10QSB: Optional form for quarterly and transition reports of small business issuers
Published on June 10, 2002
8
UNITED
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 December 31, 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
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
(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 December 31, 2000
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Common Stock, $0.001 per share 10,535,000
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INDEX
Page
PART 1. Number
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ITEM 1. Financial Statements (unaudited) 3
Balance Sheet as at December 31, 2000
and September 30, 2000 4
Statement of Operations
For the three months ended December 31, 2000 and 1999,
and for the period from October 8, 1998 (Date of
Incorporation) to December 31, 2000 .
5
Statement of Cash Flows
For the three months ended December 31, 2000 and 1999
And for the period from October 8, 1998 (Date of
Incorporation) to December 31, 2000 6
Notes to the Financial Statements 7
ITEM 2. Plan of Operations 10
PART 11 Signatures 11
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PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying balance sheet of Cigar King Corporation (a development stage
company) at December 31, 2000 and 1999 and the statement of operations for the
three months ended December 31, 2000 and 1999, and for the period from October
8, 1998 (date of incorporation) to December 31, 2000 and the statement of cash
flow for the three months ended December 31, 2000 and 1999 and for the period
from October 8, 1998 (date of incorporation) to December 31, 2000 have been
prepared by the Company's management in conformity with generally accepted
accounting principles in United States of America. 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 three months ended December 31, 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
December 31, 2000 and September 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 OPERATIONS
For the three months ended December 31, 2000 and 1999
For the three months ended December 31, 2000 and 1999 and for the period from
October 8, 1998 (Date of Inception) to December 31, 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 three months ended December 31, 2000 and 1999 and for the period from
October 8, 1998 (Date of Inception) to December 31, 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
December 31, 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 was organized for the purpose of engaging in quality cigar sales. No
operations have been started.
Since its inception the Company has completed Regulation D offerings of
10,035,000 of its common capital stock for cash.
The Company is in the development stage.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
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The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
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The Company has not yet adopted a policy regarding payment of dividends.
Income Taxes
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On December 31, 2000 the Company had a net operating loss carry forward of
$95,116. The tax benefit of $28,535 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 2022.
Earnings (Loss) per Share
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Earnings (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding.
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CIGAR KING CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 2000
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Cash and Cash Equivalents
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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.
Comprehensive Income
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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
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The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact on its financial statements.
Financial Instruments
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The carrying amounts of financial instruments, including cash and accounts
payable are considered by management to be their estimated fair values.
Estimates and Assumptions
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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.
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CIGAR KING CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
December 31, 2000
(Unaudited - Prepared by Management)
3. RELATED PARTY TRANSACTIONS
Related parties acquired 43% of the common stock issued.
4. 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
To date the Company has not made a decision as to what type of kiosk it should
either acquire or 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
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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
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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)
June 6, 2002 /s/ "Michael J. Kennaugh"
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Date Michael J. Kennaugh - Director
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