UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 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.
-------------------------------------
(Exact name of registrant as specified in its charter)
Nevada 88-0478644
----------------- ------------------
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) No.)
2770 S. Maryland Parkway, Ste.
402, Las Vegas, NV 89109
------------------------------------ --------
(Address of principal executive offices) (Zip Code)
(702) 731-0030
---------------------------
(Registrant's telephone number, including area code)
N/A
---------------------
(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
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders
Winfield Financial Group, Inc.
(A Development Stage Company)
Las Vegas, Nevada
We have audited the accompanying balance sheet of Winfield
Financial Group, Inc. as of December 31, 2002, and the related
statements of operations, stockholders' equity, and cash flows
for the six months then ended and the year ended June 30, 2002
and for the period from May 2, 2000 (Inception) through December
31, 2002. These financial statements are the responsibility of
Winfield Financial's management. Our responsibility is to
express an opinion on these financial statements based on our
audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Winfield Financial Group, Inc. as of December 31, 2002, and
the results of its operations and its cash flows for the six
months then ended and the year ended June 30, 2002 and for the
period from May 2, 2000 (Inception) through December 31, 2002, in
conformity with accounting principles generally accepted in the
United States of America.
The accompanying financial statements as of December 31, 2002 and
for the year then ended have been restated to correct errors as
described in Note 6.
The accompanying financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed
in Note 2 to the financial statements, Winfield has incurred
losses of $115,205 form its inception. Winfield will require
additional working capital to develop its business until Winfield
either (1) restart operations and achieve a level of revenues
adequate to generate sufficient cash flows from operations; or
(2) obtain additional financing. These conditions raise
substantial doubt about Winfield's ability to continue as a going
concern. Management's plans in regard to this matter are also
described in Note 2. The accompanying consolidated financial
statements do not include any adjustments that might result from
the outcome of these uncertainties.
Malone & Bailey, PLLC
Houston, Texas
www.malone-bailey.com
March 14, 2003, except for Note 2, which is as of April 23, 2003
and Note 6, which is as of July 22, 2003
PAGE-3-
WINFIELD FINANCIAL GROUP, INC.
(A Development Stage Company)
BALANCE SHEET
June 30, 2003
Restated
ASSETS
Cash $ 6,011
=========
LIABILITIES
Accounts payable $ 3,940
---------
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 169,222
Deficit accumulated during the development stage (172,045)
---------
Total Stockholders' Equity 2,071
---------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 6,011
=========
See accompanying summary of accounting policies and notes
to financial statements.
PAGE-4-
WINFIELD FINANCIAL GROUP, INC.
(A Development Stage Company)
STATEMENTS OF EXPENSES
Three and Six Months Ended June 30, 2003 and 2002 and
Period From May 2, 2000 (Inception)
Through June 30, 2003
Three Months Six Months Inception
Ended Ended Through
2003 2002 2003 2002 2003
-------- -------- -------- -------- ---------
Restated
Administrative expenses $ 2,742 $ 43 $ 8,430 $ 86 $ 172,045
-------- -------- -------- -------- ---------
Net loss $ (2,742) $ (43) $ (8,430) $ (86) $(172,045)
======== ======== ======== ======== =========
Basic and diluted net
loss per common share $(0.00) $(0.00) $ (0.00) $ (0.00)
Weighted average common
shares outstanding 4,894,150 4,037,000 4,894,150 4,037,000
See accompanying summary of accounting policies and notes
to financial statements.
PAGE-5-
WINFIELD FINANCIAL GROUP, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 2003 and 2002 and
Period from May 2, 2000 (Inception)
Through June 30, 2003
Inception
Through
2003 2002 2003
-------- -------- ---------
Restated
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (8,430) $ (86) $(172,045)
Adjustments to reconcile net loss
to cash used in operating activities:
Stock issued for services 40,000
Bad debt 48,410
Changes in:
Accounts payable 340 3,940
-------- -------- ---------
NET CASH USED IN OPERATING ACTIVITIES (8,090) (86) ( 79,695)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock for cash 85,706
-------- -------- ---------
NET CHANGE IN CASH (8,090) (86) 6,011
Cash balance, beginning 14,101 86 0
-------- -------- ---------
Cash balance, ending $ 6,011 $ 0 $ 6,011
======== ======== =========
See accompanying summary of accounting policies and notes
to financial statements.
PAGE-6-
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
10KSB. 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 10KSB, have
been omitted.
