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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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
[ ] Transition Report pursuant to 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period to
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Commission File Number 0-29213
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GREEN FUSION CORPORATION
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(Exact name of small Business Issuer as specified in its charter)
Nevada 52-2202416
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
6320 South Sandhill Road, Suite 10
Las Vegas, Nevada 89120
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: 702-521-5600
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None
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(Former name, former address and former fiscal year, if
changed since last report)
Check whether the issuer (1) 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 issuer
was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days [ ] Yes [X] No
State the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
2,565,000 Shares of $.001 par value Common Stock outstanding as of
November 6, 2000.
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PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-QSB and Item 310 (b) of
Regulation S-B, and, therefore, do not include all information and
footnotes necessary for a complete presentation of financial
position, results of operations, cash flows, and stockholders' equity
in conformity with generally accepted accounting principles. In the
opinion of management, all adjustments considered necessary for a
fair presentation of the results of operations and financial position
have been included and all such adjustments are of a normal recurring
nature. Operating results for the nine months ended September 30,
2000 are not necessarily indicative of the results that can be
expected for the year ending December 31, 2000.
2
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GREEN FUSION CORPORATION
FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
3
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INDEX TO FINANCIAL STATEMENTS
Page
----
Accountants' Review Report . . . . . . . . . . . . . . 1
Financial Statement:
Balance Sheet . . . . . . . . . . . . . . . . . . . . 2
Statement of Operations
and Accumulated Deficit . . . . . . . . . . . . . . 3
Statement of Changes in Stockholders' Equity . . . . 4
Statement of Cash Flows . . . . . . . . . . . . . . 5
Notes to Financial Statements . . . . . . . . . . . . 6-8
Supplemental Statement:
Statement of Operating Expenses . . . . . . . . . .. 10
4
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ACCOUNTANTS' REVIEW REPORT
To the Board of Directors
Green Fusion Corporation
We have reviewed the accompanying balance sheet of Green Fusion
Corporation, ("GFC"), a development stage company, as of
September 30, 2000 and 1999 and the related statements of
operations and accumulated deficit, changes in stockholders'
equity, and statement of cash flows for the periods then ended,
in accordance with standards established by the American
Institute of Certified Public Accountants. All information
included in these financial statements is the representation of
the management of Green Fusion Corporation.
A review consists principally of inquiries of Company personnel
and analytical procedures applied to financial data. It is
substantially less in scope than an examination 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, we do not express such
an opinion.
Based on our review, we are 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.
Our review was made for the purpose of expressing limited
assurance that there are no material modifications that should be
made to the financial statements in order for them to be in
conformity with generally accepted accounting principles. The
supplemental statement of operating expenses is presented for the
purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected
to the inquiry and analytical procedures applied in the review of
the basic financial statements, and we are not aware of any
material modifications that should be made thereto.
Sarna & Company
Westlake Village, California
November 1, 2000
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GREEN FUSION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
ASSETS
SEPTEMBER 30
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2000 1999
---- ----
Current Assets
Cash $ 5,552 $ 32,793
Prepaid Acquisition Costs 1,800 1,800
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Total Current Assets 7,352 34,593
Mineral Rights and Development Costs 44,676 38,477
Other Asset - Capitalized Start-Up Costs 15,248 15,248
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TOTAL ASSETS $ 67,276 $ 88,318
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable and Accrued Expenses $ 14,359 $ 2,160
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Total Current Liabilities 14,359 2,160
Stockholders' Equity
Common Stock, $0.001 par value
100,000,000 shares authorized,
2,565,000 shares issued $ 2,565 $ 2,565
Additional Paid in Capital 89,485 89,485
Accumulated deficit <39,133> <5,892>
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Total Stockholders' Equity $ 52,917 86,158
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 67,276 $ 88,318
========== ==========
See Notes to Financial Statements
6
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GREEN FUSION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
FOR THE NINE MONTHS ENDED
SEPTEMBER 30
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2000 1999
---- ----
Revenues $ 0 $ 0
Operating Expenses <31,313> <3,966>
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Loss Before Provision for $ <31,313> $ <3,966>
Income Taxes
Provision for Income Taxes <0> <0>
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Net Loss $ <31,313> $ <3,966>
Deficit, Inception
of Period <7,820> <1,926>
