SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended: June 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from_________________ to _______________
Commission file number: 33 14707 NY
FREEDOM FUNDING, INC.
---------------------
(Exact name of small business issuer as specified in its charter)
Colorado 84 1047159
-------- -----------
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
1999 Broadway, Ste. 3235, Denver, Colorado 30083
- ------------------------------------------ -----
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (303) 292 2992
Indicate by check mark whether the issuer (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
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: As of July 1, 1998, there were
approximately 8,301,300 shares outstanding.
<PAGE>
I. PART I FINANCIAL INFORMATION
Item 1. Financial Statements
FREEDOM FUNDING, INC.
(a development stage company)
BALANCE SHEET
June 30, December 31,
1998 1997
CURRENT ASSETS:
Cash $ -- $ --
OTHER ASSETS:
Organization Costs,
net of amortization -- --
--------- ---------
Total Assets -- --
========= =========
LIABILITIES AND
STOCKHOLDERS' EQUITY:
Current Liabilities
Trade Accounts payable 55,564 54,421
--------- ---------
Total Liabilities 55,564 54,421
========= =========
Stockholders' Equity:
Preferred stock, par value
$.001 per share
Authorized 100,000,000
shares; none issued
Common stock, $.0001
par value, per share
Authorized 500,000,000
shares; issued: 8,301,300 830 830
Additional paid-in capital
124,910 124,910
Accumulated deficit (181,304) (180,161)
--------- ---------
Total Liabilities and
Shareholders' Equity $ -- $ --
========= =========
(See accompanying Notes to Financial Statements)
<PAGE>
FREEDOM FUNDING, INC.
(a development stage company)
STATEMENTS OF OPERATIONS
Six Months Ended June 30,
1998 1997
Revenues $ -- $ --
Costs and expenses
Operational expenses 1,143 54,342
Net income (loss) (1,143) (54,342)
Net income (loss) per common share * *
Weighted average number of
common shares outstanding 8,301,300 8,301,300
* Less than $.01 per share
(See accompanying Notes to Financial Statements)
<PAGE>
FREEDOM FUNDING, INC.
(a development stage company)
STATEMENTS OF CASH FLOWS
Six Months Ended June 30,
1998 1997
Operations:
Net (loss) $ (1,143) $(54,342)
Items not requiring
working capital:
Increase (decrease)
in accounts payable 1,143 54,342
Net cash from operations -- --
Financing:
Sale of common stock -- --
Net cash from financing -- --
Net increase (decrease) in cash -- --
Cash at beginning of period -- --
Cash at end of period -- --
(See accompanying Notes to Financial Statements)
<PAGE>
FREEDOM FUNDING, INC.
(a development stage company)
Notes to Financial Statements
(Unaudited)
In the opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation of the financial
condition of registrant have been included, and the disclosures are adequate to
make the information presented not misleading.
Note 1. A summary of significant accounting policies is currently on file with
the U.S. Securities and Exchange Commission in registrant's Form S-18 effective
in 1987.
Note 2. The loss per share was computed by dividing net loss by the weighted
average number of shares of common stock outstanding during the period.
Note 3. Registrant has not declared or paid dividends on its common shares since
inception.
Note 4. The accompanying unaudited condensed financial statements have been
prepared in accordance with the instructions to Form 10-Q and do not include all
information and footnotes required by generally accepted accounting principles
for complete financial statements.
Note 5. Income taxes have not been provided for in that registrant has not had a
tax liability from inception through the date of this filing, due to operating
losses.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity: The Company has not generated any cash flows from operating or
investing activities since inception. Operating capital was primarily provided
from inception through 1987 from the proceeds of an initial funding prior to a
public offering and then from the public offering itself. The proceeds of these
efforts resulted in approximate gross proceeds of $47,000 in cash and services
valued at $1,000. An additional $77,140 in operating capital was provided
through the exercise of warrants in the final quarter of 1988, all of which was
expended in the final quarter of 1988.
Results of Operations: The Company had no operations, other than its search for
a business opportunity, from inception through 1988. In 1989, these efforts
ceased due to lack of working capital. In 1997, this business plan was again
implemented due to an agreement with Mr. Mark S. Pierce to infuse working
capital and services as needed up to the amount of $100,000. Mr. Pierce rendered
services and expended costs on behalf of the Company in the amount of $55,564
through the period under consideration.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Litigation: No material legal proceedings to which the Company (or any
officer or director of the Company, or any affiliate or owner of record or
beneficially of more than five percent of the Common Stock, to management's
knowledge) is a party or to which the property of the Company is subject is
pending and no such material proceeding is known by management of the Company to
be contemplated.
Item 2. Change in Securities: This item is not applicable to the Company for the
period covered by this report.
Item 3. Defaults Upon Senior Securities: This item is not applicable to the
Company for the period covered by this report.
Item 4. Submission of Matters to a Vote of Security Holders: There were no
meetings of security holders during the period covered by this report; thus,
this item is not applicable.
Item 5. Other Information: There is no additional information which the Company
is electing to report under this item at this time.
Item 6. Exhibits and Reports on Form S-K: No reports on Form 8-K were filed by
the Company during the period covered by this report.
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 this 1st day of July, 1998.
FREEDOM FUNDING, INC.
(Registrant)
By: /s/ Mark S. Pierce
---------------------------------
Mark S. Pierce, President and
Chief Executive Officer
By: /s/ Mark S. Pierce
---------------------------------
Chief Financial
and Accounting Officer and
Treasurer
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