SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
For the quarterly period ended: February 29, 2000
Commission file number: 0-28465
CIK No. 0001098331
INTERSPACE ENTERPRISES, INC.
(Exact name of registrant as specified in this charter)
Colorado 84-1283938
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(State of other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
7825 Fay Avenue, #200, La Jolla, California 92037
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(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (858)456-3539
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to the filing
requirements for at least the past 90 days.
YES X NO
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As of February 29, 2000, there were 672,000 shares of $0.00001 par value common
stock outstanding
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
INTERSPACE ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
FEBRUARY 29, 2000
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash $ 5,951
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Total Assets $ 5,951
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES $ -
STOCKHOLDERS' EQUITY:
Common stock, $.00001 par value, 200,000,000 shares
authorized, 672,000 shares issued and
outstanding 7
Additional paid-in capital 6,793
(Deficit) accumulated during the development stage (849)
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Total stockholders' equitY 5,951
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,951
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SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
INTERSPACE ENTERPRISES, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
(UNAUDITED)
Cumulative from
January 1, 1998
(Inception of the
For the Three Development
Months Ended Stage) to
February 29, February 29,
2000 2000
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REVENUES
Interest income $ - $ 36
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Total Revenue - 36
ADMINISTRATIVE AND SELLING EXPENSES
General and administrative - 8,385
Interest expense, related party - 75
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Total Expenses - 8,460
OTHER INCOME
Note Payable Forgiveness (7,575) (7,575)
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Net Income $ 7,575 $ (849)
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SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
INTERSPACE ENTERPRISES, INC.
(A Development Stage Company)
Statement of Changes in Stockholders' Equity (Unaudited)
For the Three Months Ended February 29, 2000
Preferred Stock Common Stock Additional Paid Accumulated
Description Shares Dollars Shares Dollars in Capital Deficit Total
- ---------------------------------------------------------------------------------------------------------------------
Balance November 30, 1999 - - 672,000 $ 7 $ 6,793 $ ( 8,424) $ ( 1,624)
Net Income $ 7,575 $ 7,575
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Balance February 29, 2000 - - 672,000 7 6,793 (849) 5,951
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SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
INTERSPACE ENTERPRISES, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
HISTORY
Marathon Marketing Corp. (the Company), a development stage company, was
organized under the laws of the State of Colorado on November 21, 1991. The
Company commenced operations in January 1995 and became dormant on December 31,
1997. The Company is now in the development stage as defined in Financial
Accounting Standards Board Statement No. 7. The fiscal year end is August 31.
GOING CONCERN
The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company is in the
development stage and has not earned any revenues from operations to date.
The Company is currently devoting its efforts to locating merger candidates. The
Company's ability to continue as a going concern is dependent upon its ability
to develop additional sources of capital, locate and complete a merger with
another company, and ultimately, achieve profitable operations. The accompanying
financial statements do not include any adjustments that might result from the
outcome of these uncertainties.
INCOME TAXES
The Company has elected, with the shareholders' consent, to be taxed under
provisions of Subchapter S of the Internal Revenue Code. Under those provisions,
the Company does not pay federal corporate income taxes on its taxable income
and is not allowed a net operating loss carryover or carryback as a deduction.
Instead, the stockholders are liable for individual federal income taxes on
their respective shares of the Company's taxable income and, subject to certain
limitations, include their respective shares of the Company's net operating loss
in their individual income tax returns.
NOTE 2 - NOTE PAYABLE FORGIVENESS
On December 1, 1999, the note payable in the amount of $7,500, plus accrued
interest of $75 was forgiven by the note holder. The Compapny has recorded this
amount as other income.
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED FEBRUARY 29, 2000
COMPARED TO THE SAME PERIOD IN 1999.
No operations were conducted by the Company in the quarter period ended
February 29, 2000, and no revenues were achieved. The Company incurred no
operating expenses for the three month period in 2000 compared to $1,885 in the
same period in 1999. The Company recorded a net income of $7,575 for the 2000
period as a result of a forgiveness of debt, compared to a net operating loss of
($1,885) for the same period in fiscal year 1999.
The Company expects losses will continue until business can be achieved and
profitable operations are achieved. While the Company is seeking capital sources
for investment, there is no assurance that capital sources can be found. The net
income per share for the 2000 fiscal quarter was less than $0.01 per share as
compared to a net loss of less than ($.01) per share in the same fiscal quarter
of 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Company had cash capital of $5,951 at the end of the period. The
Company will be forced to make private placements of stock in order to fund
operations continuance until a merger candidate is found. No assurance exists as
to the ability to make private placements of stock. At February 29, 2000, it had
no accounts receivable. The Company currently has no liabilities.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings - None.
Item 2. Changes in securities - None.
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) The following are filed as Exhibits to this
Quarterly Report. The numbers refer to the Exhibit Table of
Item 601 of Regulation S-K:
None.
(b) Reports on Form 8-K filed during the three months
ended February 29, 2000. (incorporated by reference)
None.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf of the
undersigned thereunto duly authorized.
Dated: June 28, 2000
INTERSPACE ENTERPRISES, INC.
by:/s/Daniel P. Murphy
President