UNITEDSTATES

SECURITIESAND EXCHANGE COMMISSION

Washington,D.C. 20549

 

FORM10-QSB

 

##### QUARTERLY REPORT UNDER SECTION 13 OR15(d) OF THE SECURITIES

EXCHANGEACT OF 1934 FOR THE QUARTERLY PERIOD ENDED

September30, 2001

 

Commissionfile number  001-16063

 

JUPITERENTERPRISES, INC.

Mezzanine2, 601 West BroadwayVancouver, B.C. V5Z 4C2, Canada(Address of principal executive offices and zip code)

1-877-505-6888

 

IRSTax ID #: 98-0208667

 

 

 

PARTI: FINANCIAL INFORMATION

 

Item 1. Financial Statements:
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**JUPITERENTERPRISES, INC.**

***Unaudited Financial Statements***

***September  30, 2001***

 

 

 

 

 

 

 

 

 

 

 

 

 

 

***JUPITERENTERPRISES, INC.***

***(Adevelopment stage enterprise)***

***  Balance Sheets***

***September  30, 2001 (Unaudited) and March 31, 2001***

 

 ******

       

***September      30,***

       

 ******

 ******

 ******

***2001***

 ******

***March      31,***

**ASSETS**

 ******

***(Unaudited)***

       

***2001***

       Current assets:      

 ******

 ******

       

 ******

    Cash      

       

 $              189

       

 $              100

    Prepaid expenses      

       

           -

       

                 148      

      Total current assets      

       

                 189      

       

                 248      

       

       

       

       

       

   Other assets:      

       

       

       

       

     Website development costs in progress      

       

              1,000      

       

              1,000      

      Total other assets      

       

              1,000      

       

              1,000      

       

       

       

       

       

      Total assets      

       

 $            1,189      

       

 $            1,248      

       

       

       

       

       

       

       

       

       

       

**LIABILITIES**

       

       

       

       

  Current liabilities:      

       

       

       

       

    Accounts payable and accrued expenses      

       

 $            1,548      

       

 $            4,908

    Due to related parties      

       

             17,754      

       

              3,813      

      Total current liabilities      

       

             19,302      

       

              8,721      

       

       

       

       

       

      Total liabilities      

       

             19,302      

       

              8,721      

       

       

       

       

       

  Commitments and contingencies      

       

           -

       

        -

       

       

       

       

       

**STOCKHOLDERS'      EQUITY**

       

       

       

       

  Common stock, $.001 par value, 100,000,000 shares      authorized,      

       

       

       

       

     3,042,000 shares issued and outstanding      

       

              3,042 

       

              3,042

  Capital in excess of par value      

       

             38,218      

       

             38,218      

  Deficit accumulated during the development stage      

       

           (59,373)      

       

           (48,733)      

      Total stockholders' equity      

       

           (18,113)      

       

             (7,473)      

      Total liabilities and stockholders'      equity      

       

 $            1,189

       

 $            1,248      

 

 

 

***Theaccompanying notes are an integral part of these statements.***

 

 

 

***JUPITERENTERPRISES, INC.***

***(Adevelopment stage enterprise)***

***Statementsof Loss For The Periods Ended***

***September30, 2001 and 2000***

***(Unaudited)***

 

 ******

 ******

***Inception,***

 ******

 ******

 ******

 ******

 ******

 ******

***March      12, 1999***

 ******

 ******

 ******

 ******

 ******

 ******

***through***

 ******

 ******

 ******

 ******

***September      30,***

 ******

*** Six Months Ended September 30, ***

 ******

 ******

***2001***

 ******

***2001***

 ******

***2000***

       

       

       

       

       

       

       

Revenues      

       

$                  -      

       

$                 -      

       

$                -      

       

       

       

       

       

       

       

General      and administrative expenses:      

       

       

       

       

       

       

  Legal and professional fees      

       

                 48,565      

       

                   9,034      

       