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Accumulated Deficit, End of Period $ <39,133> $ <5,892>
========== ==========
Net Loss per Share $ <0.01> $ <0.00>
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Weighted Average Shares Outstanding 2,565,000 2,565,000
========== ==========
See Notes to Financial Statements
7
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GREEN FUSION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
Common Stock Additional Accumulated Total
Dollar Paid in Deficit Stockholders'
Shares Amount Capital Equity
------ ------ ------- ------- ------
Balances 2,565,000 $ 2,565 $ 89,485 $ <7,820> $ 84,230
December 31, 1999
Net Loss
Period Ended
September 30, 2000 ---- ---- ---- <31,313> <31,313>
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Balances
September 30, 2000 2,565,000 $ 2,565 $ 89,485 $<39,133> $ 52,917
========================================================
See Notes to Financial Statements
8
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GREEN FUSION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED
SEPTEMBER 30
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Cash Flows from Operating Activities: 2000 1999
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Net Loss $<31,313> $ <3,966>
Adjustments to Reconcile Net Income to
Increase <Decrease> in:
Accounts Payable and
Accrued Expenses 12,199 <3,874>
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Net Cash Used by Operating Activities <19,114> <7,840>
Cash Flows from Investing Activities:
Development Costs <4,199> 0
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Net Cash Used by Investing Activities <4,199> 0
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Net Decrease in Cash <23,313> <7,840>
Cash at Beginning of Period 28,865 40,633
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Cash at End of Period $ 5,552 $ 32,793
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See Notes to Financial Statements
9
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GREEN FUSION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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General
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Green Fusion Corporation ("GFC") was incorporated on March 5,
1998 in the state of Nevada. The Company acquires and develops
certain mineral rights in Canada.
Basis of Presentation
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The Company reports revenue and expenses using the accrual method
of accounting for financial and tax reporting purposes.
Use of Estimates
----------------
Management uses estimates and assumptions in preparing these
financial statements in accordance with generally accepted
accounting principles. Those estimates and assumptions affect
the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities, and the reported revenues and
expenses.
Development Stage Company
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GFC meets the guidelines of SFAS No. 7 and as such is classified
as a development stage company.
Pro Forma Compensation Expense
------------------------------
GFC accounts for costs of stock-based compensation in accordance
with APB No. 25, "Accounting for Stock Based Compensation"
instead of the fair value based method in SFAS No. 123. No stock
options have been issued by GFC. Accordingly, no pro forma
compensation expense is reported in these financial statements.
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GREEN FUSION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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Mineral Rights
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Mineral rights and related development costs are stated at
historical cost.
Depreciation, Amortization and Capitalization
---------------------------------------------
The Company records depreciation and amortization when
appropriate using both straight-line and declining balance
methods over the estimated useful life of the assets (five to
seven years). Expenditures for maintenance and repairs are charged
to expense as incurred. Additions, major renewals and replacements
that increase the property's useful life are capitalized. Property
sold or retired, together with the related accumulated
depreciation, is removed from the appropriate accounts and the
resultant gain or loss is included in net income.
Income Taxes
------------
The Company accounts for its income taxes in accordance with
Statement of Financial Accounting Standards No. 109, "Accounting
for Income Taxes". Under Statement 109, a liability method is
used whereby deferred tax assets and liabilities are determined
based on temporary differences between basis used for financial
reporting and income tax reporting purposes. Income taxes are
provided based on tax rates in effect at the time such temporary
differences are expected to reverse. A valuation allowance is
provided for certain deferred tax assets if it is more likely
than not, that the Company will not realize the tax assets
through future operations.
Fair Value of Financial Instruments
-----------------------------------
Financial accounting Standards Statement No. 107, "Disclosures
About Fair Value of Financial Instruments", requires the Company
to disclose, when reasonably attainable, the fair market values
of its assets and liabilities which are deemed to be financial
instruments. The Company's financial instruments consist
primarily of cash and certain investments.
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GREEN FUSION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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Per Share Information
---------------------
The Company computes per share information by dividing the net
loss for the period presented by the weighted average number of
shares outstanding during such period.
NOTE 2 - PROVISION FOR INCOME TAXES
-----------------------------------
The provision for income taxes for the period ended September 30,
2000 and 1999 represents the minimum state income tax expense of
the Company, which is not considered significant.
