bibb10q093009.htm
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10Q
 
 [X] Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2009
 
[ ] Transition report under Section 13 or 15(d) of the Exchange Act For the transition period from __to__
 
Commission File Number: 333-145264
 
BIBB CORPORATION
(Exact name of Registrant as specified in its charter)

 
Nevada                                                                                        75-3076597
(State or other jurisdiction of incorporation or organization)               (I.R.S. Employer Identification No.)

                                                                                         5645 Coral Ridge Drive #171
Coral Springs, Florida 33076                                                                              954-258-1917
(Address of principal executive offices)                                                (Registrant's telephone number,
                                                                                                                           including area code)
 
None
Former Name, Address and Fiscal Year, If Changed Since Last Report

 
Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 X   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
                                  Large accelerated filer                                                                                                 Accelerated filer
                                  Non-accelerated filer (Do not check if a smaller reporting company)                 Smaller reporting company X

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes X   No

A total of 3,340,000 shares of common stock were issued and outstanding on September 30, 2009.

Transitional Small Business Disclosure Format: Yes    No X

 

 
1

 
 
Bibb Corporation
 
Table of Contents
 
Page No.
 
PART 1 FINANCIAL INFORMATION
 
ITEM 1 Financial Statements (Un-Audited)
 
a)  
Balance Sheets – September 30, 2009,  December 31, 2008 and 2007                                                                                                                                                                                       4
 
b)  
Statement of Operations – For three months ended September 30, 2009 and 2008
 
                                                  For six months ended September 30, 2009 and 2008
 
                                                  And from July 22, 2002 (Date of inception) through September 30, 2009                                                                                                                                      5
 
c)  
Statement of Cash Flows – For nine months ended September 30, 2009 and 2008,
 
                                           And from July 22, 2002 (Date of inception) through September 30, 2009                                                                                                                                     6
 
d)  
Notes to Financial Statements.                                                                                                                                                                                                                                                      7
 
ITEM 2 Management Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                         9
 
ITEM 3 Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                                                         15
 
ITEM 4 Controls and Procedures                                                                                                                                                                                                                                                                        15
 
PART 2 OTHER INFORMATION
 
ITEM 5 Exhibits                                                                                                                                                                                                                                                                                                      17
 
SIGNATURES                                                                                                                                                                                                                                                                                                         17
 
EXHIBITS
 
Exhibit 31.1 Certification by President  pursuant to Rule 13a-14(b) and Rule 15d-14(b) of the Exchange Act (filed herewith)

Exhibit 32.1
Certification by CEO pursuant to Section 906 of the Sarbanes-Oxley Act (filed herewith)

 

 
2

 


 
PART I - FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
The interim financial statements included herein are unaudited but reflect, in management's opinion, all adjustments, consisting only of normal recurring adjustments that are necessary for a fair presentation of Registrant's financial position and the results of our operations for the interim periods presented. Because of the nature of our business, the results of operations for the three months ended September 30, 2009 are not necessarily indicative of the results that may be expected for the full fiscal year. These financial statements should be read in conjunction with our audited financial statements and notes thereto included in our Form 10K-SB statement, filed on March 30, 2009, which can be found in its entirety on the SEC website at www.sec.gov under SEC File Number 333-145264.
 
 
 
 
 
 

 
 

 
3

 

BIBB CORPORATION
(A Development Stage Company)
Balance Sheets
 
 
       
 Un-Audited
 
Audited
 
Audited
       
 As of
 
 As of
 
 As of
       
Sept. 30, 2009
 
December 31, 2008
 
December 31, 2007
 ASSETS
         
                 
Current assets
         
 
Cash
 $               6,961
 
 $               18,347
 
 $                29,264
 
 Common stock subscription receivable
       
                           905
   
Total current assets
 $               6,961
 
 $               18,347
 
 $                30,169
                 
Total assets
                  
                 6,961
                  18,347
 
                      30,169
                 
 LIABILITIES AND STOCKHOLDERS' EQUITY
         
                 
Current liabilities
         
   
Total current liabilities
       
                                                  --
                 
   
Total liabilities
       
                                                 --
                 
Stockholders' equity
         
 
Common stock; $.001 par value; 25,000,000 shares
         
   
authorized, 3,340,000 shares issued and
         
   
outstanding as of December 31, 2008 and December 31, 2007
 3,340
 
                    3,340
 
                        2,340
 
Common Stock; $.001 par value,
         
   
1,000,000 shares issued at $.03 per share.
       
