10QSB 1 eg10q.htm QUARTERLY REPORT eg10q

UNITED STATES
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: June 30, 2001

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period ended __________________
 
Commission file number __________________

__________EXPRESSIONS GRAPHICS, INC.______
(Exact name of small business as specified in its charter)

Nevada
(State or other jurisdiction of
incorporation or organization)

88-0448389
(IRS Employer Identification #)

101 Convention Center Drive, Suite 700
Las Vegas, Nevada 89146
(Address of principal executive offices)

(888) 809-3446
(Telephone Number)

Former address: 5300 W. Sahara, Suite 101, Las Vega, Nevada 89146
(Former name, former address, and former fiscal year, if changed since last report)

Applicable only to issuers involved in bankruptcy proceedings during the preceding 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 distribution of securities under a plan confirmed by a court.

Applicable only to corporate issuers.

State the number of shares outstanding of each of the issuer's classes of common equity, as of the last practicable date: Common Stock 1,370,000 as of 06/30/01

Transitional Small Business Disclosure Format: [ X ] YES [ ] NO

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Expressions Graphics, Inc. Quarterly Report
   
   
Table of Contents  
   
   
FINANCIAL INFORMATION  
ITEM 1 - FINANCIAL STATEMENTS AND NOTES 3
   
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION 8
   
   
OTHER INFORMATION  
ITEM 1. - LEGAL PROCEEDINGS 9
ITEM 2. - CHANGES IN SECURITIES AND USE OF PROCEEDS 9
ITEM 3. - DEFAULTS UPON SENIOR SECURITIES 9
ITEM 4. - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 9
ITEM 5. - OTHER INFORMATION 9
ITEM 6. - EXHIBITS AND REPORTS ON FORM 8-K 9
   
   
SIGNATURES 10

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  Quarterly Report
FINANCIAL STATEMENTS    
Expressions Graphics, Inc.    
(A Development Stage Company)    
BALANCE SHEET    
June 30, 2001    
(Unaudited)    
ASSETS    
     
Current Assets    
     
Cash $ 9,587
     
Accounts Receivable   258
     
Stock subscription receivable   15,500
     
Other Current Assets 210
     
TOTAL ASSETS $ 25,555
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
     
Current Liabilities    
     
Accounts Payable and Accrued expenses $ 683
     
Due to Stockholder 22
     
Total Liabilities 705
     
Stockholders’ Equity    
     
Common Stock    
Par value $0.001 per share;    
25,000,000 shares authorized;    
1,370,000 shares issued and outstanding   1,370
     
Additional Paid - In Capital   102,130
Accumulated Deficit (78,650)
     
Total Stockholders’ Equity 24,850
     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 25,555

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        Quarterly Report
             
Expressions Graphics, Inc.            
(A Development Stage Company)            
STATEMENT OF OPERATIONS            
(Unaudited)            
             
          For the Period From
          January 13, 2000
          (Inception)
  3 Months Ended 3 Months Ended   to
  June 30, 2001 June 30, 2000 June 30, 2001
             
             
Sales $ - $ - $ 240
             
Cost of Goods Sold - - 186
             
Gross Profit   -   -   54
             
             
General and Administrative Expenses (12,237) (4,124) (78,704)
             
Operating loss before taxes   (12,237)   (4,124)   (78,650)
             
Income tax provision - - -
             
Net Loss $ (12,237) $ (4,124) $ (78,650)
             
             
             
Net loss per share:            
Both basic and dilutive $ (0.01) $ (0.01) $ (0.14)
             
             
Weighted average shares            
outstanding both basic and dilutive 838,043 560,000   567,453

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        Quarterly Report
             
Expressions Graphics, Inc.            
(A Development Stage Company)            
STATEMENT OF OPERATIONS            
(Unaudited)            
             
          For the Period From
          January 13, 2000
          (Inception)
  6 Months Ended 6 Months Ended   to
  June 30, 2001 June 30, 2000 June 30, 2001
             
             
Sales $ 240 $ - $ 240
             
Cost of Goods Sold 186 - 186
             
Gross Profit   54   -   54
             
             
General and Administrative Expenses (29,411) (27,024) (78,704)
             
Operating loss before taxes   (29,357)   (27,024)   (78,650)
             
Income tax provision - - -
             
Net Loss $ (29,357) $ (27,024) $ (78,650)
             
             
             
Net loss per share:            
Both basic and dilutive $ (0.04) $ (0.05) $ (0.14)
             
             
Weighted average shares            
outstanding both basic and dilutive 704,945 560,000   567,453

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        Quarterly Report
Expressions Graphics, Inc.            
(A Development Stage Company)            
STATEMENT OF CASH FLOWS            
(Unaudited)            
             
             
          For the Period From
          January 13, 2000
            (Inception)
  6 Months Ended 6 Months Ended   to
  June, 2001   June, 2000 June 30, 2001
             
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss $ (29,357) $ (27,024) $ (78,650)
Adjustments to reconcile Net Loss            
to net cash used in operation:            
Stock Issued for Services   -   21,000   21,000
Contributed Services   15,000   -   35,000
Changes in assets and liabilities            
(Increase) decrease            
Accounts receivable   (258)   -   (258)
Other current assets   (166)       (210)
Increase (decrease)            
Accounts Payable/Accrued Expenses (235) (175) 683
             
