-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Aorh1DYNIWE2dpF9JpPGKC66l+ozTMEvwJ4HIsPvRxHidJZJxmw7CjukhIrF1wGE nvVyTNN55VCIu9Tj6XARvg== 0001014897-01-000010.txt : 20010213 0001014897-01-000010.hdr.sgml : 20010213 ACCESSION NUMBER: 0001014897-01-000010 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010212 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CREATIVE BEAUTY SUPPLY INC CENTRAL INDEX KEY: 0001011662 STANDARD INDUSTRIAL CLASSIFICATION: PERFUMES, COSMETICS & OTHER TOILET PREPARATIONS [2844] IRS NUMBER: 223392051 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-26361 FILM NUMBER: 1533406 BUSINESS ADDRESS: STREET 1: 380 TOTOWA RD CITY: TOWOWA STATE: NJ ZIP: 07512 BUSINESS PHONE: 2012920125 MAIL ADDRESS: STREET 1: 380 TOTOWA ROAD CITY: TOTOWA STATE: NJ ZIP: 07512 10QSB 1 0001.txt 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: December 31, 2000 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from: to: Commission file number: 000-26361 Creative Beauty Supply, Inc. (Exact name of Small Business Issuer in its charter) NEW JERSEY 22-3392051 (State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 380 Totowa Road, Totawa, NJ 07512 (Address of principal executive offices) (Zip Code) Registrant's Telephone number, including area code: (973-904-0004 Check mark whether the Issuer (1) has filed all reports required by Section 13 or 15(d) of the Exchange Act 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 the filing requirements for at least the past 90 days. YES: X NO: APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PREVIOUS 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 the court. YES: X NO: APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common stock, as of the last practicable date: 1,864,650 Transitional Small Business Disclosure Format. YES: NO: X PART I FINANCIAL INFORMATION CREATIVE BEAUTY SUPPLY, INC. BALANCE SHEET ASSETS
December 31, March 31, 2000 2000 ----------- --------- (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 294,427 $ 321,509 Accounts receivable 3,401 3,634 Inventory 79,525 67,707 Prepaid expenses 2,105 2,248 --------- ----------- TOTAL CURRENT ASSETS 379,458 395,098 PROPERTY AND EQUIPMENT, net of accumulated Depreciation 794 2,052 --------- ---------- TOTAL ASSETS $ 380,252 $ 397,150 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITES Accounts payable $ 19,578 $ 16,217 Payroll taxes withheld and accrued 1,000 55 Accrued expenses -officers salaries 150,577 128,654 Accrued expenses 20,125 20,509 ---------- ---------- TOTAL CURRENT LIABILITES 191,280 165,435 ---------- ---------- STOCKHOLDERS' EQUITY Preferred stock, par value $.001, authorized 10,000,000 Shares , issued and outstanding -0- Common stock, par value $.001, authorized 100,000,000 Shares, issued and outstanding, 1,864,650 shares 1,865 1,865 Additional paid-in-capital 472,541 472,541 Accumulated deficit (285,434) (242,691) -------- -------- TOTAL STOCKHOLDERS' EQUITY 188,972 231,715 ------- ------- TOTAL LIABILTIES AND STOCHOLDERS' EQUTIY $ 380,252 $ 397,150 ========= =========
The accompanying note is an integral part of these financial statements. CREATIVE BEAUTY SUPPLY, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
Nine Months Ended December 31, Three Months Ended December 31, 2000 1999 2000 1999 --------------------------------------------------------------------- NET SALES 183,451 $ 188,809 $ 59,219 $ 62,153 COST OF GOODS SOLD 130,617 151,080 42,169 50,728 ------- ------- ------ ------ GROSS PROFIT 52,834 37,729 17,050 11,425 ------- ------- ------ ------ OPERATING EXPENSES Salaries - officers 45,975 46,092 15,975 15,900 Payroll taxes 2,001 1,928 604 687 Auto and delivery 6,059 10,055 2,333 3,187 Employee welfare 5,462 3,076 2,300 1,103 Insurance 2,438 2,466 876 825 Office 2,235 1,375 644 607 Professional fees 25,678 16,914 1,399 2,450 Rent 11,403 10,800 3,801 3,600 Store supplies 1,061 1,660 304 913 Taxes 240 250 - - Telephone 1,917 1,440 648 490 Utilities 1,388 1,478 313 595 Miscellaneous 674 468 293 75 Depreciation and amortization 1,258 1,835 176 697 ------- ------ ----- ----- TOTAL OPERATING EXPENSES 107,789 99,837 29,666 31,129 ------- ------ ------ ------ LOSS FROM OPERATIONS BEFORE OTHER INCOME (54,955) (62,108) (12,616) (19,704) OTHER INCOME Interest Income 12,212 12,749 3,875 4,218 ------- ------- ------- -------- NET LOSS (42,743) $ (49,359) $ (8,741) $ (15,486) ======= =========== ======== ========= LOSS PER COMMON SHARE, BASI AND DILUTED $ (0.02) $ (0.03) $ (0.00) $ (0.01) ======== ======== ======== ========= WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 1,864,650 1,864,650 1,864,650 1,864,650 ========= ========= ========= =========
The accompanying note is an integral part of these financial statements. CREATIVE BEAUTY SUPPLY, INC. STATEMENTS OF CASH FLOWS NINE MONTHS ENDED DECEMBER 31, 2000 AND 1999 (UNAUDITED)
2000 1999 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(42,743) $(49,359) Adjustments to reconcile net loss to Net cash from operating activities: Depreciation and amortization 1,258 1,835 (Increased) decrease in operating assets: Accounts receivable 233 598 Inventory (11,818) (11,465) Prepaid expenses 143 2,334 Increase (decrease) in operating liabilities: Accounts payable 3,361 (384) Payroll taxes withheld and accrued 945 562 Accrued expenses 21,539 22,203 ------- -------- NET CASH USED BY OPEATING ACTIVITIES (27,082) (10,746) CASH FLOWS FROM FINANCING ACTIVITIES: Registration cost - (5,000) ------- -------- NET CASH USED BY FINANCING ACTIVITIES - (5,000) --------- -------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (27,082) (15,746) CASH AND CASH EQUIVALENTS - beginning of period 321,509 324,683 --------- -------- CASH AND CASH EQUIVALENTS - end of period $ 294,427 $ 308,937 ========= =========