                        1,000
 
Additional paid-in capital
 $               49,630
 
 $               49,630
 
 $                49,180
 
Accumulated deficit
  (46,009)
 
                (34,623)
 
                    (22,351)
   
Total stockholders' equity
 $               6,961
 
 $               18,347
 
 $                30,169
                 
   
Total liabilities and stockholders' equity
 $               6,961
 
 $               18,347
 
 $                30,169

 
 
The accompanying notes are an integral part of these financial statements.

 
4

 




BIBB CORPORATION
(A Development Stage Company)
Statements of Operations

 
             
Un-Audited
     
Un-Audited
Un-Audited
Un-Audited
Un-Audited
 July 22, 2002
             
(Date of Inception)
     
Three months ended
Six months ended
through
     
Sept. 30, 2009
Sept. 30, 2008
Sept 30, 2009
Sept 30, 2008
Sept. 30, 2009
               
Revenue
 $                     -
 $                     -
 $                  -
 $                  -
 $                       -
Cost of goods sold
     
                        -
                               -
 
Gross profit
     
                        -
                               -
               
Operating expenses
         
 
Professional fees
       
                             -
 
General and administrative
 $          1,730
 $          2,338
 $       11,386
            $10,412
 $           46,009
               
   
Total operating expenses
 $          1,730
 $          2,338
 $       11,386
                $10,412
 $           46,009
               
   
Loss from operations
               (1,730)
               (2,338)
            (11,386)
               (10,412)
                   (46,009)
               
   
Loss before provision for income taxes
               (1,730)
               (2,338)
            (11,386)
               (10,412)
                   (46,009)
               
Provision for income taxes
         
               
Net loss
               (1,730)
               (2,338)
            (11,386)
               (10,412)
                   (46,009)
               
               
Basic and diluted loss per common share
(0)
(0)
(0)
 (0)
                            (0)
               
Basic and diluted weighted average
         
 
common shares outstanding
2,973,333
2,973,333
2,973,333
         2,973,333
                2,776,481
 
 
 

 
 
The accompanying notes are an integral part of these financial statements.


 
5

 


 
BIBB CORPORATION
(A Development Stage Company)
Statements of Cash Flows


                   
 Un-Audited
           
 Un-Audited
 Un-Audited
 
 From July 22, 2002
                   
 (Date of Inception)
           
Nine months ended
 
 through
           
Sept. 30. 2009
Sept. 30. 2008
 
Sept. 30. 2009
Cash flows from operating activities:
           
 
Net loss
 
                     (11,386)
 
                     (10,412)
 
                    (46,009)
 
Adjustments to reconcile net loss to
         
                             -
 
 net cash used by operating activities:
         
                             -
 
Changes in operating assets and liabilities:
         
                             -
                   
                             -
     
Net cash used by operating activities
 
                     (11,386)
 
                     (10,412)
 
                    (46,009)
                     
Cash flows from investing activities:
           
 
Purchase of property and equipment
         
                             -
     
Net cash used by investing activities
         
                             -
                     
Cash flows from financing activities:
           
 
Common stock subscriptions received
     
                       905
 
                     30,000
 
Loans from officer
 
                             -
 
450 
 
                     22,970
     
Net cash provided by financing activities
     
                          1,355
 
                     52,970
                     
Net increase in cash
 
                     (11,386)
 
                     (9,057)
 
                     6,691
                     
Cash, beginning of period
 
                     18,347
 
                     29,264
 
                             -
                     
Cash, end of period
 
                     6,691
 
                     20,207
 
                     6,691
 
 
 
 
 
 
The accompanying notes are an integral part of these financial statements.


