U.S. Securities and Exchange Commission
Washington, DC 20549
Form 10-QSB/A
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ---- to ----
Commission File number 0-26843
BF ACQUISITION GROUP I, INC.
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(Exact name of small business issuer as
specified in its charter)
Florida 65-0913582
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(State of other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
319 Clematis Street, Suite 812, West Palm Beach, Florida 33401
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(Address of principal executive offices)
(561) 655-0665
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(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 Exchange Act 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 __ No _X__
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
As of December 14, 1999, there were 785,000 shares of common
stock, $0.001 par value, issued and outstanding.
Transitional Small Business Disclosure Format (check one);
Yes __ No _X__
<PAGE>
BF ACQUISITION GROUP I, INC.
Form 10-QSB Index
October 31, 1999
Page
Part I: Financial Information..............................................2
Item 1. Financial Statements .........................................2
Balance Sheets-
October 31,1999 (Unaudited) and April 30, 1999..............2
Statements of Operations -
Three Months and Six Months ended October 31, 1999
and from inception on April 15, 1999 through
October 31, 1999 (unaudited)................................3
Statements of Stockholders' Equity
From April 15, 1999 through October 31, 1999.....................4
Statements of Cash Flows -
Three months and six months ended October 31, 1999
and from inception on April 15, 1999 through
October 31, 1999 (unaudited).....................................5
Notes to Financial Statements ...................................6
Item 2. Management's Plan of Operation ...............................9
Part II: Other Information .............................................10
Item 1. Legal Proceedings .........................................10
Item 2. Changes in Securities .....................................10
Item 3. Defaults Upon Senior Securities ..........................10
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information ........................................10
Item 6. Exhibits and Reports on Form 8-K ..........................11
Signatures ...............................................................11
<PAGE> 2
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
BF ACQUISITION GROUP I, INC.
(A Development Stage Company)
BALANCE SHEET
<TABLE>
<CAPTION>
October 31, April 30,
1999 1999
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,547 $ 1,000
----------- ----------
Total assets $ 1,547 $ 1,000
----------- ----------
----------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Stockholders' equity:
Preferred stock, no par value;
5,000,000 shares authorized;
none issued or outstanding - -
Common stock $0.001 par value;
50,000,000 shares authorized,
785,000 and 700,000 shares issued
and outstanding at October 31, 1999
and April 30, 1999, respectively 785 700
Additional paid-in capital 3,156 672
Deficit accumulated during
the development stage (2,394) (372)
Total stockholders' equity 1,547 1,000
Total liabilities and
stockholders' equity $ 1,547 $ 1,000
----------- -----------
----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE> 3
BF ACQUISITION GROUP I, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
Period from
inception
Three months Six months (April 15, 1999)
ended ended through
October 31, October 31, October 31,
1999 1999 1999
------------- ------------- --------------
(unaudited) (unaudited) (unaudited)
<S> <C> <C> <C>
Revenues $ - $ - $ -
General and
administrative expenses 345 2,022 2,394
----------- ------------- ----------
Loss before income
tax provision (345) (2,022) (2,394)
Provision for income
taxes - - -
----------- ------------- ----------
Net loss $ (345) $(2,022) $ (2,394)
----------- ------------- ----------
------------ ------------- ----------
Basic and dilutive
loss per common share:
Basic and diluted
loss per common share $(0.0004) $(0.0026) $ (0.0031)
------------ ------------- ----------
------------ ------------- ----------
Weighted average number
of common shares
outstanding 785,000 772,283 766,500
------------ ------------- ----------
------------ ------------- ----------
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE> 4
BF ACQUISITION GROUP I, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Additional during the Total
--------------- Paid-in Development Stockholders'
Shares Amount Capital Stage Equity
------- ------ --------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Balance,
April 15,1999 - $ - $ - $ - -
Sale of
510,000 shares
of common stock 510,000 510 490 1,000
Common stock
issued for
services 190,000 190 182 372
Net Loss - - - (372) (372)
----- ------ --------- ----------- ------------
Balance,
April 30,1999 700,000 $ 700 $ 672 $ (372) 1,000
----- ------ --------- ----------- ------------
----- ------ --------- ----------- ------------
Sale of 50,000
shares of
common stock 50,000 50 2,450 - 2,500
Common stock
issued for
services 35,000 35 34 69
Net loss - - - (2,022) (2,022)
------ ------- -------- ------------ ----------
Balance,
October 31,
1999 785,000 $ 785 $3,156 $(2,394) $ 1,547
------ ------ -------- ---------- ------------
------ ------ -------- ---------- ------------
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE> 5
BF ACQUISITION GROUP I, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Period from
inception
Three months Six months (April 15,1999)
ended ended through
October 31, October 31, October 31,
1999 1999 1999
-------------- -------------- -------------
<S> <C> <C> <C>
(unaudited) (unaudited) (unaudited)
Cash flows from
operating activities:
Net loss $ (345) $ (2,022) $ (2,394)
Common Stock
Issued for - 69 441
services ------------- -------------- -------------
Net cash used in
operating activities (345) (1,953) (1,953)
Cash flows from
financing activities:
Sale of common stock - 2,500 3,500
------------- --------------- -------------
Net cash provided by
financing activities - 2,500 3,500
------------- -------------- -------------
Net (decrease) increase
in cash and cash
equivalents (345) 547 1,547
Cash and cash
equivalents at
beginning of period 1,892 1,000 -
------------ --------------- -------------
Cash and cash
equivalents at
end of period $ 1,547 $ 1,547 $ 1,547
----------- ---------------- --------------
----------- ---------------- --------------
</TABLE>
The accompanying notes are an integral part of these financial
statements.
