-----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, FvUj06Dtoym7YdPXVSyQh7wcDwQ33uEQhY2G5ArNKQfKifPfNrV4nqOQ6hTeodmW JI2WvlRJrM7sY/oYY5Uq+A== 0001014897-04-000010.txt : 20040202 0001014897-04-000010.hdr.sgml : 20040202 20040202113429 ACCESSION NUMBER: 0001014897-04-000010 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031231 FILED AS OF DATE: 20040202 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: 1934 Act SEC FILE NUMBER: 000-26361 FILM NUMBER: 04558135 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 creative10q3q03.txt FORM 10QSB FOR 12-31-2003 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, 2003 [ ] 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, Totowa, 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: 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: 3,494,650 Transitional Small Business Disclosure Format. YES: NO: X 2 CREATIVE BEAUTY SUPPLY, INC. CONSOLIDATED BALANCE SHEETS ASSETS DECEMBER 31, MARCH 31, 2003 2003 ---------- ---------- (Unaudited) CURRENT ASSETS: Cash and cash equivalents $ 256,668 $ 332,755 Marketable securities 200,000 160,000 Accounts receivable 1,456 1,554 Inventory 53,860 63,912 Prepaid expenses 1,300 2,858 ---------- ---------- TOTAL CURRENT ASSETS 513,284 561,079 ---------- ---------- PROPERTY AND EQUIPMENT, net of accumulated depreciation 6,497 7,906 ---------- ---------- TOTAL ASSETS $ 519,781 $ 568,985 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade $ 3,720 $ 18,468 Payroll taxes withheld and accrued 925 1,202 Accrued expenses 31,845 16,095 ---------- ---------- TOTAL CURRENT LIABILITIES 36,490 35,765 ---------- ---------- STOCKHOLDERS' EQUITY: Preferred stock, par value $.001, authorized 10,000,000 shares, issued and outstanding -0- shares - - Common stock, par value $.001, authorized 100,000,000 shares, issued and outstanding 3,494,650 shares 3,495 3,495 Additional paid-in-capital 1,288,781 1,288,781 Accumulated deficit (808,985) (719,056) Accumulated other comprehensive (loss) - (40,000) ---------- ---------- TOTAL STOCKHOLDERS' EQUITY 483,291 533,220 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 519,781 $ 568,985 ========== ========== The accompanying notes are an integral part of these consolidated financial statements 3 CREATIVE BEAUTY SUPPLY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED
FOR THE NINE MONTHS ENDED FOR THE THREE MONTHS ENDED DECEMBER 31, DECEMBER 31, 2003 2002 2003 2002 ---------- ---------- ---------- ---------- NET SALES $ 132,162 $ 149,529 $ 40,849 $ 46,336 COST OF GOODS SOLD - including inventory write down $13,741 in December 2003 112,202 112,894 44,174 35,435 ---------- ---------- ---------- ---------- GROSS PROFIT(LOSS) 19,960 36,635 (3,325) 10,901 ---------- ---------- ---------- ---------- OPERATING EXPENSES: Salaries - officers 23,890 24,220 10,370 8,030 Payroll taxes 2,008 2,056 799 695 Auto and delivery 4,354 6,523 1,234 2,215 Employee welfare 8,638 7,097 2,997 2,442 Insurance 2,898 3,680 952 1,360 Office 1,411 1,874 478 597 Professional fees 53,004 46,367 16,546 6,134 Rent 11,700 11,655 3,900 3,900 Store supplies 320 888 153 213 Taxes 1,109 500 550 260 Telephone 2,311 2,229 814 533 Utilities 1,256 1,378 397 282 Miscellaneous 688 872 201 314 Depreciation 1,409 1,236 470 412 ---------- ---------- ---------- ---------- TOTAL OPERATING EXPENSES 114,996 110,575 39,861 27,387 ---------- ---------- ---------- ---------- LOSS FROM OPERATIONS BEFORE OTHER INCOME (95,036) (73,940) (43,186) (16,486) ---------- ---------- ---------- ---------- OTHER INCOME: Gain on sale of securities - 8,333 - - Gain on sale of assets - 700 - - Interest income 5,107 11,557 1,353 3,385 ---------- ---------- ---------- ---------- TOTAL OTHER INCOME 5,107 20,590 1,353 3,385 ---------- ---------- ---------- ---------- NET LOSS $ (89,929) $ (53,350) $ (41,833) (13,101) ========== ========== ========== ========== LOSS PER COMMON SHARE, BASIC AND DILUTED $ (0.03) $ (0.02) $ (0.01) NIL ========== ========== ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 3,494,650 3,494,650 3,494,650 3,494,650 ========== ========== ========== ==========
The accompanying notes are an integral part of these consolidated financial statements. 4 CREATIVE BEAUTY SUPPLY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED DECEMBER 31, 2003 AND 2002 (UNAUDITED) 2003 2002 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (89,929) $ (53,350) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation 1,409 1,236 Inventory obsolescence adjustment 13,741 - Gain on sale of marketable securities - (8,333) Gain on sale of assets (700) Changes in operating assets and liabilities: Accounts receivable 98 (1) Inventory (3,689) 2,430 Prepaid expenses 1,558 2,494 Accounts payable (14,748) 8,024 Payroll taxes withheld and accrued (277) 10 Accrued expenses 15,750 169 ---------- ---------- Net cash provided by (used in) operating activities (76,087) (48,021) ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property and equipment - (9,394) Proceeds from sale of marketable securities - 25,000 Proceeds from sale of assets - 700 ---------- ---------- Net cash provided by investing activities - 16,306 ---------- ---------- NET DECREASE IN CASH AND CASH EQUIVALENTS (76,087) (31,715) CASH AND CASH EQUIVALENTS - beginning of period 332,755 383,108 ---------- ---------- CASH AND CASH EQUIVALENTS - end of period $ 256,668 $ 351,393 ========== ========== The accompanying notes are an integral part of these consolidated financial statements. 