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 June 30, 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.)
421 E. Central Blvd., #1314, Orlando, FL 32801
(Address of principal executive offices)
Registrant's telephone number, including area code 407-246-0640
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 11,668,017 shares of common stock outstanding as of
September 12, 2001.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The unaudited financial statements for the period ending June 30,
2001.
EHOMEONE.COM, INC.
(A Development Stage Company)
BALANCE SHEET
JUNE 30, 2001
<Table>
<s> <c>
Assets
Current Assets $ 98
Cash and cash equivalents
Property and Equipment, net of accumulated depreciation $ 6,666
of $3,334
Production Costs 21,179
Other Assets 1,210
-----------
Total Assets $ 29,153
===========
Liabilities and Stockholder's Deficit
Current Liabilities
Accounts Payable $ 7,560
Accounts Payable - note interest 18,678
Accrued Expenses 1,871
Advances Payable - shareholder 2,750
Notes Payable 255,750
-----------
Total Liabilities $ 286,609
-----------
Stockholders' Deficit
Common Stock, par value $0.001,
50,000,000 shares authorized
11,568,017 shares issues and outstanding $ 11,568
Additional Paid in Capital 226,032
Deficit accumulated during development stage (495,056)
-----------
Total Stockholders' Deficit (257,456)
-----------
Total Liabilities and Stockholders' Deficit $ 29,153
===========
</Table>
The accompanying notes are an integral part of these financial
statements.
EHOMEONE.COM, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
(Unaudited)
<Table>
<s> <c> <c> <c> <c>
June 6, 2000
January 1, 2001 April 1, 2001 June 6, 2000 (Inception)
to June 30, to June 30, to June 30, to June 30,
2001 2001 2000 2001
Revenue $ 2,695 $ 2,695 $ - $ 3,550
------------ ------------- ------------- -------------
Marketing, General and 296,139 226,084 3,125 461,920
Administrative
Depreciation Expense 1,667 834 - 3,334
------------ ------------- ------------- -------------
Total Operating Expenses 297,806 226,918 3,125 465,254
------------ ------------- ------------- -------------
Loss from Operations before Other
Income (expense) and Income Taxes (295,111) (224,223) (3,125) (461,704)
Interest Income 65 18 - 337
Interest Expense (11,612) (6,548) - (33,689)
------------ ------------- ------------- -------------
Loss before Income Taxes (306,658) (230,753) (3,125) (495,056)
Income Tax Expense - - - -
------------ ------------- ------------- -------------
Net Loss $ (306,658) $ (230,753) $ (3,125) $ (495,056)
============ ============= ============= =============
Net Loss per share (basic and diluted) $ (0.03) $ (0.02) $ - $ (0.06)
------------ ------------- ------------- -------------
Weighted Average Shares Outstanding 10,448,005 11,568,017 3,636,364 8,355,134
------------ ------------- ------------- -------------
</Table>
The accompanying notes are an integral part of these financial statements.
EHOMEONE.COM, INC.
(A Development Stage Company)
STATEMENT OF STOCKHOLDERS' DEFICIT
JUNE 30, 2001
<Table>
<s> <c> <c> <c> <c> <c>
Deficit
Accumulated
Additional During
Common Stock Paid-In Development
Shares Amount Capital Stage Total
Balance - June 6, 2000 - $ - $ - $ - $ -
Issuance of Shares, June 13, 2000 3,636,364 $ 3,636 $ 8,864 $ - $ 12,500
Transfer of Shares by
Shareholder, June 13, 2000 - $ - $ 625 $ - $ 625
Net Loss - $ - $ - $ (188,398) $ (188,398)
------------ ---------- ---------- ----------- ------------
Balance December 31, 2000 3,636,364 $ 3,636 $ 9,489 $ (188,398) $ (175,273)
Issuance of Shares in
Settlement of Accrued Expense 5,454,546 $ 5,455 $ 13,295 $ - $ 18,750
Issuance of Shares for Services 909,090 $ 909 $ 2,216 $ - $ 3,125
Acquisition of Public Shell 220,000 $ 220 $ (220) $ - $ -
Issuance of Shares for Compensation 1,300,000 1,300 128,700 - 130,000
Issuance of Shares in
Settlement of Accounts Payable 48,017 $ 48 $ 72,552 $ - $ 72,600
Net Loss - $ - $ - $ (306,658) $ (306,658)
------------ ---------- ---------- ------------ ------------
Balance - June 30, 2001 11,568,017 $ 11,568 $226,032 $ (495,056) $ (257,456)
============ ========== ========== ============ ============
</Table>
The accompanying notes are an integral part of these financial statements.
