UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE 1934
ACT REPORTING REQUIREMENTS
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2001
Commission File No. 000-31131
EHOMEONE.COM, INC.
(Exact name of registrant as specified in its charter)
Nevada 88-0421459
(State of organization) (I.R.S. Employer Identification No.)
255 S. Orange Ave., Suite 600, Orlando, FL 32801
(Address of principal executive offices)
Registrant's telephone number, including area code (407) 206-6599
Check whether the issuer (1) filed all reports required to be
file 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. No X
There are 10,720,000 shares of common stock outstanding as of May
17, 2001
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The unaudited financial statements for the period ending
March 31, 2001
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
BALANCE SHEETS
March 31, March 31,
2001 2000
------------ -----------
ASSETS
Cash $ 41 $ 41
---------- ----------
Total Assets $ 41 $ 41
========== ==========
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts payable $ 6,400 $ 2,400
---------- ----------
Total Liabilities 6,400 2,400
Stockholders' Equity
Common stock, authorized 50,000,000
shares at $.001 par value, issued and
outstanding 220,000 shares 220 220
Additional paid-in capital 4,630 4,630
Deficit accumulated during the
development stage (11,209) (7,209)
---------- ----------
Total Stockholders' Equity (6,359) (2,359)
Total Liabilities and Stockholders' Equity $ 41 $ 41
========== ==========
The accompanying notes are an integral part of these
financial statements.
- 2 -
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENTS OF OPERATIONS AND DEFICIT
ACCUMULATED DURING THE DEVELOPMENT STAGE
( With Cumulative Figures From Inception )
Three months ending March 31, From Inception
2001 2000 Dec. 31, 1998, to
March 31, 2001
------------- ------------ --------------
Income $ 0 $ 0 0
Expenses
Organizational expense 0 0 400
Office and administrative 0 0 3,750
Office expenses 0 0 59
Professional fees 1,000 2,000 7,000
------------- ------------ -------------
Total expenses 1,000 2,000 11,209
Net loss (1,000) (2,000) $ (11,209)
=============
Retained earnings,
beginning of period (10,209) (5,209)
------------- ------------
Deficit accumulated during
the development stage $ (11,209) $ (7,209)
============= ============
Earnings ( loss ) per share
assuming dilution:
Net loss $ 0.00 $ (0.01) $ (0.06)
============= ============ =============
Weighted average shares
outstanding 220,000 220,000 202,500
============= ============ =============
The accompanying notes are an integral part of these
financial statements.
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FROM DECEMBER 31, 1998, ( Date of Inception ) TO MARCH 31, 2001
Common Stock Additional Deficit accumul- Total
Shares Amount Paid-in ated during the
Capital development
stage
---------- ----------- ---------- ------------ ----------
$ $ $ $
Balance, December 31, 1998 ---- ---- ---- ---- ----
Issuance of common stock for cash
December, 1998 100,000 100 0 0 100
Less net loss 0 0 0 (400) (400)
------- ------- ------- ----------- -------
Balance, December 31, 1998 100,000 100 0 (400) (300)
Issuance of common stock for cash
March, 1999 100,000 100 9,900 0 10,000
Less offering costs 0 0 (9,250) 0 (9,250)
Issuance of common stock for cash
September, 1999 15,000 15 2,985 0 3,000
Issuance of common stock for cash
November, 1999 5,000 5 995 0 1,000
Less net loss 0 0 0 (4,809) (4,809)
------- ------- ------- ----------- -------
Balance, December 31,1999 220,000 220 4,630 (5,209) (359)
Less net loss 0 0 0 (5,000) (5,000)
------- ------- ------- ----------- -------
Balance, December 31, 2000 220,000 220 4,630 (10,209) (5,359)
Less net loss 0 0 0 (1,000) (1,000)
------- ------- ------- ----------- -------
Balance, March 31, 2001 220,000 $ 220 $ 4,630 $ (11,209) $ (6,359)
======= ======= ======= =========== =======
The accompanying notes are an integral part of these financial statements
- 4 -
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
STATEMENTS OF CASH FLOWS
( With Cumulative Figures From Inception )
Three months ending March 31, From Inception,
2001 2000 Dec. 31, 1998, to
March 31, 2001
------------- ---------- -------------
CASH FLOWS PROVIDED BY
OPERATING ACTIVITIES
Net Loss $ (1,000) $ (2,000) $ (11,209)
Non-cash items included in net 0 0 0
loss
Adjustments to reconcile net loss
to
cash used by operating activity
Accounts payable 1,000 2,000 6,400
--------- --------- ----------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 0 0 (4,809)
CASH FLOWS USED BY
INVESTING ACTIVITIES 0 0 0
--------- --------- ----------
NET CASH USED BY
INVESTING ACTIVITIES 0 0 0
CASH FLOWS FROM FINANCING
ACTIVITIES
Sale of common stock 0 0 220
Paid-in capital 0 0 13,880
Less offering costs 0 0 (9,250)
--------- --------- -----------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 0 0 4,850
--------- --------- -----------
NET INCREASE IN CASH 0 0 $ 41
===========
CASH AT BEGINNING OF PERIOD 41 41
--------- ---------
CASH AT END OF PERIOD $ 41 $ 41
========= =========
The accompanying notes are an integral part of these
financial statements.
