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: July 31, 1999
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 July 31, 1999, 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
<S> <C> <C>
(Unaudited)
July 31, April 30,
1999 1999
-------------- -------------
ASSETS:
Current Assets:
Cash $ 24,757 $ 15,057
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TOTAL ASSETS $ 24,757 $ 15,057
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LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts Payable $ 250 $ 250
Short-term Borrowings 1,100 1,100
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Total Current Liabilities 1,350 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 (3,343) (2,793)
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Total Stockholders' Equity 23,407 13,707
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 24,757 $ 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)
Three Month For the March 16, 1998
Period Ended Year Ended (Inception) thru
July 31, April 30, July 31,
1999 1999 1999
---------------- --------------- --------------
<S> <C> <C> <C>
Revenue $ - $ - $ -
Expenses:
Professional Fees 550 2,000 2,550
Bank Charges - 80 80
Telephone - 50 50
Administrative Expenses - 38 38
Travel - 625 625
---------------- --------------- --------------
Total Expenses 550 2,793 3,343
---------------- --------------- --------------
Net Loss $ (550) $ (2,793) $ (3,343)
================ =============== ==============
Net Loss Per Share $ (0.01) $ (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>
Colorado Community Broadcasting, Inc.
(A Development Stage Company)
Statements of Operations
(Unaudited)
For the Three Month
Period Ended July 31,
1999 1998
---- ----
Revenue $ - $ -
Expenses:
Professional Fees 550 -
Bank Charges - -
Telephone - -
Administrative - -
------- -------
Total Expenses 550 -
------- -------
Net Loss $ (550) $ -
======= =======
Net Loss per share $(0.01) $ -
======= =======
Weighted average number of
common shares outstanding 225,000 -
======= =======
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 Cash Flows
(Unaudited)
For the
Three Month For the March 16, 1998
Period Ended Year Ended (Inception) thru
July 31, April 30, July 31,
1999 1999 1999
--------------- -------------- ---------------
<S> <C> <C> <C>
Cash Flows from Operating Activities:
Net Loss Accumulated During the
Development Stage $ (550) $ (2,793) $ (3,343)
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 (550) (543) (1,093)
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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 9,700 15,057 24,757
Cash at beginning of period 15,057 - -
--------------- -------------- ---------------
#
Cash at end of period $ 24,757 $ 15,057 $ 24,757
=============== ============== ===============
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 JULY 31, 1999 AND 1998
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 JULY 31, 1999 AND 1998
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 $3,343
Valuation allowance for deferred tax assets (3,343)
---------
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.
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 July 31, 1999
- ----------------------------------------------------------
The Company had no revenue or operations for the period. The Company
incurred $550 in general and administrative expenses in the period in 1999.
The Company had a or loss on operations for the period in 1999, of ($550).
The Company incurred operating loss for the three month period ended July
31, 1999 of ($550) or ($.01) per share.
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 July 31, 1999, the Company had
$24,757 cash 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 significant operations at this time; however, loans to the
Company from management may facilitate development of the business plan. The
Company does not intend to pay dividends in the foreseeable future. As of the
end of the reporting period, the Company had $24,757 in 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.
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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.
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(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.
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(Not applicable)
Item 4. Submission of Matters to a Vote of Security Holders.
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(Not applicable)
Item 5. Other Information.
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(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
