UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 2002
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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 333-61801
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JURAK CORPORATION WORLD WIDE, INC.
(Exact name of registrant as specified in its charter)
MINNESOTA 88-0407679
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1181 Grier Drive, Suite C, Las Vegas, NV 89119-3746
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(Address of principal executive offices)
(702) 914-9688
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(Registrant's telephone number, including area code)
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
15,527,750 Common Shares were outstanding as of October 15, 2002
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JURAK CORPORATION WORLD WIDE, INC.
I N D E X
Page
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Balance Sheets
August 31, 2002 (Unaudited) and
May 31, 2002 1
Statements of Operations
Three months ended August 31,
2002 and 2001 (Unaudited) 2
Condensed Statements of Cash Flows
Three months ended August 31,
2002 and 2001 3
Selected Notes to Condensed Financial
Statements (Unaudited) 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 5
PART II. OTHER INFORMATION 6-7
Part I. FINANCIAL INFORMATION
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Item I. FINANCIAL STATEMENTS
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JURAK CORPORATION WORLD WIDE, INC.
CONDENSED BALANCE SHEETS
August 31, May 31,
ASSETS 2002 2002
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(Unaudited) (Audited)
Cash (including savings) $ 286 $ --
Inventories 53,050 99,628
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Total current assets 53,336 99,628
Property, plant and equipment - net 11,638 18,638
Other assets 99,544 99,544
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$ 164,518 $ 217,810
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LIABILITIES AND STOCKHOLDERS' DEFICIT
Checks issued in excess of bank balance $ 26,688 $ 10,423
Accounts payable 72,344 57,474
Accrued compensation 329,163 286,563
Payable to related party 163,336 148,336
Payable to stockholder, officer 1,323,090 1,314,920
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Total current liabilities 1,914,621 1,817,716
STOCKHOLDERS' DEFICIT:
Common stock 15,528 15,528
Additional paid-in capital 569,158 569,158
Accumulated deficit (2,334,789) (2,184,592)
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(1,750,103) (1,599,906)
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$ 164,518 $ 217,810
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Note: The balance sheet at May 31, 2002 has been taken from the audited
financial statements at that date, and has been condensed.
See Notes to Condensed Financial Statements.
1
JURAK CORPORATION WORLD WIDE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
August 31
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2002 2001
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Sales $ 549,378 $ 398,162
Cost of sales 116,575 37,252
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Gross profit 432,803 360,910
Selling, general and administrative expense 556,717 385,035
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Loss from operations (123,914) (24,125)
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Other income (expense):
Interest income 10 --
Interest expense (26,293) (22,350)
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(26,283) (22,350)
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Loss before income taxes (150,197) (46,475)
Income taxes -- --
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Net loss $ (150,197) $ (46,475)
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Loss per common share $ (.01) $ (.01)
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Loss per common share assuming dilution $ (.01) $ (.01)
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Weighted average outstanding shares 15,527,750 15,527,750
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See Notes to Condensed Financial Statements.
2
JURAK CORPORATION WORLD WIDE, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
August 31
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2002 2001
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(150,197) $ (46,475)
Depreciation 7,000 6,300
Changes in current assets and liabilities:
Inventories 46,578 (17,161)
Accounts payable 14,870 20,040
Accrued expenses 42,600 20,947
Payable to related parties 23,170 37,542
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Net cash provided by used in operating activities (15,979) 21,193
CASH FLOWS FROM FINANCING ACTIVITIES:
Checks issued in excess of bank balance 16,265 --
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Net increase in cash 286 21,193
Cash and savings:
Beginning of period -- 33,346
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End of period $ 286 $ 54,539
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See Notes to Condensed Financial Statements.
3
JURAK CORPORATION WORLD WIDE, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Condensed Financial Statements:
The condensed balance sheet as of August 31, 2002, the statement of
operations for the three-month periods ended August 31, 2002 and 2001,
and the condensed statement of cash flows for the three-month periods
then ended 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 changes in cash flows at August 31,
2002 and for all periods presented 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 May 31, 2002 audited financial statements.
The results of operations for the period ended August 31, 2002 are not
necessarily indicative of the operating results for the full year.
Note 2. Inventories:
Inventories consist of the following:
August 31, May 31,
2002 2002
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Raw materials $ 15,000 $ 16,287
Finished goods and supplies 38,050 83,341
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Totals $ 53,050 $ 99,628
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Note 3. Stockholders' Deficit:
During the three months ended August 31, 2002, stockholders' deficit
changed for net loss of $150,197.
4
JURAK CORPORATION WORLD WIDE, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Company has continued to increase its revenue from sales of its
products. There were sales of $549,378 during the three months ended August 31,
2002, compared to $398,162 for the same period in 2001. There were cost of sales
of $116,575 in 2002, and cost of sales in 2001 was $37,252; for a gross profit
of $432,803 in 2002, compared to a gross profit of $360,910 in 2000. The cost of
sales rose in the last year because the price of the ingredients of the product
doubled, and because the Company changed to more pure botanicals.
During the same period the Company expended selling, general, and
administrative expenses of $556,717 in 2002 for a net loss of $150,197; in 2001
it expended selling, general and administrative expenses of $385,035 for a net
loss of $46,475. The net loss in both years was $.01 per share. The selling,
general and administrative expenses increased because of the addition of 5 call
centers, increased computer expense with updated software, royalties, television
advertising, and promotional campaigns.
SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the dates of the financial statements and reported amounts of revenues and
expenses during the reporting periods. The Company's significant accounting
policies are described in Note 1 to the financial statements for the year ended
May 31, 2002. The accounting policies used in preparing our interim 2003
financial statements are the same as those described in May 31, 2002 financial
statements. The most significant estimates and assumptions relate to the
valuation of inventory and the liability for the stock bonus plan. Actual
amounts could differ from these estimates.
Inventory Valuation
Inventories consist primarily of raw materials, finished goods and
supplies and are valued at the lower of cost or market (first-in, first-out
method).
Stock Bonus Plan
Distributors are awarded points based on sales which will be redeemable
for shares of the Company. The amount of the liability for this plan at August
31, 2002 is approximately $130,000.
5
PART II. OTHER INFORMATION
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Item 1. Legal Proceedings
The Company is aware of no legal proceeding which is pending or
threatened to which the Company is a party or of which its property is
subject.
Item 6. Exhibits and Reports on Form 8-K
(b) No reports on Form 8-K were filed during the three months
ended August 31, 2002.
6
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JURAK CORPORATION WORLD WIDE, INC.
Date October 15, 2002 By: /s/ Anthony Carl Jurak
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Anthony Carl Jurak
Chairman of the Board and Director
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CERTIFICATION PURSUANT TO 18 U.S.C.ss.1350
In connection with the Quarterly Report of Jurak Corporation World Wide, Inc.
(the "Company") on Form 10-QSB for the period ended August 31, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
the undersigned, in the capacities listed below, hereby certifies, pursuant to
18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, that: (i) The Report fully complies with the requirements of Section
13(a) or 15(d) of the Securities Exchange Act of 1934; and (ii) The information
contained in the Report fairly presents, in all material respects, the financial
condition and results of operations of the Company.
October 15, 2002 By /s/ Anthony Jurak
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Anthony Jurak
President, Chief
Executive Officer
and Principal Accounting Officer