EHOMEONE.COM, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(Unaudited)
<Table>
<s> <c> <c> <c>
June 6, 2000
January 1, 2001 June 6, 2000 (Inception)
to June 30, to June 30, to June 30,
2001 2000 2001
Cash Flows from Operating Activities
Net Loss $ (306,658) $(3,125) $(495,056)
Depreciation 1,667 - 3,334
Expenses paid by Stockholder - 625 625
Stock based Compensation 130,000 130,000
Stock issued for Services 3,125 2,500 5,625
Increase in Other Assets - - (1,210)
Increase in Payables / Accrued Expenses 46,997 - 119,459
------------ ----------- -----------
Net Cash Flows from Operating Activities $ (124,869) $ - $(237,223)
------------ ----------- -----------
Cash Flows from Investing Activities
Production Costs (9,725) - (21,179)
------------ ----------- -----------
Cash Flows from Financing Activities
Shareholder Advances - - 2,750
Proceeds from Notes Payable 87,500 - 255,750
------------ ----------- -----------
Net Cash Flows from Financing Activities $ 87,500 $ - $ 258,500
------------ ----------- -----------
(Decrease) Increase in Cash and Cash $ (47,094) $ - $ 98
Equivalents
Cash and Cash Equivalents - January 1, 2001 $ 47,192 $ - $ -
------------ ----------- -----------
Cash and Cash Equivalents - June 30, 2001 $ 98 $ - $ 98
============ =========== ===========
</Table>
The accompaning notes are an integral part of these financial statements.
EHOMEONE.COM, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
NOTE 1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
Nature of Operations
EhomeOne.com, Inc. (the "Company") is currently a development-
stage company under the provisions of the Financial Accounting
Standards Board ("FASB") Statement of Financial Accounting
Standards ("SFAS") NO. 7. The Company was incorporated under the
laws of the state of Florida on June 6, 2000. The Company
conducts its operations from offices located in Orlando, Florida.
The Company intends to offer comprehensive education and services
necessary for the first time homebuyer to purchase a home
successfully and economically. The Company will offer a unique
"Let us do it for you." A format which allows the Company to
direct and control the process. The intent is to create a
relationship with the targeted segment so that the Company can
benefit from the various affiliations and ongoing relationships
that will be developed. Such affiliations and relationships will
include, but not limited to, mortgages, appraisals, home
inspections, real estate office and home furnishings.
The Company's program will be marketed through an integrated
direct response consisting of a professionally produced 30-minute
television infomercial, a state of the art e-commerce Internet
website and a Home Buyer and Personal Service Workshop. The
infomercial will provide the opportunity for the viewer to
purchase the "First Time Homebuyers Toolbox" containing a variety
of components to facilitate the purchase of the home.
Effective April 20, 2001, the stockholders of EhomeOne.com, Inc.
acquired 10,000,000 shares (97.8%) of the issued and outstanding
common stock of KenRoy Communications Corp, Inc., a Nevada
Corporation ("KenRoy") in exchange for all of their shares of
EhomeOne.com, Inc. Currently the Company has 50,000,000 common
shares authorized, with 11,668,017 shares of common stock issued
and outstanding. There are currently approximately 70
shareholders in the Company. As a result of the transaction, the
Company's former shareholders obtained control of KenRoy
Communications Corp, Inc., a blank-check corporation with no
operations. For accounting purposes, this acquisition has been
treated as a re-capitalization of the Company. The accompanying
financial statements have been prepared in conformity with
generally accepted accounting principles, which contemplate
continuation of the Company as a going concern.
Interim Financial Information
The accompanying unaudited interim financial statements have been
prepared by the Company in accordance with generally accepted
accounting principals pursuant to regulation S-B of the
Securities and Exchange Commission. Certain information and
footnote disclosures normally included in audited financial
statements prepared in accordance with generally accepted
accounting principals have been condensed or omitted.
