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
September 30, 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, 11,965,000
(Title of Class) (Shares outstanding at September 30, 2001)
NEW MEDIUM ENTERPRISES, INC.
FORM 10Q-SB
THREE MONTHS ENDED SEPTEMBER 30, 2001
INDEX
Page
PART I FINANCIAL INFORMATION
ITEM 1 Balance Sheet, September 30, 2001 2
Statement of Operations, September 30, 2001 3
Statement of Stockholders' Equity for the
period ended September 30, 2001 4
Statement of Cash Flows, September 30, 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 state company)
BALANCE SHEET
(UNAUDITED)
ASSETS
SEPT. 30, JUNE 30,
2001 2001
---------- ----------
CURRENT ASSETS
Cash and cash equivalents $686,076 $695,242
Investment 57,232 81,900
Prepaid expenses and taxes 1,740 1,614
---------- ----------
Total Current Assets 745,048 778,756
Property and equipment 34,895 34,895
less: Accumulated depreciation (12,215) (10,470)
---------- ----------
Net Book Value 22,680 24,425
Deferred tax asset 0 0
Web site development costs/ Software Asset 314,302 314,302
Other assets- security deposits 3,600 3,600
---------- ----------
Total Assets $1,085,630 $1,121,083
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accrued expenses $3,000 $1,500
Due to shareholders 989 989
---------- ----------
Total Current Liabilities 3,989 2,489
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 11,965,000 11,965 11,965
Additional paid in capital 1,656,480 1,656,480
Accumulated other comprehensive loss (38,579) (13,911)
Deficit accumulated during the development stage (548,225) (535,940)
---------- ----------
Total Stockholders' Equity 1,081,641 1,118,594
---------- ----------
Total Liabilities and Stockholders' Equity $1,085,630 $1,121,083
========== ==========
NEW MEDIUM ENTERPRISES, INC.
(A development state company)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED (UNAUDITED)
SEPT. 30 SEPT. 30
2001 2000
---------- ----------
REVENUES $0 $0
OPERATING EXPENSES
General and administrative 15,363 52,283
Depreciation 1,745 1,745
---------- ----------
Total operating expenses 17,108 54,028
---------- ----------
Income (loss) from operations (17,108) (54,028)
OTHER INCOME
Interest Income 4,823 15,968
---------- ----------
Loss before income taxes (12,285) (38,060)
Income tax benefit 0 0
NET LOSS ($12,285) ($38,060)
========== ==========
LOSS PER COMMON SHARE- Basic and Diluted $0.00 $0.00
---------- ----------
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 11,965,000 15,680,000
========== ==========
NEW MEDIUM ENTERPRISES, INC.
(A development state company)
STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE PERIOD JULY 1, 2000-SEPTEMBER 30, 2001
Retained Accumulated
Common Stock Additional Earnings Other
Per Share -------------------- Paid-in (Accumulated Comprehensive
Amount Shares Amount Capital Deficit) Loss Totals
--------- ---------- -------- ----------- ------------ ------------- ----------
Balances, June 30, 2000 15,653,000 $ 15,653 $ 1,668,642 ($348,972) $1,335,323
correction of shares issued(August 1999 $0.00 2,000 2 ($2) $ 0
Issuance of shares for services rendered,
Sept. 2000 $0.50 54,000 54 26,946 27,000
Repurchase of common shares $0.00 (3,750,000) (3,750) 0 (3,750)
Offering costs(public offering (40,000) (40,000)
Issuance of shares for services rendered,
May 2001 $0.15 6,000 6 894 900
Comprehensive loss (13,911) (13,911)
Net loss for period ended June 30, 2001 (186,968) (186,968)
---------- -------- ----------- --------- ------- ----------
Balances, June 30, 2001 11,965,000 11,965 1,656,480 (535,940) (13,911) 1,118,594
Comprehensive loss (24,668) (24,668)
Net loss for period ended September 30, 2001 (12,285) (12,285)
---------- -------- ----------- --------- ------- ----------
Balances, September 30, 2001 11,965,000 $ 11,965 $ 1,656,480 ($548,225) (38,579) $1,081,541
========== ======== =========== ========= ======= ==========
NEW MEDIUM ENTERPRISES, INC.
(A development state company)
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS
ENDED SEPTEMBER 30, 2001
Cash flows from operating activities
Net loss ($ 12,285)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation 1,745
Changes in assets and liabilities:
prepaid expenses (126)
current liabilities 1,500
0
---------
Net cash used in operating activities (9,166)
Cash flows from investing activities
Purchase of fixed assets 0
Web site development costs/ Software asset 0
---------
Net cash used in financing activities 0
Cash flows from financing activities
Net cash provided by financing activities 0
Net increase (decrease ) in cash (9,166)
---------
Cash and cash equivalents, beginning of period 695,242
Cash and cash equivalents, end of period $ 686,076
=========
Supplemental disclosures
NEW MEDIUM ENTERPRISES, INC.
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 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 September 30, 2001, the
results of operations for the three months ended September 30, 2001 are
included. Operating results for the three months ended September 30, 2001 are
not necessarily indicative of the results that may be expected for the year
ending June 30, 2002.
The information contained in these unaudited financial statements should be read
in conjunction with audited financial statements as of June 30, 2001 filed with
the Company's annual report on Form 10-KSB.
NEW MEDIUM ENTERPRISES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
SEPTEMBER 30, 2001
At September 30, 2001, the Company's current assets amounted to $745,048,
while current liabilities amounted to $3,989.
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: November 5, 2001