UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 10-KSB
[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT
OF 1934
For the fiscal year ended DECEMBER 31, 1989
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT
OF 1934
For the transition period from to .
Commission File No. 33-2474-LA
SBB, INC.
(Exact name of Registrant as specified in its charter)
UTAH 93-0915593
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
3018 SOUTH STATE, SALT LAKE CITY, UTAH 84115
(Address and zip code of principal executive offices)
Registrant's telephone number, including area code: (801) 485-7200
Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act: NONE
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.
[ X] YES [ ] NO
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be
contained, to the best of Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. [ X ]
Revenue for the year ended 1989: $ 1,138.
As of January 14, 1998 it is unclear as to the aggregate market value of the
voting stock held by non-affiliates of the
Registrant. This is due to the low or almost non-existing trading of the
Registrant's Securities.
As of January 14, 1998 the number of shares outstanding of the Registrant's
Common Stock was 1,018,390.
Documents incorporated by reference: Not applicable.
PART I
ITEM 1. DESCRIPTION OF BUSINESS
SBB, Inc., ("the Company") was formed as a corporation in the State
of Utah on December 26, 1985
for the purpose of investing in any and all types of assets, properties and
businesses, and to seek, investigate and
acquire an interest in business opportunities. In October, 1986 a
Registration Statement on Form S-18 was declared
effective by the Securities and Exchange Commission. Pursuant to the public
offering, the Registrant sold 2,000,000
Units, each Unit consisting of five shares of common stock and A warrants to
purchase eighty shares and B warrants
to purchase eighty shares. The public "blind pool" offering resulted in net
proceeds of approximately $ 748, 262 (after
expenses and commissions).
During the following three years the Company entered into several
letters of intent which were
subsequently terminated. Additionally, the Company made loans totaling
approximately $575,000 to unaffiliated
entities. Since 1988 the Company attempted unsuccessfully to collect these
loans. Since 1988, funds remaining after
the public offering, and funds collected from defaulting debtors, were
expended for company expenses and
compensation to the Company's president.
The Company is currently seeking a business opportunity merge with
or acquire, but to date has not
located in any such business opportunities. There is no assurance that the
Company will be successful in finding any
business opportunity to merge with or acquire.
ITEM 2. DESCRIPTION OF PROPERTY
The Company currently operates from the office of the Company's
President and pays no rent or
expenses.
ITEM 3. LEGAL PROCEEDINGS
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
None - not applicable
PART II
ITEM 5. MARKET PRICE FOR REGISTRANT'S COMMON EQUITY AND
RELATED STOCKHOLDER MATTERS
Because this report is being prepared in 1998, the Company has not
been able to obtain any reliable
trading history for the period reported. During the year ended December 31,
1989 there appeared to be little or no
trading in the stock of the Company. As of January 14, 1998, the Company had
385 shareholders of record.
The Company has not declared any cash dividends on its Common Stock
since inception and its Board
of Directors has no present intention of declaring any dividends. For the
foreseeable future, the Company intends to
retain all earnings, if any, for use in the development and
expansion of its business.
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Company had no material revenue during the year ended December
31, 1996. Total stockholders'
equity was $133,667, as compared to $520,930 at December 31, 1988. The
decrease of $387,263 was, principally,
due to professional fees of $22,121 and a bad debt expense of $366,079 paid
during the year with no income.
LIQUIDITY AND CAPITAL RESOURCES
The Company has some assets, mostly cash and notes receivable and is
currently in the process of
looking for business opportunities to merge with or acquire. At minimum, the
Company will need to raise additional
capital through private funding to meet the financial needs of being a
reporting company. There is no guarantee that
the Company will be successful in obtaining necessary funding to develop any
business opportunities.
RESULTS OF OPERATIONS
The Company sustained losses of $(387,263) and $(223,378) for the
years ended December 31,1989
and December 31, 1988 respectively. Revenues of $1,138 and $33,929 for the
two periods represented interest earned
on temporary cash investments and loans. Expenses of $388,301 and $223,378
for the periods consisted of bad debt
and professional services and other administrative expenses incurred while the
Company was seeking out business
ventures.
