[X] |
ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
[ ] |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 |
Florida
(State or other jurisdiction of
incorporation or organization)
|
33-0961490
(I.R.S. Employer
Identification No.) |
22342 Avenida Empresa, Suite 220
Rancho Santa Margarita, CA
(Address of principal executive offices) |
92688
(Zip Code) |
PART I |
3 | |
ITEM 1 |
DESCRIPTION OF BUSINESS |
3 |
ITEM 2 |
DESCRIPTION OF PROPERTY |
7 |
ITEM 3 |
LEGAL PROCEEDINGS |
7 |
ITEM 4 |
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS |
7 |
PART II |
8 | |
ITEM 5 |
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS |
8 |
ITEM 6 |
MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION |
9 |
ITEM 7 |
FINANCIAL STATEMENTS |
13 |
ITEM 8 |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE |
14 |
ITEM 8A |
DISCLOSURE CONTROLS AND PROCEDURES |
14 |
ITEM 8B |
OTHER INFORMATION |
14 |
PART III |
15 | |
ITEM 9 |
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS,
COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT |
15 |
ITEM 10 |
EXECUTIVE COMPENSATION |
16 |
ITEM 11 |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT |
18 |
ITEM 12 |
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS |
20 |
ITEM 13 |
EXHIBITS AND REPORTS ON FORM 8-K |
20 |
ITEM 14 |
PRINCIPAL ACCOUNTANTS FEES AND SERVICES |
21 |
|
|
December
31, 2004 |
September
30, 2004 |
Change |
||||||
Cash |
$ |
17,403 |
$ |
18,653 |
$ |
(1,250 |
) | |||
Total
current assets |
17,403 |
18,653 |
(1,250 |
) | ||||||
Total
assets |
17,403 |
18,653 |
(1,250 |
) | ||||||
Total
current liabilities |
9,324 |
5,900 |
3,424 |
|||||||
Total
liabilities |
9,324 |
5,900 |
3,424 |
Index
to Financial Statements |
|
Report
of Independent Certified Public Accountants |
F-1 |
Balance
Sheet |
F-2 |
Statement
of Operations |
F-3 |
Statement
of Stockholders Equity |
F-4 |
Statement
of Cash Flows |
F-5 |
Notes
to Financial Statements |
F-6 |
Name |
Age |
Position(s) | ||
Carl
M. Berg |
35 |
Chairman
of the Board, President, Secretary, and Treasurer
(2001) | ||
Kevin
J. Gadawski |
37 |
Director
(2003) | ||
Mark
Stewart |
37 |
Director
(2003) |
Annual Compensation |
Long Term Compensation | |||||||||
Awards |
Payouts | |||||||||
Name and
Principal Position |
Year |
Salary
($) |
Bonus
($) |
Other Annual
Compensation
($) |
Restricted Stock
Awards
($) |
Securities Underlying Options SARs
(#) |
LTIP Payouts
($) |
All Other
Compensation
($) | ||
Carl M. Berg |
2004 |
-0- |
-0- |
$-0- |
-0- |
-0- |
-0- |
-0- | ||
Chairman,
President, Secretary, Treasurer |
2003 |
-0- |
-0- |
$6,000 (1) |
-0- |
-0- |
-0- |
-0- | ||
Kevin J. Gadawski |
2004 |
-0- |
-0- |
$5,000
(2) |
-0- |
-0- |
-0- |
-0- | ||
Director |
2003 |
-0- |
-0- |
$5,000 |
-0- |
-0- |
-0- |
-0- | ||
Mark Stewart |
2004 |
-0- |
-0- |
$-0- |
-0- |
-0- |
-0- |
-0- | ||
Director |
2003 |
-0- |
-0- |
$-0- |
-0- |
-0- |
-0- |
-0- | ||
(1) |
This
amount was accrued until March 26, 2004, when Mr. Berg elected to
forgive all amounts owed to him, as well as any future salary until
further notice. |
(2) |
As
of December 31, 2004, Mr. Gadawski received $2,500 of this amount. The
other $2,500 has been accrued. |
OPTION/SAR GRANTS IN LAST FISCAL YEAR
(Individual Grants) | ||||
Name |
Number of Securities
Underlying
Options/SARs Granted
(#) |
Percent of Total
Options/SARs Granted
to Employees In Fiscal
Year |
Exercise or Base Price
($/Sh) |
Expiration Date |
Carl M. Berg |
-0- |
N/A |
N/A |
N/A |
Kevin J. Gadawski |
-0- |
N/A |
N/A |
N/A |
Mark Stewart |
-0- |
N/A |
N/A |
N/A |
AGGREGATED
OPTIONS/SAR EXERCISES IN LAST FISCAL YEAR
AND
FY-END OPTION/SAR VALUES | ||||
Name |
Shares
Acquired On
Exercise
(#) |
Value
Realized
($) |
Number
of Unexercised
Securities
Underlying
Options/SARs
at FY-End
(#)
Exercisable/Unexercisable |
Value
of Unexercised
In-The-Money
Option/SARs
at
FY-End
($)
Exercisable/Unexercisable |
Carl
M. Berg |
N/A |
N/A |
N/A |
N/A |