Accordingly, these interim financial statements should be read in
conjunction with the company's financial statements and related
notes as filed with form 8K for the initial period June 6, 2000
to December 31, 2000. In the opinion of the management, the
interim financial statements reflect all adjustments, including
normal recurring adjustments, necessary for fair presentation for
the interim periods presented. The results of operation for the
six months ended June 30, 2001 are not necessarily indicative of
results of operations to be expected for the full year.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amount of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
EHOMEONE.COM, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
NOTE 1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
Stock-Based Compensation
The Company has adopted the intrinsic method of accounting for
stock-based compensation in accordance with accounting principals
board opinion ("APB") No. 25, "Accounting for stock issued to
employees" and related interpretations. The Company has adopted
only the disclosure provisions of SFAS No. 123 "Stock based
compensation" for equity instruments issued to employees. The
Company applies all of the provisions of SFAS No. 123 to equity
instruments issued to other than employees.
1.3 million shares of restricted common stock were issued to
several key employees of the Company after the acquisition of
KenRoy. These shares have been valued at $130,000 in the
financial statements.
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased
with original maturities of three months or less to be cash
equivalents.
Property and Equipment
Property and Equipment are stated at cost and are depreciated
using the straight-line method over their estimated useful lives,
generally three years.
Maintenance and repairs are charges to expense as incurred.
Concentration of Credit Risk
The Company places its' cash in what it believes to be credit
worthy financial institutions. However, cash balances may exceed
FDIC insured levels at various times during the year.
Fair Value of Financial Instruments
The carrying value of cash and cash equivalents, accounts
payable, interest payable and accrued expenses, and advances
payable approximates fair value due to the relatively short
maturity of these instruments. The carrying value of notes
payable approximates fair value as the instruments were issued
currently at market rates.
Long-lived Assets
Long-lived assets are reviewed for impairment whenever events or
changes in circumstances indicate that the related carrying
amount may not be recoverable. Recovery of assets to be held and
used is measured by a comparison of the carrying amount of the
asset to the future net cash flows expected to be generated by
the asset. If such assets are considered to be impaired, the
impairment to be recognized is measured by the amount by which
the carrying amount of the asset exceeds the fair value of the
asset. Assets to be disposed are reported at the lower of the
carrying amount or fair value less the cost to sell.
EHOMEONE.COM, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
NOTE 1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
Income Taxes
Income taxes are provided for based on the liability method of
accounting pursuant to SFAS NO. 109, "Accounting for Income
Taxes". Deferred income taxes, if any, are recorded to reflect
the tax consequences on future years of differences between the
tax bases of assets and liabilities and their financial reporting
amounts at each year-end.
Earnings Per Share
The Company calculates earnings per share in accordance with SFAS
No. 128, "Earnings Per Share", which requires presentation of
basic earnings per share ("BEPS") and diluted earnings per share
("DEPS"). The computation of BEPS is computed by dividing income
available to common stockholders by the weighted average number
of outstanding shares during the period. DEPS gives effect to all
dilutive potential common shares outstanding during the period.
The computation of DEPS does not assume conversion, exercise or
contingent exercise of securities that would have anti-dilutive
effects on earnings. As of June 30, 2001, the Company has no
securities that would effect loss per share if they were to be
dilutive.
Comprehensive Income
SFAS NO. 130, "Reporting Comprehensive Income", establishes
standards for the reporting and display of comprehensive income
and its' components in the financial statements. The Company had
no items of other comprehensive income and therefore has not
presented a statement of comprehensive income.
Production Costs
Production costs represent costs incurred in connection with the
Company's infomercial as well as the development of the Company's
website. When completed, the cost of the infomercial and the
website will be amortized over their expected economic lives.
Corporate Reorganization and Reverse Merger
On March 12, 2001, KenRoy and the Company executed a Share
Exchange Agreement (the "Agreement") that provided that KenRoy
would issue and exchange 10,000,000 shares of its authorized
common stock for all of the Company's 2,750 issued and
outstanding shares. As a result of this transaction the former
shareholders of EhomeOne.com, Inc. acquired or exercised control
over a majority (97.8%) of the outstanding shares of KenRoy.
