U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under
the Securities Exchange Act of 1934
For Quarter Ended: March 31, 2000
Commission File Number: 0-25388
DETOUR MAGAZINE, INC.
(Exact name of small business issuer as specified in its charter)
Colorado
(State or other jurisdiction of incorporation or organization)
84-1156459
(IRS Employer Identification No.)
7060 Hollywood Blvd., Suite 1150
Los Angeles, California
(Address of principal executive offices)
90028
(Zip Code)
(213) 469-9444
(Issuer's Telephone Number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 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
__X__ No ____.
The number of shares of the registrant's only class of common stock issued and
outstanding, as of May 1, 2000, was 20,152,669 shares.
PART I
ITEM 1. FINANCIAL STATEMENTS.
The unaudited financial statements for the three months ended March 31,
2000, are attached hereto.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Company's
unaudited financial statements and notes thereto included herein. In connection
with, and because it desires to take advantage of, the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, the Company cautions
readers regarding certain forward looking statements in the following discussion
and elsewhere in this report and in any other statement made by, or on the
behalf of the Company, whether or not in future filings with the Securities and
Exchange Commission. Forward looking statements are statements not based on
historical information and which relate to future operations, strategies,
financial results or other developments. Forward looking statements are
necessarily based upon estimates and assumptions that are inherently subject to
significant business, economic and competitive uncertainties and contingencies,
many of which are beyond the Company's control and many of which, with respect
to future business decisions, are subject to change. These uncertainties and
contingencies can affect actual results and could cause actual results to differ
materially from those expressed in any forward looking statements made by, or on
behalf of, the Company. The Company disclaims any obligation to update forward
looking statements.
OVERVIEW
Detour Magazine, Inc. is engaged in publishing of a monthly magazine
entitled Detour, which includes advertisements and articles relating to fashion,
contemporary music and entertainment and social issues. Management describes the
magazine as an "urban, avant-garde" publication. It derives approximately 90% of
its revenues from advertising, with the balance from circulation. The Company
maintains offices in both Los Angeles and New York City.
The Magazine is been published monthly, with the exception of the issues
for December/January and June/July, for which one issue is published. The
Magazine has been, in general, approximately 150 pages in length, comprised of
about 50 to 60 pages of advertising, with the balance in editorial pages.
The following information is intended to highlight developments in the
Company's operations to present the results of
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operations of the Company, to identify key trends affecting the Company's
businesses and to identify other factors affecting the Company's results of
operations for the three month periods ended March 31, 2000 and 1999.
RESULTS OF OPERATIONS
Comparison of Results of Operations for the Three Months Ended March 31,
2000 and 1999
The Company's revenues increased to $1,084,007 for the three month period
ended March 31, 2000 from $973,368 for the similar period in 1999, an increase
of $110,639 (11.4%). This increase in revenues was attributable to an increase
in advertising revenues.
In the three months ended March 31, 2000, costs of sales also increased to
$712,947 compared to $564,238 for the similar period in 1999, an increase of
$148,709 (26.4%). This was due primarily to the Company recatigorizing certain
editorial costs from general and administrative expense to cost of sales,
including salaries for the editorial staff and direct editorial costs such as
photographers, writers and expenses related to photographic shoots.
Selling, general and administrative expenses were $665,502 for the three
months ended March 31, 2000, compared to $621,231 for the similar period in
1999, an increase of $44,271 (6.6%). This increase was due primarily to an
increase in legal and accounting fees applicable to (i) the Company's fund
raising activities during this period; and (ii) the SEC investigation described
elsewhere herein. In addition, the Company also incurred significant consulting
fees relating to the aforesaid funding activities, as well as the implementation
of the new business plan more fully described in the Company's Form 10-KSB for
the fiscal year ended December 31, 1999. These costs would have increased more
significantly had the Company not recategorized certain costs referenced in the
cost of sale discussion described above.
Interest expense rose from $125,858 in the three months ended March 31,
1999, to $201,749 for the three months ended March 31, 2000, an increase of
$75,891 (60.3%). This increase was due to a higher level of outstanding
borrowings during the quarter ended March 31, 2000, as the Company has borrowed
funds over the past year for working capital. See "Liquidity and Capital
Resources" below.
