HEALTH ANTI AGING LIFESTYLE OPTIONS INC - HLOI Quarterly Report of Financial Condition (10QSB) PART I. FINANCIAL INFORMATION

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The following is an excerpt from a 10QSB SEC Filing, filed by HEALTH ANTI AGING LIFESTYLE OPTIONS INC on 8/16/2004.

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HEALTH ANTI AGING LIFESTYLE OPTIONS INC - 10QSB - 20040816 - PART_I

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.

(A Development Stage Company)

BALANCE SHEETS

(Unaudited)

	June 30,	December 31,
As at	2004	2003
	$	$

ASSETS

CURRENT

Cash

56,305

77,675

TOTAL ASSETS

56,305

77,675

LIABILITIES

CURRENT

Accounts payable and accrued liabilities

16,763

21,689

TOTAL LIABILITIES

16,763

21,689

STOCKHOLDERS’ EQUITY

COMMON STOCK
Authorized: 200,000,000 shares, $0.001 par value Issued and outstanding: 11,520,533 shares (December 31, 2003: 11,520,533 shares)	11,521	11,521

ADDITIONAL PAID-IN CAPITAL	4,797,164	4,797,164

DEFICIT ACCUMULATED PRIOR TO NOVEMBER 29, 1989	(213,710)	(213,710)

DEFICIT ACCUMULATED DURING THE DEVELOPMENT STAGE	(4,555,433)	(4,538,989)
TOTAL STOCKHOLDERS’ EQUITY	39,542	55,986
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	56,305	77,675

See accompanying Notes to the Financial Statements

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.

(A Development Stage Company)

STATEMENTS OF OPERATIONS

(Unaudited)


					Cumulative
					From
					Inception of
					Development
					Stage on
	Three Months Ended June 30,		Six Months Ended June 30,		November
					29, 1989 Through
					June 30,
	2004	2003	2004	2003	2004
	$	$	$	$	$

OTHER INCOME	-	-	-	-	201,577

GENERAL AND ADMINISTRATIVE EXPENSES	(7,171)	(30,200)	(16,444)	(36,410)	(1,574,279)

LOSS ON INVESTMENT	-	(33,333)	-	(278,333)	(854,963)

LOSS ON RESCISSION OF SHARE EXCHANGE AGREEMENT	-	-	-	(2,327,768)	(2,327,768)

NET LOSS	(7,171)	(63,533)	(16,444)	(2,642,511)	(4,555,433)

OTHER COMPREHENSIVE INCOME	-	58,333	-	233,333	-

COMPREHENSIVE LOSS	(7,171)	(5,200)	(16,444)	(2,409,178)	(4,555,433)


BASIC LOSS PER SHARE	(0.00)	(0.01)	(0.00)	(0.26)

WEIGHTED AVERAGE NUMBER OF SHARES	11,520,533	6,520,333	11,520,533	10,299,746

See accompanying Notes to the Financial Statements

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.

(A Development Stage Company)

STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

Deficit

Accumulated

Total

Additional

Prior to

During

Stockholders’

Common

Stock

Paid-in

November 29,

Development

Equity

Stock

Amount

Capital

1989

Stage

(Deficiency)

Balance, October 24, 1986

Issue of common stock to officers and

directors at $20.00 per share

250

5,000

Net loss for the year ended

December 31, 1986

Balance, December 31, 1986

250

5,000

Issue of common stock to

public at $1,000.00 per share

150

150,000

Less stock offering cost

(19,880)

Issue of common stock in

exchange for subsidiary

500

Issue of common stock for

services rendered at approximately

$20.00 per share

126

2,527

Issue of common stock by private

placement at $50.00 per share

1,512

75,561

75,563

Net loss for the year ended

December 31, 1987

(176,716)

Balance, December 31, 1987

2,106

213,708

(176,716)

36,994

Net loss for the year ended

December 31, 1988

(36,504)

Balance, December 31, 1988

2,106

213,708

(213,220)

490

Net loss for the year ended

December 31, 1989

(490)

Balance, December 31, 1989

2,106

213,708

(213,710)

Contribution of capital

Net loss for the year ended

December 31, 1990

(727)

Balance, December 31, 1990

2,106

213,743

(213,710)

(727)

(692)

See accompanying Notes to the Financial Statements

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.