The accompanying note is an integral part of these financial statements. CREATIVE BEAUTY SUPPLY, INC. NOTES TO FINANCIAL STATEMENTS December 31, 2000 NOTE1 - BASIS OF PRESENTATIONS The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10QSB and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ending December 31, 2000 are not necessarily indicative of the results that may be expected for the year ended March 31, 2001. The unaudited financial statements should be read in conjunction with the financial statements and footnotes thereto included in the Company's Form 10KSB for the year ended March 31, 2000. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Trends and Uncertainties. Demand for the Company's products will be dependent on, among other things, market acceptance of the Company's concept and general economic conditions, which are cyclical in nature. Inasmuch as a major portion of the Company's activities is the receipt of revenues from the sales of its products, the Company's business operations may be adversely affected by the Company's competitors and prolonged recessionary periods. Hair styles in the industry change drastically from season to season. The recent trend away from straight hair will have a favorable impact on the sales of the Company's hair products such as perms, etc. although the extent of this impact is indeterminable. Capital and Source of Liquidity. In April 1999, the Company renewed its lease for a term of three (3) years commencing May 1, 1999 at a monthly rental of $1,200 per month for the first twelve (12) months and $1,300 a month for each of the remaining twenty four (24) months. For the nine months ended December 31, 2000, the Company did not pursue any financing activities. For the nine months ended December 31, 1999, the Company had registration costs of $5,000 resulting in cash flows from financing activities of ($5,000). For the nine months ended December 31, 2000 and 1999, the Company pursued no investing activities. Results of Operations. Assets for the nine months ended December 31, 2000 decreased by approx. $15,640. Liabilities for the nine months ended December 31, 2000 increased by approx. $25,845. Working capital at December 31, 2000 was approx. $188,178 and at March 31, 2000 it was $229,663, a decrease approx. $41,485. The decrease was a direct result of an increase in accrued salaries for its president in the amount of $15,000, an increase in accounts payable to suppliers of $3,361 and a decrease in cash used in operations of $27,082. Stockholders Equity decreased by the loss for the nine months. There were no equity transactions during the period. Sales for the nine months ended December 31,2000 was $183,451 as compared to $188,809 for the nine months ended December 31, 1999, a slight decrease. Sales are basically flat. The Company has not been able to increase its customer base. The Company in 1999 increased its prices, therefore, increasing its gross profit on sales. The gross profit percentage for the nine months ended December 31, 1999 was approx 20% as compared to the gross profit percentage for the nine months ended December 31,2000 of approx. 28%. There were no increases in salaries. Auto and delivery expenses for the nine months ended December 31, 2000 were $6,059 as compared to $10,055 for the same period ending December 31, 1999, a decrease of $3,996. In 1999 the company's delivery van required extensive repair work to its motor and transmission while in 2000 no major repairs were done. Employee welfare cost (employee hospitalization cost) increased by $2,386 in 2000 for the nine months as compared to the same period in 1999. The increase was due to higher premiums charged by insurance carrier. The number of employees being covered were the same. Office supplies and expenses increased by $860 in 2000 over the same nine month period in 1999. The increase was mainly due to the purchase of computer supplies that were necessary in order resolve Y2K issues. 8 Professional fees increased by approx. $8,764 for the nine months ended December 31,2000 as compared to the same nine month period in 1999. This was due to increased cost for legal and accounting services for quarterly and annual SEC filings and increased cost to the stock transfer agent for maintaining the Company's stock records and services. Rent increased due the Company's lease expiring in April 1999 and increased monthly rental payments for the next three years. Plan of Operation. During the next twelve months, the Company intends to obtain new product lines by negotiating with various manufacturers. If the Company does not achieve the milestones within the above time schedule, their operating costs will be higher and the Company will lose even more money. The Company's liquidity will be decreased due to little or no increase in revenue and higher operating costs. The Company is not delinquent on any of its obligations even though the Company has had limited operating revenues. The Company intends to market its products utilizing cash made available from the sale of its products. The Company is of the opinion that revenues from the sales of its products and the proceeds from the sale of its securities will be sufficient to pay its expenses. The Company does not have any or intends to have any derivative instruments or hedging activities. 9 PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. Not applicable. ITEM 2. CHANGES IN SECURITIES. Not applicable. 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) Not applicable. (b) Not applicable. 10 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. Creative Beauty Supply, Inc. (Registrant) Dated: February 9, 2001 By: /s/ Carmine Catizone ---------------------------- Carmine Catizone, President EX-27 2 0002.txt
5 9-MOS MAR-30-2000 DEC-31-2000 $294,427 $0 $3,401 $0 $79,525 $379,458 $794 $0 $380,252 $191,280 $0 $1,865 $0 $0 $187,107 $380,252 $183,451 $183,451 $130,617 $130,617 $(107,789) $0 $0 $(42,743) $0 $(42,743) $0 $0 $0 $(42,743) $(.02) $(.02)
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