U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: March 31, 2007
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 333-4066
KAYENTA KREATIONS, INC.
(Exact name of registrant as specified in its charter)
NEVADA 87-0554463
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
311 South State Street, Suite 460, Salt Lake City, Utah 84111
(Address of principal executive offices)
(801) 364-9262
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since
last report)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such report(s), and (2) has been subject to such filing
requirements for the past 90 days. YES [X] NO [ ]
Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).. YES [X] NO [ ]
The number of $.001 par value common shares outstanding at March 31, 2007:
1,316,292
FORWARD-LOOKING STATEMENT NOTICE
When used in this report, the words "may," "will," "expect,"
"anticipate,""continue," "estimate," "project," "intend," and similar
expressions are intended to identify forward-looking statements regarding
events, conditions, and financial trends that may affect the Company's future
plans of operations, business strategy, operating results, and financial
position. Persons reviewing this report are cautioned that any forward-looking
statements are not guarantees of future performance and are subject to risks
and uncertainties and that actual results may differ materially from those
included within the forward-looking statements as a result of various factors.
Such factors include general economic factors and conditions that may directly
or indirectly impact the Company's financial condition or results of
operations. Readers are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date the statement was
made.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
See attached.
KAYENTA KREATIONS, INC.
[A Development Stage Company]
UNAUDITED CONDENSED FINANCIAL STATEMENTS
MARCH 31, 2007
KAYENTA KREATIONS, INC.
[A Development Stage Company]
CONTENTS
PAGE
- Unaudited Condensed Balance Sheet,
March 31, 2007 1
- Unaudited Condensed Statements of Operations,
for the three months ended March 31, 2007
and 2006 and from inception on December 26,
1995 through March 31, 2007 2
- Unaudited Condensed Statements of Cash Flows,
for the three months ended March 31, 2007
and 2006 and from inception on December 26,
1995 through March 31, 2007 3
- Notes to Unaudited Financial Statements 4 - 5
KAYENTA KREATIONS, INC.
[A Development Stage Company]
UNAUDITED CONDENSED BALANCE SHEET
ASSETS
March 31
2007
___________
CURRENT ASSETS:
Cash $ -
___________
Total Current Assets -
___________
$ -
___________
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 3,775
Advances from related party 1,391
Accrued interest - related party 29
___________
Total Current Liabilities 5,195
___________
STOCKHOLDERS' EQUITY (DEFICIT):
Preferred stock, $.001 par value,
5,000,000 shares authorized,
no shares issued and outstanding -
Common stock, $.001 par value,
50,000,000 shares authorized,
1,316,292 shares issued and
outstanding 1,316
Capital in excess of par value 104,647
Deficit accumulated during the
development stage (111,158)
___________
Total Stockholders' Equity (Deficit) (5,195)
___________
$ -
___________
The accompanying notes are an integral part of these financial statements.
-1-
KAYENTA KREATIONS, INC.
[A Development Stage Company]
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
For the From Inception
Three Months Ended on December 26,
March 31, 1995 Through
______________________ March 31,
2007 2006 2007
__________ __________ ______________
REVENUE $ - $ - $ -
EXPENSES:
General and administrative 3,775 3,085 41,365
__________ __________ ______________
LOSS BEFORE OTHER INCOME (EXPENSE) (3,775) (3,085) (41,365)
OTHER INCOME (EXPENSE)
Interest expense (29) (24) (4,471)
__________ __________ ______________
LOSS BEFORE INCOME TAXES (3,804) (3,109) (45,836)
CURRENT TAX EXPENSE - - -
DEFERRED TAX EXPENSE - - -
__________ __________ ______________
LOSS FROM CONTINUING OPERATIONS (3,804) (3,109) (45,836)
__________ __________ ______________
DISCONTINUED OPERATIONS:
Loss from operations of
discontinued coloring art
book business (including gain
on disposal of $0, $0, and $0
respectively) - - (64,924)
Income tax benefit - - -
__________ __________ ______________
LOSS FROM DISCONTINUED OPERATIONS - - (64,924)
__________ __________ ______________
CUMULATIVE EFFECT OF CHANGE
IN ACCOUNTING PRINCIPLE - - (398)
__________ __________ ______________
NET LOSS $ (3,804) $ (3,109) $ (111,158)
__________ __________ ______________
LOSS PER COMMON SHARE:
Continuing operations $ - $ -
Discontinued operations - -
Cumulative effect of change in
accounting principle - -
__________ __________
Net Loss Per Common Share $ - $ -
__________ __________
.
The accompanying notes are an integral part of these financial statements.
- 2 -
KAYENTA KREATIONS, INC.