(A Development Stage Company)

STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

Deficit

Accumulated

Total

Additional

Prior to

During

Stockholders’

Common

Stock

Paid-in

November 29,

Development

Equity

Stock

Amount

Capital

1989

Stage

(Deficiency)

Balance, December 31, 1990

(carried forward)

2,106

213,743

(213,710)

(727)

(692)

Net loss for the year ended

December 31, 1991

(224)

Balance, December 31, 1991

2,106

213,743

(213,710)

(951)

(916)

Net loss for the year ended

December 31, 1992

(236)

Balance, December 31, 1992

2,106

213,743

(213,710)

(1,187)

(1,152)

Net loss for the year ended

December 31, 1993

(235)

Balance, December 31, 1993

2,106

213,743

(213,710)

(1,422)

(1,387)

Common stock issued for cash and

services at approximately

$1.70 per share

3,534

5,996

6,000

Net loss for the year ended

December 31, 1994

(9,162)

Balance, December 31, 1994

5,640

219,739

(213,710)

(10,584)

(4,549)

Common stock issued for cash

at $20.00 per share

500

9,999

10,000

Forgiveness of debt

4,759

Net loss for the year ended

December 31, 1995

(6,019)

Balance, December 31, 1995

6,140

234,497

(213,710)

(16,603)

4,191

Common stock issued for cash

at $0.20 per share

90,000

17,910

18,000

Common stock issued for cash

at an average of $0.04 per share

4,615,400

4,615

148,846

153,461

Stock issue adjustment

Net loss for the year ended

December 31, 1996

(25,839)

Balance, December 31, 1996

4,711,543

4,712

401,253

(213,710)

(42,442)

149,813

See accompanying Notes to the Financial Statements

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.

(A Development Stage Company)

STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

Common

Stock

Amount

Additional

Paid-in

Capital

Advances

Under

Exchange

Agreement

Deficit

Accumulated

Prior to

November

29,1989

Deficit

Accumulated

During

Development

Stage

Accumulated

Other

Comprehensive

Income

Total

Stockholders’

Equity

(Deficiency)

Balance, December 31, 1996 (carried forward)

4,711,543

4,712

401,253

(213,710)

(42,442)

149,813

Net loss for the year ended

December 31, 1997

(188,917)

Balance, December 31, 1997

4,711,543

4,712

401,253

(213,710)

(231,359)

(39,104)

Net loss for the year ended

December 31, 1998

(226,743)

Balance, December 31, 1998

4,711,543

4,712

401,253

(213,710)

(458,102)

(265,847)

Net loss for the year ended

December 31, 1999

(420,608)

Balance, December 31, 1999

4,711,543

4,712

401,253

(213,710)

(878,710)

(686,455)

Issue of common stock to

public at $16.00 per share

250,000

250

3,999,750

4,000,000

Net loss for the year ended

December 31, 2000

(192,540)

Balance, December 31, 2000

4,961,543

4,962

4,401,003

(213,710)

(1,071,250)

3,121,005

Fractional share adjustment

357

Advances in year

Net loss for the year ended

December 31, 2001

(500, 000)

(137,987)

(500,000)

(137,987)

Balance, December 31, 2001

4,961,900

4,962

4,401,003

(500, 000)

(213,710)

(1,209,237)

2,483,018

Issue of common stock

under share exchange

agreement

11,614,133

11,614

(11,614)

Technology agreement at

$1.00 per share

150,000

150

149,850

150,000

Stock options granted to

non-employees

202,720

Advances in year

(1,797,768)

Net loss for the year ended

December 31, 2002

(523,211)

Other comprehensive loss

(350,000)

Balance, December 31, 2002

16,726,033

16,726

4,741,959

(2,297,768)

(213,710)

(1,732,448)

(350,000)

164,759

See accompanying Notes to the Financial Statements

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.

