UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 2000
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File number 000-30927
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VANSTAR FILMS, INC.
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(Exact name of registrant as specified in charter)
Nevada 98-0209053
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3rd Floor 1622 West 7th Ave, Vancouver BC Canada V6J IS5
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(Address of principal executive offices) (Zip Code)
604 -731- 1191
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Registrant's telephone number, including area code
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(Former name, former address, and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), Yes [x ] No [ ] and (2) has been subject to such
filing requirements for the past 90 days. Yes [x ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date
Class Outstanding as of September 30, 2000
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Common Stock, $0.001 4,951,500
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<CAPTION>
INDEX
Page
Number
PART I.
<S> <C>
ITEM 1. Financial Statements ( Unaudited )...............................................3
Balance Sheets...................................................................4
September 30, 2000 and June 30, 2000
Statements of Operations
For the three months ended September 30, 2000 and 1999.....................5
and the period July 8, 1997 to September 30, 2000
Statements of Cash Flows
For the three months ended September 30, 2000 and 1999.......................6
and the period July 8, 1997 to September 30, 2000
Notes to Financial Statements....................................................7
ITEM 2. Plan of Operations...............................................................9
PART II. Signatures......................................................................10
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PART I - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheets of Vanstar Films , Inc. ( development stage
company) at September 30, 2000 and June 30, 2000, and the statements of
operations for the three months ended September 30, 2000 and 1999 and the period
July 8, 1997 (date of inception) to September 30, 2000, and the statement of
cash flows for the three months ended September 30, 2000 and 1999, and the
period from July 8, 1997 to September 30, 2000, have been prepared by the
Company's management and they do not include all information and notes to the
financial statements necessary for a complete presentation of the financial
position, results of operations, and cash flows in conformity with generally
accepted accounting principles. In the opinion of management, all adjustments
considered necessary for a fair presentation of the results of operations and
financial position have been included and all such adjustments are of a normal
recurring nature.
Operating results for the quarter ended September 30, 2000, are not necessarily
indicative of the results that can be expected for the year ending June 30,
2001.
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VANSTAR FILMS, INC.
( Development Stage Company)
BALANCE SHEETS
September 30, 2000 and June 30, 2000
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Sept 30, June 30,
2000 2000
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ASSETS
CURRENT ASSETS
Cash $ 103 $ 1,009
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Total Current Assets $ 103 $ 1,009
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LIABILITIES AND STOCKHOLDERS' DEFICIENCY
CURRENT LIABILITIES
Accounts payable - related parties $ 4,974 $ 5,032
Accounts payable 3,845 3,495
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Total Current Liabilities 8,819 8,527
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STOCKHOLDERS' DEFICIENCY
Preferred Stock
10,000,000 shares authorized at $0.001 par
value; none issued and outstanding -- --
Common stock
50,000,000 shares authorized at $0.001 par
value; 4,951,500 shares issued and outstanding 4,952 4,952
Capital in excess of par value 155,799 155,799
Deficit accumulated during the development stage (169,467) (168,269)
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Total Stockholders' Deficiency (8,716) (7,518)
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$ 103 $ 1,009
========= =========
The accompanying notes are an integral part of these
financial statements.
<PAGE>
VANSTAR FILMS INC.
( Development Stage Company)
STATEMENTS OF OPERATIONS
For the Three Months Ended September 30, 2000 and 1999
and the Period July 8, 1997 (Date of Inception) to September 30, 2000
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Three Months July 8, 1997
----------------------------- (Date of
Sept 30 Sept 30 Inception) to
2000 1999 Sept 31, 2000
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REVENUES $ -- $ -- $ 136
EXPENSES 1,198 11,024 169,603
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NET LOSS $ (1,198) $ (11,024) $ (169,467)
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NET LOSS PER COMMON
SHARE
Basic $ -- $ --
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AVERAGE OUTSTANDING
SHARES
Basic 4,951,500 4,901,500
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The accompanying notes are an integral part of these
financial statements.