[A Development Stage Company]
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
For the From Inception
Three Months Ended on December 26,
March 31, 1995 Through
______________________ March 31,
2007 2006 2007
__________ __________ ______________
Cash Flows from Operating Activities:
Net loss $ (3,804) $ (3,109) $ (111,158)
Adjustments to reconcile net loss
to net cash used by operating
activities:
Amortization expense - - 602
Depreciation - - 9,610
Non-cash interest expense -
related party 29 24 2,118
Effect of change in accounting
principle - - 398
Loss on disposal of assets - - 4,485
Changes in assets and liabilities:
Increase (decrease) in accounts
payable 2,384 1,892 3,775
__________ __________ ______________
Net Cash (Used) by
Operating Activities (1,391) (1,193) (90,170)
__________ __________ ______________
Cash Flows from Investing Activities:
Payment of organization costs - - (1,000)
Purchase of equipment - - (13,323)
__________ __________ ______________
Net Cash (Used) by
Investing Activities - - (14,323)
__________ __________ ______________
Cash Flows from Financing Activities:
Proceeds from shareholder loans 1,391 1,193 46,281
Proceeds from common stock issuance - - 72,725
Stock offering costs - - (14,533)
Capital contributions - - 20
__________ __________ ______________
Net Cash Provided by
Financing Activities 1,391 1,193 104,493
__________ __________ ______________
Net Increase (Decrease) in Cash - - -
Cash at Beginning of Period - - -
__________ __________ ______________
Cash at End of Period $ - $ - $ -
__________ __________ ______________
Supplemental Disclosures of Cash Flow Information:
Cash paid during the periods for:
Interest $ - $ - $ 80
Income taxes $ - $ - $ -
Supplemental Schedule of Non-cash Investing and Financing Activities:
For the three months ended March 31, 2007:
None
For the three months ended March 31, 2006:
None
The accompanying notes are an integral part of these financial statements.
- 3 -
KAYENTA KREATIONS, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization - Kayenta Kreations, Inc. ("the Company") was organized under
the laws of the State of Nevada on December 26, 1995. The Company
previously produced and marketed a children's coloring art book depicting
various aspects of life in the Southwestern and Western United States.
The Company discontinued its coloring art book business effective December
30, 2001. The Company is currently seeking other business opportunities.
The Company has not generated significant revenues and is considered a
development stage company as defined in Statement of Financial Accounting
Standards No. 7. The Company has, at the present time, not paid any
dividends and any dividends that may be paid in the future will depend
upon the financial requirements of the Company and other relevant factors.
Condensed Financial Statements - The accompanying financial statements
have been prepared by the Company without audit. In the opinion of
management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results
of operations and cash flows at March 31, 2007 and 2006 and for the three
month periods then ended have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with accounting principles
generally accepted in the United States of America 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 December 31, 2006 audited financial statements.
The results of operations for the periods ended March 31, 2007 and 2006
are not necessarily indicative of the operating results for the full year.
NOTE 2 - GOING CONCERN
The accompanying financial statements have been prepared in conformity
with accounting principles generally accepted in the United States of
America, which contemplate continuation of the Company as a going concern.
However, the Company has incurred losses since its inception and has no on-
going operations. Further, the Company has current liabilities in excess
of current assets. These factors raise substantial doubt about the
ability of the Company to continue as a going concern. In this regard,
management is proposing to raise any necessary additional funds not
provided by operations through loans or through additional sales of its
common stock. There is no assurance that the Company will be successful
in raising this additional capital or in achieving profitable operations.
The financial statements do not include any adjustments that might result
from the outcome of these uncertainties.
NOTE 3 - RELATED PARTY TRANSACTIONS
Advance from Shareholder - As of March 31, 2007, a shareholder of the
Company has made advances totaling $1,391 to the Company. The advances
bear interest at 10% per annum and are due on demand. Accrued interest
expense at March 31, 2007 amounted to $29.
Legal Services - An entity owned by a shareholder of the Company provided
legal services for the Company. Legal fees to the entity for the three
months ended March 31, 2007 amounted to $1,075. At March 31, 2007 the
Company owed a total of $1,075 to the shareholder.
- 4 -
KAYENTA KREATIONS, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 4 - LOSS PER SHARE
The following data show the amounts used in computing loss per share for
the periods presented:
For the
Three Months Ended
March 31,
______________________
2007 2006
__________ __________
Loss from continuing operations (numerator) $ (3,804) $ (3,109)
Loss from discontinued operations (numerator) - -
Cumulative effect of change in accounting
principle (numerator) - -
__________ __________
Loss available to common shareholders
(numerator) $ (3,804) $ (3,109)
__________ __________
Weighted average number of common
shares outstanding during the period
used in loss per share (denominator) 1,316,292 1,316,292
__________ __________
Dilutive loss per share was not presented, as the Company had no common
equivalent shares for all periods presented that would affect the
computation of diluted loss per share.
