UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 10-QSB

 

(Mark One)

[X]

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2007

 

[ ]

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _________________ to _________________

 Commission file number ______________________________

 Pawfect Foods, Inc
(Exact name of small business issuer as specified in its charter)

 

 Florida

(State or other jurisdiction of incorporation or organization)

 20-3823853

(IRS Employer Identification No.) 

 

 

1325 S Congress Ave., Boynton Beach, Florida 33426

(Address of principal executive offices)

 

954-801-3950

(Issuer's telephone number)

__________________________________________________________________
(Former name, former address and former fiscal year, if changed since last report)

 

 

 

 PAWFECT FOODS, INC.

(A DEVELOPMENT STAGE COMPANY)

FINANCIAL STATEMENTS

BALANCE SHEET

MARCH 31, 2007

UNAUDITED

  

ASSETS

 

Current Assets

 

Cash

$ 1,452

 

 

Property Plant & Equipment - Net

3,162

 

 

Total Assets

$4,614

 

 

LIABILITIES AND STOCKHOLDERS EQUITY(DEFIFIENCY)

 

Current Liabilities

Accrued Expenses

$5,000

 

 

Stockholders' Equity

 

 

 

Common Stock, $.0001 par value; 50,000,000 authorized

 

2,181,000 issued and outstanding

2,181

 

Additional Paid in Capital

17,919

Accumulated Deficit during Development Stage

(20,486)

Total Stockholders' Equity (Deficiency)

(386)

Total Liabilities and Stockholders' Equity

$ 4,614

 

 

 

 

 

 

See accompanying notes to financial statements.

 

 

 

 

 

 

 

 

PAWFECT FOODS, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006

AND CUMULATIVELY FROM NOVEMBER 15, 2005 (INCEPTION) to MARCH 31, 2007

(unaudited)

 

 

 

 

 

 

Three Months

Ended

 November 15, 2005 (Inception) to

 

March 31

 

March 31,

 

2007

2006

2007

 

 

 

 

Revenue

$ -

$ -

$ -

 

 

 

 

Operating Expenses

268

4,162

 

20,486

 

 

 

 

Net Income (Loss)

$ (268)

$ (4,162)

$ (20,486)

 

 

 

 

Net Income (Loss) per Common Shares Outstanding - Basic and Diluted

$ (0.00)

$ (0.00)

 

 

 

$ (0.01)

 

 

 

 

Weighted Average of Shares Outstanding

2,181,000

2,181,000

 

2,170,944

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements

 

 

 

 

PAWFECT FOODS, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2007 and 2006

AND CUMULATIVELY FROM NOVEMBER 15, 2005 (INCEPTION) to MARCH 31, 2007

(unaudited)

 

 

Three Months

Ended

 

 

March

 

 

2007

31

 

 

2006

November 15, 2005 (Inception) to March 31, 2007

 

 

 

 

Cash Flows form Operations:

 

 

 

 

 

 

 

Net Income (Loss)

$(268)

$(4,162)

$(20,486)

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

     Depreciation

168

 

224

 

 

 

 

Changes in operating liabilities:

 

 

 

Increase (decrease) in accrued liabilities    

 

 

 

5,000

 

 

 

 

Net Cash (used) by Operating Activities

(100)

(4,162)

 

(15,262)

 

 

 

 

Cash Flow from Financing Activities:

 

 

 

Purchase of Fixed Assets

 

 

(3,386)

 

 

 

 

Net Cash (used) by Investing Activities

-

-

 

(3,386)

 

 

 

 

Cash Flow from Financing Activities

 

 

 

 

 

 

 

Issuance of Common Stock to Founder

-

-

 

2,000

Issuance of Common Stock for Cash

-

-

 

18,100

 

 

 

Net Cash Provided by Financing Activities

-

-

 

20,100

 

 

 

 

Net Increase (Decrease) in Cash

(100)

(4,162)

1,452

 

 

 

 

Cash, Beginning

1,552

20,084

-

Cash, Ending

1,452

15,922

1,452

 

 

 

 

Supplemental Disclosure:

 

 

 

Interest Paid

$ -

$ -

$ -

Taxes Paid

$ -

$ -

$ -

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements.

PAWFECT FOODS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2007

 

NOTE 1 SIGNIFICANT ACCOUNTING POLICIES

                                                          

Organization and Operations

The Company was organized under the laws of the State of Florida on November 15, 2005.

The Company is in the development stage. The Company plans to develop a distribution channel in the pet food industry selling a comprehensive supply of products utilizing the World Wide Web. The Company currently has no operations.

