SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended Commission File Number
----------------- ----------------------
October 31, 2000 000-30999
FAYBER GROUP, INC.
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(Exact name of registrant as specified in its charter)
Nevada 85-1542260
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(State of incorporation) (I.R.S. Employer
Identification No.)
234 Columbine, Suite 300B, Denver, CO 80206
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 422-8127
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), and (2) has been subject to the filing
requirements for at least the past 90 days.
Yes X No
----- ------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
18,675,000 common shares as of October 31, 2000
<PAGE>
I. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
FAYBER GROUP INC
Consolidated Balance Sheet
(Unaudited)
<S> <C> <C>
October Inception 4/17/00
31, 2000 to April 30, 2000
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ASSETS
Current Assets
Cash & Cash Equivalents $ 103 $ 1,500
Property, Plant and Equipment
Plant and Plant Equipment -
Equipment
Land
Buildings -
-
---------------
- -
Less Accumulated Depreciation - -
-- -
Net Fixed Assets - -
TOTAL ASSETS $ 103 $ 1,500
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ - $ 307
Accrued Expenses -
Note Payable - Stockholder -
Current Portion of Long-Term Debt -
-
Total Current Liabilities - 307
Long Term Liabilities
Notes Payable
Total Liabilities - -
Stockholders' Equity
Preferred stock, $0.0001 par value; 25,000,000 shares authorized;
no shares issued and outstanding
Common Stock. $0.0001 par value, 75,000,000 shares authorized;
18,675,000 shares issued and outstanding 1868 1,868
Additional paid-in capital -
Retained Deficit (1,765) (675)
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TOTAL STOCKHOLDERS' DEFICIT 103 1,193
---- -----
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 103 $ 1,500
=============== ===============
</TABLE>
SEE ACCOMPANYING NOTES
F-1
<PAGE>
<TABLE>
<CAPTION>
FAYBER GROUP INC
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months ended October 31,
(Unaudited)
<S> <C> <C>
2000 1999
---- ----
REVENUES
Gain/Loss on Sale of Assets -
Consulting Fees
Misc Income
Cost of Sales
--------------- ---------------
Gross Profit - -
EXPENSES
Interest - -
Office Expense - -
Professional Fees - -
Telephone & Utilities - -
-- -
Total Operating Expenses - -
NET INCOME (LOSS) $ (1,765) $ -
=============== ===============
Profit (Loss) per common share (0.00)
Weighted average number of shares outstanding 18,675,000
</TABLE>
SEE ACCOMPANYING NOTES
F-2
<PAGE>
<TABLE>
<CAPTION>
FAYBER GROUP INC
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months ended October 31,
(Unaudited)
<S> <C> <C>
2000 1999
---- ----
REVENUES
Gain/Loss on Sale of Assets -
Consulting Fees
Misc Income
Cost of Sales
--------------- ---------------
Gross Profit - -
EXPENSES
Interest - -
Office Expense 90 -
Professional Fees 1,675 -
Telephone & Utilities - -
-- -
Total Operating Expenses 1,765 -
NET INCOME (LOSS) $ (1,765) $ -
=============== ===============
Profit (Loss) per common share (0.00)
Weighted average number of shares outstanding 18,675,000
</TABLE>
SEE ACCOMPANYING NOTES
F-2
<PAGE>
<TABLE>
<CAPTION>
FAYBER GROUP, INC.
Consolidated Statement of Cash Flows
(Unaudited)
<S> <C> <C>
Six Months Ended Inception (4/17/00)
October 31, 2000 to October 31, 2000
---------------- -------------------
Cash Flows from Operating Activities:
Net Profit (Loss) $(1,765) $ -
Depreciation
Non cash expenses 368
(Decrease) Increase in Accounts Payable -
(Decrease) Increase in Accrued Expenses
(Increase) Decrease in Other Assets
(Increase) Decrease in Accounts Receivable
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Net Cash Flows Used for Operating Activities (1,398) -
Cash Flows from Investing Activities
(Purchase) Sale of Fixed Assets -
(Purchase) Sale of Note Receivable
(Purchase) Sale of Investment
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Net Cash (Used by) From Investing Activities - -
Cash Flows from Financing Activities
Increase (Decrease) in Note Payable -
Sale of Common Stock - -
Sale of Treasury Stock -
------------- -------------
Total Cash from (Used by) Financing Activities - -
Increase (Decrease) in Cash (1,398) -
-
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Cash and Cash Equivalents - Beginning of Period 1,500 -
-
-------------
Cash and Cash Equivalents - end of Period 103 -
============= =============
</TABLE>
Common stock in the amount of 3,675,000 shares were issued in exchange for legal
services rendered during the period.
