10QSB/A 1 sms.htm Untitled Document


                    U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                   FORM 10-QSB/A 

(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended: March 31, 2003

                                       OR

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

                       For the transition period from to

                        Commission file number 000-49743


                          Stock Market Solutions, Inc.
 ------------------------------------------------------------------------------

        (Exact Name of Small Business Issuer as Specified in Its Charter)
 ------------------------------------------------------------------------------
           Nevada                                       88-0443110
(State or other jurisdiction                (IRS Employer Identification Number)
of incorporation or organization)

1752 N.W. Third Terrace
Suite 118-c Fort Lauderdale, FL  33311
(Address of Principal Executive Offices)
954-524-1452
                (Issuer's Telephone Number, Including Area Code)

Not Applicable
(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 registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No []

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 18,300,000 as of May 20, 2003.

     Transitional Small Business Disclosure Format (check one):  Yes [] No [X]

PART I - Financial Information.................................................4
   Item 1.     Financial Statements............................................4
   Item 2.     Management's Discussion and Analysis of Financial
               Condition and Results of Operations.............................5
   Item 3.     Controls and Procedures.........................................8
PART II - OTHER INFORMATION....................................................9
   Item 1.  Legal Proceedings..................................................9
   Item 2. Changes in Securities...............................................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............................................................9




PART I - Financial Information

Item 1. Financial Statements

The accompanying unaudited financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial reporting and pursuant to the rules and regulations of the Securities
and Exchange Commission ("Commission"). While these statements reflect all
normal recurring adjustments which are, in the opinion of management, necessary
for fair presentation of the results of the interim period, they do not include
all of the information and footnotes required by generally accepted accounting
principles for complete financial statements. For further information, refer to
the financial statements and footnotes thereto, which are included in the
Company's Annual Report on Form 10-KSB, as amended, for the fiscal year ended
December 31, 2002, previously filed with the Commission.

The accompanying notes are an integral part of these consolidated financial
statements.




                          Stock Market Solutions, Inc.
                          (A Development Stage Company)

                                    Contents


                                                                         Page
                                                                     -----------
Balance Sheet                                                             1

Statements of Operations                                                  2

Statements of Cash Flows                                                  3

Notes to Financial Statements                                           4 - 5





                          Stock Market Solutions, Inc.
                          (A Development Stage Company)
                                 Balance Sheet



                                          Assets

                                                                  March 31, 2003
                                                                    (Unaudited)
                                                                  --------------

Current Assets
Cash                                                              $           18
                                                                  --------------

Total Current Assets                                              $           18
                                                                  --------------


                    Liabilities and Stockholder's Deficiency

Current Liabilities
Accounts payable                                                  $       14,815
Notes payable - stockholder                                               27,300
                                                                  --------------

Total Current Liabilities                                                 42,115
                                                                  --------------

Stockholder's Deficiency
Common stock, par value $0.001, 50,000,000 shares authorized,
   18,300,000 shares issued and outstanding                               18,300
Deficit accumulated during development stage                            (60,437)
                                                                  --------------                                                                        -------------------
Total Stockholders' Deficiency                                          (42,137)
                                                                  --------------

Total Liabilities and Stockholder's Deficiency                    $           18
                                                                  --------------



                          Stock Market Solutions, Inc.
                          (A Development Stage Company)
                            Statements of Operations
                                   (Unaudited)


                                                                     From
                                                                January 22, 1999
                                            Three Months Ended   (Inception) to
                                                March 31,        March 31, 2003
                                           2003        2002
                                         ---------- ----------- ----------------

       Operating Expenses
       Legal                             $      330 $         - $         26,603
       Software impairment loss                   -           -            6,000
       Website impairment loss                    -                          850
       Amortization                               -                          350
       Accounting                             1,600       3,000            9,759
       General and administrative                 -         227           10,875
                                         ---------- ----------- ----------------
       Total Operating Expenses               1,930       3,227           54,437
                                         ---------- ----------- ----------------

       Net Loss                          $  (1,930) $   (3,227) $       (54,437)
                                         ---------- ----------- ----------------

       Net loss per share
        - basic and diluted              $        - $         - $              -
                                         ---------- ----------- ----------------

       Weighted average number
        of shares outstanding
         during the period
         - basic and diluted             18,113,333  18,000,000       16,313,328
                                         ---------- ----------- ----------------