ITEM 7. FINANCIAL STATEMENTS
(a)(1) The following financial statements of the Company and its
subsidiaries have been filed as part of this
report (see Item 8 "Financial Statements and Supplementary Data"):
Independent Auditors' Report
Balance Sheets as of December 31, 1989.
Statements of Operations for the years ended December 31, 1989 and
December 31, 1988 and from
December 26, 1985 to December 31, 1989.
Statement of Stockholders' Equity for the period from December 26,
1985 to December 31, 1989.
Statement of Cash Flows for the years ended December 31, 1989 and
December 31, 1988 and from
December 26, 1985 to December 31, 1989.
Notes to Financial Statements.
(2) Schedules are omitted because of the absence of conditions under
which they are required or because
the required information is given in the financial statements or
notes thereto.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
In 1997 the Company engaged Crouch Bierwolf & Company as its
auditors. The new firm was
engaged to prepare audit reports for the years ended December 31, 1989 and
1988. This change in the Company's
auditors was not the result of disagreements with the Company's auditors.
PART III
ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The following information is furnished with respect to the Company's
Board of Directors and executive
officers. There are no family relationship between or among any of the
Company's directors or executive officers.
DIRECTORS AND EXECUTIVE OFFICERS
Age Director
Name (1998) Since Position with the Company
John P. Stovall 49 1985 President, CEO and Director
JOHN P. STOVALL, President and a Director since 1985. Mr. Stovall
attended the University of Houston where
he studied radio and television communication. For the past year Mr. Stovall
has been an owner and operator of a
pawn broker business in Salt Lake City, Utah. He is a former President, and
the current Chairman, of the National
Pawnbrokers Association.
ITEM 10. EXECUTIVE COMPENSATION
COMPENSATION OF EXECUTIVE OFFICERS AND DIRECTORS
During the current fiscal year, no one in the Company's management
received more than $60,000 in
compensation.
The Company's President received -0- in compensation for the year.
EMPLOYMENT AGREEMENTS AND OTHER COMPENSATION ARRANGEMENTS
There are currently no agreements with members of management as to
employment or compensation.
COMPENSATION OF NON-EMPLOYEE DIRECTORS
There is currently no compensation paid to non-employment directors.
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth as of January 14, 1998, the number of
shares of the Company's common stock
owned by persons who owned of record, or was known to own beneficially, more
than 5% of the outstanding shares
of the Company's common stock, sets forth the number of shares of the
Company's current directors and officers, and
sets forth the number of shares owned by all of the Company's directors and
officers as a group:
The beneficial owners listed have sole voting and investment power with
respect to the shares unless
otherwise indicated.
Amount and Nature
Name and Address of Beneficial
Percent of
of Beneficial Owner Ownership
Class
John P. Stovall 51,000 5.0
Officers and Directors
as a Group (one) 51,000 5.0
International Advisory, Inc. 935,000 91.8
3340 Topaz, Suite 210
Las Vegas, Nevada 89121
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Other than executive compensation, during the reported year the
Registrant did not entered into any
transactions with management which are to be reported under this Item.
ITEM 13. EXHIBITS, AND REPORTS ON FORM 8-K
(A) Exhibits
EXHIBIT
NO. DESCRIPTION
3.01 Certificate of Incorporation (Incorporated by reference
to Registration Statement
No. 33-2474-LA)
3.02 By-laws (Incorporated by reference to Registration
Statement No. 33-2474-LA.)
23.01 Consent of Crouch Bierwolf & Company, CPA
27.01 Financial Data Schedule
(b) The Registrant filed no current reports on Form 8-K during the last
quarter of the fiscal year ended December
31, 1989.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SBB, Inc.
By: John P. Stovall
/s/ John P. Stovall
Dated: January 20, 1998
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the
following persons of behalf of the Registrant and in the capacities and on the
dates indicated.
