SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
May 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission file number 0-29901
BURNAM MANAGEMENT INC
(Exact name of registrant as specified in its charter)
Delaware 98-0220849
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
128 April Rd., Port Moody, B.C. V3H3M5
(Address of principal executive offices (zip code))
604/469-8901
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the last 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
Indicate the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.
Class Outstanding at May 31, 2000
Common Stock, par value $0.0001 5,000,000
<PAGE>
PART I -- FINANCIAL INFORMATION
STEPHEN J. BUSH, C.A.
Chartered Accountant
Port Moody, B.C.
Canada
ACCOUNTANT'S REVIEW REPORT
The Board of Directors
Burnam Management Inc.
Port Moody, B.C.
I have reviewed the accompanying balance sheet of Burnam Management Inc. (a
Development Stage Company), as of May 31, 2000, and the related statements of
operations, stockholders' equity, and cash flows for the quarterly period ended
May 31, 2000. The review was conducted in accordance with Canadian Statements
on Standards for accounting standards and Review Services issued by the Canadian
Institute of Chartered Accountants. There are no significant differences from
generally accepted accounting principles in the United States and the rules and
regulations promulgated by the Securities and Exchange Commission. All
information included in these financial statements is the representation of the
management of Burnam Management 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, I do not express such an opinion.
Based on my review, I am 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 financial statements for the period ended March 6, 2000 were audited by me
and I expressed an unqualified opinion on it in my report dated March 9, 2000.
I have not performed any auditing procedures since that date.
The accompanying financial statements have been prepared assuming that the
Company will continue as a development stage company. As discussed in Note 1,
the Company has been in the development stage since its inception on March 3,
2000. The Company's ability to commence operations is contingent upon its
ability to identify a prospective target business and raise the capital it will
require through the issuance of equity securities, debt securities, bank
borrowings or a combination thereof. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
/s/ Stephen J. Bush, C.A.
Chartered Accountant
Port Moody, B.C.
June 9, 2000
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
BURNAM MANAGEMENT INC
(A DEVELOPMENT STAGE COMPANY)
Balance Sheet
May 31, 2000
(Unaudited)
(With audited figures at March 6,2000 for comparison)
ASSETS
March 6,2000 May 31,2000
Incorporation Costs $ 210 $ -
TOTAL ASSETS $ 210 $ -
LIABILITIES AND STOCKHOLDER'S EQUITY
March 6,2000 May 31,2000
LIABILITIES
Total liabilities $ - $ -
STOCKHOLDER'S EQUITY
Common Stock, $.0001 par value,
100 millionshares authorized,
5,000,000 issued and outstanding 210 210
Deficit accumulated during
development stage - -
Total Stockholder's Equity 210 210
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $ 210 $ 210
See accompanying notes to financial statements.
BURNAM MANAGEMENT INC
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
May 31, 2000
(unaudited)
(With audited figures at March 6,2000 for comparison)
March 6,2000 May 31,2000
Income $ - $ -
Expenses
Organization expense - -
Total expenses - -
NET LOSS $ - $ -
See accompanying notes to financial statements.
<TABLE>
BURNAM MANAGEMENT INC
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN
STOCKHOLDER'S EQUITY
Ended May 31, 2000
(unaudited)
(With audited figures at March 6,2000 for comparison)
<CAPTION>
Deficit
Accumulated
Common During Devel-
Stock opment Stage Total
<S> <C> <C> <C>
Common stock issuance $ 210 $ - $ 210
Net losses: For the period
ended March 6,2000 - - -
For the period
ended May 31, 2000 - - -
BALANCE AT May 31, 2000 $ 210 $ - $ 210
</TABLE>
BURNAM MANAGEMENT INC
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
May 31, 2000
(unaudited)
(With audited figures at March 6,2000 for comparison)
March 6,2000 May 31,2000
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ - $ -
Adjustment to reconcile net loss
to net cash used by operating activities:
Net cash used in operating activities - -
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalized incorporation costs (210) -
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock 210 -
Net cash provided by financing activities 210 -
INCREASE(DECREASE) IN CASH
AND CASH EQUIVALENTS $ - -
CASH AND CASH EQUIVALENTS
BEGINNING OF PERIOD - -
CASH AND CASH EQUIVALENTS
END OF PERIOD $ - $ -
See accompanying notes to financial statements.
