U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2002
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to __________
CONCIERGE TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Commission File No. 000-29913
State of Incorporation: California
IRS Employer I.D. Number: 95-4442384
22048 Sherman Way, Suite 303
Canoga Park, CA 91303
818-610-0310
-------------------------------------------------------
(Address and telephone number of registrant's principal
executive offices and principal place of business)
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 twelve 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 [X] No [ ]
As of November 1, 2002, there were 126,292,749 shares of the Registrant's
Common Stock, $0.001 par value, outstanding.
Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Page
Balance Sheet September 30, 2002 (Unaudited) 3
Statements of Operations Three Month Periods Ended
September 30, 2002 and 2001 and the
Period from September 20, 1996 (Inception) to
September 30, 2002 (Unaudited) 4
Statements of Cash Flows Periods Ended September 30, 2002
and 2001 and the Period from September 20, 1996 (Inception)
to September 30, 2002 (Unaudited) 5
Notes to Unaudited Financial Statements 6
2
CONCIERGE TECHNOLOGIES, INC.
(A development stage company)
BALANCE SHEET
SEPTEMBER 30, 2002
(Unaudited)
ASSETS
------
CURRENT ASSETS:
Cash & cash equivalents $ 2,313
Prepaid Expenses 245,800
-----------
Total current assets 248,113
EQUIPMENT, net 486
-----------
$ 248,599
===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
-------------------------------------
CURRENT LIABILITIES:
Accrued expenses $ 355,760
Loans Payable-Shareholders 313,208
-----------
Total current liabilities 668,968
SUBSCRIPTIONS RECEIVED FOR COMMON STOCK
SUBJECT TO CONTINGENCY 1,663,290
COMMON STOCK ISSUED SUBJECT TO CONTINGENCY 266,610
STOCKHOLDERS' DEFICIT:
Preferred stock, par value $.001 per share;
10,000,000 shares authorized; none issued -
Common stock, $0.001 par value; 190,000,000 shares
authorized; issued and outstanding 126,292,749 126,293
Additional paid in capital 296,726
Deficit accumulated during the development stage
(2,773,288)
-----------
Total stockholders' deficit (2,350,269)
-----------
$ 248,599
===========
The accompanying notes are an integral part of these financial statements.
3
CONCIERGE TECHNOLOGIES, INC.
(A development stage company)
STATEMENTS OF OPERATIONS
THREE MONTH PERIODS ENDED SEPTEMBER 30, 2002 AND 2001 AND
THE PERIOD FROM SEPTEMBER 20, 1996 (INCEPTION) TO SEPTEMBER 30, 2002
(Unaudited)
Three month periods ended September 20,
September 30, September 30, 1996 (Inception)
2002 2001 to Sept. 30, 2002
------------- ------------- -----------------
REVENUE $ - $ - $ -
COSTS AND EXPENSES
Product launch Expenses - - 1,077,785
General & Administrative Expenses 13,923 4,105 1,328,976
------------ ------------ -----------
TOTAL COSTS AND EXPENSES 13,923 4,105 2,406,761
OTHER INCOME/(EXPENSES)
Settlement income, net - - 52,600
Litigation settlement - - (135,000)
------------ ------------ -----------
TOTAL OTHER INCOME/(EXPENSES) - - (82,400)
------------ ------------ -----------
NET LOSS BEFORE INCOME TAXES (13,923) (4,105) (2,489,161)
Provision of Income Taxes 800 800 5,600
------------ ------------ -----------
NET LOSS $ (14,723) $ (4,905) $(2,494,761)
============ ============ ===========
WEIGHTED AVERAGE SHARES OF COMMON
STOCK OUTSTANDING, BASIC AND DILUTED 124,602,498 120,057,713
============ ============
BASIC AND DILUTED NET LOSS PER SHARE $ (0.000) $ (0.000)
============ ============
The accompanying notes are an integral part of these financial statements.
4
CONCIERGE TECHNOLOGIES, INC.
