U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under
the Securities Exchange Act of 1934
For Quarter Ended: September 30, 1999
Commission File Number: 000-26321
LEK INTERNATIONAL, INC.
-----------------------
(Exact name of small business issuer as specified in its charter)
Nevada
(State or other jurisdiction of incorporation or organization)
98-0204105
(IRS Employer Identification No.)
Suite 106, 1460 Pandosy Street
Kelowna, British Columbia, Canada
(Address of principal executive offices)
V14 1P3
(Zip Code)
(250) 868-8445
(Issuer's Telephone Number)
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 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 ____.
The number of shares of the registrant's only class of common stock issued and
outstanding, as of September 30, 1999, was 1,000,000 shares.
<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS.
The unaudited financial statements for the six month period ended
September 30, 1999, are attached hereto.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the
Company's unaudited financial statements and notes thereto included herein. The
Company generated no revenues during the six month period ended September 30,
1999. Management of the Company anticipates that the Company will not generate
any significant revenues until the Company accomplishes its business objective
of merging with a nonaffiliated entity or acquiring assets from the same.
In connection with, and because it desires to take advantage of, the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995, the Company cautions readers regarding certain forward looking statements
in the following discussion and elsewhere in this report and in any other
statement made by, or on the behalf of the Company, whether or not in future
filings with the Securities and Exchange Commission. Forward looking statements
are statements not based on historical information and which relate to future
operations, strategies, financial results or other developments. Forward looking
statements are necessarily based upon estimates and assumptions that are
inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond the Company's control
and many of which, with respect to future business decisions, are subject to
change. These uncertainties and contingencies can affect actual results and
could cause actual results to differ materially from those expressed in any
forward looking statements made by, or on behalf of, the Company. The Company
disclaims any obligation to update forward looking statements.
Plan of Operation
The Company intends to seek to acquire assets or shares of an entity
actively engaged in business, in exchange for its securities. As of the date of
this report, management of the Company has had preliminary discussions with
potential merger or acquisition candidates, but there is no definitive agreement
between the Company and any third party relevant thereto. In the event the
Company does enter into an agreement with such a third party, the Board of
Directors does intend to obtain certain assurances of value of the target entity
assets prior to consummating such a transaction, with further assurances that an
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audited financial statement would be provided within sixty days after closing of
such a transaction. Closing documents relative thereto will include
representations that the value of the assets conveyed to or otherwise so
transferred will not materially differ from the representations included in such
closing documents, or the transaction will be voidable.
The Company has no full time employees. The Company's President and
Secretary have agreed to allocate a portion of their time to the activities of
the Company, without compensation. These officers anticipate that the business
plan of the Company can be implemented by their devoting approximately 20 hours
per month to the business affairs of the Company and, consequently, conflicts of
interest may arise with respect to the limited time commitment by such officers.
Because the Company presently has nominal overhead or other material
financial obligations, management of the Company believes that the Company's
short term cash requirements can be satisfied by management injecting whatever
nominal amounts of cash into the Company to cover these incidental expenses.
There are no assurances whatsoever that any additional cash will be made
available to the Company through any means.
Liquidity and Capital Resources
The Company presently has nominal cash or cash equivalents. Because the
Company is not required to pay rent or salaries to any of its officers or
directors, management believes that the Company has sufficient funds to continue
operations through the foreseeable future.
The Company's securities are currently not liquid. There are no market
makers in the Company's securities and it is not anticipated that any market
will develop in the Company's securities until such time as the Company
successfully implements its business plan of engaging in a business opportunity,
either by merger or acquisition of assets. The Company presently has no liquid
financial resources to offer such a candidate and must rely upon an exchange of
its stock to complete such a merger or acquisition.
Year 2000 Disclosure
Many existing computer programs use only two digits to identify a year
in the date field. These programs were designed and developed without
considering the impact of the upcoming change in the century. If not corrected,
many computer applications could fail or create erroneous results by or at the
Year 2000. As a result, many companies will be required to undertake major
projects to address the Year 2000 issue. Because the Company has nominal assets,
including no personal property such as computers, it is not
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anticipated that the Company will incur any negative impact as a result of this
potential problem. However, it is possible that this issue may have an impact on
the Company after the Company successfully consummates a merger or acquisition.