                 19,853      

  Other administrative expenses      

       

                 10,779      

       

                   1,577      

       

                   3,135      

         Total operating expenses      

       

            59,344      

       

            10,611      

       

            22,988      

         (Loss) from operations      

       

           (59,344)      

       

           (10,611)      

       

           (22,988)      

       

       

       

       

       

       

       

Other      income (expense):      

       

       

       

       

       

       

       Other income       

       

             -      

       

span style="font-size:11.0pt;color:blue">             -      

       

             -      

       Interest expense      

       

                      (29)      

       

                      (29)      

       

             -      

         Total other income (expense)      

       

                      (29)      

       

                      (29)      

       

             -      

         (Loss) before taxes      

       

           (59,373)      

       

           (10,640)      

       

           (22,988)      

       

       

       

       

       

       

       

Provision      (credit) for taxes on income:      

       

       

       

       

       

       

       Current      

       

            -      

       

             -      

       

             -      

       Deferred      

       

             -      

       

           -      

       

             -      

         Total provision (credit) for taxes on income      

       

             -      

       

           -      

       

             -      

         Net (loss)      

       

 $            (59,373)      

       

 $            (10,640)      

       

 $    (22,988)      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

Basic      earnings (loss) per common share      

       

       

       

 $               (0.00)      

       

 $            (0.01)      

       

       

       

       

       

       

       

Weighted      average number of shares outstanding      

       

       

       

             3,042,000      

       

             2,952,590      

 

 

 

 

 

 

 

***The accompanying notes are an integral part of thesestatements.***
 

***JUPITER ENTERPRISES, INC.***

***(A development stage enterprise)***

***September 30, 2001 and 2000***

***(Unaudited)***

 

 ******

 ******

*** Quarter Ended September 30, ***

 ******

 ******

***2001***

 ******

***2000***

       

       

       

       

       

Revenues      

       

 $                     -        

       

 $                     -         

       

       

       

       

       

General and      administrative expenses:      

       

       

       

       

  Legal and professional fees      

       

                   4,463      

       

                 10,477      

  Other administrative expenses      

       

                     547      

       

                   2,816      

         Total operating expenses      

       

                   5,010      

       

            13,293      

         (Loss) from operations      

       

            (5,010)      

       

           (13,293)      

       

       

       

       

       

Other      income (expense):      

       

       

       

       

       Other income      

       

                       -        

       

                       -        

      Interest expense

       

                      (29)      

       

                       -        

         Total other income (expense)      

       

                      (29)      

       

                       -        

         (Loss) before taxes      

       

            (5,039)      

       

           (13,293)      

       

       

       

       

       

Provision      (credit) for taxes on income:      

       

       

       

       

       Current      

       

                       -        

       

                       -        

       Deferred      

       

                       -        

       

                       -        

         Total provision (credit) for taxes on income      

       

                       -        

       

                       -        

         Net (loss)      

       

 $               (5,039)      

       

 $             (13,293)      

       

       

       

       

       

       

       

       

       

       

Basic      earnings (loss) per common share      

       

 $                (0.00)      

       

 $                (0.00)      

       

       

       

       

       

Weighted average      number of shares outstanding      

       

             3,042,000      

       

             3,042,000      

 

 

 

***Theaccompanying notes are an integral part of these statements.***

 

 

***JUPITERENTERPRISES, INC.***

***(Adevelopment stage enterprise)***

***Statementsof Cash Flows For The Periods Ended***

***September30, 2001 and 2000***

***(Unaudited)***

 

 

 

 ******

       

*** Inception, ***

 ******

 ******

       

 ******

 ******

       

*** March 12, 1999***

 ******

 ******

       

 ******

       

       

*** through***

 ******

 ******

       

 ******

       

       

*** September 30,***

 ******

***Six      months ended September 30,***

       

       

***2001***

 ******

***2001***

       

***2000***

 Cash      flows from operating activities:      

       

       

       

       

       

       

