UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE 1934
ACT REPORTING REQUIREMENTS
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
Commission File No. 000-31131
KENROY COMMUNICATIONS CORP., INC.
(Exact name of registrant as specified in its charter)
Nevada 88-0421459
(State of organization) (I.R.S. Employer Identification No.)
1350 E. Flamingo Rd., Suite 688, Las Vegas, NV 89119
(Address of principal executive offices)
Registrant's telephone number, including area code 702-521-3331
Check whether the issuer (1) filed all reports required to be
file by Section 13 or 15(d) of the Exchange Act during the past
12 months and (2) has been subject to such filing requirements
for the past 90 days. No X
There are 3,000,000 shares of common stock outstanding as of June
30, 2000.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The Audited financial statements for the period ending June 30,
2000.
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TABLE OF CONTENTS
Page Number
INDEPENDENT ACCOUNTANT'S REPORT .................... 1
FINANCIAL STATEMENT
Balance 2
Sheets..................................
Statements of Operations and Deficit
Accumulated During the Development Stage 3
.......
Statement of Changes in Stockholders' 4
Equity .....
Statements of Cash Flows 5
.....................
Notes to the Financial Statements 6
...............
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INDEPENDENT ACCOUNTANT'S REPORT
To the Board of Directors and Stockholders
of Kenroy Communications Corp.
Las Vegas, Nevada
I have audited the accompanying balance sheets of Kenroy
Communications Corp. (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 31, 1998, (date of inception) to June
30, 2000. These statements are the responsibility of Kenroy
Communications 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
Kenroy Com- munications Corp. 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 31, 1998, in conformity with
generally accepted accounting principles.
David Coffey, C. P. A.
Las Vegas, Nevada
August 11, 2000
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
BALANCE SHEETS
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June 30, 2000 June 30,
1999
ASSETS
Cash $ 41 $ 41
-------- --------
Total Assets $ 41 $ 41
= =
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable $ 3,400 $ 400
-------- --------
Total Liabilities 3,400 400
Stockholders' Equity
Common stock, authorized 50,000,000
shares at $.001 par value, issued and
outstanding 220,000 shares and
200,000 shares, respectively 220 200
Additional paid-in capital 4,630 3,650
Deficit accumulated during the
development stage (8,209) (4,209)
-------- --------
Total Stockholders' Equity (3,359) (359)
Total Liabilities and Stockholders' Equity $ 41 $ 41
</TABLE> = =
The accompanying notes are an integral part of these financial
statements.
- 2 -
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENTS OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
( With Cumulative Figures From Inception )
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From Inception,
Jan. 1, 2000, Jan. 1, 1999, Dec. 31, 1998,
to to to
June 30, 2000 June 30, 1999 June 30, 2000
--------- --------- -----------
Income $ 0 $ 0 0
Expenses
Organizational expense 0 0 400
Office and administrative 0 3,750 3,750
Office expenses 0 59 59
Professional fees 3,000 0 4,000
---------- --------- ---------
Total expenses 3,000 3,809 8,209
Net loss (3,000) (3,809) $ (8,209)
=
Retained earnings,
beginning of period (5,209) (400)
--------- ----------
Deficit accumulated during
the development stage $ (8,209) $ (4,209)
========== ============
Earnings ( loss ) per
share
assuming dilution:
Net loss $ (0.01) $ (0.02) $ (0.04)
========== ========= ==========
Weighted average shares
outstanding 220,000 166,667 228,947
= ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial
statements.
