New
York
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13-3832215
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
Number)
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PART
I. FINANCIAL INFORMATION
|
|
Item
1. Financial statements:
|
|
Balance
sheet as of September 30, 2007(unaudited)
|
1
|
Statements
of operations for the nine and three months ended September 30,
2007 and
2006 (unaudited)
|
2
|
Statements
of cash flows for the nine months Ended September 30, 2007 and
2006
(unaudited)
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3
|
|
|
Notes
to financial Statements
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4
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Item
2. Management's discussion and analysis or Plan
of Operation
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7
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Item
3 A(T). Controls and Procedures
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9
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PART
II. OTHER INFORMATION
|
|
Item
2. Unregistered sales of equity securities and use of
proceeds
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10
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Item
6. Exhibits
|
11
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SIGNATURES
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12
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CERTIFICATIONS
|
|
ASSETS
|
||||
Current
assets:
|
||||
Cash
|
$
|
2,136
|
||
Fees
receivable
|
24,653
|
|||
Total
current assets
|
26,789
|
|||
Other
assets:
|
||||
Tradename,
net of amortization
|
56,625
|
|||
Total
other assets
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56,625
|
|||
$
|
83,414
|
|||
LIABILITIES
AND STOCKHOLDERS' DEFICIENCY
|
||||
Current
liabilities:
|
||||
Accounts
payable
|
$
|
18,458
|
||
Accrued
expense
|
163,025
|
|||
Notes
payable
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815,000
|
|||
Notes
payable, officer
|
45,901
|
|||
Total
current liabilities
|
1,042,384
|
|||
Stockholders'
deficiency:
|
||||
Preferred
stock $.001 par value, authorized 2,000,000 shares, none
issued
|
-
|
|||
Common
stock, $.025 par value, authorized 30,000,000 shares, issued and
outstanding 684,445 shares
|
17,110
|
|||
Additional
paid in capital
|
12,254,135
|
|||
Accumulated
deficit
|
(13,230,215
|
)
|
||
Total
stockholders’ deficiency
|
(958,970
|
)
|
||
Total
liabilities and stockholders’ deficiency
|
$
|
83,414
|
Nine
Months
|
Three
Months
|
||||||||||||
Ended
September 30
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Ended
September 30
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||||||||||||
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|||||||||||||
2007
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2006
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2007
|
2006
|
||||||||||
Licensing
fees
|
$
|
11,569
|
$
|
4,614
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$
|
6,516
|
$
|
2,136
|
|||||
|
|||||||||||||
Selling,
general and administrative expenses
|
39,544
|
180,324
|
14,638
|
11,901
|
|||||||||
Interest
expense
|
79,463
|
52,975
|
26,487
|
26,488
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|||||||||
119,007
|
233,299
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41,125
|
38,389
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||||||||||
Loss
from Continuing Operations
|
(
107,438
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)
|
(
228,685
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)
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(34,609
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)
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(36,253
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)
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|||||
Discontinued
operations
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|||||||||||||
Loss
from discontinued operations
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-
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(
383,781
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)
|
-
|
-
|
||||||||
Gain
on disposal of assets
|
-
|
527,371
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-
|
-
|
|||||||||
Gain