(A development stage company)
STATEMENTS OF CASH FLOWS
PERIODS ENDED SEPTEMBER 30, 2002 AND 2001 AND
THE PERIOD FROM SEPTEMBER 20, 1996 (INCEPTION) TO SEPTEMBER 30, 2002
(Unaudited)
Sept. 20, 1996
Sept. 30, Sept. 30, (inception) to
2002 2001 Sept. 30, 2002
--------- --------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(14,723) $ (4,905) $(2,494,761)
Adjustments to reconcile net loss
to net cash used in
operating activities:
Depreciation and amortization 417 517 12,424
Stock issued for services - - 126,405
Stock to be issued for services - - 153,947
Increase in current assets:
Prepaid Expenses - - (245,800)
Increase in current liabilities:
Accrued expenses 6,964 3,892 271,228
-------- -------- -----------
Net cash used in operating
activities (7,342) (496) (2,176,557)
-------- -------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Note receivable - related party - - (100,000)
Acquisition of property & equipment - - (12,910)
-------- -------- -----------
Net cash used in investing
activities - - (112,910)
-------- -------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Issuance of Shares - - 567,007
Proceeds from advance
subscriptions - - 1,772,983
Costs and expenses of advance
subscriptions - - (79,710)
Proceeds from (repayments of)
related party loans 9,000 - 31,500
-------- -------- -----------
Net cash provided by
financing activities 9,000 - 2,291,780
-------- -------- -----------
NET INCREASE/(DECREASE) IN CASH
& CASH EQUIVALENTS 1,658 (496) 2,313
CASH & CASH EQUIVALENTS,
BEGINNING BALANCE 655 695 -
-------- -------- -----------
CASH & CASH EQUIVALENTS,
ENDING BALANCE $ 2,313 $ 199 $ 2,313
======== ======== ===========
The accompanying notes are an integral part of these financial statements.
5
CONCIERGE, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Concierge Technologies, Inc. (the "Company"), a California corporation, was
incorporated on August 18, 1993 as Fanfest, Inc. In August, 1995 the Company
changed its name to Starfest, Inc. During 1998, the Company was inactive, just
having minimal administrative expenses. During 1999 the Company attempted to
pursue operations in the online adult entertainment field. There were no
revenues from this endeavor. On March 20, 2002, the Company changed its name to
Concierge Technologies, Inc.
In March 2000, the Company acquired approximately 96.83 percent (8,250,000
shares) of the common stock of MAS Acquisition XX Corp. (MAS XX) for $ 314,688.
This amount was expensed in March 2000 as at the time of the acquisition, MAS XX
had no assets or liabilities and was inactive. On March 21, 2002, the Company
consummated a merger with Concierge, Inc. (see note 10).
Concierge, Inc. ("CI"), was a development stage enterprise incorporated in the
state of Nevada on September 20, 1996. The CI had undertaken the development
and marketing of a new technology, a unified messaging product "The Personal
Communications Attendant" ("PCA "). "PCA " will provide a means by which the
user of Internet e-mail can have e-mail messages spoken to him/her over any
touch-tone telephone or wireless phone in the world. To-date, CI has not earned
any revenue.
The accounting policies of the Company are in accordance with generally accepted
accounting principles and conform to the standards applicable to development
stage companies.
Principles of Recapitalization
The accompanying financial statements for the period ended September 30, 2002
and 2001 include the accounts of the CI for the three-month periods ended
September 30, 2002 and 2001. For accounting purposes, the transaction between
the Company and CI has been treated as a recapitalization of the Company, with
CI as the accounting acquirer (reverse acquisition), and has been accounted for
in a manner similar to a pooling of interests.
Basis of Preparation
The accompanying Interim Condensed Financial Statements are prepared in
accordance with rules set forth in Retaliation SB of the Securities and Exchange
Commission. As said, these statements do not include all disclosures required
under generally accepted principles and should be read in conjunction with the
audited financial statements for the year ended June 30, 2002. In the opinion
of management, all adjustments consisting of normal reoccurring accruals have
been made to the financial statements. The results of operation for the nine
months ended March 31, 2002 are not necessarily indicative of the results to be
expected for the fiscal year ending June 30, 2003.
