United States
Securities and Exchange Commission
Washington, DC 20549
FORM 10Q SB/A
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2001
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE
EXCHANGE ACT
Commission file Number 333 - 32634
PARAGON POLARIS STRATEGIES.COM INC.
Exact name of small business issuer as specified in its charter
Nevada 76-0609444
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification No.
3215 Mathers Avenue, West Vancouver, BC V7V 2K6 Canada
(Address of principal executive office)
(604) 913-8355
Issuer's telephone number
NA
(Former name, former address and former fiscal year, if
changed since last report)
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PAST FIVE YEARS
Check whether the registrant filed all documents and reports required
To be filed by Section 12, 13 or 15 (d) of the Exchange Act
after the distribution of
Securities under a plan confirmed by a court. Yes ____ No ____
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the Issuer's
common equity as of the last practicable date: 1,350,000 shares
Transitional Small Business Disclosure Format (check one)
Yes ___ No X
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
FINANCIAL STATEMENTS FOR THE NINE MONTH
PERIODS ENDING SEPTEMBER 30, 2001 AND 2000
(PREPARED BY MANAGEMENT)
PARAGON POLARIS STRATEGIES.COM INC.
BALANCE SHEETS
AS AT SEPTEMBER 30, 2001 AND 2000
(PREPARED BY MANAGEMENT)
ASSETS
CURRENT ASSETS $ 0
OTHER ASSETS
LICENSE RIGHTS 0
TOTAL ASSETS 0
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES 7,500
TOTAL CURRENT LIABILITIES 7,500
STOCKHOLDERS' EQUITY
COMMON STOCK $0.001 PAR VALUE
100,000,000 SHARES AUTHORIZED
2,600,000 SHARES ISSUED
AND OUTSTANDING 2,600
ADDITIONAL PAID-IN
CAPITAL 12,055
DEEMED DIVIDEND RE:
LICENSE RIGHTS (2,000)
DEFICIT ACCUMUILATED DURING
THE DEVELOPMENT STAGE (20,155)
TOTAL STOCKHOLDERS'
EQUITY (DEFICIT) ( 0)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 0
SEE ATTACHED NOTES TO THESE STATEMENTS
PARAGON POLARIS STRATEGIES.COM INC.
STATEMENT OF OPERATIONS
FOR THE NINE MONTH PERIODS
ENDING SEPTEMBER 30, 2001 AND 2000
(PREPARED BY MANAGEMENT)
NINE MONTHS ENDED
SEPTEMBER 30
2001 2000
REVENUES $ 0 $ 0
OPERATING EXPENSES
CONSULTING FEES 0 1,750
OFFICE EXPENSES AND FILING FEES 1,200 93
LEGAL AND ACCOUNTING 6,300 8,750
TOTAL OPERATING EXPENSES 7,500 10,593
NET (LOSS) FOR THE PERIOD (7,500) (10,593)
NET (LOSS) PER SHARE $ 0.00 $ 0.00
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 2,600,000 2,537,500
SEE ATTACHED NOTES TO THESE STATEMENTS
PARAGON POLARIS STRATEGIES.COM INC.
STATEMENT OF CASH FLOWS
FOR THE PERIODS ENDING SEPTEMBER 30, 2001 AND 2000
(PREPARED BY MANAGEMENT)
NINE MONTH PERIODS
ENDED SEPTEMBER 30
2001 2000
CASH FLOWS FROM (TO)
OPERATING ACTIVITIES
NET INCOME (LOSS) $ (7,500) $ (10,593)
NET INCREASE IN
ACCOUNTS PAYABLE 7,500 1,200
CASH FLOWS FROM (TO)
INVESTING ACTIVITIES 0 0
CASH FLOWS FROM (TO)
FINANCING ACTIVITIES
ISSUANCE OF COMMON STOCK 0 12,000
NET INCREASE (DECREASE IN CASH 0 207
CASH BEGINNING OF PERIOD 0 0
CASH END OF PERIOD $ 0 $ 207
SEE ATTACHED NOTES TO THESE STATEMENTS
NOTES TO UNAUDITED FINANCIAL STATEMENTS
(PREPARED BY MAMAGEMENT)
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in
accordance with US Securities and Exchange Commission ("SEC")
requirements for interim financial statements. Therefore, they
do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. The financial statements should be read in
conjunction with the year ended December 31, 2000 financial
statements of Paragon Polaris Strategies.com Inc. ("Registrant")
included in the Form SB 2 filed with the SEC by the Registrant.
The results of operations for the interim period shown in this
report are not necessarily indicative of the results to be
expected for the full year. In the opinion of management, the
information contained herein reflects all adjustments necessary
to make the results of operations for the interim periods a fair
statement of such operation. All such adjustments are of a
normal recurring nature.
NOTE 2 - RELATED PARTY TRANSACTIONS
The Company has entered into an agreement made effective July 1,
1999 with David R. Mortenson & Associates (Grantor) to receive
the rights to distribute the water treatment products developed
by NW Technologies, Inc. for the States of Arizona and Nevada.
Minimum purchase requirements were $125,000 the first year and
$175,000 the second year.
