United States
U. S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
Commission File number 0-27313
Blini Hut, Inc.
Formerly "Bargain Products, Inc."
(Exact name of registrant as specified in its charter)
Nevada 88-0335902
________________________________ ________________
(State or other jurisdiction of (I.R.S. employer identification
incorporation or organization) number)
2920 North Green Valley Parkway, Building 3, Suite 321 Henderson, Nevada 89014
(Address of principal executive offices)
Issuer's Telephone Number: (702) 458-4153
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 [x] No [ ]
The number of shares outstanding of the issuer's common stock par value $.01
per share, as of November 11, 1999 was 9,508,461.
Transitional Small Business Disclosure Format (check one):
Yes [ ] No[x]
<PAGE>
ITEM 1 - FINANCIAL STATEMENTS
The unaudited condensed financial statements presented herein have been
prepared by the Company in accordance with the instructions to Form 10-QSB and
do not include all of the information and note disclosures required by
generally accepted accounting principles. These condensed financial statements
should be read in conjunction with the audited financial statements and notes
thereto for the period ended December 31, 1998 included in the Company's Form
10SB12G.
The accompanying financial statements have not been examined by independent
accountants in accordance with generally accepted auditing standards, but in
the opinion of management such financial statements include all adjustments
(consisting only of normal recurring adjustments) necessary to present fairly
the Company's financial position and results of operations. The results of
operations for the nine months ended September 30, 1999 may not be indicative
of the results that may be expected for the year ending December 31, 1999.
<PAGE>
BLINI HUT, INC.
(FORMERLY BARGAIN PRODUCTS)
(A DEVELOPMENTAL STAGE COMPANY)
FINANCIAL STATEMENTS
September 30, 1999
(unaudited)
<PAGE>
Table of Contents
Page Number
FINANCIAL STATEMENT
Balance Sheet...................................... 1
Statement of Operations and Equity
Accumulated During the Development Stage.......... 2
Statement of Changes in Stockholders.............. 3
Statement of Cash Flows........................... 4
Notes to the Financial Statements................. 5
<PAGE>
BLINI HUT, INC.
(A DEVELOPMENTAL STAGE COMPANY)
BALANCE SHEETS
September 30, 1999
(unaudited)
Sept. 30, Sept 30,
1999 1998
---------- ---------
ASSETS
Cash $79,800 $164
Organizational costs less accumulated
amortization of $442 50 150
________ _______
Total Assets $79,800 164
======== ========
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts Payable $350 $100
---- -----
Total Liabilities $350 $100
Stockholders Equity
Common stock, authorized 10,000,000 shares
at $.10 par value, issued and outstanding
3,508,461 shares 50,843
Additional paid-in capital $80,843
Deficit Accumulated during the $1,679,277 1,629,676
developmental stage (1,680,620) (1,680,305)
----------- -----------
Total Stockholder's Equity 79,500 214
Total Liabilities and Stockholder's Equity $79,858 314
========= =====
The accompanying notes are an integral part of these financial statements.
-1-
<PAGE>
BLINI HUT, Inc.
