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
----------------- ----------------------
September 30, 2000 0-26317
GARNER INVESTMENTS, INC.
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(Exact name of registrant as specified in its charter)
Wyoming 84-1384961
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(State of incorporation) (I.R.S. Employer
Identification No.)
214 South Center Street, Casper, Wyoming, 82601
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(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 September 30, 2000
<PAGE>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
For February 13, 1997 (Inception Through September 30, 2000
(Unaudited)
<PAGE>
<TABLE>
<CAPTION>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
Balance Sheet
(Unaudited)
<S> <C> <C>
ASSETS: September 30, 2000 December 31, 1999
----------------------------------------------
Current Assets:
Cash $ 309 $ 309
------------------ ------------------
Total Current Asset 309 309
Total Assets $ 309 $ 309
================== ==================
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) (1,941)
------------------ ------------------
Total Liabilities & Stockholders' Equity $ 309 $ 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 Operations
For February 13, 1997 (Inception) Through September 30, 2000
(Unaudited)
<S> <C> <C> <C> <C> <C>
Three Months Ended Nine Months Ended February 13, 1997
September 30, September 30 September 30, September 30, Inception to
2000 1999 2000 1999 September 30, 2000
------------- ------------ --------------- ---------------- ------------------
Revenue
$ - $ - $ - $ - $ -
Costs and Expenses:
Office Expenses - - - 50 356
Filing Fees - - - - 85
Audit Fees - - - - 1,500
----------- ---------- --------------- ---------------- ----------------
Net Loss $ - $ - $ - $ 50 $ 1,941
=========== ========== =============== ================ ================
Per share information:
Weighted average number
of common shares outstanding 780,000 780,000 780,000 780,000 780,000
------------ ---------- --------------- ---------------- ----------------
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
September 30, 2000
(Unaudited)
<S> <C> <C> <C> <C> <C>
COMMON STOCK Additional Retained Total
------------
Paid-In Earnings Stockholder's
Shares Amount Capital (Deficit) Equity
---------- ---------- --------- --------- -----------
Issuance of Stocks for Cash 480,000 $ 480 $ 1,020 $ - $ 1,500
Net Deficit - - - (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 - - - (1,557) (1,557)
---------- ----- --------- --------- -----------
Balance December 31, 1998 780,000 780 1,470 (1,701) 549
---------- ----- --------- --------- -----------
Net Deficit - - - (240) (240)
---------- ----- --------- --------- -----------
Balance December 31, 1999 780,000 780 1,470 (1,941) 309
---------- ----- --------- --------- -----------
Net Deficit - - - - -
---------- ----- --------- --------- -----------
Balance Sept. 30, 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
(Unaudited)
<S> <C> <C> <C>
February 13, 1997
September 30, September 30, Inception to
2000 1999 September 30, 2000
-------------- -------------- --------------------
Cash Flows from Operating Activities:
Net Loss $ - $ (1,640) $ (1,941)
Decrease in Investment - 750 750
-------------- -------------- --------------------
Net cash provided by operating activities - (890) (890)
Cash Flows from Financing Activities:
Proceeds from stock issuance, net of
issuance costs. - 750 750
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Net Cash Provided by Financing Activities - 750 750
-------------- -------------- --------------------
Net Decrease in Cash and Cash Equivalent - (140) (140)
Beginning Cash and Cash Equivalent 309 664 449
-------------- -------------- --------------------
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)
September 30, 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.
Basis of Presentation
Development Stage Company
The Company has not earned significant revenue from planned principal
operations. Accordingly, the Company's activities have been accounted
for as those of a "Development Stage Enterprise" as set forth in
Financial Accounting Standards Board Statement No. 7 ("SFAS 7"). Among
the disclosures required by SFAS 7 are that the Company's financial
statements be identified as those of a development stage company, and
that the statements of operations, stockholders' equity (deficit) and
cash flows disclose activity since the date of the Company's inception.
Cash and Cash Equivalent
The purposes of the cash flows, the Company considered all cash and
other highly liquid investments with initial maturities of three months
or less to be cash equivalents.
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 and disclosures.
Accordingly, actual results could differ from those estimates.
<PAGE>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
September 30, 2000
(Unaudited)
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)
Earnings (Loss) Per Share
Earning (loss) per share is calculated using the basic weighted average
number of common stock outstanding. Net loss per share - diluted is not
presented because the inclusion of common share equivalent would be
anti-dilutive.
Income Taxes
The Company accounts for income taxes in accordance with SFAS No 109,
Accounting for Income Taxes, which requires the use of the liability
method. Under this method, deferred tax assets and liabilities are
measured based on differences between financial reporting and tax bases
of assets and liabilities measured using enacted tax rates and laws
that are expected to be in effect when the differences are expected to
reverse.
Fair Value of Financial Instruments
The carrying amount of cash and cash equivalents are considered to be
representative of their respective fair values because of the short-
term nature of these financial instruments.
<PAGE>
GARNER INVESTMENTS, INC.
(A Development Stage Company)
September 30, 2000
(Unaudited)
Note 2 - FEDERAL INCOME TAXES
There have been no provisions for U.S. Federal, state, or foreign
income taxes any period because the Company has incurred losses in all
periods and for all jurisdictions.
Deferred income taxes reflect the net tax effects of temporary
differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax
purpose. Significant components of deferred tax assets are as follows:
Deferred tax assets
Net operating loss carryforwards $ 1,941
Valuation allowance for deferred tax (1,941)
---------
Net deferred tax assets $ -0-
==========
Realization of deferred tax assets is dependent upon future earnings,
if any, the timing and amount of which are uncertain. Accordingly, the
net deferred tax assets have been fully offset by a valuation
allowance. As of December 31, 1999, the Company had net operating loss
carryforwards of approximately $1,941 for federal income tax purpose.
These carryforwards, if not utilized to offset taxable income begin to
expire in 2012. Utilization of the net operating loss may be subject
to substantial annual limitation due to the ownership change
limitations by the Internal Revenue Code and similar state provisions.
Then annual limitation could result in the expiration of the net
operating loss before utilization.
Note 3 - CAPITAL TRANSACTIONS
The Article of Incorporation authorized 50,000,000 shares of common
stock with a par value of $0.001 per share. 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 NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO
SAME PERIOD IN 1999
The Company had no revenues in the nine month period ended September 30 in
2000 or 1999. The Company incurred no expenses in the nine month period in $2000
as compared to $50 in expenses in the period in 1999. The Company had no profit
or loss in the nine months ended September 30, 2000 compared to a ($50) loss in
the same period in 1999.
RESULTS OF OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 2000 COMPARED TO THE
SAME QUARTER IN 1999
The Company had no revenues in the quarter in 2000 or 1999. The Company
incurred no expenses in the quarter in 2000 or 1999. The Company had no profit
or loss in the quarter in 2000 or 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.
<PAGE>
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
None
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: January 19, 2001
GARNER INVESTMENTS, INC.
/s/ William A. Erickson
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President