U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 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 No. 0-26717
SCORE ONE, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 88-0409164
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
2133 East 9400 South, Suite 151, Sandy, Utah 84093
(Address of principal executive offices)
(801) 944-0701
(Issuer's telephone number)
Not Applicable
(Former name, address and fiscal year, if changed since last report)
Check whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the issuer
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 ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13, or 15(d) of the
Exchange Act subsequent to 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:
2,200,000 shares of common stock.
<PAGE>
FORM 10-QSB
SCORE ONE, INC.
INDEX
Page
PART I. Financial Information
Financial Statements
Balance Sheet - August 31, 1999 3
Statements of Operations - Three Months
Ended August 31, 1999 and 1998, and
Inception to August 31, 1999 4
Statements of Stockholders' Equity
Inception to August 31, 1999 5
Statements of Cash Flows - Three Months
Ended August 31, 1999 and 1998,
and Inception to August 31, 1999 6
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
PART II. Other Information 10
Signatures 10
PART I.
Financial Information
In the opinion of management, the accompanying unaudited
financial statements included in this Form 10-QSB reflect all
adjustments (consisting only of normal recurring accruals)
necessary for a fair presentation of the results of operations
for the periods presented. The results of operations for the
periods presented are not necessarily indicative of the results
to be expected for the full year.
2
<PAGE>
SCORE ONE, INC.
(A Development Stage Company)
Balance Sheet
(unaudited)
ASSETS
August 31,
1999
CURRENT ASSETS
Cash $ 1,718
Total Current Assets 1,718
TOTAL ASSETS $ 1,718
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Note payable - related party (Note 5) $ 5,000
Accrued Interest - related party (Note 5) $ 208
Total Current Liabilities 5,208
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, $0.001 par value: 5,000,000 shares authorized,
-0- shares issued and outstanding -
Common stock, $0.001 par value, 25,000,000 shares authorized,
2,200,000 shares issued and outstanding 2,200
Deficit accumulated during the development stage (5,690)
Total Stockholders' Equity (Deficit) (3,490)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 1,718
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
SCORE ONE, INC.
(A Development Stage Company)
Statements of Operations
(unaudited)
From
Inception on
For the June 7,
Quarters Ended 1996 Through
August 31, August 31,
1999 1998 1999
REVENUES $ - $ - $ -
EXPENSES
General and administrative 3,057 - 5,482
Interest Expense 208 - 208
Total Expenses 3,265 - 5,690
NET LOSS $(3,265) $ - $(5,690)
BASIC LOSS PER SHARE $(0.00) $(0.00)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 2,200,000 2,200,000
The accompanying notes are an integral part of these financial
statements.
4
<PAGE>
SCORE ONE, INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
From Inception on June 7, 1996 through August 31, 1999
(unaudited)
<TABLE>
<CAPTION>
Deficit
Accumulated
During the
Preferred Stock Common Stock Development
Shares Amount Shares Amount Stage
<S> <C> <C> <C> <C> <C>
Balance at inception on
June 7, 1996 - $ - - $ - $ -
Issuance of common stock for
services at $0.001 per share - - 2,200,000 2,200 -
Net loss from inception on
June 7, 1996 through
May 31, 1997 - - - - (2,200)
Balance, May 31, 1997 2,200,000 2,200 (2,200)
Net loss for the year ended
May 31, 1998 - - - - -
Balance, May 31, 1998 2,200,000 2,200 (2,200)
Net loss for the year ended
May 31, 1999 - - - - (225)
Balance, May 31, 1999 2,200,000 2,200 (2,425)
Net loss for the quarter ended
August 31, 1999 - - - - (3,265)
Balance, August 31, 1999 - $ - 2,200,000 $2,200 $(5,690)
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
SCORE ONE, INC.
(A Development Stage Company)
Statements of Cash Flows
(unaudited)
From
Inception on
For the June 7,
Quarters Ended 1996 Through
August 31, August 31,
1999 1998 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(3,265) $ - $(5,690)
Adjustments to reconcile net loss to net cash
used by operating activities:
Common stock issued for services - - 2,200
Accrued Interest 208 - 208
Net Cash Used by Operating Activities (3,057) - (3,282)
CASH FLOWS FROM INVESTING ACTIVITIES - - -
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from note payable - - 5,000
Net Cash Provided by Financing Activities - - 5,000
NET INCREASE (DECREASE) IN CASH (3,057) - 1,719
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 4,775 - -
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 1,718 $ - $ 1,718
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION
Interest paid $ - $ - $ -
Income taxes paid $ - $ - $ -
SCHEDULE OF NON-CASH FINANCING ACTIVITIES:
Common stock issued for services $ - $ - $ 2,200
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
SCORE ONE, INC.
