U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: December 31, 1999
Commission file no.: 0-25657
Shoe Krazy, Inc.
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(Name of Small Business Issuer in its Charter)
Florida 65-0877741
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(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
222 Lakeview Avenue, Suite 160
West Palm Beach, FL 33401
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number: (561) 832-5705
Securities to be registered under Section 12(b) of the Act:
Title of each class Name of each exchange on
which registered
None None
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Securities to be registered under Section 12(g) of the Act:
Common Stock, $.0001 par value per share
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(Title of class)
Copies of Communications Sent to:
Donald F. Mintmire
Mintmire & Associates
265 Sunrise Avenue, Suite 204
Palm Beach, FL 33480
Tel: (561) 832-5696 - Fax: (561) 659-5371
<PAGE>
Indicate by Check whether the issuer (1) filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
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As of December 31, 1999, there are 2,100,000 shares of voting stock
of the registrant issued and outstanding.
<PAGE>
PART I
Item 1. Financial Statements
SHOE KRAZY, INC.
INDEX TO THE FINANCIAL STATEMENTS
SHOE KRAZY, INC.
TABLE OF CONTENTS
Page
Balance Sheet.....................................................F-1
Statement of Operations and Accumulated Deficit...................F-2
Statement of Cash Flows...........................................F-3
Notes to Financial Statements.....................................F-4
<PAGE>
<TABLE>
<CAPTION>
SHOE KRAZY, INC.
( A Development Stage Company)
BALANCE SHEET
December 31, 1999
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ASSETS
<S> <C>
Current Assets:
Cash $ 198
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TOTAL CURRENT ASSETS $ 198
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$ 198
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LIABILITIES
Current Liabilities:
Accrued expenses $ -
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TOTAL CURRENT LIABILITIES $ -
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$ -
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STOCKHOLDERS' EQUITY
Common stock - $.0001 par value - 50,000,000 share authorized
2,100,000 shares issued and outstanding 210
Preferred stock - No par value - 10,000,000 shares authorized
No shares issued or outstanding -
Additional paid-in-capital 63,290
Accumulated deficit (63,302)
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TOTAL STOCKHOLDERS' EQUITY 199
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$ 198
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</TABLE>
F-1
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
SHOE KRAZY, INC.
( A Development Stage Company)
STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
For the period October 1, 1999 to December 31, 1999
- -----------------------------------------------------------------------
<S> <C>
Revenues $ -
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Operating expenses:
Bank charges 45 45
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Loss before income taxes (45)
Income taxes -
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Net loss (45)
Accumulated deficit - October 1, 1999 (13,257)
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Accumulated deficit - December 31, 1999 $ (63,302)
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Net loss per share $ -
- ------------------------------------------------------- ---------------
</TABLE>
F-2
The accompanying notes are an integral part of the financial statements
<PAGE>
<TABLE>
<CAPTION>
SHOE KRAZY, INC.
(A Development Stage Company)
Statement of Cash Flows
For the period October 1, 1999 to December 31, 1999
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<S> <C>
Operating Activities:
Net loss $ (20,700)
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Net cash used by operating activities (45)
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Net decrease in cash (45)
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Cash - October 1, 1999 243
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Cash - December 31, 1999 $ 198
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</TABLE>
F- 3
The accompanying notes are an integral part of the financial statements
<PAGE>
Shoe Krazy, Inc.
Notes to Financial Statements
Note A - Summary of Significant Accounting Policies:
Organization
Shoe Krazy, Inc. (a development stage company) is a Florida Corporation
organized October 17, 1994 to operate a retail shoe and foot products company.
The Company failed in its attempt to implement its initial business plan and
during December 1995 abandoned its efforts. The Company had no operations for
the period prior to December 1995. The Company was inactive from December 1995
to the date of reinstatement by the State of Florida on December 1, 1998.
The Company has a new business plan, which was adopted on or about December 1,
1998, which is to engage in seeking potential operating businesses and business
opportunities with the intent to acquire or merge with such businesses. The
assets of the Company will be used for its expenses of operation to implement
this plan.
Accounting Method
The Company's financial statements are prepared using the accrual method of
accounting. The Company has elected a 30 year end.
Start - Up Costs
Start - up and organization costs are being expensed as incurred.
