U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 0-26027
DATIGEN.COM, INC.
(Exact name of small business issuer as specified in its charter)
Utah
(State or other jurisdiction of incorporation or organization)
87-0626333
(IRS Employer Identification No.)
3191 North Canyon Road, Provo, Utah 84604
(Address of principal executive offices)
(801) 373-3990
(Issuer's telephone number)
Not Applicable
(Former name, address and fiscal year, if changed since last report)
Check whether the issuer (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act
during the preceding 12 months (or for such shorter period
that the issuer 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:
Check whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of
the Exchange Act subsequent to the distribution of
securities under a plan confirmed by a court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the
issuer's classes of common equity, as of September 30, 2001:
675,000 shares of common stock.
Transitional Small Business Format: Yes [ ] No [ X ]
Documents incorporated by reference: None
FORM 10-QSB
DATIGEN.COM, INC.
INDEX
Page
PART I. Financial Information 3
Balance Sheets for the Period Ending
September 30, 2001 (unaudited) 3
Statement of Operations for the Three
Months Ended September 30, 2001 and 2000,
the Nine Months Ended September 30, 2001
and 2000, and Cumulative Amounts Since
Inception. (unaudited) 4
Statement of Cash Flows for the Nine Months
Ended September 30, 2001 and 2000, and
Cumulative Amounts Since Inception. (unaudited) 5
Notes to Financial Statements 6
Management's Discussion and Analysis of
Financial Condition 7
PART II. Other Information 8
Exhibits and Repots on Form 8-K 8
SIGNATURES 8
2
PART I.
Financial Information
DATIGEN.COM, INC.
(A Development Stage Company)
Balance Sheet
September 30, 2001
(unaudited)
Assets
Current assets:
Cash $ 663,213
Marketable securities 2,250
---------
Total assets $ 665,463
=========
Liabilities and Stockholders' Equity
Current liabilities $ -
---------
Stockholders' equity:
Common stock, no par value, 50,000,000 shares
authorized; 675,000 shares issued and outstanding 1,065,100
Accumulated other comprehensive loss (47,750)
Deficit accumulated during the development stage (351,887)
---------
Total stockholders' equity 665,463
---------
Total liabilities and stockholders' equity $ 665,463
=========
See accompanying notes to financial statements
3
DATIGEN.COM, INC.
(A Development Stage Company)
Statement of Operations
(unaudited)
Cumulative
Three Months Ended Nine Months Ended Amounts
September 30, September 30, Since
2001 2000 2001 2000 Inception
Revenue - interest from
related party notes receivable $ - $ 22,231 $ 15,733 $ 67,919 $ 190,444
Revenue - interest on cash 9,518 - 13,932 - 13,932
General and administrative expense (7,863) - (23,158) - $ (23,158)
Gain on sale of marketable securities - - 3,399 - 3,399
------ ------ ------ ------- ------
Income before income taxes 1,655 22,231 9,906 67,919 184,617
Income tax expense - deferred - (3,000) - (18,550) (60,000)
------ ------ ------ ------- ------
Net income before
discontinued operations 1,655 19,231 9,906 49,369 124,617
Loss from operations of
discontinued segment, net of tax - (123,640) - (342,332) (476,504)
------- ------- ------ ------- -------
Net income (loss) $ 1,655 $ (104,409) $ 9,906 $(292,963) $(351,887)
------- ------- ------ ------- -------
Net income (loss) per share-basic and diluted:
Continued operations 0.01 0.02 0.01 0.06
Discontinued operations - (0.15) - (0.42)
Net income (loss) per share $ 0.01 $ (0.13) $ 0.01 $ (0.36)
------- ------- ------- -------
Weighted average - basic and diluted 675,000 825,000 675,000 823,000
------- ------- ------- -------
See accompanying notes to financial statements
4
DATIGEN.COM, INC.