SIGNATURE TITLE DATE
/s/ John P. Stovall President and Director
(Principal Executive and
Financial Officer) January 20, 1998
INDEX TO FINANCIAL STATEMENTS
Report of Independent Certified Public Accountant
Financial Statements:
Balance Sheets - December 31, 1989
Statements of Operations - For the years ended December 31, 1989 and
December 31, 1988 and from December
26, 1985 to December 31, 1989.
Statement of Stockholders' Equity - For the period from (inception)
December 26, 1985 to December 31, 1989.
Statement of Cash Flows - For the years ended December 31, 1989 and
December 31, 1988 and from December
26, 1985 to December 31, 1989.
Notes to Financial Statements
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Stockholders
of SBB,Inc
We have audited the accompanying balance sheet of SBB, Inc. ( a Utah
corporation) ( a development
stage company) as of December 31 1989, and the related statements of income,
retained earnings,
and cash flows for the year then ended. These financial statements are the
responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements
based on our audit. The financial statements of SBB, Inc. as of December 31,
1988 and for the
periods from December 26, 1985 to December 31, 1988 were audited by other
auditors whose report
dated September 25, 1989 expressed an unqualified opinion on those statements.
We conducted our 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. We believe that our audit
provides a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the
financial position of SBB, Inc. as of December 31, 1989, and the results of
its operations and its cash
flows for the year then ended in conformity
with generally accepted accounting principles.
Salt Lake City, Utah
November 26, 1997
SBB, INC.
( A Development Stage Company)
Balance Sheet
ASSETS
December 31,
1989
CURRENT ASSETS
Cash $ 34,712
Total Current Assets 34,712
OTHER ASSETS
Organization Costs ( less accumulated
amortization of $20) (Note 1) 30
Notes receivable (Note 2,3,6 & 7)
100,000
TOTAL ASSETS $ 134,742
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 975
Taxes Payable (Note 1) 100
Total Current Liabilities 1,075
STOCKHOLDERS' EQUITY
Common Stock 800,000,000 shares
authorized at $.001 par value;
83,390 shares issued and outstanding 83
Capital in Excess of Par Value 753,179
Deficit Accumulated During Development Stage (619,595 )
Total Stockholders' Equity 133,667
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 134.742
SBB, INC.
(A Development Stage Company)
Statements of Operations
From Inception
For the Year For the Year on
December 26,
Ended Ended 1985
through
December 31, December 31,
December 31,
1989 1988
1989
REVENUE
Interest Income $ 1,138 $ 33,929 $ 38,113
EXPENSES
Amortization 10 - 20
Bad Debt (Note 7) 366,079 210,000 576,079
Dues and Fees 91 2,162 2,474
Interest - 654 654
Office Expenses - 920 4,267
Officer Compensation - 21,085 21,085
Professional Services 22,121 19,920 50,163
Travel - 2,46
2,466
Total Expenses 388,301 257,207 657,208
NET INCOME (LOSS) - Before Taxes $(387,163) $(223,278 ) $ (619,095 )
Taxes (Note 1) 100 100
500
INCOME (LOSS) $ (387,263) $ (223,378 ) $
(619,595 )
Loss Per Common Share (Note 1) $ (4.64) $ (9.15
$ (15.82 )
Average Outstanding Shares 83,390 24,409
39,154
SBB, INC.
(A Development Stage Company)
Statements of Stockholders' Equity
From Inception on December 26, 1985 through December 31, 1989
Deficit
Accumulated
Capital in During
Common Common Excess of Development
Shares Stock Par Value
Stage
Balance at Inception
on December 26, 1985 - $ - $ - $ -
Issuance of 5,000 shares
to officers & directors for
cash at $1.00 per share 5,000 5 4,995 -
Issuance of 10,000 shares
of common stock to the public
in February of 1987 for
$10 per share 10,000 10 99,990 -
Deferred offering costs offset
against capital in excess
of par value - - (35,388) -
Net loss from inception on
December 26, 1985
through December 31, 1987 - -
- (8,954)
Balance, December 31, 1987 15,000 15 69,597 (8,954)
continued
SBB, INC.