NOTE 3 - COMMITMENTS AND CONTINGENCIES
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Operating Leases
----------------
The Company currently rents administrative office space under a
monthly renewable contract.
Litigation
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The Company is not presently involved in any litigation.
NOTE 4 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
--------------------------------------------------
Recently issued accounting pronouncements will have no significant
impact on the Company and its reporting methods.
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SUPPLEMENTAL STATEMENT
13
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GREEN FUSION CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATING EXPENSES
FOR THE NINE MONTHS ENDED
SEPTEMBER 30
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Operating Expenses 2000 1999
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Bank Charges $ 10 $ 0
Professional Fees 31,303 3,920
Supplies 0 46
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Total Operating Expenses $ 31,313 $ 3,966
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See Notes to Financial Statements
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Item 2. Management's Discussion and Analysis or Plan of Operations
Business
The Company is an exploration stage company engaged in the
acquisition and exploration of mineral properties. The Company
has an interest in the properties described below that are
located in Canada. The Company has completed an initial
exploration program on its properties and intends to carry out
additional exploration work in order to ascertain whether these
properties possess commercially viable quantities of uranium ore.
There can be no assurance that a commercially exploitable
mineral deposit, or reserve, exists on the Company's properties
until appropriate exploratory work is done and an economic
evaluation based on such work concludes economic feasibility.
Green Fusion Properties
The Company is the owner of three mineral claims in the Smith Bay
region of the Province of Saskatchewan. The mineral claims are
contiguous and are referred to as the "Green Fusion Properties".
1. Properties Acquired by Staking
The Company is the owner of a 100% interest of two mineral claims
encompassing 12,330 acres in the vicinity of the Le Drew Lake
Property in the Smith Bay region of the Province of Saskatchewan,
Canada. These mineral claims are registered with the Province of
Saskatchewan as mineral claims Nos. S106084 and S106085. The
Company acquired its interest in each of the claims by staking.
Mineral claim no. S106084 covers 4,349 acres and mineral claim
no. S106085 covers 7,981 acres.
2. Property Acquired by Option
The Company has acquired a 100% interest in mineral claim No.
S105984 (the "Option Property") covering 1,235 acres situated in
the Province of Saskatchewan, Canada. The Company acquired the
Option Property pursuant to an option agreement made as of April
6, 1998 (the "Option Agreement") between the Company and Michael
Lederhouse, of P.O. Box 202, La Ronge, Saskatchewan, and Carl
Service of 34 Moxon Crescent, Saskatoon, Saskatchewan (the
"Optionors").
The Company exercised the Option by:
1. paying the Optionors the sum of $6,000 CDN on execution of
the Option Agreement
2. paying the Optionors the sum of $6,000 CDN effective April
6, 1999;
3. paying the Optionors the sum of $6,000 CDN effective April
6, 2000.
4. allotting and issuing to the Optionors a total of 50,000
fully paid and non-assessable common shares in the capital of the
Company upon execution of the Option Agreement.
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The Company has also agreed to pay to the Optionors a royalty
equal to 1% of net smelter returns earned from the Option
Property. The net smelter royalty is defined as the gross
proceeds received by the Company from the sale of any ore from
the mining of the Option Property, less costs of transportation,
refining and applicable taxes.
Plan of Operations
The Company has decided to proceed with an exploration program on
the Green Fusion Properties as recommended by a geological report
obtained by the Company on the Green Fusion Properties, provided
the Company can achieve additional financing. The Company
anticipates that proceeding with exploration program will cost
approximately $50,000. The Company will assess whether to
proceed with further exploration programs upon completion of the
exploration program and an evaluation of the results.
The Company had cash on hand in the amount of $5,552 as of
September 30, 2000. The Company will require additional
financing to enable the Company to complete the exploration
program. The Company will also require additional financing in
order to meet its obligations for the next twelve-month period,
including payment of the legal and accounting expense of
complying with its obligations as a reporting issuer under the
Securities Exchange Act of 1934.
The Company will also require additional funding in the event
that the Company determines to proceed with additional
exploration programs beyond the exploration program recommended
in the Geological Report. The Company anticipates that the cost
of any additional exploration program would be in excess of the
projected cash reserves of the Company upon completion of the
exploration program recommended in the Geological Report.
