U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 333-69415
BALANCED LIVING, INC.
(Name of Small Business Issuer as specified in its charter)
Colorado 87-0575577
(State or other jurisdiction of (I.R.S. employer
Incorporation or organization) identifcation No.)
6375 South Highland Drive, Suite D, Salt Lake City, Utah 84121
(Address of principal executive offices)
801-424-1624
(Registrants telephone no., including area code)
No Change
(Former name, former address, and former fiscal year, if changed since last
report.)
Securities registered pursuant to Section 12(b) of the Exchange Act: None
Securities registered pursuant to Section 12(g) of the Exchange Act: None
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 registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
Common Stock outstanding at June 30, 1999 - 767,849 shares of $.001 par value
Common Stock.
<PAGE>
BALANCED LIVING, INC.
[ A Development Stage Company ]
INDEX
PART I Financial Information
Item I Condensed Balance Sheets -
June 30, 1999 and December 31, 1998 2
Condensed Statements of Operations -
three and six months ended June 30, 1999
and 1998 and from inception on January 26,
1998 through June 30, and 1999 3
Condensed Statements of Cash Flows -
six months ended June 30, 1999 and 1998 and
from inception on January 26, 1998 through
June 30, 1999 4
Notes to Condensed Financial Statements 5
Item 2 Management's Plan of Operations 10
PART II Other Information
Item 1 Legal Proceedings 11
Item 2 Changes in Securities 11
Item 3 Defaults upon Senior Securities 11
Item 4 Submission of Matters to a vote of
Security Holders 11
Item 5 Other Information 11
Item 6 Exhibits and Reports on Form 8-K 11
Signature page 11
<PAGE>
PART 1 FINANCIAL INFORMATION
Item 1 Financial Statements
BALANCED LIVING, INC. AND SUBSIDIARY
[A Development Stage Company]
UNAUDITED CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, December 31,
1999 1998
___________ ___________
CURRENT ASSETS:
Cash in bank $ 4,160 $ 56,663
Inventory 11,661 13,227
Prepaid expenses 600 35,395
Deferred stock offering costs 30,690 -
___________ ___________
Total Current Assets 47,111 105,285
EQUIPMENT, net 3,954 3,272
___________ ___________
$ 51,065 $ 108,557
___________ ___________
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 30,690 $ 5,870
Notes payable - related party 79,584 330,000
Accrued liabilities 1,892 5,379
___________ ___________
Total Current Liabilities 112,166 341,249
___________ ___________
STOCKHOLDERS' DEFICIT:
Preferred stock, $.001 par value,
10,000,000 shares authorized,
no shares issued and outstanding - -
Common stock, $.001 par value,
50,000,000 shares authorized,
767,849 and 600,000 shares
issued and outstanding, respectively 768 600
Capital in excess of par value 410,094 44,900
Deficit accumulated during the
development stage (471,963) (278,192)
___________ ___________
Total Stockholders' Deficit (61,101) (232,692)
___________ ___________
$ 51,065 $ 108,557
___________ ___________
Note: The Balance sheet as of December 31, 1998 was taken from the audited
financial statements as of that date.
The accompanying notes are an integral part of these consolidated financial
statements.
2
<PAGE>
BALANCED LIVING, INC. AND SUBSIDIARY
[A Development Stage Company]
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three For the Six From Inception
Months Ended Months Ended on January 26,
June 30, June 30, 1998 Through
_____________________ _____________________ June 30,
1999 1998 1999 1998 1999
__________ __________ __________ __________ ______________
REVENUE $ 14,989 $ 1,767 $ 24,858 $ 3,643 $ 39,772
COST OF SALES 21,466 10,967 27,901 12,212 55,226
__________ __________ __________ __________ ______________
GROSS PROFIT (LOSS) (6,477) (9,200) (3,043) (8,569) (15,454)
__________ __________ __________ __________ ______________
EXPENSES:
General and
administrative 38,229 43,783 119,871 74,895 367,967
__________ __________ __________ __________ ______________
OPERATING LOSS (44,706) (52,983) (122,914) (83,464) (383,421)
OTHER INCOME
(EXPENSE):
Interest expense (56,105) (2,297) (70,857) (2,297) (88,542)
__________ __________ __________ __________ ______________
LOSS BEFORE
INCOME TAXES (100,811) (55,280) (193,771) (85,761) (471,963)
CURRENT TAX
EXPENSE - - - - -
DEFERRED TAX
EXPENSE - - - - -
__________ __________ __________ __________ ______________
NET LOSS $(100,811) $ (55,280) $(193,771) $ (85,761) $ (471,963)
__________ __________ __________ __________ ______________
LOSS PER COMMON
SHARE:
Basic loss
per share $ (.13) $ (.09) $ (.28) $ (.14) $ (.75)
__________ __________ __________ __________ ______________
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE>
BALANCED LIVING, INC. AND SUBSIDIARY
[A Development Stage Company]
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six From Inception
Months Ended on January 26,
June 30, 1998 Through