Accordingly, the transaction has been treated for accounting
purposes as a re-capitalization of the Company and, therefore,
these financial statements represent a continuation of the
accounting acquirer, the Company, not KenRoy, the legal acquirer.
In accounting for this transaction:
i) The Company is deemed to be the purchaser and surviving
company for accounting purposes. Accordingly, its net assets are
included in the balance sheet at their historical book values.
ii) Control of the net assets and business of KenRoy was
acquired effective April 20, 2001 (the "Effective Date"). The
Company has accounted for this transaction as a purchase of the
assets and liabilities of KenRoy. At the effective date KenRoy
had no assets or liabilities.
EHOMEONE.COM, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
NOTE 1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
Corporate Reorganization and Reverse Merger
(continued)
iii) The consolidated statements of operations and cash flows
include the Company's results of operations and cash flows from
June 6, 2000 (date of inception) and KenRoy's results of
operations from the Effective Date.
NOTE 2
PROPERTY AND EQUIPMENT
Property and equipment is summarized as follows:
Furniture, Fixtures and Equipment $ 10,000
Less: Accumulated Depreciation 3,334
----------
$ 6,666
==========
Depreciation expense for the period ended June 30, 2001 was
$1,667.
NOTE 3
NOTES PAYABLE
The Company has been advanced funds aggregating $255, 750
pursuant to a loan agreement with Interfund Management Ltd.
("IML") dated August 25, 2000. The advances bear interest at the
rate of 12% per year and are repayable upon demand. The advances
are secured by all of the tangible assets of the Company, and by
all of the outstanding stock of the Company.
IML was the firm that assisted the Company in locating KenRoy, a
suitable publicly traded company. IML is also assisting the
Company in facilitating an equity private placement for working
capital through the sale of restricted common stock.
As consideration for providing funds pursuant to this loan
agreement, the Company issued IML 1,500 shares of the outstanding
common stock. These shares represented 60% of the Company's
outstanding common stock shares at the time in which it entered
the agreement.
EHOMEONE.COM, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2001
NOTE 4
NON-CASH FINANCIAL ACTIVITIES
* 250 shares of the Company's common stock valued at $3,125
were issued to Harlaxton, LTD prior to the acquisition of
KenRoy for services rendered and in order to secure a
management contract.
* 48,017 shares of the Company's common stock valued at
$72,600 were issued to Dynetech Corporation after the
acquisition of KenRoy in order to settle accounts
payable.
NOTE 5
RELATED PARTY TRANSACTIONS
The Company had entered into an amended agreement with Dynetech
Corporation, a stockholder, through which the stockholder
provided management and office space to the Company. The term of
the amended agreement was one year which commenced August 1, 2000
and was subsequently cancelled as of March 31, 2001. The prior
agreement commenced June 13, 2000.
The agreement provided for a monthly management fee of 5% of the
Company's gross monthly revenues, with a minimum of $5,000 per
month and a maximum of $15,000 per month. Management fees
pursuant to this agreement included in the previous year-end's
(December 31, 2000) statement of operations totaled $32,500. The
total Management fees pursuant to this agreement included in the
current statement of operations total $15,000.
This agreement also provided for a monthly rental of $2,600 per
month (previously $4,600 per month). Total rent expense recorded
in the previous year-end's (December 31, 2000) statement of
operations totaled $17,300. Total rent expense included in the
current statement of operations total $7,800.
The entire debt of $72,600 was settled after the acquisition of
KenRoy for a total of 48,017 shares of common stock.
NOTE 6
The accompanying financial statements have been prepared assuming
the Company will continue as a going concern. As of June 30, 2001
the Company has incurred operating losses for the period in the
amount of $306,658, has no established source of revenue and has
a working capital deficit of $286,511. The Company has performed
a reverse merger with a publicly traded company. However, this
company was non-operational and had no assets or liabilities. The
Company expects to begin generating revenue towards the later
part of 2001 and also anticipates raising funds through equity
offerings to fund its operations. There can be no assurances that
sufficient funds will be available on terms acceptable or at all.
If the Company is unable to obtain such funds, it will be forced
to scale back operations, which would have an adverse effect on
the Company's financial condition and results of operations.
