Attached files
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2011
Commission file number: 000-31154
NEVADA CLASSIC THOROUGHBREDS, INC.
(Name of small business issuer in its charter)
NEVADA 86-1007952
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State of other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
18750 E. Reins Rd, Queen Creek, AZ 85142 (480) 890-0678
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(Address of principal executive offices) Issuer's telephone number
None
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(Former name, former address and former fiscal year,
if changed since last report)
PART F/S
Financial Statements. The following financial statements are attached
to this report and filed as a part thereof.
TABLE OF CONTENTS
PAGE NO.
PART I 3
Item 1: FINANCIAL STATEMENT 3
Balance Sheet (unaudited) 3
Statement of Operations (unaudited) 4
Statement of Cash Flows (unaudited) 6
Notes to Financial Statements 8
Item 2: PLAN OF OPERATION 9
PART II - OTHER INFORMATION 11
Item 1: Legal Proceedings 11
Item 2: Changes in Securities 11
Item 3: Defaults Upon Senior Securities 11
Item 4: Submission of Matters to a Vote of Security Holders 11
Item 5: Other Information 11
Item 6: Exhibits and Reports on Form 8-K 11
PART II - 3 12
SIGNATURES 12
~~PAGE 2~~
NEVADA CLASSIC THOROUGHBREDS, INC.
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED FINANCIAL STATEMENT
FOR PERIOD ENDING March 31, 2011
BALANCE SHEET
ASSETS
CURRENT ASSETS
Cash
Corporate Checking $ 0
Corporate Savings 0
Demirosa, LLC Checking 0
Syndication Accounts:
Colt Checking 0
Colt Checking 0
Stallion Breeding Shares Inventory 0
Pixel Pet Expo 6,384
Demirosa, LLC 300
Real Estate Investment 13,954
-----------
$ 20,638
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 0
Credit Line 0
STOCKHOLDERS' EQUITY
Horse and Ranch Preferred Stock, par value $.001 per share:
Authorized: 5,000,000 shares:
(2,500,000 Horse Preferred and
2,500,000 Ranch Preferred)
Issued and outstanding: 4,000,000 shares:
(2,000,000 Horse Preferred and
2,000,000 Ranch Preferred) 4,000
Common stock, par value $.001 per share:
Authorized 5,000,000 shares
1,900,000 shares issued & outstanding 1,900
Paid-In capital in excess of par
value of stock 80
Deficits accumulated during
developmental stage (131,805)
TOTAL STOCKHOLDERS' EQUITY $ 20,638
-----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$ 20,638
===========
See Accompanying Notes
~~PAGE 3~~
NEVADA CLASSIC THOROUGHBREDS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR PERIOD ENDING MARCH 31, 2011
MAR 31, 2011 MAR 31, 2010
--------------- -------------
REVENUE $ 0 $ 0
EXPENSES
Pixel Pet Expo 0 0
Development costs 0 0
Administrative 80 0
General 0 0
TOTAL EXPENSES $ 0 0
------------- -----------
NET (LOSS) $ ( 80) $ ( 0)
============== =============
NET (LOSS) PER COMMON SHARE
Basic and diluted $ ( .00) $ ( .00)
============== ==============
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
Basic and diluted 1,900,000 1,900,000
=============== ==============
See Accompanying Notes
~~PAGE 4~~
NEVADA CLASSIC THOROUGHBREDS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS (continued)
FOR PERIOD ENDING MARCH 31, 2011
MAR 31, 2011 MAR 31, 2010
------------ -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $( 0) $( 0)
Adjustments to reconcile
net (loss) to net cash
provided by operating
activities 0 0
Fair market value of
services 0 0
Increase in paid in capital
in excess of par value
for payment of expenses
by stockholders 80 80
Changes in operating
assets and liabilities:
Accounts payable 0 0
----------- ------------
CASH PROVIDED BY LONG-TERM
NOTES PAYABLE $ 0 $ 0
NET CASH PROVIDED BY OPERATING
ACTIVITIES 0 0
CASH FLOWS FROM INVESTING
ACTIVITIES 0 0
CASH FLOWS FROM FINANCING
ACTIVITIES 0 0
----------- ------------
NET INCREASE (DECREASE)IN CASH AND
CASH BALANCE AT MAR 31 $ ( 80) $ ( 80)
========== ============
See Accompanying Notes
~~PAGE 5~~
NEVADA CLASSIC THOROUGHBREDS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR PERIOD ENDING MARCH 31, 2011
MAR 31, 2011 MAR 31, 2010
------------------ -------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (loss) $ ( 0) $ ( 0)
Adjustments to reconcile
net (loss) to net cash
provided by operating
activities 0 0
Fair market value of
services 80 80
Increase in paid in capital
in excess of par value of
stock for payment of
expenses by stockholders 80 80
Changes in operating
assets and liabilities:
Accounts payable 0 0
-------------- -----------
NET CASH PROVIDED BY OPERATING
ACTIVITIES $ 0 $ 0
CASH FLOWS FROM LOANS BY PRINCIPAL
OFFICER AND OPERATIONS MGR 0 0
CASH FLOWS FROM INVESTING
ACTIVITIES 0 0
CASH FLOWS FROM FINANCING
ACTIVITIES 0 0
NET INCREASE (DECREASE) IN CASH AND CASH BALANCE AT MAR 31, 2011
$ ( 0) $ ( 0)
See Accompanying Notes
~~PAGE 6~~
NEVADA CLASSIC THOROUGHBREDS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS (continued)
FOR PERIOD ENDING MARCH 31, 2011
MAR 31, 2011 MAR 31, 2010
------------------ --------------
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION
Cash paid for interest $ 0 $ 0
========= =========
Cash paid for taxes $ 0 $ 0
========= =========
SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Fair market value of services
donated by stockholders $ 80 $ 80
========= =========
Increase in paid in capital
in excess of par value of stock
for payment of expenses
paid by stockholders $ 80 $ 80
========= =========
See Accompanying Notes
~~PAGE 7~~
NEVADA CLASSIC THOROUGHBREDS, INC.