<PAGE>
BURNAM MANAGEMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MAY 31, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. SIGNIFICANT ACCOUNTING POLICIES
A. Basis of presentation
The financial statements have been prepared in accordance with
generally accepted accounting principles in Canada and are reported in US
dollars, the Company's functional currency. There are no significant
differences from generally accepted accounting principles in the United
States and the rules and regulations promulgated by the Securities and
Exchange Commission. Amounts reported in the statements of operations
and deficit and cash flows for the period ended May 31, 2000 are from the
date of the Company's incorporation, March 3, 2000.
B. Organization and Business Operations
Burnam Management, Inc. (a development stage company) ("the Company") was
incorporated in Delaware on March 3, 2000 to serve as a vehicle to effect a
merger, exchange of capital stock, asset acquisition or other business
combination with a domestic or foreign private business. At May 31, 2000,
the Company had not yet commenced any formal business operations, and all
activity to date relates to the Company's formation and proposed fund
raising.
The Company's ability to commence operations is contingent upon its ability
to identify a prospective target business and raise the capital it will
require through the issuance of equity securities, debt securities, bank
borrowings or a combination thereof.
C. Use of Estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
D. Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers all
highly liquid investments purchased with an original maturity of three
months or less to be cash equivalents.
E. Income Taxes
The Company accounts for income taxes under the Financial Accounting
Standards Board of Financial Accounting Standards No. 109, "Accounting for
Income Taxes" ("Statement 109"). Under Statement 109, deferred tax assets
and liabilities are
<PAGE>
BURNAM MANAGEMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MAY 31, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
E. Income Taxes - Cont'd
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 period ended May 31, 2000.
F. New Accounting Pronouncements
The Financial Accounting Standards Board has recently issued several new
accounting pronouncements. Statement No. 129, "Disclosure of Information
about Capital Structure" establishes standards for disclosing information
about an entity's capital structure, is effective for financial statements
for periods ending after December 15, 1998 and has been adopted by the
Company. Statement No. 130, "Reporting Comprehensive Income" establishes
standards for reporting and display of comprehensive income and its
components, and is effective for fiscal years beginning after December 15,
1997. Statement No. 131, "Disclosures about Segments of an Enterprise and
Related Information" establishes standards for the way that public business
enterprises report information about operating segments in annual financial
statements and requires that those enterprises report selected information
about operating segments in interim financial reports issued to
shareholders. It also establishes standards for related disclosures about
products and services, geographic areas, and major customers, and is
effective for financial statements for periods beginning after December 15,
1997. The Company believes that its adoption of Statements 130 and 131 will
not have a material effect on the Company's financial position or results of
operations
BURNAM MANAGEMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF MAY 31, 2000
NOTE 2 - STOCKHOLDER'S EQUITY
A. Common Stock
The Company is authorized to issue 100,000,000 shares of common stock at
$.0001 par value. The Company issued 5,000,000 shares to Gerald Ghini,
a director of the Company, pursuant to Rule 506 for an aggregate
consideration of $210.
B. STOCKHOLDER'S EQUITY cont.
At inception the Company issued 5,000,000 shares of its $.0001 par value
common stock to an officer as reimbursement of organization costs paid
by the officer. Fair value used for this transaction of $210 is based
upon the actual cost of incorporation.
NOTE 3 - RELATED PARTIES
Legal counsel to the Company is a Director of the Company .
The Company has entered into an agreement with Gerald Ghini for services
in exchange for shares of the Company's common stock. Other than
incorporation services there have been no services provided by Gerald
Ghini through the date of this report. When services are provided, the
Company will value the stock at the fair market value of the shares or
at the value of the services provided, whichever is more readily
determinable.
In addition, the Company has an agreement with the Company's President
to perform services without compensation. There have been no services
provided through the date of this report by the President. When such
services are provided, the Company will record the services at their
fair value as a capital contribution.
SIGNATURES
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.
SCOVEL MANAGEMENT INC
By: /s/ Gerald Ghini
Gerald Ghini, President
Dated: June 12, 2000.
