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 for the quarterly period ended September 30, 2000.
[ ] Transition report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the transition period from ------------ to --------------
Commission file number: 000-30516
ARBOR, INC.
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(Exact name of small business issuer as specified in its charter)
Nevada
(State or other jurisdiction of 88-0448920
incorporation or organization) (I.R.S. Employer Identification No.)
28 Lavalencia Garden, N.E.,
Calgary, AB T1Y 6P4
------------------------------------------
(Address of principal executive office) (Zip Code)
(780) 452-2587
----------------------
(Issuer's telephone number)
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 XX No -----
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
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(A Development Stage Company)
FINANCIAL STATEMENTS
September 30, 2000
December 31, 1999
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITORS' REPORT 2
ASSETS 3
LIABILITIES AND STOCKHOLDERS' EQUITY 4
STATEMENT OF OPERATIONS 4
STATEMENT OF STOCKHOLDERS' EQUITY 5
STATEMENT OF CASH FLOWS 6
NOTES TO FINANCIAL STATEMENTS 7-11
INDEPENDENT AUDITORS' REPORT
Board of Directors November 1, 2000
ARBOR, INC.
Calgary, Alberta, Canada
I have audited the accompanying Balance Sheets of ARBOR, INC. (formerly E
INVESTMENTS, INC.), (A Development Stage Company), as of September 30, 2000, and
December 31, 1999, and the related Statements of Operations, Stockholders'
Equity and Cash Flows for the periods January 1, 2000, to September 30, 2000,
and February 25, 1999, (inception), to December 31, 1999. These Financial
Statements are the responsibility of the Company's management. My responsibility
is to express an opinion on these Financial Statements, based on my audit.
I conducted my audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the Financial Statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the Financial Statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the Financial Statements referred to above present fairly,
in all material respects, the financial position of ARBOR, INC. (formerly E
INVESTMENTS, INC.), (A Development Stage Company), as of September 30, 2000, and
December 31, 1999, and the results of its operations and cash flows for the
periods January 1, 2000, to September 30, 2000, and February 25, 1999,
(inception), to December 31, 1999, in conformity with generally accepted
accounting principles.
The accompanying Financial Statements have been prepared assuming the
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Company will continue as a going concern. As discussed in Note #5 in the "Notes
to the Financial Statements," the Company has had no operations and has no
established source of revenue. This raises substantial doubt about its ability
to continue as a going concern. Management's plans, in regard to these matters,
are also described in Note #5. The Financial Statements do not include any
adjustments that might result from the outcome of this uncertainty.
__________________________
Barry L. Friedman
Certified Public Accountant
1582 Tulita Drive
Las Vegas, Nevada 89123
(702) 361-8414
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
BALANCE SHEET
ASSETS
<TABLE>
<CAPTION>
September December
30, 2000 31, 1999
<S> <C> <C>
CURRENT ASSETS
Cash $ 8,167 $ 21,295
TOTAL CURRENT ASSETS $ 8,167 $ 21,296
OTHER ASSETS $ 0 $ 0
TOTAL OTHER ASSETS $ 0 $ 0
TOTAL ASSETS $ 8,167 $ 21,296
</TABLE>
The accompanying notes are an integral part of these financial statements
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
BALANCE SHEET
3
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LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September December
30, 2000 31, 1999
<S> <C> <C>
CURRENT LIABILITIES
Officer's Advances $ 1,000 $ 0
TOTAL CURRENT LIABILITIES $ 1,000 $ 0
STOCKHOLDERS' EQUITY (Note #4)
Common stock, $.001 par value
Authorized 25,000,000 shares
Issued and outstanding at
December 31, 1999 - 2,616,000 shs $ 2,616
September 30, 2000 - 2,616,000 shs $ 2,616
Additional paid in capital 128,184 128,184
Deficit accumulated during
the development stage -123,633 -109,504
TOTAL STOCKHOLDERS' EQUITY $ 7,167 $ 21,296
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 8,167 $ 21,296
</TABLE>
The accompanying notes are an integral part of these financial statements
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Jan. 1, Feb. 25, Feb. 25, 1999
2000, to 1999, to (Inception)
Sep. 30, Dec. 31, to Sep. 30,
2000 1999 2000
<S> <C> <C> <C>
INCOME
Revenue $ 0 $ 0 $ 0
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EXPENSES
