Item 1. Financial Statements.
BIOETHICS, LTD.
[A Development Stage Company]
CONTENTS
PAGE
- Unaudited Condensed Balance Sheets,
September 30, 2007 and December 31, 2006 3
- Unaudited Condensed Statements of Operations,
for the three and nine months ended September 30,
2007 and 2006 and from inception on July 26, 1990
through September 30, 2007 4
- Unaudited Condensed Statements of Cash Flows,
for the nine months ended September 30, 2007 and
2006 and from inception on July 26, 1990
through September 30, 2007 5
- Notes to Unaudited Condensed Financial Statements 6 - 7
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BIOETHICS, LTD.
[A Development Stage Company]
UNAUDITED CONDENSED BALANCE SHEETS
ASSETS
September 30, December 31,
2007 2006
___________ ___________
CURRENT ASSETS:
Cash $ 13,382 $ 6,842
___________ ___________
Total Current Assets 13,382 6,842
___________ ___________
$ 13,382 $ 6,842
___________ ___________
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 0 $ 0
___________ ___________
Total Current Liabilities 0 0
___________ ___________
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value,
25,000,000 shares authorized,
11,000,000 shares issued and
outstanding 11,000 11,000
Capital in excess of par value 75,000 60,000
Deficit accumulated during the
development stage (72,618) (64,158)
___________ ___________
Total Stockholders' Equity 13,382 6,842
___________ ___________
$ 13,382 $ 6,842
___________ ___________
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Note: The balance sheet at December 31, 2006 was taken from the audited
financial statements at that date and condensed.
The accompanying notes are an integral part of these unaudited condensed
financial statements.
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BIOETHICS, LTD.
[A Development Stage Company]
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
For the Three For the Nine
Months Ended Months Ended From Inception
September 30, September 30, on July 26,
__________________ ___________________ 1990 Through
2007 2006 2007 2006 Sept 30, 2007
________ ________ ________ _________ _________
REVENUE $ - $ - $ - $ - $ -
EXPENSES:
General and
administrative 2,739 8,730 8,460 13,210 72,618
________ ________ ________ _________ _________
LOSS BEFORE
INCOME TAXES (2,739) (8,730) (8,460) (13,210) (72,618)
CURRENT TAX EXPENSE - - - - -
DEFERRED TAX EXPENSE - - - - -
________ ________ ________ _________ _________
NET LOSS $ 2,739) $(8,730) $(8,460) $(13,210) $(72,618)
________ ________ ________ _________ _________
LOSS PER
COMMON SHARE $ (.00) $ (.00) $ (.00) $ (.00)
________ ________ ________ _________
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The accompanying notes are an integral part of these unaudited condensed
financial statements.
-4-
BIOETHICS, LTD.
[A Development Stage Company]
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
For the Nine From Inception
Months Ended on July 26,
September 30, 1990 Through
____________________ Sept 30,
2007 2006 2007
_________ _________ _________
Cash Flows from Operating Activities:
Net loss $ (8,460) $(13,210) $(72,618)
Adjustments to reconcile net
loss to net cash used by
operating activities:
Changes in assets and liabilities:
Increase (decrease)
in accounts payable - (40) -
_________ _________ _________
Net Cash (Used) by
Operating Activities (8,460) (13,250) (72,618)
_________ _________ _________
Cash Flows from Investing Activities: - - -
_________ _________ _________
Net Cash Provided by
Investing Activities - - -
_________ _________ _________
Cash Flows from Financing Activities:
Proceeds from common stock issuance - - 41,000
Capital contribution 15,000 10,000 45,000
_________ _________ _________
Net Cash Provided by
Financing Activities 15,000 10,000 86,000
_________ _________ _________
Net Increase (Decrease) in Cash 6,540 (3,250) 13,382
Cash at Beginning of Period 6,842 12,523 -
_________ _________ _________
Cash at End of Period $ 13,382 $ 9,273 $ 13,382
_________ _________ _________
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Supplemental Disclosures of Cash Flow information:
Cash paid during the period for:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
Supplemental schedule of Non-cash Investing and Financing Activities:
For the nine months ended September 30, 2007:
None
For the nine months ended September 30, 2006:
None
The accompanying notes are an integral part of these unaudited condensed
financial statements.
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BIOETHICS, LTD.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization - Bioethics, Ltd. ("the Company") was organized under the
laws of the State of Nevada on July 26, 1990. The Company has not
commenced planned principal operations and is considered a development
stage company as defined in Statement of Financial Accounting Standards
No. 7. The Company was organized to provide a vehicle for participating
in potentially profitable business ventures which may become available
through the personal contacts of, and at the complete discretion of, the
Company's officers and directors. 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 September 30, 2007 and 2006 and for the
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 September 30, 2007 and
2006 are not necessarily indicative of the operating results for the full
year.
NOTE 2 - CAPITAL STOCK
Common Stock - In July 1990, in connection with its organization, the
Company issued 1,000,000 shares of its previously authorized but unissued
common stock. Total proceeds from the sale of stock amounted to $1,000
(or $.001 per share).