Kevin
J. Gadawski |
N/A |
N/A |
N/A |
N/A |
Mark
Stewart |
N/A |
N/A |
N/A |
N/A |
Percentage of Common | ||||||
Name and Address (1) |
Nature of Affiliation |
Common Stock Ownership |
Stock Ownership (2) | |||
Carl M. Berg |
Chairman of the Board, President, Secretary and
Treasurer |
5,550,000 (3) |
86.9% | |||
Brian A. Lebrecht (4) |
5% Shareholder |
450,000 |
7.0% | |||
Kevin J. Gadawski |
Independent Director |
300,500 (5)(6) |
4.4% (5) | |||
Mark Stewart |
Independent Director |
300,000
(5) |
4.4% (5) | |||
All Officers and Directors as a Group
(3 Persons) |
6,150,500 (3)(5)(6) |
88% (5) |
(1) |
Unless
stated otherwise, the address of each affiliate is c/o M-GAB Development
Corporation, 22342 Avenida Empresa, Suite 220, Rancho Santa Margarita, CA
92688. |
(2) |
Unless otherwise indicated, based on 6,383,845 shares of common
stock issued and outstanding. Shares of common stock subject to options or
warrants currently exercisable, or exercisable within 60 days, are deemed
outstanding for purposes of computing the percentage of the person holding
such options or warrants, but are not deemed outstanding for purposes
of computing the percentage of any other person.
|
(3) |
Includes 3,000,000 shares held of record by Sadie, LLC, an entity
wholly-owned and controlled by Mr. Berg. Mr. Berg is our sole
officer. |
(4) |
Mr. Lebrecht is President of The Lebrecht Group, APLC, which serves
as our securities counsel. |
(5) |
Includes options to acquire 300,000 shares of common stock
which will be granted to each of Mr. Gadawski and Mr. Stewart upon
approval by the Commission in compliance with the Investment
Company Act of 1940. |
(6) |
Includes 500 shares held by Mr. Gadawski’s
spouse. |
3.1(1) |
Articles
of Incorporation of M-GAB Development Corporation | |
3.2
(1) |
Bylaws
of M-GAB Development Corporation | |
10.1 |
M-GAB
Development Corporation Amended and Restated 2001 Omnibus Securities
Plan | |
10.2 |
M-GAB
Development Corporation 2004 Omnibus Securities Plan | |
31.1 |
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer | |
31.2 |
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer | |
32.1 |
Chief
Executive Officer Certification Pursuant to 18 USC, Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002. | |
32.2 |
Chief
Financial Officer Certification Pursuant to 18 USC, Section 1350, as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002. |
(1) |
Incorporated
by reference from our Registration Statement on Form SB-2 filed with the
Commission on August 31, 2001. |
M-GAB Development Corporation | ||
|
|
|
Date: March 15, 2005 | By: | /s/ Carl M. Berg |
Carl M. Berg | ||
Its: President, Chief Executive Officer, Chief Financial Officer |
Dated: March
15, 2005 |
/s/ Carl M.
Berg |
By: Carl
M. Berg, Director | |
Dated: March
15, 2005 |
/s/ Kevin J.
Gadawski |
By: Kevin
J. Gadawski, Director | |
Dated: March
15, 2005 |
/s/ Mark
Stewart |
By: Mark
Stewart, Director |
To: |
The Board of Directors of |
2004 |
2003 |
||||||
ASSETS |
|||||||
Current assets |
|||||||
Cash |
$ |
17,403 |
$ |
- |
|||
Total assets |
$ |
17,403 |
$ |
- |
|||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities |
|||||||
Accounts payable and accrued liabilities |
$ |
9,324 |
$ |
93,105 |
|||
Payable to stockholder |
-
|
10,000
|
|||||
Total current liabilities |
9,324
|
103,105
|
|||||
Commitments and contingencies |
-
|
-
|
|||||
Stockholders' equity: |
|||||||
Preferred stock, $0.001 par value; |
|||||||
5,000,000 shares authorized; No shares |
|||||||
issued or outstanding |
-
|
-
|
|||||
Common stock, $0.001 par value; 100,000,000 |
|||||||
shares
authorized; 6,383,845 and 6,023,000 shares issued |
|||||||
and
outstanding in 2004 and 2003, respectively |
6,384
|
6,023
|
|||||
Additional paid in capital |
64,840
|
11,076
|
|||||
Deficit accumulated during the development stage |
(63,145 |
) |
(120,204 |
) | |||
Total stockholders' equity |
8,079 |
(103,105 |