Reclassifications
Certain prior period amounts have been reclassified to conform with the current
period presentation.
2. RECENT PRONOUNCEMENTS
In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement
of Financial Accounting Standards ("SFAS") No. 143, "Accounting for Asset
Retirement Obligations". SFAS 143 addresses financial accounting and reporting
6
CONCIERGE, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
for obligations associated with the retirement of tangible long-lived assets and
the associated asset retirement costs. This Statement is effective for financial
statements issued for fiscal years beginning after June 15, 2002.
SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets,"
was issued in August 2001. SFAS No. 144 is effective for fiscal years beginning
after December 15, 2001, and addresses financial accounting and reporting for
the impairment or disposal of long-lived assets. This statement supersedes SFAS
No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of," and the accounting and reporting provisions of APB
Opinion No. 30, "Reporting the Results of Operations - Reporting the Effects of
Disposal of a Segment of a Business, and Extraordinary, Unusual and Infrequently
Occurring Events and Transactions," for the disposal of a segment of a business.
The Company does not expect that the adoption of above pronouncements will have
a material effect on its earnings or financial position.
In May 2002, the Board issued SFAS No. 145, Rescission of FASB Statements No. 4,
44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections ("SFAS
145"). SFAS 145 rescinds the automatic treatment of gains or losses from
extinguishments of debt as extraordinary unless they meet the criteria for
extraordinary items as outlined in APB Opinion No. 30, Reporting the Results of
Operations, Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions. SFAS
145 also requires sale-leaseback accounting for certain lease modifications that
have economic effects that are similar to sale-leaseback transactions and makes
various technical corrections to existing pronouncements. The provisions of SFAS
145 related to the rescission of FASB Statement 4 are effective for fiscal years
beginning after May 15, 2002, with early adoption encouraged. All other
provisions of SFAS 145 are effective for transactions occurring after May 15,
2002, with early adoption encouraged. The Company does not anticipate that
adoption of SFAS 145 will have a material effect on our earnings or financial
position.
In June 2002, the FASB issued SFAS No. 146 " Accounting for Costs Associated
with exit or Disposal Activities." This Statement addresses financial accounting
and reporting for costs associated with exit or disposal activities and
nullifies Emerging Issues Task Force (EITF) Issue No. 94-3, "Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)." This Statement
requires that a liability for a cost associated with an exit or disposal
activity be recognized when the liability is incurred. Under Issue 94-3 a
liability for an exit cost as defined, was recognized at the date of an entity's
commitment to an exit plan. The Company does not anticipate that adoption of
SFAS 146 will have a material effect on our earnings or financial position.
3. GOING CONCERN
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles which contemplate continuation of the
Company as a going concern. However, the Company's did not earn any revenue
through the period ended September 30, 2002 and the Company has incurred net
losses from inception to September 30, 2002 of $2,773,288 including a net loss
of $14,723 during the three month period ended September 30, 2002. The
continuing losses have adversely affected the liquidity of the Company. Losses
are expected to continue for the immediate future. The Company faces continuing
significant business risks, including but not limited to, its ability to
maintain vendor and supplier relationships by making timely payments when due.
7
CONCIERGE, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
In view of the matters described in the preceding paragraph, recoverability of a
major portion of the recorded asset amounts shown in the accompanying balance
sheet is dependent upon continued operations of the Company, which in turn is
dependent upon the Company's ability to raise additional capital, obtain
financing and to succeed in its future operations. The financial statements do
not include any adjustments relating to the recoverability and classification of
recorded asset amounts or amounts and classification of liabilities that might
be necessary should the Company be unable to continue as a going concern.
