10QSB 1 blkr07dec3.htm

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, 2007

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ____________ to____________

Commission File No. 000-49671

BEAR LAKE RECREATION, INC.

(Exact name of small business issuer as specified in its charter)

 

 

Nevada

87-0620495

(State or Other Jurisdiction of

(I.R.S. Employer I.D. No.)

incorporation or organization)

 

 

4685 S. Highland Drive, Suite #202

Salt Lake City, Utah 84117

(Address of Principal Executive Offices)

 

(801) 278-9424

(Issuer’s Telephone Number)

 

N/A

(Former name, former address and former fiscal year,

if changed since last report)

 

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Issuer was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

 

Indicate by check mark whether the Issuer is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes x No o

 

1

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS

 

Not applicable.

 

Check whether the Issuer 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 a court. Yes o No o

 

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the Issuer’s classes of common equity, as of the latest practicable date: February 08, 2008 - 1,249,816 shares of common stock.

 

Transitional Small Business Disclosure Format (Check one): Yes o No x

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

FINANCIAL STATEMENTS

 

December 31, 2007

C O N T E N T S

 

 

 

2

Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Balance Sheets

December 31, 2007 and June 30, 2007

 

 

 

 

12/31/2007

 

 

 

6/30/2007

 

 

 

(Unaudited)

 

 

 

(Audited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

—

 

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

Accounts Payable

 

$

—

 

 

 

$

—

 

Related Party Payable

 

 

42,502

 

 

 

 

37,651

 

Total Current Liabilities

 

 

42,502

 

 

 

 

37,651

 

Total Liabilities

 

 

42,502

 

 

 

 

37,651

 

 

 

 

 

 

 

 

 

 

 

Stockholders' Deficit

 

 

 

 

 

 

 

 

 

Preferred Stock -- 5,000,000 shares authorized having a

 

 

 

 

 

 

 

 

 

par value of $.001 per share; 0 shares issued

 

 

 

 

 

 

 

 

 

and outstanding

 

 

—

 

 

 

 

—

 

Capital Stock -- 50,000,000 shares authorized having a

 

 

 

 

 

 

 

 

 

par value of $.001 per share; 1,249,816 shares issued

 

 

 

 

 

 

 

 

 

and outstanding

 

 

1,250

 

 

 

 

1,250

 

Additional Paid-in Capital

 

 

82,828

 

 

 

 

82,828

 

Accumulated Deficit during the Development Stage

 

 

(126,580

)

 

 

 

(121,729

)

Total Stockholders' Deficit

 

 

(42,502

)

 

 

 

(37,651

)

Total Liabilities and Stockholders' Deficit

 

$

—

 

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

 

3

Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Statements of Operations

For the Three and Six Months Ended December 31, 2007 and 2006, and

For the Period from Inception (October 22, 1998) through December 31, 2007

(Unaudited)

 

 

 

 

For the

 

 

For the

 

 

For the

 

 

For the

 

 

From Inception

 

 

 

Three Months

 

 

Three Months

 

 

Six Months

 

 

Six Months

 

 

(October 22,

 

 

 

Ended

 

 

Ended

 

 

Ended

 

 

Ended

 

 

1998) Through

 

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

December 31,

 

 

 

2007

 

 

2006

 

 

2007

 

 

2006

 

 

2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

1,396

 

Cost of Goods Sold

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

707

 

Gross Profit

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

689

 

General and Administrative Expenses

 

 

940

 

 

 

1,792

 

 

 

4,851

 

 

 

5,359

 

 

 

107,558

 

Net Income (Loss) from Operations

 

 

(940

)

 

 

(1,792

)

 

 

(4,851

)

 

 

(5,359

)

 

 

(106,869

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Write off of inventory

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(10,645

)

Loss on Sale of Assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(9,066

)

Total Other Income (Expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(19,711

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Before Taxes

 

 

(940

)

 

 

(1,792

)

 

 

(4,851

)

 

 

(5,359

)

 

 

(126,580

)

Provision for Income Taxes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net Loss

 

$

(940

)

 

$

(1,792

)

 

$

(4,851

)

