U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: October 31, 2000
Commission file no.: 0-29779
Point Blank Concepts, Inc.
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(Name of Small Business Issuer in its Charter)
Florida 65-0981248
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
354 Brazilian Avenue, #5
Palm Beach, Florida 33480
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number:(561) 832-7835
Securities to be registered under Section 12(b) of the Act:
Title of each class Name of each exchange
on which registered
None None
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Securities to be registered under Section 12(g) of the Act:
Common Stock, $.0001 par value per share
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(Title of class)
<PAGE>
Indicate by 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 October 31, 2000, there are 5,500,000 shares of voting stock of
the registrant issued and outstanding.
PART I
Item 1. Financial Statements
POINT BLANK CONCEPTS, INC.
TABLE OF CONTENTS
Page
Accountants' Review Report F-1
Balance Sheet F-2
Statement of Operations and Deficit Accumulated
During the Development Stage F-3
Statement of Changes in Stockholders' Equity F-4
Statement of Cash Flows F-5
Notes to Financial Statements F-6
<PAGE>
Dorra Shaw & Dugan
Certified Public Accountants
INDEPENDENT ACCOUNTANTS' REVIEW REPORT
The Board of Directors and Stockholders
Point Blank Concepts, Inc.
Palm Beach, Florida
We have reviewed the accompanying balance sheet of Point Blank Concepts, Inc. (a
Florida corporation and a development stage company) as of October 31, 2000, and
the related statements of Operations and Deficit accumulated during the
development stage, changes in stockholders' equity, and Cash Flows for the
period February 15, 2000 (date of inception) to October 31, 2000, in accordance
with Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants. All information included in
these financial statements is the representation of the management of Point
Blank Concepts, Inc.
A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based upon our review, we are not aware of any material modifications that
should be made to the accompanying financial statements in order for them to be
in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As shown in the financial statements,
the Company has incurred net losses since its inception. The Company's financial
position and operating results raise substantial doubt about its ability to
continue as a going concern. Management's plan regarding those matters also are
described in Note D. The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
/s/ Dorra Dugan & Shaw
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Certified Public Accountants
December 12, 2000
270 South County Road * Palm Beach, FL
33480 Telephone (561) 822-9955 * Fax (561) 832-7580
Website: dsd-cpa.com
F-1
<PAGE>
<TABLE>
<CAPTION>
POINT BLANK CONCEPTS, INC.
(A Development Stage Company)
BALANCE SHEET
October 31, 2000
----------------------------------------------------------------------- ---------------
ASSETS
<S> <C>
Current Assets:
Cash $ 80
---- ------------------------------------------------------------------ ---------------
TOTAL CURRENT ASSETS 80
----------------------------------------------------------------------- ---------------
$ 80
---- ------------------------------------------------------------------ ---------------
LIABILITIES
Current Liabilities:
Accrued expenses $ -
---- ------------------------------------------------------------------ ---------------
TOTAL CURRENT LIABILITIES -
----------------------------------------------------------------------- ---------------
-
---- ------------------------------------------------------------------ ---------------
STOCKHOLDERS' EQUITY
Common stock - $.0001 par value - 50,000,000 shares authorized
5,500,000 shares issued and outstanding 550
Preferred stock - no par value - 10,000,000 shares authorized
No shares issued and outstanding -
Additional paid-in-capital 3,150
Deficit accumulated during the development stage (3,620)
---- ------------------------------------------------------------------ ---------------
TOTAL STOCKHOLDERS' EQUITY 80
----------------------------------------------------------------------- ---------------
$ 80
---- ------------------------------------------------------------------ ---------------
</TABLE>
See Accompanying Notes to Financial Statements
F-2
<PAGE>
<TABLE>
<CAPTION>
POINT BLANK CONCEPTS, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
For the period February 15, 2000 (date of inception) to October 31, 2000
------------------------------------------------------------------------------ ---------------
<S> <C> <C>
Revenues $ -
---------------------------------------------------------------- ------------- ---------------
Operating expenses:
Professional fees $ 3,500
Bank charges 120
3,620
--- ------------------------------------------------------------ ------------- ---------------
Loss before income taxes (3,620)
Income taxes -
---------------------------------------------------------------- ------------- ---------------
Net loss (3,620)
---------------------------------------------------------------- ------------- ---------------
Deficit accumulated during
the development stage - October 31, 2000 $ (3,620)
--- ------------------------------------------------------------ ------------- ---------------
Net loss per share $ (0.0006)
---------------------------------------------------------------- ------------- ---------------
</TABLE>
See Accompanying Notes to Financial Statements
F-3
<PAGE>
<TABLE>
<CAPTION>
POINT BLANK CONCEPTS,
INC.
