UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the Quarter endedSeptember 30, 2003
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period _____________ to _____________
Commission file number: 0-50062
e-The Movie Network, Inc.
(Exact name of Small Business Company in its charter)
| Florida |
| 65-1082273 |
(State of Incorporation) | (IRS Employer I.D. Number) |
14790 SW 21st Street
Davie, FL 33325
(Address of principal executive offices)
Registrant's Telephone number, including area code:(954) 472-7971
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 and Exchange Act of 1934 during the preceding twelve months (or such shorter period that the Registrant was required to file such reports), and (2) has been subject to file such filing requirements for the past thirty days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report: 22,100,100 Shares of Common Stock (no par value).
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [X]
e-The Movie Network, Inc.
PART I: Financial Information
ITEM 1 - Financial statements
ITEM 2 - Management's' discussion and analysis of
financial condition and results of operations
PART II: Other Information
2
e-THE MOVIE NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
SEPTEMBER 30, 2003
(UNAUDITED)
ASSETS
Current Assets: |
|
|
| |||
Cash and Cash Equivalents | $ | 83 | ||||
| ||||||
Total Current Assets | $ | 83 | ||||
Other Assets: | ||||||
Website Costs (less accumulated amortization) | 555 | |||||
Total Assets | $ | 638 | ||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) | ||||||
Current Liabilities: | ||||||
Accounts Payable | $ | 451 | ||||
Accrued Expenses | 2,400 | |||||
Total Current Liabilities | $ | 2,851 | ||||
Stockholders’ (Deficit): | ||||||
Capital Stock - Common, no par value, 100,000,000 | ||||||
shares authorized, 22,100,000 shares issued and | ||||||
outstanding | $ | 28,030 | ||||
(Deficit) Accumulated During the Development Stage | (30,243 | ) | ||||
Total Stockholders’ (Deficit) | (2,213 | ) | ||||
Total Liabilities and Stockholders’ (Deficit) | $ | 638 | ||||
| ||||||
See Accompanying Notes to Financial Statements.
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e-THE MOVIE NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002, AND THE
PERIOD FROM INCEPTION (JANUARY 3, 2001) TO SEPTEMBER 30, 2003
(UNAUDITED)
Nine Months Ended | Inception | ||||||||
Sept. 30 | Sept. 30 | to | |||||||
2003 | 2002 | 9/30/03 | |||||||
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| ||||||||
Revenue | $ | — | $ | — | $ | — | |||
| |||||||||
Operating Expenses: | |||||||||
Amortization | $ | 500 | $ | 500 | $ | 1,445 | |||
Hosting Fees and Other Internet Expenses | 315 | 315 | 1,035 | ||||||
Office Supplies and Bank Charges | 121 | 99 | 310 | ||||||
Organization and Start Up Costs | — | — | 8,600 | ||||||
Professional Fees | 2,660 | 1,370 | 12,288 | ||||||
Rent | — | — | 426 | ||||||
Transfer and Filing Fees | 1,500 | 2,900 | 6,056 | ||||||
Total Operating Expenses | $ | 5,096 | $ | 5,184 | $ | 30,160 | |||
| |||||||||
Other Expenses: | |||||||||
Interest | — | 83 | 83 | ||||||
Income (Loss) Before Tax Provision (Credit) | $ | (5,096 | ) | $ | (5,267 | ) | $ | (30,243 | ) |
Provision for Income Tax (Credit): | |||||||||
Federal Income Tax | $ | — | $ | — | $ | — | |||
State Income Tax | — | — | — | ||||||
Total Provision for Income Tax (Credit) | $ | — | $ | — | $ | — | |||
Net Income (Loss) | $ | (5,096 | ) | $ | (5,267 | ) | $ | (30,243 | ) |
Per Share Information: | |||||||||
Basic and Diluted Income (Loss) | |||||||||
Per Share | $ | — | $ | — | $ | — | |||
| |||||||||
Weighted Average Shares of Common Stock | 22,084,046 | 12,479,130 | 15,708,978 | ||||||
See Accompanying Notes to Financial Statements.
