U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
X...Quarterly report under section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended September
30, 1999.
Transition report under section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from _________ to
_________.
Commission File No: 000-26665
GLENNAIRE FINANCIAL SERVICES, INC.
(Name of small business in its charter)
Utah 87-0632335
(State or other (IRS Employer Id. No.)
jurisdiction of Incorporation)
3158 Redhill Ave., Ste. 240, Costa Mesa, CA 92626
(Address of Principal Office) Zip Code
Issuer's telephone number: (714) 770-2578
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act during
the past 12months (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 .
Applicable only to issuers involved in bankruptcy proceedings
During the past five years.
Check whether the issuer has filed all documents and reports
Required to be filed by Section 12, 13 or 15(d) of the Exchange
Act after the distribution of securities under a plan confirmed
by a court. Yes No .
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.
At 9/30/99 the following shares of common were outstanding:
Common Stock,
$.001 par value, 1,000,000 shares.
Transitional Small Business Disclosure
Format (Check one):
Yes No X .
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS AND EXHIBITS
(a) The unaudited financial statements of registrant as
of and for the quarter ending September 30, 1999, and for the period
from inception (March 22, 1999) through September 30, 1999,
follow. The financial statements reflect all adjustments which
are, in the opinion of management, necessary to a fair statement of
the results for the interim period presented.
GLENNAIRE FINANCIAL SERVICES, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
Quarter Ended September 30, 1999
Index to Financial Statements Page
Balance Sheet 3
Statement of Loss and Accumulated Deficit 4
Statements of Cash Flows 5
Statement of Stockholders' Equity 6
Notes to Financial Statements 7
Glennaire Financial Services, Inc.
(A Development Stage Company)
BALANCE SHEET
As of September 30, 1999
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $(2,823)
OTHER ASSETS:
Organizational costs (net of amortization)
TOTAL ASSETS $(2,823)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 2,823
STOCKHOLDERS' EQUITY
Common stock, $.001 par value;
50,000,000 shares authorized;
1,000,000 shares issued and
outstanding at Sept. 30, 1999 $ 1000
Stock Subscription Receivable (900)
Additional Paid in Capital 0
Deficit accumulated during the development stage (100)
Total stockholders' equity $ 0
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $(2,823)
The accompanying Notes are an integral part of these financial
statements.
Glennaire Financial Services, Inc.
(A Development Stage Company)
STATEMENT OF LOSS AND ACCUMULATED DEFICIT
For the three months ended September 30, 1999. The date of
issuer's inception was March 22, 1999
(unaudited)
Three Months Ended
9/30/99
INCOME:
Revenue $ 0
TOTAL INCOME $ 0
EXPENSES:
General, and Administrative $2,823
Amortization $
Total Expenses $2,823
Net Profit/Loss(-) From Operations $(2,823)
Interest Income $0
INCOME (LOSS) BEFORE INCOME TAXES $(2,823)
Provision for income tax $0
NET INCOME (LOSS) $(2,823)
NET INCOME (LOSS)PER SHARE-BASIC AND
DILUTED $(.003)
AVERAGE NUMBER OF SHARES OF COMMON
STOCK OUTSTANDING 1,000,000
The accompanying notes are an integral part of these financial
statements.
Glennaire Financial Services, Inc.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
For the three months ended September 30, 1999 and for
the period from March 22, 1999 (inception) to September 30, 1999
(unaudited)
Three Months Period From
Ended Inception
9/30/99 (3/22/99)
thru
9/30/99
Cash Flows from Operating
Activities:
Net Income $(2,823) $(2,923)
(Increase) Amortization 0
Net Cash (Used) In Operating
Activities $(2,823) $(2,923)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of organizational costs $ 0
Corp. Promissory Note $ 2,823 $ 2,823
CASH FLOWS FROM FINANCING
ACTIVITIES
Issuance of common stock for cash 0 $ 100
Net Increase in Cash $ 0 $ 0
Cash, Beginning of Period $ 0 $ 2,823
Cash, End of Period $ 0 $ 0
The accompanying notes are an integral part of these financial
statements.
Glennaire Financial Services, Inc.
