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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 1998
Commission File Number: 33-8420-D
HIGH HOPES, INC.
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(Exact name of small business issuer as specified in its charter)
Nevada 84-1037630
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(State of other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
5770 South Beech Court, Greenwood Village, Colorado 80121
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(Address of principal executive offices including zip code)
(303) 221-7376
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(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 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___
As of August 31, 1998, 1,400,230 shares of common stock, $.001 par value per
share, were outstanding.
Transitional Small Business Disclosure Format (check one): Yes__ No X
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INDEX
Page
Number
Part I. Financial Information
Item I. Financial Statements
Balance Sheets as of August 31, 1998
(Unaudited) and May 31, 1998 3
Statements of Operations, Three Months
Ended August 31, 1998 4
Statements of Cash Flows, Three Months
Ended August 31, 1998 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of
Operations 7
Part II. Other Information 8
2
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HIGH HOPES, INC.
BALANCE SHEETS
(Unaudited)
ASSETS
August 31, May 31,
1998 1998
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Current Assets
Cash $ 2,857 $ 617
Advances - related party 12,000 12,000
Other 2,318 2,108
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Total Current Assets 17,175 14,725
Total Assets $ 17,175 $ 14,725
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LIABILITIES AND STOCKHOLDERS' (DEFICIT)
Current Liabilities:
Accounts payable $ 4,523 $ 3,448
Notes payable 35,314 31,314
Other 5,576 4,926
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Total Current Liabilities 45,413 39,600
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Stockholders' (Deficit):
Common Stock, no par value,
100,000,000 shares authorized
1,400,230 shares issued and
outstanding 1,400 1,400
Additional paid-in capital 534,747 534,747
Accumulated deficit (564,385) (561,110)
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Total Stockholders' (Deficit) (28,238) (24,963)
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Total Liabilities and Stockholders'
(Deficit) $ 17,175 $ 14,725
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The accompanying notes are an integral part of the financial statements.
3
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HIGH HOPES, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended August 31, 1998
Revenues $ 210
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Operating Expenses:
Legal and accounting 2,152
Interest 650
Other 683
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Total Operating Expenses 3,485
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Net Loss $ (3,275)
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Per Share $ nil
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Weighted Average Number of Shares
Outstanding 1,400,230
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The accompanying notes are an integral part of the financial statements.
4
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HIGH HOPES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended August 31, 1998
Cash Flows Operating Activities:
Net (loss) $ (3,275)
(Increase) in accrued interest
receivable (210)
Increase in accrued interest payable 650
Increase in accounts payable 1,075
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Net Cash (Used in) Operating
Activities (1,760)
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Cash Flows from Investing Activities -
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Cash Flows from Financing Activities:
Proceeds from notes payable 4,000
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Net Cash Provided by Financing
Activities 4,000
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Increase in Cash 2,240
Cash, Beginning of Period 617
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Cash, End of Period $ 2,857
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Interest Paid $ -
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Income Taxes Paid $ -
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The accompanying notes are an integral part of the financial statements.
5
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HIGH HOPES, INC.
NOTES TO FINANCIAL STATEMENTS
August 31, 1998 (Unaudited)
(1) CONDENSED FINANCIAL STATEMENTS
The financial statements included herein have been prepared by High Hopes,
Inc. without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures
normally included in the financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted as
allowed by such rules and regulations, and High Hopes, Inc. believes that the
disclosures are adequate to make the information presented not misleading. It
is suggested that these financial statements be read in conjunction with the
May 31, 1998 audited financial statements and the accompanying notes thereto.
While management believes the procedures followed in preparing these financial
statements are reasonable, the accuracy of the amounts are in some respect's
dependent upon the facts that will exist, and procedures that will be
accomplished by High Hopes, Inc. later in the year.
The management of High Hopes, Inc. believes that the accompanying unaudited
condensed financial statements contain all adjustments (including normal
recurring adjustments) necessary to present fairly the operations and cash
flows for the periods presented.
6
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ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
High Hopes, Inc. (the "Company") was organized as a Nevada corporation on
August 24, 1986, in order to evaluate, structure and complete a merger with,
or acquisition of, prospects consisting of private companies, partnerships of
sole proprietorships. The Company may seek to acquire a controlling interest
in such entities in contemplation of later completing an acquisition. The
Company is not limited to any operation or geographic area in seeking out
opportunities. Management has not identified any particular business or
industry within which the Company will seek an acquisition or merger. The
Company has not conducted, nor have others made available to it, market
research supporting the viability of the Company's proposed operations.
The Company generated minimal revenues during the quarter ended August 31,
1998, and management does not anticipate more than minimal revenues until
following the conclusion of a merger or acquisition, if any, as contemplated
by the Company's business plan.
The Company's capital is limited. The Company anticipates operational costs
will be limited until such time as significant evaluation work is undertaken
regarding prospective mergers or acquisitions.
At August 31, 1998, the Company had no material commitments for capital
expenditures.
7
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PART II. OTHER INFORMATION
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.
Exhibit 27 Financial Data Schedule Filed herewith
electronically.
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.
HIGH HOPES, INC.
Date: October 14, 1998 By:/s/ Timothy J. Brasel
Timothy J. Brasel, President
8
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet and statements of operations found on pages 3 and 4 of the
Company's Form 10-QSB for the year to date, and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> AUG-31-1998
<CASH> 2,857
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 17,175
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 17,175
<CURRENT-LIABILITIES> 45,413
<BONDS> 0
0
0
<COMMON> 1,400
<OTHER-SE> (29,638)
<TOTAL-LIABILITY-AND-EQUITY> 17,175
<SALES> 210
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,485
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,275)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