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e-THE MOVIE NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002
(UNAUDITED)
Three Months Ended | ||||||
Sept. 30 | Sept. 30 | |||||
2003 | 2002 | |||||
Revenue | $ | — |
| $ | — | |
| ||||||
Operating Expenses: | ||||||
Amortization | $ | 167 | $ | 167 | ||
Hosting Fees and Other Internet Expenses | 105 | 105 | ||||
Office Supplies and Bank Charges | 45 | 30 | ||||
Organization and Start Up Costs | — | — | ||||
Professional Fees | 794 | 200 | ||||
Rent | — | — | ||||
Transfer and Filing Fees | 500 | 1,900 | ||||
Total Operating Expenses | $ | 1,611 | $ | 2,402 | ||
| ||||||
Other Expenses: | ||||||
Interest | — | 83 | ||||
Income (Loss) Before Tax Provision (Credit) | $ | (1,611 | ) | $ | (2,485 | ) |
Provision for Income Tax (Credit): | ||||||
Federal Income Tax | $ | — | $ | — | ||
State Income Tax | — | — | ||||
Total Provision for Income Tax (Credit) | $ | — | $ | — | ||
Net Income (Loss) | $ | (1,611 | ) | $ | (2,485 | ) |
Per Share Information: | ||||||
Basic and Diluted Income (Loss) | ||||||
Per Share | $ | — | $ | — | ||
Weighted Average Shares of Common Stock | 22,099,224 | 13,162,857 | ||||
See Accompanying Notes to Financial Statements.
5
e-THE MOVIE NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002, AND THE
PERIOD FROM INCEPTION (JANUARY 3, 2001) TO SEPTEMBER 30, 2003
(UNAUDITED)
Nine Months Ended | Inception | ||||||||
Sept. 30 | Sept. 30 | to | |||||||
2003 | 2002 | 9/30/03 | |||||||
Cash Flows From Operating Activities: |
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|
| ||||||
Net (Loss) | $ | (5,096 | ) | $ | (5,267 | ) | $ | (30,243 | ) |
Adjustments to Reconcile Net Income to Net Cash | |||||||||
Provided by Operating Activities: | |||||||||
Amortization | 500 | 500 | 1,445 | ||||||
Organization Costs Contributed by Shareholder | — | — | 500 | ||||||
Common Stock Issued for Services | — | — | 3,200 | ||||||
Change in Assets and Liabilities: | |||||||||
Increase in Notes Receivable | — | — | (160 | ) | |||||
Increase (Decrease) in Current Liabilities | 143 | 1,887 | 12,341 | ||||||
Net Cash (Used) by Operating Activities | $ | (4,453 | ) | $ | (2,880 | ) | $ | (12,917 | ) |
| |||||||||
Cash Flows From Investing Activities: | |||||||||
Addition to Website Costs | $ | — | $ | — | $ | (2,000 | ) | ||
Net Cash (Used in) Investing Activities | $ | — | $ | — | $ | (2,000 | ) | ||
Cash Flows From Financing Activities: | |||||||||
Issuance of Common Stock for Cash | $ | — | $ | 10,000 | $ | 15,000 | |||
Net Cash Provided by Financing Activities | $ | — | $ | 10,000 | $ | 15,000 | |||
Net Increase (Decrease) in Cash and Cash | |||||||||
Equivalents | $ | (4,453 | ) | $ | 7,120 | $ | 83 | ||
Cash and Cash Equivalents at the Beginning | |||||||||
of Period | 4,536 | 29 | -0- | ||||||
| |||||||||
Cash and Cash Equivalents at the End of Period | $ | 83 | $ | 7,149 | $ | 83 | |||
See Accompanying Notes to Financial Statements.
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E-THE MOVIE NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 AND 2002, AND THE
PERIOD FROM INCEPTION (JANUARY 3, 2001) TO SEPTEMBER 30, 2003
(UNAUDITED)
Nine Months Ended | Inception | ||||||||
Sept. 30 | Sept. 30 | to | |||||||
2003 | 2002 | 9/30/03 | |||||||
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Additional Cash Flow Information: | |||||||||
Cash Paid During the Period for Interest | |||||||||
(Non-Capitalized) | $ | — | $ | — | $ | 83 | |||
Income Taxes | $ | — | $ | — | $ | — | |||
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Non-Cash Financing Activity: | |||||||||
Issuance of common stock in lieu of payables | $ | 9,330 | $ | — | $ | 9,330 | |||
See Accompanying Notes to Financial Statements.
