SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period ended: December 31, 2000 Commission file number 0-13215 JNS MARKETING. INC. ------------------- (Exact name of small business issuer as specified in its charter) Colorado 84-0940146 -------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 10200 W. 44th Avenue, Suite 400, Wheat Ridge, CO 80033 --------------------------------------------------- Address of principal executive offices) (303) 422-8127 --------------- (Issuer's telephone number) Check whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 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. Yes X No As of December 31, 2000, 3,724,783 shares of common stock were outstanding. Transitional Small Business Disclosure Format: Yes No X PART I--FINANCIAL INFORMATION Item 1. Financial Statements. For financial information, please see the financial statements and the notes thereto, attached hereto and incorporated herein by this reference. The financial statements have been prepared by JNS Marketing, Inc. without audit pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These financial statements include all of the adjustments which, in the opinion of management, are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. These financial statements should be read in conjunction with the audited financial statements at December 31, 2000, included in the Company's Form 10-KSB. Financial Statements
JNS MARKETING, INC. (A Development Stage Company) BALANCE SHEET 2000 1999 ---------------- ------------- ASSETS: Current Assets: Cash $ - $ 871 ---------------- ------------- Total Current Assets - 871 ---------------- ------------- TOTAL ASSETS $ - $ 871 ================ ============= LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current Liabilities: Accounts payable and accrued expenses $ 8,215 $ - ---------------- ------------- Total Current Liabilities 8,215 - ---------------- ------------- Stockholders' Equity (Deficit): Common stock, no par value; 50,000,000 shares authorized; 3,781,455 shares issued and outstanding at September 30, 2000 and 1999, respectively 952,727 952,727 Deficit accumulated during the development stage (960,942) (951,856) ---------------- ------------- Total Stockholders' Equity (Deficit) (8,215) 871 ---------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ - $ 871 ================ =============
The accompanying notes are an integral part of these financial statements.
JNS MARKETING, INC. (A Development Stage Company) STATEMENTS OF OPERATIONS July 15, 1983 Three Months Ended (Inception) through December 31, December 31, 2000 1999 2000 ---- ---- ---- REVENUES: $ - $ - $ 24,175 OPERATING EXPENSES: Sales and marketing - - - General and administrative 3,000 - 684,424 ------ ------ ------- Total Operating Expenses 3,000 - 684,424 ------ ------ ------- Net Loss from Operations (3,000) - (660,249) ------ ------ ------- Other Income and expenses: Interest income - - 166,403 Interest expense - - (68,108) Other - - (398,988) ------ ------ ------- - - (300,693) ------ ------ ------- Net Loss $ (3,000) $ - $ (960,942) ====== ====== ======= Weighted average number of shares outstanding 3,781,455 3,781,455 ========= ========= Basic and diluted net loss per share $ (0.001) $ - ========= =========
The accompanying notes are an integral part of these financial statements.
JNS MARKETING, INC. (A Development Stage Company) STATEMENTS OF CASH FLOWS July 15, 1983 Three Months Ended (Inception) to December 31, December 31, 2000 1999 2000 ---- ---- ---- Cash Flows From Operating Activities: Net (Loss) $ (3,000) $ - $(960,942) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization - - 98,818 Stock issued for services and inventory - - 19,000 Forgiveness of indebtedness - - (99,686) Loss on investments - - 476,583 Bad debts - - 20,000 Abandonment of partnership interest - - 18,600 Changes in assets and liabilities: Increase in accounts payables and accrued expenses 3,000 - 8,215 ------- ----- -------- 3,000 - 541,530 ------- ----- -------- Net Cash Used in Operating Activities - - (419,412) ------- ----- -------- Cash Flow From Financing Activities: Proceeds from notes payable - - 146,290 Advances from shareholders - - 9,250 Repayment of notes payable - - (12,000) Proceeds from the issuance of common shares - - 325,737 Payment for cancellation of stock - - (49,865) ------- ----- -------- Net Cash Provided By Financing Activites - - 419,412 ------- ----- -------- Increase (Decrease) in Cash - - - Cash and Cash Equivalents - Beginning of period - - - ------- ----- -------- Cash and Cash Equivalents - End of period $ - $ - $ - ======= ===== ======== Supplemental Cash Flow Information: Cash paid during period for: Interest paid $ - $ - $ 68,108 ======= ===== ======== Taxes paid $ - $ - $ - ======= ===== ======== Non-cash
The accompanying notes are an integral part of these financial statements.