Management has taken the following steps to revise its operating and financial
requirements, which it believes are sufficient to provide the Company with the
ability to continue as a going concern. Management devoted considerable effort
from inception through the period ended September 30, 2002, towards (i)
obtaining additional equity (ii) management of accrued expenses and accounts
payable (iii) Development of the software "PCA " and (vi) evaluation of its
distribution and marketing methods.
Management believes that the above actions will allow the Company to continue
operations through the next twelve months.
4. PREPAID EXPENSES
The Company entered into software license agreements with two Delaware
Corporations. One Corporation granted permission to the Company to utilize its
software for the "PCA " development. The corporation was paid $202,500 as
initial non-refundable license fee and was considered to be pre-paid royalties.
The agreement calls for Concierge, Inc. to pay a royalty of $1.00 for the first
million units sold and $.75 for units greater than 1,000,000.
The second software license agreement granted the Company the rights to
incorporate its software in the Company's personal communication attendant
e-mail device. The corporation was paid $42,500 by Concierge, Inc. as a
non-refundable, advance royalty payment. The agreement calls for the Company to
pay a royalty of $1.10 for the first 100,000 units, thereafter $.85 per unit.
The Company amortizes the prepaid royalties by the amount which is the greater
of the amount computed using (a) the ratio that current gross revenues bear to
the total of current and anticipated future gross revenues or (b) the
straight-line method over the remaining estimated economic life. Per the
guideline under SFAS 86 "Accounting for the Costs of Computer Software to Be
Sold, Leased, or Otherwise Marketed", amortization shall start when the product
is available for general release to customers.
The term of licenses is five years from the date the Company begins shipping of
its product. The prepaid royalties will be amortized based on straight-line
method over five-year period from the date shipping begins.
5. NOTES PAYABLE - RELATED PARTIES
Notes payable to certain shareholders are non-interest bearing, unsecured and
due on demand.
6. INCOME TAXES
No provision was made for Federal income tax since the Company has significant
net operating loss carryforwards. Through September 30, 2002, the Company
incurred net operating losses for tax purposes of approximately $2,770,000.
Differences between financial statement and tax losses consist primarily of
amortization allowance, was immaterial at September 30, 2002. The net operating
8
CONCIERGE, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
loss carryforwards may be used to reduce taxable income through the year 2017.
Net operating loss for carryforwards for the State of California are generally
available to reduce taxable income through the year 2007. The availability of
the Company's net operating loss carryforwards are subject to limitation if
there is a 50% or more positive change in the ownership of the Company's stock.
The provision for income taxes consists of the state minimum tax imposed on
corporations.
The net deferred tax asset balance, due to net operating loss carryforwards, as
of September 30, 2002 was approximately $1,108,000. A 100% valuation allowance
has been established against the deferred tax assets, as the utilization of the
loss carrytforwards cannot reasonably be assured.
7. SHARES OF CONCIERGE, INC. ISSUED SUBJECT TO CONTINGENCY
Concierge, Inc. (CI) issued 117,184 shares for cash totaling $202,061 and
354,870 shares for services of $3,549 during the year ended June 30, 2000. Since
December 1998, CI sold securities to persons in six states in the U. S. CI did
not file Form D or other filings in any of the states or with the SEC for such
shares and did not properly follow the requirements for complying with available
exemptions in each state. Accordingly, all such shares are subject to the
contingency that they may have been issued without the availability of an
exemption from registration under the Securities Act of 1933 and under the
securities laws of each of the six states. Therefore, CI has treated all such
shares issued since December 1998, as Common stock issued subject to
contingency. Total 680,504 shares were issued subject to contingency through
September 30, 2002 for cash and services amounting $266,610.
