Nevada
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04-3836208
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(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
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Identification
No.)
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ITEM
1.
|
Financial
Statements
|
Consolidated
Balance Sheets
|
|
At
December 31, 2006 and September 30, 2007
|
|
Consolidated
Statements of Operations
|
|
For
the Three Months and Nine Months Ended September 30, 2007 and September
30, 2006
|
|
Consolidated
Statements of Cash Flows
|
|
For Nine
Months Ended September 30, 2007 and September 30, 2006
|
|
Notes
to Consolidated Financial Statements
|
|
ITEM
2.
|
Managements
Discussion and Analysis of Financial Condition and Results of
Operation
|
ITEM
3.
|
Controls
and Procedures
|
PART
II OTHER INFORMATION
|
|
ITEM
1.
|
Legal
Proceedings
|
ITEM
2.
|
Changes
in Securities and Use of Proceeds
|
ITEM
3.
|
Defaults
Upon Senior Securities
|
ITEM
4.
|
Submission
of Matters to a Vote of Security Holders
|
ITEM
5.
|
Other
Information
|
ITEM
6.
|
Exhibits
and Reports on Form 8-K
|
Signatures
|
NB
TELECOM, INC.
|
||||||||
BALANCE
SHEETS
|
||||||||
(Unaudited)
|
(Restated)
|
|||||||
September
30,
|
December
31,
|
|||||||
2007
|
2006
|
|||||||
CURRENT
ASSETS
|
||||||||
Cash
|
$ |
-
|
$ |
-
|
||||
Commissions
and Sales Receivable, Net
|
12,708
|
1,223
|
||||||
Inventory
|
324
|
-
|
||||||
Prepaid
Expenses and Other Current Assets
|
98
|
300
|
||||||
TOTAL
CURRENT ASSETS
|
13,130
|
1,523
|
||||||
FIXED
ASSETS
|
||||||||
Telephone
and Office Equipment
|
202,652
|
213,244
|
||||||
Vehicle
|
11,634
|
11,634
|
||||||
214,286
|
224,878
|
|||||||
Less:
Accumulated Depreciation
|
(214,286 | ) | (215,535 | ) | ||||
Net
Fixed Assets
|
-
|
9,343
|
||||||
TOTAL
ASSETS
|
$ |
13,130
|
$ |
10,866
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
Liabilities
|
||||||||
Accounts
Payable
|
$ |
167,107
|
$ |
136,342
|
||||
Accrued
Expenses
|
-
|
255
|
||||||
Bank
Overdraft
|
7,977
|
1,352
|
||||||
Related
Party Payable
|
156,204
|
144,203
|
||||||
Notes
Payable Related Party
|
57,928
|
21,724
|
||||||
TOTAL
CURRENT LIABILITIES
|
389,216
|
303,876
|
||||||
TOTAL
LONG-TERM LIABILITIES
|
-
|
-
|
||||||
TOTAL
LIABILITIES
|
389,216
|
303,876
|
||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Preferred
Stock, .0001 par value 10,000,000 shares authorized,
|
||||||||
0
shares issued at September 30, 2007 and December 31, 2006
|
-
|
-
|
||||||
Common
Stock, .0001 par value 100,000,000 shares authorized,
|
||||||||
49,632,222
shares issued and outstanding at September 30, 2007
|
||||||||
and
at December 31, 2006
|
4,963
|
4,963
|
||||||
Additional
Paid in Capital
|
351,431
|
351,431
|
||||||
Retained
Earnings
|
(732,480 | ) | (649,404 | ) | ||||
TOTAL
STOCKHOLDERS' EQUITY
|
(376,086 | ) | (293,010 | ) | ||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ |
13,130
|
$ |
10,866
|
||||
The
accompanying notes are an integral part of these financial
statements.
|
NB
TELECOM, INC.
