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 MARCH 31, 2000
[ ] Transition report under section 13 or 15(d)
of the Exchange Act.
COMMISSION FILE NUMBER 0-28537
BIG FUN TOYS, INC.
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(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
DELAWARE 95-4737488
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(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
22147 PACIFIC COAST HIGHWAY, #4, MALIBU, CA 90265
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(310) 317-6939
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(ISSUER'S TELEPHONE NUMBER)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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 May 8, 2000, there were 750,000 shares of Common Stock, $0.001 par
value, of the issuer outstanding.
Transitional Small Business Disclosure Format (check one)
YES NO X
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<PAGE>
BIG FUN TOYS, INC.
(A DEVELOPMENT STAGE COMPANY)
INDEX
PART I. FINANCIAL INFORMATION PAGE NUMBER
Item 1. Financial Statements
BALANCE SHEET AS OF MARCH 31, 2000 2
STATEMENTS OF OPERATIONS FOR THE THREE
MONTHS ENDED MARCH 31, 2000 AND FOR THE
PERIOD FROM MAY 9, 1997 (INCEPTION) TO
MARCH 31, 2000 3
STATEMENTS OF CASH FLOWS FOR THE THREE
MONTHS ENDED MARCH 31, 2000 AND FOR THE
PERIOD FROM MAY 9, 1997 (INCEPTION) TO
MARCH 31, 2000 4
NOTES TO FINANCIAL STATEMENTS 5-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports filed on Form 8-K 8
Signatures 9
1
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BIG FUN TOYS, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
ASSETS
MARCH 31,
DECEMBER 31, 2000
1999 (UNAUDITED)
-------------- -------------
CURRENT ASSETS
Cash $ 11 $ -
-------------- -------------
TOTAL ASSETS $ 11 $ -
- ------------
============== =============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
LIABILITIES
Loan payable to principal $ 370 $ 8,520
stockholder
-------------- ------------
STOCKHOLDERS' DEFICIENCY
Preferred stock, $0.001 par
value, 8,000,000 shares
authorized, none issued and
outstanding - -
Common stock, $0.001 par value,
100,000,000 shares authorized,
750,000 issued and outstanding 750 750
Additional paid-in capital 260 260
Accumulated deficit during
development stage (1,369) (9,530)
-------------- ------------
TOTAL STOCKHOLDERS' DEFICIENCY (359) (8,520)
-------------- ------------
TOTAL LIABILITIES AND
- ----------------------
STOCKHOLDERS' DEFICIENCY $ 11 $ -
- -------------------------
============== ============
See accompanying notes to financial statements
2
<PAGE>
BIG FUN TOYS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
(UNAUDITED)
MAY 9, 1997 FOR THE THREE
(INCEPTION) TO MONTHS ENDED
MARCH 31, 2000 MARCH 31, 2000
--------------- ----------------
REVENUES $ - $ -
--------------- ----------------
EXPENSES
Accounting fees 2,500 2,000
Bank charges 131 11
Consulting fees 10 -
Legal fees 3,500 3,000
Taxes 239 -
Office & postage expense 750 750
2,400 2,400
--------------- ----------------
NET LOSS $ (9,530) $ (8,161)
- -------- =============== ================
Net loss per share - basic
and diluted $ (0.0190) $ (0.0109)
=============== ================
Weighted average number of
shares outstanding during
the period - basic and diluted 502,245 750,000
=============== ================
See accompanying notes to financial statements
3
<PAGE>
BIG FUN TOYS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
MAY 9, 1997 FOR THE THREE
(INCEPTION) TO MONTHS ENDED
MARCH 31, 2000 MARCH 31, 2000
------------------ ----------------
Cash flows from operating
activities
Net loss $ (9,530) $ (8,161)
Adjustments to reconcile net
loss to net cash used in
operating activities:
Common stock issued for
services 10 -
------------------ ----------------
Net cash used in operating
activities (9,520) (8,161)
------------------ ----------------
Cash flows from financing
activities
Proceeds from issuance of
common stock 1,000 -
Loan proceeds from principal
stockholder 8,520 8,150
------------------ ----------------
Net cash provided by financing
activities 9,520 8,150
------------------ ----------------
NET DECREASE IN CASH - (11)
CASH AND CASH EQUIVALENTS -
BEGINNING - -
------------------ ----------------
CASH AND CASH EQUIVALENTS -
ENDING $ - -
------ ================== ================
See accompanying notes to financial statements
4
<PAGE>
BIG FUN TOYS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MARCH 31, 2000
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(A)Organization and Description of Business
Big Fun Toys, Inc. (a development stage company) (the "Company")
was incorporated in the State of Delaware on May 9, 1997 to engage
in an internet-based business. At March 31, 2000, the Company had
not yet commenced any revenue-generating operations, and all
activity to date relates to the Company's formation, proposed fund
raising and business plan development.
The Company's ability to commence revenue-generating operations is
contingent upon its ability to implement its business plan and
raise the additional capital it will require through the issuance
of equity securities, debt securities, bank borrowings or a
combination thereof.
(B) Basis of Presentation
The accompanying unaudited financial statements have been prepared
in accordance with generally accepted accounting principles and
the rules and regulations of the Securities and Exchange
Commission for interim financial information. Accordingly, they do
not include all the information necessary for a comprehensive
presentation of financial position and results of operations.