- 5 -
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2001 AND MARCH 31, 2000
NOTE A SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Company was incorporated on December 31, 1998,
under the laws of the State of Nevada. The business
purpose of the Company is to develop computer software
for the enhancement of communications.
The Company will adopt accounting policies and
procedures based upon the nature of future
transactions.
NOTE B OFFERING COSTS
Offering costs are reported as a reduction in the
amount of paid-in capital received for sale of the
shares.
NOTE C EARNINGS (LOSS) PER SHARE
Basic EPS is determined using net income divided by the
weighted average shares outstanding during the period.
Diluted EPS is computed by dividing net income by the
weighted average shares outstanding, assuming all
dilutive potential common shares were issued. Since
the Company has no common shares that are potentially
issuable, such as stock options, convertible securities
or warrants, basic and diluted EPS are the same.
NOTE D STOCK OFFERINGS
In March of 1999, the Company completed the sale of
100,000 shares of its common stock at $.10 per share
for $10,000. The proceeds were to be used for software
development and for working capital.
In September of 1999, the Company sold 15,000 shares of
its common stock at $.20 per share for a total of
$3,000. The proceeds were to be used for working
capital.
In November of 1999, the Company sold 5,000 shares of
its common stock at $.20 per share for a total of
$1,000. The proceeds were to be used for working
capital.
- 6 -
KENROY COMMUNICATIONS CORP.
( A DEVELOPMENT STAGE COMPANY )
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2001 AND MARCH 31, 2000
(continued)
NOTE D STOCK OFFERINGS (continued)
All of the above shares were issued pursuant to an
exemption from registration requirements under Section
4 (2) of the Securities Act.
NOTE E SUBSEQUENT EVENTS
Pursuant to a Share Exchange Agreement effective April
20, 2001, Kenroy Communications Corp. acquired all the
outstanding shares of eHomeOne.com, Inc., a Florida
corporation, totalling 2,750 shares, for a total of
10,000,000 shares of the Company. Following the
acquisition, eHomeOne.com, Inc., was legally dissolved
under the laws of the State of Florida on May 4, 2001.
On April 24, 2001 the Company amended its Articles of
Incorporation to change its name to eHomeOne.com, Inc.
- 7 -
ITEM 2. MANAGEMENT'S PLAN OF OPERATION
NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS
This statement includes projections of future results and
"forward-looking statements" as that term is defined in Section
27A of the Securities Act of 1933 as amended (the "Securities
Act"), and Section 21E of the Securities Exchange Act of 1934 as
amended (the "Exchange Act"). All statements that are included in
this Registration Statement, other than statements of historical
fact, are forward-looking statements. Although Management
believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Important factors
that could cause actual results to differ materially from the
expectations are disclosed in this Statement, including, without
limitation, those expectations reflected in forward-looking
statements contained in this Statement.
Plan of Operation
Subsequent to the period ending March 31, 2001, the Company
elected to begin implementing the begin implementing the business
plan of eHomeOne.com, Inc. (Florida), which offers comprehensive
real estate education and services necessary for the first time
homebuyer to purchase a home successfully and economically.
A substantial amount of time during fiscal year 2000 was spent on
the development of the Toolbox and its components. The research
and development time and costs consisted primarily of the
formation of the various strategic alliances, and the design and
production of the Toolbox and its various components. The
production costs of the Toolbox are relatively nominal, and
therefore the R & D costs are not substantially borne by the
Company's customers.
The Company anticipates that it will be hiring additional
employees as necessary. These employees will serve in a variety
of capacities, and include customer service representatives,
consultants, accounting staff, and general administrative. The
number of such employees and their hire dates is dependent upon
the Company's financing and growth.
The five year financial projections have been prepared based upon
the Company's experience and success, the estimated potential
Toolbox and Fast Track Program sales, ongoing membership dues,
and affiliate fees.
