SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1998
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[ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from _____________________ to ______________________
Commission file number 0-25276
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QUIKBIZ INTERNET GROUP, INC.
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Exact name of small business issuer as specified in its charter
Nevada 88-0320364
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(State or other jurisdiction of I.R.S. Employer Identification No.
incorporation)
5310 NW 33rd Drive, Suite 212, Ft. Lauderdale, FL
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33309 (Address of principal executive offices and Zip code)
(954) 739-7005
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(Issuer's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since last
report)
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 (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. [x ] Yes [ ]
No
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 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 the latest practicable date: July 31, 1998: 13,935,240
shares of common stock
Transitional Small Business Disclosure Format (check one): Yes___ No x
INDEX
Page
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Part I
Condensed Balance Sheets 3
Statement of Operations 4
Statement of Cash Flows 5
Management's Discussion and Analysis or Plan of Operations 6
Part II
Item 1. Legal Proceedings 7
Item 2. Changes in Securities 7
Item 3. Defaults Upon Senior Securities 7
Item 4. Submission of Matters to a Vote of Security Holders 7
Item 5. Other Information 7
Item 6. Exhibits and Reports on Form 8-K 7
Signatures 9
2
QuikBIZ Internet Group, Inc.
Condensed Balance Sheets
Current Year Prior Yr
June 30,1998 Dec. 31, 1997
Current Assets
Cash 52,467 40,498
A/R 204,178 92,018
Other Receivables 151,167 151,167
Total Current Assets 407,812 283,683
Fixed Assets
Net Property & Equipment 14,291 12,291
Copyright 32,236 32,236
Accum Amort (6,447) (6,447)
Total Fixed Assets 40,080 38,080
Other Assets
Org Cost 62,811 52,668
Accum Amort (31,602) (31,602)
Security 5,761 5,761
Goodwill 218,326 218,326
Franchise Rights 225,000 225,000
Other Investments 21,595 21,595
Total Other Assets 501,891 491,748
Total Assets 949,783 813,511
Liabilities
A/P 309,949 246,074
Notes Payable 225,000 225,000
Accrued Expenses 32,699 34,261
Notes Payable 50,000
Notes Payable-off 12,143
Line Credit 99,713 95,082
Total Liabilities 729,504 600,417
Shareholders' Equity
Preferred Stock 17,248 17,248
Common Stock 21,533 21,533
Additional Paid In Capital 1,703,660 1,706,549
Retained Earnings (1,522,162) (1,532,236)
Total Equity 220,279 213,094
Total Liabilities & Equity 949,783 813,511
3
See Accountants Compilation Report
QuikBIZ Internet Group, Inc.
Statement of Operations
3 Months Ended 6 Months Ended
30-Jun 30-Jun
(Unaudited) (Unaudited)
1998 1997 1998 1997
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Revenues 560,028 - 840,724 -
CofGS 392,573 - 569,191 -
Gross Profit 167,455 - 271,533 -
Operating Expenses
General & Administrative 166,201 28,449 257,761 56,952
Interest 2,417 - 3,698 -
Total Operating Expenses 168,618 28,449 261,459 56,952
Net Profit/(Loss) (1,163) (28,449) 10,074 (56,952)
4
See Accountants' Compilation Report
QuikBIZ Internet Group, Inc.
Statement of Cash Flows
Three Months Ended Six Months Ended
30-Jun 30-Jun
1998 1997 1998 1997
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Cash Flows From Operations (1,163) (28,449) 10,074 (56,952)
(Increase)Decrease in Accounts Receivable (71,018) - (112,160) -
(Increase)Decrease inOther Assets (10,143) - (10,143) -
Increase(Decrease)in Accounts Payable 55,622 - 44,385 -
Increase(Decrease) in Accrued Liab. (1,562) - (1,562) -
Total Adjustments (27,101) - (79,480) -
Cash Flows From Investing Activities:
Purchase of Property and Equipment (2,365) - (2,000) -
Increase(Decrease) Other Liabilities 12,143 - 12,143 -
Net Cash Provided By Investing Activties 9,778 - 10,143 -
Cash Flows From Financing Activities:
Receipt of Proceeds from Stock Sales 7,000 46,500 16,600 46,500
Net Borrowing on Line of Credit 63,503 - 54,632
Net Cash Provided by Financing Activities 70,503 46,500 71,232 46,500
Net Increase(Decrease) in Cash 52,017 18,051 11,969 (10,452)
Cash at Beginning 450 3,576 40,498 32,079
Cash at the End 52,467 21,627 52,467 21,627
5
See Accountants' Compilation Report
Item 2. Management Discussion and Analysis or Plan of Operations
Results of Operations
During the three month and six month period ended June 30, 1998 the Company had
revenues of $560,028 and $840,724 respectively as against no revenues during the
three month and six month period ended June 30, 1997. The Company's gross profit
was 28.9% and 32.3% of revenue for the three and six month periods ended June
30, 1998. This was due to the operations of the Company's subsidiary, ADS
Advertising Corp. ("The Smith Agency"), which was acquired in November 1997.
During the three month and six month period ended June 30, 1998 the Company had
general and administrative expenses of $166,201 and $250,761 respectively as
against $28,449 and $58,952 during the three month and six month period ended
June 30, 1997. This was predominately due to the operations of The Smith Agency.