5 CREATIVE BEAUTY SUPPLY, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2003 NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America 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 ended December 31, 2003 are not necessarily indicative of the results that may be expected for the year ended March 31, 2004. The unaudited consolidated financial statements should be read in conjunction with the financial statements and footnotes thereto included in the Company's Form 10-KSB for the year ended March 31, 2003. Note 2 - PRINCIPALS OF CONSOLIDATION The consolidated financial statements include the accounts of Creative Beauty Supply, Inc. and its inactive subsidiary Creative Beauty Supply of New Jersey Corporation (from date of its inception, October 1, 2003), hereafter the "Company". All intercompany accounts and transactions have been eliminated in consolidation. NOTE 3 - INVENTORY The Company's policy is to compute inventory for interim reporting on the gross profit method using the gross profit for the prior fiscal year, however, for December 31, 2003 the Company took a physical inventory after removing all old and slow moving inventory (approximately $13,741) from its shelves. Cost of goods sold was charged for the inventory write down. NOTE 4 - DEFERRED INCOME TAXES The Company has a deferred tax asset at December 31, 2003 of $130,641 resulting from net operating loss carryforwards which expire through the year 2018. A valuation allowance has been recorded for the full amount of the deferred tax asset. 6 NOTE 5 - COMPREHENSIVE LOSS Other comprehensive income for the nine months ended December 31, 2003 consisted of an unrealized holding gain arising during the period (net of an income taxes of -0- after applying net operating loss carry forwards) in the amount of $40,000. Accordingly, this unrealized gain is a non-cash activity for purposes of the statement of cash flows. Other comprehensive loss for the nine months ended December 31, 2002 consisted of an unrealized holding loss arising during the period ( net of an income tax benefit of $ -0-) in the amount of $60,000. NOTE 6 - MARKETABLE SECURITIES The cost and fair value of marketable equity securities that are available-for-sale are as follows: December 31, March 31, 2003 2003 ---------- ---------- Cost $ 200,000 $ 200,000 Gross unrealized loss - (40,000) ---------- ---------- $ 200,000 $ 160,000 ========== ========== Fair market value is determined by market quotations. The unrealized loss of marketable equity securities that are available for sale are as follows: December 31, March 31, 2003 2003 ---------- ---------- Net unrealized loss $ - $ (40,000) Deferred income taxes - - ---------- ---------- $ - $ (40,000) ========== ========== These amounts are presented as accumulated other comprehensive (loss). During the nine months ended December 31, 2003 and 2002 sales proceeds and gross realized gains and losses on securities classified as available-for-sale were: 2003 2002 ---------- ---------- Sales proceeds $ - $ 25,000 ========== ========== Gross realized gains - $ 8,333 ========== ========== 7 The method used to determine the costs of securities sold was actual cost per share. 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. Hairstyles in the industry change drastically from season to season. The recent trend away from straight hair is expected to 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. Results of Operations. The Company sells approximately 1,000 different products at varying mark ups ranging from 20 to 40 percent. The Company has two types of customers, beauty salons and the general public. The gross profit margin on sales of merchandises to the general public generally ranges from 30 to 40 percent depending on the product sold. The gross margin on sales of merchandise to beauty salons is somewhat less generally ranging from 20 to 28 percent depending on the product sold and the discount given. The Company's gross margin decreased for the nine month period ended December 31, 2003 as compared to the same nine month period ended December 31, 2002. The decrease was due to a write down of old and slow moving inventory of approximately $13,741 during the month of December 2003. The gross margin prior to the write down was approximately 25.5% and after the write down 15.1% as compared to 24.5% for the nine month period ended December 31, 2002. The write down of inventory had the same effect on gross margin for the three month period ended December 31, 2003. The gross margin prior to the write down was approximately 25.5% and after the write down (8.1)% as compared to 23.5% for the three month period ended December 31, 2002. Sales have been steadily decreasing. Sales decreased by approximately $17,367 or 11.6% for the nine month period ended December 31, 2003 as compared to the same nine month period ended December 31, 2002. The decrease in sales is mostly due to loss of customers. Sales decreased by approximately $5,487 or 11.8% for the three month period ended December 31, 2003 as compared to the same three month period ended December 31, 2002. 