 

 
6

 

BIBB CORPORATION
(A Development Stage Company)
Notes to Financial Statements
 
 
 
1 ..  DESCRIPTION OF BUSINESS, HISTORY AND SUMMARY OF SIGNIFICANT POLICIES
 
Description of business and history – Bibb Corporation, a Nevada corporation, (hereinafter referred to as the “Company” or “Bibb Corp.”) was incorporated in the State of Nevada on July 22, 2002.  The company plans to be in the business of multi-media publishing and marketing.  The Company operations have been limited to general administrative operations and it is considered a development stage company in accordance with Statement of Financial Accounting Standards No. 7.
 
Management of Company – The company filed its articles of incorporation with the Nevada Secretary of State on July 22, 2002, indicating Dean Patel as the incorporator.

The company filed its annual list of officers and directors with the Nevada Secretary of State on December 10, 2002 indicating its President, Secretary, Treasurer and Director is Judson Bibb. He remains in those positions as of this filing.

Going concern – The Company incurred net losses of approximately $46,009 from the period of July 22, 2002 (Date of Inception) through September 30, 2009 and has not commenced its operations, however, it is still in the development stages, raising substantial doubt about the Company’s ability to continue as a going concern.  The Company may seek additional sources of capital through the issuance of debt or equity financing, but there can be no assurance the Company will be successful in accomplishing its objectives.
 
The ability of the Company to continue as a going concern is dependent on additional sources of capital and the success of the Company’s plan.  The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
 
Year end – The Company’s year end is December 31.
 
Income taxes – The Company accounts for its income taxes in accordance with Statement of Financial Accounting Standards No. 109, which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry forwards.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in operations in the period that includes the enactment date.
 
Management believes the Company will have a net operating loss carryover to be used for future years.  Such losses may not be fully deductible due to the significant amounts of non-cash service costs.  The Company has established a valuation allowance for the full tax benefit of the operating loss carryovers due to the uncertainty regarding realization.
 
Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs.  Therefore, the amount available to offset future taxable income may be limited.
 
Net loss per common share – The Company computes net loss per share in accordance with SFAS No. 128, Earnings per Share (SFAS 128) and SEC Staff Accounting Bulletin No. 98 (SAB 98).  Under the provisions of SFAS 128 and SAB 98, basic net loss per share is computed by dividing the net loss available to common stockholders for the period by the weighted average number of shares of common stock outstanding during the period.  The calculation of diluted net loss per share gives effect to common stock equivalents; however, potential common shares are excluded if their effect is anti-dilutive.  For the period from July 22, 2002 (Date of Inception) through September 30, 2009, no options and warrants were excluded from the computation of diluted earnings per share because their effect would be anti-dilutive.

Concentration of risk – A significant amount of the Company’s assets and resources are dependent on the financial support (inclusive of free rent) of Judson Bibb.  Should he determine to no longer finance the operations of the company, it may be unlikely for the company to continue.

Revenue recognition – The Company has no revenues to date from its operations
 
 
 
 
7

 
 
 
BIBB CORPORATION
(A Development Stage Company)
Notes to Financial Statements
 
 
1a.   DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT POLICIES (continued)
 
Advertising costs –The Company has recorded no advertising costs for the period from June 30, 2009 through September 30, 2009.

Legal Procedures – The Company is not aware of, nor is it involved in any pending legal proceedings.

2.     PROPERTY AND EQUIPMENT

As of September 30, 2009, the Company does not own any property and/or equipment.

3.
STOCKHOLDER’S EQUITY

The Company has 3,340,000 shares authorized and 3,340,000 issued and outstanding as of September 30, 2009.
 
The issued and outstanding shares were issued as follows:

100,000 common shares were issued to Judson Bibb on August 19, 2002 for the sum of $100 in cash.

215,000 common shares were issued to Judson Bibb on March5, 2002 for the sum of $215 in cash.

25,000 common shares were issued to Judson Bibb on October 31, 2002 for the sum of $25 in cash.

2,000,000 common shares were issued to Judson Bibb on December 20, 2002 for the sum of $6,000 in cash.

