PRIME EQUIPMENT CORP.
(FORMERLY PRIME EQUIPMENT CORP.)
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
DECEMBER 31, 1999
<PAGE>
TABLE OF CONTENTS
Page Number
INDEPENDENT ACCOUNTANT'S REPORT............ 1
FINANCIAL STATEMENT:
Balance Sheet.......................................................... 2
Statement of Operations and Deficit
Accumulated During the Development Stage........ 3
Statement of Changes in Stockholders' Equity...... 4
Statement of Cash Flows...................................... 5
Notes to the Financial Statements........................ 6
<PAGE>
INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors and Stockholders
of Prime Equipment, Inc.
(Formerly Prime Equipment Corp.)
Las Vegas, Nevada
I have audited the accompanying balance sheets of Prime
Equipment, Inc. (a development stage company) as of December 31,
1999 and December 31, 1998 and the related statements of
operations, cash flows and changes in stockholders' equity for
the period from December 18, 1998 (date of inception) to December
31, 1999. These financial statements are the responsibility of
Prime Equipment, Inc.'s management. My responsibility is to
express an opinion on these financial statements based on my
audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. I believe that my
audit provides a reasonable basis for my opinion.
In my opinion, the accompanying financial statements
present fairly, in all material respects, the financial position
of Prime Equipment, Inc. as of December 31, 1999 and the results
of operations, cash flows and changes in stockholders' equity for
the year then ended as well as the cumulative period from
December 18, 1998 conformity with generally accepted accounting
principles.
/s/ DAVID COFFEY
David Coffey C.P.A.
Las Vegas, Nevada
January 6, 2000
<PAGE>
PRIME EQUIPMENT, INC.
(FORMERLY PRIME EQUIPMENT CORP.)
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
DEC. 31, DEC. 31,
1999 1998
---------- ----------
ASSETS
Cash $ 20,041 $ 100
Loan receivabl 10,000 0
Interest receivable 617 0
---------- ----------
Total Assets $ 30,658 $ 100
========== ==========
LIABILITIES & STOCKHOLDERS'
EQUITY
Accounts payable $ 29,800 $ 400
---------- ----------
Total Liabilities 29,800 400
Stockholders' Equity
Common stock, authorized
74,000,000 shares
at $.001 par value, issued
and outstanding 4,021,000
and 100,000 shares
respectfully 4,021 100
Additional paid-in capital 21,329 0
Deficit accumulted during the
development stage (24,492) (400)
---------- ----------
Total Stockholders' Equity 858 (300)
Total Liabilities and
Stockholders' Equity $ 30,658 $ 100
========== ==========
The accompanying notes are an integral part of these financial
statements.
-2-
<PAGE>
PRIME EQUIPMENT, INC.
(FORMERLY PRIME EQUIPMENT CORP.)
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
FOR THE YEAR ENDED December 31, 1999
(With Cumulative Figures From Inception)
From Inception,
January 1, 1999 Dec. 18, 1998
To Dec. 31, 1999 To Dec. 31, 1999
----------------- -----------------
Interest $ 617 $ 617
Expenses
Consulting 23,650 23,650
Office expenses 59 59
Organizational expense 0 400
Professional fees 1,000 1,000
----------------- -----------------
Total expenses 24,709 25,109
Net loss (24,092) $ (24,492)
======================
Retained earnings,
beginning of period (400)
-------------
Deficit accumulated
during the development
stage $ (24,492)
=============
Earnings (loss) per share
assuming dilution:
Net loss $ (.00) $ (.01)
============= =============
Weighted average shares
outstanding 3,668,500 3,540,150
============= =============
The accompanying notes are an integral part of these financial
statements.
-3-
<PAGE>
PRIME EQUIPMENT, INC.
(FORMERLY PRIME EQUIPMENT CORP.)
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
PERIOD FROM December 18, 1998 (Date of Inception)
To December 31, 1999
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in
Shares Amount Capital Total
----------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Balance,
December 18, 1998 --- $ --- $ --- $ ---
Issuance of common
stock for cash
December of 1998 100,000 100 0 100
Less net loss 0 0 0 (400)
----------- ---------- --------- -----------
Balance,
December 31, 1998 100,000 100 0 (300)
Issuance of common
stock for cash
March of 1999 100,000 100 9,900 10,000
Stock split 20 to 1
October of 1999 3,800,000 3,800 (3,800) 0
November of 1999 1,000 1 999 1,000
December of 1999 20,000 20 19,980 20,000
Less offering costs 0 0 (5,750) (5,750)
Less net loss 0 0 0 (24,092)
----------- ---------- --------- -----------
Balance,
December 31, 1999 4,021,000 $ 4,021 21,329 $ 858
==================================
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-4-
<PAGE>
PRIME EQUIPMENT, INC.
