<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: December 31, 1999
[ ] 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
<PAGE>3
PART I FINANCIAL INFORMATION
Balance Sheet
December 31, 1999 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
<PAGE>4
The Jarrett/Favre Driving Adventure, Inc.
Balance Sheet
December 31, 1999
ASSETS
Current assets:
Cash $ 112,554
Inventory 20,835
Prepaid expenses 1,746
----------------
Total current assets 135,135
Property and equipment, at cost, net of
accumulated depreciation of $ 33,081 463,419
----------------
Other assets 11,729
$ 610,283
================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 5,846
Accounts payable 66,381
Accrued expenses 163,761
---------------
Total current liabilities 235,988
---------------
Long-term debt 16,392
---------------
Stockholders' equity:
Common stock, $ .01 par value, 100,000,000
shares authorized, 12,620,000 shares
issued and 12,520,000 outstanding 125,485
Additional paid-in capital 1,894,684
Treasury stock (100,000)
Unearned services (840,003)
Accumulated deficit (722,263)
---------------
Total stockholders' equity 357,903
---------------
$ 610,283
===============
The accompanying notes are an
integral part of these financial statements.
<PAGE>5
The Jarrett/Favre Driving Adventure, Inc.
Statement of Operations
<TABLE>
<CAPTION>
3 Mos. Ended 3 Mos. Ended 6 Mos. Ended 6 Mos. Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1999
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Sales $ 214,348 $ - $ 290,133 $ -
Cost of sales 159,713 - 307,279 -
------------- ------------- ------------- ------------
Gross profit 54,635 - (17,146) -
Other costs and expenses:
Selling expenses 32,411 - 64,151 -
General and administrative 116,095 - 233,355 -
Depreciation and amortization 31,777 - 63,554 -
------------- ------------- ------------- ------------
Income (loss) from operations (125,648) - (378,206) -
Other income and (expenses):
Other income 11,564 - 12,524 -
Interest expense (520) - (1,072) -
------------ ------------- ------------- ------------
Income before taxes (114,604) - (366,754) -
Income taxes - - - -
------------ ------------- ------------- -----------
Net income (loss) $ (114,604) $ - $ (366,754) $ -
============= ============= ============= ============
per share information:
Basic (loss) per share $ (0.01) $ (0.03)
============= ============= ============= =============
Weighted average shares
outstanding 12,538,141 12,395,321
============= ============= ============= -============
</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>
6 Mos. Ended 6 Mos. Ended
Dec. 31, 1999 Dec. 31, 1998
<S> <C> <C>
Net (loss) $ (366,754) $ -
Adjustments to reconcile net (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 62,333 -
Equipment received in exchange for sponsorship (113,000) -
Changes in assets and liabilities:
(Increase) decrease in inventory (6,439) -
(Increase) decrease in prepaid expenses 23,264 -
(Increase) decrease in other assets 471 -
Increase (decrease) in accounts payable and
accrued expenses 165,607 -
------------ ------------
Total adjustments 132,236 -
------------ ------------
Net cash (used in) operating activities (234,518) -
Cash flows (used in) investing activities: ----------- ------------
Acquisition of property and equipment (24,620) -
----------- -----------
Net cash (used in) investing activities (24,620) -
----------- -----------
Cash flows from financing activities:
Common stock sold for cash 348,500 -
Purchase of treasury stock (100,000) -
Repayment of long term debt (2,828) -
----------- -----------
Net cash from financing activities 245,672 -
----------- -----------
Increase (decrease in cash) (13,466) -
Cash and equivalents, beginning of period 126,020 -
---------- -----------
Cash and equivalents, end of period $ 112,554 $ -
============ ===========
</TABLE>
The accompanying notes are an
integral part of these financial statements.
<PAGE>8
The Jarrett/Favre Driving Adventure, Inc.
Notes to Financial Statements
December 31, 1999
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
June 30, 1999.
Stockholders' Equity
Basic loss per share was computed using the weighted average number of
common shares outstanding.
During the six months ended December 31, 1999 the Company sold 348,500
shares of the Company's restricted common stock for cash aggregating $
348,500. The Company also purchased as treasury stock, 50,000 shares
from the Company's president and 50,000 shares from the Company's vice
president for cash in the amount of $ 100,000.
Commencement of Operations
The Company commenced operations on July 2, 1999. During the six
months ended December 31, 1999, the Company generated $ 168,416 in
revenues from track operations.
Sponsorship Revenue
During the six month period ended December 31, 1999, the company
recognized sponsorship revenue in the amount of $ 113,000. The
sponsoring corporations provided the Company with a vehicle, supplies
and equipment used in operations.
<PAGE>8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations:
Trends and Uncertainties. Demand for Jarrett/Favre's products will
be dependent on, among other things, general economic conditions,
which are cyclical in nature. Inasmuch as a major portion of
Jarret/Favre's activities will be 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.
Jarrett/Favre currently has classes planned through April of 2000.
The classes are scheduled for three(3) weekends per month. Thus far
there are over one hundred(100) students enrolled for these classes.
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
corporation 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 six months ended December 31, 1999, Jarrett/Favre acquired
plant and equipment of $24,620 resulting in net cash used in investing
activities of $24,620.
For the six months ended December 31, 1998, Jarrett/Favre had no
investing activities.
For the six months ended December 31, 1999, Jarrett/Favre sold
common stock for $348,500, purchased treasury stock of $100,000 and
repaid $2,828 of long-term debt. As a result, Jarrett/Favre had net
cash provided by financing activities of $245,672 for the six months
ended December 31, 1999.
For the six months ended December 31, 1998, Jarrett/Favre pursued no
financing activities.
On a long term basis, liquidity is dependent on continuation of
operation and receipt of revenues.
Results of Operations. For the six months ended December 31,
1999, Jarrett/Favre had sales of $290,133 and cost of sales of
$307,279 resulting in gross profit of $(17,146).
<PAGE>9
For the six months ended December 31, 1999, Jarrett/Favre had
general and administrative expenses of $233,355. These expenses
consisted primarily of salaries-officers of$60,000, salaries-other of
$83,167, payroll taxes & benefits of $17,655, professional fees of
$15,148, rent of $13,634, telephone expense of $15,807, equipment
rental of $3,617, office supplies of $3,193, postage of $4,058,
printing of $4,900, licenses and fees of $1,298, meals and
entertainment of $1,686, bank/credit card charges of $4,651, web site
expense of $3,673 and other expense of $868.
For the six months ended December 31, 1998, Jarrett/Favre had no
general and administrative expenses.
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.
<PAGE>10
PART II
OTHER INFORM4ATION
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.
<PAGE>11
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. April 20, 2000
By: /s/Timothy Shannon
---------------------
Timothy Shannon, President
<TABLE> <S> <C>
<ARTICLE> 5
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 112,554
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 20,835
<CURRENT-ASSETS> 610,283
<PP&E> 463,419
<DEPRECIATION> 33,081
<TOTAL-ASSETS> 610,283
<CURRENT-LIABILITIES> 235,988
<BONDS> 0
<COMMON> 125,485
0
0
<OTHER-SE> 232,418
<TOTAL-LIABILITY-AND-EQUITY> 610,283
<SALES> 290,133
<TOTAL-REVENUES> 290,133
<CGS> 307,279
<TOTAL-COSTS> 307,279
<OTHER-EXPENSES> (233,355)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (1,072)
<INCOME-PRETAX> (366,754)
<INCOME-TAX> 0
<INCOME-CONTINUING> (366,754)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (366,754)
<EPS-BASIC> (.03)
<EPS-DILUTED> (.03)
</TABLE>