1,000,000 common shares were issued to 25 shareholders on February 5, 2008 for the sum of $30,000 in cash.
 
As of September 30, 2009, total liabilities and equity were $6,961.

 
4.    RELATED PARTY TRANSACTIONS

The Company currently uses the home of Judson Bibb , an officer and director of the Company, on a rent-free basis for administrative purposes and in the future will use it for storage purposes as well.  There is no written lease agreement or other material terms or arrangements relating to said arrangement.

 
In 2005, 2006, 2007 and 2008, Judson Bibb made loans to the Company totaling $6,439, $4,791, $4,950 and $450 respectively.  As of September 30, 2009, his total contributions equal $22,970.

5.    STOCK OPTIONS

As of September 30, 2009, the Company does not have any stock options outstanding, nor does it have any written or verbal agreements for the issuance or distribution of stock options at any point in the future.

6.
LITIGATION

As of September 30, 2009, the Company is not aware of any current or pending litigation which may affect the Company’s operations.

 
 
8

 

 
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
You should read the following discussion of our financial condition and results of operations in conjunction with our financial statements and related notes. The following discussion and other parts of this report contain forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated by such forward-looking statements due to various factors, including, but not limited to, those set forth under "Certain Factors That May Affect Our Future Operating Results" and elsewhere in this report.
 
We began our development stage in July 2002. Since inception we have focused primarily on research and development activities, organizing our company, finding and negotiating with vendors, raising capital and laying the groundwork to take the company public. Until the closing of our current offering, development expenses were funded by our founder, Judson Bibb.
 
Our planned principal operations of producing and marketing fully integrated multi-media products have not commenced and, accordingly, we have not derived any revenue from these operations. In fact, we have incurred only losses and we expect to continue to incur losses for, at least, the next year as we create our products.
 
We have an accumulated deficit of $46,009 since inception. We have not generated any revenues to date; and we have been issued a "substantial doubt" going concern opinion from our auditors.
 
Until 2007, our only assets were the cash contributed by the founder. Thanks to a year-end closing of a $30,000 offering, we had money to begin product development. As the funds were transferred from escrow into the company operating account in February 2008, scriptwriting began once the filing of the 10K was complete.

To that end, the shooting script has been researched and written. Keyword research and writing for the website has also been completed. The manual has been written, vetted, laid out and proofed. Video production has been completed.  The DVD has been edited and is currently being authored.  After authoring is complete, we will duplicate the DVDs, print the manual, publish our website and create our initial television commercial.

Therefore, a comparison of our financial information for accounting periods would likely not be meaningful or helpful in making an investment decision regarding our company.
 
OVERVIEW
 
Bibb Corporation was founded on the belief that we have a new way for the millions of marginally literate people to acquire and comprehend the complex information required to interact with government, businesses and the law. With the result that not being comfortable reading and understanding text no longer dooms one to dependence on others or withdrawal from legal and business intercourse. Our goal is to assist customers who want and need information that is easy to find, easy-to-use and easy to understand.
 
We intend to develop our business as an "information retailer", providing information in a simple, easy-to-use manner through multi-media applications. Our concept is intended to blur the lines between a number of business applications: publisher, video producer and Internet content provider.
 
Each of our products will be fully integrated combinations of video, audio and print supplemented by Internet information. Our information products are intended to be a solution in which one medium will complement and support the information provided by the other.
 
In a nutshell, we’ll offer a simple manual then support it with how-to videos that show and tell how to apply the information step-by-step and support it a second way with a website for updated information and answers to questions.
 
The video enhances the manual and provides a further level of comfort to the buyers. They feel more secure knowing they will be able to use and understand the manual as well as be able to accomplish what they need to do.
 
The website delivers added value. The website provides updated information that's been uncovered or released since the manual was printed as well as form letters to copy and paste or adapt. Customers can also review questions others have asked and read the answers to them or ask new questions.
 
 
 
 
9

 
 
 
As the video will rely on voice over to deliver the audio portion of the content, foreign language versions will be easy to do. We just strip off the old voice track and lay in a new one then replace the graphics and titles.
 