(FORMERLY PRIME EQUIPMENT CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED December 31, 1999
(With Cumulative Figures From Inception)
From Inception,
January 1, 1999 Dec. 18, 1998
To Dec. 31, 1999 To Dec. 31, 1999
----------------- -----------------
CASH FLOWS PROVIDED BY
OPERATING ACTIVITIES
Net Loss $ (24,092) $ (24,492)
Adjustments to reconcile
net loss to cash used
by operating activity
Loan receivable (10,000) (10,000)
Interest receivable (617) (617)
Accounts payable 29,400 29,800
------------- -------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES (5,309) (5,309)
CASH FLOWS USED BY
INVESTING ACTIVITIES
NET CASH USED BY
INVESTING ACTIVITIES 0 0
CASH FLOWS FROM FINANCING
ACTIVITIES
Sale of common stock 121 221
Paid-in capital 30,879 30,879
Less offering costs (5,750) (5,750)
------------- -------------
NET CASH PROVIDED BY FINANCING
ACTIVITIES 25,250 25,350
NET INCREASE IN
CASH 19,941 $ 20,041
=================
CASH AT BEGINNING OF PERIOD 100
-------------
CASH AT END OF
PERIOD $ 20,041
=============
The accompanying notes are an integral part of these financial
statements.
-5-
<PAGE>
PRIME EQUIPMENT, INC.
(FORMERLY PRIME EQUIPMENT CORP.)
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1999
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company was incorporated on December 18, 1998 under
the laws of the state of Nevada. The business purpose of
the Company is to start a chain of equipment rental
services.
The Company will adopt accounting policies and procedures
based upon the nature of future transactions.
NOTE B SALE OF COMMON STOCK
In March of 1999, the Company completed the sale of
100,000 shares of its common stock at $.10 per share or
$10,000, 1,000 shares of its common stock at $1.00 per
share in November of 1999 and 20,000 shares of the common
stock at $1.00 in December of 1999.
NOTE C NAME CHANGE AND INCREASE IN AUTHORIZED CAPITAL
On October 28th, 1999, the Company changed its name from
"Prime Equipment Corp." to "Prime Equipment, Inc." and
increased its authorized capital stock to 74,000,000
shares of $.001 per share par value from 50,000,000
shares of $.001 per share par value. Of the 74,000,000
authorized shares, 50,000,000 are common stock and
24,000,000 are preferred shares.
NOTE D STOCK SPLIT
On October 29, 1999, the Company approved a twenty to one
stock split. Prior to the stock split there were 200,000
shares of common stock outstanding and after the stock
split there were 4,000,000 shares of common stock
outstanding.
NOTE E EARNING (LOSS) PER SHARE
Basic EPS is determined using net income divided by the
weighted average shares outstanding during the period.
Diluted EPS is computed by dividing net income by the
weighted shares outstanding, assuming all dilitive
potential common shares were issued. Since the Company
has no common shares that are potentially issuable, such
as stock options, convertible securities or warrants,
basic and diluted EPS are the same.
-6-
<PAGE>
PRIME EQUIPMENT CORP.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
DECEMBER 31, 1998
<PAGE>
TABLE OF CONTENTS
Page Number
INDEPENDENT ACCOUNTANT'S REPORT.......... 1
FINANCIAL STATEMENT:
Balance Sheet.......................................................... 2
Statement of Operations and Deficit
Accumulated During the Development Stage........ 3
Statement of Changes in Stockholders' Equity...... 4
Statement of Cash Flows...................................... 5
Notes to the Financial Statements........................ 6
<PAGE>
INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors and Stockholders
of Prime Equipment Corp.
Las Vegas, Nevada
I have audited the accompanying balance sheet of Prime
Equipment Corp. (a development stage company) as of December 31,
1998 and the related statements of operations, cash flows and
changes in stockholders' equity for the period from December 18,
1998 (date of inception) to December 31, 1998. These financial
statements are the responsibility of Prime Equipment Corp.'s
management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. I believe that my
audit provides a reasonable basis for my opinion.
In my opinion, the accompanying financial statements
present fairly, in all material respects, the financial position
of Prime Equipment Corp. as of December 31, 1998 and the results
of operations, cash flows and changes in stockholders' equity for
the period then ended in conformity with generally accepted
accounting principles.
/s/ DAVID COFFEY
David Coffey C.P.A.
Las Vegas, Nevada
November 22, 1999
<PAGE>
PRIME EQUIPMENT CORP.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
DECEMBER 31, 1998
ASSETS
Cash $ 100
--------------
Total Assets $ 100
==============
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable $ 400
--------------
Total Liabilities 400
Stockholders' Equity
Common stock, authorized 50,000,000 shares
at $.001 par value, issued and outstanding
100,000 shares 100
Deficit accumulated during the
development period (400)
--------------
Total Stockholders' Equity (300)
Total Liabilities and Stockholders' Equity $ 100
==============
The accompanying notes are an integral part of these financial
statements.
-2-
<PAGE>
PRIME EQUIPMENT CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
FOR PERIOD ENDED FROM December 18, 1998
To December 31, 1998
Sales $ 0
Expenses
Organizational expense 400
--------------
Total expenses 400
Net loss (400)
Retained earnings,
beginning of period 0
--------------
Deficit accumulated during
the development stage $ (400)
==============
Earnings (loss) per share
assuming dilution:
Net loss $ (.00)
==============
Weighted average shares outstanding 100,000
==============
The accompanying notes are an integral part of these financial
statements.