                          Stock Market Solutions, Inc.
                          (A Development Stage Company)
                            Statements of Cash Flows
                                   (Unaudited)



                                                                     From
                                                                January 22, 1999
                                            Three Months Ended   (Inception) to
                                                March 31,        March 31, 2003
                                           2003        2002
                                         ---------- ----------- ----------------
Cash Flows from Operating Activities
Net loss                                 $  (1,930) $   (3,227) $       (54,437)
Adjustments to reconcile
  net loss to net cash used in
  operating activities:
Amortization                                      -          50              350
Stock issued for services                       300           -              300
Software impairment loss                          -           -            6,000
Website impairment loss                           -           -              850
Changes in operating assets and liabilities:
Increase (decrease) in:
Accounts payable                              1,600       3,000           14,815
                                         ---------- ----------- ----------------

Net Cash Used in Operating Activities          (30)       (177)         (32,122)
                                         ---------- ----------- ----------------

Cash Flows from Investing Activities
Loan disbursements to officer                     -           -         (10,800)
Payment for software development                  -           -          (6,000)
                                         ---------- ----------- ----------------
Net Cash Used in Investing Activities             -           -         (16,800)
                                         ---------- ----------- ----------------

Cash Flows from Financing Activities
Proceeds from common stock issuance               -           -           10,800
Proceeds from notes payable, related party       40           -           38,140
                                         ---------- ----------- ----------------
Net Cash Provided by Financing Activities        40           -           48,940
                                         ---------- ----------- ----------------

Net Increase (Decrease)in Cash                   10       (177)               18
                                         ---------- ----------- ----------------

Cash and Cash Equivalents
  at Beginning of Period                          8         378                -

Cash and Cash Equivalents
  at End of Period                       $       18 $       201 $             18
                                         ---------- ----------- ----------------

                          Stock Market Solutions, Inc.
                          (A Development Stage Company)
                            Statements of Cash Flows
                                   (Unaudited)



Note 1   Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
and the rules and regulations of the Securities and Exchange Commission for
interim financial information. Accordingly, they do not include all the
information and footnotes necessary for a comprehensive presentation of
financial position and results of operations.


It is management's opinion, however, that all material adjustments (consisting
of normal recurring adjustments) have been made which are necessary for a fair
financial statements presentation. The results for the interim period are not
necessarily indicative of the results to be expected for the year.

For further information, refer to the audited financial statements and footnotes
for the year ending December 31, 2002 included in the Company's Form 10-SB.

Activities during the development stage include development and implementation
of the business plan, development of computer software programs and intellectual
property, establishment of a website, determining the market, and raising
capital.

Note 2   Due to Officer

On February 21, 2003, the Company received a loan of $40 from an officer.

Note 3   Stockholders' Deficiency

The 2003 Stock Award Plan (the "Plan") of the Company is for selected employees,
officers, directors, and key consultants and advisors to the Company. The Plan
shall become effective as of February 25, 2003 (the "Effective Date") and shall
terminate on December 31, 2003. The total number of shares of common stock
available under the Plan shall not exceed in the aggregate 1,000,000. Such
shares may be treasury shares or authorized but unissued shares. The Board may
award and issue shares of common stock under the Plan to an eligible individual
("Stock Award"). The Board in its discretion and subject to the provisions of
the Plan may from time to time, grant to eligible individuals of the Company
Stock Awards. Stock Awards may be made in lieu of cash compensation or as
additional compensation. Stock Awards may also be made pursuant to
performance-based goals established by the Board. The Company may, but shall not
be obligated to, register any securities covered by a Stock Award pursuant to
the 1933 Act. The Board may at any time alter, suspend or terminate the Plan.
The Company may for cause; cancel and the employee shall forfeit all outstanding
Stock Awards, which are not fully vested. On February 25, 2003, the Company
issued 300,000 shares of its common stock for legal services which are
considered fully vested and have an estimated fair value of $300 which was
recognized as legal expenses immediately since the service period is undefined.

Note 4   Going Concern

As reflected in the accompanying unaudited financial statements, the Company is
inactive, has no revenues, has a working capital deficiency of $42,137, a
deficit accumulated during the development stage of $60,437, net loss during the
three months ended March 31, 2003 of $1,930, and net cash used in operations of
$30 at March 31, 2003. The ability of the Company to continue as a going concern
is dependent on the Company's ability to identify an acquisition or merger
candidate or develop a business plan. The financial statements do not include
any adjustments that might be necessary if the Company is unable to continue as
a going concern.