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<TABLE>
<CAPTION>
( Development Stage Company)
STATEMENT OF CASH FLOWS
For the Three Months Ended September 30, 2000 and 1999
and the Period July 8, 1997 (Date of Inception) to September 30, 2000
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July 8, 1997
Sept 30, Sept 30, (Date of Inception)
2000 1999 to Sept 30, 2000
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<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES
Net loss $ (1,198) $ (11,024) $(169,467)
Adjustments to reconcile net loss to
net cash provided by operating
activities
Changes in accounts payable 292 1,103 8,819
Contributions to capital - expenses -- -- 9,655
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Net Decrease in Cash From Operations (906) (9,921) (150,993)
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CASH FLOWS FROM INVESTING
ACTIVITIES
-- -- --
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CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of common stock -- 14,230 151,096
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Net Increase (Decrease) in Cash (906) 4,309 103
Cash at Beginning of Period 1,009 983 --
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Cash at End of Period $ 103 $ 5,292 $ 103
========= ========= =========
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The accompanying notes are an integral part of these
financial statements.
<PAGE>
VANSTAR FILMS, INC.
( Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
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1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on July 8,
1997 with authorized common stock of 50,000,000 shares at $.001 par value and
10,000,000 shares of preferred stock at $.001 par value.
The preferred stock will have rights and preferences as may be determined by the
Board of Directors when issued.
The Corporation was organized for the purpose of conducting business in the
field of film development and production service.
Since its inception the company completed private placement offerings of
4,865,500 shares of its common capital stock.
The Company has been in the development stage since inception.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
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The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
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The Company has not yet adopted a policy regarding payment of dividends.
Income Taxes
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At September 30, 2000, the Company had a net operating loss carry forward of $
169,467. The tax benefit from the loss carry forward has been fully offset by a
valuation reserve because the use of the future tax benefit is undeterminable
since the Company has no operations. The operating loss expires in 2021.
Basic and Diluted Net Income (Loss) Per Share
---------------------------------------------
Basic net income (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding. Diluted net income (loss) per
share amounts are computed using the weighted average number of common shares
and common equivalent shares outstanding as if shares had been issued on the
exercise of the preferred share rights unless the exercise becomes antidilutive
and then only the basic per share amounts are shown in the report.
Comprehensive Income
--------------------
The Company adopted Statement of Financial Accounting Standards No. 130. The
adoption of this standard had no impact on the total stockholder's deficiency.
<PAGE>
VANSTAR FILMS, INC.
( Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (Continued)
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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Recent Accounting Pronouncements
--------------------------------
The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact on its financial statements.
Foreign Currency Translation
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The transactions of the Company were completed in Canadian currency which is
considered to be the functional currency. For reporting purposes the balance
sheet accounts have been translated to US currency at the exchange rate in
effect at the time, and the operating accounts at the average rates in effect
during the year. The gain or loss is included in the operating statement .
Financial Instruments
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The carrying amounts of financial instruments, including cash and accounts
payable, are considered by management to be their estimated fair values.
Estimates and Assumptions
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Management uses estimates and assumptions in preparing financial statements in
accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could vary from the estimates that were assumed in
preparing these financial statements.
3. RELATED PARTY TRANSACTIONS
The statement of changes in stockholder's equity shows a total of 4,951,500
shares of common stock issued of which 3,205,000 shares were issued to related
parties.
4. GOING CONCERN
Continuation of the Company as a going concern is dependent upon obtaining
sufficient working capital for its planned activity and the management of the
Company has developed a strategy, which it believes will accomplish this
objective through additional equity funding, and long term financing, which will
enable the Company to operate for the coming year.
<PAGE>
ITEM 2. PLAN OF OPERATIONS
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The Company's management intends to continue developing its interest in the
field of film development and production service but it does not have the
working capital to be successful in this effort.
Continuation of the Company as a going concern is dependent upon obtaining the
necessary working capital for its planned activity. The management of the
Company has developed a strategy, which they believe can obtain the needed
working capital through additional equity funding and long term debt which will
enable the Company to be successful in its planned efforts.
Liquidity and Capital Resources
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The Company will need additional working capital to finance its planned
activity.
Results of Operations
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The Company has had no operations during this reporting period.
PART 2 - SIGNATURES
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SIGNATURES
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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 there unto duly authorized.
VANSTAR FILMS, INC.
[Registrant]
Dated December 6, 2000 By /s/ G. D. Curran
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Director