-3-
<PAGE>
PRIME EQUIPMENT CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
PERIOD From December 18, 1998 (Date of Inception)
To December 31, 1998
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in
Shares Amount Capital Total
----------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Balance,
December 18, 1998 --- $ --- $ --- $ ---
Issuance of common
stock for cash 100,000 100 0 100
Less net loss 0 0 0 (400)
----------- ---------- --------- -----------
Balance,
December 31, 1998 100,000 $ 100 $ 0 $ (300)
================================
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-4-
<PAGE>
PRIME EQUIPMENT CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
From December 18, 1998
To December 31, 1998
CASH FLOWS USED BY OPERATING ACTIVITIES
Net loss $ (400)
Increase in accounts payable 400
--------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 0
CASH FLOWS USED BY INVESTING ACTIVITIES
NET CASH USED BY
INVESTING ACTIVITIES 0
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock 100
--------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 100
NET INCREASE IN CASH 100
CASH AT BEGINNING OF PERIOD ---
--------------
CASH AT END OF PERIOD $ 100
==============
The accompanying notes are an integral part of these financial
statements.
-5-
<PAGE>
PRIME EQUIPMENT CORP.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
December 31, 1998
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company was incorporated on December 18, 1998 under
the laws of the state of Nevada. The business purpose of
the Company is to start a chain of equipment rental
services.
The Company will adopt accounting policies and procedures
based upon the nature of future transactions.
NOTE B SUBSEQUENT EVENTS
In March of 1999, the Company completed the sale of
100,000 shares of its common stock at $.10 per share or
$10,000.
On October 28th, 1999, the Company changed its name from
"Prime Equipment Corp." to "Prime Equipment, Inc." and
increased its authorized capital stock to 74,000,000
shares of $.001 per share par value from 50,000,000
shares of $.001 per share par value. Of the 74,000,000
authorized shares, 50,000,000 are common stock and
24,000,000 are preferred shares.
On October 29, 1999, the Company approved a twenty to one
stock split. Prior to the stock split there were 200,000
shares of common stock outstanding and after the stock
split there were 4,000,000 shares of common stock
outstanding.
NOTE C EARNINGS (LOSS) PER SHARE
Basic EPS is determined using net income divided by the
weighted average shares outstanding during the period.
Diluted EPS is computed by dividing net income by the
weighted shares outstanding, assuming all dilutive
potential common shares were issued. Since the Company
has no common shares that are potentially issuable, such
as stock options, convertible securities or warrants,
basic and diluted EPS are the same.
-6-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
MARCH 31, 2000, AND MARCH 31, 1999
<PAGE>
TABLE OF CONTENTS
Page Number
INDEPENDENT ACCOUNTANT'S REPORT............ 1
FINANCIAL STATEMENT:
Balance Sheets......................................................... 2
Statement of Operations and Deficit
Accumulated During the Development Stage......... 3
Statement of Changes in Stockholders' Equity......... 4
Statements of Cash Flows........................................ 5
Notes to the Financial Statements............................ 6
<PAGE>
INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors and Stockholders
of Prime Equipment, Inc.
Las Vegas, Nevada
I have audited the accompanying balance sheets of Prime
Equipment, Inc. (a development stage company) as of March 31,
2000, and March 31, 1999 and the related statements of
operations, cash flows and changes in stockholders' equity for
the period from December 18, 1998 (date of inception) to March
31, 2000. These statements are the responsibility of Prime
Equipment, Inc.'s management. My responsibility is to express an
opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. I believe that my
audit provides a reasonable basis for my opinion.
In my opinion, the accompanying financial statements
present fairly, in all material respects, the financial position
of Prime Equipment, Inc. as of March 31, 2000, and March 31,
1999, and the results of operations, cash flows and changes in
stockholders' equity for the periods then ended, as well as the
cumulative period from December 18, 1998. in conformity with
generally accepted accounting principles.
/s/ DAVID COFFEY
David Coffey C.P.A.