8. SUBSCRIPTIONS RECEIVED FOR COMMON STOCK SUBJECT TO CONTINGENCY
Concierge, Inc. (CI) entered into subscription agreements to issue "post merger"
shares in exchange for cash. Through December 31, 2000, CI had received advance
subscriptions for a gross amount of $1,255,500 before deducting associated costs
of $79,710, for 5,928,750 post merger shares. In the event the merger between CI
and the Company is not completed prior to November 31, 2000, the obligation of
the Company under this agreement may be satisfied by the issuance of shares in
the Company equivalent on a pro-rata basis to the number of shares in "post
merger" Corporation that are subject to this agreement.
As mentioned in Note 10, CI merged with the Company on March 20, 2002. The
Company filed a registration statement with the Securities and Exchange
Commission ("the Commission") on June 8, 2000 related to the proposed merger,
naming CI as the entity proposed to be merged into the Company. From July 1,
2000 through September 15, 2000, CI received additionally $487,500 as advance
subscription for 2,127,500 post merger shares in an offering intended to be
exempt from registration pursuant to the provisions of Section 4(2) of the
Securities Act of 1933 and of Regulation D, Rule 506 of the Commission. It is
possible, but not certain, that the filing of the registration statement by the
Company and the manner in which CI conducted the sale of the 2,127,500 post
merger shares of common stock constituted "general advertising or general
solicitation" by CI. General advertising and general solicitation are activities
that are prohibited when conducted in connection with an offering intended to be
exempt from registration pursuant to the provisions of Regulation D, Rule 506 of
the Commission. CI does not concede that there was no exemption from
registration available for this offering. Nevertheless, should the
aforementioned circumstances have constituted general advertising or general
solicitation, CI would be denied the availability of Regulation D, Rule 506 as
an exemption from the registration requirements of the Securities Act of 1933
when it sold the 2,127,500 post merger shares of common stock after June 8,
2000. Should no exemption from registration have been available with respect to
the sale of these shares, the persons who bought them would be entitled, under
the Securities Act of 1933, to the return of their subscription amounts if
actions to recover such monies should be filed within one year after the sales
9
CONCIERGE, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
in question. Accordingly, the amounts received by CI from the sale of these
shares are set apart from Stockholders' Equity as "Subscription received for
common stock subject to contingency" to indicate this contingency. The total
contingent liabilities related to such shares amounted to $1,929,900 ($2,009,610
less cost and expenses of $79,710) as of September 30, 2002.
9. COMMON STOCK
During the three month period ended September 30, 2002, the Company issued
500,000 shares of common stock for $29,983 cash received in the prior period and
3,275,472 shares for services amounting $153,947 received in the prior period.
During the three-month period ended September 30, 2002, 73,017 shares, which
were issued in error, were cancelled.
10. MERGER AGREEMENT
On January 26, 2000 the Company entered into an agreement of merger with
Concierge, Inc. (CI), a California Corporation. Under the agreement, the
outstanding 1,376,380 share of common stock of the CI were converted into
96,957,713 common stock of the Company on the basis of 70.444 shares of the
Company for each share outstanding of the CI. The 96,957,713 post merger shares
were distributed to the shareholders of CI on a pro-rata basis. For accounting
purposes, the transaction was treated as a recapitalization of the CI, with CI
as the accounting acquirer (reverse acquisition), and was accounted for in a
manner similar to a pooling of interests. The operations of the Company have
been included with those of the CI from the acquisition date. The Company had
minimal assets before the merger and did not have significant operations prior
to the merger. The merger was subject to approval by shareholders of both
companies and Securities and Exchange Commission. The merger was consummated on
March 20, 2002.
11. SUPPLEMENTAL DISCLOSURE OF CASH FLOWS
The Company prepares its statements of cash flows using the indirect method as
defined under the Financial Accounting Standard No. 95.
The Company paid $0 for income tax in the three months periods ended September
30, 2002 and 2001. The Company paid $0 for interest during the periods ended
September 30, 2002 and 2001.
The Cash flow statements do not include the effect of merger with CI.
12. COMMITMENT
The Company sub-leased office space in Los Angeles, California from Ardent, Ltd.
