<PAGE>2
U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from: to:
Commission file number: 000-27251
JARRETT/FAVRE DRIVING ADVENTURE, INC.
(Exact name of Small Business Issuer in its charter)
FLORIDA 59-3564984
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
3660 Maguire Boulevard, Suite 101, Orlando Florida 32803
(Address of principal executive offices) (Zip Code)
Registrant's Telephone number, including area code: (888) 467-2231
Check mark whether the Issuer (1) has filed all reports required by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months
(or for such shorter period that the Registrant was required to file
such reports), and (2) has been subject to the filing requirements for
at least the past 90
days. YES: X NO:
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING
THE PREVIOUS FIVE YEARS
Check whether the registrant 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 the court.
YES: X NO:
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common stock, as of the last practicable date: 12,520,000
Transitional Small Business Disclosure Format. YES: NO: X
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PART I FINANCIAL INFORMATION
Balance Sheet
September 30, 2000 4
Statements of Operations 5
Statements of Cash Flows 6
Notes to Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8-9
PART II
Other Information 10
Signatures 11
Financial Data Schedule 12
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The Jarrett/Favre Driving Adventure, Inc.
Balance Sheet
September 30, 2000
ASSETS
Current assets:
Cash $ 5,117
Accounts receivable 4,838
Inventory 11,532
Prepaid expenses 50,408
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Total current assets 71,895
Property and equipment, at cost, net of
accumulated depreciation of $ 109,023 433,812
Other assets 8,540
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$ 514,247
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 5,288
Accounts payable 113,776
Accrued expenses 28,732
Accrued salaries - officers 150,000
Deferred revenue 92,987
Officer advances 55,000
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Total current liabilities 445,783
Long-term debt 20,054
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Total liabilities 465,837
Stockholders' equity:
Common stock, $ .01 par value,
100,000,000 shares authorized
13,143,500 outstanding 131,435
Additional paid-in capital 2,582,734
Subscribed shares 230,000
Unearned services (756,862)
Deficit (2,138,897)
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Total stockholders' equity 48,410
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$ 514,247
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The accompanying notes are an integral part of these financial statements.
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The Jarrett/Favre Driving Adventure, Inc.
Statement of Operations
<TABLE>
<CAPTION>
3 Mos. Ended 3 Mos. Ended
Sept. 30, Sept. 30,
2000 1999
----------- ------------
<S> <C> <C>
Sales $ 256,315 $ 75,785
Cost of sales and services 173,246 147,566
----------- -----------
Gross profit 83,069 (71,781)
Geberal and administrative
expenses:
Advertising and marketing
expense 51,113 31,740
Amortization of service
contracts 21,087 16,027
Compensation of officers 30,000 30,000
Depreciation 24,600 15,750
Salaries, wages and benefits 77,841 52,536
Rent 16,500 14,692
Professional fees 10,978 10,791
Other 29,473 9,603
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Income (loss) from operations (178,523) (252,920)
Other income and (expenses):
Other income 4,170 856
Interest income - 104
Interest expense (851) (190)
---------- -----------
Income before taxes (175,204) (252,150)
Income taxes - -
========== ===========
Net income (loss) $ (175,204) $ (252,150)
Per share information:
Basic (loss) per share $ (0.01) $ (0.02)
============ =============
Weighted average shares
outstanding 12,999,967 12,256,667
============ =============
</TABLE>
The accompanying notes are an integral
part of these financial statements.
<PAGE>6
The Jarrett/Farve Driving Adventure, Inc.
Statement of Cash Flows
<TABLE>
<CAPTION>
3 Mos. Ended 3 Mos. Ended
Sept. 30, Sept. 30,
2000 1999
<S> <C> <C>
Net (loss) $ (175,204) $ (252,150)
Adjustments to reconcile net (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 48,127 32,518
Issuance of stock in exchange for services 30,000 -
Changes in assets and liabilities:
(Increase) decrease in inventory 1,609 1,462
(Increase) decrease in prepaid expenses (3,198) 19,922
(Increase) decrease in accounts receivable (2,966) 610
Increase (decrease) in deferred revenue (15,475)
Increase (decrease) in accounts payable and
accrued expenses 67,698 30,059
------------ ------------
Total adjustments 125,795 84,571
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Net cash (used in) operating activities (49,409) (167,579)
------------ ------------
Cash flows (used in) investing activities:
Acquisition of property and equipment (31,415) (3,301)
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Net cash (used in) investing activities (31,415) (3,301)
------------ ------------
Cash flows from financing activities:
Common stock sold for cash 135,000
Loan from officer 10,000
Purchase of treasury stock -
Repayment of long term debt (1,374) (2,536)
------------ -----------
Net cash from financing activities 8,626 132,464
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Increase (decrease) in cash (72,198) (38,416)
Cash and equivalents, beginning of period 77,315 126,020
------------ -----------
Cash and equivalents, end of period $ 5,117 $ 87,604
============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
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The Jarrett/Favre Driving Adventure, Inc.
Notes to Financial Statements
September 30, 2000
Basis of Presentation
The accompanying condensed unaudited financial statements have been prepared
in accordance with U.S. generally accepted accounting principles for interim
financial information and with the instructions to form 10-GSB. Accordingly,
they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation have been included.