In May 1998, the Company issued 10,000,000 shares of its previously
authorized but unissued common stock. Total proceeds from the sale of
stock amounted to $40,000 (or $.004 per share). The issuance of common
stock resulted in a change in control of the Company.
Capital Contribution - During the year ended December 31, 2006, a
shareholder of the Company contributed $10,000 to the Company. During the
three month period ended September 30, 2007, a shareholder of the Company
contributed $15,000 to the Company.
NOTE 3 - RELATED PARTY TRANSACTIONS
Management Compensation - During the nine months ended September 30, 2007
and 2006, the Company did not pay any compensation to its officers and
directors.
Office Space - The Company has not had a need to rent office space. An
officer/shareholder of the Company is allowing the Company to use his home
as a mailing address, as needed, at no expense to the Company.
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BIOETHICS, LTD.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 4 - 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. 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 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 5 - LOSS PER SHARE
The following data show the amounts used in computing loss per share:
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
______________________ ______________________
2007 2006 2007 2006
__________ __________ __________ __________
Loss from continuing
operations applicable
to common
stockholders
(numerator) $ (2,739) $ (8,730) $ (8,460) $(13,210)
__________ __________ __________ __________
Weighted average
number of
common shares
outstanding
used in loss per
share during
the period
(denominator) 11,000,000 11,000,000 11,000,000 11,000,000
__________ __________ __________ __________
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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.
-7-
Item 2. Management's Discussion and Analysis or Plan of Operation.
The following discussion and analysis provides information which
management believes is relevant to an assessment and understanding of the
Company's results of operations and financial condition. The discussion
should be read in conjunction with the financial statements and notes
thereto.
Plan of Operation
The Company has no business operations, and very limited assets or
capital resources. The Company's business plan is to seek one or more
potential business ventures that, in the opinion of management, may
warrant involvement by the Company. The Company recognizes that because of
its limited financial, managerial and other resources, the type of
suitable potential business ventures which may be available to it will be
extremely limited. The Company's principal business objective will be to
seek long-term growth potential in the business venture in which it
participates rather than to seek immediate, short-term earnings. In
seeking to attain the Company's business objective, it will not restrict
its search to any particular business or industry, but may participate in
business ventures of essentially any kind or nature. It is emphasized that
the business objectives discussed are extremely general and are not
intended to be restrictive upon the discretion of management.
The Company will not restrict its search for any specific kind of
firms, but may participate in a venture in its preliminary or development
stage, may participate in a business that is already in operation or in a
business in various stages of its corporate existence. It is impossible to
predict at this stage the status of any venture in which the Company may
participate, in that the venture may need additional capital, may merely
desire to have its shares publicly traded, or may seek other perceived
advantages which the Company may offer. In some instances, the business
endeavors may involve the acquisition of or merger with a corporation
which does not need substantial additional cash but which desires to
establish a public trading market for its common stock.
The Company does not have sufficient funding to meet its short or
long term cash needs. The Company believes that its current cash will not
be sufficient to support the Company's planned operations for the next
twelve months. The current sole officer and director has expressed his
intent that to the extent necessary the Company will seek to raise
additional funds through the sale of equity securities or by borrowing of
funds until a suitable business venture can be completed. There is no
assurance that the Company will be able to successfully identify and/or
negotiate a suitable potential business venture or raise additional funds
if and when needed.
The Company has experienced net losses during the development stage
(1990 to present) and has had no significant revenues during such period.
During the past two fiscal years the Company has had no business
operations. In light of these circumstances, the ability of the Company to
continue as a going concern is significantly in doubt. The attached
financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
Off-Balance Sheet Arrangements
The Company does not have any off-balance sheet arrangements that
have or are reasonably likely to have a current or future effect on our
financial condition, changes in financial condition, revenues or expenses,
results of operations, liquidity, capital expenditures or capital
resources that is material to investors.
Critical Accounting Policies
Due to the lack of current operations and limited business
activities, the Company does not have any accounting policies that it
believes are critical to facilitate an investor's understanding of the
Company's financial and operating status.
-8-
Recent Accounting Pronouncements
The Company has not adopted any new accounting policies that would
have a material impact on the Company's financial condition, changes in
financial conditions or results of operations.
Forward-Looking Statements
When used in this Form 10-QSB or other filings by the Company with
the Securities and Exchange Commission, in the Company's press releases or
other public or shareholder communications, or in oral statements made
with the approval of an authorized officer of the Company's executive
officers, the words or phrases "would be", "will allow", "intends to",
"will likely result", "are expected to", "will continue", "is
anticipated", "estimate", "project", or similar expressions are intended
to identify "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995.
The Company cautions readers not to place undue reliance on any
forward-looking statements, which speak only as of the date made, and
advises readers that forward-looking statements involve various risks and
uncertainties. The Company does not undertake, and specifically disclaims
any obligation to update any forward-looking statements to reflect
occurrences or unanticipated events or circumstances after the date of
such statement.