[X]
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF
1934
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[
]
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF
1934
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Florida
(State
or other jurisdiction of
incorporation
or organization)
|
33-0961490
(I.R.S.
Employer
Identification
No.)
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22342
Avenida Empresa
Suite
220
Rancho
Santa Margarita, CA
(Address
of principal executive offices)
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92688
(Zip
Code)
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PART
I
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||
ITEM
1
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FINANCIAL
STATEMENTS
|
1
|
ITEM
2
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MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF
OPERATIONS
|
10
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ITEM 3 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 14 |
ITEM
4
|
CONTROLS
AND PROCEDURES
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14
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PART
II
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||
ITEM
I
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LEGAL
PROCEEDINGS
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15
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ITEM
2
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UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
15
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ITEM
3
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DEFAULTS
UPON SENIOR SECURITIES
|
15
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ITEM
4
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SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
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15
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ITEM
5
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OTHER
INFORMATION
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15
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ITEM
6
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EXHIBITS
AND REPORTS ON FORM 8-K
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15
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March
31, 2005
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December
31, 2004
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||||||
(Unaudited)
|
|
||||||
ASSETS
|
|||||||
Current
assets
|
|||||||
Cash
|
$
|
1,729
|
$
|
17,403
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|||
Total
assets
|
$
|
1,729
|
$
|
17,403
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|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable and accrued liabilities
|
$
|
1,795
|
$
|
9,324
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|||
Total
liabilities
|
$ |
1,795
|
$ |
9,324
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|||
Commitments
and contingencies
|
- | - | |||||
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;
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|||||||
6,383,845 and 6,383,845 shares issued and outstanding
|
6,384
|
6,384
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|||||
Additional
paid in capital
|
64,840
|
64,840
|
|||||
Deficit
accumulated during the development stage
|
(71,290
|
)
|
(63,145
|
)
|
|||
Total
stockholders' equity
|
(66
|
)
|
8,079
|
||||
Total
liabilities and stockholders' equity
|
$
|
1,729
|
$
|
17,403
|
|||
Three
Months Ended
|
||||||||||
Cumulative from
inception
(March
27, 2001) through
March
31, 2005
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March
31, 2005
|
March
31, 2004
|
||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
General
and administrative expenses
|
154,645
|
8,145
|
8,979
|
|||||||
Other
income
|
83,355
|
- |
83,355
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|||||||
Net
income (loss)
|
$
|
(71,290
|
)
|
$
|
(8,145
|
)
|
$
|
74,376
|
||
Basic
and diluted net income (loss) per share
|
$ |
(0.00
|
)
|
$
|
0.01
|
|||||
Weighted
average shares outstanding
|
6,383,845
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6,143,282
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||||||||
Cumulative
from inception
(March
27, 2001) to
March
31, 2005
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Three
Months Ended
March
31, 2005
|
Three
Months Ended
March
31, 2004
|
||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
income (loss)
|
$
|
(71,290
|
)
|
$
|
(8,145
|
)
|
$
|
74,376
|
||
Adjustments
to reconcile net income (loss) to cash
|
||||||||||
used
in operating activities:
|
||||||||||
Forgiveness
of accounts payable and payable
|
||||||||||
to
shareholder
|
(83,355
|
)
|
- | - | ||||||
Contributed
capital for services rendered
|
14,199
|
- | - | |||||||
Common
stock issued to pay operating expenses
|
- | - | - | |||||||
Increase
(decrease) in accounts payable
|
||||||||||
and
accrued liabilities
|
75,150
|
(7,529
|
)
|
(84,175
|
)
|
|||||
Net
cash used in operating activities
|
(65,296
|
)
|
(15,674
|
)
|
(9,799
|
)
|
||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from the issuance of stock
|
57,025
|
- |
54,125
|
|||||||
Advance
from shareholder
|
10,000
|
- |
(10,000
|
)
|
||||||
Net
cash flow from financing activities
|
67,025
|
- |
44,125
|
|||||||
Net
increase (decrease) in cash
|
1,749 |
(15,674
|
)
|
34,326
|
||||||
Cash
and cash equivalents, beginning of period
|
- |
17,403
|
- | |||||||
Cash
and cash equivalents, end of period
|
$
|
1,729
|
$
|
1,729
|
$
|
34,326
|
||||
|
||||||||||
Supplemental
Cash Flow Information:
|
||||||||||
Cash
paid for interest and income
taxes
|
$ | - |
$
|
-
|
$
|
-
|
||||
Forgiveness
of accounts payable and payable
|
$
|
83,355
|
$
|
-
|
$
|
83,355
|
||||
to
stockholder
|
Three
Months Ended
|
|||||||
March
31,2005
|
March
31,2004
|
||||||
(Unaudited)
|
(Unaudited)
|
||||||
Net
income (loss) from continuing operations available
|
|||||||
to
common shareholders (numerator)
|
$
|
(8,145
|
)
|
$
|
74,376
|
||
|
|||||||
Weighted
average number of common shares used in
|
|||||||
loss
per share during the
period (denominator)
|
6,383,845
|
6,143,282
|
As
of
March
31, 2005
|
As
of
December
31, 2004
|
Change
|
||||||||
Cash
|
$
|
1,729
|
$
|
17,403
|
$
|
(15,674
|
)
|
|||
Accounts
payable and accrued liabilities
|
1,795
|
9,324
|
(7,529
|
)
|
||||||
Total
current liabilities
|
$ |
1,795
|
$ |
9,324
|
$ |
(7,529
|
)
|
3.1
(1)
|
Articles
of Incorporation of M-GAB Development Corporation
|
|
3.2
(1)
|
Bylaws
of M-GAB Development Corporation
|
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10.1
(2)
|
Stock
Exchange Agreement with NuQuest, Inc., dated April 1,
2005
|
|
31.1
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Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer
|
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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.
|
M-GAB
Development Corporation
|
||
Dated:
July 22, 2005
|
/s/
Carl M. Berg
|
|
By:
|
Carl
M. Berg
|
|
President,
Director,
|
||
Chief
Executive Officer,
|
||
Chief
Financial Officer
|