U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[X] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2000
[ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF
1934 For the transition period from . . . . to . . . .
Commission file number 333-93045
SPECIAL ACQUISITIONS, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 33-0852869
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1945 South Poplar Street, Denver, Colorado 80224
(Address of principal executive offices) (Zip Code)
(303) 758-2803
(Registrant's telephone number, including area code)
Check whether the issuer (1) filed all the reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past twelve 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 ..
The number of shares of common stock outstanding as of September 30, 2000 is
130,000 (Excluding 20,040 Rule 419 escrowed shares).
Transitional Small Business Disclosure Format (check one): Yes ... No .X.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
SPECIAL ACQUISITIONS, INC.
(A Development Stage Company)
Balance Sheet
(Unaudited)
<TABLE>
<CAPTION>
December 31, September 30,
1999 2000
<S> <C> <C>
ASSETS
Current assets
Cash $ 11,500 $ 9,800
Other assets
Deferred public offering costs 5,000 5,000
$ 16,500 $ 14,800
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accrued liabilities $ 5,000 $ 5,000
Contingencies and commitments (notes 2, 4 and 5)
Stockholders' equity
Common stock, $.001 par value per share;
10,000,000 shares authorized; 130,000 shares
issued and outstanding 130 130
Additional paid-in capital 16,870 16,870
Deficit accumulated during the development stage (5,500) (7,200)
11,500 9,800
$16,500 $14,800
</TABLE>
The accompanying notes are an integral part of this statement.
SPECIAL ACQUISITIONS, INC.
(A Development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
1999 2000 1999 2000
<S> <C> <C> <C> <C>
Expenses
Stock issued for services $ - $ - $ 1,876 $ -
Travel $ - $ - $ - $ -
Other general and administrative $ - $ - $ - $ 1,700
Net loss $ - $ $ 1,876 $ 1,700
Weighted average number of shares 124,000 130,000 124,000 130,000
Net loss per common share (0.000) (0.000} (0.015) (0.013)
</TABLE>
The accompanying notes are an integral part of this statement.
SPECIAL ACQUISITIONS, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
1999 2000 1999 2000
<S> <C> <C> <C> <C>
Cash flows from operating activities
Net loss $ $ $ - $ (1,700)
Non-cash items included in the net loss
Stock issued for services - - - -
Changes in operating assets and liabilities
Accounts payable - - - -
Net cash from operating activities - - - -
Cash flows from financing activities
Proceeds from sale of common stock - - - -
Contribution of stock by founder - - - -
Costs related to public offering - - - -
Net cash from financing activities - - - -
Increase (decrease) in cash - - - (1,700)
Cash, beginning of period 12,500 9,800 12,500 11,500
Cash, end of period 12,500 9,800 12,500 9,800
</TABLE>
The accompanying notes are an integral part of this statement.
Note 1. Basis Of Presentation
The accompanying unaudited condensed financial statements of Special
Acquisitions, Inc. (the "Company") have been prepared pursuant to the rules of
the Securities and Exchange Commission (the "SEC") for quarterly reports on
Form 10-Q and do not include all of the information and note disclosures
required by generally accepted accounting principles. These financial
statements and notes herein are unaudited, but in the opinion of management,
include all the adjustments (consisting only of normal recurring adjustments)
necessary for a fair presentation of the Company's financial position, results
of operations, and cash flows for the periods presented. These financial
statements should be read in conjunction with the Company's audited financial
statements and notes thereto included in the Company's Form SB-2 filed with
the SEC. Interim operating results are not necessarily indicative of
operating results for any future interim period or for the full year.
Note 2. Going Concern Contingency
The Company has minimal capital resources presently available to meet
obligations which normally can be expected to be incurred by similar
companies, and with which to carry out its planned activities. These
factors raise substantial doubt about the Company's ability to continue
as a going concern.
In order to begin any significant operations, the Company will have to
pursue other sources of capital, such as additional equity financing. There
is no assurance that the Company will be able to obtain such financing. The
accompanying financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
Note 3. Net Loss Per Common Share
Net loss per share is computed by dividing net loss by the weighted average
number of common shares outstanding during the period. Rule 419 escrowed
shares are not included, as the affect on net loss per share would be anti-
dilutive.