As a result, the Company generated a net loss of $(444,239) for the three
months ended March 31, 2000 ($.02 per share) compared to a net loss of
$(371,622) for the three months ended March 31, 1999 ($.02 per share).
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LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2000, the Company had $26,824 in cash and cash equivalents.
Accounts receivable increased to $461,142 from $272,055 for the similar period
in 1999, an increase of $189,087 (41%), which management attributes to the fact
that the Company terminated the accounts receivable factoring arrangement which
existed with Riviera Financial, Inc., Los Angeles, California ("Riviera"), which
provided for the factoring of monthly domestic accounts receivable. This
arrangement was terminated by the Company in the fourth quearter of 1999. The
services performed by Riviera are now handled on an in-house basis.
The Company has numerous outstanding notes payable, including the
following:
In August 1998, the Company obtained a loan in the principal amount of
$550,000 from IBF Special Purpose Corporation II, to be used for general working
capital. This loan C currently bears interest at the default rate of 28% per
annum and was due December 19, 1998, including a one-time extension fee paid to
this lender of $5,500. In December 1998, the Company repaid $27,500 of the
principal balance. The loan remains in default, and the Company is in
negotiations with the lender to work out a proposed repayment plan. As of the
date of this report, no definitive agreement has been reached. The loan provides
for an exit fee equal to 3% of the original principal amount of the loan
($16,500). Management is currently reviewing its options regarding this
obligation, including seeking out other long-term lenders. However, no
assurances can be provided that such other arrangement will be made to satisfy
this obligation. This loan is secured by 1,000,000 shares of the Company's
common stock, which were provided by 7 shareholders, including Mr. Stein, who
tendered 190,000 shares as part of the security. Mr. Stein has also personally
guaranteed this obligation.
In December 1999, the Company obtained a $200,000 loan from Sigmapath
Corporation, which accrues interest at the rate of 6% per annum and became due
on March 8, 2000. The Company paid $100,000 on this obligation and is currently
negotiating with Sigmapath to to extend the remaining balance until June 30,
2000. There can be no assurances that this note holder will agree to such
extension.
The Company has six other notes payable in the aggregate principal amount
of $816,541, bearing interest at rate ranging from 8% to 12% per annum, each of
which requires a monthly or quarterly payment. All six notes are due on demand.
One of the notes is currently in default, which note has an outstanding
principal balance of $75,000 as of the date of this Report. The Company is
engaged in discussions with the holder of this note to amortize the balance due
in three equal payments, to be paid in full on or before July 31, 2000.
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In 1995, the majority stockholder of the Company loaned the Company
$932,313. In 1996, this note was converted to a demand note, bearing interest at
the rate of 12% per annum. In 1996, this stockholder subsequently assigned this
Note to JCM Capital Corp., a minority stockholder. This note is secured by
substantially all of the assets of the Company, but is subordinated to the
Company's former factoring arrangement. As of December 31, 1999, the principal
outstanding balance owed on this obligation totalled $932,313. Accrued interest
payable to this stockholder at December 31, 1999 totaled $413,500. Interest
expense for this not was $112,000 for each of the years ended December 31, 1999
and 1998.
Advances from stockholder represent advances made by the majority
stockholder of the Company for working capital purposes. At March 31, 2000, the
advances bore interest at 8% per annum and were payable on demand. In March
2000, the majority stockholder agreed to reduce the annual interest rate to 8%
from 12%, effective January 1, 2000 and modify the repayment terms. Under the
new repayment terms, the advances are repayable in monthly principal
installments of $42,000 commencing January 1, 2001. However, the Company must
use at least 25% of the net proceeds of any financing received by the Company to
repay the advances. Further, all of the advances are due and payable in full at
such time as the Company has received equity financing of at least $10 million.
At March 31, 2000, $2,693,200 of principal was outstanding and classified as
short-term. Accrued interest payable to the majority stockholder at March 31,
2000 totaled $553,909. Interest expense on the advances was $81,575 for the
three months ended March 31, 2000.