<PAGE> 6
BF ACQUISITION GROUP I, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(unaudited)
1. ORGANIZATION AND BASIS OF PRESENTATION:
BF Acquisition Group I, Inc., (the "Company"), a development stage
company, was organized in Florida on April 15, 1999 as a "shell" company
which plans to look for suitable business partners or acquisition candidates
to merge with or acquire. Operations since incorporation have consisted
primarily of obtaining the initial capital contribution by the founding
shareholders and coordination of activities regarding the SEC registration of
the Company.
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 revenues and expenses during the
reporting period. Actual results could differ from those estimates.
The information for the three and six months ended October 31, 1999 has
not been audited by independent certified public accountants, but includes all
adjustments which are, in the opinion of management, necessary to a fair
statement of the results for the period.
Certain information and footnote disclosure normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been omitted pursuant to the requirements of the Securities
and Exchange Commission, although the Company believes that the disclosures
included in these interim financial statements are adequate to make the
information not misleading.
It is suggested that these consolidated financial statements should be
read in conjunction with the consolidated financial statements and notes
thereto included in the Company's Form 10-SB (see File Number 000-26843) on
file with the Securities and Exchange Commission.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Income Taxes
The Company accounts for income taxes in accordance with the Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes", which
requires the recognition of deferred tax liabilities and assets at currently
enacted tax rates for the expected future tax consequences of events that
have been included in the financial statements or tax returns.
A valuation allowance is recognized to reduce the net deferred tax asset
to an amount that is more likely than not to be realized. The tax provision
shown on the accompanying statement of operations is zero since the deferred tax
asset generated from the net operating loss is offset in its entirety by a
valuation allowance.
<PAGE> 7
BF ACQUISITION GROUP I, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(unaudited)
Cash and Cash Equivalents
Cash and cash equivalents, if any, include all highly liquid debt
instruments with an original maturity date of three months or less at the date
of purchase.
Earnings Per Common Share
The Company follows the provisions of SFAS No. 128, "Earnings Per Share",
which requires companies with complex capital structures or common stock
equivalents to present both basic and diluted earnings per share ("EPS") on the
face of the income statement. Basic EPS is calculated as income available
to common stockholders divided by the weighted average number of common
shares outstanding during the period. Diluted EPS is calculated using the
"if converted" method for convertible securities and the treasury stock
method for options and warrants as previously prescribed by Accounting
Principles Board Opinion No. 15, "Earnings Per Share".
Statement of Comprehensive Income
A statement of comprehensive income has not been included, per SFAS 130,
"Reporting Comprehensive Income", as the Company has no items of other
comprehensive income.
3. LOSS PER COMMON SHARE:
Net loss per common share outstanding, as shown on the statement of
operations, is determined by the weighted average number of shares of common
stock outstanding during the period. Diluted loss per common share calculations
are determined by dividing loss available to common shareholders by the weighted
average number of shares of common stock and dilutive common stock
equivalents outstanding during the period.
4. CAPITAL STOCK:
Common Stock
The holders of the common stock are entitled to one vote per share and
have non-cumulative voting rights. The holders are also entitled to receive
dividends when, as, and if declared by the Board of Directors. Additionally,
the holders of the common stock do not have any preemptive right to subscribe
for, or purchase, any shares of any class of stock.
Preferred Stock
The Board of Directors of the Company is authorized to provide for the
issuance of the preferred stock in classes or series and, by filing the
appropriate articles of amendment with the Secretary of State of Florida, is
authorized to establish the number of shares to be included in each class or
series and the preferences, limitations and relative rights of each class or
series, which may include a conversion feature into common stock. This type
of preferred stock is commonly referred to as "blank check preferred stock".
As of December 13, 1999, no shares of preferred stock have been issued and no
preferences,limitations and relative rights have been assigned.