|
||||||||||||||||
STATEMENT
OF OPERATIONS
|
||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
For
the Three
|
For
the Nine
|
|||||||||||||||
Months
Ended
|
Months
Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
SALES
|
||||||||||||||||
Commissions
|
$ |
10
|
$ |
1,825
|
$ |
6,080
|
$ |
4,809
|
||||||||
Coin
Collections
|
1,032
|
2,028
|
5,161
|
7,020
|
||||||||||||
Dial
Around
|
7,965
|
5,810
|
14,708
|
12,051
|
||||||||||||
Service
and Repair Sales
|
9,335
|
8,913
|
27,714
|
29,298
|
||||||||||||
Total
Sales
|
18,342
|
18,576
|
53,663
|
53,178
|
||||||||||||
COST
OF SALES
|
||||||||||||||||
Telecommunications
Costs
|
13,465
|
22,850
|
44,245
|
57,625
|
||||||||||||
Repairs
and Service Supplies
|
-
|
-
|
-
|
551
|
||||||||||||
Depreciation
|
-
|
10,270
|
9,342
|
25,449
|
||||||||||||
Total
Cost of Sales
|
13,465
|
33,120
|
53,587
|
83,625
|
||||||||||||
Gross
Profit
|
4,877
|
(14,544 | ) |
76
|
(30,447 | ) |
NB
TELECOM, INC.
|
||||||||||||||||
STATEMENT
OF OPERATIONS
|
||||||||||||||||
(Continued)
|
||||||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
For
the Three
|
For
the Nine
|
|||||||||||||||
Months
Ended
|
Months
Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
OPERATING
EXPENSES
|
||||||||||||||||
Insurance
|
$ |
-
|
$ | (772 | ) | $ |
-
|
$ |
2,133
|
|||||||
Payroll
Wages and Taxes
|
4,548
|
24,416
|
19,701
|
29,941
|
||||||||||||
Telephone
|
(296 | ) |
418
|
(296 | ) |
1,241
|
||||||||||
Vehicle
Expenses
|
-
|
583
|
2,063
|
3,574
|
||||||||||||
Rent
|
-
|
135
|
593
|
365
|
||||||||||||
Professional
Fees
|
15,975
|
6,206
|
43,810
|
24,599
|
||||||||||||
Office
Expense
|
1,973
|
920
|
4,324
|
2,616
|
||||||||||||
Total
Operating Expenses
|
22,200
|
31,906
|
70,195
|
64,469
|
||||||||||||
Total
Operating Income (Loss)
|
(17,323 | ) | (46,450 | ) | (70,119 | ) | (94,916 | ) | ||||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
Gain
(Loss) on Sale of Equipment
|
-
|
2,295
|
6,160
|
-
|
||||||||||||
Bad
Debt Expense
|
(448 | ) |
-
|
(448 | ) |
-
|
||||||||||
Other
Expense
|
-
|
-
|
(286 | ) |
-
|
|||||||||||
Interest
Expense
|
(5,565 | ) | (1,171 | ) | (17,692 | ) | (2,016 | ) | ||||||||
Total
Other Income (Expense)
|
(6,013 | ) |
1,124
|
(12,266 | ) | (2,016 | ) | |||||||||
Net
Loss Before Taxes
|
(23,336 | ) | (45,326 | ) | (82,385 | ) | (96,932 | ) | ||||||||
Federal
Tax
|
(44 | ) |
-
|
(691 | ) |
-
|
||||||||||
NET
LOSS
|
$ | (23,380 | ) | $ | (45,326 | ) | $ | (83,076 | ) | $ | (96,932 | ) | ||||
Weighted
Common Shares Outstanding
|
49,632,222
|
49,632,222
|
49,632,222
|
49,632,222
|
||||||||||||
Net
Loss per Common Share
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
The
accompanying notes are an integral part of these financial
statements.
|
NB
TELECOM, INC.
