JUPITER ENTERPRISES, INC.
(A development stage enterprise)
Notes to Unaudited Financial Statements
June 30, 2000
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The accompanying unaudited interim financial statements
include all adjustments which in the opinion of
management are necessary in order to make the
accompanying financial statements not misleading, and are
of a normal recurring nature. However, the accompanying
unaudited financial statements do not include all
of the information and footnotes necessary for a complete
presentation of financial position, results of
operations, cash flows and stockholders' equity in
conformity with generally accepted accounting principles.
Except as disclosed herein, there has been no material
change in the information disclosed in the notes to
the financial statements included in the Company's Form
10-SB as of the year ended March 31, 2000.
Operating results for the three months ended June 30, 2000,
are not necessarily indicative of the results that
can be expected for the year ended March 31, 2001.
Note 1 - Organization and summary of significant
accounting policies:
Following is a summary of the Company's organization and
significant accounting policies:
Organization and nature of business Jupiter Enterprises,
Inc. (the Company) is a Nevada
corporation incorporated on March 12, 1999. It is based
in Vancouver, British Columbia, Canada.
The Company's intent is to become a direct sales
marketing company that markets, distributes and
sells its own brand of natural health products via the
Internet. All of its products will be purchased
from manufacturers or brokers and bear the Herbal
Traditions brand label. The Company's internet
website is currently under construction and will be the
centerpiece of its marketing operation. The
website will display product information, articles about
specific ailments, links to other related
websites, and an on-line forum and bulletin board.
Customers will be able to place their orders via
the internet in a secured e-commerce connection. The
Company expects to market to a global
customer base.
To date, the Company's activities have been limited to its
formation and the raising of equity capital.
In its current development stage, management anticipates
incurring substantial additional losses as
it implements its business plan.
Basis of presentation - The accounting and reporting
policies of the Company conform to generally
accepted accounting principles applicable to development
stage enterprises.
Use of 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 and disclosure
of contingent assets and liabilities at the
date of the financial statements and the reported amount
of revenues and expenses during the
reporting period. Actual results could differ from those
estimates. The Company's periodic filings
with the Securities and Exchange Commission include,
where applicable, disclosures of estimates,
assumptions, uncertainties and concentrations in products
and markets which could affect the
financial statements and future operations of the
Company.
Cash and cash equivalents - For purposes of the
statement of cash flows, the Company considers
all cash in banks, money market funds, and certificates of
deposit with a maturity of less than three
months to be cash equivalents.
JUPITER ENTERPRISES, INC.
(A development stage enterprise)
Notes to Unaudited Financial Statements
June 30, 2000
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Fair value of financial instruments and derivative
financial instruments - The Company has
adopted Statement of Financial Accounting Standards
number 119, Disclosure About Derivative
Financial Instruments and Fair Value of Financial
Instruments. The carrying amounts of cash,
accounts payable, and accrued expenses approximate fair
value because of the short maturity of
these items. These fair value estimates are subjective in
nature and involve uncertainties and matters
of significant judgment, and, therefore, cannot be
determined with precision. Changes in
assumptions could significantly affect these estimates.
The Company does not hold or issue
financial instruments for trading purposes, nor does it
utilize derivative instruments in the
management of its foreign exchange, commodity price or
interest rate market risks.
Federal income taxes - Deferred income taxes are
reported for timing differences between items
of income or expense reported in the financial statements
and those reported for income tax purposes
in accordance with Statement of Financial Accounting
Standards number 109 Accounting for Income
Taxes, which requires the use of the asset/liability
method of accounting for income taxes. Deferred
income taxes and tax benefits are recognized for the
future tax consequences attributable to
differences between the financial statement carrying
amounts of existing assets and liabilities and
their respective tax bases, and for tax loss and credit
carryforwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in
which those temporary differences are expected to be
recovered or settled. The Company provides
deferred taxes for the estimated future tax effects
attributable to temporary differences and
carryforwards when realization is more likely than not.
Net income per share of common stock - The Company
has adopted FASB Statement Number
128, Earnings per Share, which requires presentation of
basic and diluted EPS on the face of the
income statement for all entities with complex capital
structures and requires a reconciliation of the
numerator and denominator of the basic EPS
computation to the numerator and denominator of the
diluted EPS computation. In the accompanying financial
statements, basic earnings per share of
common stock is computed by dividing net income by
the weighted average number of shares of
common stock outstanding during the period. The
Company did not have a complex capital
structure requiring the computation of diluted earnings
per share.
Note 2 - Capital stock:
Since its inception, the Company has issued shares of its
common stock as follows:
Price Per
Date Description Shares Share Amount
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3/30/99 Shares issued for cash 2,000,000 $0.005 $10,000
5/27/99 Shares issued for cash 840,000 0.030 25,200
6/20/00 Shares issued for cash 202,000 0.030 6,060
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Cumulative total 3,042,000 $41,260
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<PAGE>
JUPITER ENTERPRISES, INC.
(A development stage enterprise)
Notes to Unaudited Financial Statements
June 30, 2000
-------------------------------------------------------------------------
The Company's articles of incorporation also authorize it to
issue preferred stock in one or more series and
in such amounts as may be determined by the Board of
Directors. At June 30, 2000, no preferred stock series
had been created.
Note 3 - Related party transactions:
The Company paid an officer and a former director of the
company $965 during the quarter ended June 30,
2000 (unaudited), in professional fees for legal services.
Amounts due to directors of the company totaled $213 for
the quarter ended June 30, 2000 (unaudited).
Note 4 - Federal income tax:
The Company follows Statement of Financial Accounting
Standards Number 109 (SFAS 109), Accounting
for Income Taxes. Deferred income taxes reflect the net
effect of (a) temporary difference between carrying
amounts of assets and liabilities for financial purposes and
the amounts used for income tax reporting
purposes, and (b) net operating loss carryforwards. No net
provision for refundable Federal income tax has
been made in the accompanying statement of loss because
no recoverable taxes were paid previously.
Similarly, no deferred tax asset attributable to the net
operating loss carryforward has been recognized, as
it is not deemed likely to be realized.
The provision for refundable Federal income tax consists of
the following:
June 30,
2000
(Unaudited)
------------
Refundable Federal income tax attributable to:
Current operations $(3,300)
Change in deferred tax amounts 3,300
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Net refundable amount -
=========
The cumulative tax effect at the expected rate of 34% of
significant items comprising the Company's net
deferred tax amounts as of June 30, 2000:
June 30,
2000
(Unaudited)
------------
Deferred tax asset attributable to:
Net operating loss carryover $(6,700)
Less, Valuation allowance 6,700
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Net deferred tax asset -
=========
At March 31, 2000, the Company had unused net operating
loss carryovers which may be used to offset
future taxable income and which expire as follows:
Expires: Amount
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March 31, 2014 $ 1,874
March 31, 2015 8,400
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Total net operating loss carryover $10,274
==========
Note 5 - Uncertainty, going concern:
At June 30, 2000, the Company was not currently engaged
in a business and had suffered losses from
development stage activities to date. Although management
is currently attempting to implement its business
plan (see Note 1 above) and is seeking additional sources of
equity or debt financing, there is no assurance
these activities will be successful. Accordingly, the
Company must rely on its officers and directors to
perform essential functions without compensation until a
business operation can be commenced. These
factors raise substantial doubt about the ability of the
Company to continue as a going concern. The financial
statements do not include any adjustments that might result
from the outcome of this uncertainty.