Management intends to seek funding after the Company's securities become
qualified for quotation on the over the counter bulletin board. Management
believes that the actions presently being taken provide the opportunity for the
Company to continue as a going concern.


Item 2.  Plan of Operations

Forward-Looking Statements


The following discussion and analysis is provided to increase the understanding
of, and should be read in conjunction with, the Consolidated Financial
Statements of the Company and Notes thereto included elsewhere in this Report.
Historical results and percentage relationships among any amounts in these
financial statements are not necessarily indicative of trends in operating
results for any future period. The statements, which are not historical facts
contained in this Report, including this Management's Discussion and Analysis of
Financial Condition and Results of Operations, and Notes to the Consolidated
Financial Statements, constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Such statements are
based on currently available operating, financial and competitive information,
and are subject to various risks and uncertainties. Future events and the
Company's actual results may differ materially from the results reflected in
these forward-looking statements. Factors that might cause such a difference
include, but are not limited to, dependence on existing and future key strategic
and strategic end-user customers, limited ability to establish new strategic
relationships, ability to sustain and manage growth, variability of operating
results, the Company's expansion and development of new service lines, marketing
and other business development initiatives, the commencement of new engagements,
competition in the industry, general economic conditions, dependence on key
personnel, the ability to attract, hire and retain personnel who possess the
technical skills and experience necessary to meet the service requirements of
its clients, the potential liability with respect to actions taken by its
existing and past employees, risks associated with international sales, and
other risks described herein and in the Company's other SEC filings.

The safe harbors of forward-looking statements provided by Section 21E of the
Exchange Act are unavailable to issuers of penny stock. As we issued securities
at a price below $5.00 per share, our shares are considered penny stock and such
safe harbors set forth under the Reform Act are unavailable to us.


Overview

Stock market traders can trade the stock market using our proprietary software
system, supplied on the Internet. The Livermore trading system is designed to
help stock market traders utilize a computer based trading program using the
principals of the Jessie Livermore trading system. Our only future source of
revenue is through subscriptions to our software products.

The primary methodology of the trading system is based on stock trader Jesse
Livermore's methods and techniques that he developed in over forty-five years of
trading the market as outlined in two books:

o "How To Trade In Stocks" written by Jesse Livermore with additional material
by Richard Smitten

o "Jesse Livermore: World's Greatest Stock Market Trader" written by Richard
Smitten.

Since our inception we have devoted our activities to the following:

o        Developing our business plan
o        Obtaining and developing necessary intellectual property
o        Raising capital
o        Establishing our website
o        Developing markets for the services we offer on our website


Three months ended March 31, 2003 vs. March 31, 2002

                                              Three Months Ended March 31,
                                                 2003                  2002
                                         -----------------      ----------------
Operating Expenses
Legal                                    $             330      $              -
Software impairment loss                                 -                     -
Website impairment loss                                  -
Amortization                                             -
                                         -----------------      ----------------
Accounting                                           1,600                 3,000
                                         -----------------      ----------------
General and administrative                               -                   227
                                         -----------------      ----------------
Total Operating Expenses                             1,930                 3,227
                                         -----------------      ----------------

Net Loss                                 $         (1,930)      $        (3,227)



Our net loss decreased due to reduced accounting expenses, due to the fact that
we were not in the process of filing a registration statement on Form 10-SB in
2003, and no operating expenses paid during the three months ended March 31,
2003 compared to the same period for 2002 due to our inactive status. Increased
legal expense is due to issuance of stock under our 2003 Stock Award Plan.

Liquidity and capital resources

We are inactive, have no revenues, have a working capital deficiency of $42,137,
a deficit accumulated during the development stage of $60,437, net loss during
the three months ended March 31, 2003 of $1,930, and net cash used in operations
of $30 at March 31, 2003. In addition, as of March 31, 2003, we had only $18 of
current cash available. Our current cash resources of $18 are insufficient to
satisfy our cash requirements over the next 12 months, assuming we take no steps
to develop our business plan. We feel we need a minimum $335,000 in additional
funds to finance the minimum steps we would like to take to implement our
business plan in the next 12 months, which funds will be used for product
development, sales and marketing and customer service. Further in order to
become profitable we may still need to secure additional debt or equity funding.
We hope to be able to raise additional funds from an offering of our stock in
the future. However, this offering may not occur, or if it occurs, may not raise
the required funding. We have not made any contacts with potential investors or
traditional lending sources, such as banks, to secure this financing; however,
we plan to do so if and after we secure qualification for quotation of our
securities on the over the counter bulletin board.