(A Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the period February 15, 2000 (date of inception) to October 31, 2000
--------------------------------------------------------------------------------------------------------------
Additional
Number of Preferred Common Paid - In Accumulated
Shares Stock Stock Capital Deficit Total
--------- ----------- ---------- ----------- ----------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Issuance of Common Stock:
February 15, 2000 5,500,000 $ - $ 550 $ 3,050 $ - $ 3,600
September 21, 2000 100 100
----------------------------------- --------- ----------- ---------- ----------- ----------------- -----------
Net Loss - - - (3,620) (3,620)
----------------------------------- --------- ----------- ---------- ----------- ----------------- -----------
5,500,000 $ - $ 550 $ 3,150 $ (3,620) $ 80
--- ------------------------------- --------- ----------- ---------- ----------- ----------------- -----------
</TABLE>
See Accompanying Notes to Financial Statements
F-4
<PAGE>
<TABLE>
<CAPTION>
POINT BLANK CONCEPTS, INC.
(A Development Stage Company)
Statement of Cash Flows
For the period February 15, 2000 (date of inception) to October 31, 2000
------------------------------------------------------------------- ----------
<S> <C>
Operating Activities:
Net loss $ (3,620)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in:
Issuance of common stock for services 2,500
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Net cash used by operating activities (1,120)
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Financing activities:
Issuance of Common Stock 1,200
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Net cash provided by financing activities 1,200
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Net increase in cash 80
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Cash - October 31, 2000 $ 80
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</TABLE>
See Accompanying Notes to Financial Statements
F-5
<PAGE>
Note A - Summary of Significant Accounting Policies:
Organization
Point Blank Concepts, Inc. (a development stage company) is a Florida
Corporation incorporated on February 15, 2000.
The Company conducts business from its headquarters in Palm Beach, FL. The
Company has not yet engaged in its expected operations. The future operations
will be to merge with or acquire an existing company.
The Company is in the development stage and has not yet acquired the necessary
operating assets; nor has it begun any part of its proposed business. While the
Company is negotiating with prospective personnel and potential customer
distribution channels, there is no assurance that any benefit will result from
such activities. The Company will not receive any operating revenues until the
commencement of operations, but will continue to incur expenses until then.
Accounting Method
The Company's financial statements are prepared using the accrual method of
accounting. The Company has elected a January 31 year-end.
Start - Up Costs
Start - up and organization costs are being expensed as incurred.
Loss Per Share
The computation of loss per share of common stock is based on the weighted
average number of shares outstanding at the date of the financial statements.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
Interim Financial Statements
The October 31, 2000 interim financial statements include all adjustments, which
in the opinion of management are necessary in order to make the financial
statements not misleading.
Note B - Stockholders' Equity:
The Company has authorized 50,000,000 shares of $.0001 par value common stock.
On February 15, 2000, the company authorized and issued 5,500,000 shares of
restricted common stock to two investors for $1,100 in cash plus service valued
at $2,500. On September 21, 2000, the Company received $100 of additional
paid-in capital.
F-6
<PAGE>
Note B - Stockholders' Equity (con't):
In addition, the Company authorized 10,000,000 shares of no par value preferred
stock with the specific terms, conditions, limitations and preferences to be
determined by the Board of Directors. None of the preferred stock is issued and
outstanding as of October 31, 2000.
Note C - Income Taxes:
The Company has a net operating loss carry forward of $3,620 that may be offset
against future taxable income. If not used, the carry forward will expire in
2020.
The amount recorded as deferred tax assets, cumulative, as of October 31, 2000
is $700, which represents the amounts of tax benefits of loss carry-forwards.
The Company has established a valuation allowance for this deferred tax asset of
$700, as the Company has no history of profitable operations.
Note D - Going Concern:
As shown in the accompanying financial statements, the Company incurred a net
loss of $3,620 from February 15, 2000 (date of inception) through October 31,
2000. The ability of the Company to continue as a going concern is dependent
upon commencing operations and obtaining additional capital and financing. 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 is currently
seeking a merger partner or an acquisition candidate to allow it to begin its
planned operations.