<PAGE> 8
BF ACQUISITION GROUP I, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(unaudited)
5. RELATED PARTY TRANSACTIONS:
OFFICE FACILITIES
OFFICE SPACE WAS PROVIDED TO THE COMPANY BY A SHAREHOLDER OF THE
COMPANY AT $150 PER MONTH FROM JUNE THROUGH OCTOBER 1999. EFFECTIVE NOVEMBER
1999, THE RENT WILL BE $100 PER MONTH FOR OFFICE SPACE.
<PAGE> 9
ITEM 2. MANAGEMENT'S PLAN OF OPERATION.
OVERVIEW
THE FOLLOWING DISCUSSION "MANAGEMENT'S PLAN OF OPERATION" CONTAINS FORWARD
- -LOOKING STATEMENTS. THE WORDS "ANTICIPATE," "BELIEVE," "EXPECT," "PLAN,"
"INTEND," "ESTIMATE," "PROJECT,""WILL," "COULD," "MAY" AND SIMILAR
EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. SUCH
STATEMENTS REFLECT THE COMPANY'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND
FINANCIAL PERFORMANCE AND INVOLVE RISKS AND UNCERTAINTIES. SHOULD ONE OR
MORE RISKS OR UNCERTAINTIES OCCUR, OR SHOULD UNDERLYING ASSUMPTIONS PROVE
INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY AND ADVERSELY FROM THOSE
ANTICIPATED, BELIEVED, EXPECTED, PLANNED, INTENDED, ESTIMATED, PROJECTED OR
OTHERWISE INDICATED.
THE FOLLOWING IS QUALIFIED BY REFERENCE TO, AND SHOULD BE READ IN
CONJUNCTION WITH THE COMPANY'S FINANCIAL STATEMENTS, AND THE NOTES THERETO,
INCLUDED ELSEWHERE IN THIS FORM 10-QSB, AS WELL AS THE DISCUSSION HEREUNDER
"MANAGEMENT'S PLAN OF OPERATION".
PLAN OF OPERATION
BF ACQUISITION GROUP I, INC. (THE "COMPANY") IS PRESENTLY A DEVELOPMENT
STAGE COMPANY CONDUCTING VIRTUALLY NO BUSINESS OPERATION, OTHER THAN ITS
EFFORTS TO EFFECT A MERGER, EXCHANGE OF CAPITAL STOCK, ASSET ACQUISITION OR
OTHER SIMILAR BUSINESS COMBINATION (A "BUSINESS COMBINATION") WITH AN
OPERATING OR DEVELOPMENT STAGE BUSINESS ("TARGET BUSINESS") WHICH DESIRES TO
EMPLOY THE COMPANY TO BECOME A REPORTING CORPORATION UNDER THE SECURITIES
EXCHANGE ACT OF 1934. TO DATE, THE COMPANY HAS NEITHER ENGAGED IN ANY
OPERATIONS NOR GENERATED ANY REVENUE. IT RECEIVES NO CASH FLOW. THE COMPANY
WILL CARRY OUT ITS PLAN OF BUSINESS AS DISCUSSED IN NOTE 1. THE COMPANY CANNOT
PREDICT TO WHAT EXTENT ITS LIQUIDITY AND CAPITAL RESOURCES WILL BE DIMINISHED
PRIOR TO THE CONSUMMATION OF A BUSINESS COMBINATION OR WHETHER ITS CAPITAL WILL
BE FURTHER DEPLETED BY THE OPERATING LOSSES (IF ANY) OF THE TARGET BUSINESS
WHICH THE COMPANY EFFECTUATES A BUSINESS COMBINATION WITH.
SINCE INCEPTION, THE COMPANY HAS RECEIVED A CASH INFUSION OF $3,500.