Net cash used in operating activities (15,016) (4,642) (24,908)
             
CASH FLOWS FROM FINANCING ACTIVITIES          
             
Advances from Stockholder   1,022   1,557   2,495
Repayments to Stockholder   (2,473)   -   (2,473)
Common Stock 25,000 7,000 32,000
             
Net cash provided by financing activities 23,549 7,000   34,495
             
Net increase (decrease) for period   8,533   2,358   9,587
             
Cash at beginning of period 1,054 - -
             
Cash at end of period $ 9,587 $ 2,358 $ 9,587

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Quarterly Report

Expressions Graphics, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

NOTE 1 - DESCRIPTION OF COMPANY AND BASIS OF PRESENTATION:

Expressions Graphics, Inc., (the "Company"), was incorporated in Nevada on January 13, 2000. The Company is in the development stage in accordance with Statement of Financial Accounting Standards ("SFAS") No. 7 since its inception to June 30, 2001 and had accumulated a deficit while in the development stage of $78,650.

The Company intends to market, sell, and distribute an extensive array of graphic media suitable for customer usage in an extensive range of applications. Graphic media may include symbols, logos, pictures, expressions, signs, and business advertisements. Application may include affixing the graphic(s) to cups, drinking glasses, caps and hats, clothing, automobile bumpers, or as freestanding signs or business advertisements. A primary service to be made available to the customer will be developing the most appropriate and appealing graphic design from the user's specifications.

The unaudited Condensed Consolidated Financial Statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The results of the six months ended June 30, 2001 are not necessarily indicative of the results to be expected for the full year ending December 31, 2001.

NOTE 2 - EARNINGS PER SHARE

In 1997, the Financial Accounting Standard Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share." SFAS No. 128 replaced the previously reported primary and fully diluted earnings per share with basic and diluted earnings per share. Unlike primary earnings per share, basic earnings per share excludes any dilutive effects of options, warrants, and convertible securities. Diluted earnings per share is very similar to the previously reported fully diluted earnings per share. Basic earnings per share is computed using the weighted-average number of common shares outstanding during the period. Common equivalent shares are excluded from the computation if their effect is anti-dilutive.

NOTE 3 – COMMON STOCK

During the six month period ended June 30, 2001, the Company issued 810,000 shares of common stock at $0.05 for a total of $40,500 the value was determined using the subscription filing. Of the total proceeds $25,000 was received prior to June 30, 2001and $15,500 was received subsequent to June 30, 2001.

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Quarterly Report

Management's Discussion and Analysis of Financial Condition

This statement includes projections of future results and “forward looking statements” as that term is defined in Section 27A of the Securities Act of 1933 as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934 as amended (the “Exchange Act”). All statements that are included in this Quarterly Report, other than statements of historical fact, are forward looking statements. Although management believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct.

Financial Summary

Results of Operations for the Three-Months Ended June 30, 2001

The Majority of the net loss was due to payments for accounting and legal services. Basic operational expenses including rent, postage and bank fees were typical for this period.

Liquidity and Capital Resources for the Three-months ended June 30, 2001.

During the Three-month period June 30, 2001, the Company’s cash position increased by $9,495. The Company used a total of $14,505 in cash accounting fees, attorney fees and provide for its basic operations.

Management Plan of Operations

The Company is has experienced some success in selling its current offering of securities to expand operations. The Company has raised $40,500 during the three month period ended June 30, 2001 from the sale of its current offering of common stock. The company continues to rely on the officers’ contributions of time and money to develop the current business plan. Efforts continue to fully subscribe the offering.

The company has not devoted significant time towards locating a suitable sales person for its banner products, but continues to search for the right individual. Efforts will increase once the current offering is completed.

The company’s basic operational expenses are very low and are expected to increase only as a direct result from increased sales. The current focus is to complete the offering of common stock. Then revenue can be developed pursuant to the Company’s current business plan.

8


Quarterly Report

OTHER INFORMATION
 
Item 1. Legal Proceedings
None
 
Item 2. Changes in Securities and Use of Proceeds
None
 
Item 3. Defaults Upon Senior Securities
None
 
Item 4. Submission of Matters to a Vote of Security Holders
None
 
Item 5. Other Information
None
 
Item 6. Exhibits and Reports on Form 8-K
 
Reports on Form 8-K
 
On August 10, 2001, the Company filed a Form 8-K with the United States Securities and
Exchange Commission; re: Change in Registrant's Certifying Accountant.
 
Exhibits
 
Included by reference, exhibit 16, filed with Form 8-K on August 10, 2001.

9


Quarterly Report

SIGNATURES

     In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

________EXPRESSIONS GRAPHICS, INC.______
(Registrant)

Date ___August 12, 2001______

________/s/ Neil Brouilette ___________
(Neil Brouilette, President)

Date ___August 12, 2001______

________/s/ Frank Drechsler ___________
(Frank Drechsler, Vice President/Secretary)

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