(A Development Stage Company)

STATEMENT OF STOCKHOLDERS’ EQUITY

(Unaudited)

Common

Stock

Amount

Additional

Paid-in

Capital

Advances

Under

Exchange

Agreement

Deficit

Accumulated

Prior to

November

29,1989

Deficit

Accumulated

During

Development

Stage

Accumulated

Other

Comprehensive

Income

Total

Stockholders’

Equity

(Deficiency)

Balance, December 31, 2002

(carried forward)

16,726,033

16,726

4,741,959

(2,297,768)

(213,710)

(1,732,448)

(350,000)

164,759

Advances in year

(30,000)

Issuance of common stock at

a price of $0.01 per share

5,000,000

5,000

45,000

50,000

Rescission of share

exchange agreement

(10,200,500)

(10,205)

10,205

2,327,768

Net loss for the year ended

December 31, 2003

(2,806,541)

Other comprehensive income

350,000

Balance, December 31, 2003

11,520,533

11,521

4,797,164

(213,710)

(4,538,989)

55,986

Net loss for the period ended

June 30, 2004

(16,444)

Balance, June 30, 2004

11,520,533

11,521

4,797,164

(213,710)

(4,555,433)

39,542

See accompanying Notes to the Financial Statements

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.

(A Development Stage Company)

STATEMENTS OF CASH FLOWS

(Unaudited)


			Cumulative
			From
			Inception of
			Development
			Stage on
	For the	For the	November
	Six Months Ended	Six Months Ended	29, 1989 Through
	June 30,	June 30,	June 30,
	2003	2003	2004
OPERATING ACTIVITIES	$	$	$
Loss from operations	(16,444)	(2,642,511)	(4,555,433)

Adjustments to reconcile net loss to net cash used in operating activities:
- Forgiveness of debt	-	-	4,759
- Amortization of discount on note receivable	-	-	(20,212)
- Stock issued for services	-	-	352,720
- Loss on sale of investment in development stage company	-	278,333	420,000
- Loss on rescission of share exchange agreement	-	2,297,768	2,297,768

Changes in operating assets and liabilities:
- (Decrease) Increase in accounts payable	(4,926)	23,242	16,763
- Increase in allowance for loss on notes receivable	-	-	502,321
- Increase in accrued interest on notes receivable	-	-	(58,022)

Net cash used in operating activities	(21,370)	(43,168)	(1,039,336)

INVESTING ACTIVITIES
Advances under notes receivable	-	-	(424,087)
Investment in development stage company	-	-	(500,000)
Proceeds from sale of shares in development
stage company	-	55,000	80,000
Advances on share exchange agreement	-	-	(2,297,768)
Net cash (used in) provided by investing activities	-	55,000	(3,141,855)

FINANCING ACTIVITIES
Cash contributed to additional paid-in capital	-	-	35
Issuance of common stock	-	-	4,237,461

Net cash provided by financing activities	-	-	4,237,496

(DECREASE) INCREASE IN CASH	(21,370)	11,832	56,305

CASH AT BEGINNING OF PERIOD	77,675	28,515	-

CASH AT END OF PERIOD	56,305	40,347	56,305

See accompanying Notes to the Financial Statements

HEALTH ANTI-AGING LIFESTYLE OPTIONS, INC.

(A Development Stage Company)

NOTES TO THE FINANCIAL STATEMENTS

(Unaudited)

June 30, 2004

NOTE 1 – BASIS OF PRESENTATION

These unaudited financial statements have been prepared in accordance with the instructions to SEC Form 10-QSB. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such instructions. These unaudited financial statements should be read in conjunction with the audited financial statements and notes thereto as at December 31, 2003.

In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation of these unaudited financial statements have been included and all such adjustments are of a normal recurring nature. Operating results for the six month period ended June 30, 2004 are not necessarily indicative of the results that can be expected for the year ended December 31, 2004.

