SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the quarterly period ended September 30, 2000.
[ ] Transition report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from -----------------
to --------------.
Commission file number: 0-31417
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CYBERGATE, INC.
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(Exact name of small business issuer as specified in its charter)
Nevada 88-0356047
------ ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
268 West 400 South, Suite 300, Salt Lake City, Utah 84101
---------------------------------------------------------
(Address of principal executive office) (Zip Code)
(801) 575-8073
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(Issuer's telephone number)
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 No XX
The number of outstanding shares of the issuer's common stock, $0.001 par value
(the only class of voting stock), as of November 6, 2000 was 5,542,000.
TABLE OF CONTENTS
PART I
ITEM 1. FINANCIAL STATEMENTS..................................................3
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.............4
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K......................................4
SIGNATURES.....................................................................5
INDEX TO EXHIBITS..............................................................6
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PART I
ITEM 1. FINANCIAL STATEMENTS
As used herein, the term "Company" refers to Cybergate, Inc., a Nevada
corporation, and its subsidiaries and predecessors unless otherwise indicated.
Consolidated, unaudited, condensed interim financial statements including a
balance sheet for the Company as of the quarter ended September 30, 2000 and
statements of operations, statements of shareholders equity and statements of
cash flows for the interim period up to the date of such balance sheet and the
comparable period of the preceding year are attached hereto as Pages F-1 through
F-5 and are incorporated herein by this reference.
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INDEX TO FINANCIAL STATEMENTS
Unaudited Balance Sheet as of September 30, 2000 and December 31, 1999.......F-2
Unaudited Statement of Operations for the three and nine months ended
September 30, 2000 and 1999 and December 15, 1999 (Date of Inception)
to September 30, 2000......................................................F-3
Unaudited Statement of Cash Flows for the nine months ended
September 30, 2000 and 1999 and December 15, 1999 (Date of Inception)
to December 31, 1999.......................................................F-4
Notes to Condensed Financial Statements......................................F-5
F-1
CYBERGATE, INC.
(A Development Stage Company)
Balance Sheet for periods ending
September 30, 2000 and December 31, 1999
September 30, December 31,
2000 1999
(Unaudited) (Audited)
------------------ ------------------
Assets
Cash & cash equivalents $ 12,749 $ -
Stock subscription receivable - 15,360
------------------ ------------------
Total Current Assets 12,749 15,360
------------------ ------------------
Total Assets $ 12,749 $ 15,360
================== ==================
Liabilities and Stockholders' Equity
Current liabilities - accounts payable $ 2,727 $ 838
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Total Current Liabilities 2,727 838
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Stockholders' equity:
Preferred stock, $.001 par value, 5,000,000 shares authorized,
no shares issued and outstanding - -
Common stock, $.001 par value, 100,000,000 shares
authorized, 5,542,000 shares issued and outstanding 5,542 5,542
Additional paid-in capital 30,878 30,878
Accumulated deficit (26,398) (21,898)
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Total stockholders' equity 10,022 14,522
------------------ ------------------
Total liabilities and stockholders' equity $ 12,749 $ 15,360
================== ==================
See accompanying notes to Financial Statements
F-2
CYBERGATE, INC.
(A Development Stage Company)
Unaudited Statement of Operations
Three and Nine months ended September 30, 2000 and
December 15, 1999 (Date of Inception) to September 30, 2000
Three months Nine months
ended ended Inception to
September 30, September 30, September 30,
2000 2000 2000
---------------- ---------------- -----------------
Revenues $ - $ - $ -
General and administrative costs 984 4,500 25,398
---------------- ---------------- -----------------
Income / (Loss) before income taxes (984) (4,500) (25,398)
Provision for income taxes - - -
---------------- ---------------- -----------------
Net Income / (Loss) $ (984) $ (4,500) $ (25,398)
================ ================ =================
Income / (Loss) per common share - basic and diluted $ - $ - $ (0.01)
================ ================ =================
Weighted average common shares - basic and diluted 5,542,000 5,542,000 5,277,000
================ ================ =================
See accompanying notes to Financial Statements
F-3
CYBERGATE, INC.