       Net (loss)      

       

 $             (59,373)      

       

 $     (10,640)      

       

 $     (22,988)      

       

       

       

       

       

       

       

 Adjustments      to reconcile net (loss) to cash       

       

       

       

       

       

       

        provided (used) by developmental stage activities:      

       

       

       

       

       

       

          Decrease (increase) in prepaid expenses      

       

                     -      

       

       148      

       

        (3,844)      

          (Decrease) increase in accounts payable and       

       

       

       

       

       

       

                accrued expenses      

       

                   1,548      

       

         (3,360)      

       

         809      

          (Decrease) increase in due to related parties      

       

            17,754      

       

                 13,941      

       

            (237)      

            Net cash provided (used) by operating      

       

       

       

       

       

       

              activities      

       

           (40,071)      

       

        89      

       

    (26,260)      

       

       

       

       

       

       

       

 Cash      flows from investing activities:      

       

       

       

       

       

       

          Decrease (increase) in website development costs in progress      

       

            (1,000)      

       

              -      

       

             (1,000)      

             Net cash provided (used) by investing      activities      

       

            (1,000)      

       

              -      

       

            (1,000)      

       

       

       

       

             

       

       

 Cash      flows from financing activities:      

       

       

       

       

       

       

        Proceeds from sale of common stock      

       

            41,260      

       

              -      

       

              6,060      

        Change in stock subscription held in trust      

       

                     -      

       

              -      

       

            (1,575)      

            Net cash provided (used) by financing      activities      

       

            41,260      

       

              -      

       

         4,485      

       

       

       

       

       

       

       

            Net increase (decrease) in cash and equivalents      

       

                     189      

       

          89      

       

      (22,775)      

       

       

       

       

       

       

       

 Cash      and equivalents, beginning of period      

       

                     -      

       

     100      

       

       26,462      

 Cash      and equivalents, end of period      

       

 $                   189      

       

 $                 189      

       

 $             3,687      

       

       

       

       

       

       

       

 Supplemental      cash flow disclosures:      

       

       

       

       

       

       

        Cash paid for interest      

       

 $                    29      

       

 $                   29      

       

$               -      

        Cash paid for income taxes      

       

                     -      

       

              -      

       

                 -      

 

 

 

 

 

 

***The accompanying notes are an integral part of thesestatements.***
 

 

 

 

***JUPITERENTERPRISES, INC.***

***(Adevelopment stage enterprise)***

***Statementsof Cash Flows For The Periods Ended***

***September30, 2001 and 2000***

***(Unaudited)***

  

       

 ******

***Quarter      ended September 30,***

       

 ******

***2001***

       

***2000***

 Cash      flows from operating activities:      

       

       

       

       

       Net (loss)      

       

 $               (5,039)      

       

 $              (13,293)      

       

       

       

       

       

 Adjustments      to reconcile net (loss) to cash       

       

       

       

       

        provided (used) by developmental stage activities:      

       

       

       

       

          Decrease (increase) in prepaid expenses      

       

                       -      

       

                     667      

          (Decrease) increase in accounts payable and       

       

       

       

       

                accrued expenses      

       

                 (3,041)      

       

                     149      

          (Decrease) increase in due to related parties      

       

                   6,941      /p>    
       

                       -      

            Net cash provided (used) by operating      

       

       

       

       

              activities      

       

            (1,139)      

       

           (12,477)      

       

       

       /font>
       

       /font>
 Cash      flows from investing activities:      

       

       

       

       

          Decrease (increase) in website development costs in progress      

       

                       -      

       

                 (1,000)      

             Net cash provided (used) by investing      activities      

       

                       -      

       

                 (1,000)      

       

       

       

       

       

 Cash      flows from financing activities:      

       

       

       

       

            Net cash provided (used) by financing activities      

       

                       -      

       

                       -      

       

       

       

       

       

            Net increase (decrease) in cash and equivalents      

       

            (1,139)      

       

