1
United States
Securities and Exchange Commission
Washington, DC 20549
FORM 10Q SB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 2002
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE
EXCHANGE ACT
Commission file Number 333 - 32634
PARAGON POLARIS STRATEGIES INC.
Exact name of small business issuer as specified in its charter
Nevada 76-0609444
(State or other jurisdiction of I.R.S. Employer Identification No.
incorporation or organization)
3215 Mathers Avenue, West Vancouver, BC V7V 2K6 Canada
(Address of principal executive office)
(604) 913-8355
Issuer's telephone number
NA
(Former name, former address and former fiscal year, if changed
since last report)
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PAST 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 a court. Yes ____ No ____
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the Issuer's
common equity as of the last practicable date: 1,350,000 shares
Transitional Small Business Disclosure Format (check one) Yes ___No X
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
FINANCIAL STATEMENTS FOR THE THREE MONTH
AND NINE MONTH PERIODS
ENDING SEPTEMBER 30, 2002
(PREPARED BY MANAGEMENT)
PARAGON POLARIS STRATEGIES INC.
(A DEVELOPMENT STAGE ENTERPRISE)
BALANCE SHEET
AS AT SEPTEMBER 30, 2002
(PREPARED BY MANAGEMENT)
ASSETS
CURRENT ASSETS:
CASH $24,249
OTHER ASSETS
LICENSE RIGHTS 0
TOTAL ASSETS 24,249
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES: 0
STOCKHOLDERS' EQUITY:
COMMON STOCK, $0.001 PAR
VALUE; 100,000,000 SHARES
AUTHORIZED AND 2,850,000 SHARES
ISSUED AND OUTSTANDING 2,850
ADDITIONAL PAID-IN CAPITAL 61,805
DEEMED DIVIDEND RE:
LICENSE RIGHTS (2,000)
(DEFICIT) ACCUMULATED DURING
THE DEVELOPMENT STAGE (38,406)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 24,249
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 24,249
SEE ATTACHED NOTES
PARAGON POLARIS STRATEGIES INC.
(A DEVELOPMENT STAGE ENTERPRISE)
PARAGON POLARIS STRATEGIES.COM INC.
STATEMENT OF OPERATIONS
FOR THE THREE MONTH AND NINE MONTH
PERIODS ENDING SEPTEMBER 30, 2002 AND 2001
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2002 2001 2002 2001
REVENUES 0 0 0 0
OPERATING EXPENSES
OFFICE EXPENSES AND FILING FEES 30 1,200 90 1,200
LEGAL AND ACCOUNTING 0 6,300 18,161 6,300
TOTAL OPERATING EXPENSES 30 7,500 18,251 7,500
NET (LOSS) FOR THE PERIOD ( 30) (7,500) (18,251) (7,500)
NET (LOSS) PER SHARE ( 0.00) ( 0.00) (0.01) ( 0.00)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 2,850,000 2,600,000 2,850,000 2,600,000
SEE ATTACHED NOTES TO THESE STATEMENTS
PARAGON POLARIS STRATEGIES.COM INC.
STATEMENT OF CASH FLOWS
FOR THE SIX MONTH
PERIODS ENDING SEPTEMBER 30, 2002 AND 2001
NINE MONTHS ENDED
SEPTEMBER 30
2002 2001
CASH FLOWS FROM (TO)
OPERATING ACTIVITIES
NET INCOME (LOSS) $ (18,251) $ (7,500)
NET INCREASE (DECREASE)
IN ACCOUNTS PAYABLE ( 7,500) 7,500
TOTAL CASH FLOWS FROM (T0)
OPERATING ACTIVITIES ( 25,751) 0
CASH FLOWS FROM (TO)
INVESTING ACTIVITIES 0 0
CASH FLOWS FROM (TO)
FINANCING ACTIVITIES
ISSUANCE OF COMMON STOCK 50,000 0
NET INCREASE (DECREASE) IN CASH 24,249 0
CASH BEGINNING OF PERIOD 50,000 0
CASH END OF PERIOD $ 24,249 $ 0
SEE ATTACHED NOTES
NOTES TO FINANCIAL STATEMENTS
(PREPARED BY MANAGEMENT)
NOTE 1 - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance with
US Securities and Exchange Commission ("SEC") requirements for interim
financial statements. Therefore, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements. The financial statements should be read in
conjunction with the year ended December 31, 2001 financial statements of
Paragon Polaris Strategies Inc.
The results of operations for the interim period shown in this report are not
necessarily indicative of the results to be expected for the full year. In
the opinion of management, the information contained herein reflects all
adjustments necessary to make the results of operations for the interim
periods a fair statement of such operation. All such adjustments are of a
normal recurring nature.
NOTE 2 - RELATED PARTY TRANSACTIONS
The Company has entered into an agreement made effective July 1, 1999 with
David R. Mortenson & Associates (Grantor) to receive the rights to
distribute the water treatment products developed by NW Technologies, Inc.
for the States of Arizona and Nevada. Minimum purchase requirements were
$125,000 the first year and $175,000 the second year.