(A DEVELOPMENTAL STAGE COMPANY)
STATEMENT OF OPERATIONs AND DEFICIT
(Unaudited)
January 1, 1999 January 1, 1998
to September 30, 1999 to September 30, 1998
--------------------- ------------------
Income $ 0 $ 0
Expenses
Amortization 75 75
Bank Charges 10 194
Office Expenses 140 0
Legal 0 49,500
---- -------
Total operating expenses 225 49,769
Net loss (225) (49,769)
Retained Earnings (1,680,395) (1,630,536
------------ ----------
Deficit accumulated during
the developmental stage $ (1,680,620) (1,680,305
============= =========
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
BLINI HUT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
PERIOD From April 6, 1995 (date of inception)
(unaudited)
Additional
Common Stock paid-in
Shares Amount Capital Total
(adjusted for
stock splits)
-------- ---------- ----------- ----------
Issuance of common
stock for cash 2,600 $ 2,600 147,500 $ 150,100
Issuance of common
stock for stock 4,828 4,828 0 4,828
Contributed Capital 0 0 1,255,600 1,255,600
Less Offering Costs 0 0 (30,070) (30,070)
Net Loss 0 0 0 (1,386,670)
---------- --------- --------- ------------
Balance,
December 31, 1995 7,428 7,428 1,373,030 (6,212)
Issuance of Common
stock for services 1,000 1,000 20,561 21,561
Contributed Capital 0 0 224,000 224,000
Net Loss 0 0 0 (238,573)
--------- ------- --------- -----------
Balance,
December 31, 1996 8,428 8,428 1,617,591 776
Reverse Stock Split
100 to 1 8,344 0 0 0
Issuance of Common
Stock for cash 5,000 5,000 0 5,000
Net Loss 0 0 0 (5,293)
--------- --------- ------ ---------
Balance
December 31, 1997 134,295 13,428 1,617,591 483
Reverse Stock Split
10 to 1 (120,834) (12,085) 12,085 0
Issuance of common
stock for services 495,000 49,500 0 49,500
Net loss 0 0 0 (49,858)
--------- --------- ----- -----------
Balance
December 31, 1998 508,461 50,843 1,629,676 125
Net Loss 0 0 0 (225)
Less Offering Costs 0 0 (10,400) (10,400)
Issuance of common
stock for cash 3,000,000 30,000 60,000 90,000
--------- --------- ----- -----------
Balance
September 30,1999 $3,508,461 $ 80,843 $ 1,679,277 $ 79,500
========= ======= ======== =======
the accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
BLINI HUT, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
(Unaudited)
January 1, 1999 Jan. 1 1998
to Sept. 30 1999 to Sept. 30, 1998
------------------- -----------------
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net Loss $ (225) $ (49,769)
Noncash items included in net loss
amortization 75 75
Stock issued for legal services 0 49,500
Increase in accounts payable 250 100
---- ------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 100 (94)
CASH FLOWS USED BY INVESTING ACTIVITIES 0 0
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock 30,000 0
Additional paid-in capital 60,000 0
Less offering costs (10,400) 0
--------- ---------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 79,600 0
NET INCREASE IN CASH 79,700 (94)
-----
-----
CASH AT BEGINNING OF PERIOD 100 258
--------- ------
CASH AT END OF PERIOD $79,800 $164
The accompanying notes are an integral part of these financial statements.
-4-
<PAGE>
BLINI HUT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
September 30, 1999
NOTES TO THE FINANCIAL STATEMENTS
Blini Hut, Inc., (formerly Bargain Products, Inc.) (the Company) has
elected to omit substantially all footnotes to the financial statements for th
nine months ended September 30, 1999 and September 30, 1998. The share
information in the Statement to Changes in Stockholder's Equity has been
revised retroactively to take into account a 1 for 100 reverse stock split on
July 29, 1999 and a 1 for 10 reverse stock split on April 10, 1998.
UNAUDITED INFORMATION
The information furnished herein was taken from the books and records of
the Company without audit. However, such information reflects all adjustments
which are, in the opinion of management, necessary to properly reflect the
results of the period presented. The information presented is not necessarily
indicative of the results from operations expected for the full fiscal years.
NAME CHANGE
On May 6, 1999, the Company changed its name from "Bargain Products, Inc."
to "Blini Hut, Inc."
