8-K 1 doc1.txt MYPLAN USA, INC. (A DEVELOPMENT STAGE COMPANY) FINANCIAL STATEMENTS AUGUST 31, 2001 INDEX PAGE -------------- REPORT OF INDEPENDENT CHARTERED ACCOUNTANTS 1 FINANCIAL STATEMENTS Balance Sheet 2 Statement of Operations 3 Statement of Stockholders' Equity (Deficiency) 4 Statement of Cash Flows 5 Notes to Financial Statements 6-7 1 1 1 REPORT OF INDEPENDENT CHARTERED ACCOUNTANTS TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF MYPLAN USA, INC. (A DEVELOPMENT STAGE COMPANY) We have audited the balance sheet of MyPlan USA, Inc. (A Development Stage Company) as at August 31, 2001 and the statement of operations, stockholders' equity and cash flow for the period from the date of incorporation, August 2, 2001 to August 31, 2001. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform an audit to obtain reasonable assurance 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 audit provides 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 MyPlan USA, Inc. (A Development Stage Company), as at August 31, 2001 and the results of its operations and its cash flows for the period from the date of incorporation, August 2, 2001 to August 31, 2001 in accordance with generally accepted accounting principles in the United States of America. The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in note 1 to the financial statements, the Company has not generated any revenues since inception. These factors raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. "Pannell Kerr Forster" Chartered Accountants Vancouver, Canada October 5, 2001 2 2 4 See notes to financial statements.

3 3

4 4

The 50,000 shares issued to acquire VJG4, Inc. are "restricted securities" subject to Rule 144 of the Securities Act of 1933. 5 5 7

6 6 MYPLAN USA, INC. (A DEVELOPMENT STAGE COMPANY) NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2001 (U.S. DOLLARS) 1. ORGANIZATION AND NATURE OF OPERATIONS The Company was incorporated August 2, 2001 under the laws of the State of Nevada. The objective of the Company is to provide pre-production and post-production services to the animation industry. On August 20, 2001 the Company acquired all of the outstanding shares of common stock of VJG4, Inc. for 50,000 shares of the Company assigned their par value of $50 and for $40,000 and then merged with VJG4, Inc. Following the merger, all VJG4, Inc. shares of common stock were cancelled. VJG4, Inc. was a development stage company and had no operations to the date of the merger other than organizational and administrative activities. The cash payment of $40,000 was expensed as amalgamation cost. With effect from August 21, 2001, VJG4, Inc. ceased to exist and all of its assets and liabilities became those of the Company. As a result, the Company's financial statements at August 31, 2001 present the financial position of the consolidated entity formed by the merger of August 20, 2001. At the date of acquisition VJG4, Inc. had no assets, had liabilities of $12,335 and an accumulated deficit of $12,540. The Company is a development stage company. The ability of the Company to emerge from the development stage with respect to its planned principal business activity is dependent upon its successful efforts to raise additional equity financing. There is no guarantee that the Company will be able to raise any equity financing. There is substantial doubt regarding the Company's ability to continue as a going concern. The Company intends to obtain additional capital from third parties to finance its involvement in the animation industry. 2. SIGNIFICANT ACCOUNTING POLICIES (a) Other comprehensive income (loss) The Company may, in the future, have other comprehensive income (loss) arising from foreign currency translation. (b) Net loss per share Net loss per share calculations are based on the weighted average number of common shares outstanding during the reporting period. (c) 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 amount of assets and liabilities and disclosures 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 and would impact future results of operations and cash flows. 7 7 MYPLAN USA, INC. (A DEVELOPMENT STAGE COMPANY) NOTES TO FINANCIAL STATEMENTS AUGUST 31, 2001 (U.S. DOLLARS) 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) (d) Common stock issued for services The Directors of the Company determined that $19,660 was the fair market value of services received by the Company from contractors. (e) Financial instruments The Company's financial instruments consist of cash, accounts payable and due to stockholders. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments. The fair value of these financial instruments approximates their carrying value. 3. INCOME TAXES The Company has operating losses, which may be carried forward to apply against future years' taxable income. The tax effect has not been recorded in these financial statements. The components of future income tax assets are as follows:

Net operating losses for U.S.A. income tax purposes expire in the year 2022. 8

MYPLAN USA INC 8-K