That as a result the Company had a net loss of $1,163 for the three month period
ended June 30, and a net profit of $10, 074 for the six month period ended June
30, 1998, as against a loss of $28,449 and a loss of $56, 952 respectively for
the three month and six month period ended June 30, 1997.
Liquidity and Capital Resources
The Company had cash on hand of $52,467 and accounts receivable, attributable to
The Smith Agency, of $204,178 at the end of the six month period ended June 30,
1998 an increase of $112,160 or 122%, $71,018 or 77% of such increase occurred
during the three month period ended June 30, 1998. The Company at the end of the
six month period ended June 30, 1998 had accounts payable of $309,949 an
increase of $55,522 during the six month period and notes payable of $12,143 for
expenses paid by the officers of the Company's subsidiary Capital Network of
America, Corp. for the subsidiary.
The Company believes that it will be able to meet its obligations through the
cash flow of its subsidiaries including QuikLab Multimedia Centers which it
acquired in July 1998. In the event it cannot meet its through this avenue it
will seek to raise capital, though there is no assurance that the Company will
be successful in obtaining capital. In regard to the Company's subsidiaries, it
is expected that The Smith Agency will be able to meet its obligations from its
revenue; and that the officers of Capital Network of America Corp., pursuant to
agreement, will provide for the expenses of that subsidiary for the first year
or until it has sufficient revenue. It is anticipated, though there is no
assurance, that the recent acquisition of QuikLab Multimedia Centers in July
1998 will further enhance the Company's sales and profitability for the second
half of 1998. The Company will continue to seek out additional opportunities
through acquisitions and mergers.
6
Part II
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
(c) 1. The Registrant sold the following non-registered shares of its
common stock in a private placement pursuant to Rule 506 of Regulation D and
Sec. 4(2) of the Securities Act of 1933, as amended (the "Act") at a price of
$.10 per share:
April 3, 1998 - 20,000 shares, $2,000.00;
2. June 1, 1998, 100,000 shares of common stock for $5,000.00 ($.05 per
share) pursuant to Sec. 4(2) of the Act.
3. In April 1998 the Registrant issued a total of 1,525,000 shares of
its common stock pursuant to 4(2) of the Act in accordance with employment
agreements of its subsidiary Capital Network of America, Corp.
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
On May 20, 1998, the change of name of the Registrant to QuikBIZ
Internet Group, Inc., was approved by consent of a majority of the shareholders
entitled to vote thereon.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
A. Exhibit 2.1 - Agreement and Plan of Meger Between DigiMedia
USA, Inc. and Nitros Franchise Corporation, dated May 14, 1997, incorporated by
reference to the Registrant's 10-QSB for the period ended June 30, 1997.
Exhibit 2.2 - Acquisition Agreement Between Algorhythm
Technologies Corporation and ADS Advertising Corporation, dated October 30,
1997, incorporated by reference to the Registrant's 10-QSB for the period ended
September 20, 1997.
Exhibit 2.3 - Acquisition Agreement between the Registrant and
QuikLab Multimedia Centers, Inc., dated June 25, 1998, incorporated by reference
to the Registrant's 8-K dated July 23, 1998.
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Exhibit 3.1 - Registrant's Articles of Incorporation as
amended, incorporated by reference to the Registrant's 10-QSB for the period
ended March 31, 1998 and 10-KSB for the period ended December 31, 1997.
Exhibit 3.2 - Registrant's Bylaws, incorporated by reference
to the Registrant's 10-QSB for the period ended March 31, 1998.
Exhibit 10.1 - Employment agreement between ADS Advertising
Corporation and Andrew Smith, dated October 30, 1997, incorporated by reference
to the Registrant's 10-QSB for the period ended September 30, 1997.
Exhibit 10.2 - Employment agreement between Capital Network of
America, Corp. and Kirk J. Girrbach, dated April 13, 1998, incorporated by
reference to the Registrants's 10-QSB for the period ended March 31, 1998.
Exhibit 10.3 - Employment agreement between Capital Network of
America, Corp. and Douglas A. Stepelton, dated April 13, 1998, incorporated by
reference to the Registrants's 10-QSB for the period ended March 31, 1998.
Exhibit 10.4 - Employment agreement between Capital Network of
America, Corp. and Anthony J. Ard, dated April 13, 1998, incorporated by
reference to the Registrants's 10-QSB for the period ended March 31, 1998.
Exhibit 10.5 - Amended employment agreement between Capital
Network of America, Corp. and Kirk J. Girrbach, dated July 6, 1998.
Exhibit 10.6 - Addendum to Employment Contract for Kirk J.
Girrbach, Douglas A. Stepelton and Anthony J. Ard dated July 7, 1998.
B. During the period ended June 30, 1998, the Registrant filed the
following 8Ks:
8K dated June 11, 1998: reporting the change in independent accountants
by the resignation of M.A. Cabrera & Co. PA.
8K dated June 24, 1998, reporting the change of independent accountants
by the retaining of Want & Ender CPA.
8
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.
QUIKBIZ INTERNET GROUP, INC.
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Registrant
Date: August 13, 1998 /s/DAVID BAWARSKY
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DAVID BARWARSKY, CEO
Date: August 13, 1998 /s/KIRK J. GIRRBACH
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KIRK J. GIRRBACH, Treasurer
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