Loss Per Share
The computation of loss per share of common stock is based on the weighted
average number of shares outstanding at the date of the financial statements.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
Interim Financial Statements
The December 31, 1999 interim financial statements include all adjustments,
which in the opinion of management are necessary in order to make the financial
statements not misleading.
Note B - Stockholders' Equity:
On November 1, 1994, the Company issued 600,000 shares of common stock, in lieu
of cash, for the fair market value of services rendered by its initial officer -
stockholder. On or about December 1, 1998, third parties purchased the shares
from the initial officer - stockholder. The same third parties purchased at
$0.05 per share, 1,000,000 shares of the common stock of the Company in a
private placement pursuant to Regulation D of the SEC. On or about December 1,
1998, the Company issued 500,000 shares of its common stock to its sole officer
in exchange for services valued at $12,500.
At December 31, 1999, the Company had authorized 50,000,000 shares of $.0001 par
value common stock and had 2,100,000 shares of common stock issued and
outstanding. In addition, the Company authorized 10,000,000 shares of preferred
stock with the specific terms; conditions, limitations and preferences to be
determined by the Board of Directors. None of the preferred stock is issued and
outstanding.
F-4
<PAGE>
Shoe Krazy, Inc.
Notes to Financial Statements
Note C - Income Taxes:
The Company has a net operating loss carry forward of $62,302 that may be offset
against future taxable income. If not used, the carry forward will expire in
2019. The amount recorded as deferred tax assets, cumulative as of June 30, 1999
is $12,000, which represents the amounts of tax benefits of loss carry-
forwards. The Company has established a valuation allowance for this deferred
tax asset of $12,000, as the Company has no history of profitable operations.
Note D - Going Concern:
The Company's financial statements are prepared using generally accepted
accounting principles applied to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. The Company has incurred losses from its inception through December
31, 1999. It has not established revenues sufficient to cover operating costs
and to allow it to continue as a going concern. Currently management is
committed to obtain additional capital.
F-5
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation
General
The Company is considered a development stage company with limited
assets or capital, and with no operations or income since approximately 1994.
The costs and expenses associated with the preparation and filing of the
Company's registration statement and other operations of the Company have been
paid for by a shareholder, specifically Mr. Rodney Delaney Ford. It is
anticipated that the Company will require only nominal capital to maintain the
corporate viability of the Company and any additional needed funds will most
likely be provided by the Company's existing shareholders or its officers and
directors in the immediate future. However, unless the Company is able to
facilitate an acquisition of or merger with an operating business or is able to
obtain significant outside financing, there is substantial doubt about its
ability to continue as a going concern.
In the opinion of management, inflation has not and will not have a
material effect on the operations of the Company until such time as the Company
successfully completes an acquisition or merger. At that time, management will
evaluate the possible effects of inflation on the Company as it relates to its
business and operations following a successful acquisition or merger.
Plan of Operation
During the next twelve months, the Company will actively seek out and
investigate possible business opportunities with the intent to acquire or merge
with one or more business ventures. In its search for business opportunities,
management will follow the procedures outlined in Item 1 to its Registration
Statement on Form 10SB. Because the Company has limited funds, it may be
necessary for the officers and directors to either advance funds to the Company
or to accrue expenses until such time as a successful business consolidation can
be made. Management intends to hold expenses to a minimum and to obtain services
on a contingency basis when possible. Further, the Company's directors will
defer any compensation until such time as an acquisition or merger can be
accomplished and will strive to have the business opportunity provide their
remuneration. However, if the Company engages outside advisors or consultants in
its search for business opportunities, it may be necessary for the Company to
attempt to raise additional funds. As of the date hereof, the Company has not
made any arrangements or definitive agreements to use outside advisors or
consultants or to raise any capital. In the event the Company does need to raise
capital most likely the only method available to the Company would be the
private sale of its securities. Because of the nature of the Company as a
development stage company, it is unlikely that it could make a public sale of
securities or be able to borrow any significant sum from either a commercial or
private lender. There can be no assurance that the Company will able to obtain
additional funding when and if needed, or that such funding, if available, can
be obtained on terms acceptable to the Company.