JNS MARKETING, INC. ( A Development Stage Company) STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY Deficit Accumulated During the Common Stock Development Shares Amount Stage Totals ------ ------ ----- ------ Balance - September 30, 1999 3,781,455 952,727 (951,856) 871 Net loss for year - - (6,086) (6,086) --------- -------- -------- ------- Balance - September 30, 2000 3,781,455 952,727 (957,942) (5,215) Net loss for period - - (3,000) (3,000) --------- -------- -------- -------- Balance - December 31, 2000 3,781,455 $952,727 $ (960,942) $ (8,215)
The accompanying notes are an integral part of these financial statements. JNS MARKETING, INC. Notes to Condensed Consolidated Financial Statements Note A - Organization and Business JNS MARKETING, INC> (the "Company") was incorporated in Colorado on July 15, 1983. The Company was organized to search for and obtain, on a buyout basis or a right-to-market basis, products that will be sold to the general public primarily throughout the television media; and to engage in any activity or business not in conflict with the laws of the State of Colorado or of the United States of America. The accompanying unaudited condensed financial statements have been prepared in accordance with the instructions to Form 10-QSB and do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments, consisting of only normal recurring adjustments considered necessary for a fair presentation, have been included. These statements should be read in con-junction with the financial statements and notes thereto included in the Company's Form 10-KSB for the year ended September 30, 2000. The results of operations for the three months ended December 31, 2000, are not necessarily indicative of the results for the remainder of fiscal 2001. Note B - Earnings (Loss) Per Share Basic earnings (loss) per share of common stock are computed using the weighted average number of shares outstanding during each period plus common equivalent shares (in periods in which they have a dilutive effect.) Item 2. Management's Discussion and Analysis or Plan of Operation. - - ------------------------------------------------------------------ LIQUIDITY AND CAPITAL RESOURCES The Company had $0 cash capital at the end of the period and current liabilities exceeded current assets by $8,215. The Company will be forced to either borrow or make private placements of stock in order to fund operations. No assurance exists as to the ability to achieve loans or make private placements of stock. Results of Operations for the Quarter Ended December 31, 2000 - - ---------------------------------------------------------- The Company had no revenue or operations for the period. The Company incurred $3,000 in general and administrative expenses in the period in 2000 as compared to no general and administration expenses in the same period in 1999. The Company had a loss on operations for the period in 2000 of ($3,000) as compared to no loss in the period in 1999. The net loss was ($3,000) in the period in 2000 compared to no gain or loss in the period in 1999. The loss per share in the quarter in 2000 was nominal, compared to no gain or loss in the quarter in 1999. Results of Operations for the Nine Month Period Ended June 30, 2000 - ------------------------------------------------------------------- The trend of operating losses can be expected to continue until and unless the company acquires or merges with a profitable business. (a) Plan of Operation. JNS Marketing, Inc. (the "Company") intends to seek to acquire assets or shares of an entity actively engaged in business which generates revenues, in exchange for its securities. The Company has no particular acquisitions in mind and has not entered into any negotiations regarding such an acquisition. As of the date of this report, the Company has no plans, arrangements, understandings or commitments with respect to any potential merger or acquisition, nor is the Company engaged in negotiations with respect to such matter. If required to so do under relevant law, management of the Company will seek shareholder approval of a proposed merger or acquisition via a Proxy Statement. However, such approval would be assured where management supports such a business transaction because management presently controls sufficient shares of the Company to effectuate a positive vote on the proposed transaction. Further, a prospective transaction may be structured so that shareholder approval is not required, and such a transaction may be effectuated by the Board of Directors without shareholder approval. While any disclosure which may be provided to shareholders may include audited financial statements of such a target entity, there is no assurance that such audited financial statements will be available. The Board of Directors does intend to obtain certain assurances of value of the target entity assets prior to consummating such a transaction, with further assurances that an audited statement would be provided within 60 days after closing of such a transaction. Closing documents relative thereto will include representations that the value of the assets conveyed to or otherwise so transferred will not materially differ from the representations included in such closing documents, or the transaction will be voidable. (b) Liquidity and Capital Resources. At December 31, 2000, the Company had minimal cash or other assets with which to conduct operations. There can be no assurance that the Company will be able to complete its business plan and to exploit fully any business opportunity that management may be able to locate on behalf of the Company. Due to the lack of a specified business opportunity, the Company is unable to predict the period for which it can conduct operations. Accordingly, the Company will need to seek additional financing through loans, the sale and issuance of additional debt and/or equity securities, or other financing arrangements. Management of the Company and its counsel have advised that they will pay certain costs and expenses of the Company from their personal funds as interest free loans in order to facilitate development of the Company's business plan. Management believes that the Company has inadequate working capital to pursue any operations at this time; however, loans to the Company from management and its counsel may facilitate development of the business plan. For the foreseeable future, the Company through its management and counsel intend to pursue acquisitions as a means to develop the Company. The Company does not intend to pay dividends in the foreseeable future. As of the end of the reporting period, the Company had no material cash or cash equivalents. There was no significant change in working capital during this quarter. PART II--OTHER INFORMATION Item 1. Legal Proceedings. - - -------------------------- There are no pending legal proceedings, and the Company is not aware of any threatened legal proceedings, to which the Company is a party or to which its property is subject. Item 2. Changes in Securities. - - ------------------------------ (a) There have been no material modifications in any of the instruments defining the rights of the holders of any of the Company's registered securities. (b) None of the rights evidenced by any class of the Company's registered securities have been materially limited or qualified by the issuance or modification of any other class of the Company's securities. Item 3. Defaults Upon Senior Securities. - - ---------------------------------------- (Not applicable) Item 4. Submission of Matters to a Vote of Security Holders. - - ------------------------------------------------------------ (Not applicable) Item 5. Other Information. - - -------------------------- (Not applicable) Item 6. Exhibits and Reports on Form 8-K. - - ----------------------------------------- (a) Exhibits No exhibits as set forth in Regulation SB, are considered necessary for this filing. (b) Reports on Form 8-K No reports on Form 8-K were filed during the quarter for which this report is filed. SIGNATURES In accordance with the requirements of the Securities Exchange Act of 1934, as amended, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. JNS MARKETING, INC. Date: March 1, 2001 /s/ Walter Galdenzi ------------------ Walter Galdenzi, President