Management recognizes that, in order to allow the Company to implement the
new Strategic Plan described in the Company's Form 10-KSB, it will be necessary
for the Company to raise additional equity capital of at least $2 million over
the amounts raised by the Company through the date of this Report. In this
regard, management has had numerous discussions with potential investors, but as
of the date of this Report, no definitive arrangement has been reached with any
party who has agreed to inject such capital into the business. Failure to obtain
this additional equity capital into the Company will force management to reduce
editorial expense, which may affect the quality of the magazine. Alternatively,
management may also reduce the number of copies printed, which will result in a
reduction in newsstand and advertising revenue. If these methods are not
successful, it is doubtful that the Company will be able to survive and the
Company will be forced to liquidate.
Subsequent Event
Subsequent to March 31, 2000, the Company completed three separate private
offerings of its securities. In April 2000, the Company issued 1,000,000 shares
of its common stock to Das Werk AG, a German company, for $.50 per share for net
proceeds of $450,000.
5
The purchasers received demand registration rights exercisable after April 30,
2001. The Company paid consulting fees of $25,000 to each of Lexington Ventures,
Inc. and Trilogy Capital Group, Inc., in connection with this investment. The
Company relied upon the exemption from registration provided by Regulation S,
promulgated under the Securities Act of 1933, as amended, to issue these shares.
The other issuances are more fully described under "Part II, Item 2," below.
INFLATION
Although the operations of the Company are influenced by general economic
conditions, the Company does not believe that inflation had a material affect on
the results of operations during the three months ended March 31, 2000.
YEAR 2000 DISCLOSURE
Many existing computer programs use only two digits to identify a year in
the date field. These programs were designed and developed without considering
the impact of the upcoming change in the century. If not corrected, many
computer applications could fail or create erroneous results by or at the Year
2000. As a result, many companies will be required to undertake major projects
to address the Year 2000 issue. The Year 2000 issue is the result of computer
programs written using two digits rather than four to define the applicable
year. As a result, date-sensitive software may recognize dates using "00" as the
year 1900 rather than the year 2000. This could result in system failures or
miscalculations causing disruptions of operations, including, among others, a
temporary inability to process transactions, send invoices, or engage in similar
normal business activities. The Company did not incur any negative impact as a
result of this problem and no problems in this regard are anticipated in the
future.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
By notice dated March 30, 2000, the staff of the Salt Lake City District
Office of the Securities and Exchange Commission ("SEC" or "the Commission") has
notified the Company and its Chairman, Edward T. Stein, that it is recommending
to the SEC that an enforcement action be filed against both the Company and Mr.
Stein relating to accuracy of certain of the Company's financial statements in
1997 and 1998. Based on discussions between the staff and the Company's counsel,
the Company believes that the enforcement action would be based on: (i) the
improper presentation of certain quarterly financial information; and (ii) the
failure to record in accordance with generally accepted accounting principles
the proper compensation expense resulting from the issuance in 1997 of options
to purchase 2,200,000 shares of Common Stock in 1997 to
6
consultants. According to the notice from the Commission, the SEC anticipates
alleging that the Company violated Section 17 A of the Securities Act of 1933
and Section 10B of the Securities Exchange Act of 1934 and various rules
promulgated thereunder.
The Company believes that the issue regarding improper presentation of
quarterly financial information relates to the Company's averaging of certain
costs and expenses in certain quarterly periods in 1997 and 1998 instead of
calculating these costs and expenses precisely. To comply with the staff's
requirement, the Company would be required to determine the actual costs and
expenses for the affected quarters. The Company is uncertain of what, if any,
actual adjustments would be made or the magnitude of such adjustments. No
allegation has been made as to the accuracy of these costs and expenses in the
related annual financial statements, and the Company does not believe that any
of these quarterly adjustments would result in any change in the Company's
reported net income for 1997 and 1998.
The second issue relates to whether the Company recorded the proper amount
of compensation expense in connection with the issuance of the options to the
consultants. The Company recorded an expense of $22,000, based on the exercise
price of the options of $0.01 per share. The Company understands that the staff
believes that the expense should be the fair market value of the options at the
time the options were issued. Under generally accepted accounting principles,
any such additional compensation expense in connection with the options would
result in a corresponding increase in the paid-in capital of the Company. Thus,
while the expense would increase the Company's net loss for 1997, the paid-in
capital would be similarly increased and there would be no change to the
Company's total deficit in stockholders' equity as of the end of 1997.