ITEM 2. MANAGEMENT'S PLAN OF OPERATION
NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS
These statements are forward-looking in nature and involve a
number of risks and uncertainties. Forward-looking statements
include statements about our future business plans and
strategies, statements about our need for working capital, future
revenues, results of operations and most other statements that
are not historical in nature. In this Report, forward-looking
statements are generally identified by the words "intend",
"plan", "believe", "expect", "estimate", "could", "may", "will",
and the like. Investors are cautioned not to put undue reliance
on forward-looking statements. Except as otherwise required by
applicable securities statutes or regulations, the Company
disclaims any intent or obligation to update publicly these
forward-looking statements, whether as a result of new
information, future events or otherwise. Because forward-looking
statements involve future risks and uncertainties, these are
factors that could cause actual results to differ materially from
those expressed or implied.
Plan of Operation
eHomeOne is a team of real estate and mortgage banking
professionals who intend to offer comprehensive real estate
education and services necessary for the first time homebuyer to
purchase a home successfully and economically. Accordingly, the
Company has developed the First Time Homebuyers Toolbox, a
package filled with information, programs and tips that put home
ownership in reach of virtually every working American. The
centerpiece of the Tool Box is the Zero Down Payment Program. The
Company also teaches potential homeowners how to make their way
through the process of property buying, using our highly
successful Real Estate Advantage System. This system is
applicable to real estate investors as well. The Company intends
to create a relationship with the target segment so that the
Company can benefit from the various affiliations and ongoing
relationships that will be developed. Such affiliations and
relationships will include, but not be limited to, mortgages,
appraisals, home inspections, real estate offices and home
furnishings.
Strategic Partners
Through an Executive Services Agreement and an amended Agreement,
the Company has engaged Dynetech Corporation to provide office
space as well as executive and consultation services as follows:
Targeted strategic development;
Sales and marketing;
Efficient and comprehensive operations;
Financial and managerial support;
Enterprise funding;
Product development and enhancement; and
E-Commerce applications and solutions
As consideration for the above services, the Company will pay
Dynetech a monthly management fee of 5% of the Company's gross
monthly revenue, with a minimum of $5,000 per month and a maximum
of $15,000 per month. Management fees pursuant to this agreement
included in the statement of operations totaled $32,500. The
agreement also provides for a monthly rental of $2,600 per month
(previously $4,600 per month). Total rent expense recorded in the
statement of operations is $17,300. The Company is also obligated
to obtain and maintain insurance to protect the Company and
Dynetech. The Company is also required to maintain responsibility
for its day to day operations, including but not limited to, its
personnel, payment of all liabilities and obligations incurred.
Dynetech is providing the Company with infrastructure and
operational services supporting incubation and acceleration of
the Company. Those services reduce the overall cost and overhead
associated with operation of the Company.
A. Infrastructure: The operational infrastructure of Dynetech
is already established and operating from a 17,900 square foot
facility located in Orlando, Florida. The office infrastructure
is already in place and both sufficient and adequate to handle
the needs of an operating company of up to 130 employees and $30
million in annual revenues without any additional infrastructure
investment. The facility houses state of the art Computer
hardware and software configurations, including, Vignette Story
Server, a web- based design program, the Great Plains accounting
system and iMIS, a full institutional memory software system.
B. Human Resources: Dynetech has an established and experienced
executive, senior management and middle management staff already
in place.
C. Sales and Marketing: Dynetech through its direct marketing,
seminar and training programs has a prospect database of 500,000
individuals and a buyer database of 50,000 individuals and
companies, all of whom represent a critical component of the
marketing strategy.
The presence of this corporate intellectual capital provides
major advantages to what is otherwise a start-up:
* The Company need not spend time on administrative or
operational infrastructure;
* The Company already has a financial and on-going
relationship with a strong prospect and buyer community;
* The Executive, Managerial and Human Resources are already in
place;
* The Company will begin with a substantial database of
prospective customers;
* The Company has already developed a state of the art
industry Website;
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.
2. Financial Projections
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.