*****
Item 2. Management's Discussion and Analysis or Plan of Operation
Forward Looking Statements
This discussion may contain statements that could be deemed forward-looking
statements within the meaning of Section 21E of the Securities Exchange Act
of 1934 and the Private Securities Litigation Reform Act, which statements
are inherently subject to risks and uncertainties. Forward-looking statements
are statements that include projections, predictions, expectations or beliefs
about future events or results or otherwise are not statements of historical
fact. Such statements are often characterized by the use of qualifying words
(and their derivatives) such as "expect," "believe," "estimate," "plan,"
"project," "anticipate," or other statements concerning opinions or judgment
of the Company and its management about future events. Factors that could
influence the accuracy of such forward-looking statements include, but are
not limited to, the financial success or changing strategies of the Company's
customers, actions of government regulators, the level of market interest
rate and general economic conditions. All forward-looking statements included
herein are based on information available to the Company on the date hereof,
and the Company assumes no obligation to update any such forward-looking
statements. It is important to note that the Company's actual results could
differ materially from those in such forward-looking statements due to the
factors cited above. As a result of these factors, there can be no assurance
the Company will not experience material fluctuations in future operating
results on a quarterly or annual basis, which would materially and adversely
affect the Company's business, financial condition and results of operations.
Plan of Operation
We are a development stage entity and have neither engaged in any
operations nor generated any revenues to date. Our activity since
inception has been to raise funds through an offering of equity securities
and to look for an acquisition.
Effective July 11, 2000, we ended our public offering after having sold
20,040 shares of $.001 par value common stock at a price of $5.00 per
share, raising $100,200. The shares were offered and sold on a "best
efforts" 20,000 share minimum, 60,000 share maximum basis, pursuant to
a continuing offer over 360 days after the date of the Prospectus which
was March 20, 2000. Offering expenses incurred by the Company totaled
$1,700 and consist of escrow fees, printing, registration, and other
out-of-pocket expenses. No selling commissions were paid. None of the
offering expenses were deducted from the proceeds which have been
deposited in a Rule 419 escrow.
All of the proceeds are being placed in escrow for the purposes of merging
with a private company. In the event a merger is not consummated within 18
months of the effective date of the public offering (March 20, 2000), all of
the deposited proceeds will be returned on a pro rata basis to all investors.
By resolution of the board of directors, we cannot use any of the net
proceeds derived from the public offering for any purpose until an
acquisition has been consummated. In the event an acquisition is not
consummated within 18 months of the effective date (March 20, 2000), all
of the deposited proceeds will be returned on a pro rata basis to all
investors.
Substantially all of the Company's working capital needs after the
offering is completed will be attributable to the identification of
a suitable business to acquire, and to effectuate a business
combination with such business. Such working capital needs will be
satisfied solely from our current cash which is anticipated as
sufficient for such purposes.
Although no assurances can be made, we believe we can satisfy our
cash requirements until a merger is consummated, with our cash on hand.
Due to the possible indefinite period of time to consummate a merger and the
nature and cost of the Company's expenses related to the Company's search and
analysis of a merger, there can be no assurances that the Company's cash
requirements until a merger is consummated will be satisfied with our cash on
hand. Prior to the conclusion of the offering we currently anticipate our
expenses to be limited to accounting fees, legal fees, telephone,
mailing, filing fees, license fees, escrow agent fees, and transfer
agent fees.
PART II - OTHER INFORMATION
Item 5. Other Information
We have had some preliminary talks with potential merger candidates, however
we do not have a signed agreement or letter of intent.
In connection with a merger, it is highly likely that management and holders
of more than 5% of our outstanding securities will be required to sell, in
private transactions, a substantial portion of their holdings. Such sales
would effectuate a change in control.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit Table:
27 Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter.
[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.
SPECIAL ACQUISITIONS, INC. (Registrant)
By:/s/ Scott D. Bengfort
_______________________________ Date: 11/15/00
Scott D. Bengfort
President, Chief Executive Officer
By:/s/ Brian S. French,
_______________________________ Date: 11/15/00
Brian S. French,
Chief Financial Officer, Treasurer
SAI, 10QSB, 9/30/00
7