 

$

(5,359

)

 

$

(126,580

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss Per Share - Basic and Diluted

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.01

)

 

$

(0.17

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

 

1,249,816

 

 

 

1,249,816

 

 

 

1,249,816

 

 

 

1,249,816

 

 

 

733,931

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

 

4

Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Statements of Cash Flows

For the Six Months Ended December 31, 2007 and 2006, and

For the Period from Inception (October 22, 1998) through December 31, 2007

(Unaudited)

 

 

 

For the

 

 

For the

 

 

 

 

 

 

Six Months

 

 

Six Months

 

 

From Inception

 

 

 

Ended

 

 

Ended

 

 

(October 22,

 

 

 

December 31,

 

 

December 31,

 

 

1998) Through

 

 

 

2007

 

 

2006

 

 

December 31, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Operating Activities

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

(4,851

)

 

$

(5,359

)

 

$

(126,580

)

Adjustments to reconcile net income (loss) to

 

 

 

 

 

 

 

 

 

 

 

 

net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and Amortization

 

 

—

 

 

 

—

 

 

 

4,799

 

Shares issued for services

 

 

—

 

 

 

—

 

 

 

3,000

 

Loss on disposal of equipment

 

 

—

 

 

 

—

 

 

 

9,066

 

Write off of related party receivable

 

 

—

 

 

 

—

 

 

 

1,000

 

Write off of Website development costs

 

 

—

 

 

 

—

 

 

 

8,877

 

Write off of inventory

 

 

—

 

 

 

—

 

 

 

10,645

 

Decrease / (Increase) - Inventory

 

 

—

 

 

 

—

 

 

 

(10,645

)

Increase / (Decrease) - Accounts Payable

 

 

—

 

 

 

680

 

 

 

—

 

Increase / (Decrease) - Related Party Payables

 

 

4,851

 

 

 

4,679

 

 

 

42,502

 

Net Cash From Operating Activities

 

 

—

 

 

 

—

 

 

 

(57,336

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows From Investing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

—

 

 

 

—

 

 

 

(12,433

)

Website development costs

 

 

—

 

 

 

—

 

 

 

(10,309

)

Net Cash From Investing Activities

 

 

—

 

 

 

—

 

 

 

(22,742

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities

 

 

 

 

 

 

 

 

 

 

 

 

Stock offering costs

 

 

—

 

 

 

—

 

 

 

(6,072

)

Related-party receivable

 

 

—

 

 

 

—

 

 

 

(1,000

)

Proceeds from the issuance of common stock

 

 

—

 

 

 

—

 

 

 

87,150

 

Net Cash From Financing Activities

 

 

—

 

 

 

—

 

 

 

80,078

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Increase In Cash

 

 

—

 

 

 

—

 

 

 

—

 

Beginning Cash Balance

 

 

—

 

 

 

—

 

 

 

—

 

Ending Cash Balance

 

$

—

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid during the year for interest

 

 

—

 

 

 

—

 

 

$

—

 

Cash paid during the year for income taxes

 

 

—

 

 

 

—

 

 

$

—

 

 

See accompanying notes to financial statement.

 

5

Bear Lake Recreation, Inc.

(A Development Stage Company)

Condensed Notes to Financial Statements

December 31, 2007

(Unaudited)

 

NOTE 1 PRELIMINARY NOTE

 

The accompanying condensed financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the interim financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for a fair statement of the results for the period. Certain information and disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-KSB for the year ended June 30, 2007.

 

NOTE 2 LIQUIDITY/GOING CONCERN

 

The Company does not have significant assets, nor has it established operations and has accumulated losses since inception. These factors raise substantial doubt about the Company’s ability to continue as a going concern. It is the intent of the Company to seek a merger with an existing, well-capitalized operating company. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

NOTE 3 RELATED PARTY TRANSACTIONS

 

The Company has recorded a liability of $42,502 to a shareholder as of December 31, 2007. The unsecured loan bears no interest and is due on demand. For the three months ended December 31, 2007 and 2006, a shareholder paid $940 and $1,792 in expenses on behalf of the Company, respectively.