Las Vegas, Nevada
June 15, 2000
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, March 31,
2000 1999
---------- ----------
<S> <C> <C>
ASSETS
Cash $ 4,041 $ 71
Notes receivable 10,000 10,000
Interest receivable 817 15
---------- ----------
Total Assets $ 14,858 $ 10,086
======= =======
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable $ 13,800 $ 400
---------- ----------
Total Liabilities 13,800 400
Stockholders' Equity
Common stock, authorized 50,000,000 shares at $.001
par value, issued and outstanding 4,021,000 shares
and 200,000 shares, respectively, after giving effect
to a 20:1 stock split effective October 22, 1999 4,021 200
Preferred stock, authorized 24,000,000 shares at $.001
par value, issued and outstanding 0 shares 0 0
Additional paid-in capital 21,329 9,900
Deficit accumulated during the development stage (24,292) (414)
---------- ----------
Total Stockholders' Equity 1,058 9,686
Total Liabilities and Stockholders' Equity $ 14,858 $ 10,086
======= ========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-2-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
(With Cumulative Figures From Inception)
<TABLE>
<CAPTION>
From Inception,
Jan. 1, 2000, to Jan. 1, 1999, to Dec. 18, 1998, to
Mar. 31, 2000 Mar. 31, 1999 Mar. 31, 2000
----------------- ----------------- -----------------
<S> <C> <C> <C>
Income $ 200 $ 15 $ 817
Expenses
Organizational expense 0 0 400
Consulting 0 0 23,650
Office expenses 0 29 59
Professional fees 0 0 1,000
----------------- ----------------- -----------------
Total expenses 0 29 25,109
Net income (loss) 200 (14) $ (24,292)
==================================
Retained earnings,
beginning of period (24,492) (400)
----------------- ----------------- -----------------
Deficit accumulated during the
development stage $ (24,292) $ (414)
================= =================
Earnings (loss) per share assuming dilution,
after giving effect to a 20 for 1 stock
split effective October 22, 1999
Net loss $ 0.00 $ 0.00 $ (0.01)
============================================
Weighted average
shares outstanding 4,021,000 133,333 3,630,313
============================================
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-3-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM December 18, 1998 (Date of Inception) TO
MARCH 31, 2000
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in
Shares Amount Capital Total
----------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Balance,
December 18, 1998 --- $ --- $ --- $ ---
Issuance of common stock for cash
December, 1998 100,000 100 0 100
Less net loss 0 0 0 (400)
----------- ---------- --------- -----------
Balance, December 31, 1998 100,000 100 0 (300)
Issuance of common stock for cash
March, 1999 100,000 100 9,900 10,000
Stock split 20 for 1
October 22, 1999 3,800,000 3,800 (3,800) 0
Issuance of common stock for cash
November, 1999 1,000 1 999 1,000
Issuance of common stock for cash
December, 1999 20,000 20 19,980 20,000
Less offering costs 0 0 (5,750) (5,750)
Less net loss 0 0 0 (24,092)
----------- ---------- --------- -----------
Balance, December 31, 1999 4,021,000 4,021 21,329 858
Net income (loss) 0 0 0 200
----------- ---------- --------- -----------
Balance, March 31, 2000 4,021,000 $ 4,021 $ 21,329 $ 1,058
========= ======== ======= =========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-4-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(With Cumulative Figures From Inception)
<TABLE>
<CAPTION>
From Inception,
Jan. 1, 2000, to Jan. 1, 1999, to Dec. 18, 1998, to
Mar. 31, 2000 Mar. 31, 1999 Mar. 31, 2000
----------------- ----------------- -----------------
<S> <C> <C> <C>
CASH FLOWS PROVIDED BY
OPERATING ACTIVITIES
Net loss $ 200 $ (14) $ (24,292)
Non-cash items included in net loss 0 0 0
Adjustments to reconcile net loss to
cash used by operating activity
Note receivable (10,000) (10,000)
Interest receivable (200) (15) (817)
Accounts payable (16,000) 0 13,800
----------------- ----------------- -----------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES (16,000) (10,029) (21,309)
CASH FLOWS USED BY
INVESTING ACTIVITIES 0 0 0
----------------- ----------------- -----------------
NET CASH USED BY
INVESTING ACTIVITIES 0 0 0
CASH FLOWS FROM FINANCING
ACTIVITIES
Sale of common stock 0 100 4,021
Paid-in capital 0 9,900 27,079
Less offering costs 0 0 (5,750)
----------------- ----------------- -----------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 0 10,000 25,350
----------------- ----------------- -----------------
NET INCREASE IN CASH (16,000) (29) $ 4,041
=================
CASH AT BEGINNING OF
PERIOD 20,041 100
----------------- -----------------
CASH AT END OF
PERIOD $ 4,041 $ 71
==================================
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-5-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2000, AND MARCH 31, 1999
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company was incorporated on December 18, 1998, under
the laws of the state of Nevada. The business purpose of
the Company is to start a chain of equipment rental
services.
The Company will adopt accounting policies and procedures
based upon the nature of future transactions.
NOTE B SALE OF COMMON STOCK
In March of 1999, the Company completed the sale of
100,000 shares of its common stock at $.10 per share or
$10,000, 1000 shares of its common stock at $1.00 per
share in November of 1999 and 20,000 shares of the common
stock at $1.00 in December of 1999.
NOTE C NAME CHANGE AND INCREASE IN AUTHORIZED CAPITAL
On October 28, 1999, the Company changed its name from
"Prime Equipment Corp." to "Prime Equipment, Inc." and
increased its authorized capital stock to 74,000,000
shares of $.001 per share par value from 50,000,000
shares of $.001 per share par value. Of the 74,000,000
authorized shares, 50,000,000 are common stock and
24,000,000 are preferred stock.