(A Development Stage Company)
Statements of Stockholders' Equity
From Inception on December 26, 1985 through December 31, 1989
Deficit
Accumulated
Capital in During
Common Common Excess of Development
Shares Stock Par Value
Stage
Balance, December 31, 1987 15,000 15 69,597 (8,954)
Issuance of 68,390,000 shares
upon exercise of A Warrants for
$10 per share (less brokerage
fees of $250) 68,390 68 683,582 -
Net loss for the year ended
December 31, 1988 - -
- (223,378)
Balance, December 31, 1988 83,390 83 753,179 (232,332)
Net loss for the year
ended December 31, 1989 -
- - (387,263)
Balance, December 31, 1989 83,390 $ 83
$ 753,179 $ (619,595)
SBB, INC.
(A Development Stage Company)
Statements of Cash Flows
For the Period
For the Year For the Year From
Inception on
Ended Ended
December 26,1985
December 31, December 31,
to December 31,
1989 1988
1989
CASH FLOWS FROM
OPERATING ACTIVITIES
Net Income (Loss) $(387,263) $(223,378) $(619,595)
Amortization 10 - 20
Bad Debts (Note 7) 366,079 210,000 566,661
Increase (Decrease)
in Accounts Payable (2,142) 2,517 975
Decrease (Increase) in
Accrued Interest Receivable - (9,165) -
Increase in Taxes Payable - -
100
(23,316) (20,026) (51,839)
CASH FLOWS FROM
INVESTING ACTIVITIES
Loans to other Entities (10,000) (690,000) (700,000)
Collection of Loans 33,338 - 33,338
Organization Costs - -
(50)
23,338 (690,000) (666,712)
CASH FLOWS FROM
FINANCING ACTIVITIES
Issuance of Common Stock (Net) - 683,650 753,263
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 22 (26,376) 34,712
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF PERIOD 34,690 61,066
-
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 34,712 $ 34,690 $
34,712
CASH PAID DURING THE PERIOD FOR:
Interest $ - $ - $ 656
Income Taxes $ 100 $ 100 $ 400
SBB, INC.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 1989
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
The Company was organized under the laws of the state of Utah on
December 26, 1985.
The Company was incorporated for the purpose of investing in any and all
types of assets,
properties and businesses and is considered a development stage company
as defined in SFAS
No 7.
ORGANIZATION COSTS
The Company is amortizing its organization costs, over sixty (60)
months using the
straight line method. Amortization for the year ended December 31, 1989
was $10.
INCOME (LOSS) PER SHARE
The computation of income (loss) per share of common stock is based
on the weighted
average number of shares outstanding during the period.
INCOME TAXES
The Company adopted Statement of Financial Standards No. 109
"Accounting for Income
taxes" in the fiscal year ended December 31, 1989 and was applied
retroactively.
Statement of Financial Accounting Standards No. 109 " Accounting for
Income Taxes"
requires an asset and liability approach for financial accounting and
reporting for income tax
purposes. This statement recognizes (a) the amount of taxes payable or
refundable for the
current year and (b) deferred tax liabilities and assets for future tax
consequences of events
that have been recognized in the financial statements or tax returns.
Deferred income taxes result from temporary differences in the
recognition of accounting
transactions for tax and financial reporting purposes. There were no
temporary differences
at December 31, 1989 and earlier years; accordingly, no deferred tax
liabilities have been
recognized for all years.
SBB, INC.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 1989
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
INCOME TAXES (continued)
The Company has cumulative net operating loss carryforwards of
approximately $220,000
at December 31, 1989. No effect has been shown in the financial
statements for the net
operating loss carryforwards as the likelihood of future tax benefit from
such net operating
loss carryforwards is not presently determinable. Accordingly, the
potential tax benefits of
the net operating loss carryforwards, estimated based upon current tax
rates of $74,000 at
December 31, 1989 have been offset by valuation reserves of the same
amount. The net
change in deferred tax asset and offsetting valuation reserve amounted to
$67,000 for 1989.