(A Development Stage Company)
Statement of Cash Flows
(unaudited)
Cumulative
Nine Months Ended Amounts
September 30, From
2001 2000 Inception
Cash flows from operating
activities:
Net income (loss) from continuing operations $ 9,906 $ 49,369 $ 124,617
Gain on sale of marketable securities (3,399) - (3,399)
------- -------- ---------
Net cash provided by
continuing operations 6,507 49,369 121,218
------- -------- ---------
Net cash used in
discontinued operations - (314,085) (456,004)
------- -------- ---------
Net cash provided by (used in)
operating activities 6,507 (264,716) (334,786)
------- ------- ---------
Cash flows from investing
activities:
Decrease (increase) in notes receivable 580,400 299,644 -
Purchase of marketable securities (4,500) (50,000) (54,500)
Proceeds from sale of marketable securities 7,899 - 7,899
------- ------- ---------
Net cash provided by (used in) investing
activities from continuing operations 583,799 249,644 (46,601)
------- ------- ---------
Cash flows from financing activities -
issuance of common stock - - 1,044,600
------- ------ ---------
Net increase (decrease) in cash 590,306 (15,072) 663,213
Cash, beginning of period 72,907 22,179 -
------- ------- --------
Cash, end of period $ 663,213 $ 7,107 $ 663,213
======= ======= ========
See accompanying notes to financial statements
5
DATIGEN.COM, INC.
(A Development Stage Company)
Notes to Financial Statements
(unaudited)
(1) The unaudited financial statements include the accounts
of Datigen.com 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, 2001 and the results of
operations and changes in financial position for the three
month and nine month periods ended September 30, 2001 and
2000, and cumulative amounts since inception. The results
of operations for the three months and nine months ended
September 30, 2001 are not necessarily indicative of the
results to be expected for the entire year.
(2) Earnings/Loss per common share is based on the weighted
average number of shares outstanding during the period.
(3) During the nine months ended September 30, 2001, the
Company decreased marketable securities and increased
unrecognized holding loss by $22,750.
During the nine months ended September 30, 2000, the Company
issued 200,000 shares of common stock in exchange for
technology of $450,000.
The Company has not paid any cash for interest or income
taxes since inception.
6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND PLAN OF OPERATION
Forward-Looking Statements
This Form 10-QSB includes, without limitation, certain
statements containing the words "believes", "anticipates",
"estimates", and words of a similar nature, constitute
"forward- looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. This Act
provides a "safe harbor" for forward-looking statements to
encourage companies to provide prospective information about
themselves so long as they identify these statements as
forward looking and provide meaningful, cautionary
statements identifying important factors that could cause
actual results to differ from the projected results. All
statements other than statements of historical fact made in
this Form 10-QSB are forward-looking. In particular, the
statements herein regarding industry prospects and future
results of operations or financial position are forward-
looking statements. Forward-looking statements reflect
management's current expectations and are inherently
uncertain. The Company's actual results may differ
significantly from management's expectations.
Results of Operations
Nine Months Ended September 30, 2001 and 2000
In January 2000, the Company acquired computer software
programs and websites (including domain names) which are
used for offering and performing computer diagnostic and
improvement functions. The consideration for the
acquisition consisted of 200,000 shares of the Company's
restricted common stock valued at $2.00 per share, or a
total of $400,000. After pursuing the development of this
business through October 2000, the Company discontinued
further development, marketing, and operation of the
computer business acquired based on a determination that it
is unlikely the computer business will meet the Company's
expectations or goals for business growth and development.
Consequently, in November 2000, the Company reconveyed the
computer technology in exchange for the 200,000 shares of
common stock originally issued. The Company recognized a
loss on this discontinued operation of $476,504 since
inception for the nine months ended September 30, 2000. The
Company did not experience any similar losses from this
discontinued operation for the same period in 2001.
At the present time, the Company intends to continue
its business of investing in trust deed notes secured by
real property and accruing interest from a money market
account. During the three months ended September 30, 2001,
this business generated no interest income from related
party notes receivable as compared to $22,231 for the same
period in 2000. However interest on cash was $9,518 for the
three months ended September 30, 2001, compared to $0 for
the three months ended September 30, 2000. The Company had
general and administrative expenses related to continuing
operations of $7,863 and $0 for the three months ended
September 30, 2001 and 2000, respectively. These expenses
consisted of general corporate administration, legal and
professional expenses, and accounting and auditing costs.
As a result of the foregoing factors, the Company
recognized net income of $1,655 for the three months ended
September 30, 2001, as compared to net losses of $104,409
for the same period in 2000.
Liquidity and Capital Resources
At September 30, 2001, the Company had working capital
of $665,463, which consisted substantially of cash and cash
equivalents. Management believes that the Company has
sufficient cash and short-term investments to meet the
anticipated needs of the Company's operations through at
least the next 12 months.
7
PART II. OTHER INFORMATION
Exhibits and Reports on Form 8-K.
Reports on Form 8-K None
Exhibits None
SIGNATURES
In accordance with the Exchange Act, the registrant
caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DATIGEN.COM, INC.
Date: October 31, 2001 By: /s/ Joseph Ollivier, President
8