NOTE D STOCK SPLIT
On October 22, 1999, the Company approved a twenty to one
stock split. Prior to the stock split there were 200,000
shares of common stock outstanding and after the stock
split there were 4,000,000 shares of common stock
outstanding.
NOTE E EARNING (LOSS) PER SHARE
Basic EPS is determined using net income divided by the
weighted average shares outstanding during the period.
Diluted EPS is computed by dividing net income by the
weighted average shares outstanding, assuming all
dilutive potential common shares were issued. Since the
Company has no common shares that are potentially
issuable, such as stock options, convertible securities
or warrants, basic and diluted EPS are the same.
-6-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
JUNE 30, 2000, AND JUNE 30, 1999
<PAGE>
TABLE OF CONTENTS
Page Number
INDEPENDENT ACCOUNTANT'S REPORT.......... 1
FINANCIAL STATEMENT:
Balance Sheets......................................................... 2
Statement of Operations and Deficit
Accumulated During the Development Stage......... 3
Statement of Changes in Stockholders' Equity...... 4
Statements of Cash Flows...................................... 5
Notes to the Financial Statements.......................... 6-7
<PAGE>
INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors and Stockholders
of Prime Equipment, Inc.
Las Vegas, Nevada
I have audited the accompanying balance sheets of Prime
Equipment, Inc. (a development stage company) as of June 30,
2000, and June 30, 1999 and the related statements of
operations, cash flows and changes in stockholders' equity for
the period from December 18, 1998 (date of inception) to June 30,
2000. These financial statements are the responsibility of
Prime Equipment, Inc.'s management. My responsibility is to
express an opinion on these financial statements based on my
audit.
I conducted my audit in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. I believe that my
audit provides a reasonable basis for my opinion.
In my opinion, the accompanying financial statements
present fairly, in all material respects, the financial position
of Prime Equipment, Inc. as of June 30, 2000, and June 30, 1999,
and the results of operations, cash flows and changes in
stockholders' equity for the periods then ended as well as the
cumulative period from December 18, 1998. in conformity with
generally accepted accounting principles.
/s/ DAVID COFFEY
David Coffey C.P.A.
Las Vegas, Nevada
July 20, 2000
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, June 30,
2000 1999
---------- ----------
<S> <C> <C>
ASSETS
Cash $ 4,041 $ 41
Notes receivable 10,000 10,000
Interest receivable 1,017 215
---------- ----------
Total Assets $ 15,058 $10,256
========== ==========
LIABILITIES & STOCKHOLDERS'
EQUITY
Accounts payable $ 13,800 $ 400
Note payable 25,000 0
Interest payable 48 0
---------- ----------
Total Liabilities 38,848 400
Stockholders' Equity
Common stock, authorized 50,000,000 shares at $.001
par value, issued and outstanding 4,021,000 shares
and 200,000 shares, respectively, after giving
effect to a 20:1 stock split effective
October 22, 1999 4,021 200
Preferred stock, authorized 24,000,000 shares at $.001
par value, none issued or outstanding 0 0
Additional paid-in capital 21,329 9,900
Deficit accumulated during the development
stage (49,140) (244)
---------- ----------
Total Stockholders' Equity (23,790) 9,856
Total Liabilities and
Stockholders' Equity $ 15,058 $ 10,256
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-2-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
(With Cumulative Figures From Inception)
<TABLE>
<CAPTION>
From Inception,
Jan. 1, 2000, to Jan. 1, 1999, to Dec. 18, 1998, to
June 30, 2000 June 30, 1999 June 30, 2000
----------------- ----------------- -----------------
<S> <C> <C> <C>
Interest $ 400 $ 215 $ 1,017
Expenses
Organizational expense 0 0 400
Consulting 25,000 0 48,650
Office expenses 0 59 59
Professional fees 0 0 1,000
Interest expense 48 0 48
----------------- ----------------- -----------------
Total expenses 25,048 59 50,157
Net income (loss) (24,648) 156 $ (49,140)
=================
Retained earnings,
beginning of period (24,492) (400)
----------------- -----------------
Deficit accumulated during the
development stage $ (49,140) $ (244)
========== ==========
Earnings (loss) per share assuming dilution,
after giving effect to a 20 for 1 stock
split effective October 22, 1999
Net loss $ (0.01) $ 0.00 $ (0.01)
========== ========== ==========
Weighted average
shares outstanding 4,021,000 166,667 3,692,000
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-3-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM December 18, 1998 (Date of Inception) TO
JUNE 30, 2000
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in
Shares Amount Capital Total
----------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Balance, December 18, 1998 --- $ --- $ --- $ ---
Issuance of common stock for cash
December, 1998 100,000 100 0 100
Less net loss 0 0 0 (400)
----------- ---------- --------- -----------
Balance, December 31, 1998 100,000 100 0 (300)
Issuance of common stock for cash
March, 1999 100,000 100 9,900 10,000