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e-THE MOVIE NETWORK, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2003
(UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ending September 30, 2003 are not necessarily indicative of results that may be expected for the year ended December 31, 2003.
For further information, refer to the financial statements and footnotes thereto of the Company as of December 31, 2002 and the period from inception (January 3, 2001) to December 31, 2002.
NOTE B - INCOME PER SHARE
Basic Earnings per Share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. The effect of stock options on diluted EPS is determined through the application of the treasury stock method, whereby proceeds received by the Company based on assumed exercises are hypothetically used to repurchase the Company’s common stock at the average market price during the period. Loss per share is unchanged on a diluted basis since the Company has no potentially dilutive securities outstanding.
NOTE C - GOING CONCERN
The Company’s financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.
However, the Company has not generated any income and is unable to predict when its operations will generate income. Also, as shown in the accompanying financial statements, the Company incurred a net loss of $30,243 during the period January 3, 2001 (inception) to September 30, 2003. Therefore, it will be necessary for the Company officer to advance funds to the Company until such time as additional financing is available. There can be no assurance that the Company officer will have, or will be willing to advance funds to the Company when the funds are required. Also, there can be no assurances that additional financing will become available when required.
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e-THE MOVIE NETWORK, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2003
(UNAUDITED)
The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.
NOTE D - TERMINATION OF LEASE OBLIGATIONS
Effective January 31, 2002, by mutual consent, the operating sublease for facilities and utilities from September 1, 2001 to March 1, 2005 from a related party was terminated without cost to the Company.
NOTE E - ISSUANCE OF COMMON STOCK
On July 2, 2003, the Company issued 11,900 shares of the Company’s common stock to Eric P. Littman and a similar amount of the Company’s common stock to Dennis Sturm. The Company is issuing these shares to Mr. Littman and Mr. Sturm for their payment of the Company’s payables in the amount of $9,330.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations:
Results of Operations
We have never had revenues from operations. The losses accumulated since inception were incurred for formation and reinstatement costs of the Company and operating expenses since formation. We do not expect costs of this nature, with the exception of the minimal operating expenses, to continue in the future, but there can be no assurance that similar expenses will not be incurred.
Due to the fact that our business has not produced revenues, we are seeking out business opportunity candidates. Presently, we are negotiating to acquire Cell Power Technologies, LLC. However, no letter of intent or other agreements have been reached with that company. In the event we are able to reach an agreement with Cell Power Technologies, LLC, there will be a change in control of the Company and a change in management. In the event we do not reach an agreement with Cell Power Technologies, LLC, we plan to investigate other business opportunities. Due to our limited experience in business analysis, we may not discover or adequately evaluate adverse facts about a potential business opportunity.
Liquidity and Capital Resources
At September 30, 2003, the Company had very little cash or other assets with which to conduct operations. The Company’s operations have been funded by the sale of its common stock to its founder and a loan from a stockholder. The Company has incurred a net loss from inception. There can be no assurance that the Company will be able to obtain additional capital to meet its operation requirements and these factors indicate that the Company may not be able to continue as a going concern.
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PART II--OTHER INFORMATION
Item 1. Legal Proceedings.
There are no pending legal proceedings, and the Company is not aware of any threatened legal proceedings, to which the Company is a party or to which its property is subject.
Item 2. Changes in Securities.
(a) There have been no material modifications in any of the instruments defining the rights of the holders of any of the Company's registered securities.
(b) None of the rights evidenced by any class of the Company's registered securities have been materially limited or qualified by the issuance or modification of any other class of the Company's securities.
Item 3. Defaults Upon Senior Securities.
(Not applicable)
Item 4. Submission of Matters to a Vote of Security Holders.
(Not applicable)
Item 5. Other Information.
(Not applicable)
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit Number 31 Certification
Exhibit Number 32 Certification
(b) Reports on Form 8-K
None.
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Signature
Pursuant to the requirements 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.
Date: October 16, 2003
/s/ Susan Parker
President, Chief Executive Officer,
Chief Financial Officer, and
Principal Accounting Officer
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