<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d) of
Securities Exchange Act of 1934
For Period ended September 30, 1999
Commission File Number 0-25521
SHANECY, INC.
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(Exact name of registrant as specified in its charter)
DELAWARE 88-0414076
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(State of Incorporation) (I.R.S. Employer Identification No.)
13640 WHITE ROCK STATION ROAD, POWAY, CA 92064
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(Address of Principal Executive Offices) (Zip Code)
(619) 699-1739
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock at the latest practicable date.
As of September 30, 1999, the registrant had 4,995,000 shares of common stock,
$.001 par value, issued and outstanding.
<PAGE> 2
PART 1 FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
SHANECY, INC.
(a Development Stage Company)
BALANCE SHEETS
UNAUDITED
<TABLE>
<CAPTION>
ASSETS 30-Sep 30-Sep
1999 1998
<S> <C> <C>
CURRENT ASSETS
CASH 32 3,700
-------------------------
TOTAL CURRENT ASSETS 32 3,700
FIXED ASSETS
-------------------------
NET FIXED ASSETS 0 0
OTHER ASSETS
ORGANIZATION COSTS 0 0
LESS AMORTIZATION 0 0
-------------------------
TOTAL OTHER ASSETS 0 0
-------------------------
TOTAL ASSETS 32 3,700
=========================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
-------------------------
TOTAL CURRENT LIABILITIES 0 0
LONG TERM LIABILITIES
-------------------------
TOTAL LONG TERM LIABILITIES 0 0
-------------------------
TOTAL LIABILITIES 0 0
STOCKHOLDERS' EQUITY
COMMON STOCK - $.001 par value 4,995 107
20,000,000 shares authorized, 4,995,000 issued
and outstanding
ADDITIONAL PAID IN CAPITAL -1,095 3,793
BEGINNING RETAINED EARNINGS -3,778 -200
NET LOSS -90 0
-------------------------
ENDING RETAINED DEFICIT -3,868 -200
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TOTAL STOCKHOLDERS' EQUITY 32 3,700
-------------------------
TOTAL LIAB & STOCKHOLDERS' EQUITY 32 3,700
=========================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 3
FINANCIAL STATEMENTS (continued)
SHANECY, INC.
STATEMENTS OF OPERATIONS
(a Development Stage Company)
For The Six Months Ended
UNAUDITED
<TABLE>
<CAPTION>
30-Sep 30-Sep
1999 1998
<S> <C> <C>
REVENUE
------------------------------
TOTAL REVENUE 0 0
DIRECT COSTS
------------------------------
TOTAL COST OF GOODS SOLD 0 0
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GROSS PROFIT 0 0
OPERATING EXPENSES
GENERAL, SELLING & ADMINISTRATIVE 90 0
LICENSES AND FEES 0 0
ACCOUNTING & AUDIT FEES 0 0
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TOTAL OPERATING EXPENSES 90 0
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LOSS FROM OPERATIONS -90 0
OTHER INCOME & EXPENSE
------------------------------
TOTAL OTHER INCOME & EXPENSE 0 0
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LOSS BEFORE TAXES -90 0
------------------------------
NET LOSS -90 0
==============================
NET LOSS PER SHARE NIL NIL
WEIGHTED AVERAGE NUMBER OF COMMON 4,995,000 10,665,000
SHARES OUTSTANDING
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 4
FINANCIAL STATEMENTS (continued)
SHANECY, INC.
(a Development Stage Company)
For the Six Months Ended
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Sept 30 Sept 30
1999 1998
-------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME (LOSS) -90 0
ADJ TO RECONCILE NET INCOME (LOSS) TO NET
CASH USED IN OPERATING ACTIVITIES:
AMORTIZATION 0 0
CHANGES IN ASSETS AND
LIABILITIES 0 0
-------------------------
NET CASH FLOWS FROM OPERATING ACTIVITIES -90 0
CASH FLOWS FROM INVESTING ACTIVITIES:
ORGANIZATION COSTS 0 0
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NET CASH FLOWS FROM INVESTING ACTIVITIES 0 0
CASH FLOWS FROM FINANCING ACTIVITIES:
ISSUANCE OF COMMON
STOCK FOR CASH 0 0
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NET CASH FLOWS FROM FINANCING ACTIVITIES 0 0
NET INCREASE (DECREASE) IN CASH -90 0
CASH AT BEGINNING OF PERIOD 122 3,700
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CASH AT END OF PERIOD 32 3,700
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 5
NOTES TO FINANCIAL STATEMENTS
1. Management's Opinion
In the opinion of management, the accompanying financial statements contain all
adjustments necessary to present fairly the financial position of the company as
of September 30, 1999 and 1998, and the results of operations for the six months
ended September 30, 1999 and 1998, and the changes in cash for the six months
ended September 30, 1999 and 1998.
