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: January 31, 2000
Commission file number 000-27211
Colorado Community Broadcasting, Inc.
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(Exact name of small business issuer as specified in its charter)
Colorado 84-1469319
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(State or other jurisdiction of (I.R.S. Employer incorporation
or organization) Identification No.)
10200 W. 44th Avenue, Suite 400, Wheat Ridge, CO 80033
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Address of principal executive offices)
(303) 422-8127
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(Issuer's telephone number)
Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 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 X No
As of January 31, 2000 225,000 shares of common stock were outstanding.
Transitional Small Business Disclosure Format: Yes No X
<PAGE>
PART I--FINANCIAL INFORMATION
Item 1. Financial Statements.
For financial information, please see the financial statements and the
notes thereto, attached hereto and incorporated herein by this reference.
The financial statements have been prepared by the company without
audit pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted as allowed by such
rules and regulations, and management believes that the disclosures are
adequate to make the information presented not misleading. These financial
statements include all of the adjustments which, in the opinion of
management, are necessary to a fair presentation of financial position and
results of operations. All such adjustments are of a normal and recurring
nature. These financial statements should be read in conjunction with the
audited financial statements at April 30, 1999, included in the Company's
Form 10SB.
<PAGE>
<TABLE>
<CAPTION>
Colorado Community Broadcasting, Inc.
(A Development Stage Company)
Balance Sheet
(Unaudited)
January 31, April 30,
2000 1999
-------------- -------------
<S> <C> <C>
ASSETS:
Current Assets:
Cash $ 21,402 $ 15,057
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TOTAL ASSETS $ 21,402 $ 15,057
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts Payable $ - $ 250
Short-term Borrowings 1,100 1,100
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Total Current Liabilities 1,100 1,350
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STOCKHOLDERS' EQUITY:
Series A Common Stock, par value $.0001 per share;
100,000,000 shares authorized, 225,000 shares issued
and outstanding 22 22
Additional paid-in capital 26,978 26,978
Subscription receivable (250) (10,500)
Deficit accumulated during the development stage (6,448) (2,793)
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Total Stockholders' Equity 20,302 13,707
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 21,402 $ 15,057
============== =============
</TABLE>
See accompanying independent accountant's review report and notes
to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Colorado Community Broadcasting, Inc.
(A Development Stage Company)
Statements of Operations
(Unaudited)
For the (Unaudited)
Nine Month For the March 16, 1998
Period Ended Year Ended (Inception) thru
January 31, April 30, January 31,
2000 1999 2000
---------------- --------------- --------------
<S> <C> <C> <C>
Revenue $ - $ - $ -
Expenses:
Professional Fees 3,550 2,000 5,550
Bank Charges 15 80 95
Telephone - 50 50
Administrative Expenses 90 38 128
Travel - 625 625
---------------- --------------- --------------
Total Expenses 3,655 2,793 6,448
---------------- --------------- --------------
Net Loss $ (3,655) $ (2,793) $ (6,448)
================ =============== ==============
Net Loss Per Share $ (0.02) $ (0.01)
================ ===============
Weighted average number of
common shares outstanding 225,000 225,000
================ ===============
</TABLE>
See accompanying independent accountant's review report and notes
to financial statements.
<PAGE>
<TABLE>
<CAPTION>
Colorado Community Broadcasting, Inc.
(A Development Stage Company)
Statements of Operations
(Unaudited)
For the Nine Month For the Three Month
Period Ended January 31, Period Ended January 31,
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenue $ - $ - $ - $ -
Expenses:
Professional Fees 3,550 - - -
Bank Charges 15 - - -
Telephone - - - -
Administrative 90 118 - -
Travel - 625 625
-------- -------- -------- --------
Total Expenses 3,655 743 - 625
-------- -------- -------- --------
Net Loss $ (3,655) $ (743) $ - $ (625)
======== ======== ======== ========
Net Loss Per Share $ (0.02) $ (0.003) $ - $ (0.003)
======== ======== ======== ========
Weighted average number of
common shares outstanding 225,000 225,000 225,000 225,000
======== ======== ======== ========
</TABLE>
See accompanying independent accountant's review report and notes
to financial statements.
