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
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2000
Commission file number 000-30797
EAST COAST AIRLINES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 14-1818396
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
C/O Sullivan, McBride, Hess & Youngblood, P.C.
4 Tower Place, Albany, NY 12203
(Address of principal executive offices (zip code)
(518) 438-5364
(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
June 30, 2000
Common Stock, par value $0.001 526,000
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ITEM 1. FINANCIAL STATEMENTS
East Coast Airlines, Inc. - A Development Stage Company
Balance Sheets
June 30, 2000
(Unaudited) May 31, 2000
Assets
Cash $ 3,059.50 $ 475.00
--------- ---------
Total Assets $ 3,059.50 $ 475.00
========= =========
Liabilities and Shareholders' Equity
Accounts Payable $ 5,562.08 $ 3,827.00
Taxes Payable 800.00 800.00
--------- ---------
Liabilities 6,362.08 4,627.00
--------- ---------
Common Stock - $.0001 Par Value -
20,000,000 Shares Authorized -
526,000 Shares and 500,000 Shares
Outstanding at June 30 and
May 31, 2000, respectively 52.60 50.00
Paid In Capital 3,047.40 450.00
Retained Deficit (6,402.58) (4,652.00)
--------- ---------
Shareholders' Equity (3,302.58) (4,152.00)
--------- ---------
Total Liabilities and
Shareholders' Equity $ 3,059.50 $ 475.00
========= =========
See Accompanying Footnotes to Financial Statements
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East Coast Airlines, Inc. - A Development Stage Company
Statements of Loss
For the Period
Since Inception For the Three
(November 17, 1999) Months Ended For the Month
to June 30, 2000 June 30, 2000 of June 2000
Revenue $ - $ - $ -
---------- ---------- ----------
Expenses
Legal and Accounting Expense 5,562.08 5,562.08 1,735.08
Miscellaneous Expenses 40.50 40.50 15.50
Franchise Taxes 800.00 800.00 -
---------- ---------- ----------
Total Expenses 6,402.58 6,402.58 1,750.58
---------- ---------- ----------
Net Loss $ (6,402.58) $ (6,402.58) $ (1,750.58)
========== ========== ==========
Weighted Average Shares
of Common Stock 513,000 513,000 513,000
========== ========== ==========
(Loss) per Common Share $ (0.01) $ (0.01) $ -
========== ========== ==========
See Accompanying Footnotes to Financial Statements
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East Coast Airlines, Inc. - A Development Stage Company
Statements of Cash Flows
For the Period
Since Inception For the Three
(November 17, 1999) Months Ended For the Month
to June 30, 2000 June 30, 2000 of June 2000
(Uses) / Sources of Cash
Operating Cash Flow
(Loss) for period $ (6,402.58) $ (6,402.58) $ (1,750.58)
Less- Accounts Payable 5,562.08 5,562.08 1,735.08
Less- Franchise Taxes Payable 800.00 800.00 -
---------- ---------- ----------
Net Cash Used By Operations (40.50) (40.50) (15.50)
---------- ---------- ----------
Financing
Sale of Common Stock 3,100.00 3,100.00 2,600.00
---------- ---------- ----------
Net Cash From Financing 3,100.00 3,100.00 2,600.00
---------- ---------- ----------
Increase In Cash 3,059.50 3,059.50 2,584.50
Cash - Beginning - - 475.00
---------- ---------- ----------
Cash - Ending $ 3,059.50 $ 3,059.50 $ 3,059.50
========== ========== ==========
Cash Paid for Interest $ - $ - $ -
========== ========== ==========
Cash Paid for Income Taxes $ - $ - $ -
========== ========== ==========
See Accompanying Footnotes to Financial Statements
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East Coast Airlines, Inc. - A Development Stage Company
Statement of Shareholders' Equity
<TABLE>
<S> <C> <C> <C> <C> <C>
Number of Shares Common Stock Paid In Capital Deficit Total
Balance at Inception
(Mid-November, 1999) - - - - -
Sale of Common Stock 500,000 $ 50.00 $ 450.00 - $ 500.00
Deficit for the period
from Inception to
May 31, 2000 - - - $ (4,652.00) (4,652.00)
---------- ------- --------- ---------- ---------
Balance at
May 31, 2000 500,000 50.00 450.00 (4,652.00) (4,152.00)
---------- ------- --------- ---------- ---------
Sale of Common Stock 26,000 2.60 2,597.40 - 2,600.00
Deficit for the month
ended June 30, 2000 (1,750.58) (1,750.58)
---------- ------- --------- ---------- ---------
Balance at
