UNIT EDSTATES

SECURITIESAND EXCHANGE COMMISSION

Washington,D.C. 20549

 

FORM10-QSB

 

QUARTERLYREPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGEACT OF 1934 FOR THE QUARTERLY PERIOD ENDED

June30, 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

 

IRS TaxID #: 98-0208667

 

 

 

PARTI: FINANCIAL INFORMATION

 

Item 1.Financial Statements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JUPITERENTERPRISES, INC.

(Adevelopment stage enterprise)

BalanceSheets

June30, 2001 (Unaudited) and March 31, 2001

 

|  |  | ***June      30,***2001***March      31,**ASSETS***(Unaudited)***2001
        Current assets:
           Cash
$      1,328
$      100
           Prepaid expenses
-
148
              Total current assets
1,328
248
        Other assets:
           Website development costs in progress
1,000
1,000
               Total other assets
1,000
1,000
               Total assets
$      2,328
$      1,248**LIABILITIES
        Current liabilities:
           Accounts payable and accrued expenses
$      4,589
$      4,908
           Due to related parties
10,813
3,813
             Total current liabilities
15,402
8,721
             Total liabilities
15,402
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
(54,334)
(48,733)
            Total stockholders' equity
(13,074)
(7,473)
            Total liabilities and stockholders' equity
$      2,328
$      1,248*** 

 

 

 

Theaccompanying notes are an integral part of these statements.***
 
***JUPITERENTERPRISES, INC.

(Adevelopment stage enterprise)

Statementsof Loss For The Periods Ended

June 30,2001 and 2000

(Unaudited)***
 
***Inception,***March      12, 1999***through***June      30,***Quarter      Ended June 30,***2001***2001***2000
Revenues
$                           -
$                        -
$                         -
General      and administrative expenses:
        Legal and professional fees
44,102
4,571
9,376
        Other administrative expenses
10,232
1,030
319
          Total operating expenses
54,334
5,601
9,695
          (Loss) before taxes
(54,334)
(5,601)
(9,695)
Provision      (credit) for taxes on income:
       Current
-           
-          
-           
       Deferred
-           
-           
-           
          Total provision (credit) for taxes on income
-           
-           
-           
          Net (loss)
$              (54,334)
$              (5,601)
$              (9,695)

Basic      earnings (loss) per common share
$                (0.00)
$                (0.00)
Weighted      average number of shares outstanding
3,042,000
2,862,198
 

 

 

 

 

 

 

 

 

 

 

 
***Theaccompanying notes are an integral part of these statements.***
 
***JUPITERENTERPRISES, INC.

(Adevelopment stage enterprise)

Statementsof Cash Flows For The Periods Ended

June 30,2001 and 2000

(Unaudited)******Inception,***March      12, 1999***through***June      30,***Quarter      ended June 30,***2001***2001***2000
Cash      flows from operating activities:
Net (loss)

$               (54,334)
$         (5,601)
$        (9,695)
Adjustments      to reconcile net (loss) to cash
         provided (used) by developmental stage activities:

           Decrease (increase) in prepaid expenses
-
148
(4,511)
           (Decrease) increase in accounts payable and
                 accrued expenses
4,589

 

 

(319)
660
           (Decrease) increase in due to related parties
10,813
7,000
(237)
 Net cash provided (used) by        operating activities
(38,932)

 
1,228

 
(13,783)

 
Cash      flows from investing activities:
(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
1,328
1,228
(9,298)
Cash      and equivalents, beginning of period
-
100
26,462
Cash      and equivalents, end of period
$                    1,328
$             1,328
$        17,164
Supplemental      cash flow disclosures:
        Cash paid for interest
$                         -    
$                -     
$             -     
   Cash paid for income taxes
-    
-     
  

-     *** 

 

 

 

 

 

 

 

 

Theaccompanying notes are an integral part of these statements.

 

 

JUPITERENTERPRISES, INC.

(Adevelopment stage enterprise)

Notes toUnaudited Financial Statements

June30, 2001

 ***
 

Theaccompanying unaudited interim financial statements include all adjustmentswhich in the opinion of management are necessary in order to make theaccompanying financial statements not misleading, and are of a normal recurringnature. 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 asdisclosed herein, there has been no material change in the information disclosedin the notes to the financial statements included in the Company's annualreport for the year ended March 31, 2001. Operating results for the three monthsended June 30, 2001, are not necessarily indicative of the results that can beexpected for the year ended March 31, 2002.
** 

Note 1 -Development stage activities:

The Company continuesto be a development stage enterprise, and its activities have been limited toits formation and the raising of equity capital and filings with the Securitiesand Exchange Commission. In its current development stage, management expects tocontinue to incur losses while the Company 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 and bear theHerbal Traditions brand label. The Company's internet website is currentlyunder construction and will be the centerpiece 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 internet in a securede-commerce connection. The Company expects to market to a global customer base.

 
**Note 2 - Relatedparty transactions:**
The Company'sdirectors have advanced funds from time to time to finance the Company'soperations. The advances are not evidenced by a promissory note, do notcurrently bear interest, and are due currently. The Company expects to repay theadvances out of proceeds from sales of stock or other loans. Such advancestotaled $10,813 at June 30, 2001 (unaudited).

 
**Note 3 - Federalincome tax:**
The Company followsStatement of Financial Accounting Standards 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. The provision for refundable Federal incometax consists of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
***JUPITER ENTERPRISES,INC.

(A development stageenterprise)

Notes to UnauditedFinancial Statements

June30, 2001 ***
 **June      30,**June      30,**2001**2000**(Unaudited)**(Unaudited)
                  Refundable Federal income tax attributable to:
                      Current operations
$(1,900)
$(3,300)
                      Change in deferred tax amounts
1,900 
3,300  
                         Net refundable amount
$         - 
$         - 
The cumulative taxeffect at the expected rate of 34% of significant items comprising the Company'snet deferred tax amounts are as follows:
**June 30,**June 30,**2001**2000**(Unaudited)**(Unaudited)
                  Deferred tax asset attributable to:
                    Net operating loss carryover
$(18,500)
$(6,700)
                    Less, Valuation allowance
18,500 
6,700 
                      Net deferred tax asset
$         - 
$         - ****
At March 31, 2001,the Company had unused net operating loss carryovers which may be used to offsetfuture taxable income and which 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 - Websitedevelopment costs in progress:**
The Company followsEmerging Issues Task Force reached 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 theCosts of Computer Software Developed or Obtained for Internal Use.*** UnderSOP 98-1, development costs are capitalized and amortized to income over theestimated useful life of the website. The Company has elected to adopt EITFIssue No. 00-2 and SOP 98-1 retroactively to April 1, 2000.

 

The Company hasincurred $1,000 in development costs through June 30, 2001, which have beencapitalized; no amortization has been recorded, as the sites are incomplete. Nocosts had been incurred prior to April 1, 2000.

 
** 

 
*JUPITER ENTERPRISES,INC.

(A development stageenterprise)

Notes to UnauditedFinancial Statements

June30, 2001*
 **
**Note 5 - Uncertainty,going concern:**

At June 30, 2001, theCompany was not currently engaged in a business and had suffered losses fromdevelopment stage activities to date. Although management is currentlyattempting to implement its business plan (see Note 1 in the notes to thefinancial statements included in the Company's Form 10-KSB as of the yearended March 31, 2001) and is seeking additional sources of equity or debtfinancing, 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 raise substantial doubt about the ability of theCompany to continue as a going concern. The financial statements do not includeany adjustments that might result from the outcome of this uncertainty.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 2.Management's Discussion and Analysis:

 

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.*************************************************************************************************** |
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