<PAGE>
<TABLE>
<CAPTION>
For the
Nine Month For the March 16, 1998
Period Ended Year Ended (Inception) thru
January 31, April 30, January 31,
2000 1999 2000
--------------- -------------- ---------------
<S> <C> <C> <C>
Cash Flows from Operating Activities:
Net Loss Accumulated During the
Development Stage $ (3,655) $ (2,793) $ (6,448)
Adjustments to reconcile net loss to net cash
used in operating activities
Non-Cash item include in loss: - -
Stock issued for services - 2,000 2,000
Changes in assets and liabilities:
Decrease (Increase) in Accounts Payable (250) 250 -
--------------- -------------- ---------------
Net Cash Flows Used In Operating Activities (3,905) (543) (4,448)
--------------- -------------- ---------------
Cash Flows from Financing Activities:
Issuance of Common Stock 10,250 14,500 24,750
Proceeds from Short-Term Borrowings - 1,100 1,100
--------------- -------------- ---------------
Net Cash Flows Provided by Financing Activities 10,250 15,600 25,850
--------------- -------------- ---------------
Net Increase (Decrease) in Cash 6,345 15,057 21,402
Cash at beginning of period 15,057 - -
--------------- -------------- ---------------
Cash at end of period $ 21,402 $ 15,057 $ 21,402
=============== ============== ===============
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest $ - $ - $ -
=============== ============== ===============
=============== ============== ===============
Cash paid during the period for income taxes $ - $ - $ -
=============== ============== ===============
</TABLE>
See accompanying independent accountant's review report and notes
to financial statements.
<PAGE>
Colorado Community Broadcasting, Inc.
(A Development Stage Company)
Colorado Community Broadcasting, Inc.
NOTES TO FINANCIAL STATEMENTS
FOR THE QUARTER ENDED JANUARY 31, 2000 AND 1999
Note 1 - Organization and Summary of Significant Accounting Policies:
Organization:
Colorado Community Broadcasting, Inc. (the "Company") was incorporated
on March 16, 1998 in the state of Colorado. The Company is primarily
engaged in raising capital funds from investors and contracting to pur-
chase a low power television license and station.
The Company fiscal year end is April 30.
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 and cash flows
disclose activity since the date of the Company's inception.
Basis of Accounting:
The accompanying financial statements have been prepared on the accrual
basis of accounting in accordance with generally accepted accounting
principles.
Cash and Cash Equivalents:
The Company considers all highly-liquid debt instruments, purchased
with an original maturity of three months, 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 of assets and
liabilities, and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenue
and expenses during the reporting period. Actual results could differ
from those estimates.
Net Loss Per Share:
Net loss per share has been computed by dividing net loss by the
weighted average number of common shares and equivalents outstanding.
Stock Subscription:
The Company records a stock subscription once the Subscription
Agreement is accepted.
<PAGE>
COLORADO COMMUNITY BROADCASTING, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE QUARTER ENDED JANUARY 31, 2000 AND 1999
Income Taxes:
The Company accounts for income taxes under SFAS No. 109, which
requires the asset and liability approach to accounting for income
taxes. Under this approach, deferred income taxes are determined based
upon differences between the financial statement and tax bases of the
Company's assets and liabilities and operating loss carryforwards using
enacted tax rates in effect for the years in which the differences are
expected to reverse. Deferred tax assets are recognized if it is more
likely than not that the future tax benefit will be realized.
Fair Value of Financial Instruments
The carrying amount of cash, accounts payable, and accrued expenses are
considered to be representative of their respective fair values because
of the short-term nature of these financial instruments.
Note 2 - Capital Stock Transactions
The authorized capital stock of the Company is 100,000,000 shares of
common stock at $.0001 par value. The Company has issued 225,000 shares
to sixteen individuals for $25,000 cash and services performed as of
April 30, 1999.
Note 3 - Income Taxes
There has been no provision for U.S. federal, state, or foreign income
taxes for 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
purposes. Significant components of deferred tax assets are as follows:
Deferred tax assets
Net operating loss carryforwards $6,448
Valuation allowance for deferred tax assets (6,448)
---------
Net deferred tax assets $ -
=========
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. Utilization of the net operating loss may be subject to
substantial annual limitation due to the ownership change limitations
provided by the Internal Revenue Code and similar state provisions.
