U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 2002
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
-------------- ------------------
Commission File No.
0-31377
COLE, INC.
(Name of Small Business Issuer in its Charter)
UTAH 87-0642556
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
4848 South Highland Drive Box #140
Salt Lake City, Utah 84117
(Address of Principal Executive Offices)
Issuer's Telephone Number: (310) 795-0252
(Former Name or Former Address, if changed since last Report)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 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.
(1) Yes X No (2) Yes X No
---- ---- ---- ----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS
None, Not Applicable;
APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares
outstanding of each of the Registrant's classes of common stock, as of the
latest practicable date:
JUNE 30, 2002
1,085,051
PART I - FINANCIAL INFORMATION
Item 1.Financial Statements.
The Financial Statements of the Registrant required to be filed with this 10-QSB
Quarterly Report were prepared by management and commence on the following page,
together with related Notes. In the opinion of management, the Financial
Statements fairly present the financial condition of the Registrant. The
Financial Statements have been reviewed and are on file with the Company's
Auditor.
COLE, INC.
[A Development Stage Company]
BALANCE SHEETS
For the Period Ending June 30, 2002 and the Year Ended December 31, 2001
06/31/02 12/31/01
------------- ---------
[Unaudited]
ASSETS
Assets
Cash $ 607 773
Property, Plant & Equipment 1,410 1,410
Less: Accumulated Depreciation (1,174) (939)
------------- ---------
Total Assets $ 843 1,244
============= =========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accrued Liabilities $ 108 311
Payable to shareholder 3,500 1,500
Income Taxes Payable 100 100
------------- ---------
Total Current Liabilities 3,708 1,911
Total Liabilities 3,708 1,911
------------- ---------
Stockholders' Deficit:
Common Stock, $.01 par value;
authorized 50,000,000 shares; issued and
outstanding, 1,085,051 shares and
1,085,051 respectively 10,850 10,850
Paid-in Capital 3,155 3,155
Accumulated Deficit (15,872) (14,672)
------------- ---------
Total Stockholders' Equity (1,867) (667)
------------- ---------
Total Liabilities and Stockholders' Equity $ 1,841 1,244
============= =========
COLE, INC.
Statements of Operations
For the Three and Six Month Periods Ended June 30, 2002 and 2001
and for the period from inception through June 30, 2002
For the
Period from
For the For the For the For the Inception
Three Months Six Months Three Months Six Months [11/03/99]
Ended Ended Ended Ended through
6/30/02 6/30/01 6/30/02 06/30/01 06/30/02
--------------- ------------ ------------ ------------ -----------
Revenues $ 0 $ 106 $ 266 $ 106 $ 2,311
Cost of Sales 0 0 0 0 0
--------------- ------------- ------------ ------------ -----------
Gross Margin 0 106 266 106 2,311
General and Administrative Expenses 1,008 1,120 2,474 2,065 18,891
--------------- ------------- ------------ ------------ -----------
Net Loss from Operations (1,008) (1,014) (2,208) (1,959) (16,580)
--------------- ------------- ------------ ------------ -----------
Net Loss Before Income Taxes (1,008) (1,014) (2,208) (1,959) (16,580)
Provision for Income Taxes 0 0 0 0 300
--------------- ------------- ------------ ------------ -----------
Net Loss $ (1,008) $ (1,014) $ (2,208) (1,959) (16,880)
=============== ============= ============ ============ ===========
Loss Per Share $ (.01) $ (.01) $ (0.01) $ (.01)$ (.01)
=============== ============= ============ ============ ===========
Weighted Average Shares Outstanding 1,085,051 1,085,051 1,067,525 1,067,525 1,071,047
=============== ============= ============ ============ ===========
COLE, INC.