Management intends to address this potential problem with any prospective merger
or acquisition candidate. There can be no assurances that new management of the
Company will be able to avoid a problem in this regard after a merger or
acquisition is so consummated.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS - NONE
ITEM 2. CHANGES IN SECURITIES - NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES - NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS -
NONE
ITEM 5. OTHER INFORMATION - NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K -
(a) Exhibits
EX-27 Financial Data Schedule
(b) Reports on Form 8-K
None.
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<TABLE>
LEK International, Inc.
(A Development Stage Company)
Unaudited Balance Sheet
- ---------------------------------------------------------------------
<CAPTION>
Unaudited Audited
September March
30, 1999 31, 1999
--------- ---------
<S> <C> <C>
ASSETS $ 0 $ 0
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current Liabilities:
Advances Due to Related Entity $ 17,257 $ 0
--------- ---------
Total Current Liabilities $ 17,257 $ 0
--------- ---------
TOTAL LIABILITIES $ 17,257 $ 0
--------- ---------
SHAREHOLDERS' EQUITY
Common Stock, $.0001 Par Value
Authorized 100,000,000 Shares;
Issued And Outstanding 1,000,000 Shares 100 100
Capital Paid In Excess Of
Par Value Of Common Stock 0 0
Deficit Accumulated During The
Development Stage (17,357) (100)
--------- ---------
TOTAL SHAREHOLDERS' EQUITY (17,257) 0
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 0 $ 0
========= =========
The Accompanying Notes Are An Integral Part Of These
Unaudited Financial Statements.
</TABLE>
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<PAGE>
<TABLE>
LEK International, Inc.
(A Development Stage Company)
Unaudited Statement Of Operations
- ----------------------------------------------------------------------
<CAPTION>
Unaudited
Unaudited Unaudited April
Six Month Six Month 21, 1997
Interim Period Interim Period (Inception)
Ended Ended Through
September September September
30, 1999 30, 1998 30, 1999
------------ ------------ ----------
<S> <C> <C> <C>
Revenue $ 0 $ 0 $ 0
Expenses:
Office 1,689 0 1,789
Legal And Accounting 15,567 0 15,567
------------ ------------ ----------
Total Expenses 17,256 0 17,356
------------ ------------ ----------
Net Income (Loss) $ (17,256) $ 0 $ (17,356)
============ ============ ==========
Basic (Loss) Per
Common Share ($0.02) ($0.00)
============ ============
Weighted Average Common
Shares Outstanding 1,000,000 1,000,000
============ ============
The Accompanying Notes Are An Integral Part Of These
Unaudited Financial Statements.
</TABLE>
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<PAGE>
<TABLE>
LEK International, Inc.
(A Development Stage Company)
Unaudited Statement Of Operations
- ----------------------------------------------------------------------
<CAPTION>
Unaudited Unaudited
Three Month Three Month
Interim Period Interim Period
Ended Ended
September September
30, 1999 30, 1998
------------ ------------
<S> <C> <C>
Revenue $ 0 $ 0
------------ ------------
Expenses:
Legal and Accounting 5,360 0
------------ ------------
Total Expenses 5,360 0
------------ ------------
Net Income (Loss) $ (5,360) $ 0
============ ============
Basic Earnings (Loss)
Per Share $ (0.01) $ 0.00
============ ============
Weighted Average Common Shares
Outstanding 1,000,000 1,000,000
============ ============
The Accompanying Notes Are An Integral Part Of These
Financial Statements.
</TABLE>
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<TABLE>
LEK International, Inc.