On August 25, 2000, the Company entered into a Loan Agreement
with Interfund Management Ltd. Under the terms of the Agreement,
Interfund loaned $100,000 to the Company as a negotiable
promissory note. The note shall provide for simple interest at
the lessor of 1% per month, or the maximum allowed under the laws
of the State of California. The principal of the note plus all
accrued interest shall be due and payable upon demand. The loan
was secured by a UCC-1 filing by the Company in favor of
Interfund, which encumbered all tangible and intangible assets of
eHomeOne. The loan was secured by 100% of the outstanding stock
of the Company.
On September 27, 2000, the Company entered into a Letter of
Understanding with HotSocket in which HotSocket will implement a
web-based marketing campaign focused on gathering consumers that
wish to accept the program for a trial offer ("Initial
Campaign"). HotSocket will also design, build and host "offer"
web pages on behalf of the Company. In consideration for the
aforementioned terms, the HotSocket will be paid a transaction
fee of $30 every time a consumer completes all the information on
an offer page and accepts the trial offer and pays the $3.95
shipping and handling charge. In addition, the Company will pay
HotSocket $45.00 for each trial member who is converted to a
fully paid customer. The slotting fee for the Initial Campaign
will be $7,500. In order to implement the Initial Campaign, the
Company has granted HotSocket a non-exclusive licent to reproduce
and display any content provided to HotSocket.
On November 22, 2000, the Company entered into a letter agreement
with Globe Home Warranty in which Globe Home Warranty will
provide a home warranty for a cost to the Company of $200.00 per
warranty. The Company will continue to develop joint marketing
materials, subject to the approval of both parties, which will
list eHomeOne in such materials as a sponsor of, or from whom the
warranty is being provided.
On November 13, 2000, the Company entered into a Wholesale
Independent Contractor Agreement, in which the Company will act
as the Independent Contractor and promote and market the
opportunity to provide to retail sellers the Equity Savings
Program for their retail clients.
On November 14, 2000, the Company entered into another
Independent Contractor Agreement with Economic Advantages
Corporation. The Company will act as the Independent Contractor,
promoting and marketing the Equity Savings Program of Economic
Advantages Corporation.
On November 15, 2000, the Company entered into an Agreement with
Edge Solutions, Inc., a debt arbitration specialist who has
devised a program to assist customers in reducing or eliminating
their debt. Edge Solutions has agreed to include their program to
reduce or eliminate debt in the Company's Toolbox. Both companies
have also agreed to provide to each other leads captured by each
company and which would be deemed as a qualified lead, based upon
criteria provided to each other, for each other's products and
services. As consideration, Edge shall receive 8% of any all fees
and monies generated from a lead provided by Edge. eHomeOne will
receive 20% of the first two payments received for every lead
which enrolls in or becomes involved with Edge Solutions.
On December 7, 2000, the Company entered into a Product
Representative Agreement with Time & Money, L.L.C. Through this
agreement, eHomeOne will be engaged by Time & Money to sell and
promote their products, through direct marketing, telemarketing,
and coaching. The products consist of Money Mastery, in which the
Company is purchasing their base product, which consists of books
and tapes on money management for $10 per unit. Under the
agreement, the Company can also offer people who receive the
Money Mastery product additional product and coaching packages,
which will be fulfilled by Money Mastery. The Company will
receive 50% of the sales price.
On March 21, 2001, the Company entered into a letter agreement
with The Great American Flooring Show, which has agreed to supply
carpet at $4.50 per yard, to be available at the Carpets Plus
stores throughout the United States. The carpet will be FHA
approved and will be available in a minimum of six colors. This
carpeting will be available to the purchasers of the Company's
Toolbox.
Competition
The Company has researched and reviewed competitors in the
Company's two business arenas. Competition on the Internet and
Television is strong throughout the financial services industry,
but not a single company offers a thorough real estate
educational and service-based program geared towards the first
time homebuyer.
Employees
Currently, the Company has four full-time employees and engages
independent contractors on an as needed basis.
Current Developments
Pursuant to a Share Exchange Agreement effective April 20, 2001,
Kenroy Communications Corp., a Nevada corporation, acquired one
hundred percent (100%) of all the outstanding shares of common
stock of eHomeOne.com, Inc., a Florida corporation, for a total
of 10,000,000 shares.