The term of the lease was 26 months with monthly payments of $1,542. The lease
expired on August 31, 2002. Rent was 3,084 and $1,266 for the three month
periods ended September 30, 2002 and 2001, respectively. The Company is
currently co-located with the president of the Company and pays no rent.
10
Item 2. Plan of Operation
Our plan of operation for the next twelve months is to source and secure a
development partner to upgrade the PCA to a viable commercial product. We have
initiated discussions with several companies who have the expertise to further
the development of the PCA to modern operating systems, and to also provide a
multi-user version as well as other feature set upgrades. The final nature of
the proposed relationship between us and any development partner is yet to be
determined. Once the multi-user, upgraded version of the PCA is completed, we
intend to continue our marketing efforts via direct mail, bundled OEM software
with new PCs, web based advertising and a physical presence at retail points of
purchase. In order to complete the development and initiate the marketing
efforts, we project that $500,000 of expenses will be incurred prior to
achieving a break-even cash flow position. There is currently no assurance that
we will be able to source the needed funds, or that if we are successful in
sourcing funds through either debt or equity financing, that such funds will be
sufficient to achieve profitability.
In addition to pursuing an upgrade to its current product offering, we
intend to aggressively pursue other opportunities in the field of communication
services by partnering with start-up and development stage companies whose
products are in the introductory stages. Through a combination of product
offerings including wireless airtime, wireless Internet access, software
offerings, and subscription services, we hope to build a vertically integrated
company able to respond in timely fashion to the consumer demand for
communications services. Our management believes that such a vertically
integrated company will be worth, as a whole, more than the sum of the otherwise
separate entities. As such, management expects the consolidated company to be a
more attractive investment opportunity for the financial community in general.
Leveraging the expertise of its management and directors, who are currently
providing their time without charge, we have established contact with several
likely strategic partners. Should we be successful in our negotiations,
management hopes to be able to acquire control of certain of these targeted
companies through an equity exchange and cash compensation. Management is not
seeking a transaction that would result in a change of control; however, it is
likely that, if the transactions being contemplated by management are to be
carried through to conclusion, our current shareholders would suffer some
dilution. Further dilution to current shareholders is also possible, and likely,
to occur simultaneous with a successful financing effort.
On June 17, 2002, David W. Neibert became our President and Chief
Operations Officer. Upon assuming that role, he moved the general accounting
and administrative offices of the company to co-location with his firm, The
Wallen Group. We do not currently pay rent and have no lease for the facilities
being provided by Mr. Neibert. He has agreed to provide his services at no
charge to the company until such time as we are in a financial position to pay a
reasonable salary commensurate with compensation packages paid to other
executives of publicly traded companies in similar stages of development within
the personal communications industry.
11
As of September 30, 2002, we had no employees other than unpaid officers
and no fixed overhead other than the variable cost of web hosting, legal and
professional fees, fees charged by our transfer agent and minimum tax payments.
We own no office fixtures, furniture or appliances.
Liquidity
Our only source of operating capital has been funding sourced through
insiders or shareholders under the terms of unsecured promissory notes. The
amount of borrowed funds have been sufficient to pay the cost of legal and
accounting fees as necessary to maintain a current reporting status with the
Securities and Exchange Commission. However, sufficient funds have been
unavailable to pay down commercial and vendor accounts payable. We have also
been unable to pay salaries to our officers and several of our outside
consultants who had performed services earlier in the fiscal year.
Although our management will continue to provide service to the Company for
the near term without pay, we will still require additional funding to maintain
the corporation and further the development of the PCA product. Management hopes
to source the needed funds through a debt financing of the acquisitions targeted
for the next several months. If the financing is not available, the acquisitions
themselves will also not be completed. In the event either the financing or the
proposed acquisitions are not completed, our funds will be exhausted and
continuing operations may be impossible.