8 Nine Months Ended December 31, 2003 as compared to nine months ended December 31, 2002: For the nine months ended December 31, 2003, the Company had a net loss of $(89,929). The Company had net sales of $132,162 with a cost of goods sold of $112,202 resulting in gross profit of $19,960 for the nine months ended December 31, 2003. The Company had operating expenses of $114,996 for the nine months ended December 31, 2003. These expenses primarily consisted of officer's salaries of $23,890, payroll taxes of $2,008, auto and delivery of $4,354, employee welfare of $8,638, insurance of $2,898, office expense of $1,411, professional fees of $53,004, rent of $11,700,Store supplies of $320, taxes of $1,109, telephone of $2,311, utilities of $1,256, miscellaneous of $688 and depreciation of $1,409. During the three month period ended December 31, 2003, the Company incorporated a wholly owned subsidiary, Creative Beauty Supply of New Jersey Corporation. This subsidiary was inactive at December 31, 2003. The subsidiary had no sales. For the nine months ended December 31, 2002, the Company had a net loss of $(53,350). The Company had net sales of $149,529 with a cost of goods sold of $112,894 resulting in gross profit of $36,635 for the nine months ended December 31, 2002. The Company had operating expenses of $110,575 for the nine months ended December 31, 2002. These expenses primarily consisted of officer's salaries of $24,220, payroll taxes of $2,056, auto and delivery of $6,523, employee welfare of $7,097, insurance of $3,680, office of $1,874, professional fees of $46,367, rent of $11,655, store supplies of $888, taxes of $500, telephone of $2,229, utilities of $1,378, miscellaneous of $872 and depreciation of $1,236. Assets for the nine months ended December 31, 2003 decreased by approx. $49,204. This was a direct result from the decrease in cash used in operations net of an increase in market value of marketable securities held for sale. Liabilities for the nine months ended December 31, 2003 increased by approx. $725. Working capital at December 31, 2003 was approx. $476,794 and at March 31, 2003 it was $525,314, a decrease of approx. $48,520. The decrease was a direct result from the decrease in current assets of $47,795 plus the increase of current liabilities of $725. Cash decreased by $76,087, market value of securities held for sale increased by $40,000 and inventory decreased by $10,052. Accounts payable decreased by $14,748 while accrued expenses increased by $15,750. Stockholders Equity decreased by the net loss net of the adjustment to current other comprehensive income for the nine months. There were no equity transactions during the period. 9 Sales for the nine months ended December 31, 2003 were $132,162 as compared to $149,529 for the nine months ended December 31, 2002, a 11.6% decrease. Gross profit for the nine months ended December 31, 2003 was $19,960 as compared to $36,635 for the nine months ended December 31, 2002, a 45.5% decrease. Cost of sales for 2003 included an approximate $13,741 inventory write down. Operating expenses for the nine months ended December 31, 2003 were $114,996 as compared to $110,575 for the nine months ended December 31, 2002, an increase of 4%. Sales for the two periods were as follows: 2003 2002 ---------- ---------- Wholesale 57,122 43% 65,837 44% Retail 75,040 57% 83,692 56% ---------- ---------- 132,162 149,529 ========== ========== Sales are decreasing due to loss of customers causing a decrease in sales volume. Wholesale sales have decreased by approx. 13% and retail sales have decreased by approx. 10%. Gross profit decreased due to lower sales volume and the inventory write down in December 2003. Operating expenses decreased by approx. 4% as compared to 2002. All categories of expenses were consistent with 2002 with the exception of the following: Auto and delivery - In 2002 the Company's delivery van required numerous repairs prior to its replacement with another used van. In 2003 repairs have been at a minimum. Professional fees - Annual audit fees and quarterly review fees have increased in 2003. Professional fees increased by approximately $6,637 or 19% The unrealized gain from marketable securities held for sale was due directly from the increase in market value over the nine month period. Three months ended December 31, 2003 as compared to three months ended December 31, 2002: For the three months ended December 31, 2003, the Company had a net loss of $(41,833). The Company had net sales of $40,849 with cost of goods sold of $44,174 resulting in gross profit of ($3,325) for the three months ended December 31, 2003. The negative gross profit was directly due to the inventory write down in December 2003 of approximately $13,741. 