Discussions between the Company and the Commission are ongoing and the
Company believes that it will be able to resolve these allegations without the
initiation of litigation or the imposition of financial penalties on the
Company. This matter, if resolved in a manner different from the expectations of
management, could have a material adverse effect on the Company's ability to
raise capital and therefore on the operating results and cash flows of future
periods.
The Company has been named as a defendant in several other lawsuits in the
normal course of its business. In the opinion of management, after consulting
with legal counsel, the liabilities, if any, resulting from these matters will
not have a material effect on the Company's financial statements.
7
ITEM 2. CHANGES IN SECURITIES
In January 2000, the Company issued 20 units for $5,000 per unit, or a
total of $100,000, to a group of nine investors who represented they were
"accredited investors", as that term is defined under the Securities Act of
1933, as amended. Each unit consisted of a promissory note of the Company in a
principal amount of $5,000, bearing interest at 10% per year due and payable on
April 25, 2000, and 5,000 warrants, each warrant entitling the holder to
purchase one share of Common Stock for $.10 per share at any time through
December 31, 2002. In connection with these sales, the Company paid consulting
fees of $5,000 to each of Trilogy Capital Group, Inc. ("Trilogy") and Lexington
Ventures, Inc. ("Lexington"). The notes were repaid in April 2000.
In February 2000, the Company issued two units for $100,000 per unit, or a
total of $200,000, to Koyah Partners L.P. and Koyah Leverage Partners L.P., each
of which represented it was an accredited investor. Each unit consists of a
promissory note of the Company in the principal amount of $100,000, bearing
interest at 10% per year, due and payable on January 31, 2001, and 75,000
warrants, each warrant entitling the holder to purchase one share of Common
Stock for $.10 per share at any time through December 31, 2004. In connection
with these sales, the Company paid consulting fees of $10,000 to each of Trilogy
and Lexington.
Also in February 2000, the Company issued 75,000 shares of its common stock
in favor of Guillermo Rego and Albert and Niliana Nasser in consideration for
these two parties each loaning the Company $55,000 in January 2000. In both
cases, the loans were non-interest bearing and were repaid in February 2000.
Each party represented to the Company that they were an accredited investor.
In March 2000, the Company issued 3,000,000 shares of Common Stock for
$0.33 1/3 per share, or a total of $1,000,000, to Koyah Leverage Partners L.P.,
Koyah Partners L.P., Western Unified Life Assurance Company and Summit
Securities, each of which represented that it was an accredited investor. The
purchasers received demand registration rights exercisable after September 14,
2000. The Company was in violation of certain representations and warranties
made in the stock purchase agreements and has not received waivers of these
violations. These violations could subject the Company to damages including the
potential rescission of the shares, if waivers cannot be obtained. In the
opinion of management, the damages, if any, resulting from the violations would
not be material to the Company's financial position or results of operations. In
connection with these sales, the Company paid consulting fees of $50,000 to each
of Trilogy and Lexington.
In each of the aforesaid transactions, the Company relied upon the
exemption from registration afforded by Section 4(2) under the
8
Securities Act of 1933, as amended, and Regulation D promulgated thereunder to
issue the securities.
In February 2000, the Company issued warrants to purchase 15,000 shares of
Common Stock for $0.25 per share at any time through January 31, 2005 to Troop
Steuber Pasich Reddick & Tobey LLP as compensation for legal services rendered
to the Company. The Company issued these warrants without registration under the
Securities Act of 1933, as amended, pursuant to Section 4(2) of such Act as a
transaction not involving a public offering.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES - NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5. OTHER INFORMATION - None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K -
(a) Exhibits
EX-27 Financial Data Schedule
(b) Reports on Form 8-K
The Company filed a report on Form 8-K dated March 22, 2000, advising that
its independent public accountant, Marcum & Kliegman LLP, had resigned.