We do not intend to change our business activities or combine with or acquire any other company now or in the foreseeable future. If we are unable to complete our business plans and become profitable, we may decide that we cannot continue with our business operations as outlined in our original business plan because of a lack of financial resources and may be forced to seek other potential business opportunities that might be available; however, we have no plans or intentions to do so at this time or at any time in the future.
 
STRATEGY

One of the five best selling direct response television ads in recent years has been the Video Professor series which teaches computer use by video or interactive CD. It is a shining example of successfully selling information via direct response television.
 
We intend to follow the same course by using direct response television commercials to market our products. Selling prices will range between $19.95 and $24.95. As is the industry norm, we will initially run our direct response commercials in a few local markets. By testing different price points, offers and premiums, we will determine which combination works best and then continue to roll out the commercials in other markets. If the product sales are successful, we intend to follow with Spanish versions.
 
Our initial goal will be to establish our ‘brand name’ as a trusted source of reliable, simple and effective information products. We feel direct response television commercials will be an immediate way for us to establish credibility and brand awareness, as well as generate sales.
 
As game and other visual entertainment sites are popular with the marginally literate, once our brand has been established, sales commence and revenues are generated, we intend to set up a commission sales program for webmasters to increase web sales and drive consumers to our website.
 
Each medium (print, video and web) will cross promote the entire line of products. The non-password protected section of our website will promote and offer our products for sale online.  Each person entering the password protected section will be required to register and establish a password, creating a database for future marketing efforts.
 
In addition to marketing our products through television and our website, we intend to contact booksellers, video stores and other retailers to negotiate possible inclusion of our products in their offerings. As retail sales for direct response products currently run 10 to 1, (for every television sale, another 10 will be sold at the retail level) our television sales figures will provide significant leverage.
 
Once we have placement in store shelves, we intend to release other titles that don’t push the traditional direct response emotional hot buttons such as: filing taxes, buying or leasing a car, dealing with Medicare or an insurance company, going to small claims court, etc.
 
RECENT EVENTS

On December 31, 2007, we completed an initial offering of 1,000,000 shares of common stock at a per share price of $.03. Net proceeds from the offering were $30,000.
 
Cash at the end of the December 2007 totaled only $29, 264. A mistake by the issuing bank regarding the available funds of a subscriber’s check delayed the receipt of $900 which was compounded by a $5.00 bank fee.  The mistake was rectified and the funds were transferred from escrow into the company operating account on February 4, 2008 raising our total liabilities and equity to $30,169.
 
As of September 30, 2009, a total of 3,340,000 shares have been issued to 26 shareholders -- 2,340,000 to our existing stockholder, who is our sole officer and director and 1,000,000 to friends and family. The shares were restricted securities, as that term is defined in Rule 144 of the Rules and Regulations of the SEC promulgated under the Act. Under Rule 144, such shares can be publicly sold, subject to volume restrictions and certain restrictions on the manner of sale, commencing one year after their acquisition.
 
Finally, as a result of the transfer of funds to the operating account, we began product development once the preparation and filing of corporate taxes as well as the Company’s first 10K was completed.
 
 
 
 
10

 
 
TRENDS

Because of the increasing foreclosures and unemployment, tightening credit and the recession, trends are very positive for the company.
 
Foreclosure activity has continued to climb nationwide in 2009. One in 84 American housing units received at least one foreclosure filing in the first half of the year, according to RealtyTrac, the largest accumulator of foreclosure data nationwide.
 
One in 84 equals 1,905,723 foreclosure filings — default notices, auction sale notices and bank repossessions — reported on 1,528,364 American properties in the first six months of 2009.  That’s more than 10,000 foreclosure filings a day and  marks a 9.46 percent increase in foreclosure filings from the earlier six month-period.
 
The number of homes lost to foreclosures rose about 17 percent in the second quarter of this year despite the launch of an extensive government program aimed at helping borrowers save their homes, according to government data.
 
In 2008, more than three million foreclosures were filed.  With nearly two million already this year, the flood of foreclosures shows no sign of abating any time soon.  By one estimate, more than eight million families may lose their homes in the next four years.
 
