UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1999 Commission File Number 0-27337
------------------ -------
MAX DEVELOPMENT, INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
COLORADO 84-1474940
- ------------------------------- -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
6025 South Quebec Street, Suite 150, Englewood, Colorado 80111
- -------------------------------------------------------- --------
(Address of principal executive offices) (Zip code)
(720) 489-8873
--------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check 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 such filing
requirements for 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.
Common stock, $.001 par value 2,322,000
Class Number of shares outstanding
at October 13, 1999
- --------------------------------------------------------------------------------
This document is comprised of 9 pages.
<PAGE>
FORM 10-QSB
2ND QUARTER
INDEX
Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements *
Condensed balance sheet, September 30, 1999 (Unaudited)............... 3
Condensed statements of operations, three and nine months
ended September 30, 1999 and 1998 (Unaudited), and
April 23, 1998 (inception) through September 30, 1999 (Unaudited).. 4
Condensed statements of cash flows, three and nine months
ended September 30, 1999 and 1998 (Unaudited), and
April 23, 1998 (inception) through September 30, 1999 (Unaudited).. 5
Notes to condensed financial statements (Unaudited)................... 6
Item 2. Plan of Operation............................................ 7
PART II - OTHER INFORMATION............................................... 7
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures............................................................ 8
* The accompanying financial statements are not covered by an Independent
Certified Public Accountant's report.
2
<PAGE>
Part I Item 1. Financial information
- ------ ----------------------
MAX DEVELOPMENT, INC.
---------------------------
(A Development Stage Company)
Condensed Balance sheet
(Unaudited)
September 30, 1999
ASSETS
CASH ........................................................... $ 35,165
INVESTMENT, less allowance of $15,000 .......................... --
--------
$ 35,165
========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accrued liabilities ......................................... $ 750
--------
TOTAL LIABILITIES 750
--------
SHAREHOLDERS' EQUITY
Preferred stock, $.01 par value, 1,000,000 shares
authorized; -0- shares issued and outstanding ............ --
Common stock, $.001 par value; 10,000,000 shares
authorized; 2,322,000 shares issued and outstanding ...... 2,322
Additional paid-in capital .................................. 75,743
Deficit accumulated during development stage ................ (43,650)
---------
34,415
---------
$ 35,165
=========
See accompanying notes to condensed financial statements
3
<PAGE>
<TABLE>
<CAPTION>
MAX DEVELOPMENT, INC.
---------------------
(A Development Stage Company)
Condensed Statements of Operations
(Unaudited)
April 23, 1998
Three Months Ended Nine Months Ended (Inception)
September 30, September 30, through
--------------------------- -------------------------- Sept. 30,
1999 1998 1999 1998 1999
----------- --------- ----------- -------- -----------
<S> <C> <C> <C> <C> <C>
COSTS AND EXPENSES
Rent .......................................... $ 3,000 $ -- $ 6,000 $ -- $ 6,000
Professional fees ............................. 7,085 -- 14,085 -- 16,585
Stock transfer fees ........................... 175 -- 1,045 -- 1,045
Other ......................................... 370 -- 4,646 -- 5,020
----------- ---------- ----------- --------- -----------
OPERATING LOSS ......... (10,630) -- (25,776) -- (28,650)
NON-OPERATING EXPENSE
Loss on write-down of
investment ............................... -- -- (15,000) -- (15,000)
----------- ---------- ----------- --------- -----------
LOSS BEFORE
INCOME TAXES ......... (10,630) -- (40,776) -- (43,650)
INCOME TAXES (Note C) ......................... -- -- -- -- --
----------- ---------- ----------- --------- -----------
NET LOSS ......... $ (10,630) $ -- $ (40,776) $ -- $ (43,650)
=========== ========== =========== ========= ===========
Basic and diluted loss
per common share ......................... $ * $ * $ (0.02) $ * $ (0.02)
=========== ========== =========== ========= ===========
Basic and diluted weighted
average common shares
outstanding .............................. 2,322,000 -- 2,196,778 -- 2,101,200
=========== ========== =========== ========= ===========
* Less than $.01 per common share
See accompanying notes to condensed financial statements
4
<PAGE>
MAX DEVELOPMENT, INC.