(A Development Stage Company)
Unaudited Statement Of Cash Flows
- ----------------------------------------------------------------------
<CAPTION>
Unaudited
Unaudited Unaudited April
Six Month Six Month 21, 1997
Interim Period Interim Period (Inception)
Ended Ended Through
September September September
30, 1999 30, 1998 30, 1999
------------ ------------ ----------
<S> <C> <C> <C>
Net (Loss) $ (17,257) $ 0 $ (17,357)
Adjustments To Reconcile Net
Loss To Net Cash Used in
Operating Activities:
Stock Issued For Services 0 0 100
Expenses Paid by Related
Entity on Behalf of Company 17,257 0 17,257
------------ ------------ ----------
Net Flows Provided
By Operations 0 0 0
------------ ------------ ----------
Cash Flows From
Investing Activities:
Net Cash Flows Provided
By Investing Activities 0 0 0
------------ ------------ ----------
Cash Flows From
Financing Activities:
Issuance of Common Stock 0 0 0
------------ ------------ ----------
Net Cash Flows Provided
By Financing Activities 0 0 0
------------ ------------ ----------
Net Increase In Cash 0 0 0
Cash At Beginning Of Period 0 0 0
------------ ------------ ----------
Cash At End Of Period $ 0 $ 0 $ 0
============ ============ ==========
Summary Of Non-Cash Investing
And Financing Activities:
Stock Issued for Services $ 0 $ 0 $ 100
============ ============ ==========
Expenses Paid by Related
Entity on Behalf of Company $ 17,257 $ 0 $ 17,257
============ ============ ==========
The Accompanying Notes Are An Integral Part Of These
Unaudited Financial Statements.
</TABLE>
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<PAGE>
<TABLE>
LEK International, Inc.
(A Development Stage Company)
Unaudited Statement Of Shareholders' Equity
- ------------------------------------------------------------------------------
<CAPTION>
Deficit
Accumulated
Number Of Additional During The
Common Common Paid-In Development
Shares Stock Capital Stage Total
--------- ------ ------- -------- ---------
<S> <C> <C> <C> <C> <C>
Balance At April 21, 1997 0 $ 0 $ 0 $ 0 $ 0
Issuance Of Common Stock:
April 21, 1997 for Services
Valued at $.0001 Per Share 1,000,000 100 100
Net (Loss) (100) (100)
--------- ------ ------- -------- ---------
Balance At March 31,
1999 and 1999 1,000,000 $ 100 $ 0 $ (100) $ 0
Net (Loss) September 30, 1999 (17,257) (17,257)
--------- ------ ------- -------- ---------
Balance at September 30, 1999 1,000,000 $ 100 $ 0 $(17,357) $ (17,257)
========= ====== ======= ======== =========
The Accompanying Notes Are An Integral Part Of These
Unaudited Financial Statements.
</TABLE>
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<PAGE>
LEK International, Inc.
Notes To Unaudited Financial Statements
For The Six Month Period Ended September 30, 1999
Note 1 - Unaudited Financial Information
The unaudited financial information included for the three month and six month
interim periods ended September 30, 1999 were taken from the books and records
of the Company without audit. However, such information reflects all adjustments
(consisting of normal recurring adjustments, which are of the opinion of
management, necessary to reflect properly the results of interim periods
presented). The results of operations for the six month period ended September
30, 1999 are not necessarily indicative of the results expected for the year
ended March 31, 2000.
Note 2 - Financial Statements
Management has elected to omit substantially all footnotes relating to the
condensed financial statements of the Company included in the report. For a
complete set of footnotes, reference is made to the Company's Report on Form 10
for the year ended March 31, 1999 as filed with the Securities and Exchange
Commission and the audited financial statements included therein.
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<PAGE>
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities and
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
LEK INTERNATIONAL, INC.
(Registrant)
Dated: November 4, 1999
By: s/David Ward
------------------------------------
David Ward, President
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<PAGE>
LEK INTERNATIONAL, INC.
EXHIBIT INDEX TO QUARTERLY REPORT ON FORM 10-QSB
FOR THE QUARTER ENDED SEPTEMBER 30, 1999
EXHIBITS Page No.
EX-27 Financial Data Schedule..............................................13
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999, AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> SEP-30-1999
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 17,257
<BONDS> 0
0
0
<COMMON> 100
<OTHER-SE> (17,357)
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 17,256
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (17,256)
<INCOME-TAX> 0
<INCOME-CONTINUING> (17,256)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (17,256)
<EPS-BASIC> (.02)
<EPS-DILUTED> 0
</TABLE>