Much of the new foreclosure activity may be due more to growing unemployment than continuing fallout from subprime and adjustable-rate loans.  A September report by a foreclosure task force pointed to a shift in the cause of foreclosures: "People are no longer defaulting simply because of a change in the payment structure of their loan. They are defaulting because of lost jobs or reduced hours or pay."
 
In September, the Labor Department reported the unemployment rate rose to a 26-year high of 9.8 percent. The rise is reflected in the fact that the number of seriously delinquent borrowers -- those who had missed at least two payments -- increased 10 percent. But with home prices falling, many owe more than their house is worth, eliminating the option of conventional refinancing and raising the risk of foreclosure.
 
Average house prices fell by 18% in 2008.  News reports in the late spring noted a leveling-off in the decline and in some markets there has been a slight uptick, but nowhere near the decline that preceded it.  Overall, the decline continues just not as dramatically.
 
16 million homeowners (about a third of all homeowners with a first mortgage) are “upside-down” on their mortgages, up from 10 million, one year ago.
 
Moody's Economy.com estimates the number of underwater borrowers will peak at 17.4 million in the third quarter of 2010.
Deutsche Bank predicted in August that the number of homeowners underwater will grow to 25 million homeowners, or 48% of all those with a mortgage, by the time home prices stabilize. Either way, the number of foreclosures should continue to rise.

Meanwhile, those facing foreclosure tend to do so with proper representation.  The Brennan Center for Justice at New York University School of Law found that 86 percent of people facing property foreclosure last year in Stark County, Ohio, lacked counsel. In Queens County, New York, 84 percent of defendants lacked full legal representation in proceedings involving foreclosures on “subprime,” “high cost” or “non-traditional” mortgages — ones disproportionately targeted to low-income and minority populations.
 
Lenders report that some borrowers in trouble have ignored letters and phone calls intended to initiate a discussion about new mortgage terms.  While part of that may be due to borrowers being unable to admit defeat or deal with bad news, a significant part (up to 45%) could be due to marginal reading skills.
 
There is the stigma of not being able to read well. People with poor literacy skills often are ashamed of their problem ..Their market interactions are driven by the need to preserve self-esteem and dignity. Thus, when facing foreclosure, many financially strapped homeowners don't respond to calls or letters from their lenders. An overwhelming majority of respondents in a Freddie Mac survey said they didn't call the company servicing their loan because they didn't think they had any options that could help them avoid losing their home.
 
In reality, the 45% figure could be low. A major literacy gap occurs along racial lines. White adults scored 50 points higher on prose proficiency on the National Adult Literacy Survey than did black adults (287 vs. 237). In turn, black adults scored 21 points higher than Hispanic respondents (237 vs. 216).
 
In the first part of the recession, those most in danger of facing foreclosure were subprime borrowers. According to the New York Times, subprime lending occurred at a higher rate in the black and Hispanic communities.  Among subprime borrowers with similar credit ratings, blacks and Hispanics were 30 percent more likely than whites to be charged the highest interest and thus are likely to be in greater danger of foreclosure.
 
 
 
11

 
 
As joblessness becomes a greater cause of foreclosure, blacks and Hispanics are also disproportionately represented.  While the national jobless rate has risen to 9.8 percent, the rate among blacks has reached 15 percent and the rate among Hispanics is 12.7 percent midway through 2009.
 
Rising joblessness looks to continue as The Federal Reserve has raised its fourth-quarter forecast to 10.1% and expects the jobless rate to be higher than anticipated through 2011. Once again, the number of foreclosures should continue to rise.
 
While risk credit scores and joblessness may be  primary factors, lower-income households also are charged higher prices because their low general and financial literacy levels make effective product searches difficult and expose them to seller abuse. Low incomes are highly, and increasingly, correlated with low education levels, and these low levels are closely associated with low general and financial literacy levels.
 
Consumers who have difficulty reading are unlikely to understand the fine legal print in ads and contracts. Those with limited mathematical skills often do not understand percentages that express the key cost and yield indicators, respectively, for credit and savings products. For example, research shows that only about three-fifths of consumers understand and use the most important index of credit costs, the annual percentage rate or APR, and that non-users tend to have low incomes and education levels.
 