(A Development Stage Company)
Unaudited Statement of Cash Flows
Nine months ended September 30, 2000 and
December 15, 1999 (Date of Inception) to September 30, 2000
Nine Months
Ended Inception to
September 30, September 30,
2000 2000
---------------------- --------------------
Cash flows from operating activities:
Net loss $ (4,500) $ (25,398)
Adjustments to reconcile net loss to net cash
(Used) in operating activities:
Stock compensation expense - 20,060
Increase in accounts payable 1,889 2,727
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Net cash (used) in operating activities (2,611) (2,611)
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Cash flows from investing activities - -
----------------- --------------------
Cash flows from financing activities
Decrease in stock subscription receivable 15,360 15,360
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Net cash provided by investing activities 15,360 15,360
----------------- --------------------
Net increase in cash 12,749 12,749
Cash, beginning of period - -
----------------- --------------------
Cash, end of period $ 12,749 $ 12,749
================= ====================
See accompanying notes to Financial Statements
F-4
CYBERGATE, INC.
(A Development Stage Company)
Notes to Financial Statements
September 30, 2000
1. Organization
The Company was organized under the laws of the State of Nevada on February 15,
1996 and had no significant operations or activity until December 15, 1999 (date
of inception). The Company proposes to seek business ventures which will allow
for long-term growth. Further, the Company is considered a development stage
company as defined in SFAS No. 7 and has not, thus far, commenced planned
principal operations.
2. Unaudited Financial Statements
The unaudited financial statements include the accounts of the Company and
include all adjustments (consisting of normal recurring items), which are, in
the opinion of management, necessary to present fairly the financial position as
of September 30, 2000 and the results of operations and cash flows for the nine
months ended September 30, 2000. The results of operations for the nine months
ended September 30, 2000, are not necessarily indicative of the results to be
expected for the entire year.
3. Basis of Presentation
The accompanying consolidated unaudited condensed financial statements have been
prepared by management in accordance with the instructions in Form 10-QSB and,
therefore, do not include all information and footnotes required by generally
accepted accounting principles and should, therefore, be read in conjunction
with the Company's initial registration statement on Form 10-SB, filed with the
Securities and Exchange Commission on August 30, 2000. These statements do
include all normal recurring adjustments which the Company believes necessary
for a fair presentation of the statements. The interim operations results are
not necessarily indicative of the results for the full year ended December 31,
2000.
4. Related Party Transactions
At the conclusion of the third quarter, Hudson Consulting Group, Inc. billed the
Company $935.00 for services rendered in preparing disclosure documents and
general administrative tasks with regard to daily operations. Richard Surber is
president of both Hudson Consulting Group, Inc. and the Company.
5. Additional footnotes included by reference
Except as indicated in Notes above, there have been no other material changes in
the information disclosed in the notes to the financial statements included in
the Company's initial registration statement on Form 10-SB, filed with the
Securities and Exchange Commission on August 30, 2000. Therefore, those
footnotes are included herein by reference.
F-5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Plan of Operations
The Company's plan of operation for the coming year is to identify and acquire a
favorable business opportunity. The Company does not plan to limit its options
to any particular industry, but will evaluate each opportunity on its merits.
The Company anticipates that its owners, affiliates, and consultants will
provide it with sufficient capital to continue operations until the end of the
fourth quarter of 2000, but there can be no assurance that this expectation will
be fully realized.
The Company does not expect to generate any meaningful revenue or incur
operating expenses unless and until it acquires an interest in an operating
company.
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits Exhibits required to be attached by Item 601 of Regulation S-B are
listed in the Index to Exhibits on page 6 of this Form 10-QSB, and are
incorporated herein by this reference.
(b) Reports on Form 8-K. No reports on Form 8-K were filed during the period
covered by this Form 10- QSB.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, hereunto duly
authorized, this 6th day of November, 2000.
CYBERGATE, INC.
/s/ Richard D. Surber
- --------------------------
Richard D. Surber
President and Director
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INDEX TO EXHIBITS
EXHIBIT PAGE
NO. NO. DESCRIPTION
3(i) * Articles of Incorporation of the Company (incorporated
herein by reference from Exhibit No. 3(i) of the Company's
Form 10-SB as filed with the Securities and Exchange
Commission on August 30, 2000).
3(ii) * Bylaws of the Company, as amended (incorporated herein by
reference from Exhibit 3(ii) of the Company's Form 10-SB as
filed with the Securities and Exchange Commission on August
30, 2000).
27 7 Financial Data Schedule "CE".
* Incorporated herein by reference from the referenced filings previously made
by the Company.
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