UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2003
Or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to _____________
Commission File Number: 000-50014
WINFIELD FINANCIAL GROUP, INC.
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(Exact name of registrant as specified in its charter)
Nevada 88-0478644
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(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) No.)
2770 S. Maryland Parkway, Ste.
402, Las Vegas, NV 89109
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(Address of principal executive offices) (Zip Code)
(702) 731-0030
---------------------------
(Registrant's telephone number, including area code)
N/A
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(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (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 reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date:
4,894,150
PAGE-1-
WINFIELD FINANCIAL GROUP, INC.
Table of Contents
Page
PART I - FINANCIAL INFORMATION 3
Item 1. Financial Statements
Balance Sheet 4
Statement of Operations 5
Statement of Cash Flows 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Plan of Operation 8
Item 3. Controls and Procedures
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities.
Item 4. Submission of Matters to a Vote of Security Holders.
Item 5. Other Information. 12
Item 6. Exhibits 12
SIGNATURES 13
CERTIFICATIONS 13
PAGE-2-
PART I - FINANCIAL INFORMATION
Item 1. Restated Financial Statements and Unaudited Financial Statements
WINFIELD FINANCIAL GROUP, INC.
(A Development Stage Company)
BALANCE SHEET
September 30, 2003
ASSETS
Cash $ 691
=========
LIABILITIES
Accounts payable $ -
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STOCKHOLDERS' EQUITY
Preferred stock; $.001 par value, 5,000,000 authorized,
none issued and outstanding
Common stock, $.001 par, 20,000,000 shares
authorized, 4,894,150 shares issued and outstanding 4,894
Paid in capital 120,812
Deficit accumulated during the development stage (125,015)
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Total Stockholders' Equity 691
---------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 691
=========
PAGE-3-
WINFIELD FINANCIAL GROUP, INC.
(A Development Stage Company)
STATEMENTS OF EXPENSES
Three and Nine Months ended September 30, 2003 and 2002 and
From the period May 2, 2000 (Inception)
Through September 30, 2003
Three Months Nine Months Inception
Ended Ended Through
2003 2002 2003 2002 2003
------- -------- ------- -------- ---------
Administrative expenses $ 1,380 $ 58,230 $ 9,810 $ 58,316 $ 125,015
------- -------- ------- -------- ---------
Net loss $(1,380) $(58,230) $(9,810) $(58,316) $(125,015)
======= ======== ======= ======== =========
Basic and diluted net
loss per common share $ (0.00) $ (0.01) $ (0.00) $ (0.01)
Weighted average common
shares outstanding 4,894,150 4,754,397 4,894,150 4,322,717
PAGE-4-
WINFIELD FINANCIAL GROUP, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 2003 and 2002 and
the Period from May 2, 2000 (Inception)
Through June 30, 2003
Inception
Through
2003 2002 2003
--------- --------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (9,810) $(58,316) $(125,015)
Adjustments to reconcile net loss
to cash used in operating activities:
Stock issued for services 40,000
Changes in:
Accounts payable (3,600) -
Accrued Expenses 1,200
--------- --------- ---------
NET CASH USED IN OPERATING ACTIVITIES (13,410) (57,116) (85,015)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for cash 77,206 85,706
--------- --------- ---------
NET CHANGE IN CASH (13,410) 20,090 691
Cash balance, beginning 14,101 86 0
--------- --------- ---------
Cash balance, ending $ 691 $ 20,176 $691
========= ========= =========
PAGE-5-
WINFIELD FINANCIAL GROUP, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited interim financial statements of Winfield
Financial Group, Inc. ("Winfield") have been prepared in accordance with
accounting principles generally accepted in the United States of America
and the rules of the Securities and Exchange Commission ("SEC"), and
should be read in conjunction with the audited financial statements and
notes thereto contained in Winfield's latest annual report filed with
the SEC on Form 10-KSB. In the opinion of management, all adjustments,
consisting of normal recurring adjustments, necessary for a fair
presentation of financial position and the results of operations for the
interim periods presented have been reflected herein. The results of
operations for interim periods are not necessarily indicative of the
results to be expected for the full year. Notes to the financial
statements which would substantially duplicate the disclosure contained
in the audited financial statements for fiscal year 2002, as reported in
the Form 10-KSB, have been omitted.