 

 

 

6

Item 2. Management’s Discussion and Analysis or Plan of Operation.

 

Plan of Operation

 

Our Company’s plan of operation for the next 12 months is to: (i) consider guidelines of industries in which our Company may have an interest; (ii) adopt a business plan regarding engaging in business in any selected industry; and (iii) to commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.

 

Our Company’s only foreseeable cash requirements during the next 12 months will relate to maintaining our Company in good standing in the State of Nevada, as well as legal and accounting fees. Management does not anticipate that our Company will have to raise additional funds during the next 12 months.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Three Months Ended December 31, 2007 Compared to Three Months Ended December 31, 2006  

 

The Company has had no operations during the quarterly period ended December 31, 2007, nor do we have operations as of the date of this filing. General and administrative expenses were $940 for the December 31, 2007, period compared to $1,792 for the December 31, 2006, period. General and administrative expenses for the three months ended December 31, 2007, were comprised mainly of accounting and transfer fees. The Company had no legal fees during the period, thus reducing the general and administrative expenses. We had a net loss of $940 for the December 31, 2007, period compared to a net loss of $1,792 for the December 31, 2006, period.

 

Six Months Ended December 31, 2007 Compared to Six Months Ended December 31, 2006

 

The Company has had no operations during the six month period ended December 31, 2007, nor do we have operations as of the date of this filing. General and administrative expenses were $4,851 for the December 31, 2007, period compared to $5,359 for the December 31, 2006, period. General and administrative expenses for the six months ended December 31, 2007, were comprised mainly of accounting, transfer and filing fees. The Company had no legal fees during the period, thus reducing the general and administrative expenses. We had net loss of $4,851 for the December 31, 2007, period compared to a net loss of $5,359 for the December 31, 2006, period.

 

Off-balance Sheet Arrangements

 

None; not applicable

 

7

Item 3(a)T. Controls and Procedures.

 

Management’s Annual Report on Internal Control Over Financial Reporting

 

As of the end of the period covered by this Quarterly Report, we carried out an evaluation, under the supervision and with the participation of our President and Secretary, of the effectiveness of our disclosure controls and procedures. Based on this evaluation, our President and Secretary concluded that information required to be disclosed is recorded, processed, summarized and reported within the specified periods and is accumulated and communicated to management, including our President and Secretary, to allow for timely decisions regarding required disclosure of material information required to be included in our periodic Securities and Exchange Commission reports. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives and our President and Secretary have concluded that our disclosure controls and procedures are effective to a reasonable assurance level of achieving such objectives. However, it should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote. In addition, we reviewed our internal controls over financial reporting, and there have been no changes in our internal controls or in other factors in the last fiscal quarter that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

 

Changes in Internal Control Over Financial Reporting

 

None; not applicable.

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

None; not applicable.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

There were no sales of equity securities during the period of this Quarterly Report.

 

Recent Sales of Unregistered Securities

 

None; not applicable.

 

Use of Proceeds of Registered Securities

 

None; not applicable.

 

Purchases of Equity Securities by Us and Affiliated Purchasers

 

None; not applicable.

 

Item 3. Defaults Upon Senior Securities.

 

None; not applicable.

 

Item 4. Submission of Matters to a Vote of Security Holders.

 

None; not applicable.

 

8

Item 5. Other Information.

 

 

(a)

None; not applicable.

 

 

(b)

Nominating Committee

 

There are no established committees because there are currently no material operations.

 

Item 6.Exhibits.

 

(a) Exhibits and index of exhibits.

 

31.1 302 Certification of Wayne Bassham

 

31.2 302 Certification of Todd Albiston

 

32 906 Certification

 

 

9

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the Registrant has caused this Quarterly Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BEAR LAKE RECREATION, INC.

 

Date:

02/11/08

 

By:

/s/Wayne Bassham

 

 

 

 

Wayne Bassham

 

 

 

 

President and Director

 

 

 

 

 

Date:

02/11/08

 

By:

/s/Todd Albiston

 

 

 

 

Todd Albiston

 

 

 

 

Secretary and Director

 

 

10