SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended Commission File Number
----------------- ----------------------
March 31, 2000 0-26317
GARNER INVESTMENTS, INC.
---------------------------------------------------------
(Exact name of registrant as specified in its charter)
Wyoming 84-1384961
-------------------------------- -------------------
(State of incorporation) (I.R.S. Employer
Identification No.)
214 South Center Street, Casper, Wyoming, 82601
---------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: None
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 the filing
requirements for at least the past 90 days.
Yes X No
----- ------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
780,000 common shares as of March 31, 2000
<PAGE>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
For the Three-Months Ended March 31, 2000
(Unaudited)
<PAGE>
<TABLE>
<CAPTION>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
Balance Sheet
For the Three-Months Ended March 31, 2000
(Unaudited)
Three-Months Three-Months
Ended Ended
ASSETS: March 31, 2000 March 31, 1999
----------------------------------------------
<S> <C> <C>
Current Assets:
Cash $ 309 $ 524
------------------ ------------------
Total Current Asset 309 524
Total Assets $ 309 $ 524
================== ==================
LIABILITIES & STOCKHOLDERS EQUITY
Stockholders' Equity (Note 3):
50,000,000 shares authorized $.001 par value,
780,000 shares issued and outstanding. 780 780
Additional paid-in capital 1,470 1,470
Deficit accumulated during the
development stage (1,941) (1,726)
------------------ ------------------
Total Liabilities & Stockholders' Equity $ 309 $ 524
================== ==================
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
Statement of Operations
For the Three-Months Ended March 31, 2000
(Unaudited)
Feb. 13, 1997
March 31, March 31, Inception to
2000 1999 March 31, 2000
------------ ------------ ------------------
<S> <C> <C> <C>
Revenue
$ - $ - $ -
Costs and Expenses:
Office Expenses - - 356
Filing Fees - 25 85
Audit Fees - - 1,500
------------ ------------ ------------------
Net Loss $ - ($25) ($1,941)
============ ============ ==================
Per share information:
Weighted average number
of common shares outstanding 780,000 780,000 780,000
------------ ------------ ------------------
Net Loss per common share * * *
============ ============ ==================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
GARNER INVESTMENTS, INC.
Stockholders' Equity
March 31, 2000
(Unaudited)
COMMON STOCKS Additional Retained Total
Paid-In Earnings Stockholder's
Shares Amount Capital (Deficit) Equity
------ ------ --------- --------- -------------
<S> <C> <C> <C> <C> <C>
Issuance of Stocks for Cash 480,000 $ 480 $ 1,020 $ - $ 1,500
Net Deficit 12/31/97 - - - (144) (144)
-------- ----- ------- ------- ---------
Balance December 31, 1997 480,000 480 1,020 (144) 1,356
-------- ----- ------- ------- ---------
Issuance of Stocks for Cash 300,000 300 450 - 750
Net Deficit 12/31/98 - - - (1,557) (1,557)
-------- ----- ------- ------- ---------
Balance December 31, 1998 780,000 780 1,470 (1,701) 549
-------- ----- ------- ------- ---------
Net Deficit 12/31/99 - - - (240) (240)
-------- ----- ------- ------- ---------
Balance December 31, 1999 780,000 780 1,470 (1,941) 309
-------- ----- ------- ------- ---------
Net Deficit 3/31/2000 - - - - -
-------- ----- ------- ------- ---------
Balance March 31, 2000 780,000 $ 780 $ 1,470 $ (1,941) $ 309
======== ===== ======= ======= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<CAPTION>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
Statement of Cash Flows
For the Three-Months Ended March 31 2000
(Unaudited)
Feb. 13, 1997
March 31, March 31, Inception to
2000 1999 Mar. 31, 2000
----------- ----------- ----------------
<S> <C> <C> <C>
Cash Flows from Operating Activities:
Net Loss $ (215) $(1,525) $ (1,941)
Decrease in Investment - 750 750
----------- ----------- ----------------
Net cash provided by operating activities (215) (775) (990)
Cash Flows from Financing Activities:
Proceeds from stock issuance, net of
issuance costs. - 750 750
----------- ----------- ----------------
Net Cash Provided by Financing Activities - 750 750
----------- ----------- ----------------
Net Decrease in Cash and Cash Equivalent (215) (25) (240)
Beginning Cash and Cash Equivalent 524 549 549
----------- ----------- ----------------
Ending Cash and Cash Equivalent $ 309 $ 524 $ 309
=========== =========== ================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash Paid During the Year for:
Interest - - -
Income Taxes - - -
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
March 31, 2000
(Unaudited)
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------
Organization
------------
The Company was incorporated on February 13, 1997, in the State of
Wyoming. The Company is in the development stages and was organized for
the purpose of general investing. The Company's fiscal year end is
December 31. The financial statements are presented on the accrual
basis of accounting.