Development Stage

The Company is in its development stage.  The Company since inception (November 15, 2005) has not commenced its full operations, nor has generated sufficient working capital to pursue its business objectives. The accumulated deficit during its development stage is $20,486 at March 31, 2007.

                        Basis of Accounting

The Company's policy is to prepare its financial statements using the accrual basis of accounting in accordance with generally accepted accounting principles. The Company has retained December 31 as its annual year end.

 

 

 

PAWFECT FOODS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2007

 

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and equivalent

Cash and cash equivalent include cash and cash in banks. The company maintains cash and cash equivalent balances at a financial institution that is insured by the federal deposit Insurance Corporations up to $100,000. At December 31, 2006, there is no concentration of credit risk form uninsured bank balances.

Fixed Assets

Fixed assets are recorded at cost. Depreciation is computed on the straight-line method, based on the estimated useful lives of the assets of generally five or ten years. Expenditures for maintenance and repairs are charged to operations as incurred. Depreciation expense was $56 for the year ended December 31, 2006 and $0 for year ended December 31, 2005.

Recent Accounting Pronouncements

In September, the FASB issued SFAS No. 157 Fair Value Measurements ("SFAS No. 157"), which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements, SFAS No. 157 is effective for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years.

In June 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes: An interpretation of FASB Statement No. 109 ("FIN No. 48"). This interpretation clarifies the accounting for uncertainty in income taxes recognized in an entity’s financial

PAWFECT FOODS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2006

statements in accordance with SFAS No. 109. FIN No. 48 prescribes a recognition threshold and measurement principles for the financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. This interpretation is effective for fiscal years beginning after December 15, 2006.

In February 2007, the FASB issued SFAS No., 159, The Fair Value Option for Financial Assets and Financial Liabilities, including an amendment to FASB Statements No. 115 ("SFAS No. 159"), SFAS No. 159 permits entities to choose to measure many financial instruments, and certain other items, at fair value that are not currently required to be measured at fair value, SFAS No. 159 is effective as of the beginning of an entity’s first fiscal year that begins after November 15, 2007, however early adoption is permitted.

Management does not believe that any of the recent issued accounting pronouncements will be applicable to the Company

NOTE 2 Income Taxes

In February 1992, the Financial Standards Board issued Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes". Under SFAS No. 109, deferred assets and liabilities are recognized for the estimated future tax consequences between the financial statement carrying amounts of the existing assets and their respective basis.

Deferred assets and liabilities are measured using enacted tax rates in effect for the year in which temporary differences are expected to be recorded or settled. Under SFAS No. 109 the effect on deferred assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date.

As of December 31, 2006, the Company had net operating losses (NOL's) of approximately $20,218 that expire in 15 years commencing in 2007. 

Statutory federal income taxes

34%

Valuation allowance

(34)

Effective tax rate

0%

   

No tax benefit is being accrued due to no current expectation of profits

PAWFECT FOODS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2007

NOTE 3 CAPITAL TRANSACTIONS

At inception November 15, 2005, 2,000,000 shares of common stock were sold to the founder for $2,000 cash.

In December 2005, the Company offered 181,000 shares of their common stock under Rule 504 of Regulation D and section 4 (2) of the Securities Act. The Common shares were offered at a per share price of $.10 for the aggregate sum of $18,100. All of the thirty two (32) investors were of non-accredited status

 

 

 

 

 

Item 2. Management's Discussion and Analysis or Plan of Operation

 

The Pawfect Foods, Inc.’s business is to become actively engaged in providing an online marketplace for premium and holistic pet     food, via the Internet. Currently we have obtained a domain name called www.Pawfectfoods.com. We have also obtained a web hosting provider, to provide us with the necessary disk space capacity for our website and email capability for the next 12 months. We have also posted our nearly completed e-commerce website, to introduce ourselves to potential customers with a modest array of introductory products. During the next twelve months we plan to satisfy our cash requirement by current cash on hand.

 

 

 

Item 3.    Controls and Procedures

 

In the quarter ended March 31, 2007, we did not make any significant changes in, nor take any corrective actions regarding, our internal controls or other factors that could significantly affect these controls. We periodically review our internal controls for effectiveness and we plan to conduct an evaluation of our disclosure controls and procedures each quarter.

 

 

Item 6. Exhibits

 

Exhibit Number

Document Description

32

Certificate of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-15(e) and 15d-15(e) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31

Certificate of Chief Executive Officer and Chief Financial Officer pursuant to Section 18 U.S.C. Section 1350

 

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

/s/ Charles Monahan
(Registrant)

Date: May 11, 2007

/s/ Charles Monahan___________
(Signature)*

Charles Monahan, President