Stock split 20 for 1 October 22, 1999 3,800,000 3,800 (3,800) 0
Issuance of common stock for cash
November, 1999 1,000 1 999 1,000
Issuance of common stock for cash
December, 1999 20,000 20 19,980 20,000
Less offering costs 0 0 (5,750) (5,750)
Less net loss 0 0 0 (24,092)
----------- ---------- --------- -----------
Balance, December 31, 1999 4,021,000 4,021 21,329 858
Net income (loss) 0 0 0 (24,648)
----------- ---------- --------- -----------
Balance, June 30, 2000 4,021,000 $ 4,021 $21,329 $ (23,790)
======= ======= ===== ========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-4-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(With Cumulative Figures From Inception)
<TABLE>
<CAPTION>
From Inception,
Jan. 1, 2000, to Jan. 1, 1999, to Dec. 18, 1998, to
June 30, 2000 June 30, 1999 June 30, 2000
----------------- ----------------- -----------------
<S> <C> <C> <C>
CASH FLOWS PROVIDED BY
OPERATING ACTIVITIES
Net income or (loss) $ (24,648) $ 156 $ (49,140)
Non-cash items included in net loss 0 0 0
Adjustments to reconcile net loss to cash used
by operating activity
Note receivable (10,000) (10,000)
Interest receivable (400) (215) (1,017)
Accounts payable (16,000) 0 13,800
----------------- ----------------- -----------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES (41,048) (10,059) (46,357)
CASH FLOWS USED BY
INVESTING ACTIVITIES 0 0 0
----------------- ----------------- -----------------
NET CASH USED BY
INVESTING ACTIVITIES 0 0 0
CASH FLOWS FROM FINANCING
ACTIVITIES
Note payable 25,000 0 25,000
Interest payable 48 0 48
Sale of common stock 0 100 4,021
Paid-in capital 0 9,900 27,079
Less offering costs 0 0 (5,750)
----------------- ----------------- -----------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 25,048 10,000 50,398
----------------- ----------------- -----------------
NET INCREASE IN CASH (16,000) (59) $ 4,041
===============================
CASH AT BEGINNING
OF PERIOD 20,041 100
----------------- -----------------
CASH AT END OF
PERIOD $ 4,041 $ 41
========== ==========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
-5-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2000, AND JUNE 30, 1999
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company was incorporated on December 18, 1998, under
the laws of the state of Nevada. The business purpose of
the Company is to start a chain of equipment rental
services.
The Company will adopt accounting policies and procedures
based upon the nature of future transactions.
NOTE B SALE OF COMMON STOCK
In March of 1999, the Company completed the sale of
100,000 shares of its common stock at $.10 per share or
$10,000, 1000 shares of its common stock at $1.00 per
share in November of 1999 and 20,000 shares of the common
stock at $1.00 in December of 1999.
NOTE C NAME CHANGE AND INCREASE IN AUTHORIZED CAPITAL
On October 28, 1999, the Company changed its name from
"Prime Equipment Corp." to "Prime Equipment, Inc." and
increased its authorized capital stock to 74,000,000
shares of $.001 per share par value from 50,000,000
shares of $.001 per share par value. Of the 74,000,000
authorized shares, 50,000,000 are common stock and
24,000,000 are preferred stock.
NOTE D STOCK SPLIT
On October 22, 1999, the Company approved a twenty to one
stock split. Prior to the stock split there were 200,000
shares of common stock outstanding and after the stock
split there were 4,000,000 shares of common stock
outstanding.
NOTE E EARNING (LOSS) PER SHARE
Basic EPS is determined using net income divided by the
weighted average shares outstanding during the period.
Diluted EPS is computed by dividing net income by the
weighted average shares outstanding, assuming all
dilutive potential common shares were issued. Since the
Company has no common shares that are potentially
issuable, such as stock options, convertible securities
or warrants, basic and diluted EPS are the same.
-6-
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2000, AND JUNE 30, 1999
(continued)
NOTE F NOTE PAYABLE
On May 23, 2000, the Company received $25,000 cash
disbursement on a Note maturing April 30, 2001 with
simple annual interest at the rate of 10% per annum. The
Note is unsecured. The proceeds were to be used to start
a chain of equipment rental services.
NOTE G SUBSEQUENT EVENTS
On July 20, 2000, the Board of Directors approved a
resolution to increase the authorized number of common
shares from 50,000,000 to 500,000,000 and increase the
number of preferred shares from 24,000,000 to
100,000,000. This resolution is subject to approval by
the shareholders.
-7-
<PAGE>
UNAUDITED FINANCIAL STATEMENTS
PRIME EQUIPMENT, INC.
<PAGE> 48
( A DEVELOPMENT STAGE COMPANY )
SEPTEMBER 30, 2000, AND SEPTEMBER 30, 1999
<PAGE>
TABLE OF CONTENTS
Page Number
INDEPENDENT ACCOUNTANT'S REPORT .. . .. ... 1
FINANCIAL STATEMENT
Balance Sheets . . .. ... ... ... 2
Statements of Operations and Deficit
Accumulated During the Development Stage .... . 3
Statement of Changes in Stockholders' Equity .. 4
Statements of Cash Flows .. ... 5
Notes to the Financial Statements ..... 6-7
<PAGE>
INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors and Stockholders
of Prime Equipment, Inc.