           (13,477)      

       

       

       

       

       

 Cash      and equivalents, beginning of period      

       

                   1,328      

       

            17,164      

 Cash      and equivalents, end of period      

       

 $                   189      

       

 $                   3,687      

       

       

       

       

       

 Supplemental      cash flow disclosures:      

       

       

       

       

        Cash paid for interest      

       

 $                     29      

       

$                    -      

        Cash paid for income taxes      

       

                       -      

       

                       -      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

***The accompanying notes are an integral part of thesestatements.***
 

 

 

 

***JUPITER ENTERPRISES, INC.***

***(A development stage enterprise)***

***Notes to Unaudited Financial Statements*********

***September  30, 2001***

*** ***

*** ***

 

The accompanyingunaudited interim financial statements include all adjustments which in theopinion of management are necessary in order to make the accompanying financialstatements not misleading, and are of a normal recurring nature. However, the accompanying unaudited financial statements do not includeall of the information and footnotes necessary for a complete presentation offinancial position, results of operations, cash flows and stockholders' equityin conformity with U.S. generally accepted accounting principles. Except as disclosed herein, there has been no material change in theinformation disclosed in the notes to the financial statements included in theCompany's annual report for the year ended March 31, 2001. Operating results for the six months ended September 30, 2001, are notnecessarily indicative of the results that can be expected for the year endedMarch 31, 2002. 

** **

**Note 1 -Development stage activities:**

The Company continues to be a development stageenterprise, and its activities have been limited to its formation and theraising of equity capital and filings with the Securities and ExchangeCommission.  In its currentdevelopment stage, management expects to continue to incur losses while theCompany implements its business plan.  TheCompany plans to become a direct sales marketing company that markets,distributes and sells its own brand of natural health products via the internet. All of its products will be purchased from manufacturers or brokers andbear the Herbal Traditions brand label.  TheCompany's internet website is currently under construction and will be thecenterpiece of its marketing operation.  Thewebsite will display product information, articles about specific ailments,links to other related websites, and an on-line forum and bulletin board.  Customers will be able to place their orders via the internetin a secured e-commerce connection.  TheCompany expects to market to a global customer base.

 

**Note 2 -Related party transactions:**

The Company's directors have advanced funds fromtime to time to finance the Company's operations. The advances are not evidenced by a promissory note, do not currentlybear interest, and are due currently.  TheCompany expects to repay the advances out of proceeds from sales of stock orother loans.  Such advances totaled$17,754 at September 30, 2001 (unaudited).

 

**Note 3 -Federal income tax:**

The Company follows Statement of Financial AccountingStandards Number 109 (SFAS 109), *Accountingfor Income Taxes*. Deferred income taxes reflect the net effect of (a)temporary difference between carrying amounts of assets and liabilities forfinancial purposes and the amounts used for income tax reporting purposes, and(b) net operating loss carryforwards. No net provision for refundable Federalincome tax has been made in the accompanying statement of loss because norecoverable taxes were paid previously. Similarly, no deferred tax assetattributable to the net operating loss carryforward has been recognized, as itis not deemed likely to be realized.  Theprovision for refundable Federal income tax consists of the following:

 

***JUPITER ENTERPRISES, INC.***/p>
***(A development stage enterprise)***

***Notes to Unaudited Financial Statements*********

***September  30, 2001***

*** ***

*** ***

 

 

 ****

**September       30,**

 ****

**September 30,**

 ****

**2001**

 ****

**2000**

 ****

**(Unaudited)**

 ****

**(Unaudited)**

Refundable Federal income tax attributable to:****

 ****

 ****

 ****

  Current      operations      

$(3,600)      

       

$(7,900)      

  Change      in deferred tax amounts      

3,600       

       

7,900       

    Net      refundable amount      

$         -       

       

$         -       

       

       

       

       

mso-bidi-font-size:10.0pt"> 

The cumulative tax effect at the expected rate of 34%of significant items comprising the Company's net deferred tax amounts are asfollows:

 

 ****

**September 30,**

 ****

**September 30,**

 ****

**2001**

 ****

**2000**

 ****

**(Unaudited)**

 ****

**(Unaudited)**

Deferred tax asset attributable to:****

 ****

 ****

 ****

  mso-bidi-font-size:10.0pt">  Net      operating loss carryover      

$(20,200)      

       

$(11,300)      

  Less,      Valuation allowance      

20,200       

       

11,300       

    Net      deferred tax asset      

$         -       

       

$         -       

       

       

       

       

** **

At March 31, 2001, the Company had unused netoperating loss carryovers which may be used to offset future taxable income andwhich expire as follows:

** **

**Expires:**

 ****

**Amount**

  March      31, 2019      

 ****

$        1,874      

  March      31, 2020****

 ****

8,400****

    March      31, 2021      

 ****

38,459      

    Total      net operating loss carryover      

 ****

$      48,733 

 

**Note 4 -Website development costs in progress:**

The Company follows Emerging Issues Task Forcereached a consensus on Issue No. 00-2, ***Accountingfor Website Development Costs***, (EITF Issue No. 00-2), whichprovides that for specific website development costs, the accounting should bebased generally on AICPA Statement of Position 98-1, ***Accounting for the Costs of Computer Software Developed or Obtained forInternal Use.***  Under SOP98-1, development costs are capitalized and amortized to income over theestimated useful life of the website.  TheCompany has elected to adopt EITF Issue No. 00-2 and SOP 98-1 retroactively toApril 1, 2000. 

 

The Company has incurred $1,000 in development coststhrough September 30, 2001, which have been capitalized; no amortization hasbeen recorded, as the sites are incomplete. No costs had been incurred prior to April 1, 2000.

 

***JUPITER ENTERPRISES, INC.***

***(A development stage enterprise)***

***Notes to Unaudited Financial Statements*********

***September  30, 2001***

*** ***

*** ***

 

**Note 5 -Commitments:**

The Company'sprincipal place of business and corporate offices previously occupiedapproximately 400 square feet of shared office space with several otherbusinesses. The company leased this space at $150 per month on a month to monthlease.  The Company incurred rentexpense of $750 during the six months ended September 30, 2001, and $300during the quarter ended September 30, 2001. The Company stopped its month to month lease on August 31, 2001, andspent the remainder of the quarter searching for new office space.

 

**Note 6 -Letter of Intent to Participate in Chinese Steel Fabrication Joint Venture**

The Company hasentered into a preliminary letter of intent to participate in the MingHe S&TEnterprise Group joint venture.  Thejoint venture intends to design and fabricate light and heavy industrialbuildings as part of the Beijing Olympics Factory Relocation Program. 

 

**Note 7 -Uncertainty, going concern:**

At September 30, 2001, the Company wasnot currently engaged in a business and had suffered losses from developmentstage activities to date.  Althoughmanagement is currently attempting to implement its business plan (see Note 1 inthe notes to the financial statements included in the Company's Form 10-KSB asof the year ended March 31, 2001) and is seeking additional sources of equity ordebt financing, there is no assurance these activities will be successful.Accordingly, the Company must rely on its officers and directors to performessential functions without compensation until a business operation can becommenced.  These factors raisesubstantial doubt about the ability of the Company to continue as a goingconcern.  The financial statementsdo not include any adjustments that might result from the outcome of thisuncertainty.

 

 

 

Item2.  Management's Discussion andAnalysis:

 

Theinformation required by this Item is included in Item 1 above.

 

SIGNATURES

 

Inaccordance with the requirements of the Exchange Act, the registrant caused thisreport to be signed on its behalf by the undersigned, thereunto duly authorized.

 

JUPITERENTERPRISES, INC.

(Registrant)

Date:_____________________________

 

By:    _____________________________

TanisCornwall

Director,Secretary and duly authorized officer.