_____________________ June 30,
1999 1998 1999
__________ __________ _______________
Cash Flows Used by Operating
Activities:
Net loss $(193,771) $ (85,761) $(471,963)
Non-cash operating items
Adjustments to reconcile net loss
to net cash used by operating
activities:
Depreciation 404 - 768
Non-cash expense 35,362 - 76,646
Changes in assets and liabilities:
(Increase) decrease in inventory 1,566 (10,730) (11,661)
Increase (decrease) in prepaid
assets 34,795 (5,568) (600)
(Increase) decrease in accounts
payable 24,820 (1,597) 30,690
(Increase) decrease in accrued
liabilities (3,487) - (1,892)
Increase in deferred stock offering
costs (30,690) - (30,690)
__________ __________ _______________
Net Cash Used by Operating
Activities (131,001) (103,656) (408,702)
__________ __________ _______________
Cash Flows Used by Investing
Activities:
Equipment purchases (1,086) (2,550) (4,722)
__________ __________ _______________
Net Cash Used by Investing
Activities (1,086) (2,550) (4,722)
__________ __________ _______________
Cash Flows Provided by Financing
Activities:
Proceeds from options granted - - 5,000
Proceeds from common stock issuance - - 3,000
Proceed from related party payables 19,584 - 19,584
Proceeds from issuance of warrants
and notes payable 60,000 160,000 390,000
__________ __________ _______________
Net Cash Provided by Financing
Activities 79,584 160,000 417,584
__________ __________ _______________
Net Increase in Cash (52,503) 53,794 4,160
Cash at Beginning of Period 56,663 - -
__________ __________ _______________
Cash at End of Period $ 4,160 $ 53,794 $ 4,160
__________ __________ _______________
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
Supplemental Schedule of Noncash Investing and Financing Activities:
For the period ended December 31, 1998:
The Company entered into a reorganization with The Balanced Woman, Inc.
wherein the shareholders of The Balanced Woman retained 500,000 shares of
stock in the Company.
The Company issued 37,500 warrants at $1.00 per warrant charged against
prepaid interest expense.
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
BALANCED LIVING, INC. AND SUBSIDIARY
[A Development Stage Company]
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization - The Balanced Woman, Inc. ("Subsidiary") was organized under the
laws of the State of Colorado on January 26, 1998. During July, 1998 the
Company was reorganized through a stock for stock exchange with Balanced
Living, Inc. ("Parent") [See Note 2]. Balanced Living, Inc. a Colorado
corporation, was organized on July 1, 1998. Balanced Living, Inc and
Subsidiary (the Company) has not raised significant revenue from planned
principal operations and is considered a development stage company as defined
in SFAS No. 7. The Company is engaged in the business of holding motivational
seminars, and selling books and other motivational products. 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. The company expects to adopt December 31st as its
fiscal year end.
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
June 30, 1999 and for all the 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 December 31, 1998
audited financial statements. The results of operations for the periods ended
June 30, 1999 are not necessarily indicative of the operating results for the
full year.
Consolidation - The consolidated financial statements include the accounts of
the Company and its wholly-owned subsidiary, The Balanced Woman, Inc. All
significant intercompany transactions have been eliminated in consolidation.
Inventories - Inventories are stated at the lower of cost or market. Cost is
determined by the first-in, first-out method.
Equipment - Equipment is carried at cost and is depreciated over the
estimated useful lives of the equipment using the straight line method.
Revenue Recognition - The company's revenue comes from holding motivational
seminars and selling motivational products (books, cards, CD's, etc.).
Revenue is recognized when the services are rendered or the product is
delivered.
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 SFAS 128 "Earnings Per Share". Diluted loss per share is not presented
because its effect is antidilutive.
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.
5
<PAGE>
BALANCED LIVING, INC. AND SUBSIDIARY
[A Development Stage Company]
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Continued]
Accounting Estimates - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities, the disclosures of contingent assets and liabilities at the date
of the financial statements, and the reported amount of revenues and expenses
during the reported period. Actual results could differ from those estimated.
Fair Value of Financial Instruments - Management estimates that the carrying
value of financial instruments on the consolidated financial statements
approximates their fair values.