On July 6, 1999 the Company filed a Form D pursuant to Section 3(b) of the
Securities Act and Rule 504 promulgated thereunder, with the Securities and
Exchange Commission registering the issuance of 200,000 shares of common
stock to each of the ten general partners of David R. Mortenson and
Associates, a Texas general Partnership. The shares were issued at a price
of $0.001 per share being the par value per share for a total of $2,000 in
exchange for the water remediation license. The water remediation license is
recorded a cost of $NIL, being the original cost of the license to David R.
Mortenson and Associates. The difference between the issue price of the
shares and the cost of the license is recorded as a deemed dividend.
The agreement with David R. Mortenson & Associates was entered into by
previous management.
In December, 1999 N.W. Technologies, Inc. unilaterally cancelled its contract
with David Mortenson & Associates. Early in the year 2000 David Mortenson &
Associates laid suit against N.W. Technologies, Inc. in Harris County Court,
Texas.
In the opinion of management, the Company has no direct or indirect interest
in the Texas lawsuit
In a letter dated January 5, 2000 David Mortenson & Associates suspended all
present and future payments under the License Agreement until their dispute
with N.W. Technologies is resolved.
Due to the dispute regarding the water remediation license, David R.
Mortenson and Associates gave and additional license to the Company on
January 20, 2000. The license is to distribute vitamins, minerals, herbs and
other health products and supplements via the Internet. The license calls
for a 10% add-on for all products purchased and an annual $500 website
maintenance fee. The effective date of the License Agreement was January 3,
2000. The license is for an initial three years from the effective date and
is automatically renewable unless either party to the license agreement gives
ninety days written notice of non-renewal prior to expiration date. No
amounts have been recorded in these financial statements regarding the
granting of the license.
Dorothy Mortenson is the wife of David R. Mortenson. She is an original
incorporator of the Company and served as Corporate Secretary until January
17, 2000 when her shares were purchased by present management. David R.
Mortenson is a principal in both David Mortenson & Associates and
Vitamineralherb.com. Neither Mr. nor Mrs. Mortenson own or have owned any of
the Company's securities since November 24, 1999. Outside of his association
with Vitamineralherb.com, Mr. Mortenson has no connection with Paragon
Polaris. As a result, management considers that he is at arms length with
the Company.
Item 2. Management's Discussion and Analysis or Plan of Operation.
Paragon Polaris Strategies Inc. has a three-year license to market and sell
vitamins, minerals, nutritional supplements, and other health and fitness
products to medical professionals, alternative health professionals, martial
arts studios and instructors, sports and fitness trainers, other health and
fitness professionals, school and other fund raising programs and other
similar types of customers. All of these individuals and organizations will
order their products via the Internet for sale to their clients. The license
will be automatically renewed unless the Company or VitaMineralHerb.com gives
the other notice of its intent not to renew.
As a licensee of VitaMineralHerb.com, Paragon Polaris Strategies Inc.
eliminates the need to develop products, store inventory, build and maintain
a website, establish banking liaisons, and develop a fulfillment system,
thereby enabling us to focus strictly on marketing and sales. The Company
plans to target health and fitness professionals in the Province of Alberta,
Canada who wish to offer health and fitness products to their customers.
Paragon Polaris (and its customers) will have access to all products offered
on the VitaMineralHerb.com website, as well as the ability to order custom-
formulated and custom-labeled products. VitaMineralHerb.com sets the price
for products based on the manufacturer's price, plus a markup that provides a
10% commission to VitaMineralHerb.com and a profit for Paragon Polaris
Strategies Inc.
(b) Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Liquidity and Capital Resources
Paragon Polaris Strategies Inc. remains in the development stage and, since
inception, has experienced some small expenses for the preparation of
financial statements and periodic reports as required by the Securities
Exchange Act of 1934.
In January 2002 the registrant issued 250,000 shares of common stock as part
of self-underwritten financing contained in its effective SB2 filing.
Shortly thereafter sale of stock was terminated. Consequently, our balance
sheet for the period ending June 30, 2002 reflects current assets of $24,339
in the form of cash, and total assets of $ 24,339.
During the three month period ending June 30, 2002, management reimbursed
$7,500 to a related party, paid $6,840 in legal expenses $7,321 in accounting
charges and a further $4,000 in electronic filing fees. The balance of
$24,339 is being retained as working capital pending scaling-down of our
business plan and management's attempts to raise further capital.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Securities Holders
None
Item 6. Exhibits and Reports on Form 8K
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned,
hereunto duly authorized.
PARAGON POLARIS STRATEGIES INC.
Dated November 13, 2002 /S/ Robert Foo
Robert Foo, President and Director
/S/ Samuel Lau
Samuel Lau, Secretary Treasurer