Item 3. Controls and Procedures
Evaluation of disclosure controls and procedures. We maintain controls and
procedures designed to ensure that information required to be disclosed in this
report is recorded, processed, accumulated and communicated to our management,
including our chief executive officer and our chief financial officer, to allow
timely decisions regarding the required disclosure. Within the 90 days prior to
the filing date of this report, our management, with the participation of our
chief executive officer and chief financial officer, carried out an evaluation
of the effectiveness of the design and operation of these disclosure controls
and procedures. Our chief executive officer and chief financial officer
concluded, as of fifteen days prior to the filing date of this report, that
these disclosure controls and procedures are effective.
Changes in internal controls. Subsequent to the date of the above
evaluation, we made no significant changes in our internal controls or in other
factors that could significantly affect these controls, nor did we take any
corrective action, as the evaluation revealed no significant deficiencies or
material weaknesses.
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
12
The following exhibits are filed, by incorporation by reference, as part of
this Form 10-QSB:
Exhibit Item
------- ----
2 - Stock Purchase Agreement of March 6, 2000 between
Starfest, Inc. and MAS Capital, Inc.*
3.1 - Certificate of Amendment of Articles of Incorporation of
Starfest, Inc. and its earlier articles of incorporation.*
3.2 - Bylaws of Concierge, Inc., which became the Bylaws of
Concierge Technologies upon its merger with Starfest, Inc.
on March 20, 2002.*
3.5 - Articles of Merger of Starfest, Inc. and Concierge,
Inc. filed with the Secretary of State of Nevada on
March 1, 2002.**
3.6 - Agreement of Merger between Starfest, Inc. and Concierge,
Inc. filed with the Secretary of State of California on
March 20, 2002.**
10.1 - Agreement of Merger between Starfest, Inc. and
Concierge, Inc.*
*Previously filed with Form 8-K12G3 on March 10, 2000; Commission File No.
000-29913, incorporated herein.
**Previously filed with Form 8-K on April 2, 2002; Commission File No.
000-29913, incorporated herein.
(b) Forms 8-K
None
13
SIGNATURES
Pursuant to the requirements of the Exchange Act of 1934, the Registrant
has caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Dated: November 19, 2002 CONCIERGE TECHNOLOGIES, INC.
By:/s/ David W. Neibert
--------------------------------------
David W. Neibert, President
14
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
I, Allen E. Kahn, Chief Executive Officer of the registrant, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Concierge
Technologies, Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a. designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;
b. evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c. presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):
a. all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
15
b. any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in
this quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November 19, 2002 /s/ Allen E. Kahn
---------------------------------------
Allen E. Kahn
Chief Executive Officer
16
CERTIFICATION PURSUANT TO
SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
I, Allen E. Kahn, Chief Financial Officer of the registrant, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Concierge
Technologies, Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a. designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;
b. evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
c. presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent functions):
a. all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
17
b. any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in
this quarterly report whether there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November 19, 2002 /s/ Allen E. Kahn
---------------------------------------
Allen E. Kahn
Chief Financial Officer
18
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
In connection with the accompanying Quarterly Report of Concierge
Technologies, Inc. (the "Company") on Form 10-QSB for the period ended September
30, 2002 (the "Report"), I, Allen E. Kahn, Chief Executive Officer of the
Company, hereby certify that to my knowledge:
(1) The Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.
/s/ Allen E. Kahn
Dated: November 19, 2002 ---------------------------------------
Allen E. Kahn
Chief Executive Officer
The above certification is furnished solely pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) and is not being filed as part of
the Form 10-Q or as a separate disclosure document.
19
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
In connection with the accompanying Quarterly Report of Concierge
Technologies, Inc. (the "Company") on Form 10-QSB for the period ended September
30, 2002 (the "Report"), I, Allen E. Kahn, Chief Financial Officer of the
Company, hereby certify that to my knowledge:
(1) The Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.
/s/ Allen E. Kahn
Dated: November 19, 2002 --------------------------------------
Allen E. Kahn
Chief Financial Officer
The above certification is furnished solely pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) and is not being filed as part of
the Form 10-Q or as a separate disclosure document.
20