Restatement - The financial statements have been restated to reflect the
reorganization of the Company pursuant to a stock for stock exchange [See Note
2]. All references to common stock and the numbers of shares issued and
outstanding have been restated to reflect the shares of common stock issued in
the reorganization.
NOTE 2 - BUSINESS REORGANIZATION
On July 14, 1998 the Company entered into an Agreement and Plan of
Reorganization wherein Parent acquired all the issued and outstanding shares
of common stock of Subsidiary in a stock for stock exchange. Parent issued
500,000 shares of common stock in the exchange. Parent and Subsidiary had
similar ownership at the time of reorganization and were considered to be
entities under common control. Accordingly, the reorganization has been
recorded in a manner similar to a pooling of interests.
NOTE 3 - INVENTORIES
Inventories consisted of finished goods in the amount of $13,227 at December
31, 1998 and $11,661 at June 30, 1999.
NOTE 4 - EQUIPMENT
Equipment consists of the following:
Estimated
Useful Lives June 30, December 31,
in Years 1999 1998
___________ __________ __________
Office equipment 5 - 7 $ 4,722 $ 3,636
__________ __________
4,722 3,636
Accumulated depreciation (768) (364)
__________ __________
$ 3,954 $ 3,272
__________ __________
Depreciation expense for the six months ended June 30, 1999 and 1998 was $404
and $0, respectively.
6
<PAGE>
BALANCED LIVING, INC. AND SUBSIDIARY
[A Development Stage Company]
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 5 - NOTES PAYABLE
During 1998, the Company issued subordinated demand notes payable to various
officers, shareholders, and consultants in the amount of $330,000. The notes
bear interest at a rate of 10% per annum with quarterly interest payments, the
notes are due on September 1, 1999. Note-holders can demand payment of the
unpaid principal plus accrued interest in order to purchase other equity
opportunities in the Company of equal value at any time prior to the maturity
date. As of December 31, 1998, interest payments have been made in the amount
of $11,816. The notes are subordinated by 80,000 warrants to purchase one
share of the Company's stock at $1 per share [See Note 6]. During the six
month period ended June 30, 1999 the Company raised an additional $60,000
through issuing additional subordinated demand notes payable, $60,000 of which
came from a private investor. Warrants for 30,000 shares of common stock were
included in the transaction on the same terms as above.
Because the Company was proposing a future stock offering at $2.00 per share,
37,500 warrants that were issued during December, 1998 were deemed to have a
value of $1.00 per warrant. Accordingly, $37,500 was recorded as prepaid
interest expense and is being amortized over the life of the notes. Prepaid
interest expenses of $30,000 was also recorded during March, 1999 for the
warrants issued during March, 1999. During April 1999 the note holders
converted $330,000 into common stock, and all prepaid amounts were expensed.
NOTE 6 - CAPITAL STOCK
Common Stock - In connection with its acquisition of Subsidiary on July 14,
1998, the Company issued 500,000 shares of its previously authorized, but
unissued common stock [See Note 2]. The Subsidiary had previously been funded
with $2,000.
During July, 1998, the Company issued 100,000 shares of common stock in
connection with the organization of the Company at $.01 per share. Total
proceeds amounted to $1,000.
Stock Warrants - During 1998, Subsidiary issued 165,000 common stock warrants
to various officers, directors and consultants in conjunction with the
issuance of subordinated notes payable [See Note 5]. Due to the
reorganization of the company [See note 2], the warrants of Subsidiary were
cancelled, and re-issued under the same terms by Parent during 1998. Each
warrant grants the holder the right to purchase one share of the Company's
common stock at a price of $1 per share. The warrants may be exercised at any
time prior to March 1, 2003. An additional 30,000 warrants were issued
subsequent to December, 1998. The Company has accrued additional interest
expense for warrants issued after November 1999 as the exercise price of the
warrants were less than the arbitrary value of $2.00 proposed for the
Company's upcoming stock offering. During 1998 $37,500 was capitalized as
prepaid interest expenses and is being amortized over the life of the note.
An additional $30,000 was capitalized in 1999 and will be amortized over the
life of the note. During the six months ended June 30, 1999 Prepaid Interest
was expensed.
During April 1999, in conjunction with the conversion on Notes Payable [See
Note 5], the Company issued 259,367 A warrants, 259,367 B warrants and 259,367
C warrants.
Stock Option Plan - During January, 1998 the Company implemented its 1998
stock option plan. The plan provides for 1,000,000 shares of common stock to
be reserved
7
<PAGE>
BALANCED LIVING, INC. AND SUBSIDIARY
[A Development Stage Company]
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6 - CAPITAL STOCK [Continued]
for issuance to officers, directors, employees and consultants as employment
incentives. As of June 30, 1999, no options have been issued under the plan.
