FORM 10Q-SB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Three Months Ended Commission File Number
March 31, 2001 333-51880
NEW MEDIUM ENTERPRISES, INC.
(Exact Name of Registrant as Specified in its Charter)
NEVADA 11-3502174
(State of Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
4706 18th Avenue, Brooklyn, New York 11219
(Address of Principal Executive Offices) Zip Code
Registrant's Telephone Number, Including Area Code: (718) 686-0300
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 12 months (or for 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 ___
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the issuer has filed all documents and reports
required to be filed by Sections 2, 13 or 15(d) of the Securities Act of 1934
subsequent to the distribution of securities under a plan confirmed by a court.
Yes ___ No ___
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock $.001 par value, 11,959,000
(Title of Class) (Shares outstanding at March 31, 2001)
NEW MEDIUM ENTERPRISES, INC.
FORM 10Q-SB
THREE MONTHS ENDED MARCH 31, 2001
INDEX
Page
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PART I FINANCIAL INFORMATION
ITEM 1 Balance Sheet, March 31, 2001 2
Statement of Operations, March 31, 2001 3
Statement of Stockholders' Equity for the
period ended March 31, 2001 4
Statement of Cash Flows, March 31, 2001 5
Notes to Financial Statements 6
Management's Discussion and
Analysis of Results of Operations 7
PART II Other Information - Items 1-6 7
Signatures 8
NEW MEDIUM ENTERPRISES, INC.
(A development stage company)
BALANCE SHEETS
(UNAUDITED)
ASSETS
MARCH 31, JUNE 30,
2001 2000
----------- -----------
CURRENT ASSETS
Cash and cash equivalents $ 701,554 $ 1,066,716
----------- -----------
Total Current Assets
Property and equipment 34,895 34,895
less: Accumulated depreciation (8,725) (3,490)
----------- -----------
Net Book Value 26,170 31,405
Deferred offering costs 57,609 40,000
Deferred tax asset 0 0
Investment 100,287 0
Web site development costs/ Software Asset 349,410 196,102
Other assets- security deposits 3,600 3,600
Prepaid expenses 1,919 0
----------- -----------
Total Assets $ 1,240,549 $ 1,337,823
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accrued expenses $ 1,500 $ 2,500
----------- -----------
Total Current Liabilities 1,500 2,500
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, $.001 par value, Authorized 10,000,000 shares ; none issued
Common stock, $.001 par value, Authorized 100,000,000 shares;
Issued and outstanding 11,957,000 11,957 15,653
Additional paid in capital 1,695,588 1,668,642
Deficit accumulated during the development stage (468,496) (348,972)
----------- -----------
Total Stockholders' Equity 1,239,049 1,335,323
=========== ===========
Total Liabilities and Stockholders' Equity $ 1,240,549 $ 1,337,823
=========== ===========
NEW MEDIUM ENTERPRISES, INC.
(A development stage company)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED
(UNAUDITED)
MARCH 31, MARCH 31,
2001 2000
------------ ------------
REVENUES $ 0 $ 0
OPERATING EXPENSES
General and administrative $ 65,896 96,745
Depreciation 1,745 877
------------ ------------
Total operating expenses 67,641 97,622
------------ ------------
Income (loss) from operations (67,641) (97,622)
OTHER INCOME
Interest Income 9,402 15,500
Loss before income taxes (58,239) (82,122)
Income tax benefit 0
NET LOSS ($ 58,239) ($ 82,122)
============ ============
LOSS PER COMMON SHARE- Basic and Diluted ($ 0.00) ($ 0.01)
============ ============
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 15,653,000 13,805,000
============
NEW MEDIUM ENTERPRISES, INC.
(A development stage company)
STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE PERIOD AUGUST 2, 1999 (Inception) - MARCH 31, 2001
(UNAUDITED)
Retained
Additional Earnings
Per Share Common Stock Paid-in (Accumulated
Amount Shares Amount Capital Deficit) Totals
------ ------ ------ ------- -------- ------
Shares & warrants issued for cash, August 1999 $0.00 12,620,000 $12,620 $50 $12,670
Sale of 251 A units, August 1999 $0.50 2,510,000 2,510 1,252,490 1,255,000
Sale of 52 B units, August 1999 $0.75 260,000 260 194,740 195,000
Issuance of shares for services rendered, Dec. 1999 $0.50 16,000 16 7,984 8,000
Sale of 21.3 C units, January 2000 $1.25 213,000 213 266,037 266,250
Issuance of shares for services rendered, April 2000 $0.50 34,000 34 16,966 17,000
Offering costs-private placements (69,625) (69,625)
Net loss for period ended December 31, 2000 ($348,972) (348,972)
----------------------------------------------------------------
Balances, June 30, 2000 15,653,000 15,653 1,668,642 (348,972) 1,335,323
Issuance of shares for services rendered, Sept. 2000 $0.50 54,000 54 26,946 27,000
Purchase of shares from investors-retired (3,750,000) (3,750) (3,750)
Net loss for the nine months ended March 31, 2001 (119,524) (119,524)
----------------------------------------------------------------
Balances, March 31, 2001 11,957,000 $11,957 $1,695,588 ($468,496) $1,239,049
========== ========== =========== ============ ==========
NEW MEDIUM ENTERPRISES, INC.
(A development stage company)
STATEMENT OF CASH FLOWS
FOR THE PERIOD JANUARY 1, 2001 -- MARCH 31, 2001
(UNAUDITED)
Cash flows from operating activities
Net loss ($58,239)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 1,745
Changes in assets and liabilities:
accrued expenses ($12,250)
prepaid payroll taxes (1,211) (13,461)
--------- ---------
Net cash used in operating activities (69,955)
Cash flows from investing activities
Purchase of investments (100,287)
Web site development costs/ Software asset 0
---------
Net cash used in financing activities (100,287)
Cash flows from financing activities 0
Net decrease in cash and cash equivalents (170,242)
---------
Cash and cash equivalents, January 1, 2001 871,796
---------
Cash and cash equivalents, March 31, 2001 $701,554
=========
NEW MEDIUM ENTERPRISES, INC.
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2001
(Unaudited)
Basis of presentation
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and the instructions to Form 10-QSB. 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 only normal recurring accruals) considered necessary for a fair
presentation of the Company's financial position at March 31, 2001, the results
of operations for the three ended months March 31, 2001 are included. Operating
results for the three months ended March 31, 2001 are not necessarily indicative
of the results that may be expected for the year ending June 30, 2001
The information contained in these unaudited financial statements should be read
in conjunction with audited financial statements as of June 30, 2000.
NEW MEDIUM ENTERPRISES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
March 31, 2001
At March 31, 2001, the Company's current assets amounted to $1,240,549,
while current liabilities amounted to $1,500.
PART II OTHER INFORMATION
Item 1 Legal Proceedings - None
Item 2 Changes in Securities - None
Item 3 Defaults Upon Senior Securities - None
Item 4 Submission of Matters to a Vote of Securities Holders - None
Item 5 Other Information - None
Item 6 Exhibits and Reports on Form 8-K - None
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
NEW MEDIUM ENTERPRISES, INC.
By: /s/ Ethel Schwartz
------------------------------------
Ethel Schwartz
President, Treasurer and Director
Date: May 14, 2001