administration, legal and professional expenses, advertising,
salaries, depreciation, bad debt & return expenses and accounting and auditing
costs. These expenses were $45,072, $38,424 and $110,599 for the nine months
ended March 31, 2000 and 1999, and from Inception on April 14, 1998 to March
31, 2000 respectively. The increase in operating expenses was primarily from
an increase in accrued bad debt and return expenses and legal and accounting
expenses in connection with the Company's registration statement on Form 10-SB
with the Securities and Exchange Commission.
Other expenses in the nine months ended March 31, 2000 and 1999,
consisted of interest on notes payable. Interest expense was $277 for the
nine months ended March 31, 2000 and $0 for the nine months ended March 31,
1999. The increase in interest expense was due to interest on two notes
payable: a) a $2,500 note payable to a third party due March 31, 2000 and
bearing interest at 10% per annum, and b) a $10,746 note payable to the
Company's President due March 31, 2001 and bearing interest at 10% per annum.
As a result of the foregoing factors, the Company realized a net loss of
$34,225, $36,482 and $93,889 for the nine months ended March 31, 2000 and
1999, and from Inception on April 14, 1998 to March 31, 2000 respectively.
Management expects losses will continue unless and until the Company's
Internet site generates sufficient additional sales to offset operating
expenses.
Liquidity and Capital Resources
- - ------------------------------
At March 31, 2000, the Company had a working capital deficit of $37,009
as compared to working capital of $6,209 at June 30, 1999. The working
capital deficit resulted primarily from accrued salaries payable to the
Company's president, Larry Beck, which he has elected to defer until such time
as the Company has sufficient cash flow from operations to pay the salaries
and cover other expenses of operation. The Company intends to apply its
available capital to paying administrative costs and marketing the Company's
jewelry products through its website. Since the president of the Company has
agreed to defer payment of his salary until such time as cash flow can cover
the salary and operating expenses, the Company estimates that its available
capital funds generated from product sales will cover the Company's operating
expenses for the remainder of the fiscal year ending June 30, 2000, after
which the Company intends to rely on revenue generated from sale of its
jewelry products to fund operations, including the Company's plan to establish
retail locations in rural communities. It is estimated, that the minimum
operating expenses (not including officer's salary) are approximately $3,000
per month, which include the cost of an Internet service provider, web
development, telephone, fax, postage, printing, packaging, legal and minimal
marketing. If the Company is unable to generate sufficient revenue to support
and expand its operations, it may need to seek debt or equity financing. The
Company has not identified any potential sources of debt or equity financing
and can not predict whether any such financing will be available to the
Company should it be needed on terms acceptable to the Company. In addition,
the Company's President and majority shareholder, Larry Beck, has expressed a
desire to utilize personal resources to fund operations. However, there is no
contractual obligation to do so.
13
<PAGE>
PART II
- -----------------------------------------------------------------------------
ITEM 5. OTHER INFORMATION
- -----------------------------------------------------------------------------
As of June 30, 1999, the Company owed $1,746 to the Company's President,
Larry Beck, for costs and expenses paid by the Company's President on behalf
of the Company. On March 1, 2000, the Company's President loaned an
additional $9,000 to the Company. On March 1, 2000, the Company and its
President mutually agreed to combine the $1,746 account payable and the $9,000
note payable into a single note payable to the Company's President in the
amount of $10,746 due March 31, 2001 and bearing interest at 10% per annum.
On March 29, 2000, the Company's board of directors approved: 1) a
10-for-one forward stock split on the Company's authorized common stock,
$0.001 par value; and 2) a 10-for-one forward stock split on the Company's
issued and outstanding common stock, $0.001 par value, with any fractional
shares rounded up to the nearest whole number ("forward stock split"). The
forward stock split became March 31, 2000, the date that the Certificate of
Change in number of Authorized Shares of Class and Series of the Company was
filed with the Secretary of State, State of Nevada. As a result of the
forward stock split, instead of the Company having 20,000,000 shares of common
stock authorized and 1,521,750 shares of common stock issued and outstanding,
it now has 200,000,000 shares of common stock authorized and 15,217,500 shares
of common stock issued and outstanding. Each share of common stock held of
record as of the Record Date, March 31, 2000, shall be increased to ten shares
of the same class. More information about the forward stock split was filed
on Form 8-K which was filed with the Securities and Exchange Commission on
April 7, 2000.
- -----------------------------------------------------------------------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------------------------------------------
(a) Exhibits. Exhibits required to be attached by Item 601 of Regulation
S-B are listed below:
SEC Ref Page
No. No. Description
- ------- ---- -----------
3(i) * Certificate of Change in number of Authorized Shares of
Class and Series, filed with the Nevada Secretary of State
on March 31, 2000.