June 30, 2000 526,000 $ 52.60 $ 3,047.40 $ (6,402.58) $(3,302.58)
========== ======= ========= ========== =========
</TABLE>
See Accompanying Footnotes to Financial Statements
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Note 1 - Organization and Summary of Significant Accounting Policies
Basis Of Presentation:
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles ("GAAP") for
interim financial information and Item 310(b) of Regulation SB. They do
not include all of the information and footnotes required by GAAP for
complete financial statements. In the opinion of management, all
adjustments (consisting only 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. For further information,
refer to the financial statements of the Company as of May 31, 2000 and
for the period since inception (November 17,1999) then ended, including
notes thereto included in the Company's Form 10-SB filed in mid-June
2000.
Organization:
The Company was incorporated in the State of Delaware on November 17,
1999.
From inception through the end of calendar year 1999, and through the
end of the first quarter of calendar year 2000, the Company was dormant
and there were no activities conducted by the Company. The Company
intends to become a fully certified Federal Aviation Regulation Part 121
air carrier.
East Coast's business purpose is to provide scheduled air service to
small and medium sized markets which have experienced either a total or
partial loss of air service as a result of shifts in emphasis by major
airlines and their regional counterparts. The Company intends to be an
independent carrier, not affiliated with any major airline.
Starting in operations in New York State, the Company intends to expand
throughout the Northeast and then to the Middle Atlantic States.
Development Stage Operations:
From inception through the end of calendar year 1999, and through the
end of the first quarter of calendar year 2000, the Company was dormant
and there were no activities conducted by the Company. Accordingly,
financial transactions were first recorded in April of calendar year
2000.
The Company is in its start-up phase and has no operating history. From
inception to June 30, 2000, the Company has not recognized any revenue;
also, the Company has not capitalized any costs associated with its
start-up.
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The Company's business is subject to most of the risks inherent in the
establishment of a new business enterprise. The likelihood of success
of the Company must be considered in light of the expenses,
difficulties, delays and unanticipated challenges encountered in
connection with the formation of a new business, raising operating and
development capital, and the marketing of a new product.
The Company presently does not have sufficient liquid assets to finance
its anticipated funding needs and obligations. If fundraising activities
are not successfully completed, the Company may not be able to meet its
obligations as they become due and, accordingly, may not be able to
continue its business operations as presently anticipated.
Income Taxes:
The Company has not recognized any provision for the tax benefits
associated with its loss from inception to June 30, 2000. Such loss may
be carried forward for tax-return purposes. However, the Company is
unable to predict the nature, timing and extent of near-term
profitability; accordingly the Company presently intends to recognize such
carryforward benefits when realized.
Note 2 - Shareholders' Equity
The Company has a single class of Common Stock with a par value of $0.0001
per June 30, 2000, 526,000 shares were issued and outstanding. The
president of the Company was issued 475,000 shares in April of 2000. The
secretary of the Company was also issued 25,000 shares in April of 2000.
Since inception, the Company issued shares of its stock to investors for
cash as follows:
Number of
Date of Issue Shares Amount
April, 2000 500,000 500
June, 2000 26,000 2,600
---------- ----------
526,000 $3,100
========== ==========
Such shares were issued without registration in reliance on exemptions in
federal securities laws, including, in part, an exemption that permits
issuance of stock up to $1 million without registration of the securities.