The Company anticipates that additional funding will be in the
form of equity financing from the sale of the Company's common
stock. There is no assurance that the Company will be able to
achieve additional sales of its common stock sufficient to fund
the its working capital requirements, its planned exploration
program or any additional exploration programs. The Company
believes that debt financing will not be an alternative for
funding additional exploration programs. The Company does not
have any arrangements in place for equity financing.
The Company may consider bringing in a joint venture partner for
the Green Fusion Properties if it is unable to achieve sufficient
funding by itself to proceed with the planned exploration
programs. The Company does not have any arrangements in place
with any potential joint venture partner.
Results Of Operations
The Company incurred a loss of $31,313 for the nine months ending
September 30, 2000, compared to a loss of $3,966 for the nine
months ending September 30, 1999. The increased loss was
reflective of the increased operating expenses incurred by the
Company during the nine-month period. Operating expenses
increased to $31,313 for the nine months ending September 30,
2000, compared to operating expenses of $3,966 for the nine
months ending September 30, 1999. Operating expenses during the
nine months consisted entirely of professional fees, including
professional fees incurred with the filing of the Company's Form
10-SB registration
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statement. The increase in operating expenses incurred during
the first nine months of 2000 compared with the operating expenses
incurred during the first nine months of 1999 reflect the increased
professional expenses associated with the Company becoming a
reporting company under the United States Securities Exchange Act
of 1934. The Company will continue to incur higher professional
expenses in order to comply with its ongoing obligations under the
Securities Exchange Act of 1934.
The Company did not achieve any revenues during the nine months
ending September 30, 2000. The Company does not anticipate
achieving revenues until such time as the Company enters into
commercial production of the Company's mineral properties. The
Company is presently in the exploration stage of its development
and there is no assurance that the Company will discover
commercially exploitable levels of mineral resources on its
properties, or if such resources are discovered, that the Company
will enter into commercial production of its mineral properties.
Liquidity And Capital Resources
The Company had cash of $5,552 as of September 30, 2000 and a
working capital deficit of $7,007 as of September 30, 2000. The
Company used its existing cash reserves to pay for the property
maintenance costs and operating expenses incurred during the
first nine months of 2000. The Company will require additional
financing in order to proceed with exploration of its mineral
properties. See "Plan of Operations" above.
Impact of the Year 2000 Issue
The "Year 2000 problem" arose because many existing computer
programs use only the last two digits to refer to a year.
Therefore, these computer programs were not expected to properly
recognize a year that begins with "20" instead of the familiar
"19". Many experts believed that if not corrected this problem
would lead to widespread computer failures. Since the turn of
the century, however, the Company has not experienced any adverse
effects of this Year 2000 problem.
CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS
OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
From time to time, the Company will make written and oral
forward-looking statements about matters that involve risk and
uncertainties that could cause actual results to differ
materially from projected results. Important factors that could
cause actual results to differ materially include, among others:
* Fluctuations in the market prices of uranium
* General domestic and international economic and political
conditions
* Unexpected geological conditions or unfavourable results of
exploration
* Difficulties associated with managing complex operations in
remote areas
* Unanticipated milling and other processing problems
* The speculative nature of mineral exploration
* Environmental risks
* Changes in laws and government regulations, including those
relating to taxes and the environment
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* The availability and timing of receipt of necessary
governmental permits and approval relating to operations,
expansion of operations, and financing of operations
* Fluctuations in interest rates and other adverse financial
market conditions
* Other unanticipated difficulties in obtaining necessary financing
* The failure of equipment or processes to operate in accordance
with specifications or expectations
* Labour relations
* Accidents
* Unusual weather or operating conditions
* Force majeure events
* Other risk factors described from time to time in the
Company's filings with the Securities and Exchange Commission.
Many of these factors are beyond the Company's ability to control
and predict. Investors are cautioned not to place undue reliance
on forward-looking statements. The Company disclaims any intent
or obligation to update its forward-looking statements, whether
as a result of receiving new information, the occurrence of
future events, or otherwise.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
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.
(a) Exhibits
Exhibit 27.1 - Financial Data Schedule
(b) Reports on Form 8-K
None
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SIGNATURES
In accordance with the requirements of the Securities and
Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned,
thereunto duly authorised.
GREEN FUSION CORPORATION
Date: November 13, 2000
By: /s/ Logan B. Anderson
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LOGAN B. ANDERSON
President and Director
