UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
ý 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
o 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: 0-08962
KENILWORTH SYSTEMS CORPORATION
(Exact name of registrant as specified in its charter)
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New York |
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13-2610105 |
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(State of incorporation) |
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(I.R.S. employer identification no.) |
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185 Willis Avenue, Mineola, New York |
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11501 |
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(Address of principal executive offices) |
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(Zip Code) |
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(516) 741-1352
(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 ý No o
State the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practical date
The number of shares of common stock, $.01 par value of the Registrant outstanding as of August 1, 2003 was: 121,322,757
KENILWORTH SYSTEMS CORPORATION
INDEX TO FORM 10-Q
PART I.
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
KENILWORTH SYSTEMS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
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June 30 |
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December
31 |
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(unaudited) |
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ASSETS |
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Cash |
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$ |
42,221 |
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$ |
10,071 |
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Prepaid expenses |
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121,107 |
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232,544 |
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Due from sale of Convertible Note |
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100,000 |
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— |
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Property, Plant and Equipment, Net |
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16,072 |
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13,263 |
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279,400 |
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$ |
255,878 |
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Patent Acquisition Cost |
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2,500,000 |
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— |
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TOTAL ASSETS |
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$ |
2,779,400 |
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$ |
255,878 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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Accrued Liabilities |
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$ |
128,440 |
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$ |
93,883 |
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Payroll Taxes Payable |
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5,600 |
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13,575 |
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Notes Payable within one year |
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128,196 |
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— |
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Notes Payable after one year (auto) |
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10,065 |
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— |
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TOTAL LIABILITIES |
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$ |
272,301 |
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$ |
107,458 |
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Common Stock, $.01 par value, authorized 200,000,000 shares; issued and outstanding 89,304,589 in December 31, 2002 and 121,322,757 issued or to be issued on June 30, 2003 |
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$ |
1,213,227 |
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$ |
893,045 |
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Paid in capital |
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27,603,560 |
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24,872,604 |
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Deficit |
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(26,309,688 |
) |
(25,617,229 |
) |
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TOTAL STOCKHOLDERS’ EQUITY |
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$ |
2,507,099 |
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$ |
148,420 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
2,779,400 |
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$ |
255,878 |
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See accompanying notes.
2
KENILWORTH SYSTEMS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATION AND DEFICIT
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Three-Months
Ended |
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Six-Months
Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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(unaudited) |
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Revenues: |
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Sales |
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0 |
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0 |
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0 |
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0 |
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Costs and Expenses: |
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0 |
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0 |
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0 |
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0 |
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Selling, general and administrative expenses |
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$ |
138,984 |
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$ |
69,167 |
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$ |
692,459 |
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$ |
107,709 |
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Total Costs and Expenses |
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138,984 |
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69,167 |
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692,459 |
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107,709 |
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Net income (loss) before other income and (losses) |
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(138,984 |
) |
(69,167 |
) |
(692,459 |
) |
(107,709 |
) |
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Net income (loss) |
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(138,984 |
) |
(69,167 |
) |
(692,459 |
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(107,709 |
) |
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Deficit-Beginning of period |
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(26,170,704 |
) |
(24,995,482 |
) |
(25,617,229 |
) |
(24,956,940 |
) |
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Deficit-End of of period |
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(26,309,688 |
) |
(25,064,649 |
) |
(26,309,688 |
) |
(25,064,649 |
) |
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Earnings (Loss) per Share of common stock (Note 4) |
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0 |
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0 |
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0 |
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0 |
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Average number of shares outstanding |
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121,322,757 |
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75,285,048 |
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121,322,757 |
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75,285,048 |
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See accompanying notes.
3
KENILWORTH SYSTEMS CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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Six-month
ended |
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2003 |
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2002 |
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(unaudited) |
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(unaudited) |
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CASH FLOWS USED IN OPERATING ACTIVITIES |
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Net Loss |
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$ |
(692,459 |
) |
$ |
(107,709 |
) |
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Adjustments to reconcile net income to net cash used in operating activities |
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Depreciation |
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1,328 |
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2,288 |
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Increase in receiveables |
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0 |
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3,000 |
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Increase(Decrease) in accrued liabilities |
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19,826 |
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27,553 |
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TOTAL ADJUSTMENTS NET CASH USED IN OPERATING ACTIVITIES |
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(671,305 |
) |
74,865 |
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Cash flows from Investing Activities |
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Purchase of Equipment |
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$ |
(13,461 |
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