Lower-income households with low literacy levels are especially vulnerable to seller abuse. Consumers who do not understand percentages may find it impossible to understand the costs of mortgage, home equity, installment, credit card, payday, and other high-cost loans. Equally, the many disclosures required by mortgage transactions are often misunderstood by those with limited financial literacy, and obfuscated by brokers and lenders who have either failed to explain key loan terms and disclosures to borrowers or have actively misrepresented or concealed these terms.  Individuals who do not read well may find it difficult to check whether the oral promises of salespersons were written into contracts. And, those who do not write fluently are limited in their ability to resolve problems by writing to merchants or complaint agencies.
 
Since the costs of foreclosure can eat up 25% or more of the value of a loan, the losses could be enormous if a large fraction of these borrowers walk away which also put pressure on the economy.  If more people lose their jobs, that could increase the number of families at risk of losing their homes and increase the need for credit repair. The reason: tighter lending standards make cash harder to come by fees as credit card companies respond to the increase in consumer debt and delinquency rates.
 
As joblessness rises, more Americans should fall behind.  In fact, credit card delinquencies are continuing to rise. The Fitch Ratings index on delinquencies over 60 days is up one third from last year.
 
The bottom line: many people are going to need help with credit repair to either be able to use their credit cards again or get new ones once they’re dropped from their existing providers.
 
During the past two years, credit card debt has ballooned rapidly in parts of the nation where the economy is particularly weak, credit card delinquencies in California, Florida, Arizona, Illinois and Nevada—states with high foreclosure rates—increased five times as fast as in other states, suggesting that consumers struggling with their mortgage debt are also finding their credit card bills hard to pay.
 
It is in these states where Bibb Corporation will do the initial testing of its commercials.
 
The trends referenced above reflect conditions at the end of September 2009. The Federal Reserve and the US Government in general are doing everything they can to prevent the country to stem the pace of foreclosures and bankruptcies. Whether or how soon they are successful cannot be determined.
 
RESULTS OF OPERATIONS

As the company is in the development stage, no products have been produced yet. As a consequence, there were no revenues.
 
EXPENSES

General and Administrative.

General and administrative expenses consist primarily of legal, accounting and other professional service fees. General and administrative expenses totaled $1,730 for the three months ended September 30, 2009.
 
 
 
 
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INCOME TAXES

During the three months ended September 30, 2009, the Company recorded a loss from continuing operations of $1,730. Adding that to the previous losses that have been carried forward, gives the company a total loss carry forward of $46,009. As the company expects losses for the rest of the year, the tax benefit will probably be used for 2010.
 
LIQUIDITY AND CAPITAL RESOURCES

On December 31st 2007, we successfully completed the offering of 1,000,000 shares, raising $30,000 in the process. The $30,000 was transferred to the company operating account on February 4, 2008.
 
During the three months ended September 30, 2009, the company had a net cash outflow of $1,730. The majority of the costs were for professional fees.
 
We have an accumulated deficit since inception of $46,009 and our auditors have expressed substantial doubt about our ability to continue as a going concern unless we are able to generate revenues.
 
We are relying primarily on the monies raised in the offering to pursue the development, setup and marketing of our products and there is no guarantee we will be successful in completing our proposed business plans.
 
Management believes the Company’s funds are sufficient to provide for its short term projected needs for operations. However, the Company may decide to sell additional equity or increase its borrowings in order to fund increased product development or for other purposes.
 
We have never had any discussions with any possible acquisition candidate, nor have we any intention of doing so.
 
We do not expect to purchase any real estate and do not own any to sell.
 
We have no off-sheet balance arrangements or obligations or other interests that could affect finances or operations.
 
