10QSB: Optional form for quarterly and transition reports of small business issuers
Published on November 27, 2000
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File number 0-25541
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CIGAR KING CORPORATION
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(Exact name of registrant as specified in charter)
Nevada 91-1948357
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
825 - 1200 West 73rd Avenue
Vancouver, BC, Canada V6P 6G5
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(Address of principal executive offices) (Zip Code)
604-267-1100
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Registrant's telephone number, including area code
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(Former name, address, and fiscal year, if changed since last report)
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), Yes [X] No [ ] and ( ) has been
subject to 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 the last practicable date.
Class Outstanding as of June 30, 2000
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Common Stock, $0.001 per share 10,535,000
ANDERSEN ANDERSEN & STRONG, L.C. 941 East 3300 South, Suite 202
Salt Lake City, Utah 84106
Telephone 801 486-0096
Fax 801 486-0098
REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
Cigar King Corporation
We have reviewed the balance sheet of Cigar King Corporation (development stage
company) as of June 30, 2000 and September 30, 1999 the related statement of
operations and the statement of cash flows for the period October 8, 1998 (date
of inception) to June 30, 2000. These financial statements are the
responsibility of the company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.
Andersen Andersen & Strong
Salt Lake City, Utah
October 30, 2000
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INDEX
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PART 1 - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheet of Cigar King Corporation (a development stage
company) at June 30, 2000 and September 30, 1999 and the statement of operations
for the three months ended June 30, 2000 and 1999, for the nine months ended
June 30, 2000 and 1999 and for the period from October 8, 1998 (date of
incorporation) to June 30, 2000, the statement of cash flow for the nine months
ended June 30, 2000 and 1999 and for the period from October 8, 1998 (date of
incorporation) to June 30, 2000 and the statement of stockholders' equity for
the period from October 8, 1998 (date of incorporation) to June 30, 2000 have
been prepared by the Company's management and they do not include all
information and notes to the financial statements necessary for a complete
presentation of the financial position, results of operations, cash flows, and
stockholders' equity in conformity with generally accepted accounting
principles. In the opinion of management, all adjustments considered necessary
for a fair presentation of the results of operations and financial position have
been included and all such adjustments are of a normal recurring nature.
Operating results for the nine months ended June 30, 2000, are not necessarily
indicative of the results that can be expected for the year ending September 30,
2000.
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CIGAR KING CORPORATION
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
JUNE 30, 2000 AND SEPTEMBER 30, 1999
(UNAUDITED - PREPARED BY MANAGEMENT)
The accompanying notes are an integral part of these unaudited
financial statements.
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CIGAR KING CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999 FOR THE NINE MONTHS ENDED
JUNE 30, 2000 AND 1999 AND FOR THE PERIOD FROM
OCTOBER 8, 1998 (DATE OF INCEPTION) TO JUNE 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
The accompanying notes are an integral part of these
unaudited financial statements.
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CIGAR KING CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM OCTOBER 8, 1998 (DATE OF INCEPTION)
TO JUNE 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
The accompanying notes are an integral part of these unaudited
financial statements.
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CIGAR KING CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE 30, 2000 AND 1999 AND FOR THE PERIOD FROM
OCTOBER 8, 1998 (DATE OF INCEPTION) TO JUNE 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
The accompanying notes are an integral part of these unaudited
financial statements.
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CIGAR KING CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on
October 8, 1998 with the authorized common shares of 200,000,000 shares
at $0.001 par value.
The Company is in the development stage.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
The Company recognizes income and expenses based on the accrual method
of accounting.
Dividend Policy
The Company has not yet adopted a policy regarding payment of
dividends.
Income Taxes
On June 30, 2000 the Company had a net operating loss carry forward of
$ 39,510. The tax benefit from the loss carry forward has been fully
offset by a valuation reserve because the use of the future tax benefit
is doubtful since the Company is in the development stage and has not
started operations. The net operating loss will expire in 2021.
Earnings (Loss) per Share
Earnings (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding.
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a
maturity, at the time of purchase, of less than three months, to be
cash equivalents.
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CIGAR KING CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Comprehensive Income
The Company adopted Statement of Financial Accounting Standards No.
130. The adoption of this standard had no impact on the total
stockholder's equity.
Recent Accounting Pronouncements
The Company does not expect that the adoption of other recent
accounting pronouncements will have a material impact on its financial
statements.
Financial Instruments
The carrying amounts of financial instruments, including cash and
accounts payable are considered by management to be their estimated
fair values.
Estimates and Assumptions
Management uses estimates and assumptions in preparing financial
statements in accordance with generally accepted accounting principles.
Those estimates and assumptions affect the reported amounts of the
assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported revenues and expenses. Actual results
could vary from the estimates that were assumed in preparing these
financial statements.
3. PURCHASE OF RIGHTS TO CIGAR KING CONCEPT
On November 24, 1998 the Company acquired the exclusive rights to use
the name "Cigar King" to market high quality cigars through a climate
controlled kiosk merchandising display case, by the payment of $50,000.
The purchase price will be amortized to expense over five years after
operations begin.
4. RELATED PARTY TRANSACTIONS
Related parties acquired 43% of the common stock issued.
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CIGAR KING CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
5. GOING CONCERN
Continuation of the Company as a going concern is dependent upon
obtaining additional working capital and the management of the Company
has developed a strategy, which it believes will accomplish this
objective through additional equity funding, and long term financing,
which will enable the Company to operate for the coming year.
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ITEM 2. PLAN OF OPERATIONS
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To date the Company has not made a decision as to what type of kiosk it should
either acquire of build nor has it decided upon the location of the kiosks. This
is due to a lack of funds the Company has at the present time.
Liquidity and Capital Resources
The Company has virtual no capital resources at the present time to finance it
project. The director might have to consider advance certain funds personally in
order to provide working capital for the Company.
Results of Operations
The Company has had no revenues from operations since its inception.
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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.
CIGAR KING CORPORATION
(Registrant)
November 23, 2000 /s/ "Steven Bruce
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Date Steven Bruce -President/Director
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