1. Sources of Revenue & Expenses
A.Sale of Toolbox The Company will market its Toolbox for
$39.95 per unit.
B.Fast Track Program The Company will market a Fast Track
Program to its Toolbox purchasers. The Company will perform
all of the necessary tasks and functions related to home
purchase for the customer, and the cost of this Program is
$395.
C.Annual Membership Dues Customers who purchase the Toolbox
will automatically be enrolled for a membership in the
Company, and be billed $19.95 per month for this membership,
with the first two months free.
D.Affiliate Fees The Company will receive ongoing monthly and
percentage fees for each home purchase from the various
respective affiliates, in addition. to the initial fee paid
to the Company at the formation of the affiliation.
E.Mortgage Fees The Company will receive three percent of the
mortgage amount for all mortgages generated through the
Company.
F.Management Fees Management fees reflect the costs of
overhead and executive supervision charged by Dynetech for
shared services and executive supervision within the
Company. Examples would be salaries, rent, local telephone
and electricity.
G.Salary Expense The initial monthly salary expense for the
Company will be $30,000. This includes all of the executive
and staff compensation necessary for operations.
H.Employee Benefits Employee benefits are reflected at 25
percent of gross salary.
I.Telephone The Company will incur long distance telephone
charges for inbound and outbound calls to its clients and
potential clients.
J.Miscellaneous Expense Miscellaneous expenses are budgeted at
1.5 percent of total gross revenue.
Funds Required and Their Use
The Company is seeking capital infusion in the amount of
$500,000.
The Company will use the funds for the following:
* Design and development of the Toolbox and Website;
* Design and development of a sales and marketing campaign,
including production and distribution of the Infomercial;
* Operating capital for the development and operations of the
Company; and
* Expansion of the Company into the regional marketplaces.
Competition
The Company is an insignificant participant among firms which
engage in business combinations with, or financing of,
development-stage enterprises. There are many established
management and financial consulting companies and venture capital
firms which have significantly greater financial and personal
resources, technical expertise and experience than the Company.
In view of the Company's limited financial resources and
management availability, the Company will continue to be at
significant competitive disadvantage vis-a-vis the Company's
competitors.
Employees
The Company's only employee at the present time is its sole
officer and director, who will devote as much time as the Board
of Directors determine is necessary to carry out the affairs of
the Company.
Subsequent Events
Pursuant to a Share Exchange Agreement (the "Agreement")
effective April 20, 2001, Kenroy Communications Corp., a Nevada
corporation (the "Company"), acquired one hundred percent (100%)
of all the outstanding shares of common stock ("Common Stock") of
eHomeOne.com, Inc., a Florida corporation ("eHomeOne"), for a
total of 10,000,000 shares.
The Agreement was approved by the unanimous consent of the Board
of Directors of Kenroy and the shareholders of eHomeOne on March
1, 2001.
On April 24, 2001, Kenroy changed its name to eHomeOne.com, Inc.
As of the effective date, eHomeOne's officers and directors
became the officers and directors of Kenroy. As of the Effective
Date, Mr. Ken Royceton resigned as the sole officer and director
of Kenroy. No subsequent changes in the officers, directors and
five percent shareholders of the Company are presently known.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any material pending legal
proceedings and, to the best of its knowledge, no such action has
been threatened by or against the Company.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
No issues of securities and no changes in the existing securities
took place during the period covered by this report. At the end
of the quarter there were 220,000 shares of common stock issued
and outstanding.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No such matters were submitted during the most
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS
2.1 Share Exchange Agreement (incorporated by referenced to
exhibit 2.1 on the Form 8-K, filed with the Securities and
Exchange Commission on April 25, 2001)
3 Articles of Share Exchange (incorporated by reference to the
exhibit 3.1 on the Form 8-K, filed with the Securities and
Exchange Commission on April 25, 2001)
3.1 The exhibit consisting of the Company's Articles of
Incorporation is attached to the Company's Form 10-SB, filed
on July 24, 2000. This exhibit is incorporated by reference
to that Form.
3.2 The exhibit consisting of the Company's Bylaws is attached
to the Company's Form 10-SB, filed on July 24, 2000. This
exhibit is incorporated by reference to that Form.
Reports on Form 8-K:
On April 25, 2001, the Company filed a Form 8-K disclosing the
terms of the Share Exchange Agreement between itself and
eHomeone.com, Inc. (Florida)
SIGNATURES
Pursuant to the requirements of Section 12 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.
eHomeOne.com, Inc.
By: /s/ Robert Blair
Robert Blair, President
By: /s/ Kerry Lucas
Kerry Lucas, CFO
Date: May 17, 2001