The Company also filed a report on Form 8-K dated April 3, 2000, advising
that the Company had retained Grant Thornton LLP as its independent accountant
to audit its financial statements for the year ended December 31, 1999.
Further, on or about April 12, 2000, the Company filed a report on Form 8-K
dated April 3, 2000, advising that the Company had been notified by the Salt
Lake City District Office of the Securities and Exchange Commission that it is
recommending that an enforcement action be filed against both the Company and
Mr. Edward T. Stein, President, relating to the accuracy of certain financial
statements in 1997 and 1998.
9
DETOUR MAGAZINE, INC.
CONDENSED BALANCE SHEET
(unaudited) (audited)
For the Three For the
Month Period Fiscal Year
Ended Ended
March 31, December 31,
2000 1999
---------- ----------
ASSETS:
CURRENT ASSETS
Cash $ 26,824 $ 0
Accounts receivable 461,142 193,012
Prepaid expenses and
other current assets 105,326 145,687
---------- ----------
Total Current Assets 593,292 338,699
---------- ----------
PROPERTY AND EQUIPMENT, Net 46,933 49,145
---------- ----------
OTHER ASSETS
Security Deposits 15,510 15,510
---------- ----------
Total Other Assets 15,510 15,510
---------- ----------
TOTAL ASSETS $ 655,735 $ 403,354
========== ==========
LIABILITIES AND EQUITY:
- ----------------------
CURRENT LIABILITIES
Bank overdraft $ 0 $ 69,452
Accounts payable and
accrued expenses 677,607 997,064
Deferred Revenue 72,762 83,515
Note payable 1,596,854 1,539,041
Accrued interest payable 11,594 41,738
Due to stockholder 2,745,120 2,693,200
Note payable stockholders 932,313 932,313
Interest payable, stockholders 995,378 885,834
---------- ----------
Total Current Liabilities 7,031,628 7,242,157
---------- ----------
EQUITY
Common stock 19,002 16,002
Additional paid-in capital 5,924,574 5,020,426
Accumulated deficit (12,319,469) (11,875,231)
---------- ----------
TOTAL EQUITY (6,375,893) (6,838,803)
---------- ----------
TOTAL LIABILITIES
AND EQUITY $ 655,735 $ 403,354
========== ==========
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DETOUR MAGAZINE, INC.
UNAUDITED CONDENSED STATEMENT OF OPERATIONS
For the Three Months Ended March 31,
-----------------------------------------
2000 1999
------------------- -------------------
SALES $ 1,084,007 $ 973,368
COST OF SALES 712,947 564,238
------------------- -------------------
GROSS PROFIT 371,060 409,130
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 665,502 621,231
------------------- -------------------
OPERATING LOSS (294,442) (212,101)
Disposal of assets 0 (33,663)
Factoring fees 0 0
Forgiveness of debt 51,952 0
Interest expense (201,749) (125,858)
------------------- -------------------
NET INCOME (LOSS) $ (444,239) $ (371,622)
=================== ===================
LOSS PER SHARE OF
COMMON STOCK $ (0.02) $ (0.02)
=================== ===================
11
DETOUR MAGAZINE, INC.
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
For the Three Months
Ended March 31,
-------------------------
2000 1999
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) $ (444,239) $ (371,622)
----------- -----------
Depreciation and amortization 4,763 23,100
Forgiveness of debt 51,952 0
Decrease (increase) in
accounts receivable (268,130) (190,259)
Decrease (increase) in prepaid
expenses and other current assets 40,361 (8,115)
Increase (decrease) in accounts
payable and accrued expenses (371,409) 3,415
Increase (decrease) in
deferred revenue (10,753) (23,473)
Decrease in accrued interest
payable (30,144) 0
Increase in interest payable,
stockholder 109,544 100,000
----------- -----------
TOTAL ADJUSTMENTS (473,816) (95,332)
----------- -----------
NET CASH (USED IN)
OPERATING ACTIVITIES (918,055) (466,954)
----------- -----------
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of fixed assets (2,550) (7,392)
----------- -----------
NET CASH USED IN
INVESTING ACTIVITIES (2,550) (7,392)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in bank overdraft (69,452) 0
Net proceeds from notes payable 57,813 60,000
Net proceeds from stockholder 51,920 286,222
Proceeds from issuance of stock 1,000,000 0
Costs of acquiring financing (92,852) 0
--------- -----------
NET CASH PROVIDED BY FINANCING
ACTIVITIES 947,429 346,222
--------- -----------
NET DECREASE IN CASH 26,824 (128,124)
CASH - beginning 0 139,459
--------- -----------
CASH - ending $ 26,824 $ 11,335
========= ===========
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DETOUR MAGAZINE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Three Month Period Ended March 31, 2000
1. Unaudited Interim Financial Statements
The accompanying unaudited financial statements have been prepared in
accordance with the instructions for Form 10-QSB and 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 only of normal recurring adjustments considered
necessary for a fair presentation, have been included. Operating results
for any quarter are not necessarily indicative of the results for any other
quarter or for the full year.