Las Vegas, Nevada
I have reviewed the accompanying balance sheets of Prime Equipment,
Inc. (a development stage company) as of September 30, 2000, and
September 30, 1999, and the related statements of operations, cash flows,
and changes in stockholders' equity for the three and nine month periods
then ended, as well as the period from December 18, 1998 (date of inception)
to September 30, 2000. These statements are the responsibility of
Prime Equipment, Inc.'s management.
I conducted my review in accordance with standards established by
the American Institute of Certified Public Accountants. A review of interim
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted 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, no such opinion is expressed.
Based on my review, I am not aware of any material modifications that
should be made to the accompanying financial statements for them to be in
conformity with generally accepted accounting principles established by the
American Institute of Certified Public Accountants.
David Coffey, C. P. A.
Las Vegas, Nevada
November 15, 2000
<PAGE>
<PAGE>
PRIME EQUIPMENT, INC.
( A DEVELOPMENT STAGE COMPANY )
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, September 30,
2000 1999
------------------ ------------------
<S> <C> <C>
ASSETS
Cash $ 3,604 $ 41
Notes receivable 10,000 10,000
Interest receivable 1,217 417
------------------ ------------------
Total Assets $ 14,821 $ 10,458
=========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable $ 17,118 $ 800
Note payable 25,000 0
Interest payable 673 0
Loans from stockholders 1,500 0
------------------ ------------------
Total Liabilities 44,291 800
Stockholders' Equity
Common stock, authorized 500,000,000
shares at $.001 par value, issued and
outstanding 4,021,000 shares and
200,000 shares, respectively, after
giving effect to a 20:1 stock split effective
October 22, 1999 4,021 200
Preferred stock, authorized 100,000,000
shares at $.001 par value, none issued
or outstanding 0 0
Additional paid-in capital 21,329 9,900
Deficit accumulated during the
development stage (54,820) (442)
------------------ ------------------
Total Stockholders' Equity (29,470) 9,658
Total Liabilities and Stockholders' Equity $ 14,821 $ 10,458
=========== ===========
The accompanying notes are an integral part of
these financial statements.
</TABLE>
- 2 -
<PAGE>
<PAGE>
PRIME EQUIPMENT, INC.
( A DEVELOPMENT STAGE COMPANY )
STATEMENTS OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
(With Cumulative Figures From Inception)
<TABLE>
<CAPTION>
Three months ended Sept. 30, Nine months ended Sept. 30, From Inception,
----------------------------------- ---------------------------------- Dec. 18, 1998, to
2000 1999 2000 1999 Sept. 30, 2000
---------------- ---------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
Income $ 200 $ 202 $ 600 $ 417 $ 1,217
Expenses
Organizational expense 0 0 0 0 400
Consulting 0 400 25,000 400 48,650
Office expenses 0 0 0 59 59
Fees 437 0 437 0 437
Professional fees 4,818 0 4,818 0 5,818
Interest expense 625 0 673 0 673
---------------- ---------------- --------------- --------------- ----------------
Total expenses 5,880 400 30,928 459 56,037
Net income (loss) (5,680) (198) (30,328) (42) $ (54,820)
=========
Retained earnings,
beginning of period (49,140) (244) (24,492) (400)
---------------- ---------------- --------------- --------------- ----------------
Deficit accumulated during the development
stage $ (54,820) $ (442) $ (54,820) $ (442)
========= ========= ========= =========
Earnings ( loss ) per share
assuming dilution, after giving
effect to a 20 for 1 stock split
effective October 22, 1999
Net loss $ 0.00 $ 0.00 $ (0.01) $ 0.00 $ (0.01)
========= ========= ========= ========= =======
Weighted average shares
outstanding 4,021,000 4,021,000 4,021,000 166,667 3,736,864
========= ========= ========= ========= =======
</TABLE>
The accompanying notes are an integral part of
these financial statements.
- 3 -
<PAGE>
<PAGE>
PRIME EQUIPMENT, INC.