NOTE 7 - INCOME TAXES
The Company accounts for income taxes in accordance with Statement of
Financial Accounting Standards No. 109 "Accounting for Income Taxes". SFAS
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 June 30, 1999 the Company has available unused
operating loss carryforwards of approximately $471,963 which may be applied
against future taxable income and which expire in 2019.
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 tax effect of the loss carryforwards and,
therefore, no deferred tax asset has been recognized for the loss
carryforwards. The net deferred tax assets are approximately $160,400 as of
June 30, 1999 with an offsetting valuation allowance of the same amount
resulting in a change in the valuation allowance of approximately $91,000
during the six months ended June 30, 1999.
NOTE 8 - RELATED PARTY TRANSACTIONS
Management Compensation - The Company paid $18,000 in salary to the Company's
President/Secretary-Treasurer during the period ended June 30, 1999.
Notes Payable - As of June 30, 1999 the Company had outstanding subordinated
demand notes payable to various officers and shareholders totaling $60,000
[See Note 5].
Stock Warrants - During the period ended December 31, 1998, the Company issued
165,000 common stock warrants to various officers, directors and consultants
[See Note 6]. Of the 165,000 warrants, 5,000 were issued to the Company's
President/Secretary-Treasurer, and 37,500 were issued to a majority
shareholder.
Stock Options - During the period ended December 31, 1998, The Company issued
500,000 stock options to various officers, directors and consultants [See Note
6]. Of the 500,000 options, 50,000 were issued to the Company's
President/Secretary-Treasurer, and 50,000 were issued to a majority
shareholder.
8
<PAGE>
BALANCED LIVING, INC. AND SUBSIDIARY
[A Development Stage Company]
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9 - LOSS PER SHARE
The following data show the amounts used in computing loss per share and the
effect on income and the weighted average number of shares of dilutive
potential common stock for the periods presented:
For the Three For the Six From Inception
Months Ended Months Ended on January 26,
June 30, June 30, 1998 Through
_____________________ _____________________ June 30,
1999 1998 1999 1998 1999
__________ __________ __________ __________ ______________
Loss from continuing
operations applicable
to common
shareholders
(Numerator) $(100,811) $ (55,280) $(193,771) $ (85,761) $ (471,963)
__________ __________ __________ __________ ______________
Weighted average
number of common
shares outstanding
used in loss per
share during the
period (Denominator) 712,573 600,000 684,430 600,000 629,799
__________ __________ __________ __________ ______________
Dilutive earnings (loss) per share was not presented, as its effect is anti-
dilutive.
The Company had at December 31, 1998, options and warrants to purchase 500,000
and 165,000 shares of common stock , respectively, at prices of $1.00 per
share, that were not included in the computation of diluted loss per share
because their effect was anti-dilutive.
NOTE 10 - SUBSEQUENT EVENTS
Public Offering of Common Stock - The Company has filed a registration
statement with the United States Securities and Exchange Commission on Form
SB-2 under the Securities Act of 1933. The Company is currently selling
100,000 "Units" at a price of $2 per Unit, which price has been arbitrarily
determined by the Company. Each Unit consists of one share of the Company's
$.001 par value common stock sold at $2 per share, one "Class A Warrant" to
purchase one share of common stock at $3 per share, one "Class B Warrant" to
purchase one share of common stock at $5 per share, and one "Class C Warrant"
to purchase one share of common stock at $10 per share. All warrants issued
under the offering will expire on December 31, 2003. The warrants are
callable if, after one year from the issuance date, public trading develops
and trading occurs for at least 20 consecutive days. The warrants are callable
at $.01 per warrant upon 30 days notice by the Company to warrant holders.
The Units will be offered and sold by officers of the Company, who will
receive no sales
commissions or other compensation in connection with the offering, except for
reimbursement of expenses actually incurred on behalf of the Company in
connection with the offering. If a registered broker dealer is used in
selling any of the units, a 10% sales commission will be paid to those broker
dealers who assist in selling the units. The Company has incurred stock
offering costs in the amount of $30,690 as of June 30, 1999. These costs will
be netted against the proceeds of the proposed public offering.
9
<PAGE>
PART I FINANCIAL INFORMATION
ITEM 2 Management's Plan of Operation.
Balanced Living is a new enterprise and a development stage company. Its
revenues to date have been limited, and there is no prior year or quarter
period against which to effectively compare operating results.
