GARNER INVESTMENTS INC
10QSB, 2001-01-19
NON-OPERATING ESTABLISHMENTS
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                       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.
            ---------------------------------------------------------
             (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 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
                                               --------------     --------------     --------------------

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
                                              -----------------------------
                                              President




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