The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the full year. The accompanying
financial statements should be read in conjunction with the Company's form
10-KSB filed for the period ended September 30, 2000.
Stockholders' Equity
Basic loss per share was computed using the weighted average number of common
shares outstanding.
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Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations:
Trends and Uncertainties. Demand for Jarrett/Favre's products are
dependent on, among other things, general economic conditions, which
are cyclical in nature. Inasmuch as a major portion of
Jarret/Favre's activities are the receipt of revenues from its
driving school services and products, Jarrett/Favre's business
operations may be adversely affected by Jarrett/Favre's competitors
and prolonged recessionary periods.
There are no known trends, events or uncertainties that have or are
reasonably likely to have a material impact on Jarrett/Favre's short
term or long term liquidity. Sources of liquidity both internal and
external will come from the sale of Jarrett/Favre's products as well
as the private sale of the company's stock. There are no material
commitments for capital expenditure at this time.
There are no trends, events or uncertainties that have had or are
reasonably expected to have a material impact on the net sales or
revenues or income from continuing operations.
There are no significant elements of income or loss that do not arise
from Jarrett/Favre's continuing operations.
There are no known causes for any material changes from period to
period in one or more line items of Jarrett/Favre's financial
statements.
Jarrett/Favre does not anticipate any seasonality for its revenue
stream.
Capital and Source of Liquidity. Jarrett/Favre currently has no
material commitments for capital expenditures. Jarrett/Favre has no
plans for future capital expenditures such as additional race cars at
this time.
Jarrett/Favre anticipates in addition to revenues to raise additional
capital to conduct operations during the next twelve(12) months. The
company intends to raise the necessary capital through the private
sale of stock. Jarrett/Favre believes that there will be sufficient
capital from revenues and the private sale of stock to conduct
operations for the next twelve(12) months.
Presently, Jarrett/Favre's revenue comprises fifty(50) percent of the
total cash necessary to conduct operations. The remaining fifty(50)
percent of the cash necessary to conduct operations will come from the
private sale of stock. Future revenues from classes and events will
determine the amount of offering proceeds necessary to continue
operations.
The board of directors has no immediate offering plans in place. The
board of directors shall determine the amount and type of offering as
Jarrett/Favre's financial situation dictates.
For the three months ended September 30, 2000, Jarrett/Favre acquired
property and equipment of $31,415 resulting in net cash used in
investing activities of $31,415.
For the three months ended September 30, 1999, Jarrett/Favre acquired
property and equipment of $3,301 resulting in net cash used in
investing activities of $3,301
For the three months ended September 30, 2000, Jarrett/Favre repaid
$1,374 of long-term debt. Additionally, Jarrett/Favre received a loan
from an officer of $10,000. As a result, Jarrett/Favre had net cash
provided by financing activities of $8,626 for the three months ended
September 30, 2000.
For the three months ended September 30, 1999, Jarrett/Favre sold
common stock for $135,000, and repaid $2,536 of long-term debt. As a
result, Jarrett/Favre had net cash provided by financing activities of
$132,464 for the three months ended September 30, 1999.
On a long term basis, liquidity is dependent on continuation of
operation and receipt of revenues.
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Results of Operations. For the three months ended September 30,
2000, Jarrett/Favre had sales of $256,315 and cost of sales of
$173,246 resulting in gross profit of $83,069.
For the three months ended September 30, 2000, Jarrett/Favre had
general and administrative expenses of $178,523. These expenses
consisted primarily of advertising and marketing expense of $51,113,
amortization of service contracts of $21,087, compensation of officers
of $30,000, depreciation of $24,600, salaries, wages and benefits of
$77,841, rent of $16,500, professional fees of $10,978 and other
expenses of $29,473.
For the three months ended September 30, 19999, Jarrett/Favre had
sales of $75,785 and cost of sales of $147,566 resulting in gross
profit of ($71,781).
For the three months ended September 30, 1999, Jarrett/Favre had
general and administrative expenses of $252,920. These expenses
consisted primarily of advertising and marketing expense of $31,740,
amortization of service contracts of $16,027, compensation of officers
of $30,000, depreciation of $15,750, salaries, wages and benefits of
$52,536, rent of $14,692, professional fees of $10,791 and other
expenses of $9,603.
Jarrett/Favre shall focus on limiting its administrative costs.
Plan of Operation. Jarrett/Favre may experience problems;
delays, expenses and difficulties sometimes encountered by an
enterprise in Jarrett/Favre's stage of development, many of which are
beyond Jarrett/Favre's control. These include, but are not limited
to, unanticipated problems relating to additional costs and expenses
that may exceed current estimates and competition.
Jarrett/Favre is not delinquent in any of its obligations.
Jarrett/Favre intends to market its products and services utilizing
cash made available from the private sale of its securities and
operations. Jarrett/Favre's management is of the opinion that the
proceeds of the sales of its securities and future revenues will be
sufficient to pay its expenses for the next twelve months.
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PART II
OTHER INFORMATION
ITEM 1, LEGAL PROCEEDINGS.
Not applicable.
ITEM 2. CHANGES 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.
ITEM 6- EXHIBITS AND REPORTS ON FORM 8-K.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Jarrett/Favre Driving Adventure, Inc.
(Registrant)
Date. October 31, 2000
By: /s/Timothy Shannon
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Timothy Shannon, President
