SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE PERIOD ENDED JUNE 30, 2002
COMMISSION FILE NUMBER: 000-28055
INTERNET MARKETING, INC.
______________________________________________________
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEVADA 76-0618144
_______________________ ____________________________________
(STATE OF ORGANIZATION) (I.R.S. EMPLOYER IDENTIFICATION NO.)
201 Wilcrest, Suite 601, Houston, Texas 77042
________________________________________
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(281) 435-1519 or
(281) 496-6393
__________________________________________________
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
CHECK WHETHER THE ISSUER (1) FILED ALL REPORTS REQUIRED TO BE FILED BY SECTION
13 OR 15(d) OF THE EXCHANGE ACT DURING THE PAST 12 MONTHS AND (2) HAS BEEN
SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES [ ] NO [x]
THERE ARE 10,408,400 SHARES OF COMMON STOCK OUTSTANDING AS OF OCTOBER 28, 2002.
INTERNET MARKETING, INC.
(A Development Stage Company)
BALANCE SHEET
As of June 30, 2002
TOTAL ASSETS $ 0
==========
LIABILITIES
Accounts payable $ 80,492
Accrued expenses 16,237
Demand notes payable to related party 7,500
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TOTAL LIABILITIES 104,229
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STOCKHOLDERS' DEFICIT
Preferred stock, $.001 par, 10,000,000 shares authorized,
no shares issued or outstanding
Common stock, $.001 par, 100,000,000 shares authorized,
10,548,428 shares issued and outstanding 10,548
Paid in capital 484,814
Deficit accumulated during the development stage (599,591)
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TOTAL STOCKHOLDERS' DEFICIT (104,229)
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TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 0
==========
INTERNET MARKETING, INC.
(A Development Stage Company)
STATEMENTS OF OPERATING DEFICIT
For the Three Months and Six Months Ended June 30, 2002 and 2001
and the Period From July 27, 1998 (Inception)
Through June 30, 2002
Three Months Ended Six Months Ended Inception
June 30, June 30, Through
2002 2001 2002 2001 2002
------------- ------------- ------------- ------------- -------------
Administrative expenses $ 0 $ 188 $ 0 $ 20,849 $ 599,591
------------- ------------- ------------- ------------- -------------
NET LOSS $ 0 $ (188) $ 0 $ (20,849) $ (599,591)
============= ============= ============= ============= =============
Basic and diluted
net loss per share $ (.00) $ (.00) $ (.00) $ (.00)
Weighted average
shares outstanding 10,548,428 10,408,400 10,478,414 10,408,400
INTERNET MARKETING, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS For
the Six Months Ended June 30, 2002 and 2001
and the Period From July 27, 1998 (Inception)
Through June 30, 2002
Inception
Through
2002 2001 2002
---------- ---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $ 0 $ (20,849) $(599,591)
Adjustments to reconcile net
loss to net cash used by
operating activities:
Stock issued for services 180,500
Depreciation 6,274
Loss on equipment disposal 20,090
Changes in:
Accounts payable 20,474 80,492
Accrued expenses 375 16,237
---------- ---------- ----------
NET CASH USED BY OPERATING ACTIVITIES 0 0 (295,998)
---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of computer equipment (26,364)
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CASH FLOWS FROM FINANCING ACTIVITIES
Sale of stock 239,000
Proceeds from notes payable 35,007
Proceeds from note payable to a related party 7,500
Cash contributed by
majority shareholder 40,855
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NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 322,362
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NET CHANGE IN CASH
CASH - beginning of period 0 0 0
---------- ---------- ----------
- end of period $ 0 $ 0 $ 0
========== ========== ==========
INTERNET MARKETING, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ACCOUNTING POLICIES
The accompanying unaudited interim financial statements of Internet Marketing,
Inc. ("IMI") have been prepared in accordance with accounting principles
generally accepted in the United States of America and the rules of the
Securities and Exchange Commission ("SEC"), and should be read in conjunction
with the audited financial statements and notes thereto contained in IMI's
latest Annual Report filed with the SEC on Form 10-KSB. In the opinion of
management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of financial position and the results of
operations for the interim periods presented have been reflected herein. The
results of operations for interim periods are not necessarily indicative of the
results to be expected for the full year. Notes to the financial statements
which would substantially duplicate the disclosures contained in the audited
financial statements for fiscal year 2001 as reported in the 10-KSB have been
omitted.
NOTE 2 - DEBT FOR EQUITY EXCHANGE
At the end of March 2002, IMI issued 140,028 shares of common stock to reduce
IMI's debt by $35,007.
Management's Discussion and Analysis
- ------------------------------------
LIMITED OPERATING HISTORY; ACCUMULATED DEFICIT; NEED FOR ADDITIONAL CAPITAL
There is limited historical financial information about the Company upon which
to base an evaluation of the Company's performance or to make a decision
regarding an investment in shares of Company's Common Stock. The Company has net
losses of $599,591 since inception and net losses of $20,849 and $0, as of June
30, 2001, and June 30, 2002, respectively . The Company's cash and cash
equivalents are $0 at June 30, 2001 and $0 at June 30, 2002. The Company is
currently inactive and seeking capital to pursue its business opportunities.
PART II - Other Information
Item 1 - Exhibits
No Exhibits.
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities Exchange Act of
1934, the Registrant has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized.
Dated this 7th day of November, 2002
INTERNET MARKETING, INC.
By: /s/ BILL J. ROGERS
----------------------
Bill J. Rogers
CEO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY OF 2002
In connection with the Quarterly Report of Internet Marketing, Inc. on Form
10-QSB for the period ended June 30, 2002 as filed with the Securities and
Exchange Commission on the date hereof (the "Report"), each of the undersigned,
in the capacities and on the dates indicated below, hereby certifies pursuant to
18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbannes-Oxley Act of 2002, that to the best of his knowledge:
1. The Report fully complies with the requirements of Section 13 (a) pr 15(d)
of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operation of the Company.
November 7, 2002 /S/ Bill J. Rogers
--------------------------
Bill J. Rogers
Chairman and CEO