(A Development Stage Company)
STATEMENT OF STOCKHOLDERS' EQUITY
For the period from inception (March 22, 1999)
To September 30, 1999
Deficit
Accumulated
Additional During
Common Stock paid-in Development
Shares Amount capital Stage
Issued for
cash and organizational
costs
March 22, 1999 1,000,000 $1,000 $0
Stock Subscription
Receivable $ (900)
Net Income
March 22, 1999
(inception) to
September 30, 1999 $(100)
Balance
September 30, 1999 1,000,000 $ 100 $0 $(100)
The accompanying notes are an integral part of these financial
statements.
Glennaire Financial Services, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
September 30, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The information including in the condensed financial statements
Is unaudited, but includes all adjustments (consisting of normal
Recurring items) which are, in the opinion of management, necessary
for a fair representation of the interim period presented.
Development stage company
The Company is a new enterprise in the development stage as
Defined by Statement No. 7 of the Financial Accounting Standards
Board and has not engaged in any business other than organizational
efforts. It has no full-time employees and owns no real property.
The Company intends to seek to acquire one or more existing
businesses which have existing management, through merger or
acquisition, that may have potential for profit, and to that end,
intends to acquire properties or businesses, or a controlling
interest therein. Management of the Company will have virtually
unlimited discretion in determining the business activities in which
the Company might engage.
Accounting Method
The Company records income and expenses on the accrual method.
Fiscal Year
The Company has selected a December 31 fiscal year end.
Loss Per Share
Loss per share was computed using the weighted number of shares
outstanding during the period.
Organization Costs
Costs to incorporate the Company have been capitalized and will
Be amortized over a sixty-month period.
Statement of Cash Flows
For purposes of the statement of cash flows, the Company
Considers all highly liquid debt instruments purchased with an
original maturity of three months or less to be cash equivalents.
Use of Estimates
The preparation of the Company's financial statements in
Conformity with generally accepted accounting principles requires
the Company's management to make estimates and assumptions that
effect the amounts reported in these financial statements and
accompanying notes. Actual results could differ from those estimates.
Stock Basis
Shares of common stock issued for other than cash have been
Assigned amounts equivalent to the fair value of the service or assets
Received in exchange.
2. STOCKHOLDERS' EQUITY
The authorized common stock of the Company consists of
50,000,000 shares with a par value of $0.001 per share. As of
September 30, 1999 the Company had 1,000,000 shares outstanding.
Preferred Stock.
The authorized Preferred Stock of the Company consists of
10,000,000 shares with a par value of $0.001 per share. No
preferred shares have been issued.
5. INCOME TAXES
There is no provision for income taxes for the period ended
March 22, 1999 (inception) to September 30, 1999 due to the zero
net income and no Nevada state Income tax in the state of the
Company's domicile.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Liquidity and Capital Resources.
The Company remains in the development stage, and since
inception,has experienced no significant change in liquidity or
capital resources or stockholders' equity.
The Company will carry out its plan of business to seek out and
take advantage of business opportunities that may have potential for
profit,and acquire such businesses, or a controlling interest therein.
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 business entity which the Company
may eventually acquire.
Results of Operations.
During the period from March 22, 1999 (inception) through
September 30, 1999, the Company has engaged in no significant
operations other than the acquisition of capital and registering
its securities under the Securities and Exchange Act of 1934, as
amended. No revenues were received by the Company during this period.
The Company has experienced a net loss of $100 since inception. The
Company borrowed $2,823 from its principal shareholder in order
to pay its general and administrative expenses.
The Company anticipates that until a business combination is
completed with an acquisition candidate, it will not generate
revenues, and may continue to operate at a loss after completing a
business combination, depending upon the performance of the acquired
business.
Irrespective 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 issuance of
stock in lieu of cash.
Need for Additional Financing.
The Company believes that its existing capital will be
sufficient to meet the Company's cash needs, including the costs
of compliance with the continuing reporting requirements of the
Securities ExchangeAct of 1934, as amended, for approximately
three months. Thereafter, the company will require additional
working capital unless it has completed a business combination.
Thus, there is no assurance that the available funds will ultimately
prove to be adequate for the Company's operations. Although no
commitments to provide funds have been made by management or other
stockholders, it is anticipated that the Company would seek loans or
additional capital contributions from its existing principal
shareholders in the event it requires additional working capital.
However, there can be no assurance that other funds will be available
to cover the Company's expenses.
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBIT 27 - FINANCIAL DATA SCHEDULE
(b) There have been no reports on Form 8-K for the
quarter ending September 30, 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.
Glennaire Financial Services, Inc.
(Registrant)
Date: November 26, 1999
/s/ Vincent van den Brink
Vincent van den Brink, President