- 3 -
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM DECEMBER 31, 1998, ( Date of Inception ) TO
JUNE 30, 2000
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Common Stock Additional Total
Shares Amount Paid-in
Capital
----- ----- ----- -----
$ $ $
Balance,
December 31, 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
Less offering costs 0 0 (9,250) (9,250)
Issuance of common
stock for cash
September, 1999 15,000 15 2,985 3,000
Issuance of common
stock for cash
November, 1999 5,000 5 995 1,000
Less net loss 0 0 0 (4,809)
------- -------- -------- -------
Balance,
December 31,1999 220,000 220 4,630 (359)
Less net loss 0 0 0 (3,000)
------- -------- -------- -------
Balance,
June 30, 2000 220,000 $ 220 $ 4,630 $ (3,359)
======== ========= ========== =========
</TABLE>
The accompanying notes are an integral part of these financial
statements
- 4 -
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENTS OF CASH FLOWS
( With Cumulative Figures From Inception )
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From Inception,
Jan. 1, 2000, Jan. 1, 1999, Dec. 31, 1998,
to to to
June 30, 2000 June 30, 1999 June 30, 2000
--------- --------- --------
CASH FLOWS PROVIDED BY
OPERATING ACTIVITIES
Net Loss $ (3,000) $ (3,809) $ (8,209)
Non-cash items included in 0 0 0
net loss
Adjustments to reconcile
net loss to
cash used by operating
activity
Accounts payable 3,000 0 3,400
------ ------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 0 (3,809) (4,809)
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 0 100 220
stock
Paid-in capital 0 3,650 13,880
Less offering costs 0 0 (9,250)
------ ------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 0 3,750 4,850
------ ------ --------
NET INCREASE IN CASH 0 (59) $ 41
========
CASH AT BEGINNING OF 41 100
PERIOD
------ ------
CASH AT END OF PERIOD $ 41 $ 41
</TABLE>
The accompanying notes are an integral part of these financial
statements.
- 5 -
KENROY COMMUNICATIONS CORP.
( 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 31, 1998, under the laws
of the State of Nevada. The business purpose of the Company is to
develop computer software for the enhancement of communications.
The Company will adopt accounting policies and procedures based
upon the nature of future transactions.
NOTE B OFFERING COSTS
Offering costs are reported as a reduction in the amount of paid-
in capital received for sale of the shares.
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 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 D STOCK OFFERINGS
In March of 1999, the Company completed the sale of 100,000
shares of its common stock at $.10 per share for $10,000. The
proceeds were to be used for software development and for working
capital.
In September of 1999, the Company sold 15,000 shares of its
common stock at $.20 per share for a total of $3,000. The
proceeds were to be used for working capital.
In November of 1999, the Company sold 5,000 shares of its common
stock at $.20 per share for a total of $1,000. The proceeds were
to be used for working capital.
- 6 -
ITEM 2. MANAGEMENT'S PLAN OF OPERATION
NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS
This statement includes projections of future results and
"forward-looking statements" as that term is defined in Section
27A of the Securities Act of 1933 as amended (the "Securities
Act"), and Section 21E of the Securities Exchange Act of 1934 as
amended (the "Exchange Act"). All statements that are included in
this Registration Statement, other than statements of historical
fact, are forward-looking statements. Although Management
believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Important factors
that could cause actual results to differ materially from the
expectations are disclosed in this Statement, including, without
limitation, those expectations reflected in forward-looking
statements contained in this Statement.
Plan of Operation
The Company's Plan of Operation has not changed since the filing
of its Form 10-SB filed with the SEC on July 24, 2000. The
description of the current plan of operation is incorporated by
reference to Section 2 of its Form 10-SB.
Competition
The Company is an insignificant participant among firms which
engage in business combinations with, or financing of,
development-stage enterprises. There are many established
management and financial consulting companies and venture capital
firms which have significantly greater financial and personal
resources, technical expertise and experience than the Company.
In view of the Company's limited financial resources and
management availability, the Company will continue to be at
significant competitive disadvantage vis-a-vis the Company's
competitors.
Employees
The Company's only employee at the present time is its sole
officer and director, who will devote as much time as the Board
of Directors determine is necessary to carry out the affairs of
the Company.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any material pending legal
proceedings and, to the best of its knowledge, no such action has
been threatened by or against the Company.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
No issues of securities and no changes in the existing securities
took place during the period covered by this report. At the end
of the quarter there were 220,000 shares of common stock issued
and outstanding.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No such matters were submitted during the most
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS
a) The exhibit consisting of the Company's Articles of
Incorporation is attached to the Company's Form 10-SB, filed on
July 24, 2000. This exhibit is incorporated by reference to that
Form.
b) The exhibit consisting of the Company's Bylaws is attached
to the Company's Form 10-SB, filed on July 24, 2000. This exhibit
is incorporated by reference to that Form.
Reports on Form 8-K: None
27 Financial Data Schedule
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities
Exchange Act of 1934, the Registrant has duly caused this
registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized.
Kenroy Communications Corp., Inc.
By: /s/ Ken Royceton
Ken Royceton,
President/Secretary/Treasurer
Date: September 21, 2000