As of June 30, 1999, Balanced Living was still operating at a loss. As of
February 1999, seminar revenues have exceeded seminar direct cost. We
anticipate after applying economies of scales and increasing seminar
revenue per head, to become profitable in 2000, but this may not happen due
to risks coming to fruition, such as a possible recession caused by Y2k
effects or national and international economic conditions. Moreover we may
not be able to raise sufficient equity and debt capital to support
operations at a level to generate profits.
In the first six months of 1999, we presented seminars to 209 people,
compared with 360 people in all of 1998. The majority of the 360 persons
in 1998 were complimentary participants used to evaluate for development
purposes and build reputation for referrals. We believe this is typical
for a seminar start-up company. The 209 seminar participants so far in
1999 have a higher revenue per person ratio, suggesting that higher levels
of revenue can be anticipated from continued seminar presentation.
We began to raise new equity capital through our public offering at June
30, 1999. We anticipate raising the full $151,660 net amount sought in our
offering and getting the release of these needed funds on or about August
15, 1999. We are gaining valuable business planning experience and we are
already seeing the need for additional capital funding beyond the full
amount of the current public offering. There are regulatory and practical
difficulties in obtaining this needed funding in the near future. There is
no assurance that we can continue to get the needed funding to reach a
profitable result of operations.
The information other than historical information, and specifically the
information set out in this section, is forward looking information
presenting management's beliefs and estimates about the future. These
beliefs, plans and estimates are subject to significant risks, including an
inability to recruit, hire, and retain skilled seminar facilitators, or a
copyright infringement of Balanced Living's unique curriculum materials and
products and resulting litigation, as well as the failure to successfully
complete its offering. Other risks discussed in the Company's offering
could also negatively effect Balanced Living's ability to meet its
projections in 1999. To combat these potentially harmful conditions, we
have secured the assistance of an intellectual rights attorney and are
taking every measure possible to protect and copyright all materials.
Because skilled trainers will be key to Balanced Living's growth, time and
attention is being placed into recruitment efforts. There is already an
adequate pool of candidates from which to select. The previous projections
are only projections and it is most likely that actual results will differ,
and may significantly differ materially from those anticipated in the
stated projections as a result of certain factors that may occur that may
or may not be within the control of Balanced Living. Over the past 90 days,
a potentially beneficial opportunity has been presented to The Balanced
Woman management team. This opportunity includes a contract, which is
still under negotiation, to feature The Balanced Woman on three Home
Shopping Network broadcasts this fall. Each program would promote a
beautiful gift box filled with Balanced Woman audio cassettes, video tapes,
workbooks, and a aromatherapy candle. This gift pack would not take the
place of the seminar, but would instead, brand the Balanced Woman concepts,
introduce the Seven Balanced Woman principles, and promote future
seminars. The Balanced Woman management made the decision to spend a
10
<PAGE>
substantial amount of time and effort exploring, pursuing, and doing
initial production on this project. Because time and resources were
devoted to pursuing this project, several other projects have been
rescheduled. These projects include development of our corporate training
program, marketing, and customization systems, as well as, the development
of the videos and systems needed to put our Leader's Academy (train-the-
trainer) program in place. Both of these projects, The Leader's Academy
and Corporate Training Customizations will be fast-tracked and piloted
during the last quarter of 1999. A great deal of progress has also been
made in the completion of The Balanced Woman book. We expect to have a
final draft of the manuscript completed by September 1, 1999 and a
publishing strategy in place by October 1, 1999.
PART II OTHER INFORMATION
ITEM 1 Legal Proceedings
None
ITEM 2 Changes in Securities
None
ITEM 3 Defaults on 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
None
b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BALANCED LIVING, INC.
August 13, 1999
Jeannene Barham, President Date
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains financial information extracted from financial
statements as of June 30, 1999, and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 4,160
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 11,661
<CURRENT-ASSETS> 47,111
<PP&E> 3,954
<DEPRECIATION> 0
<TOTAL-ASSETS> 51,065
<CURRENT-LIABILITIES> 112,166
<BONDS> 0
0
0
<COMMON> 768
<OTHER-SE> (61,869)
<TOTAL-LIABILITY-AND-EQUITY> 51,065
<SALES> 24,858
<TOTAL-REVENUES> 24,858
<CGS> 27,901
<TOTAL-COSTS> 27,901
<OTHER-EXPENSES> 119,871
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 70,857
<INCOME-PRETAX> (193,771)
<INCOME-TAX> 0
<INCOME-CONTINUING> (193,771)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (193,771)
<EPS-BASIC> (.28)
<EPS-DILUTED> (.28)
</TABLE>
