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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For Quarter Ended March 31, 2002
[_] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXHANGE ACT
Commission File No. 0-24262
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ADVEN, INC.
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(Exact name of registrant as specified in its charter)
Washington 91-1363905
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(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
3653 Hemlock Court
Reno, Nevada 89509
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(Address of principal (Zip Code)
executive offices)
(775)829-8812
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(Registrants telephone number
including area code)
Indicate by a 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 twelve months (or for such shorter period that
the Registrant was required to file such reports), and (2) has been subject
to such filing requirement for the past ninety days.
Yes [X] No [_]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date:
The number of shares of Registrant's Common Stock, $.0001 par, outstanding
on March 31, 2002 was 11,572,667.
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ADVEN, INC.
FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED
MARCH 31, 2002
TABLE OF CONTENTS
Balance Sheets...............................................................2
Statements of Operations and Other Comprehensive Loss........................3
Statements of Cash Flows.....................................................4
Notes to Financial Statements................................................5
1
ADVEN, INC.
BALANCE SHEETS
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March 31, 2002 (unaudited), and December 31, 2001
ASSETS
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MARCH 31, DECEMBER 31,
2002 2001
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CURRENT ASSETS
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Cash $ - $ 67
Prepaid legal fees 211 211
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Total current assets 211 278
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OTHER ASSETS
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Investment 20 103
Deferred tax asset (Net of valuation allowance of $388,861
and $387,504) - -
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Total other assets 20 103
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FIXED ASSETS
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Computer equipment 2,390 2,390
Accumulated depreciation (1,358) (1,243)
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Total fixed assets 1,032 1,147
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Total assets $ 1,263 $ 1,528
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES
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Bank overdraft payable $ 94 $ -
Accounts payable 2,545 759
Accrued interest 4,389 3,794
Advance from shareholder 30,069 28,819
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Total current liabilities 37,097 33,372
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COMMITMENTS AND CONTINGENCIES
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STOCKHOLDERS' EQUITY
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Common stock, $.0001 par value, 20,000,000 shares
authorized, 4,919,667 shares issued and outstanding 492 492
Additional paid-in-capital 1,171,520 1,171,520
Unrealized loss on securities available for sale (397,503) (397,420)
Accumulated deficit (810,343) (806,436)
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Total stockholders' equity (35,834) (31,844)
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Total liabilities and stockholders' equity $ 1,263 $ 1,528
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See Notes to the Interim Financial Statements
2
ADVEN, INC.
STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS
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For the Three Months Ended March 31, 2002, and 2001 (unaudited)
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, 2002 MARCH 31, 2001
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REVENUE $ - $ -
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EXPENSES
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General and administrative expenses (1,197) (1,169)
Accounting fees (2,000) (500)
Depreciation expense (115) (191)
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Net loss before interest expense and income taxes (3,312) (1,860)
Interest expense (595) (537)
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Net loss before income taxes (3,907) (2,397)
Provision for income taxes - -
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Net loss (3,907) (2,397)
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Unrealized loss on securities (net of tax of $0 for the
three months) (83) (11,564)
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Comprehensive loss $ (3,990) $ (13,961)
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Loss per share - basic and diluted $ (0.00) $ (0.00)
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Weighted average shares outstanding - basic and diluted 4,919,667 4,919,667
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See Notes to the Interim Financial Statements
3
ADVEN, INC.
STATEMENTS OF CASH FLOWS
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For the Three Months Ended March 31, 2002, and 2001 (unaudited)
MARCH 31, 2002 MARCH 31, 2001
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net loss $ (3,907) $ (2,397)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation expense 115 191
Increase (decrease) in accounts payable 1,786 (2,527)
Increase in bank overdraft payable 94 0
Increase in deferred tax asset (1,357) (4,747)
Increase in deferred tax valuation allowance 1,357 4,747
Increase in accrued interest 595 500
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Net cash used in operating activities (1,317) (4,233)
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CASH FLOWS FROM FINANCING ACTIVITIES
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Proceeds from shareholder advance 1,250 0
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Net cash provided by financing activities 1,250 0
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Net decrease in cash and cash equivalents (67) (4,233)
Cash and cash equivalents at December 31,
2001, and 2000 67 9,254
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Cash and cash equivalents at March 31,
2002, and 2001 $ 0 $ 5,021
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SUPPLEMENTARY INFORMATION
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During the three months ended March 31, 2002, and 2001, no amounts were actually
paid for interest or income taxes.
4
ADVEN, INC.
NOTES TO THE INTERIM FINANCIAL STATEMENTS
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1. BASIS OF PRESENTATION
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The accompanying unaudited interim financial statements of Iconet, Inc.
(the "Company") have been prepared by the Company in accordance with
generally accepted accounting principles in the United States of America,
pursuant to the Securities and Exchange Commission rules and regulations.
In management's opinion all adjustments necessary for a fair presentation
of the results for the interim periods have been reflected in the interim
financial statements. The results of operations for any interim period are
not necessarily indicative of the results for a full year. All adjustments
to the financial statements are of a normal recurring nature.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. Such disclosures are those that
would substantially duplicate information contained in the most recent
audited financial statements of the Company, such as significant accounting
policies and stock options. Management presumes that users of the interim
statements have read or have access to the audited financial statements and
notes thereto included in the Company's most recent annual report on Form
10-KSB.
2. GOING CONCERN
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These financial statements have been prepared assuming that the Company
will continue as a going concern. The Company has sustained recurring
losses over the past years and currently has no source of operating income.
The Company's cash flow and existing credit are insufficient to fund the
Company's cash flow needs based on the expenses expected to be incurred
during the next year. The President of the Company intends to advance funds
as necessary to fund the cash flow needs of the Company.
3. SUBSEQUENT EVENTS
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In April 2002 the Company issued 6,653,000 new common restricted shares to
one of its Directors. These shares were for payment in full of the amount
advanced by the Director to the Company as of December 31, 2001, and the
related interest on the balance as of the date of issue.
5
SIGNATURES
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In accordance with requirements of the Securities Exchange Act of 1934, the
Registrant caused this Report to be signed on its behalf by the Undersigned,
thereunto duly authorized.
ADVEN, INC.
Registrant
/s/ Henri Hornby
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Henri Hornby
May 14, 2002 President / Director
/s/ Sheila Ledrew
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Sheila Ledrew
May 14, 2002 Director
6