( A DEVELOPMENT STAGE COMPANY )
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM DECEMBER 18, 1998, ( Date of Inception ) TO
SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Common Stock Additional Total
Shares Amount Paid-in
Capital
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
$ $ $
Balance, December 18, 1998 ---- ---- ---- ----
Issuance of common stock for cash
December, 1998 100,000 100 0 100
Less net loss 0 0 0 (400)
-------------- -------------- -------------- --------------
Balance, December 31, 1998 100,000 100 0 (300)
Issuance of common stock for cash
March, 1999 100,000 100 9,900 10,000
Stock split 20 for 1
October 22, 1999 3,800,000 3,800 (3,800) 0
Issuance of common stock for cash
November, 1999 1,000 1 999 1,000
Issuance of common stock for cash
December, 1999 20,000 20 19,980 20,000
Less offering costs 0 0 (5,750) (5,750)
Less net loss 0 0 0 (24,092)
-------------- -------------- -------------- --------------
Balance, December 31, 1999 4,021,000 4,021 21,329 858
Net income (loss) 0 0 0 (30,328)
-------------- -------------- -------------- --------------
Balance, September 30, 2000 4,021,000 $ 4,021 $ 21,329 $ (29,470)
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of
these financial statements
- 4 -
<PAGE>
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(With Cumulative Figures From Inception )
<TABLE>
<CAPTION>
Three months ended Sept. 30, Nine months ended Sept. 30, From Inception,
----------------------------------- ---------------------------------- Dec. 18, 1998, to
2000 1999 2000 1999 Sept. 30, 2000
---------------- ---------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS PROVIDED BY
OPERATING ACTIVITIES
Net income or (loss) (5,680) (198) $ (30,328) $ (42) $ (54,820)
Non-cash items
included in net loss 0 0 0 0 0
Adjustments to reconcile net loss to
cash used by operating activity
Note receivable 0 0 0 (10,000) (10,000)
Interest receivable (200) (202) (600) (417) (1,217)
Accounts payable 3,318 400 (12,682) 400 17,118
Loans from
stockholders 1,500 0 1,500 1,500
---------------- ---------------- --------------- --------------- ----------------
NET CASH PROVIDED BY
OPERATING
ACTIVITIES (1,062) 0 (42,110) (10,059) (47,419)
CASH FLOWS USED BY
INVESTING
ACTIVITIES 0 0 0 0 0
---------------- ---------------- --------------- --------------- ----------------
NET CASH USED BY
INVESTING
ACTIVITIES 0 0 0 0 0
CASH FLOWS FROM FINANCING
ACTIVITIES
Note payable 0 0 25,000 0 25,000
Interest payable 625 0 673 0 673
Sale of common stock 0 0 0 100 4,021
Paid-in capital 0 0 0 9,900 27,079
Less offering costs 0 0 0 0 (5,750)
---------------- ---------------- --------------- --------------- ----------------
NET CASH PROVIDED BY
FINANCING
ACTIVITIES 625 0 25,673 10,000 51,023
---------------- ---------------- --------------- --------------- ----------------
NET INCREASE
IN CASH (437) 0 (16,437) (59) $ 3,604
===========
CASH AT BEGINNING
OF PERIOD 4,041 41 20,041 100
---------------- ---------------- --------------- ---------------
CASH AT END OF
PERIOD 3,604 41 $ 3,604 $ 41
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- 5 -
<PAGE>
<PAGE>
PRIME EQUIPMENT, INC.
(A DEVELOPMENT STAGE COMPANY )
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2000, AND SEPTEMBER 30, 1999
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company was incorporated on December 18, 1998, under
the laws of the State of Nevada. The business purpose of
the Company is to start a chain of equipment rental services.
The Company will adopt accounting policies and procedures
based upon the nature of future transactions.
NOTE B SALE OF COMMON STOCK
In March of 1999, the Company completed the sale of 100,000
shares of its common stock at $.10 per share or $10,000,
1000 shares of its common stock at $1.00 per share in
November of 1999 and 20,000 shares of its common stock at
$1.00 in December of 1999.
NOTE C NAME CHANGE AND INCREASE IN AUTHORIZED CAPITAL
On October 28, 1999, the Company changed its name from
"Prime Equipment Corp." to "Prime Equipment, Inc." and
increased its authorized capital stock to 74,000,000 shares
of $.001 per share par value from 50,000,000 shares of $.001
per share par value. Of the 74,000,000 authorized shares,
50,000,000 are common stock and 24,000,000 are preferred stock.
On July 20, 2000, the Board of Directors approved a resolution to
increase the authorized number of common shares from 50,000,000
to 500,000,000 and increase the number of preferred shares from
24,000,000 to 100,000,000.
NOTE D STOCK SPLIT
On October 22, 1999, the Company approved a twenty to one
stock split. Prior to the stock split there were 200,000 shares
of common stock outstanding and after the stock split there were
4,000,000 shares of common stock outstanding.
NOTE E EARNINGS (LOSS) PER SHARE
Basic EPS is determined using net income divided by the
weighted average shares outstanding during the period.
- 6 -
<PAGE>
PRIME EQUIPMENT, INC.
( A DEVELOPMENT STAGE COMPANY )
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2000, AND SEPTEMBER 30, 1999
(continued)
NOTE E EARNINGS (LOSS) PER SHARE (continued)
Diluted EPS is computed by dividing net income by the
weighted average shares outstanding, assuming all dilutive
potential common shares were issued. Since the Company
has no common shares that are potentially issuable, such as
stock options, convertible securities or warrants, basic and
diluted EPS are the same.
NOTE F NOTE PAYABLE
On May 23, 2000, the Company received $25,000 cash disbursement
on a Note maturing April 30, 2001 with simple annual interest at the
rate of 10% per annum. The note is unsecured. The proceeds were to
be used to start a chain of equipment rental services.
- 7 -
<PAGE>