|
||||||||
STATEMENT
OF CASH FLOWS
|
||||||||
(Unaudited)
|
||||||||
For
the Nine
|
||||||||
Months
Ended
|
||||||||
September
30,
|
||||||||
2007
|
2006
|
|||||||
Cash
Flows From Operating Activities:
|
||||||||
Net
Loss
|
$ | (83,076 | ) | $ | (96,932 | ) | ||
Adjustments
to reconcile net loss to net
|
||||||||
cash
provided (used) by operating activities:
|
||||||||
Depreciation
Expense
|
9,342
|
25,449
|
||||||
(Gain)
Loss on Sale of Equipment
|
(6,160 | ) |
-
|
|||||
(Increase)
Decrease in Commission Receivables
|
(11,485 | ) |
6,110
|
|||||
(Increase)
Decrease in Inventory
|
(324 | ) |
-
|
|||||
(Increase)
Decrease in Prepaid and Other Current Assets
|
202
|
-
|
||||||
Increase
(Decrease) in Accounts Payable
|
30,765
|
23,773
|
||||||
Increase
(Decrease) in Accrued Expenses
|
(255 | ) |
-
|
|||||
Increase
(Decrease) in Related Party Payable
|
12,002
|
24,801
|
||||||
Net
cash used in operating activities
|
(48,989 | ) | (16,799 | ) | ||||
Cash
Flows From Investing Activities:
|
||||||||
Proceeds
from Sale of Equipment
|
6,160
|
-
|
||||||
Net
cash provided by investing activities
|
6,160
|
-
|
||||||
Cash
Flows From Financing Activities:
|
||||||||
Proceeds
from Bank Overdraft
|
6,625
|
3,377
|
||||||
Proceeds
from Related Party Notes
|
36,204
|
11,389
|
||||||
Net
cash provided by financing activities
|
42,829
|
14,766
|
||||||
Net
Increase (Decrease) in cash
|
-
|
(2,033 | ) | |||||
Cash
- Beginning of Period
|
-
|
2,033
|
||||||
Cash
- End of Period
|
$ |
-
|
$ |
-
|
||||
Supplemental
Disclosures of Cash Flow Information:
|
||||||||
Cash
Paid During Period The Period For:
|
||||||||
Interest
|
$ | (16,791 | ) | $ | (2,016 | ) | ||
Income
Taxes
|
$ | (691 | ) | $ |
-
|
|||
The
accompanying notes are an integral part of these financial
statements.
|
September
30, 2007
|
December
31, 2006
|
|||||||
Parts
and Accessories
|
$ |
324
|
$ |
-
|
September
30, 2007
|
December
31
2006
|
|||||||
Commissions
Receivable
|
$ |
5,100
|
$ |
-
|
||||
Sales
Receivable
|
7,608
|
1,223
|
||||||
$ |
12,708
|
$ |
1,233
|
Note
4.
|
Related
Party Note
|
Note
4.
|
Related
Party Note (Continued)
|
Note
5.
|
Related
Party Payable
|
Note
6.
|
Major
Dial Around Compensation Providers
(Commissions)
|
Note
7.
|
Income
Taxes
|
2006
|
2005
|
|||||||
Net
Operating Losses & Other
|
112,200
|
49,692
|
||||||
Valuation
Allowance
|
(112,200 | ) | (49,692 | ) | ||||
-
|
-
|
Note
7.
|
Income
Taxes (Continued)
|
2006
|
2005
|
|||||||
Provision
(Benefit) at US Statutory Rate
|
(62,262 | ) | (30,426 | ) | ||||
Other
Differences
|
(246 | ) |
7,139
|
|||||
Increase
(Decrease) in Valuation Allowance
|
62,508
|
23,287
|
||||||
-
|
-
|
|
Cease
selling, incorporating or using products or services that incorporate
the
challenged intellectual property;
|
|
Obtain
from the holder of the infringed intellectual property right a license to
sell or use the relevant technology, which license may not be available
on
reasonable terms; or
|
|
Redesign
those products or services that incorporate such
technology.
|
|
Variations
in our quarterly operating results;
|
|
Changes
in financial estimates of our revenues and operating results by
securities
analysts;
|
|
Changes
in market valuations of telecommunications equipment
companies;
|
|
Announcements
by us of significant contracts, acquisitions, strategic partnerships,
joint ventures or capital
commitments;
|
|
Additions
or departures of key personnel;
|
|
Future
sales of our common stock;
|
|
Stock
market price and volume fluctuations attributable to inconsistent
trading
volume levels of our stock;
|
|
Commencement
of or involvement in
litigation.
|
EXHIBIT
NO.
|
DESCRIPTION
|
3
|
*Articles
of Incorporation filed on December 1, 2005.
|
3.1
|
*Bylaws.
|
31.1
|
Sarbanes-Oxley
Act of 2002 Section 302 Certification for Craig Burton
|
31.2
|
Sarbanes-Oxley
Act of 2002 Section 302 Certification for Paul Kelly
|
32.1
|
Sarbanes-Oxley
Act of 2002 Section 906 Certification for Craig Burton
|
32.2
|
Sarbanes-Oxley
Act of 2002 Section 906 Certification for Paul
Kelly
|
NB
Telecom, Inc.
|
|
(Registrant)
|
Dated: November
19, 2007
|
/s/
CRAIG BURTON
|
Craig
Burton
|
|
Secretary
NB Telecom, Inc.
|
|
Dated: November
19, 2007
|
/s/
Paul Kelly
|
Paul Kelly | |
President,
NB Telecom, Inc.
|
|