Item 2. Management's Discussion and Plan of Operation
Forward-Looking Statements
This Quarterly Report contains forward-looking statements
about Winfield Financial Group, Inc.'s business, financial
condition and prospects that reflect management's assumptions and
beliefs based on information currently available. We can give no
assurance that the expectations indicated by such forward-looking
statements will be realized. If any of our management's
assumptions should prove incorrect, or if any of the risks and
uncertainties underlying such expectations should materialize,
Winfield Financial Group's actual results may differ materially
from those indicated by the forward-looking statements.
The key factors that are not within our control and that may
have a direct bearing on operating results include, but are not
limited to, acceptance of our services, our ability to expand our
customer base, managements' ability to raise capital in the future,
the retention of key employees and changes in the regulation of our
industry.
There may be other risks and circumstances that management may
be unable to predict. When used in this Quarterly Report, words
such as, "believes," "expects," "intends," "plans,"
"anticipates," "estimates" and similar expressions are intended to
identify forward-looking statements, as defined in Section 21E of
the Securities Exchange Act of 1934, although there may be certain
forward-looking statements not accompanied by such expressions.
PAGE-6-
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.
Winfield Financial Group, Inc. was founded under the laws of the
state of Nevada on May 2, 2000.
Since our inception we have devoted our activities to the following:
* Raising capital;
* Establishing our business brokerage business; and
* Developing markets for the services we offer.
We intend to act primarily as a business broker, exclusively
representing sellers and advising buyers desiring to acquire
businesses. We will target sellers looking to sell their
private companies with a sales volume range from $5 to $75
million in revenues.
We have conducted our operations since May 2, 2000. We are a
developmental stage company. For the period from inception to
September 30, 2003, we generated no revenues and had a loss of $125,015.
We had $691 of cash available as of October 2003. Current expenses
are a maximum of $455 per month, comprised primarily
of rent of $400 and website expenses of $55 consisting of hosting fees.
When we obtained our Nevada real estate license, we began utilizing
telephone solicitation at minimal cost in order to secure business
listings.
With these overhead expenses we can continue operations for
approximately 1 month of operations without additional funds
through November 2003.Thereafter, we will need to generate operating
revenues or secure other funding on or before December 2003 in the
amount of $5,005 to remain operational until November, 2004 with the
current minimum overhead expenses. There are no preliminary or
definitive agreements or understandings with any party for such
financing, although we have secured a contract for $67,000 with payment
not being made until the ESOP, which is the subject of that contract,
actually funds. We cannot predict when, if ever, that will happen. After
we begin generating operating revenues, we intend to increase our marketing
expenses for potential clients and referring brokers to $4,700 per
month.
We recently received our real estate license in Nevada and now
can generate revenues from our planned business broker
activities. We are also pursuing the generation of revenues by providing
business valuation and business consulting services which have a shorter
realization of revenues than the listing and sales of businesses.
As of September 30 2003, we have not generated any operating
revenues. We signed our first consulting agreement on July 15, 2003
for $67,000 to provide strategic analysis and planning for a
client's company goals over the next six months scheduled to be
paid on or before January 2004.
PAGE-7-
We raised $77,206 in net proceeds from a Nevada state
registered offering in July 2002. After payment made to
GoPublicToday.com in the amount of $48,410, we've been using
the remaining $20,036 in funds to implement our business
plan as follows:
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Milestone or Step Expected Manner of Date When Step Should Cost of
Occurrence or Method of be Accomplished Completion
Achievement
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Licenses
-------- File completed
Apply and obtain Application and $125
Nevada Real Gain Nevada Real Completed
Estate License. Estate Division June 5, 2003
Approval
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Facilities
---------- Review Buildings and
Locate and sites. April 2004 $1,500
Establish
Office
Facilities.
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Information
Management System
-----------------
[We use the
information
management system
primarily to
build and manage
our database of
potential clients
(Sellers and Utilizing Standard May 2003 $1,500
Buyers] Information Completed
A) Establish Programs and Hardware.
Information
management Install Programs and Run May 2003
System. Tests. Completed -0-
B)Implement
Information May 2003
Management Run Audit Reports Completed
System. And Compare to Physical -0-
records.
C)Evaluate May 2003
Information Completed
Management Using Audit Results
System. Adjust -0-
Information Management
D)Adjust System.
Information
Management
System.