On April 1, 2001, eHomeOne (Florida) accepted the resignations of
Fred Rewey and Laurence Pino as members of the board of
directors, effective immediately. However, they continued to act
in that capacity until such a time that the Company could effect
the exchange agreement.
On April 24, 2001, Kenroy changed its name to eHomeOne.com, Inc.
and changed its principal executive offices to 255 S. Orange
Ave., #600, Orlando, FL 32801.
On April 30, 2001, the Company issued 500,000 shares of its
common stock to Keith Collins, its current Vice-President,
Secretary and Director pursuant to the terms of an employment
agreement entered into on April 19, 2001.
On April 19, 2001 and May 3, 2001, the Company entered into an
employment agreement with Gerard Kessler and Robert Blair,
respectively by which Gerard Kessler would receive 50,000 shares
of the Company's common stock and Robert Blair would receive
750,000 shares of the Company's common stock.
On May 28, 2001, the Company accepted the resignation of Douglas
Shane Hackett as a member of the board of directors, effective
immediately.
Subsequent Events
Subsequent to period ended June 30, 2001, the Company once again
changed its principal executive offices to 421 E. Central Blvd.,
#1314, Orlando, FL 32801.
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
On April 30, 2001, the Company issued 500,000 shares of its
common stock to Keith Collins, its current Vice-President,
Secretary and Director pursuant to the terms of an employment
agreement entered into on April 19, 2001.
On April 19, 2001 and May 3, 2001, the Company entered into an
employment agreement with Gerard Kessler and Robert Blair,
respectively by which Gerard Kessler would receive 50,000 shares
of the Company's common stock and Robert Blair would receive
750,000 shares of the Company's common stock.
On July 6, 2001, the Company issued 100,000 shares of its common
stock to Communication Connection, Inc. pursuant to the terms of
a consulting agreement entered into on March 1, 2001.
On July 6, 2001, the Company issued 48,017 shares of its common
stock to Dynetech Corporation pursuant to the terms of an
agreement entered into in April 2001, which references the
Infrastructure Agreement entered into on August 22, 2000.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No such matters were submitted during the most recent quarter.
ITEM 5. OTHER INFORMATION
On July 12, 2001, the Company appointed Rick Previdi as its Chief
Financial Officer.
Disclosure Statement Regarding Changes In Accountants
The Company's principal accountant, David Coffey, C.P.A., was
dismissed as of August 17, 2001. The principal accountant's
report on the financial statements for the two most recent fiscal
years was modified as to uncertainty that the Company will
continue as a going concern. The decision to change accountants
was approved by the board of directors.
There were no disagreements during the registrant's two most
recent fiscal years and the subsequent interim period through
August 17, 2001 (date of dismissal) with the former accountant on
any matter of accounting principles or practices, financial
statement disclosure, or auditing scope or procedure, which would
have caused it to make reference to the subject matter of the
disagreement(s) in connection with this report.
A new accountant has been engaged as the principal accountant to
audit the issuer's financial statements. The new accountant is
Merdinger, Fruchter, Rosen & Corso, P.C. and was engaged as of
January, 2001. Neither the Company nor anyone acting on its
behalf consulted the new accountant regarding the application of
accounting principles to a specific completed or contemplated
transaction, or the type of audit opinion that might be rendered
on the small business issuer's financial statements, as part of
the process of deciding as to the accounting, auditing or
financial reporting issue.
The Company has provided the former accountant with a copy of the
disclosures it is making in response to this Item. The Company
has requested the former accountant to furnish a letter addressed
to the Commission stating that it agrees with the statements made
by the Company. The Company has filed the letter as an exhibit to
this registration statement containing this disclosure.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS DESCRIPTION
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.
10.1 Employment Agreement with Robert Blair
10.2 Employment Agreement with Keith Collins
10.3 Employment Agreement with Gerard Kessler
10.4 Agreement with Dynetech Corporation
10.5 Consulting Agreement with Communication Connection,
Inc.
16 Letter on change in certifying accountants
Reports on Form 8-K:
On April 25, 2001, the Company filed a current report on Form 8-
K, stating its acquisition of and name change to eHomeOne.com,
Inc.
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/ Rick Previdi
Rick Previdi, CFO
Date: September 14, 2001