---------------------
(A Development Stage Company)
Condensed Statements of Cash Flows
(Unaudited)
April 23, 1998
Nine Months Ended (Inception)
September 30, through
---------------------- Sept. 30,
1999 1998 1999
-------- ------ ----------------
NET CASE (USED IN)
OPERATING ACTIVITIES .......... (25,335) -- (25,122)
-------- --- --------
INVESTING ACTIVITIES
Purchase of investment ........................................................ (15,000) -- (15,000)
-------- --- --------
NET CASH (USED IN)
INVESTING ACTIVITIES .......... (15,000) -- (15,000)
-------- --- --------
FINANCING ACTIVITIES
Proceeds from sale of common stock ............................................ 80,500 -- 80,500
Payments for offering costs ................................................... (5,000) -- (5,213)
-------- --- --------
NET CASH PROVIDED BY
FINANCING ACTIVITIES .......... 75,500 -- 75,287
-------- --- --------
NET CHANGE IN CASH ............................................................ 35,165 -- 35,165
Cash, beginning of period ..................................................... -- -- --
-------- --- --------
CASH, END OF PERIOD ........................................................... $ 35,165 $-- $ 35,165
======== === ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest ................................................... $ -- $-- $ --
======== === ========
Cash paid for income taxes ............................................... $ -- $-- $ --
======== === ========
See accompanying notes to condensed financial statements
5
</TABLE>
<PAGE>
MAX DEVELOPMENT, INC.
---------------------
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1999
Note A: Basis of presentation
----------------------
The financial statements presented herein have been prepared by the Company in
accordance with the accounting policies in its Form 10-SB dated May 31, 1999 and
should be read in conjunction with the notes thereto.
In the opinion of management, all adjustments (consisting only of normal
recurring adjustments) which are necessary to provide a fair presentation of
operating results for the interim period presented have been made. The results
of operations for the periods presented are not necessarily indicative of the
results to be expected for the year.
Interim financial data presented herein are unaudited.
Note B: Related party transactions
--------------------------
The Company leased office space from an affiliate on a month-to-month basis
during the nine months ended September 30, 1999. Rent expense for the period
totaled $6,000.
During the nine months ended September 30, 1999, an affiliate incurred expenses
on behalf of the Company totaling $137. The Company repaid all $137 prior to
September 30, 1999.
During the nine months ended September 30, 1999, the Company repaid an officer
$40 for expenses paid on behalf of the Company in the prior year.
Note C: Income taxes
------------
The Company records its income taxes in accordance with Statement of Financial
Accounting Standard No. 109, "Accounting for Income Taxes". The Company incurred
net operating losses during the three months and nine months ended September 30,
1999 resulting in a deferred tax asset, which was fully allowed for; therefore,
the net benefit and expense resulted in $-0- income taxes.
6
<PAGE>
Part I. Item 2. Plan of operation
- ------ ------------------
MAX DEVELOPMENT, INC.
---------------------
(A DEVELOPMENT STAGE COMPANY)
PLAN OF OPERATION
- -----------------
The plan of the Company's management, for the next twelve months, is to search
for diamond mining prospects in South Africa to be identified by the Company's
contacts located in South Africa. Additionally, the Company is open to the
evaluation of mining investments located in the United States and has opened its
spectrum of possible investments and/or business combinations to companies that
may be operating outside of the Company's original business plan.
At September 30, 1999 the Company had one employee (its sole officer and
director) and, except for any potential mergers and/or acquisitions, does not
anticipate materially increasing the number of employees in the next twelve
months.
RESULTS OF OPERATIONS
- ---------------------
No income producing operations were conducted during the most recent quarter.
Expenses, since year-end consisted of rent, legal, accounting and audit fees,
transfer agent fees and general and administrative costs.
FINANCIAL CONDITION
- -------------------
There have been no material changes to the Company's financial condition during
the three months ended September 30, 1999. The common stock offering conducted
during the nine months ended September 30, 1999 has funded all development stage
activity.
PART II - OTHER INFORMATION
- ---------------------------
Items 1 through 5 - No response required.
Item 6 - Exhibits and reports on Form 8-K.
(a) Exhibits 27 - Financial Data Schedule.
There were no reports on Form 8-K.
7
<PAGE>
SIGNATURES
The financial information furnished herein has not been audited by an
independent accountant; however, in the opinion of management, all adjustments
(only consisting of normal recurring accruals) necessary for a fair presentation
of the results of operations for the three months and nine months ended
September 30, 1999 have been included.
Pursuant to the requirements 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.
MAX DEVELOPMENT, INC.
(Registrant)
DATE: October 15, 1999 BY: /s/ David C. Olson
---------------- ---------------------------------
David C. Olson
President
8
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 35,165
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 35,165
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 35,165
<CURRENT-LIABILITIES> 750
<BONDS> 0
0
0
<COMMON> 2,322
<OTHER-SE> 32,093
<TOTAL-LIABILITY-AND-EQUITY> 35,165
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 25,776
<LOSS-PROVISION> 15,000
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (40,776)
<INCOME-TAX> 0
<INCOME-CONTINUING> (40,776)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (40,776)
<EPS-BASIC> (0.02)
<EPS-DILUTED> (0.02)
</TABLE>