The annual limitation could result in the expiration of the net
operating loss before utilization.
Note 4 - Short-Term Borrowings
Officers of the Company have provided services and advanced cash to the
Company for operations. These advances are unsecured, and bear no
interest, and due on demand.
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
- ------------------------------------------------------------------
Results of Operations for the Quarter Ended January 31, 2000
- ----------------------------------------------------------
The Company had no revenue or operations for the period. The Company
incurred no general and administrative expenses in the period in 2000 and $625
in 1999. The Company had no profit or loss on operations for the period in 2000,
but a ($625) operating loss in the quarter for 1999. There was no net profit or
loss for the period.
Results of Operations for the Nine Month Period Ended January 31, 2000
- -------------------------------------------------------------------
The Company had no revenue or operations for the nine month period ended
January 31, 2000. The Company incurred general and administrative expenses of
$3,655 the nine month period ended January 31, 2000 and $743 in 1999. The
Company incurred ($3,655) in operating loss for the nine month period ended
January 31 in 2000 compared to a ($743) loss in 1999 in the period.
The company lost ($.02) per share in the nine month period in 2000,
compared t0 a ($.003) net loss in the period in 1999.
The trend of operating losses can be expected to continue until and unless
the company acquires or merges with a profitable business.
(b) Liquidity and Capital Resources. At January 31, 2000, the Company had
$21,402 in cash or other assets with which to conduct operations. There can be
no assurance that the Company will be able to complete its business plan and to
exploit fully any business opportunity that management may be able to locate on
behalf of the Company. The Company is unable to predict the period for which it
can conduct operations. Accordingly, the Company will need to seek additional
financing through loans, the sale and issuance of additional debt and/or equity
securities, or other financing
<PAGE>
arrangements. Management believes that the Company has inadequate working
capital to pursue any operations at this time; however, loans to the Company
from management may facilitate development of the business plan. For the
foreseeable future, the Company through its management intend to pursue
acquisitions as a means to develop the Company. The Company does not intend to
pay dividends in the foreseeable future. As of the end of the reporting period,
the Company had no material cash or cash equivalents. There was no significant
change in working capital during this quarter.
(c) Year 2000 issues "Year 2000 problems" result primarily from the
inability of some computer software to properly store, recall or use data after
December 31, 1999. The Company is engaged primarily in organizational and fund
raising activities and accordingly, does not rely on information technology
("IT") systems. Accordingly the Company does not believe that it will be
materially affected by Year 2000 problems. The Company relies on non-IT systems
that may suffer from Year 2000 problems including telephone systems, facsimile
and other office machines. Moreover, the Company relies on third-parties that
may suffer from Year 2000 problems that could affect the Company's operations
including banks and utilities. In light of the Company's minimal operations, the
Company does not believe that such non-IT systems or third-party Year 2000
problems will affect the Company in a manner that is different or more
substantial than such problems affect other similarly situated companies.
Consequently, the Company does not currently intend to conduct a readiness
assessment of Year 2000 problems or develop a detained contingency plan with
respect to Year 2000 problems that may affect the Company or third-parties.
The foregoing is a "Year 2000 Readiness Disclosure" within the meaning
of the Year 2000 Information and Readiness Disclosure Act of 1998.
<PAGE>
PART II--OTHER INFORMATION
Item 1. Legal Proceedings.
- --------------------------
There are no pending legal proceedings, and the Company is not aware of any
threatened legal proceedings, to which the Company is a party or to which its
property is subject.
Item 2. Changes in Securities.
- ------------------------------
(a) There have been no material modifications in any of the instruments
defining the rights of the holders of any of the Company's registered
securities.
(b) None of the rights evidenced by any class of the Company's
registered securities have been materially limited or qualified by the issuance
or modification of any other class of the Company's securities.
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)
Item 6. Exhibits and Reports on Form 8-K.
- -----------------------------------------
(a) Exhibits
No exhibits as set forth in Regulation SB, are considered necessary for
this filing.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter for which this
report is filed.
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, as amended, the registrant caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Colorado Community Broadcasting, Inc.
Date: October 10, 2000
/s/ Victor F. Mantecon
by: ----------------------------------
Victor F. Mantecon, President