NOTE 2 – GOING CONCERN

The Company is in the development stage. It has no revenue other than interest income and has accumulated losses during the development stage of $4,555,433. Until a business is acquired or developed and a self-sustaining level of operations is attained, any future financing will likely involve the further issuance of capital stock. The Company’s financial statements were prepared using generally accepted accounting principles applicable to a going concern which contemplate the realization of assets and discharge of liabilities in the normal course of business. Management intends to secure additional financing through the issuance of stock. However, there can be no assurance that management will be successful in its efforts to secure additional financing through the issuance of common stock, or that it will ever develop a business which is self supporting. Such limitations could have a material adverse effect on the Company’s financial condition or operations, and these financial statements do not include any adjustments that could result therefrom. These factors together raise substantial doubt about its ability to continue as a going concern.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.

This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of our report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

The Company was incorporated under the laws of Utah as Daur & Shaver, Inc. on October 24, 1986. On August 31, 1987, the Company completed the acquisition of all of the outstanding common shares of Western Antenna Research, Inc. a Colorado corporation. The Company’s name was subsequently changed to Western Antenna Corporation. After two years of unsuccessful operations Western Antenna Research, Inc. was abandoned, the name of the Company was changed to Hortitech, Inc. and the Company was reclassified as a development stage enterprise on November 29, 1989. Subsequently, the name of the Company was changed to MicroAccel, Inc. on February 2, 2000.

Effective February 28, 2002, the Company issued 11,614,133 common shares to acquire 99.65% of the outstanding common stock of Network Lifestyle Radio Corp. (“NLR”). The share exchange was on a one share for one share basis. The Company subsequently changed its name from MicroAccel to Health Anti-Aging Lifestyle Options, Inc.

On March 31, 2003, the Company completed Compromise and Settlement Agreements to rescind certain Share Exchange Agreements entered into with former shareholders of NLR. The transactions resulted in the Company transferring and delivering directly and indirectly 5,452,500 common shares in NLR to former directors and executive officers of the Company, who were also prior shareholders of NLR; 4,981,500 common shares in NLR to prior shareholders of NLR and 1,180,133 common shares in NLR to NLR’s treasury on behalf of the 22 former NLR shareholders who did not participate in the rescission. The Company received from the former shareholders of NLR an aggregate of 10,205,500 shares of its own common stock, which the Company cancelled.

Plan of Operation

On March 31, 2003, the Company rescinded its acquisition of Network Lifestyle Radio Corp.

The Company continues to explore new business opportunities. The Company has not identified any new business opportunities and has no agreements related to such opportunities. The Company’s plan of operation is to: (i) consider guidelines of industries in which the Company may have an interest; (ii) adopt a business plan regarding engaging in business in any selected industry; (iii) commence such operations through funding and/or the acquisition of a “going concern” engaged in any industry selected.

Results of Operations

For the quarter just ended, much of the Company’s resources were directed at locating new business opportunities. To date, the Company has not identified any new business opportunities and has no agreements related to such opportunities.

For the six-month period ended June 30, 2004, the Company recorded a net loss of $16,444.

The Company spent $16,444 in general and administrative expenses as compared to $36,410 for the same six-month period ended June 30, 2003.

Liquidity and Capital Resources

As of June 30, 2004 the Company had cash resources of $56,305 against total liabilities of $16,763 for a working capital position of $39,542.

During the next twelve months, the Company’s only foreseeable cash requirements will relate to maintaining the Company in good standing or the payment of expenses associated with reviewing or investigating any potential business ventures. We believe we have sufficient funds to meet our cash requirements for the next twelve months.

ITEM 3.

CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s Securities Exchange Act of 1934 reports is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive and Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

As of the end of the period, the Company’s management carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive and Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based upon the foregoing, the Company’s Chief Executive and Financial Officer concluded that the Company’s disclosure controls and procedures are effective in connection with the filing of the Quarterly Report on Form 10-QSB for the quarter ended June 30, 2004.

There were no significant changes in the Company’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any significant deficiencies or material weaknesses of internal controls that would require corrective action.