2. Interim Reporting
The results of operations for the six months ended September 30, 1999 and 1998
are not necessarily indicative of the results to be expected for the remainder
of the year.
3. Organization and Summary of Significant Accounting Policies:
Organization and Nature of Operations
The Company was incorporated in Delaware on May 31, 1994. The Company is a
development stage company and has not conducted any business activities to date.
4. Basis of Accounting
The Company's policy is to use the accrual method of accounting and to prepare
and present financial statements which conform to generally accepted accounting
principles. 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 and
disclosure of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the reporting
periods. Actual results could differ from those estimates.
5. Cash and equivalents
For purpose of the statements of cash flows, all highly liquid investments with
a maturity of three months or less are considered to be cash equivalents. There
were no cash equivalents as of September 30, 1999.
<PAGE> 6
6. Income Taxes
Income taxes are provided for using the liability method of accounting in
accordance with Statement of Financial Accounting Standards No. 109 (SFAS 109),
"Accounting for Income Taxes." A deferred tax asset or liability is recorded for
all temporary differences between financial and tax reporting. Deferred tax
expense (benefit) results from the net change during the year of deferred tax
assets and liabilities.
PART 1 FINANCIAL INFORMATION
ITEM 2 Management's Plan of Operations
The Company's current cash balance is $32, however, Management does not
anticipate incurring any material costs or expenses other than those for
required SEC filings during the next quarter. To date, the Company has sold
$3,700 in equity securities and used approximately $2,300 for professional
services, $880 for licenses and fees, and $488 for office supplies and postage.
Sales of the Company's equity securities have allowed the Company to maintain a
positive cash flow balance.
Management intends to implement a business plan for the Company that includes
raising capital needed to fund its operations through the sale of securities,
completing and testing of all custom software, opening an Internet web site,
purchasing office furniture, equipment, and off-the-shelf software, and leasing
office space. Management anticipates that the funds needed to complete these
steps and pay for operating expenses to be approximately $250,000 to $350,000.
In order to remain a going concern the Company must first utilize private
placement funding in order to implement its business plan and maintain a
positive cash flow. There are considerable risks in the implementation of the
Company's business plan, including insufficient funding from private placement
securities sales, greater than anticipated costs for software and insufficient
revenues from sales. Without sufficient cash flow, the Company would rely on its
existing cash and loans from its officers until such time as the Company could
raise sufficient private placement funds to implement its plans.
There are no current plans for product research and development. There are no
current plans to purchase or sell any significant amount of fixed assets. There
are no current plans to increase the number of employees.
<PAGE> 7
PART II OTHER INFORMATION
ITEM 1 Not applicable.
ITEMS 2-4 Not applicable
ITEM 5 Information required in lieu of Form 8-K: None
ITEM 6 Exhibits and Reports on 8-K:
a) Exhibit # 27.1, "Financial Data Schedule"
b) No reports on Form 8-K were filed during the fiscal
quarter ended September 30, 1999
SIGNATURES
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In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Shanecy, Inc.
Dated: November 1, 1999 /s/ ANN MYERS
-------------------------------------------------
Ann Myers
President and Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
INTERIM FINANCIAL STATEMENTS FOR SECOND QUARTER 1999, 1998 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH SHANECY, INC. 10QSB.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> MAR-31-2000 MAR-31-1999
<PERIOD-START> APR-01-1999 APR-01-1998
<PERIOD-END> SEP-30-1999 SEP-30-1998
<CASH> 32 3,700
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 32 3,700
<PP&E> 0 0
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 32 3,700
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
0 0
0 0
<COMMON> 4,995 107
<OTHER-SE> (1,095) 3,793
<TOTAL-LIABILITY-AND-EQUITY> 32 3,700
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 90 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (90) 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> (90) 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (90) 0
<EPS-BASIC> 0 0
<EPS-DILUTED> 0 0
</TABLE>