10 16 Promissory Note dated March 1, 2000 executed by the
Company.
27 ** Financial Data Schedule for the nine month period ended
March 31, 2000.
* The listed exhibits are incorporated herein by this reference to the
Current Report on Form 8-K, filed by the Company with the Securities and
Exchange Commission on April 7, 2000.
14
<PAGE>
** The Financial Data Schedule for the nine month period ended March 31,
2000 is presented only in the electronic filing of this report with the
Securities and Exchange Commission.
(b) Reports on Form 8-K. No reports on Form 8-K were filed during the
period covered by this report.
- -----------------------------------------------------------------------------
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.
BECK & CO.
/s/ Larry L. Beck
Date: May 18, 2000 ---------------------------------
By: Larry L. Beck, President
15
<PAGE>
Exhibit No. 10
Promissory Note
$10,746.00 Date: March 1, 2000
PROMISSORY NOTE
WHEREAS, As of March 1, 2000 Beck & Co. owed Larry Beck $1,746 for
purchases made by Larry Beck on behalf of Beck & Co. Such amounts have been
recorded in the financial statements of Beck & Co. as an Account Payable to
Larry Beck for over one year and therefore Beck & Co. and Larry Beck have
mutually agreed to convert these amounts owed to him into an interest bearing
Note Payable as further described herein; and
WHEREAS, On March 1, 2000, Larry Beck loaned an additional $9,000 to Beck
& Co.
NOW THEREFORE, FOR VALUE RECEIVED, The undersigned, jointly and severally
("Maker"), promises to pay to Larry Beck ("Holder"), a Utah resident, the
principal sum of ten thousand seven hundred and forty-six dollars
($10,746.00), together with interest thereon from April 1, 2000 at the rate of
ten percent (10%) per annum on the unpaid principal.
1. Payments. The principal amount of $10,746.00 and interest of $1,746.00
on the principal obligation represented hereby shall be repaid in full
at Maturity on March 31, 2001.
2. Type and Place of Payments. Payments of principal and interest shall be
made in lawful money of the United States of America to the above-named
Holder at 1273 West Glengyle Court Murray, UT 84123.
3. Penalty. Maker shall pay a penalty equal to one percent (1%) of the
current unpaid principal balance due for each month any payment is past
due. Advance payment or payments may be made on the principal or
interest, without penalty or forfeiture. There shall be no penalty for
any prepayment.
4. Default. Upon the occurrence or during the continuance of any one or
more of the events listed below, Holder may, by notice in writing to the
Maker, declare the unpaid balance of the principal and interest on the
Note to be immediately due and payable, and the principal and interest
shall then be immediately due and payable without presentation, demand,
protest, notice of protest, or other notice of dishonor, all of which
are hereby expressly waived by Maker, such events being as follows:
(a) Default in any portion of the payment of the principal and
interest of this Note when the same shall become due and payable,
unless cured within five (5) days after notice thereof by Holder
or the holder of such Note to Maker.
(b) Maker shall file a voluntary petition in bankruptcy or a voluntary
petition seeking reorganization, or shall file an answer admitting
the jurisdiction of the court and any material allegations of an
involuntary petition filed pursuant to bankruptcy or any form of
insolvency, or Maker shall make an assignment to an agent
authorized to liquidate any part of its assets; or
(c) Death of Maker. In the event of Death of Maker, such notice of
default shall be made to the trustee of Maker's estate.
5. Attorneys' Fees. Maker shall be responsible to Holder for any costs
incurred by Holder in collecting on the obligation herein including
reasonable attorney's fees.
6. Construction. This Note shall be governed by and construed in
accordance with the laws of Utah.
BECK & CO ("MAKER") APPROVED BY ("HOLDER"):
/s/ Larry Beck /s/ Larry Beck
- ---------------------------------- ----------------------------------
Larry Beck, President Larry Beck
16
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001061688
<NAME> BECK & CO.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 3,422
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 5,651
<CURRENT-ASSETS> 9,073
<PP&E> 11,316
<DEPRECIATION> 0
<TOTAL-ASSETS> 20,389
<CURRENT-LIABILITIES> 46,078
<BONDS> 0
0
0
<COMMON> 15,218
<OTHER-SE> 52,982
<TOTAL-LIABILITY-AND-EQUITY> 20,389
<SALES> 48,075
<TOTAL-REVENUES> 36,952
<CGS> 16,923
<TOTAL-COSTS> 45,072
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 277
<INCOME-PRETAX> (34,225)
<INCOME-TAX> 0
<INCOME-CONTINUING> (34,225)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (34,225)
<EPS-BASIC> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