) | ||||
Total liabilities and stockholders' equity |
$ |
17,403 |
$ |
- |
|||
Cumulative from inception (March 27, 2001) through December
31, 2004 |
|
Year
ended December 31, 2004 |
Year
ended December 31, 2003 |
|||||||
Revenue |
$ |
- |
$ |
- |
$ |
- |
||||
General
and administrative expenses |
146,500 |
26,296 |
63,253
|
|||||||
Other
income (expense) |
83,355 |
83,355 |
- | |||||||
Net
income (loss) |
$ |
(63,145 |
) |
$ |
57,059 |
$ |
(63,253 |
) | ||
Basic
and diluted net income (loss) per share |
$ |
0.01 |
$ |
(0.01 |
) | |||||
Weighted
average shares outstanding |
6,321,699
|
6,023,000
|
||||||||
Common Stock |
Additional Paid-in |
Deficit
Accumulated During the Development |
||||||||||||||||||||
|
Shares |
Amount |
Capital |
Stage |
Total |
|||||||||||||||||
Issuance of common stock to |
||||||||||||||||||||||
founders on April 20, 2001 |
6,000,000
|
$ |
6,000 |
$ |
(5,400 |
) |
$ |
- |
$ |
600 |
||||||||||||
Issuance of common stock for |
||||||||||||||||||||||
cash in August 2001 |
13,000
|
13
|
1,287
|
-
|
1,300
|
|||||||||||||||||
Contributed capital-services |
-
|
-
|
14,199
|
-
|
14,199
|
|||||||||||||||||
Net loss |
-
|
-
|
-
|
(19,575 |
) |
(19,575 |
) | |||||||||||||||
Balance, December 31, 2001 |
6,013,000
|
6,013
|
10,086
|
(19,575 |
) |
(3,476 |
) | |||||||||||||||
Issuance of common stock for |
||||||||||||||||||||||
cash in September 2002 |
10,000
|
10
|
990
|
-
|
1,000
|
|||||||||||||||||
Net loss |
-
|
-
|
-
|
(37,376 |
) |
(37,376 |
) | |||||||||||||||
Balance, December 31, 2002 |
6,023,000
|
6,023
|
11,076
|
(56,951 |
) |
(39,852 |
) | |||||||||||||||
Net loss |
-
|
-
|
-
|
(63,253 |
) |
(63,253 |
) | |||||||||||||||
Balance, December 31, 2003 |
6,023,000
|
$ |
6,023 |
$ |
11,076 |
$ |
(120,204 |
) |
$ |
(103,105 |
) | |||||||||||
Issuance of common stock for cash in March 2004 |
360,845
|
361
|
46,547 |
-
|
46,908 |
|||||||||||||||||
Issuance of stock warrants in |
||||||||||||||||||||||
connection with sale of stock |
-
|
-
|
7,217 |
-
|
7,217 | |||||||||||||||||
Net income |
-
|
-
|
-
|
57,059 |
57,059 |
|||||||||||||||||
Balance, December 31, 2004 |
6,383,845
|
$ |
6,384 |
$ |
64,840 |
$ |
(63,145 |
) |
$ |
8,079 |
Cumulative
from inception (March 27, 2001) to December 31, 2004 |
Year
ended December 31, 2004 |
Year
ended December 31, 2003 |
||||||||
Cash
flows from operating activities: |
||||||||||
Net
income (loss) |
$ |
(63,145 |
) |
$ |
57,059 |
$ |
(63,253 |
) | ||
Adjustments
to reconcile net loss to cash used in |
||||||||||
operating
activities: |
||||||||||
Contributed
capital for services rendered |
14,199
|
-
|
-
|
|||||||
Forgiveness
of debt |
(83,355 |
) |
(83,355 |
) |
-
|
|||||
Increase
(decrease) in accounts payable and |
||||||||||
accrued
liabilities |
82,679 |
(10,426 |
) |
56,816
|
||||||
Net
cash used by operating activities |
(49,622 |
) |
(36,722 |
) |
(6,437 |
) | ||||
Cash
flows from financing activities: |
||||||||||
Proceeds
from issuance of stock |
57,025
|
54,125
|
-
|
|||||||
Advance
from shareholder |
10,000
|
-
|
-
|
|||||||
Net
cash provided by financing activities |
67,025
|
54,125
|
-
|
|||||||
Net
increase (decrease) in cash |
17,403 |
17,403 |
(6,437 |
) | ||||||
Cash and cash equivalents, beginning of period |
-
|
-
|
6,437
|
|||||||
Cash
and cash equivalents, end of period |
$ |
17,403 |
$ |
17,403 |
$ |
- |
||||
1. |
NATURE OF OPERATIONS AND ACCOUNTING
POLICIES |
1. |
NATURE OF OPERATIONS AND ACCOUNTING POLICIES -
Continued |
2. | GOING CONCERN |
3. |
STOCKHOLDERS'
EQUITY |
4. | INCOME (LOSS) PER SHARE |
For the Years Ended December 31, |
|||||||
2004 |
2003 |
||||||
Income
(loss) from continuing operations available to common shareholders
(numerator) |
$ |
57,059 |
$ |
(63,253 |
) | ||
Weighted average number of common shares outstanding used in
loss per share during the period (denominator) |
|
6,321,699 |
|
6,023,000 |
|||
5. | INCOME TAXES |
6. |
RELATED PARTY
TRANSACTIONS |