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 December 31, 1999
[ ] 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. 0-26607
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:
1,521,750 shares of common stock.
<PAGE>
FORM 10-QSB
BECK & CO.
INDEX
Page
PART I. Financial Information
Financial Statements
Balance Sheets - December 31, 1999 and
June 30, 1999 3
Statements of Operations - Three Months
Ended December 31, 1999 and 1998 4
Statements of Operations - Six Months
Ended December 31, 1999 and 1998, and
Inception to December 31, 1999 5
Statements of Cash Flows - Three and Six
Months
Ended December 31, 1999 and 1998, 6
and Inception to December 31, 1999
Notes to Consolidated Financial 7
Statements
Management's Discussion and Analysis of
Financial Condition and Results of 8
Operations
PART II. Other Information 9
Signatures 8
PART I.
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.
2
<PAGE>
BECK & CO.
(A Development Stage Company)
Balance Sheets
ASSETS
December 31, June 30,
1999 1999
(Unaudited)
CURRENT ASSETS
Cash $ 5,647 $ 10,191
Inventory 4,465 2,277
Total Current Assets 10,112 12,468
FIXED ASSETS
Furniture and equipment - net 5,243 2,327
Total Fixed Assets 5,243 2,327
TOTAL ASSETS $ 15,355 $ 14,795
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable - related party $ 1,746 $1,746
Allowance for bad debt and returns 3,393 1,951
Note payable - related party 2,500 2,500
Accrued interest - related party 187 62
Accrued salaries/office 18,600 -
Total Current Liabilities 26,425 6,259
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value: 5,000,000 shares
authorized; -0- shares issued and outstanding - -
Common stock, $0.001 par value: 20,000,000 shares
authorized; 1,521,750 shares issued and outstanding 1,522 1,522
Additional paid-in capital 66,678 66,678
Deficit accumulated during the development stage (79,270) (59,664)
Total Stockholders' Equity (Deficit) (11,070) 8,536
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) $ 15,355 $ 14,795
The accompanying notes are an integral part of these financial statements
3
<PAGE>
BECK & CO.
(A Development Stage Company)
Statements of Operations
(Unaudited)
For the
Three Months Ended
December 31,
1999 1998
NET SALES $ 16,691 $ 5,227
COST OF SALES 12,187 3,708
GROSS PROFIT 4,504 1,519
EXPENSES
General and administrative 2,581 4,093
Bad debt and return expense 1,136 -
Depreciation expense 194 -
Officer's salary 9,000 9,000
Total Expenses 12,911 13,093
OTHER (EXPENSES)
Interest expense (62) -
Total Other (Expenses) (62) -
NET LOSS $ (8,469) $ (11,574)
BASIC (LOSS) PER SHARE $ (0.01) $ (0.01)
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 1,521,750 1,507,000
The accompanying notes are an integral part of these financial statements
4
<PAGE>
BECK & CO.
(A Development Stage Company)
Statements of Operations
(Unaudited)
From
Inception on
For the April 14,
Six Months Ended 1998 Through
December 31, December 31,
1999 1998 1999
NET SALES $ 23,269 $ 6,383 $ 61,743
COST OF SALES 16,923 4,502 49,471
GROSS PROFIT 6,346 1,881 12,272
EXPENSES
General and administrative 6,033 9,905 25,916
Bad debt and return expense 1,442 - 3,393
Depreciation expense 352 - 546
Officer's salary 18,000 18,000 61,500
Total Expenses 25,827 27,905 91,355
OTHER (EXPENSES)
Interest expense (125) - (187)
Total Other (Expenses) (125) - (187)
NET LOSS $ (19,606) $ (26,024) $ (79,270)
BASIC (LOSS) PER SHARE $ (0.01) $ (0.02)
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 1,521,75 1,507,000
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
BECK & CO.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
From
Inception on
For the April 14,
Six Months Ended 1998 Through
December 31, December 31,
1999 1998 1999
<S>
CASH FLOWS FROM OPERATING
ACTIVITIES
<C> <C> <C>
Net (loss) $ (19,606) $ (26,024) $ (79,270)
Adjustments to reconcile net loss to net cash
used by operating activities:
Common stock issued for services - 18,600 45,950
Increase allowance for bad debt and
returns 1,442 - 3,393
Depreciation expense 352 - 546
Increase in accounts payable and accrued
expenses 18,724 1,144 23,032
(Increase) in inventories (2,188) (508) (4,465)
Net Cash (Used) Provided by Operating
Activities (1,276) (6,788) (10,814)
CASH FLOWS FROM INVESTING
ACTIVITIES
Furniture and equipment (3,268) - (5,789)
Net Cash Used by Investing Activities (3,268) - (5,789)
CASH FLOWS FROM FINANCING
ACTIVITIES
Common stock issued for cash - - 22,250
Net Cash Provided by Financing
Activities - - 22,250
NET INCREASE (DECREASE) IN CASH (4,192) (6,788) 6,193
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 10,191 9,525 -
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 5,647 $ 2,737 $ 5,647
CASH PAID DURING THE YEAR FOR:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
BECK & CO.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 1999 and 1998 and June 30, 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 December 31, 1999 and 1998 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
December 31, 1999 and 1998 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.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Six-Month Periods Ended December 31, 1999 and 1998.
The Company had net sales of $23,269 and $6,383 in the six months
ended December 31, 1999 and 1998, respectively. Cost of Sales
was $16,923 during the six-month period ended December 31, 1999
and $4,502 for the six months ended December 31, 1998.
Operating expenses in the six months ended December 31, 1999 and
1998, consisted of general corporate administration, legal and
professional expenses, advertising, salaries, and accounting and
auditing costs. These expenses were $25,827 for the six months
ended December 31, 1999 and $27,905 for the six months ended
December 31, 1998.
As a result of the foregoing factors, the Company realized a net
loss of $19,606 for the six months ended December 31, 1999, and a
net loss of $26,024 for the six months ended December 31, 1998.
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 December 31, 1999, the Company had a working capital deficit
of $16,313 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 are approximately $1,000 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.
8
<PAGE>
PART II. OTHER INFORMATION
EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS: Included only with the electronic filing of this
report is the Financial Data Schedule for the six-month period
ended December 31, 1999 (Exhibit Ref. No. 27).
REPORTS ON FORM 8-K: None
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.
Date: February 10, 2000 By: /s/ Larry L. Beck, President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 10,191
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 2,277
<CURRENT-ASSETS> 12,468
<PP&E> 2,327
<DEPRECIATION> 0
<TOTAL-ASSETS> 14,795
<CURRENT-LIABILITIES> 6,259
<BONDS> 0
0
0
<COMMON> 1,522
<OTHER-SE> 66,678
<TOTAL-LIABILITY-AND-EQUITY> 14,795
<SALES> 23,269
<TOTAL-REVENUES> 23,269
<CGS> 16,923
<TOTAL-COSTS> 25,827
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 125
<INCOME-PRETAX> (19,606)
<INCOME-TAX> 0
<INCOME-CONTINUING> (19,606)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (19,606)
<EPS-BASIC> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