NOTE 5 - SUBSEQUENT EVENTS
The Company has entered into a non-binding letter of intent to acquire a
private company. The letter expired on July 31, 2006 but has been
verbally extended to June 30, 2007. The potential acquisition is subject
to certain conditions precedent and no assurance can be given that the
acquisition will be completed. If completed, it will involve a change of
management and shareholder control along with other matters.
- 5 -
ITEM 2: MANAGEMENT'S DISCUSSION & ANALYSIS OR PLAN OF OPERATIONS
The Company was incorporated on December 26, 1995. The Company has not
yet generated any significant revenues from operations and is considered a
development stage company. Management's plan of operation for the next twelve
months is to continue to receive shareholder advances to provide general
working capital. The Company's current operating plan is to (i) handle the
administrative and reporting requirements of a public company, and (ii) search
for potential businesses, products, technologies and companies for
acquisition. The Company has experienced losses from its inception. The
Company was engaged in the business of producing and marketing specialty
children's coloring art books and art coloring pencils. This business was not
successful and operations were eventually discontinued. The Company is not
presently engaged in any significant business activities and has no
operations. Presently the Company's principal activity has been to investigate
potential acquisitions.
On June 13, 2006, the Company issued a press release announcing it has
entered into a non-binding letter of intent to acquire a private company. The
potential acquisition is subject to certain conditions precedent and no
assurance can be given that the acquisition will be completed. If completed,
it will involve a change of management and shareholder control along with
other matters. The letter expired on July 31, 2006 but has been verbally
extended to June 30, 2007.
The Company has no operating capital or income producing assets. In
light of these circumstances, the ability of the Company to continue as a
going concern is substantially in doubt. The financial statements do not
include any adjustments that might result from the outcome of this
uncertainty. Management believes their plans will provide the corporation with
the ability to continue in existence. Management plans to maintain its
filings and curtail operations and activities to keep it in existence. This
may require additional advances from stockholders to pay accounting and legal
fees associated with its filings.
ITEM 3. CONTROLS AND PROCEDURES.
The issuer's principal executive officer or officers and principal
financial officer or officers, or persons performing similar functions, are
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the issuer and have:
designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under their supervision, to
ensure that material information relating to the issuer, including its
consolidated subsidiaries, is made known to them by others within those
entities, particularly during the period in which the periodic reports are
being prepared;
designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under their
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
evaluated the effectiveness of the issuer's disclosure controls and
procedures as of the end of the fiscal quarter (the "Evaluation Date").
Based on their evaluation as of the Evaluation Date, their conclusions
about the effectiveness of the disclosure controls and procedures were that
nothing indicated:
any 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;
any fraud, whether or not material, that involves management or other
employees who have a significant role in the issuer's internal controls; or
any material weaknesses in internal controls that have been or should be
identified for the issuer's auditors and disclosed to the issuer's auditors
and the audit committee of the board of directors (or persons fulfilling the
equivalent function).
Changes in internal control over financial reporting. There was no
significant change in the issuer's internal control over financial reporting
that occurred during the most recent fiscal quarter that has materially
affected, or is reasonably likely to materially affect, the issuer's internal
control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any material pending legal proceedings. No
such action is contemplated by the Company nor, to the best of its knowledge,
has any action been threatened against the Company.
ITEM 2. SALES OF UNREGISTERED EQUITY SECURITIES AND USE OF PROCEEDS
(a) During the period covered by this report, there were no equity
securities of the issuer, sold by the issuer, that were not
registered under the Securities Act.
(b) During the period covered by this report, there were no securities
that the issuer sold by registering the securities under the
Securities Act.
(c) During the period covered by this report, there was no repurchase
made of equity securities registered pursuant to section 12 of the
Exchange Act. None of the issuer's securities is registered
pursuant to section 12 of the Exchange Act.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
There has not been any material default in the payment of principal,
interest, a sinking or purchase fund installment, or any other material
default not cured within 30 days, with respect to any indebtedness of the
issuer exceeding 5 percent of the total assets of the issuer.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter has been submitted to a vote of security holders during the
period covered by this report, through the solicitation of proxies or
otherwise.
ITEM 5. OTHER INFORMATION
On June 13, 2006, the Company issued a press release announcing it has
entered into a non-binding letter of intent to acquire a private company. The
potential acquisition is subject to certain conditions precedent and no
assurance can be given that the acquisition will be completed. If completed,
it will involve a change of management and shareholder control along with
other matters.
ITEM 6. EXHIBITS.
Exhibit Index - Exhibits required by Item 601 of Regulation S-B.
(31) Certifications required by Rules 13a-14(a) or 15d-14(a).
(32) Section 1350 Certifications
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.
Kayenta Kreations, Inc.
Date: May 10, 2007 by: /s/ Brenda White
Brenda White, Chairman