Accounting Fees $ 2,000 $ 825 $ 2,825
Bank Charges 72 79 151
Consulting Fees 3,500 26,600 30,100
Directors' Expense 3,000 0 3,000
Legal 2,000 0 2,000
Registration Costs 707 13,000 13,707
Telephone 200 0 200
Transfer Fees 650 0 650
Travel Expense 2,000 9,000 11,000
Services 0 60,000 60,000
TOTAL EXPENSES $ 14,129 $ 109,504 $ 123,633
Net Loss $ -14,129 $ -109,504 $ -123,633
Net loss per share -
Basic $ -.0054 $ -.4186 $ -.4726
Diluted $ -.0035 $ -.2716 $ -.3066
Weighted average
number of common
shares outstanding 2,616,000 2,616,000 2,616,000
Assuming average
number of diluted
shares outstanding 4,032,000 4,032,000 4,032,000
</TABLE>
The accompanying notes are an integral part of these financial statements
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Additional Accumu-
Common Stock paid-in lated
Shares Amount Capital Deficit
<S> <C> <C> <C> <C>
April 5, 1999
Issued for services 1,200,000 $ 1,200 $ 58,800
April 5, 1999
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Issued for cash 1,416,000 1,416 69,384
Net loss,
February 25, 1999
(Inception) to
December 31, 1999 $ -109,504
Balance,
December 31, 1999 2,616,000 $ 2,616 $ 128,184 $ -109,504
Net loss,
January 1, 2000
to September 30, 2000 -14,129
Balance,
September 30, 2000 2,616,000 $ 2,616 $ 128,184 $ -123,633
</TABLE>
The accompanying notes are an integral part of these financial statements
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
Jan. 1, Feb. 25, Feb. 25, 1999
2000, to 1999, to (Inception)
Sep. 30, Dec. 31, to Sep. 30,
2000 1999 2000
<S> <C> <C> <C>
Cash Flows from
Operating Activities
Net loss $ -14,129 $ -109,504 $ -123,633
Issuance of common stock
for services 0 +60,000 +60,000
Changes in Assets
And Liabilities
Officer's Advances +1,000 0 +1,000
Net Cash Flows from
Operating Activities $ -13,129 $ -49,504 $ -62,633
Cash flows from
Investing Activities $ 0 $ 0 $ 0
Cash Flows from
Financing Activities
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Issuance of common
stock for cash $ 0 $ +70,800 $ +70,800
Net Cash Flows from
Financing Activities $ 0 $ +70,800 $ +70,800
Net increase in cash $ -13,129 $ +21,296 $ +8,167
Cash,
Beginning of period 21,296 0 0
Cash,
End of period $ 8,167 $ 21,296 $ 8,167
</TABLE>
The accompanying notes are an integral part of these financial statements
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000, and December 31, 1999
NOTE #1 - HISTORY AND ORGANIZATION OF THE COMPANY
The Company was organized February 25, 1999, under the laws of the State of
Nevada, as E INVESTMENTS, INC. The Company currently has no operations and,
in accordance with SFAS #7, is considered a development stage company. On
December 16, 1999, the Company changed its name to ARBOR, INC.
NOTE #2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Method
The Company records income and expenses on the accrual method.
Estimates
The preparation of Financial Statements, in conformity with generally
accepted accounting principles, requires management to make estimates and
assumptions which 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 revenue and expenses
during the reporting period. Actual results could differ from those
estimates.
Cash and Equivalents
The Company maintains a cash balance in a non-interest-bearing bank, which
currently does not exceed federally insured limits. For the purpose of the
statements of cash flows, all highly liquid investments, with the maturity
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of three months or less, are considered to be cash equivalents. There are
no cash equivalents as of December 31, 1999, or September 30, 2000.
Income Taxes
Income taxes are provided for using the liability method of accounting in
accordance with Statement of Financial Accounting Standards No. 109 (SFAS
#109) "Accounting for Income Taxes". A deferred tax asset or liability is
recorded for all temporary difference between financial and tax reporting.
Deferred tax expense (benefit) results from the net change during the year
of deferred tax assets and liabilities.
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000, and December 31, 1999
NOTE #2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Reporting on Costs of Start-Up Activities
Statement of Position 98-5 ("SOP 98-5"), "Reporting on the Costs of
Start-Up Activities," which provides guidance on the financial reporting of
start-up costs and organization costs. It requires most costs of start-up
activities and organization costs to be expensed, as incurred. SOP 98-5 is
effective for fiscal years beginning after December 15, 1998. With the
adoption of SOP 98-5, there has been little or no effect on the Company's
Financial Statements.