10 The Company had operating expenses of $39,861 for the three months ended December 31, 2003. Those expenses primarily consisted of officer's salaries of $10,370, payroll taxes of $799, auto and delivery of $1,234, employee welfare of $2,997, insurance of $952, office of $478, professional fees of $16,546, rent of $3,900, store supplies of $153, taxes of $550, telephone of $814, utilities of $397, miscellaneous of $201 and depreciation of $470. For the three months ended December 31, 2002, the Company had a net loss of ($13,101). The Company had sales of $46,336 with cost of goods sold of $35,435 resulting in gross profit of $10,901 for the three months ended December 31, 2002. The Company had operating expenses of $27,387 for the three months ended December 31, 2002. These expenses primarily consisted of officer's salaries of $8,030, payroll taxes of $695, auto and delivery of $2,215, employee welfare of $2,442, insurance of $1,360, office of $597, professional fees of $6,134, rent of $3,900, store supplies of $213, taxes of $260, telephone of $533, utilities of $282, miscellaneous of $314 and depreciation of $412. Plan of Operation. During the next twelve months, the Company may obtain new product lines by negotiating with various manufacturers. The Company does not intend to hire any additional employees. 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, the proceeds from the sale of its securities, and its existing cash balances will be sufficient to pay its expenses for the next twelve months. The Company does not have nor does it intend to have pension and/or other post-retirement benefits in the future. The Company does not have any or intends to have any derivative instruments or hedging activities. Critical Accounting Policies For the nine month period ended December 31, 2003, the Company's accounting policies have remained unchanged since the year ended March 31, 2003. Off Balance Sheet Arrangements During the nine month period ended December 31, 2003, the Company had no off balance sheet arrangements. 11 Item 3. Controls and Procedures Evaluation of Disclosure Controls and Procedures Our management, under the supervision and with the participation of our chief executive officer and chief financial officer, conducted an evaluation of our "disclosure controls and procedures" (as defined in Securities Exchange Act of 1934 (the "Exchange Act") Rules 13a-14(c)) within 90 days of the filing date of this quarterly report on Form 10-QSB (the "Evaluation Date"). Based on their evaluation, our chief executive officer and chief financial officer have concluded that as of the Evaluation Date, our disclosure controls and procedures are effective to ensure that all material information required to be filed in this quarterly report on Form 10-QSB has been made known to them in a timely fashion. Changes in Internal Controls There have been no significant changes (including corrective actions with regard to significant deficiencies or material weaknesses) in our internal controls or in other factors that could significantly affect these controls subsequent to the Evaluation Date set forth above. 12 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) Exhibit 99 - Certifications pursuant to 18 U.S.C. Section 1350 (b) Not applicable. 13 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 1, 2004 By: /s/ Carmine Catizone ---------------------------- Carmine Catizone, President 14 CERTIFICATIONS I, Carmine Catizone, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Creative Beauty Supply, Inc. 2. Based on my knowledge, the quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: (a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and (c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 15 (6) The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: February 1, 2004 /s/Carmine Catizone - -------------------------- Carmine Catizone Chief Executive Officer 16 CERTIFICATION I, Daniel Generelli, certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Creative Beauty Supply, Inc. 2. Based on my knowledge, the quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present, in all material respects, the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have: (a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; (b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and (c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent function): (a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 17 (6) The registrant's other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: February 1, 2004 /s/Daniel Generelli - -------------------------------- Daniel Generelli, Chief Financial Officer
EX-99 3 creative10q3q03ex99.txt SARBANES-OXLEY CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Creative Supply, Inc. (the "Company") on Form 10-QSB for the period ending December 31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Carmine Catizone, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. /s/Carmine Catizone - ----------------------------- Carmine Catizone Chief Executive Officer February 1, 2004 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Creative Supply, Inc. (the "Company") on Form 10-QSB for the period ending December 31, 2003 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Carmine Catizone, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. /s/Daniel Generelli - ----------------------------- Daniel Generelli Chief Financial Officer February 1, 2004
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