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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
Quarterly 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 001-03323
NEW HILARITY, INC
(Exact name of registrant as specified in its charter)
NEVADA 91-1978600
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
5102 S. Morrill Lane
Spokane, Washington
(Address of principal executive offices)
99223
(Zip Code)
(509) 448-5128
(Registrant's Telephone Number, Including Area Code)
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 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 June 30, 2000: 7,989,560
****************************************************************************
<PAGE>
PART I
ITEM 1 Statement of Financial Position as of June 30, 2000
and March 31, 2000
Statement of Operations for the Three Month
Periods Ended June 30, 2000 and 1999
Statement of Changes in Stockholders' Equity
for the Three Month Periods Ended June 30, 2000 and 1999
Statement of Cash Flows for the Three Month
Periods Ended June 30, 2000 and 1999
Notes to Financial Statements as of June 30, 2000
<PAGE>
NEW HILARITY INC.
Statement of Financial Position as of
June 30, 2000 and March 31, 2000
<TABLE>
December 31, March 31,
2000 2000
------------- -------------
<C> <S> <S>
ASSETS
CURRENT ASSETS
Cash $ 63,370 $ 65,397
------------- -------------
Total Current Assets 63,370 65,397
------------- -------------
TOTAL ASSETS $ 63,370 65,397
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable - Related Party $ 253 $ -
------------- -------------
STOCKHOLDERS' EQUITY
Common stock, $.001 par value; 100,000,000
shares authorized, 7,989,560 shares
issued and outstanding 7,990 7,990
Additional paid-in capital 539,382 539,382
Accumulated deficit (484,255) (481,975)
------------- -------------
Total Stockholders' Equity 63,117 65,397
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 63,370 $ 65,397
============= =============
</TABLE>
Prepared by Management
The accompanying notes are an integral part of these financial statements.
<PAGE>
NEW HILARITY INC.
Statement of Operations for the Three Periods
Ended June 30, 2000 and 1999
<TABLE>
June 30, June 30,
2000 1999
------------ ------------
<C> <S> <S>
REVENUES $ - $ -
------------ ------------
OPERATING EXPENSES
Accounting and legal 2,060 5,705
Surveying and engineering - 1,520
Consulting - 5,157
Travel 603 -
Licenses and fees 302 195
Bank Charges 11 72
------------ ------------
Total operating expenses 2,976 12,649
------------ ------------
LOSS FROM OPERATIONS (2,976) (12,649)
------------ ------------
OTHER INCOME
Interest 696 356
------------ ------------
NET LOSS $ (2,280) $ (12,293)
============ ============
NET LOSS PER SHARE $ (NIL) $ (NIL)
============ ============
WEIGHTED NUMBER OF COMMON SHARES
OUTSTANDING 7,989,560 7,989,560
============ ============
</TABLE>
Prepared by Management
The accompanying notes are an integral part of these financial statements.
<PAGE>
NEW HILARITY INC.
Statement of Changes in Stockholders' Equity for
The Three Month Periods Ended June 30, 1999 and 2000
<TABLE>
Common Stock Additional Discount Accumu-
---------------------- Paid-in on Common lated
Shares Amount Captial Stock Deficit Total
---------- ---------- ----------- ----------- ---------- ----------
<C> <S> <S> <S> <S> <S> <S>
Balances as of
Mar. 31, 1999 7,989,560 $ 798,956 - $ (251,584) $ (491,096) $ 56,276
Change of
par value
from $.10 per
share to $.001
per share - (790,966) $ 539,382 251,584 - -
Net (Loss) - - - - (12,293) (12,293)
---------- ---------- ----------- ----------- ----------- ---------
Balances as of
June 30, 1999 7,989,560 $ 7,990 $ 539,382 $ 0 $ (503,389) $ 43,983
========== ========== =========== =========== =========== =========
Balances as of
Mar. 31, 2000 7,989,560 $ 7,990 $ 539,382 $ (481,975) $ 65,397
Net Loss (2,280) (2,280)
---------- ---------- ----------- ----------- ----------- ---------
Balances as of
June 30, 2000 7,989,560 $ 7,990 $ 539,382 $ (484,255) $ 63,117
========== ========== =========== =========== =========== =========
</TABLE>
Prepared by Management
The accompanying notes are an integral part of these financial statements.
<PAGE>
NEW HILARITY INC.
Statement of Cash Flows for the Three Month Periods
Ended June 30, 2000 and 1999
<TABLE>
June 30, June 30,
2000 1999
------------ ------------
<C> <S> <S>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (2,280) $ (12,293)
Decrease in prepaid expenses - 5,157
Increase (decrease) in accounts payable 253 (1,902)
------------ ------------
Net cash used from operating activities (2,027) (9,038)
------------ ------------
NET DECREASE IN CASH (2,027) (9,038)
CASH AT BEGINNING OF PERIOD 65,397 48,030
------------ ------------
CASH AT END OF PERIOD $ 63,370 $ 38,992
============ ============
</TABLE>
Prepared by Management
The accompanying notes are an integral part of these financial statements.
<PAGE>
NEW HILARITY, INC. Notes to Financial Statements
(Unaudited) as of June 30, 2000
----------------- ------------------------------
The financial statements of New Hilarity, Inc. included herein, have been
prepared without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Although certain information normally included in
financial statements prepared in accordance with generally accepted accounting
principles has been condensed or omitted, New Hilarity, Inc. believes that the
disclosures are adequate to make the information presented not misleading.
These financial statements should be read in conjunction with the financial
statements and notes thereto included in New Hilarity, Inc.'s annual report on
Form 10-K for the fiscal year ended March 31, 2000.
The financial statements included herein reflect all normal recurring
adjustments that, in the opinion of management, are necessary for a fair
presentation. The results for interim periods are not necessarily indicative of
trends or of results to be expected for a full year.
<PAGE>
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
As of June 30, 2000, the Company's only asset was cash in the amount of $63,370.
During the three month period ended June 30, 2000, cash decreased by $2,027,
which was due to the payment of normal operating expenses.
The net loss for the three month period ended June 30, 2000 was $2,280, compared
to a net operating loss of $12,293 for the three month period ended June 30,
1999. For the three month period ended June 30, 2000, the Company's primary
operating expenses consisted of legal and accounting.
On June 30, 2000, the Company signed a letter of intent to acquire Orbit Canada,
Inc. for common stock of New Hilarity, Inc. The letter of intent specifies a
reverse stock split by New Hilarity, Inc. of one share for each five shares of
common stock currently outstanding, followed by a post split share for share
exchange with Orbit Canada, Inc. Upon completion of a plan of reorganization,
there will be approximately 15,197,912 shares of common stock outstanding and
warrants to purchase approximately 4,000,000 shares of stock at $.875 per share.
Orbit Canada, Inc., located in Toronto, Ontario, Canada, was established in 1999
as a developer of next generation telecommunications services and is an operator
of wireless and terrestrial telecommunications transport systems utilizing
multi-channel wireless frequencies and fiber optic network for the high-speed
delivery of digital voice, video and data transmissions.
PART II
ITEM 1 LEGAL PROCEEDINGS
NONE
ITEM 2 CHANGES IN SECURITIES
NONE
ITEM 3 DEFAULTS 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
NONE
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
New Hilarity, Inc.
(Registrant)
Dated: 07-31-00 By: /s/ Robert W. O'Brien
-------------------------
Robert W. O'Brien
Secretary-Treasurer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following person on behalf of the registrant and in
the capacity and on the date indicated.
Dated: 07-31-00 By: /s/ Robert W. O'Brien
-------------------------
Robert W. O'Brien
Secretary-Treasurer