SEE ACCOMPANYING NOTES
F-3
<PAGE>
<TABLE>
<CAPTION>
FAYBER GROUP INC
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
October 31, 2000
<S> <C> <C> <C> <C>
Common Stock Additional Total
Paid - In Accumulated Stockholder's
# of Shares Amount Capital Deficit Equity
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Issuance of Common Stock
for cash and services rendered 18,675,000 1,868 - 1,868
October 31, 2000 Net Loss (1,765) (1,765)
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Balances at October 31, 2000 18,675,000 1868 - (1,765) 103
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</TABLE>
SEE ACCOMPANYING NOTES
F-4
<PAGE>
Fayber Group, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
1. Summary of Significant Accounting Policies
Development Stage Company
Fayber Group, Inc. (a development stage company) (the "Company") was
incorporated under the laws of the State of Nevada on April 17, 2000. The
principal office of the corporation is 234 Columbine, Suite 300B, Denver,
Colorado 80206.
The Company was formed as a holding company for mortgage broker
subsidiaries, which it plans to acquire in the future. The Company has no
operations of mortgage broker businesses as of the date of the financial
statements. The Company's current business plan is to seek, investigate,
and, if warranted, acquire one or more mortgage broker businesses, and to
pursue other related activities intended to enhance shareholder value. The
acquisition of a business opportunity may be made by purchase, merger,
exchange of stock, or otherwise, and may encompass assets or a business
entity, such as a corporation, joint venture, or partnership. The Company
has limited capital, and it is unlikely that the Company will be able to
take advantage of possible purchases which require cash. The Company intends
to seek opportunities demonstrating the potential of profitable long term
revenues.
Accounting Method
The Company records income and expenses on the accrual method.
Fiscal Year
The board of directors has established the fiscal year of the corporation
ending April 30.
Loss per Share
Loss per share was computed using the weighted average number of shares
outstanding during the period. Shares issued to insiders in anticipation of
a public offering have been accounted for as outstanding since inception.
Financial Instruments
Unless otherwise indicated, the fair value of all reported assets and
liabilities that represent financial instruments (none of which are held for
trading purposes) approximate the carrying values of such amount.
Organization Costs
Costs to incorporate the Company were expensed as incurred.
Statement of Cash Flows
For purposes of the statement of cash flows, the Company considers all
highly liquid debt instruments purchased with an original maturity of three
months or less to be cash equivalents.
Use of Estimates
The preparation of the Company's financial statements in conformity with
generally accepted accounting principles requires the Company's management
to make estimates and assumptions that effect the amounts reported in these
financial statements and accompanying notes. Actual results could differ
from those estimates.
F-5
<PAGE>
Fayber Group, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
1. Summary of Significant Accounting Policies (continued)
Consideration of Other Comprehensive Income Items
SFAF 130 - Reporting Comprehensive Income, requires companies to present
comprehensive income (consisting primarily of net income plus other direct
equity changes and credits) and its components as part of the basic
financial statements. For the initial period ended October 31, 2000, the
Company's financial statements do not contain any changes in equity that are
required to be reported separately in comprehensive income.
Stock Basis
Shares of common stock issued for other than cash have been assigned amounts
equivalent to the fair value of the service or assets received in exchange.
2. Stockholders' Equity
Preferred Stock
As of October 31, 2000, 25,000,000 shares of the Company's $0.0001 par value
preferred stock had been authorized, of which no shares were issued and
outstanding.
Common Stock
As of October 31, 2000, 75,000,000 shares of the Company's $0.0001 par value
common stock had been authorized, of which 18,675,000 were issued and
outstanding.
3. Related Party Transactions
As of the date hereof, the President is the owner of 15,000,000 shares of
the Company's issued and outstanding common stock, constituting
approximately 80.3% of the Company's issued and outstanding common stock.
The shares were issued for total cash of $1,500 ($0.0001 per share).
As of the date hereof, the legal counsel to the company is the owner of
3,675,000 shares of the Company's issued and outstanding common stock,
constituting approximately 19.7% of the Company's issued and outstanding
common stock. The shares were issued for expenses paid by a shareholder on
behalf of the Company totaling at $368 ($0.0001 per share).
Officers and directors are reimbursed for all out-of-pocket expenses.
F-6
<PAGE>
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS FOR QUARTER
---------------------------------
RESULTS OF OPERATIONS FOR SIX MONTHS ENDED OCTOBER 31, 2000 AND CUMMULATIVE
The Company has experienced a net operating loss of $1,765 through the
second quarter of operation. There were no revenues and no continuing
operations, furthermore there are no immediate prospects for any operations. The
losses will continue until such time as the company is able to start or acquire
a going business operation.
Liquidity and Capital Resources
-------------------------------
The Company had inadequate cash capital at the end of the period.
The Company will be forced to either borrow against or sell assets or make
private placements of stock in order to fund operations. No assurance exists as
to the ability to arrange for loans or make private placements of stock.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Reports on Form 8-K were made for the period for which
this report is filed. None.
<PAGE>
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.
Date: December 14, 2000
FAYBER GROUP, INC.
/s/ BERNARD F. PRACKO, II
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BERNARD F. PRACKO, II, President