It is management's opinion, however that all material adjustments
(consisting of normal recurring adjustments) have been made which
are necessary for a fair financial statements presentation. The
results for the interim period are not necessarily indicative of
the results to be expected for the year.
In addition, the accompanying financial statements do not include
the statement of operations or cash flows for the three months
ended March 31, 1999 since the Company was inactive during this
period.
For further information, refer to the financial statements and
footnotes included in the Company's Form 10-KSB for the year ended
December 31, 1999.
5
<PAGE>
BIG FUN TOYS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MARCH 31, 2000
(C) Use of Estimates
In preparing financial statements in conformity with generally
accepted accounting principles, management is required to make
estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the financial statements and revenues
and expenses during the reported period. Actual results could
differ from those estimates.
(D) Cash and Cash Equivalents
For purposes of the cash flow statements, the Company considers
all highly liquid investments with original maturities of three
months or less at time of purchase to be cash equivalents.
(E) Income Taxes
The Company accounts for income taxes under the Financial
Accounting Standards Board Statement of Financial Accounting
Standards No. 109. "Accounting for Income Taxes" ("Statement
No.109"). Under Statement No. 109, deferred tax assets and
liabilities are recognized for the future tax consequences
attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their
respective tax basis. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are
expected to be recovered or settled. Under Statement 109, the
effect on deferred tax assets and liabilities of a change in tax
rates is recognized in income in the period that includes the
enactment date. There were no current or deferred income tax
expenses or benefits due to the Company not having any material
operations for the three months ended March 31, 2000.
(F) Loss Per Share
Net loss per common share for the three months ended March 31, 2000
and for the period from May 9, 1997 (inception) to March 31, 2000
is computed based upon the weighted average common shares
outstanding as defined by Financial Accounting Standards No. 128
"Earnings Per Share". There were no common stock equivalents
outstanding at March 31, 2000.
6
<PAGE>
BIG FUN TOYS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MARCH 31, 2000
NOTE 2 LOAN PAYABLE TO STOCKHOLDER
The loan payable to stockholder is a non-interest-bearing loan
payable to PageOne Business Productions, LLC. The amount is due and
payable on demand.
NOTE 3 STOCKHOLDERS' DEFICIENCY
The Company was originally authorized to issue 2,000 shares of common
stock at no par value. The Company issued 900 and 1,100 shares to
AppleTree Investment Company, Ltd. and PageOne Business Productions,
LLC, respectively.
Management subsequently filed an amendment to the articles of
incorporation with the State of Delaware, which increased the number
of authorized common shares to 100,000,000, effected a 375 to 1 split
of the 2,000 previously issued common shares and created 8,000,000
authorized shares of preferred stock, of which the issuance, rights
and other terms are to be determined by the Company's Board of
Directors. In addition, the par value of the common stock was changed
to $0.001 per share and the par value of the new preferred stock was
set at $0.001 per share.
The financial statements at March 31, 2000 give effect to common
stock split, new authorized share amounts, and par values enumerated
in the amended certificate of incorporation. No preferred shares have
been issued as of March 31, 2000.
NOTE 4 GOING CONCERN
As reflected in the accompanying financial statements, the Company
has accumulated losses of $9,530 since inception, a working capital
deficiency of $8520 and has not generated any revenues since it has
not yet implemented its business plan. The ability of the Company to
continue as a going concern is dependent on the Company's ability to
raise additional capital and implement its business plan. The
financial statements do not include any adjustments that might be
necessary if the Company is unable to continue as a going concern.
The Company intends to implement its business plan and is seeking
funding through the private placement of its equity or debt
securities or may seek a combination with another company already
engaged in its proposed business.
Management believes that actions presently being taken provide the
opportunity for the Company to continue as a going concern.
7
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
RESULTS OF OPERATIONS
- ---------------------
The following discussion and analysis below should be read in conjunction
with the financial statements, including the notes thereto, appearing elsewhere
in this report. For the period since inception (May 9, 1997) through March 31,
2000, during the Company's development stage, the Company has a zero cash
balance, and has generated a net loss of ($9,530).
FINANCIAL CONDITION AND LIQUIDITY
- ---------------------------------
The Company has a working capital deficiency of $8,520 and has an ongoing
need to finance its activities. To date, the Company currently has funded these
cash requirements by offering and selling its Common Stock, in addition to cash
advances from a stockholder. The Company expects to fund its immediate needs
through private placements of its securities and may seek a suitable business
combination. Operating costs for the current period were funded by a loan from a
stockholder.
PLAN OF OPERATION
The Company has registered a dot.com name and has determined it can begin
conducting its business with limited financing that it has arranged.
PART II OTHER INFORMATION
Item 6. Exhibits and Reports filed on Form 8-K
(a) Exhibits
Exhibit No. Description
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27 Financial Data Schedule
(b) Reports on Form 8-K
None.
8
<PAGE>
SIGNATURES
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In accordance with the requirements of the Securities Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
BIG FUN TOYS, INC.
------------------
Registrant
May 15, 2000 By: /s/ James Walters
------------ --------------------------------
James Walters
Chief Financial Officer
(Principal Financial Officer)
9
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ---------- -----------
27 Financial Data Schedule
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<ARTICLE> 5
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 8,520
<BONDS> 0
0
0
<COMMON> 750
<OTHER-SE> (9,270)
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 8,161
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (8,161)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,161)
<EPS-BASIC> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
