NOTES
TO FINANCIAL STATEMENTS
(UNAUDITED)
Note
1. Basis of Presentation
The
accompanying unaudited financial information as of and for the three and nine months ended September 30, 2019 and 2018 has been
prepared in accordance with generally accepted accounting principles (GAAP) in the U.S. for interim financial information and
pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) as set forth in the instructions to Quarterly
Report on Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, such financial information includes all adjustments
(consisting only of normal recurring adjustments) considered necessary for a fair presentation of our financial position at such
date and the operating results and cash flows for such periods. Operating results for the three and nine months ended September
30, 2019 are not necessarily indicative of the results that may be expected for the entire year or for any other subsequent interim
period.
Certain
information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted
pursuant to the rules of the SEC. These unaudited financial statements and related notes should be read in conjunction with our
audited financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed
with the SEC on April 1, 2019.
The
balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all
of the information and footnotes required by GAAP in the U.S. for complete financial statements.
Note
2. Stockholders’ Equity
The
Company is authorized to issue 50,000,000 shares of its $0.001 par value Common Stock.
There
were no issuances of common stock for the period ended September 30, 2019.
Note
3. Related Party Transactions
The
Company has periodically issued payment to certain officers and directors or their affiliates for services in connection with
maintaining the Company’s financial statements and regulatory status in good standing and evaluating potential business
opportunities. Additionally, the Company previously rented office space from Westminster Securities Corp. (“Westminster”),
an entity controlled by the Company’s President, John O’Shea.
The
total compensation issued during the three-month period ended September 30, 2019 to related parties was: $11,200 to Jonathan Braun,
a director of the Company, and $1,500 to Marika Tonay, an officer and director of the Company. For the nine-month period ended
September 30, 2019, rent expense to Westminster was $15,750 and compensation for services to Jonathan Braun was $37,300, to Westminster
was $1,800 and to Marika Tonay was $4,500.
For
the comparable prior year periods, compensation to Jonathan Braun was $10,000 for the three-month and $20,000 for the nine-month
periods, compensation to Marika Tonay was $1,500 for the three-month and $6,000 for the nine-month periods, compensation to Westminster
was $3,000 for the nine-month period, compensation to John O’Shea was $5,000 for the three- and nine-month periods and rent
expense to Westminster was $10,500 for the three-month and $31,500 for the nine-month periods.
The
officers and directors of the Company are involved in other business activities and may, in the future, become involved in other
business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between
the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.
Note
4. Going Concern
The
accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and
satisfaction of liabilities in the normal course of business. The Company has incurred net losses of approximately $457,000 for
the period from January 27, 1989 (Inception) through September 30, 2019 and has commenced limited operations. These factors, among
others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company will seek additional
sources of capital through the issuance of debt or equity financing, but there can be no assurance the Company will be successful
in accomplishing its objectives.
The
ability of the Company to continue as a going concern is dependent on additional sources of capital and the success of the Company’s
plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as
a going concern.
Note
5. Subsequent Events
The
Company evaluates events that have occurred after the balance sheet date of September 30, 2019, through the date which the financial
statements were issued. Based upon the review, the Company did not identify any recognized or non-recognized subsequent events
that would have required adjustment or disclosure in the financial statements.