2. Basis of Presentation
Business combination
On June 6, 1998, pursuant to the terms of an Agreement and Plan of
Reorganization, Ichi-Bon Investment Corporation ("IBI") acquired all of the
outstanding common stock of Detour, Inc. ("Old Detour") in exchange for
4,500,000 unregistered shares of IBI's common stock. As a result of the
transaction, the former shareholders of Old Detour received shares
representing an aggregate of 90% of IBI's outstanding common stock,
resulting in a change in control of IBI. As a result of the merger, IBI was
the surviving entity and Old Detour ceased to exist. Simultaneously
therewith, IBI amended its articles of incorporation to reflect a change in
IBI's name to "Detour Magazine, Inc." References to the "Company" or
"Detour" refer to Detour Magazine, Inc. together with the predecessor
company, Old Detour.
The acquisition of Old Detour has been accounted for as a reverse
acquisition. Under the accounting rules for a reverse acquisition, Old
Detour is considered the acquiring entity. As a result, historical
financial information for periods prior to the date of the transaction are
those of Old Detour. Under purchase method accounting, balances and results
of operations of Old Detour will be included in the accompanying financial
statements from the date of the transaction, June 6, 1998. The Company
recorded the assets and liabilities (excluding intangibles) at their
historical cost basis which was deemed to be approximate fair market value.
The reverse acquisition is treated as a non-cash transaction except to the
extent of cash acquired, since all consideration given was in the form of
stock.
Earnings per share
Earnings per share have been computed based on the weighted average number
of common shares outstanding. For the three month period prior to the
reverse acquisition discussed in the business combination section of Note 2
above, the number of common shares outstanding used in computing earnings
per share is the number of common shares outstanding as a result of such
reverse acquisition (5,000,000 shares).
13
3. History and Business Activity
Detour was originally incorporated as Ichi-Bon Investment Corporation on
May 18, 1990, under the laws of the State of Colorado. The name was changed
to Detour Magazine, Inc. concurrent with the business combination described
in Note 2. Prior to such business combination, Detour had not engaged in
any operations or generated any revenue.
Old Detour was a publisher of a nationally distributed magazine entitled
"Detour" which is published monthly and contains articles and pictorial
displays on fashion, music and social commentary.
4. Review of Report by Independent Auditor
Effective March 15, 2000, the Securities and Exchange Commission
adopted a rule requiring that interim auditor reviews must be
undertaken by all companies subject to the Section 12(g) reporting
requirements promulgated under the Securities Exchange Act of 1934, as
amended. The Company's independent auditor, Grant Thornton LLP, has not
reviewed the interim financial statements included in this Report, but
it is anticipated that they will do so in the near future and in the
event of any requirement that revisions be undertaken by the Company to
this Report, the Company will file an amendment accordingly.
14
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
DETOUR MAGAZINE, INC.
(Registrant)
Dated: May 22, 2000
By:s/ Andrew Left
-----------------
Its: President
15
DETOUR MAGAZINE, INC.
EXHIBIT INDEX TO QUARTERLY REPORT ON FORM 10-QSB
FOR THE QUARTER ENDED MARCH 31, 2000
EXHIBITS Page No.
EX-27 Financial Data Schedule..............................................17
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