UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 30549
FORM 10-QSB
(MarkOne)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
of 1934
For the quarterly period ended March 31, 2001
[ ] TRANSACTION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
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Commission file number: 0-28363
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Inet Commerce Conduit Corporation
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(Exact name of small business issuer as specified in its charter)
Florida 59-28363
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(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
615 Mount Pleasant Road, Suite 318, Toronto, Ontario, Canada M453C5
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(Address of principal executive offices)
(416) 482-3191
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(Issuer's telephone number)
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(Former name, former address and former fiscal year
(if changed since last report)
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a Court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares outstanding of each of the issuer's classes of common
equity, as of November 2, 2000 was 6,517,200 shares of common stock.
Transitional Small Business Disclosure Format (Check one): Yes [X] No [ ]
INDEX
Page
Number
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Part I. Financial Information
Item 1. Financial Statements
Balance Sheet as of March 31, 2001 and 2000 3
Statements of Operations
Three Months Ended March 31, 2001 and 2000 4
Statement of Changes in Stockholders' Equity,
Three Months Ended March 31, 2001 and 2000 5
Statements of Cash Flows,
Three Months Ended March 31, 2001 2000 6
Notes to Financial Statements 7
Item 2. Plan of Operation 9
Part II. Other Information
Item 1. Legal Proceedings 10
Item 2. Changes in Securities 10
Item 3. Defaults in Senior Securities 10
Item 4. Submission of Matters to a Vote of Securities Holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 10
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
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Inet Commerce Conduit Corp.
Balance Sheets
(A Development Stage Company)
March 31, 2001 and 2000
2001 2000
ASSETS
Cash $151,498 $195,237
Deposits 6,750 6,750
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TOTAL ASSETS $158,248 $201,987
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LIABILITIES AND
STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts Payable - Trade $ 0 $ 127
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TOTAL LIABILITIES $ 0 $ 127
STOCKHOLDERS' EQUITY
Common stock - par value $.001,
authorized 50,000,000 shares;
issued and outstanding
6,517,200 shares. $ 6,517 $ 6,517
Additional Paid-in Capital 308,643 308,643
Accumulated Deficit (156,912) (113,300)
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TOTAL STOCKHOLDERS' EQUITY 158,248 201,860
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $158,248 $201,987
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Inet Commerce Conduit Corp.
Statements of Operations
(A Development Stage Company)
Three Months Ended March 31, 2001 and 2000
2001 2000
REVENUES:
TOTAL REVENUES $ 0 $ 0
EXPENSES:
DEVELOPMENT STAGE EXPENSES (14,291) (26,224)
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NET LOSS $ (14,291) $(26,224)
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NET LOSS PER SHARE $ (0.002) $ (0.004)
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WEIGHTED AVAERAGE COMMON
SHARES OUTSTANDING 6,517,200 6,517,200
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Inet Commerce Conduit Corporation
Statement of Changes in Stockholders' Equity
For the three months ended March 31, 2001 and 2000
Par Value $.001 Additional Total
------------------------- Paid-In Accumulated Stockholders'
Shares Amount Capital Deficit Equity
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Balance at January 1, 2000 6,517,200 $ 6,517 $308,643 $ (87,076) $228,084
Net Loss March 31, 2000 (26,224) (26,224)
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Balance at March 31, 2000 6,517,200 6,517 308,643 (113,300) 201,860
Net Loss April 1 to
December 31, 2000 (29,321) (29,321)
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Balance at December 31, 2000 6,517,200 $ 6,517 $308,643 $(142,621) $172,539
Net Loss March 31, 2001 (14,291) (14,291)
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Balance at March 31, 2001 6,517,200 $ 6,517 308,643 $(156,912) $158,248
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Inet Commerce Conduit Corp.
Statements of Cash Flows
For the Three Months Ended March 31, 2001 and 2000
2001 2000
Cash flows from operating activities:
Net Loss $(14,291) $(26,225)
Adjustments to reconcile net loss
to net cash utilized by operating activities:
Accounts Payable (900) 45
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Net cash utilized by operating activities (15,191) (26,180)
Cash flows from investing activities:
Net cash utilized by investing activities 0 0
Cash flows from financing activities:
Net cash provided from financing activities 0 0
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Net Decrease in Cash (15,191) (26,180)
Cash & Cash Equivalents balance at January 1, 166,689 221,417
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Cash & Cash Equivalents balance at March 31, $151,498 $195,237
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Inet Commerce Conduit Corp.
(A Development Stage Company)
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business and Organization
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Inet Commerce Conduit Corp. (the "Company"), a development stage company,
was incorporated in the State of Florida on September 20, 1996 as Cosmetics
Consultants Corp. for the purpose of marketing sales and support services
to retailers of cosmetic companies. In November of 1999 the Company changed
its activities to acting as a consultant to internet related enterprises
that are seeking capital.
On November 25, 1996, Cosmetics Consultants Corp. changed its name
to Lomillo Consultants Corp.