Net loss per share is provided in accordance with Statement of Financial
Accounting Standards No. 128 (SFAS #128) "Earnings Per Share". Basic loss
per share is computed by dividing losses available to common stockholders
by the weighted average number of common shares outstanding during the
period. Diluted loss per share reflects per-share amounts that would have
resulted if dilutive common stock equivalents had been converted to common
stock. There are 1,416,000 warrants outstanding (See Note #4).
Year End
The Company has selected December 31st, as its year-end.
Year 2000 Disclosure
The Y2K issue had no effect on this Company.
Policy in Regards to Issuance of Common Stock in a Non-Cash
Transaction
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The Company's accounting policy for issuing shares in a non- cash
transaction is to issue the equivalent amount of stock equal to the fair
market value of the assets or services received.
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000, and December 31, 1999
NOTE #3 - INCOME TAXES
There is no provision for income taxes for the period ended September 30,
2000. The Company's total deferred tax asset, as of December 31, 1999, is
as follows:
<TABLE>
<S> <C> <C>
Net operation loss carry-forward $ 109,504
Valuation allowance $ 109,504
Net deferred tax asset $ 0
</TABLE>
The federal net operating loss carry-forward will expire in 2019.
This carry-forward may be limited upon the consummation of a business
combination under IRC Section 381.
NOTE #4 - STOCKHOLDERS' EQUITY
Common Stock
The authorized common stock of the Company consists of 25,000,000 shares,
with a par value of $0.001 per share.
Preferred Stock
ARBOR, INC. has no preferred stock.
On April 5, 1999, the Company issued 1,200,000 shares of its $0.001 par
value common stock for services for $$0.05 per share, or a total of
$60,000, to its two directors.
On April 5, 1999, the Company completed a public offering that was offered
without registration, under the Securities Act of 1933, as amended ("The
Act"), in reliance upon the exemption from registration afforded by
Sections 4 (2) and 3 (b) of the Securities Act, and Regulation D
promulgated thereunder. The Company sold 1,416,000 shares of common stock
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at a price of $0.05 per share, with warrants attached, for a total amount
raised of $70,800.
ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000, and December 31, 1999
NOTE #5 - GOING CONCERN
The Company's Financial Statements are prepared using generally accepted
accounting principles applicable to a going concern, which contemplates the
realization of assets and liquidation of liabilities in the normal course
of business. However, the Company has no current source of revenue. This
raises substantial doubt about its ability to continue as a going concern.
Without realization of additional capital, it would be unlikely for the
Company to continue as a going concern.
NOTE #6 - RELATED PARTY TRANSACTIONS
The Company neither owns nor leases any real or personal property. An
officer of the corporation provides office services without charge. Such
costs are immaterial to the Financial Statements and, accordingly, have not
been reflected therein. The officers and directors of the Company are
involved in other business activities and may, in the future, become
involved in other business opportunities. If a specific business
opportunity becomes available, such persons may face a conflict in
selecting between the Company and their other business interests. The
Company has not formulated a policy for the resolution of such conflicts.
NOTE #7 - WARRANTS AND OPTIONS
There are warrants outstanding to acquire additional shares of common
stock. These warrants are attached to the shares issued pursuant to the
public offering, as described in Note #4, and are convertible to shares,
with 1-year restriction, before they become free trading shares. There are
1,416,000 warrants issued, but not exercised. These warrants have an
expiration date of April 30, 2001. These warrants are to be exercised at
$0.10 per share. For purposes of calculating earnings per share, the
warrants have been fully exercised.
NOTE #8 - OFFICERS ADVANCES
While the Company is seeking additional capital, an officer of the Company
has advanced funds on behalf of the Company to pay for any costs incurred
by it. These funds are interest free. As of September 30, 2000, $1,000.00
has been advanced.
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ARBOR, INC.
(Formerly E INVESTMENTS, INC.)
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000, and December 31, 1999
Note # 9 - Foreign Currency Exchange
There is no foreign currency exchange transactions. All transactions are
done in U.S. dollars through a U.S. Dollar bank account.
To Whom It May Concern:
November 1, 2000
The firm of Barry L. Friedman, P.C., Certified Public Accountant consents
to the inclusion of their report of November 1, 2000, on the Financial
Statements of ARBOR, INC. (formerly E-INVESTMENTS, INC.), as of September
30, 2000, in any filings that are necessary now or in the near future with
the U.S. Securities and Exchange Commission.
Very truly yours,
___/s/ Barry L. Freidman_______
Barry L. Friedman
Certified Public Accountant
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