The Company does not intend to use any employees, with the possible
exception of part-time clerical assistance on an as-needed basis. Outside
advisors or consultants will be used only if they can be obtained for minimal
cost or on a deferred payment basis. Management is convinced that it will be
able to operate in this manner and to continue its search for business
opportunities during the next twelve months.
<PAGE>
For the period from October 1, 1999 through December 31, 1999, the
Company had no income from operations and operating expenses aggregating $45.
Financial Condition, Capital Resources and Liquidity
At December 31, 1999, the Company had assets totaling $198 and no
liabilities. Mr. Ford is the President, Secretary and Treasurer of the Company
and record and beneficial owner of approximately 23.8% of the Company's
outstanding Common Stock.
The Company has no potential capital resources from any outside
sources at the current time. It is anticipated that the Company will require
only nominal capital to maintain the corporate viability of the Company. Any
additional capital needed will most likely be provided by the Company's existing
shareholders or its officers and directors.
The ability of the Company to continue as a going concern is
dependent upon the availability of obtaining additional capital and financing
from such shareholders and directors.
Net Operating Losses
The Company has net operating loss carryforwards of $62,302 which
expire in the years 2019. Until the Company's current operations begin to
produce earnings, it is unclear whether the Company can utilize such
carryforwards.
Year 2000 Compliance
The Company did not experience any material negative impact to its
operations as a result of the Year 2000 calendar change. The Company did not
experience any material impact to its financial condition as a result of
becoming Year 2000 compliant. The Company does not anticipate any material
disruption in its operations in the future as a result of the Year 2000 calendar
change.
Forward-Looking Statements
This Form 10-QSB includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All statements, other
than statements of historical facts, included or incorporated by reference in
this Form 10-QSB which address activities, events or developments which the
Company expects or anticipates will or may occur in the future, including such
things as future capital expenditures (including the amount and nature thereof),
finding suitable merger or acquisition candidates, expansion and growth of the
Company's business and operations, and other such matters are forward-looking
statements. These statements are based on certain assumptions and analyses made
by the Company in light of its experience and its perception of historical
trends, current conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However, whether
actual results or developments will conform with the Company's expectations and
predictions is subject to a number of risks and uncertainties, general economic
market and business conditions; the business opportunities (or lack thereof)
that may be presented to and pursued by the Company; changes in laws or
regulation; and other factors, most of which are beyond the control of the
<PAGE>
Company. Consequently, all of the forward-looking statements made in this Form
10-QSB are qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by the Company
will be realized or, even if substantially realized, that they will have the
expected consequence to or effects on the Company or its business or operations.
The Company assumes no obligations to update any such forward-looking
statements.
PART II
Item 1. Legal Proceedings.
The Company knows of no legal proceedings to which it is a party or
to which any of its property is the subject which are pending, threatened or
contemplated or any unsatisfied judgments against the Company.
Item 2. Changes in Securities and Use of Proceeds
None
Item 3. Defaults in Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders.
No matter was submitted during the quarter ending December 31, 1999,
covered by this report to a vote of the Company's shareholders, through the
solicitation of proxies or otherwise.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) The exhibits required to be filed herewith by Item 601 of Regulation
S-B, as described in the following index of exhibits, are
incorporated herein by reference, as follows:
Exhibit No. Description
- ------------ -------------------------------------------------------
3(i).1 Articles of Incorporation filed October 17, 1994(1)
3(i).2 Articles of Amendment (filed with original 10SB)(1)
3(ii).1 By-laws (1)
27 * Financial Data Schedule
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(1) Incorporated herein by reference to the Company's Registration Statement on
Form 10-SB.
* Filed herewith
<PAGE>
(b) No Reports on Form 8-K were filed during the quarter ended December 31,
1999.
SIGNATURES
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In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Shoe Krazy, Inc.
Date: February 11, 2000 BY: /s/ RODNEY DELANEY FORD
---------------------------
Rodney Delaney Ford,
President
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001075445
<NAME> Shoe Krazy, Inc.
<MULTIPLIER> 1
<CURRENCY> U.S. Currency
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Sep-30-1998
<PERIOD-START> Oct-1-1998
<PERIOD-END> Dec-30-1999
<EXCHANGE-RATE> 1
<CASH> 198
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 198
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 210
<OTHER-SE> 199
<TOTAL-LIABILITY-AND-EQUITY> 198
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 45
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (45)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (45)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