On July 17, 1997, the Company amended and restated its articles of
incorporation and changed its name to Inet Commerce Conduit Corp.
Development Stage
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The Company has operated as a development stage enterprise since its
inception by devoting substantially all its efforts to the ongoing
development of the Company.
Accounting Method
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The Company's financial statements are prepared using the accrual method of
accounting. The Company has elected a calendar year end of December 31.
Loss per Share
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The computation of loss per share of common stock is based upon the
weighted average common shares outstanding during each period.
NOTE 2 - DEPOSITS
This represents an amount deposited on November 15, 1999 with a bank for a
secured corporate credit card with a credit limit of $5,000. The deposit
must be kept in the account for twelve months not to forfeit the deposit.
The deposit can be returned any time after the initial twelve months
provided the request is made in writing and there is no balance outstanding
on the account. Should any balance be outstanding, the deposit would be
applied against the balance due and the remainder would be refunded to the
Company. As of March 31, 2001 and 2000 the balance due on the card was $0.
NOTE 3 - STOCKHOLDER'S EQUITY
The Company had the following classes of capital stock as of March31, 2001
and 2001:
Common stock, $0.001 par value; authorized 50,000,000 shares; issued and
outstanding 6,517,200 shares at March 31, 2001 and 2000.
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NOTE 4 - RESEARCH AND DEVELOPMENT
Research and development cost related to future products are charged to
development stage expenses as incurred. The Company recognized research and
development costs of $0 and $7,000 in 2001 and 2000.
NOTE 5 - GOING CONCERN
The Company's financial statements are prepared using the generally
accepted accounting principles applicable to a going concern, which
contemplates the realization of assets and liquidation of liabilities in
the normal course of business. However, the Company has no current source
of revenue. Without realization of additional capital, it would be unlikely
for the Company to continue as a going concern. It is management's
intention to seek additional capital through a merger with an existing
operating company and raising capital.
NOTE 6 - INCOME TAXES
For financial reporting purposes, at March 31, 2001 a valuation allowance
of $31,104 has been recognized to offset the net deferred tax assets
related to these carryforwards and other deferred tax assets since
realization of any portion of the Company's deferred tax asset is not
considered to be more likely than not.
Deferred income taxes reflect the net effects of temporary differences
between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes.
Significant components of the Company's deferred tax liabilities and assets
recognized March 31, 2001 and 2000 are as follows:
2001 2000
Deferred tax assets:
Net operating loss carryforwards $ 2,580 $ 5,245
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Total deferred tax assets 2,580 5,245
Valuation allowance for
deferred tax assets (2,580) (5,245)
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0 0
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NOTE 7 - RELATED PARTY TRANSACTIONS
The Company neither owns or leases any real property. Fees totaling $1,950
and $7,835 have been paid to officers and companies owned by shareholders
during the periods ended March 31, 2001 and 2000 for administrative fees,
consulting services rendered and, expenses paid on behalf of the Company.
The officers and directors of the Company are involved in other business
activities and may, in the future, become involved in other business
opportunities.
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Item 2. Plan of Operation
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The Issuer is presently negotiating consulting arrangements with
experienced venture capitalists, investment bankers, systems analysts and
technical Internet consultants to put together a team able to evaluate and
assist emerging Internet companies and introduce them to potential capital
sources. The Issuer will only be paid for its services if its client is
successful in acquiring capital. The Issuer's activities will include: (i)
reviewing and evaluating the client's business plan, business operations,
personnel and facilities; (ii) advising the client as to its business and
capital structure; (iii) assisting the client in developing information and
documentation on its company, operations and an investment therein; and (iv)
introducing the client to capital sources interested in an investment in such a
business venture. The Issuer may take steps to facilitate negotiations between a
client and prospective capital sources; but will not engage in selling
activities as such.
If sufficient capital becomes available to the Issuer, it may also acquire
and hold direct venture capital investments in Internet related companies it has
evaluated. There are no present arrangements under which the Issuer can acquire
such capital, nor any assurance that such capital will become available. The
Issuer is of the opinion it has sufficient resources to continue limited
operations through December 31, 2001. It is the present intention of the Issuer,
that most venture capital investments will result in the Issuer holding a
majority voting interest in the company in which the investment is made and to
otherwise conduct its operations so that the Issuer does not become an
Investment Company under the Investment Company Act of 1940.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not Applicable
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS IN SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBIT AND REPORTS ON FORM 8-K
(a) Exhibits: Not applicable
(b) Form 8-Ks
No Reports of Form 8-K were filed during the three-month
period ended March 31, 2001.
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SIGNATURES
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In accordance with the Exchange Act, the registrant caused this report
to be signed on its behalf by the undersigned, thereunto duly
authorized.
INET COMMERCE CONDUIT CORPORATION
Dated: May 7, 2001 By: /s/ Paul H. Stone
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Paul H. Stone, President and Principal
Executive, Financial and Accounting
Officer and Sole Director
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