The Company has available $220,000 in net operating loss
carryforwards that will begin
to expire in the year 2000. The Company has accrued $100 per year
minimum state income
taxes.
CASH EQUIVALENTS
The Company considers all highly liquid investments with a maturity
of three months or
less when purchased to be cash equivalents.
NOTE 2 - NOTES RECEIVABLE
On September 30, 1988, SBB, Inc. loaned $210,000 to King of Video,
Inc. a Nevada
Corporation, at 18% interest per annum. The note was due and payable on
January 2, 1989
and is secured by debtor's cash, accounts receivable, fixtures, and other
items. The loan was
granted by Source Venture Capital, Inc. On May 15, 1989 King of Video,
Inc. declared
bankruptcy. Consequently, the Company has written off the entire amount
of the note.
On October 13, 1988, SBB, Inc. loaned $250,000 to Hogan-Garner Development
Corporation, a Colorado corporation, at ten percent (10%) interest per
annum. The note was
due and payable on October 1, 1989 and is secured by debtor's accounts
receivable, fixtures,
and other items. The loan was guaranteed by Source Venture Capital, Inc.
This loan was
written off as totally worthless as of December 31, 1989.
SBB, INC.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 1989
NOTE 2 - NOTES RECEIVABLE (continued)
On October 28, 1988, SBB, Inc. loaned $115,000 to South Hecla
Development Corp., a
Utah corporation, at sixteen percent (16%) interest per annum. The note
was due and
payable on August 30, 1989, but is renewable under certain conditions for
an additional ten
months, and until June 30, 1990. The note was secured by 60,000 shares
of Spectralytic, Inc.
This note was paid in the third quarter of 1989 with stock, see Note 3.
The stock was written
off as totally worthless as of December 31, 1989.
On November 23, 1988, SBB, Inc. loaned $100,000 to Hogan-Garner Development
Corp., a Colorado corporation, at ten percent (10%) interest per annum.
The note was due
and payable on November 1, 1989 and is secured by the debtor's machinery,
equipment and
other items. The loan was guaranteed by Source Venture Capital, Inc.
On December 13, 1988, SBB, Inc. loaned $15,000 to South Hecla
Development Corp.,
a Utah corporation, at sixteen percent (16%) interest per annum. The
note was due and
payable on February 11, 1989. The note was secured by 2,500,000 shares
of Touch'fon
International. This note was paid in the third quarter of 1989 with
stock, see Note 3. The
stock was written off as totally worthless as of December 31, 1989.
On December 13, 1988, SBB, Inc. loaned $15,000 to South Hecla
Development Corp.,
a Utah corporation, at sixteen percent (16%) interest per annum. The
note was secured by
2,500,000 shares of Touch'fon International. This note was paid in the
third quarter of 1989
with stock, see Note 3. The stock was written off as totally worthless
as of December 31,
1989.
As of January 1, 1989 the Company has suspended the accrual of any
interest income on
the notes receivable since it was subsequently discovered that all the
notes were eventually
worthless except for $100,000 which was collected in 1994.
Notes Receivable Summary
King of Video, Inc. $210,000
Hogan-Garner Development Corp. 250,000
Hogan-Garner Development Corp. 100,000
Total Notes Receivable 560,000
Less Written off as Bad Debt (460,000)
Net Notes Receivable $100,000
SBB, INC.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 1989
NOTE 3- NOTES RECEIVABLE - COLLECTION
Pursuant to a board of directors meeting held on July 27, 1989, the
Company has accepted
2,500,000 restricted shares of Touch'fon International previously pledged
as security for the
repayment of a $15,000 loan, as full payment for the debt. The stock was
found to be
worthless and was written off as worthless as of December 31, 1989.