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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Company has registered its common stock on a Form 10-SB registration
statement filed pursuant to the Securities Exchange Act of 1934 (the
"Exchange Act") and Rule 12(g) thereof. The Company files with the
Securities and Exchange Commission periodic reports under Rule
13(a) of the Exchange Act, including quarterly reports on Form 10-QSB and
annual reports Form 10-KSB.
The Company is in the initial stages of startup and is continuing to
explore the feasibility of raising sufficient capital to implement its
business plan. The Company has been in the developmental stage since
inception (November 17, 1999).
The Company has, and will continue to have until it raises sufficient
amounts, limited capital with which to commence operational activities.
At the present time, the Company has not commenced operations or any
activities beyond the planning stage; furthermore, the Company is unable
to predict at the present time when its initial startup stage will be
complete and it will be able to commence any operational activities.
The Company has incurred only nominal accrued expenses, without revenues
to date.
Until the Company completes its business planning and commences acquiring
the assets and resources necessary to execute its business plan, it will
continue to have limited needs for additional funding. Thusfar, expenses
of its audit, legal and professional requirements, have been and continue
to be met by the proceeds from the sale of stock to initial investors. No
significant cash or funds are expected to be required for the Company to
complete its business planning. The Registrant enjoys the non-exclusive
use of office, telecommunication and incidental supplies of stationary,
provided by its Officers.
The following language is found in the notes of the Company's financial
statements at May 31, 2000 (such statements being included in a previously
filed Form 10SB):
"Note 2 - Development Stage Operations
The Company is in its start-up phase and has no operating history. The
Company's business is subject to most of the risks inherent in the
establishment of a new business enterprise. The likelihood of success of
the Company must be considered in light of the expenses, difficulties,
delays and unanticipated challenges encountered in connection with the
formation of a new business, raising operating and development capital,
and the marketing of a new product.
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The Company presently does not have sufficient liquid assets to finance
its anticipated funding needs and obligations. If fundraising activities
are not successfully completed, the Company may not be able to meet its
obligations as they become due and, accordingly, may not be able to
continue its business operations as presently anticipated.."
COMPUTER SYSTEMS REDESIGNED FOR YEAR 2000
Many existing computer programs use only two digits to identify a year in
such program's date field. These programs were designed and developed
without consideration of the impact of the change in century for which
four digits will be required to accurately report the date. If not
corrected, many computer applications could fail or create erroneous
results by or following the year 2000 ("Year 2000 Problem"). Many of the
computer programs containing such date language problems have not been
corrected by the companies or governments operating such programs. The
Company does not have operations and does not maintain computer systems.
However, it is impossible to predict what computer programs will be
affected, the impact any such computer disruption will have on other
industries or commerce or the severity or duration of a computer
disruption.
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no legal proceedings against the Company and the Company is
unaware of such proceedings contemplated against it.
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.
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ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits
There were no exhibits, subsequent to those presented in Form
10SB12G (as amended), filed by the Company during the quarter.
Exhibit 27 - Financial Data Schedule (for the quarter ended June
30, 2000) is appended to this filing
Reports on Form 8-K
There have been no reports made on Form 8-K.
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.
EAST COAST AIRLINES, INC.
By: /s/Robert J. Salluzzo
Robert J. Salluzzo, President
Dated: August 10, 2000
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[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-2000
[PERIOD-END] JUN-30-2000
[CASH] 3,059
[SECURITIES] 0
[RECEIVABLES] 0
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 0
[PP&E] 0
[DEPRECIATION] 0
[TOTAL-ASSETS] 0
[CURRENT-LIABILITIES] 3,059
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 53
[OTHER-SE] 3,047
[TOTAL-LIABILITY-AND-EQUITY] 3,059
[SALES] 0
[TOTAL-REVENUES] 0
[CGS] 0
[TOTAL-COSTS] 0
[OTHER-EXPENSES] 6,403
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] (6,402)
[INCOME-TAX] (6,402)
[INCOME-CONTINUING] 0
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (6,402)
[EPS-BASIC] (.01)
[EPS-DILUTED] (.01)
11
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