Statements of Cash Flows
For the Three and Six Month Periods Ended June 30, 2002 and 2001
and for the period from inception through June 30, 2002
For the
Period from
For the For the For the For the Inception
Three Month Six Month Three Month Six Month [11/03/99)
Period Ending Period Ending Period Ending Period Ending through
06/30/02 06/30/01 06/30/02 06/30/01 06/30/02
Cash Flows Provided by/(Used for) Operating Activities
-------------- ------------- ---------- ---------- -----------
Net Loss $ (1,008) $ (1,014) $ (2,208) $ (1,959) (16,880)
Adjustments to reconcile net income to net cash
provided by operating activities:
Increase in Depreciation 117 117 234 117 1,173
Increase/(Decrease) in income taxes payable 0 0 0 (100) 100
Increase/(Decrease) in amount due to shareholder 0 691 0 0 2,191
Shares issued for expenses 0 0 0 5 3,505
Decrease/(Increase) in accrued liabilities 54 0 311 0 0
-------------- ------------ ---------- ---------- -----------
Net Cash Provided by/(Used for) in Operating Activities (945) (206) (1,663) (1,937) (7,184)
Cash Flows Provided by Investing Activities
Purchase of equipment 0 0 0 0 (1,410)
-------------- ------------ ---------- ---------- -----------
Net Cash Used by Investing Activities 0 0 0 0 (1,410)
Cash Flows Provided by Financing Activities
Issued stock for cash 0 0 0 0 10,500
Increase in loan from shareholder 0 0 2,000 1,500 3,500
-------------- ------------ ---------- ---------- -----------
Net Cash Provided by Financing Activities 0 0 0 0 10,500
Net Increase(decrease) in Cash (837) (206) 337 (1,937) 1,906
Beginning Cash Balance 1,433 2,112 773 7,467 0
-------------- ------------ ---------- ---------- -----------
Ending Cash Balance $ 607 $ 1,906 $ 607 $ 5,530 $ 1,906
============== ============ ========== ========== ===========
COLE, INC.
Notes to the Interim Financial Statements
NOTE 1- BASIS OF PRESENTATION
The accompanying unaudited interim financial statements of Cole, Inc.
have been prepared in accordance with generally accepted accounting
principles and the rule of the Securities and Exchange Commission
("SEC"), and should be read in conjunction with the audited financial
statements.. In the opinion of management, all adjustments, consisting
of normal recurring adjustments, necessary for a fair presentation of
financial position and the results of operations for interim are not
necessarily indicative of the results to be expected for the full
year.
Item 2.Management's Discussion and Analysis or Plan of Operation.
Plan of Operation.
The Company has created relationships with a limited number of clients.
Furthermore, the Company plans on increasing its client base through
advertisement and by broadening the services in which it currently provides.
Results of Operations
The Company's operations during the quarterly period ended June 30, 2002,
resulted in $0 in revenues and incurred expenses of $1,008, stemming from
costs related to general and administrative expenses.
Liquidity
At June 30, 2002, the Company had total current assets of $843 and total
liabilities of $3,708. Management believes that its cash on hand of $607 may not
be sufficient to allow it to continue its operations for the next three months
and is currently seeking future funding.
PART II - OTHER INFORMATION
Item 1.Legal Proceedings.
None; not applicable.
Item 2.Changes in Securities.
None; not applicable
Item 3.Defaults Upon Senior Securities.
None; not applicable.
Item 4.Submission of Matters to a Vote of Security Holders.
None; not applicable
Item 5.Other Information.
None; applicable
Item 6.Exhibits and Reports on Form 8-K.
None; not applicable
(b)Reports on Form 8-K.
None; Not Applicable.
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Cole, Inc., Inc. (the "Company")
on Form 10-QSB for the period ending June 30, 2002 as filed with the Securities
and Exchange Commission on the date hereof (the "Report"), I, James Doolin,
Chief Executive Officer and Chief Financial Officer of the Company, certify,
pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act
of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Company.
Date:8/11/02 /S/JAMES DOOLIN
James Doolin, Chief Executive Officer and
Chief Financial Officer
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.
COLE, INC.
Date: 8/11/02 /S/ JAMES DOOLIN
James Doolin, President and Director