from discontinued operations
|
-
|
143,590
|
-
|
-
|
|||||||||
Net
loss
|
$ |
(107,438
|
)
|
$ |
(85,095
|
)
|
$ |
(34,609
|
)
|
$ |
(36,253
|
)
|
|
Earnings
per common share:
|
|||||||||||||
Basic
and diluted:
|
|||||||||||||
Loss
from continuing operations
|
$
|
(
0.16
|
)
|
$
|
(
0.36)
|
$
|
(
0.05
|
)
|
$
|
(
0.05
|
)
|
||
Gain
from discontinued operations
|
(
0.00
|
)
|
0.23
|
(
0.00
|
)
|
(
0.00
|
)
|
||||||
Net
loss per common share
|
$
|
(
0.16
|
)
|
$
|
(
0.13
|
)
|
$
|
(
0.05
|
)
|
$
|
(
0.05
|
)
|
|
Weighted
average number of common shares outstanding
|
|||||||||||||
Basic
and diluted
|
684,445
|
642,413
|
684,445
|
684,445
|
2007
|
2006
|
||||||
Operating
activities:
|
|||||||
Loss
from continuing operations
|
$ |
(107,438
|
)
|
$ |
(228,685
|
)
|
|
Adjustments
to reconcile loss from continuing operations
to net cash used in continuing operating
activities:
|
|||||||
Amortization
|
4,500
|
4,500
|
|||||
Increase
(decrease) in operating assets and liabilities:
|
|||||||
Fees
receivable
|
(11,569
|
)
|
(4,614
|
)
|
|||
Prepaid
expenses
|
-
|
19,929
|
|||||
Accounts
payable
|
9,458
|
9,000
|
|||||
Accrued
expenses
|
77,561
|
55,975
|
|||||
Net
cash used in operating activities
|
(27,488
|
)
|
(143,895
|
)
|
|||
Loss
from discontinued operations
|
-
|
(383,781
|
)
|
||||
Adjustments
to reconcile loss from discontinued operations
to net cash provided used in discontinued
operating activities:
|
|||||||
Gain
on disposal of assets
|
-
|
527,371
|
|||||
Depreciation
|
-
|
31,654
|
|||||
Common
stock issued for services
|
-
|
179,271
|
|||||
Decrease
in net assets from discontinued operations
|
-
|
414,671
|
|||||
Decrease
in net liabilities from discontinued operations
|
-
|
(651,213
|
)
|
||||
Net
cash provided by discontinued operations
|
-
|
117,973
|
|||||
|
|||||||
Investing
activities:
|
|||||||
Sale
of Property and Equipment
|
-
|
249,198
|
|||||
Net
cash provided by investing activities
|
-
|
249,198
|
|||||
Financing
activities:
|
|||||||
Proceeds
from note payable
|
-
|
15,000
|
|||||
Proceeds
from officer loan
|
29,624
|
11,120
|
|||||
Principal
payments of notes payable
|
-
|
(208,241
|
)
|
||||
Principal
payments of capital lease obligations
|
-
|
(48,599
|
)
|
||||
Net
cash provided by (used in) financing activities
|
29,624
|
(230,720
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
2,136
|
(7,444
|
)
|
||||
Cash
and cash equivalents, beginning of period
|
-
|
7,444
|
|||||
Cash
and cash equivalents, end of period
|
$
|
2,136
|
$
|
-
|
|||
Supplemental
disclosures:
|
|||||||
Cash
paid during the year for:
|
|||||||
Taxes:
|
$
|
-
|
$
|
-
|
|||
Interest:
|
$
|
-
|
$
|
-
|
2008
|
$
|
6,000
|
||
2009
|
6,000
|
|||
2010
|
6,000
|
|||
2011
|
6,000
|
|||
2012
|
6,000
|
|||
Thereafter
|
26,625
|
|||
$
|
56,625
|
3.1
|
Restated
Certificate of Incorporation. Incorporated by reference to the Company's
Registration Statement on Form SB-2 Registration Number
33-96094.
|
|
3.2
|
Amended
and Restated By-laws. Incorporated by reference to the Company's
Registration Statement on Form SB-2 Registration Number
33-96094.
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|
3.3
|
Amendment
to Certificate of Incorporation.Incorporated by reference to the
Company's
Current Report on Form 8-K, dated February 23, 2005.
|
|
3.4
|
Amendment
to Certificate of Incorporation.Incorporated by reference to the
Company's
Current Report on Form 8-K, dated March 22, 2006.
|
|
4.1
|
Form
of certificate for shares of Common Stock. Incorporated by reference
to
the Company's Registration Statement on Form SB-2 Registration Number
33-96094.
|
|
31.1
|
Certification
dated , November 14, 2007 pursuant to Exchange Act Rule 13a-14(a)
or
15d-14(a) as adopted pursuant to Section 302 of the Sarbanes Oxley-Act
of
2002 by Anthony J. Merante, President, Chief Executive Officer, and
Chief
Financial Officer.
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32.1
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Certification
dated November 14 , 2007 pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 made by
Anthony
J. Merante, President, Chief Executive Officer, and Chief Financial
Officer.
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By: | ||
(principal
financial officer and principal accounting officer)
|
Date:
November 14, 2007
|