Until financing has been received, all our costs, including bank service fees
and those costs associated with on-going SEC reporting requirements, will be
funded by management, to the extent that funds are available to do so.

Item 3. Controls and Procedures

Within 90 days prior to the date of filing of this report, we carried out an
evaluation, under the supervision and with the participation of our management,
including the Chief Executive Officer (who also effectively serves as the Chief
Financial Officer), of the design and operation of our disclosure controls and
procedures. Based on this evaluation, our Chief Executive Officer concluded that
our disclosure controls and procedures are effective for gathering, analyzing
and disclosing the information we are required to disclose in the reports we
file under the Securities Exchange Act of 1934, within the time periods
specified in the SEC's rules and forms. There have been no significant changes
in our internal controls or in other factors that could significantly affect
internal controls subsequent to the date of this evaluation.



PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         None

Item 2. Changes in Securities

The 2003 Stock Award Plan (the "Plan") of the Company is for selected employees,
officers, directors, and key consultants and advisors to the Company. The Plan
shall become effective as of February 25, 2003 (the "Effective Date") and shall
terminate on December 31, 2003. The total number of shares of common stock
available under the Plan shall not exceed in the aggregate 1,000,000. Such
shares may be treasury shares or authorized but unissued shares. The Board may
award and issue shares of common stock under the Plan to an eligible individual
("Stock Award"). The Board in its discretion and subject to the provisions of
the Plan may from time to time, grant to eligible individuals of the Company
Stock Awards. Stock Awards may be made in lieu of cash compensation or as
additional compensation. Stock Awards may also be made pursuant to
performance-based goals established by the Board. The Company may, but shall not
be obligated to, register any securities covered by a Stock Award pursuant to
the 1933 Act. The Board may at any time alter, suspend or terminate the Plan.
The Company may for cause; cancel and the employee shall forfeit all outstanding
Stock Awards, which are not fully vested. On February 25, 2003, the Company
issued 300,000 shares of its common stock for legal services which are
considered fully vested and have an estimated fair value of $300 which was
recognized as legal expenses immediately since the service period is undefined.

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

Exhibit Number  Name and/or Identification of Exhibit


        3          Articles of Incorporation & By-Laws
                     (a) Articles of Incorporation of the Company.*
                     (b) By-Laws of the Company.*

        99         Certification Pursuant to Section 906 of the Sarbanes-Oxley
                   Act pf 2002

* Incorporated by reference to the exhibits to the Compan's General Form for
Registration of Securities of Small Business Issuers on Form 10-SB, and
amendments thereto, previously filed with the Commission.



signature

        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.







                                                    Stock Market Solutions, Inc.


DATE:  May 20, 2003                                 By:      /s/ Richard Smitten
                                                                 Richard smitten
                                                         Chief Executive Officer
                                                   (Principal Financial Officer)








CERTIFICATIONS

I, Richard smitten, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Stock Market
   Solutions, Inc.;

2. Based on my knowledge, this 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; and

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 position, results of operations, and cash
   flows of the issuer as of, and for, the periods presented in this quarterly
   report.

4. I am responsible for establishing and maintaining disclosure controls and
   procedures for the issuer and have:


 (i) Designed such  disclosure  controls and  procedures to ensure that material
     information relating to the issuer is made known to me, particularly during
     the period in which the periodic reports are being prepared;

(ii) Evaluated the effectiveness of the issuer's disclosure controls and
     procedures as of March 31, 2003 ["Evaluation Date"]; and

(iii)Presented in the report our conclusions about the effectiveness of the
     disclosure controls and procedures based on my evaluation as of the
     Evaluation Date;

5. I have disclosed, based on my most recent evaluation, to the issuer's
   auditors and the audit committee of the board of directors (or persons
   fulfilling the equivalent function):

(i) All significant deficiencies in the design or operation of internal
    controls which could adversely affect the issuer's ability to record,
    process, summarize and report financial data and have identified for the
    issuer's auditors any material weaknesses in internal controls (none were
    so noted); and (ii) Any fraud, whether or not material, that involves
    management or other employees who have a significant role in the issuer's
    internal controls (none were so noted); and

6. I have indicated in the 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:  May 20, 2003

/s/ Richard Smitten
President and Principal Financial Officer