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED FINANCIAL STATEMENT
FOR PERIOD ENDING MARCH 31, 2011
NOTES TO FINANCIAL STATEMENTS
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The company uses SOP 85-3, breeding horses under development. The horse
evaluation is adding in direct costs to the value of the horses under
development. The value is the lower of cost or established market value,
until breeding maturity, then the horses are depreciated through the life
of the breeding career. Pursuant to discussions with staff of the Securities
and Exchange Commission in January of 2006 and in keeping with SOP 85-3
regarding evaluations of breeding stock, the following accounting practices
have been adopted and adjustments as of December 31, 2010.
Note 2: PREFERRED STOCK
No special rights or preferences have been assigned to the preferred stock.
NOTE 3: DEVELOPMENT STAGE OPERATIONS
The Company is in the development stages of operations. According to the
Financial Accounting Standards Board of the Financial Accounting Foundation, a
development stage company is defined as a company that devotes most of its
activities to establishing a new business activity. In addition, planned
principle activities have not yet commenced.
Note 4: FINANCIAL STATEMENT OF AN INACTIVE REGISTRANT
Under 17 CFR 210.3-11, the Company does not need to provide an audited or
reviewed quarterly report.
Reg. 17CFR210.3-11
(a) Gross Receipts from all sources for the fiscal year are not in excess
of $100,000;
(b) The registrant has not purchased or sold any of its own stock,
granted options therefore, or levied assessments upon outstanding stock;
(c) Expenditures for all purposes for the fiscal year are not in excess
of $100,000;
(d) No material change in the business has occurred during the fiscal
year, including any bankruptcy, reorganization, readjustment or succession or
any material acquisition or disposition of plants, mines, mining equipment,
mine rights or leases; and
(e) No exchange upon which the shares are listed, or governmental
authority having jurisdiction, requires the furnishing to it or the publication
of audited financial statements.
~~PAGE 8~~
Note 5: LONG TERM LIABILITIES - NOTES PAYABLE
In the minutes of the Company, the Company's officers and directors would pay
the expenses of the Company up to June 30, 2011, or until the Company can pay
its operation costs as determined by the Company's officers and directors.
After June 30, 2011, the Company would reimburse the officers and directors
for any direct expenses paid into the Company.
The payback of the long-term liabilities will be within a five-year period with
a simple yearly interest rate of 5% on any outstanding balance.
Note 6: SALARY - BY COMMON STOCK
In the corporate minutes the salary paid to the Chief Executive Officer is
donated to the company by the Chief Executive Officer until the Company can pay
its operation costs as determined by the Company's officers and directors.
ITEM 2: PLAN OF OPERATION
The following discussion and analysis should be read in conjunction with the
financial statements, including the notes thereto, appearing elsewhere in this
report.
The company in its developmental stage is now revising its analysis of the
prospective stallions for purchase.
The company has elected to purchase racing colts and develop them into
breeding stallions, as its primary function. This function is the heart of the
thoroughbred industry, where the most expensive horses are bought and sold, and
thus, the most important sector of the thoroughbred industry for profit to the
company. If the analysis of the prospective stallions is reasonably accurate,
then the company believes that it has the ability to purchase top breeding
and racing stallion prospects at a fraction of the cost of producing and
maintaining breeding stock to potentially accomplish the same purpose. It
appears obvious that, as long as the company enjoys its PGMRN advantage, that of
identifying potential top breeding and racing stallions, it can purchase these
stallion prospects at a much lower price than it can produce them at this point
in time. Therefore, the company is going to specialize in selecting these
prospects until such time as it is more economical to produce such stallions.
Having the ability to purchase breeding and racing stallion prospects at a
substantially lower price than it would cost to produce them, is a substantial
benefit to the company and eliminates the high risk of breeding and maintaining
broodmares.