WITH THE EXCEPTION OF CERTAIN OTHER PROFESSIONAL FEES AND COSTS RELATED TO A
BUSINESS COMBINATION, THE COMPANY EXPECTS THAT IT WILL INCUR MINIMAL
OPERATING COSTS AND MEET ITS CASH REQUIREMENTS DURING THE NEXT 12 MONTHS. IT IS
LIKELY, HOWEVER, THAT A BUSINESS COMBINATION MIGHT NOT OCCUR DURING THE NEXT 12
MONTHS. IN THE EVENT THE COMPANY DEPLETES ITS PRESENT CASH RESERVES PRIOR
TO THE EFFECTUATION OF A BUSINESS COMBINATION, THE COMPANY MAY CEASE
OPERATIONS AND A BUSINESS COMBINATION MAY NOT OCCUR. DAVID M. BOVI, P.A.,
THE COMPANY'S SUB-LESSOR, HAS AGREED TO WAIVE ALL OF THE COMPANY'S RENT
PAYMENTS, IF NECESSARY, IN ORDER TO PRESERVE THE COMPANY'S CASH RESERVES. NO
COMMITMENTS OF ANY KIND TO PROVIDE ADDITIONAL FUNDS HAVE BEEN MADE BY
MANAGEMENT, OTHER PRESENT SHAREHOLDERS OR ANY OTHER THIRD PERSON. THERE ARE NO
AGREEMENTS OR UNDERSTANDINGS OF ANY KIND WITH RESPECT TO ANY LOANS FROM OFFICERS
OR DIRECTORS OF THE COMPANY ON BEHALF OF THE COMPANY. ACCORDINGLY, THERE CAN
BE NO ASSURANCE THAT ANY ADDITIONAL FUNDS WILL BE AVAILABLE TO THE COMPANY TO
ALLOW IT TO COVER ITS EXPENSES. IN THE EVENT THE COMPANY ELECTS TO RAISE
ADDITIONAL CAPITAL PRIOR TO THE EFFECTUATION OF A BUSINESS COMBINATION, IT
EXPECTS TO DO SO THROUGH THE PRIVATE PLACEMENT OF RESTRICTED SECURITIES
<PAGE> 10
RATHER THAN THROUGH A PUBLIC OFFERING. THE COMPANY DOES NOT CURRENTLY
CONTEMPLATE MAKING A REGULATION S OFFERING.
SINCE INCEPTION, ALL OF THE COMPANY'S OUT OF POCKET EXPENSES, WHICH
APPROXIMATED $2,000 WERE PAID PURSUANT TO A $1,000 CAPITAL INFUSION MADE TO
THE COMPANY BY THE COMPANY'S PROMOTERS IN EXCHANGE FOR 510,000 SHARES OF
COMMON STOCK AND $2,500 CAPITAL INFUSION MADE TO THE COMPANY PURSUANT TO THE
PRIVATE SALE OF 50,000 SHARES OF COMMON STOCK. SEE NOTE 4.
SINCE THE COMPANY'S CASH RESERVES ARE MINIMAL, OFFICERS AND DIRECTOR'S
OF THE COMPANY ARE COMPENSATED BY THE COMPANY BY ISSUANCES OF STOCK IN LIEU
OF CASH. PRESENTLY, THERE ARE NO ARRANGEMENTS OR ANTICIPATED ARRANGEMENTS TO PAY
ANY TYPE OF ADDITIONAL COMPENSATION TO ANY OFFICER OR DIRECTOR IN THE NEAR
FUTURE. REGARDLESS OF WHETHER THE COMPANY'S CASH ASSETS PROVE TO BE
INADEQUATE TO MEET THE COMPANY'S OPERATIONAL NEEDS, THE COMPANY MIGHT SEEK
TO COMPENSATE PROVIDERS OF SERVICES BY ISSUANCES OF STOCK IN LIEU OF CASH.
COMPUTER TECHNOLOGIES AND YEAR 2000 COMPLIANCE.
THE COMPANY IS AWARE OF THE ISSUES ASSOCIATED WITH THE PROGRAMMING CODE
IN EXISTING COMPUTER SYSTEMS AS THE YEAR 2000 APPROACHES. MANY EXISTING
COMPUTER PROGRAMS USE ONLY TWO DIGITS TO IDENTIFY A YEAR IN THE DATE FIELD. THE
COMPANY HAS ASSESSED THE COMPUTER SOFTWARE THAT IT UTILIZES AND CONSIDERS SUCH
SOFTWARE TO BE YEAR 2000 COMPLIANT; HOWEVER, BECAUSE OF THE MANY UNCERTAINTIES
ASSOCIATED WITH THE YEAR 2000 COMPLIANCE ISSUES, THE COMPANY CANNOT ASSURE
THAT ITS ASSESSMENT IS CORRECT WITH RESPECT TO THIS MATTER.
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
NOT APPLICABLE
ITEM 2. CHANGE IN SECURITIES
NOT APPLICABLE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NOT APPLICABLE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NOT APPLICABLE
ITEM 5. OTHER INFORMATION
NOT APPLICABLE
<PAGE> 11
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) FINANCIAL DATA SCHEDULE.
(B) NO REPORTS ON FORM 8-K WERE FILED DURING THE QUARTER
ENDED OCTOBER 31, 1999.
SIGNATURES
IN ACCORDANCE WITH THE REQUIREMENTS OF THE EXCHANGE ACT, THE
REGISTRANT CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
BF ACQUISITION GROUP I, INC.
REGISTRANT
DATE: DECEMBER 14, 1999 /s/ DAVID M. BOVI
DAVID M. BOVI,
CHIEF EXECUTIVE OFFICER
DATE: DECEMBER 14, 1999 /s/ DAVID M. BOVI
DAVID M. BOVI,
CHIEF EXECUTIVE OFFICER