(A Development Stage Company)
Notes to the Financial Statements
August 31, 1999
NOTE 1 - NATURE OF ORGANIZATION
The financial statements presented are those of Score
One, Inc. (the Company). The Company was organized under
the laws of the State of Nevada on June 7, 1996 under the
name Aloha "The Breath of Life" Foundation, Inc. On
March 26, 1999, the Company passed an amendment to change
the Company's name to Score One, Inc. The Company was
organized for the purpose of seeking potential business
ventures.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Accounting Method
The financial statements are prepared using the accrual
method of accounting. The Company has elected a May 31
year end.
b. Provision for Taxes
At August 31, 1999, the Company has net operating loss
carryforwards of approximately $5,690 that may be offset
against future taxable income through 2015. No tax
benefit has been reported in the financial statements
because the Company believes there is a 50% or greater
chance the carryforwards will expire unused.
Accordingly, the potential tax benefits of the loss
carryforwards are offset by a valuation allowance of the
same amount.
c. 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 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.
d. Cash and Cash Equivalents
The Company considers all highly liquid investments with
a maturity of three months or less when purchased to be
cash equivalents.
e. Basic Loss Per Share
The computation of basic loss per share of common stock
is based on the weighted average number of shares
outstanding during the period of the financial
statements.
7
<PAGE>
SCORE ONE, INC.
(A Development Stage Company)
Notes to the Financial Statements
August 31, 1999
NOTE 3 - GOING CONCERN
The Company's financial statements are prepared using
generally accepted accounting principles applicable to a
going concern which contemplates the realization of
assets and liquidation of liabilities in the normal
course of business. However, the Company does not have
significant cash or other material assets, nor does it
have an established source of revenues sufficient to
cover its operating costs and to allow it to continue as
a going concern. In the event that the Company needs
additional cash for operational expenses, the Company
will seek an extension of its note payable to the sole
officer and director as well as additional debt
financing. The sole officer and director has indicated
his willingness to provide these considerations until the
Company combines with a viable operating business.
NOTE 4 - FORWARD STOCK SPLIT
On March 10, 1999, the Company approved a 100-for-1
forward stock split. The forward stock split has been
reflected on a retroactive basis.
NOTE 5 - NOTE PAYABLE - RELATED PARTY
On April 1, 1999 the Company executed a promissory note
to a related party in consideration of a $5,000 loan. The
note is due in full on March 31, 2000 and accrues
interest at 10% per annum. As of August 31, 1999, the
Company owed principal of $5,000 plus accrued interest of
$208.33.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Three Month periods Ended August 31, 1999 and 1998
The Company had no revenue from continuing operations for the
three-month periods ended August 31, 1999 and 1998.
General and administrative expenses for the three month periods
ended August 31, 1999, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs. These expenses were $3,057 for the three-
month period ended August 31, 1999. There were no such costs for
the comparable period in 1998.
Interest expense in the three-month period ended August 31, 1999,
was $208 on a note payable to a related party in the principal
amount of $5,000 due March 31, 2000. There was no interest
expense during the comparable period in 1998.
As a result of the foregoing factors, the Company realized a net
loss of $3,265 for the three months ended August 31, 1999, as
compared to no gain or loss for the same period in 1998.
Liquidity and Capital Resources
At August 31, 1999, the Company had a working capital deficit of
$3,490. The Company's cash in the amount of $1,718 resulted from
a loan from its principal stockholder, which bears interest at
the rate of 10% per annum and is due March 31, 2000. The funds
were loaned to the Company to fund its revival and finance its
becoming a reporting company under the Securities Exchange Act of
1934. Management believes that the Company has sufficient cash
to meet its anticipated needs through at least the first calendar
quarter of 2000. However, there can be no assurances to that
effect, as the Company has no revenues and its need for capital
may change dramatically if it acquires an interest in a business
opportunity during that period. The Company's current operating
plan is to (i) handle the administrative and reporting
requirements of a public company; and (ii) search for potential
businesses, products, technologies and companies for acquisition.
At present, the Company has no understandings, commitments or
agreements with respect to the acquisition of any business,
product, technology or company and there can be no assurance that
the Company will identify any such business, product, technology
or company suitable for acquisition in the future. Further,
there can be no assurance that the Company would be successful in
consummating any acquisition on favorable terms or that it will
be able to profitably manage the business, product, technology or
company it acquires. If the Company is unable to participate in
a business venture, it may require additional capital to continue
its search for a business venture and avoid dissolution. In this
event, it is anticipated that the Company will seek extension of
its note payable to Ken Kurtz, the sole officer and director of
the Company, as well as additional debt financing. Mr. Kurtz has
verbally committed to provide these considerations for a term of
at least twenty-four (24) months from May 31, 1999, or until the
Company acquires or establishes active business operations.
9
<PAGE>
PART II. OTHER INFORMATION
EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS: Included only with the electronic filing of this
report is the Financial Data Schedule for the three-month period
ended August 31, 1999 (Exhibit Ref. No. 27).
REPORTS ON FORM 8-K: None
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.
SCORE ONE, INC.
Date: October 14, 1999 By /s/ Ken Kurtz, President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-END> AUG-31-1999
<CASH> 1,718
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,718
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,718
<CURRENT-LIABILITIES> 5,208
<BONDS> 0
0
0
<COMMON> 2,200
<OTHER-SE> (5,690)
<TOTAL-LIABILITY-AND-EQUITY> 1,718
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 3,057
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 208
<INCOME-PRETAX> (3,265)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,265)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,265)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