The Company has also accepted 900,000 restricted common shares of
Republic Gold &
Silver Incorporated in full settlement and satisfaction of the $115,000
note plus accrued
interest from South Helca Development. The note was found to be
worthless and was written
off as worthless as of December 31, 1989.
NOTE 4 - INVESTMENT IN LAND
In February of 1989 the Company paid $10,000 earnest money deposit
on the purchase
of approximately ninety (90) acres in Vernal, Utah. The Company
subsequently decided not
to purchase the land and converted the $10,000 to a note receivable. The
note was never
collected and was written off as a bad debt in 1989.
NOTE 5 - USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect reported amounts of assets and liabilities, disclosure of
contingent assets
and liabilities at the date of the financial statements and revenues and
expenses
during the reporting period. In these financial statements, assets,
liabilities and
earnings involve extensive reliance on management's estimates. Actual results
could differ from those estimates.
SBB, INC.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 1989
NOTE 6 - FAIR VALUES OF FINANCIAL INSTRUMENTS
The following listing of the estimated fair value of financial
instruments is made
in accordance with the requirements of SFAS No. 107, "Disclosure About
Fair Value
of Financial Instruments", The carrying amounts and fair value of the Company's
financial instruments at December 31, 1989 are as follows:
<TABLE>
<S> <C>
December 31,
1989
</TABLE>
<TABLE>
<S> <C><C> <C><C> <C><C> <C><C>
CarryingAmountsFair
Values
</TABLE>
<TABLE>
<S> <C><C> <C><C> <C><C> <C><C>
Cash and Cash Equivalents $ 34,712$ 34,712
Notes receivable $ 100,000$ 65,474
</TABLE>
The following methods and assumptions were used by the Company
in estimating its fair
value disclosures for financial instruments:
CASH AND CASH EQUIVALENTS
The carrying amounts reported on the balance sheet for cash and cash
equivalents approximate their fair value.
NOTES RECEIVABLE
The fair values of notes receivable are estimated using discounted
cash flow
analysis (Four years) based on the Company's incremental borrowing rate
at the
discount rate (10%).
SBB, INC.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 1989
NOTE 7 - BAD DEBT
During the year, the Company expended as bad debt the following loan,
investments and
accrued interest:
King of Video $210,000
Hogan -Garner Development Corporation 250,000
South Hecla Development Corporation (later converted to
Touch'fon International Stock) 15,000
South Hecla Development Corporation - Land Investment
(later converted to note receivable) 10,000
South Hecla Development Corporation (later converted to
Republic Gold & Silver corporation stock) 115,000
Accrued Interest 9,417
Less: Collected in 1989 (33,338)
Less: Reserved in 1988 (210,000 )
Total Bad Debt Expense $ 366,079
NOTE 8 - REVERSE STOCK SPLIT
In 1997, the shareholders approved a 1 for 1,000 share reverse stock
split. This change has
been made retroactive to the beginning balances of this financial statement.
We hereby consent to the use of our audit report of
SBB, Inc. dated November
26, 1997 for the year
ended December 31, 1989 in the Form 10KSB
Annual Report for the year 1989.
s/s Crouch, Bierwolf & Chisholm
Salt Lake City, Utah
January 20, 1998
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1989
<PERIOD-END> DEC-31-1989
<CASH> 34,712
<SECURITIES> 0
<RECEIVABLES> 100,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 34,712
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 134,742
<CURRENT-LIABILITIES> 1,075
<BONDS> 0
0
0
<COMMON> 83
<OTHER-SE> 753,179
<TOTAL-LIABILITY-AND-EQUITY> 134,742
<SALES> 38,113
<TOTAL-REVENUES> 38,113
<CGS> 0
<TOTAL-COSTS> 657,208
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (619,095)
<INCOME-TAX> 500
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (619,095)
<EPS-PRIMARY> (15.82)
<EPS-DILUTED> (15.82)
</TABLE>