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PAGE-8-
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Personnel Utilizing Nation-List
--------- International,
A)Recruiting International Business January 2004 $1,100
Associates. [1] Brokers
Association.
B)Training
Associates. First Group of Trained
Associates. February 2003 -0-
C)Evaluating
Associates. Review First Group
Associates Results. March 2004 -0-
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Documents
---------
A)Design forms,
Contracts, Utilize Standard December 2002 -0-
Literature and Forms Approved by Completed
Media Kits. Legal.
B)Print forms, Obtain Bids and May 2003 $290 per
Contracts, Contract for Printing. Completed month
Literature and
Media Kits.
------------------------------------------------------------------------------
Policies
-------- Utilizing Standard
A)Establish Policies and Procedures December 2002 -0-
Operation Approved by Legal. completed
Policies
And Procedures. Issue and Distribute
Associates' Handbook December 2003 $600
B)Implement
Operation
Policies and
Procedures.
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Marketing WFG [2]
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A)Finalize Plan. Determine percentage of Completed
various Media. February 2003 -0-
B)Execute Plan Place Ads and Other
Branding WFG Media $5,000
January 2003
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[1] We will recruit sales associates who have real estate
licenses to list and sell our businesses. It is anticipated
that a maximum of five sales associates will be recruited in
2004 who may possibly be members of Nation-List
International, International Business Brokers Association
or other like-kind professional business broker
organizations.
[2] Nationlist International, International Business Brokers
Association, and Dun and Bradstreet Marketplace list
potential businesses that may be our clients. We will
obtain information from these sources by purchasing the
information from these sources and place it in our database
once we become licensed. We will not have any formal
contracts, agreements or commitments with these
organizations, other than merely purchasing their lists for
use by us. We will not have any exclusive arrangements with
these organizations. We will not list businesses for sale
on websites maintained by these organizations. We will
attempt to secure these businesses as clients by contacting
them by e-mail, fax, telephone or regular mail. In
addition, we will contact other brokers who may have clients
we can represent. These businesses are free to list their
assets on other websites or with other entities after we
acquire the lists.
PAGE-9-
In order to become profitable, we will 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 rise the required funding.
There are no preliminary or definitive agreements or understandings
with any party for such financing.
Our ability to continue as a going concern is dependent on our
ability to raise funds to implement our planned development;
however we may not be able to raise sufficient funds to do so. Our
independent auditors have indicated that here is substantial doubt
about our ability to continue as a going concern over the next
twelve months. Our poor financial condition could inhibit our
ability to achieve our business plan, because we are currently
operating at a substantial loss with no operating history and
revenues, an investor cannot determine if we will ever become
profitable.
If any of the steps above are not completed as presented in the
preceding milestone table, it could delay the overall schedule and
eliminate or reduce 2003 revenues.
Item 3. Controls and Procedures
The Corporation maintains disclosure controls and procedures designed to
ensure that information required to be disclosed in reports filed under
the Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported within the specified time periods. As of the end
of the period covered by this report, the Corporation's Chief Executive
Officer and Chief Financial Officer evaluated the effectiveness of the
Corporation's disclosure controls and procedures. Based on the
evaluation, which disclosed no significant deficiencies or material
weaknesses, the Corporation's Chief Executive Officer and Chief
Financial Officer concluded that the Corporation's disclosure controls
and procedures are effective as of the end of the period covered by this
report. There were no changes in the Corporation's internal control over
financial reporting that occurred during the Corporation's most recent
fiscal quarter that have materially affected, or are reasonably likely
to materially affect, the Corporation's internal control over financial
reporting.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
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
PAGE-10-
Item 6. Exhibits
Exhibit Name and/or Identification of Exhibit
Number
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3 Articles of Incorporation & By-Laws
(a) Articles of Incorporation of the Company.*
(b) By-Laws of the Company.*
31 Certification
32 Certification
* Incorporated by reference to the exhibits to the Company's General
Form for Registration of Securities of Small Business Issuers on Form 10-
SB, and amendments thereto, previously filed with the Commission.
PAGE-11-
SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this Report to be
signed on its behalf by the undersigned hereunto duly authorized.
Winfield Financial Group, Inc.
------------------------------
(Registrant)
By: /s/ Robert W. Burley
-----------------------
Robert W. Burley
President, CEO, Principal Financial Officer and Principal
Accounting Officer
Date: November 4, 2003
PAGE-12-