<PAGE>
ITEM 2 - Management's Discussion and Analysis or Plan of Operation
This form 10-QSB includes, without limitation, certain statements containing
the words 'believes', 'intends', 'anticipates', 'estimates', and words of a
similar nature, which constitute 'forward-looking' statements' within the
meaning of the Private Securities Litigation Reform Act of 1995. This Act
provides a 'safe harbor' for forward-looking statements to encourage companies
to provide prospective information about themselves so long as they identify
these statements as forward-looking and provide meaningful, cautionary
statements identifying important factors that could cause actual results to
differ from the projected results. All statements other than statements of
historical fact made in this Form 10QSB are forward-looking. In particular, the
statements herein regarding the placing of equipment, acquiring another
company, future cash requirements, future profitability, and Y2K issues are
forward-looking statements. Forward-looking statements reflect management's
current expectations and are inherently uncertain. The Company's actual results
may differ significantly from management's expectations.
GENERAL
Blini Hut, Inc., formerly Bargain Products, Inc. (the "Company") was
organized as a Nevada corporation on April 6, 1995. The Company was engaged in
the business of selling low cost consumer products at the retail level through
its wholly owned subsidiary, Dollar Mania, Inc., from June 1995 through
September 1996. Dollar Mania was unable to financially support its rapid
expansion and in order to protect its assets filed chapter 11 bankruptcy
on March 28, 1996.Because the company's obligations were far in excess of its
assets, after a number of months of review, examination, and discussions
between major creditors, the bankruptcy trustee, the company's bankruptcy
counsel, and its corporate counsel, the company decided to spin off its wholly
owned subsidiary, Dollar Mania, by transferring all of the issued and
outstanding common stock of Dollar Mania to the Bankruptcy Trustee. The
Company has been inactive without operations since September 1996, but on
May 18, 1999 the Company changed its name to Blini Hut,
Inc., and now intends to engage in the marketing and distribution of
various specialty Eastern/European fast food restaurants. The Company
proposes to develop specialty Eastern/European fast foods restaurants through
creating company owned restaurants and through franchising. The Company
has no current operations in the marketing and development of specialty foods
or fast food restaurants, and current management has no experience in this line
of business.
The principal market at this time is proposed to be in the New York
Metropolitan area. The products are specialty Eastern/European foods which
will be sold through fast food restaurants. The Company has no existing
commitments related to opening new restaurants nor has the Company sought to
market its proposed business to potential franchisees at this time. The Company
hopes to be able to open restaurants and/or engage in franchising efforts
during the first quarter of 2000.
The Company proposes to expand through development of company owned
stores and franchising in ethnic quick serve restaurants. The Company will be
supplied by food wholesalers in the New York Metropolitan area.
The market for the establishment of specialty Eastern/European fast food
restaurant operations is expanding. The company will be at a disadvantage with
other companies having larger technical staffs, established market shares and
greater financial and operational resources than the company. There can be no
assurance that the Company will be able to successfully compete.
YEAR 2000 ISSUES AND DISCLOSURE
Management has determined that the issues/problems associated with the
'Year 2000' computer bug will not have a material effect on the Company's
business, results of operations, or financial condition. The Company does not
own, lease, or operate any equipment at this time. Management will use
precaution in the future when purchasing equipment to make sure it meets any a
all compliance standards. Although management deems it highly improbable, a
risk associated with the Y2K issue would be that vendors who supply products to
the Company could be affected, and thereby could affect its operations.
Although The company is not currently operating, it plans to commence
operations in the first quarter of 2000. Transportation could be affected which
could cause the Company to receive supplies late, and could cease or slow
operations, resulting in detrimental effect on the Company.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(A) Exhibits
Item Description
- ------- ------------------------
27.0 Financial Data Schedule
(B) Reports on Form 8-K
No reports on Form 8-K have been filed for the quarter ended
September 30,1999
Items 1,2,3,4, and 5 of part II have been omitted as inapplicable.
In accordance with the requirements of the Exchange Act, the registrant
cused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Blini Hut, Inc.
November 12, 1999 By: /s/ Mont Tanner
Mont E. Tanner
President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AUDITED
FINANCIAL STATEMENT DATED DECEMBER 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000943912
<NAME> BARGAIN PRODUCTS INC / UT
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1999
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0
0
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</TABLE>