TIME TO COMPLETE PRODUCT DEVELOPMENT

In order to become fully operational and profitable, we will need to achieve each of the milestones outlined below:

Within 3 months, we expect to:

 
1.
Create DVDs
2.      Print manual
3.      Produce television commercial
4.      Complete website
 
 
 
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Within 6 months, we expect to:

 
1.
Begin testing commercial (price points, copy, call center scripts, upsells, shows and networks)
 
2.
Analyze results
3.  
Tweak commercial
4.  
Continue testing
5.  
Test website design and copy to enhance conversions
6.  
Establish affiliate program for webmasters

Within 9 months, we expect to:

1.  
Analyze results and establish final format for commercial
2.  
Purchase and record additional phone numbers for spot tracking purposes
3.  
Make Beta SP copies for shipping.
4.  
Make time buys on a network or local spot basis.
5.  
Test Google Adwords for website traffic.
6.  
Begin work on Spanish version


ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

As sales have not begun yet, Bibb Corporation has no customer credit risk. We had no debt outstanding and no derivative instruments at September 30, 2009.

We do not currently have any market risk sensitive instruments held for trading purposes or otherwise, therefore, we do not have exposure to interest rate risk, foreign currency exchange rate risk, commodity price risk, and other relevant market risks.


ITEM 4: CONTROLS AND PROCEDURES

OBJECTIVES:

Management is responsible for planning and performing internal audits of the company. Our objectives are to improve processes and controls.

Our specific areas of focus include:

·  
The effectiveness of internal control processes and systems.
·  
Compliance with laws, regulations and policies and procedures.
·  
The effectiveness and efficiency of management systems for achieving objectives while considering business risks.
·  
The reliability and security of computer operations.
 
 
 
 
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 Bibb Corporation’s disclosure controls and procedures aim to:
 
·  
        ensure timely collection and evaluation of information potentially subject to disclosure,
 
·  
        capture information that is relevant to the need to disclose developments and risks,
 
·  
        evolve with the business and
 
·  
        produce 1934 Act reports that are timely, accurate and reliable.
 
 
LIMITATIONS ON THE EFFECTIVENESS OF CONTROLS:
 
The Company's management does not expect that its Disclosure Controls or its 'internal controls and procedures for financial reporting' ("Internal Controls") will prevent all error and all fraud. A control system, no matter how well conceived and managed, can provide only reasonable assurance that the objectives of the control system are met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake.
 
Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
 
 
CONCLUSIONS:
 
Based upon the Controls Evaluation, the President has concluded that, subject to the limitations noted above, the Disclosure Controls are effective to timely alert management to material information relating to the Company during the period when its periodic reports are being prepared.
 
In accordance with SEC requirements, the President notes that, since the date of the Controls Evaluation to the date of this Quarterly Report, there have been no significant changes in Internal Controls or in other factors that could significantly affect Internal Controls, including any corrective actions with regard to significant deficiencies and material weaknesses.
 
Within the 90 days prior to the filing date of this report, the Company carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. This evaluation was done under the supervision and with the participation of the Company's principal executive officer (who is also the principal financial officer). Based upon that evaluation, he believes that the Company's disclosure controls and procedures are effective in gathering, analyzing and disclosing information needed to ensure that the information required to be disclosed by the Company in its periodic reports is recorded, summarized and processed timely. The principal executive officer is directly involved in the day-to-day operations of the Company.
 
 
 
 
 
 
 
 
 
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PART 2 - OTHER INFORMATION

ITEM 5: EXHIBITS

(a) Documents filed as part of this report:

(1)  
Exhibits

The list of exhibits contained in the accompanying Index to Exhibits is incorporated herein.

(b) See (a)(2) above.

(c) There are no financial statements required by Regulation S-X (17 CFR 210) which are or will be excluded from the annual report to shareholders by Rule 14a-3(b).


SIGNATURES
 

 
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
BIBB CORPORATION
By: /s/ Judson W. Bibb
Judson W. Bibb, President
Dated: November 9, 2009

 
Pursuant to the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 
BIBB CORPORATION
/s/ Judson W Bibb,
Judson W. Bibb, President,
November 9, 2009



 
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INDEX TO EXHIBITS

Exhibit No.                                                      Exhibit

31.1                      Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
32.1
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 

 

 

 

 

 

 

 

 

 
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