The company's future plan of operation is to dispose of its marketing of its
horse products division of Internet horse product marketing. This disposal could
come by advertising, outright sale, spin-off, merger, or any other means the
company has in its arsenal to liquidate this asset to, instead, specialize in
only the purchase and sale of breeding and racing stallion prospects, as noted
above.
In general, any other assets not specifically used for this purpose will be
eliminated. Furthermore, these assets have been used and will more than likely
~~PAGE 9~~
be sold at a substantial loss to the company. None of the officers or directors
of the company will purchase such assets for their own interests; rather, these
assets will strictly be advertised and sold to others outside the company at
current market prices.
RESULT OF OPERATION
Power Genetics Mathematical Racing Numbers(tm) (PGMRN)
---------------------------------------------------
The minimum objective of the racing and breeding of stallion prospects is to
produce race horses that win graded-stakes races. The maximum the company is
hoping for is that the horses can compete and win in the classic races.
The company's PGMRN is the company's tool used to evaluate the potential of the
racing and breeding ability of its race horses. This is the company's
proprietary information. These indexes are, as far as the company understands,
on the cutting edge of the horse industry, and very little data can be found
elsewhere in the industry. Therefore, there are uncertainties involved in these
Power Numbers. Specifically, will the company's colts' Power Numbers as the
colts reach maturity and racing age stay the same, increase or decrease? And
exactly how accurate are the company's Power Numbers which will need further
analysis of a controlled and uncontrolled class of horses further than the
company has been able to develop at the present.
Competition
-----------
The competition is catching up to the company in one aspect of NCT's proprietary
PGMRN Number Indexes, specifically Index 6. For example, Lost In The Fog, a
horse-of-the-year candidate in 2005, won ten straight races before being
defeated in the Breeders Cup Championship Series Sprint race. Lost In The Fog
was analyzed by a company that analyzes efficiency of stride. According to the
Breeders Cup announcers, they analyzed length of stride and time in the air, and
he was selected for this quality. This would imply that some individuals are
beginning to understand and apply the relationship of Index 6 to a quality of
the race horse.
The competition is still behind the company in using the total Power Numbers in
selecting horses for breeding and racing. The indicators are that some owners
and trainers are willing to go through the expense of analyzing Index indicator
Number 6 to help in their selection process, especially the select Kentucky
sales, where horses are sold for millions of dollars. However, the other
indicators seem to be unnoticed at the present time in comparing horses that
have good indicators to those that do not. Their price seems to be relatively
the same, and no correspondence seems to exist between the poor and good
indicators and the prices at which they are sold. The thoroughbred sales in
California and Texas have usually less expensive horses, and it is rare that
anyone would go to the expense of analyzing these horses because of their lower
auction prices. This gives the company a big advantage. The company can see the
horses a day before the sale, analyze hundreds of horses using the complete
Power Index Numbers rather than just Index 6, and purchase or bid on horses that
have the complete package.
~~PAGE 10~~
MARKET MAKING
The company is in the process of obtaining a market maker for its stock, and
anticipates being on the Pink Sheets until the company meets the requirements of
the OTC Bulletin Board. While the company is in the process of securing a market
maker, there can be no guarantees that a market maker will be available, or that
the company will meet their requirements in order to make a market for the
company's securities.
FINANCIAL CONDITION AND LIQUIDITY
The Company expects to remain inactive. The Board of Directors intends to pay
a substantial portion of the company's expenses, as determined on an on-going
basis by the Board of Directors, until such time as the company is able to
produce a profit.
The company is in solid financial condition at the present time. The officers
and directors have paid the majority of the company's expenses, and the company
enjoys a substantial cash basis in savings and in horse syndications.
PART II - OTHER INFORMATION
Item I: 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
Item 6: Exhibits and Reports on Form 8-K
Exhibit 31.1 - Certification of the Chief Executive
Officer pursuant to Rule 13A-14 or 15D-14
of the Securities Exchange Act of 1934
as adopted pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002.
Exhibit 31.2 - Certification of the Acting Chief Financial
Officer pursuant to Rule 13A-14 or 15D-14
of the Securities Exchange Act of 1934, as
adopted pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
Exhibit 32.1 - Certification of the Chief Executive Officer
pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
~~PAGE 11~~
Exhibit 32.2 - Certification of the Acting Chief Financial
Officer pursuant to 18 U.S.C. Section 1350
as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
PART II - 3
None
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, and the Financial Statements of an Inactive Registrant
pursuant to Regulation 17CFR210-3-11, the Registrant has duly caused this
Report to be signed on its behalf by the undersigned thereunder duly
authorized.
Nevada Classic Thoroughbreds, Inc.
Dated: May 15, 2011 By: /s/ Brad Brimhall
----------------------------------
Brad Brimhall
Chief Accounting Officer
and Acting Chief Financial Officer
By: /s/ Brad Brimhall
----------------------------------
Brad Brimhall
Chief Executive Officer
~~PAGE 12~