The accompanying financial statements have been prepared on the going
concern basis, which contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business. The
company's continuation as a going concern is dependent on its ability
to generate sufficient cash flows to meet its obligations on a timely
basis, to raise additional cash as may be required, and ultimately to
attain successful operations. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
Basis of Presentation
---------------------
The company is primarily engaged in general investing. The authorized
capital stock of the corporation is 50,000,000 shares of common stock
at $0.001 par value. There are no preferred stock authorized or issued.
Cash and Cash Equivalent
------------------------
The Company considers all highly-liquid debt instruments, purchased
with an original maturity of three months or less, to be cash
equivalents.
Revenue Recognition
-------------------
Revenue is recognized when earned and expenses are recognized when they
occur.
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 amounts of revenue
and expenses during the reporting period. Actual results could differ
from those estimates.
<PAGE>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
March 31, 2000
(Unaudited)
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
--------------------------------------------------
Net Loss Per Share
------------------
Net loss per share is based on the weighted average number of common
shares and common shares equivalents outstanding during the period.
Note 2 - FEDERAL INCOME TAXES
--------------------
The Company accounts for income taxes under SFAS No. 109, which
requires the asset and liability approach to accounting for income
taxes. Under this approach, deferred income taxes are determined
based upon differences between the financial statement and tax bases of
the Company's assets and liabilities and operating loss carryfowards
using enacted tax rates in effect for the years in which the difference
are expected to reverse. Deferred taxes are recognized if it is more
likely than not that the future tax benefit will be realized.
As of December 31, 1999, the Company has financial reporting net
operating loss carryforwards of approximately $1,941for which the tax
effect has not been recognized for financial reporting purposes. Such
losses expire in 2013 if not utilized earlier.
Note 3 - STOCKHOLDERS' EQUITY
--------------------
During the period, the Company issued 780,000 shares of its $0.001 par
value common stock, to various investors for cash of $2,250.
Note 4 - RELATED PARTY TRANSACTION
-------------------------
The officers and directors of this company are also officers and
directors of other companies.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS FOR THE QUARTER ENDED MARCH 31, 2000 COMPARED TO THE SAME
QUARTER IN 1999
The Company had no revenues in the quarter ended May 31, 2000 or in 1999.
The Company incurred no expenses in the quarter in 2000 and $75 in the quarter
in 1999. The company had no gain or loss in the period in 2000 and a net loss of
($25) in the period in 1999. The loss per share was none in the quarter in 2000
and ($.00) in 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Company has no liquid assets or cash. Its sole capital resources are it
shares of stock with which to make private placements.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
Director Donn Douglass died in January 2000. As of March 31,
2000, a new director has been appointed who is Ronald A.
Shogren.
Ronald A. Shogren, age 57. Mr. Shogren attended Eastern
Montana College. Mr. Shogren is the past Exalted Rule of the
Casper's Elk Lodge 1353. Mr. Shogren has been a licensed gen-
eral contractor from 1976 to present. Mr. Shogren has seven-
teen years experience as an insurance claims adjuster and
presently owns and operates Cowboy State Claims Services. Mr.
Shogren is an officer and director of Shogi, Inc. and Kearney,
Inc. since 1999.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were made for the period for which this report
is filed.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 15, 2000
GARNER INVESTMENTS, INC.
/s/ William A. Erickson
-----------------------------
President