F-7
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation
The Company is considered a development stage company with limited
assets or capital, and with no operations or income. The costs and expenses
associated with the preparation and filing of this registration statement and
other operations of the Company have been paid for by a shareholder,
specifically Thomas V. Flynn. Thomas V. Flynn has agreed to pay future costs
associated with filing future reports under Exchange Act of 1934 if the Company
is unable to do so. It is anticipated that the Company will require only nominal
capital to maintain the corporate viability of the Company and any additional
needed funds will most likely be provided by the Company's existing shareholders
or its sole officer and director in the immediate future. Current shareholders
have not agreed upon the terms and conditions of future financing and such
undertaking will be subject to future negotiations, except for the express
commitment of Thomas V. Flynn to fund required 34 Act filings. Repayment of any
such funding will also be subject to such negotiations. However, unless the
Company is able to facilitate an acquisition of or merger with an operating
business or is able to obtain significant outside financing, there is
substantial doubt about its ability to continue as a going concern.
In the opinion of management, inflation has not and will not have a
material effect on the operations of the Company until such time as the Company
successfully completes an acquisition or merger. At that time, management will
evaluate the possible effects of inflation on the Company as it relates to its
business and operations following a successful acquisition or merger.
Management plans may but do not currently provide for experts to
secure a successful acquisition or merger partner so that it will be able to
continue as a going concern. In the event such efforts are unsuccessful,
contingent plans have been arranged to provide that the current Director of the
Company is to fund required future filings under the 34 Act, and existing
shareholders have expressed an interest in additional funding if necessary to
continue the Company as a going concern.
Plan of Operation
During the next twelve months, the Company will actively seek out and
investigate possible business opportunities with the intent to acquire or merge
with one or more business ventures. In its search for business opportunities,
management will follow the procedures outlined in Item 1 above. Because the
Company has limited funds, it may be necessary for the sole officer and director
to either advance funds to the Company or to accrue expenses until such time as
a successful business consolidation can be made. The Company will not be make it
a condition that the target company must repay funds advanced by its officers
and directors. Management intends to hold expenses to a minimum and to obtain
services on a contingency basis when possible. Further, the Company's directors
will defer any compensation until such time as an acquisition or merger can be
accomplished and will strive to have the business opportunity provide their
remuneration. However, if the Company engages outside advisors or consultants in
its search for business opportunities, it may be necessary for the Company to
attempt to raise additional funds. As of the date hereof, the Company has not
made any arrangements or definitive agreements to use outside advisors or
consultants or to raise any capital. In the event the Company does need to raise
capital most likely the only method available to the Company would be the
private sale of its securities. Because of the nature of the Company as a
development stage company, it is unlikely that it could make a public sale of
securities or be able to borrow any significant sum from either a commercial or
private lender.
<PAGE>
There can be no assurance that the Company will able to obtain additional
funding when and if needed, or that such funding, if available, can be obtained
on terms acceptable to the Company.
The Company does not intend to use any employees, with the possible
exception of part- time clerical assistance on an as-needed basis. Outside
advisors or consultants will be used only if they can be obtained for minimal
cost or on a deferred payment basis. Management is convinced that it will be
able to operate in this manner and to continue its search for business
opportunities during the next twelve months.
PART II
Item 1. Legal Proceedings.
The Company is currently not a party to any pending legal proceedings
and no such action by, or to the best of its knowledge, against the Company has
been threatened.
Item 2. Changes in Securities and Use of Proceeds
None
Item 3. Defaults in Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders.
No matter was submitted during the quarter ending October 31, 2000,
covered by this report to a vote of the Company's shareholders, through the
solicitation of proxies or otherwise.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) The exhibits required to be filed herewith by Item 601 of Regulation
S-B, as described in the following index of exhibits, are incorporated
herein by reference, as follows:
Exhibit No. Exhibit Name
----------- -----------------------------------
3(i).1 Articles of Incorporation filed February 15, 2000(1)
3(ii).1 By-laws (1)
27 * Financial Data Schedule
----------------
* Filed herein
Item 2. Description of Exhibits
See Item 1 above.
<PAGE>
Signatures
In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
there unto duly authorized.
Point Blank, Inc.
(Registrant)
Date: December 14, 2000 BY: /s/ Thomas V. Flynn
------------------------
Thomas V. Flynn, President
In accordance with the Exchange Act, this report has been signed below
by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.
Date Signature Title
December 14, 2000 BY: /s/ Thomas V. Flynn
------------------------
Thomas V. Flynn President, Secretary,
Treasurer and Director