NOTE 2 - RESTATEMENT OF FINANCIAL STATEMENTS
The accompanying financial statements at December 31, 2002 and
for the year then ended have been restated to correct an error in
the recording of the receivable from Financial Marketing, Inc.
("FMI") to reimburse Winfield for its obligation to
GoPublicToday.com. Winfield did not initially record a
receivable from FMI for $48,410 based on the oral understanding
for FMI to pay certain fees to GoPublicToday.com. Winfield
determined the receivable should be recorded based on the
agreement at December 31, 2002. Winfield also determined FMI did
not have funds available to pay the subscription receivable and
recorded bad debt expense for the year ended December 31, 2002.
The income statement effect of this restatement is to increase
the net loss at December 31, 2002 by $48,410. The $48,410 was
included in bad debt expense. The balance sheet effect was an
increase in additional paid in capital of $48,410 and accumulated
deficit of $48,410 at December 31, 2002.
PAGE-7-
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-8-
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
development stage company. For the period from inception to June
30, 2003, we generated no revenues and had a loss of $123,635.
We had $6,011 of cash available as of June 30, 2003. Current
expenses are a maximum of $1,195 per month, comprised primarily
of printing costs of $290, on going computer programming and
testing of $450, rent of $400 and website expenses of $55 consisting
of hosting fees. When we obtained our Nevada real estate license
in June 2003, we began utilizing telephone solicitation at minimal
cost in order to secure business listings. With these overhead
expenses we can continue operations for approximately 3 months of
operations without additional funds through October 2003.
Thereafter, we will need to generate operating revenues or secure
other funding on or before October 2003 in the amount of $32,900
to remain operational until April 1, 2004. 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 of $4,700 per month.
PAGE-7-
We recently received our real estate license in Nevada and now
can generate revenues from our planned business broker
activities. We hope to generate revenues through
business valuation and business consulting services. As of
July 17, 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.
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
------------------------------------------------------------------------------
Facilities
---------- Review Buildings and
Locate and sites. September 2003 $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.
------------------------------------------------------------------------------
PAGE-8-
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Personnel Utilizing Nation-List
--------- International,
A)Recruiting International Business September 2003 $1,100
Associates. [1] Brokers
Association.
B)Training
Associates. First Group of Trained
Associates. October 2003 -0-
C)Evaluating
Associates. Review First Group
Associates Results. January 2004 -0-
------------------------------------------------------------------------------
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 August 2003 $600
B)Implement
Operation
Policies and
Procedures.
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Marketing WFG [2]
-------------
A)Finalize Plan. Determine percentage of
various Media. February 2003 -0-
B)Execute Plan Place Ads and Other Completed
Branding WFG Media $5,000
August 2003
------------------------------------------------------------------------------
Clients
-------
(Sellers & Utilizing Wall
Buyers) Street Journal,
BizBuySell.com, Begun June 2003 $1,000
A)Implement International Business
Client Search. Brokers
Association our internal
database.
PAGE-9-
Utilizing I-Market and August 2003 $4,300
B) Implement Other Lists for
Direct Mail which contain
Campaign to information about
businesses set potential business
forth in acquired buyers and sellers.
lists of
potential Working with Sellers
clients. and Buyers To
Structure Deals.
Nevada Real Estate
License obtained -0-
C)Servicing June 5, 2003,
Clients. begun soliciting
businesses to sell
------------------------------------------------------------------------------
Internet
--------
Complete WFG Web Design and Install December 2002
Site. WFG Web Site. Completed
------------------------------------------------------------------------------
Add additional Begin the Marketing and September 2003 $850
services Pages to Selling Business
Website
------------------------------------------------------------------------------
[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
2003 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-10-
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
Based on their most recent evaluation, which was completed as of the end of
the period covered by this periodic report on Form 10-QSB, the Company's Chief
Executive Officer and Chief Financial Officer believe the Company's disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14)
are effective to ensure that information required to be disclosed by the
Company in this report is accumulated and communicated to the Company's
management, including its principal executive officer and principal
financial officer, as appropriate, to allow timely decisions regarding
required disclosure. During the fiscal quarter to which this report relates,
there were no significant changes in the Company's internal controls or other
factors that could significantly affect these controls subsequent to the date
of their evaluation and there were no corrective actions with regard to
significant deficiencies and material weaknesses.
PAGE-11-
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
Item 6. Exhibits
Exhibit Name and/or Identification of Exhibit
Number
-------------------------------------------------------------------
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-12-
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: September 25, 2003
PAGE-13-