On July 6, 1999 the Company filed a Form D pursuant to Section
3(b) of the Securities Act and Rule 504 promulgated thereunder,
with the Securities and Exchange Commission registering the
issuance of 200,000 shares of common stock to each of the ten
general partners of David R. Mortenson and Associates, a Texas
general Partnership. The shares were issued at a price of $0.001
per share being the par value per share for a total of $2,000 in
exchange for the water remediation license. The water remediation
license is recorded a cost of $NIL, being the original cost of
the license to David R. Mortenson and Associates. The difference
between the issue price of the shares and the cost of the license
is recorded as a deemed dividend.
The agreement with David R. Mortenson & Associates was entered
into by previous management.
In December, 1999 N.W. Technologies, Inc. unilaterally cancelled
its contract with David Mortenson & Associates. Early in the
year 2000 David Mortenson & Associates laid suit against N.W.
Technologies, Inc. in Harris County Court, Texas.
In the opinion of management, the Company has no direct or
indirect interest in the Texas lawsuit
In a letter dated January 5, 2000 David Mortenson & Associates
suspended all present and future payments under the License
Agreement until their dispute with N.W. Technologies is resolved.
Due to the dispute regarding the water remediation license, David
R. Mortenson and Associates gave and additional license to the
Company on January 20, 2000. The license is to distribute
vitamins, minerals, herbs and other health products and
supplements via the Internet. The license calls for a 10% add-on
for all products purchased and an annual $500 website maintenance
fee. The effective date of the License Agreement was January 3,
2000. The license is for an initial three years from the
effective date and is automatically renewable unless either party
to the license agreement gives ninety days written notice of non-
renewal prior to expiration date. No amounts have been recorded
in these financial statements regarding the granting of the
license.
Dorothy Mortenson is the wife of David R. Mortenson. She is an
original incorporator of the Company and served as Corporate
Secretary until January 17, 2000 when her shares were purchased
by present management. David R. Mortenson is a principal in both
David Mortenson & Associates and VitaMineralHerb.com. Neither
Mr. nor Mrs. Mortenson own or have owned any of the Company?s
securities since November 24, 1999. Outside of his association
with VitaMineralHerb.com, Mr. Mortenson has no connection with
Paragon Polaris. As a result, management considers that he is at
arms length with the Company.
Item 2. Management's Discussion and Analysis or Plan of
Operation.
Paragon Polaris has a three-year license to market and sell
vitamins, minerals, nutritional supplements, and other health and
fitness products to medical professionals, alternative health
professionals, martial arts studios and instructors, sports and
fitness trainers, other health and fitness professionals, school
and other fund raising programs and other similar types of
customers. All of these individuals and organizations will
order their products via the Internet for sale to their clients.
The license will be automatically renewed unless the Company or
VitaMineralHerb.com Inc. gives the other notice of its intent not
to renew.
As a licensee of VitaMineralHerb.com Inc., Paragon Polaris
eliminates the need to develop products, store inventory, build
and maintain a website, establish banking liaisons, and develop a
fulfillment system, thereby enabling us to focus strictly on
marketing and sales. Paragon Polaris plans to target health and
fitness professionals in Idaho and Oregon who wish to offer
health and fitness products to their customers.
Paragon Polaris (and its customers) will have access to all
products offered on the vitamineralherb.com website, as well as
the ability to order custom-formulated and custom-labeled
products. vitamineralherb.com sets the price for products based
on the manufacturer's price, plus a markup which provides a 10%
commission to vitamineralherb.com and a profit for Paragon
Polaris
(b) Management's discussion and analysis of Financial Condition
and Results of Operations.
Liquidity and Capital Resources
Paragon Polaris Strategies Inc. remains in the development stage
and, since inception, has experienced some small expenses for the
preparation of financial statements and periodic reports as
required by the Securities Exchange Act of 1934. Consequently,
our balance sheet for the period ending March 31, 2000 reflects
current assets of $ 0.00 in the form of cash, and total assets of
$ 0.00.
We will carry out our plan of business as discussed above. We
cannot predict to what extent liquidity and capital resources
will be diminished prior to the consummation of a business
combination.
We believe that our existing capital will not be sufficient to
meet our cash needs, including the costs of compliance with the
continuing reporting requirements of the Securities Exchange Act.
As a result, the Company will be dependent upon a self
underwriting contained in the Form SB 2 recently declared
effective by the SEC, to supply capital for the continued
application of its business plan.
No other commitments to provide additional funds have been made
by management or other stockholders. Accordingly, there can be
no assurance that any additional funds will be available.
Irrespective of whether the cash assets prove to be inadequate to
meet operational needs, the Company might seek to compensate
providers of services by issuances of stock in lieu of cash.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Securities Holders
None
Item 6. Exhibits and Reports on Form 8K
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by
the undersigned, hereunto duly authorized.
Paragon Polaris Strategies.Com Inc.
Dated June 22, 2001 /S/ Robert Foo
Robert Foo, President and Director
/S/ Samuel Lau,
Samuel Lau
Secretary/Treasurer and Director