Financial Statements - Exhibit Number 1
INTERTECH GLOBAL.com, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
APRIL 30, 2000
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITORS' REPORT 1
BALANCE SHEETS 2
STATEMENTS OF OPERATIONS 3
STATEMENTS OF STOCKHOLDERS' EQUITY 4
STATEMENTS OF CASH FLOWS 5
NOTES TO FINANCIAL STATEMENTS 6
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Chester M. Kearney
Certified Public Accountant
- --------------------------------------------------------------------------------
2-1/2 North Street, Houlton, Maine 04730-0744 Harley W. York, Jr., CPA
207-532-4271 Steve E. Bird, CPA
Herman Belanger, CPA
Paul J. Callnan, CPA
To the Board of Directors and Stockholders
of Intertech Global.com, Inc.
We have audited the accompanying balance sheet of Intertech Global.com,
Inc. (a development stage company) as of April 30, 2000, and the related
statements of operations, stockholders' equity, and cash flows for the years
then ended and for the period from October 22, 1997 (inception) to April 30,
2000. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Intertech
Global.com, Inc. as of April 30, 2000, and 1999, and the results of operations
and its cash flows for the years then ended and from October 22, 1997
(inception) to April 30, 2000, in conformity with generally accepted accounting
principles.
/s/ Chester M. Kearney
Houlton, Maine
June 16, 2000
1
INTERTECH GLOBAL.com, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
APRIL 30, 2000 AND 1999
ASSETS
2000 1999
---- ----
OTHER ASSSETS
Intangible Assets None 21,451
------- ------
None 21,451
======= ======
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable 439 None
------- ------
DUE TO SHAREHOLDER 20,400 None
------- ------
STOCKHOLDERS' EQUITY
Common stock
Par value $0.001, 200,000,000 authorized
21,451,103 issued and outstanding 21,451 21,451
Preferred stock
Class A, 9% cumulative dividend
non-convertible shares, par value $5.00
10,000,000 authorized, none outstanding None None
Class B, 12% cumulative dividend
non-convertible shares, par value $5.00
10,000,000 authorized, none outstanding None None
Deficit accumulated during the development stage (42,290) None
------- ------
(20,839) 21,451
------- ------
None 21,451
======= ======
See notes to financial statement
2
Chester M. Kearney, Certified Public Accountants
INTERTECH GLOBAL.com, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED APRIL 30, 2000 AND 1999
AND FOR THE PERIOD OCTOBER 22, 1997 (INCEPTION) TO APRIL 30, 2000
Since
2000 1999 Inception
---- ---- ---------
REVENUE None None None
------- ---- -------
EXPENSES
Legal and professional services 20,839 None 20,839
------- ---- -------
LOSS BEFORE CHANGE IN ACCOUNTING PRINCIPLE (20,839) None (20,839)
------- ---- -------
CHANGE IN ACCOUNTING PRINCIPLE
Cumulative effect to May 1, 1999, as of application of
SOP 98-5 "Reporting on the costs of Start-up Activities" (21,451) None (21,451)
------- ---- -------
NET LOSS (42,290) None (42,290)
======= ==== =======
See notes to financial statements
3
Chester M. Kearney, Certified Public Accountants
INTERTECH GLOBAL.com, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE PERIOD OCTOBER 22, 1997 (INCEPTION) TO APRIL 30, 2000
Common Stock Total
------------ Stockholders'
Number Amount Deficit Equity
------ ------ ------- ------
PURCHASE OF STOCK
October 22, 1997 19,800,000 19,800 19,800
---------- ------ -------
BALANCES
April 20, 1998 19,800,000 19,800 19,800
PURCHASE OF STOCK
March 31, 1999 1,651,103 1,651 1,651
---------- ------ -------
BALANCES
April 30, 1999 21,451,103 21,451 21,451
NET LOSS (42,290) (42,290)
---------- ------ ------- -------
BALANCES
April 30, 2000 21,451,103 21,451 (42,290) (20,839)
========== ====== ======= =======
See notes to financial statements
4
Chester M. Kearney, Certified Public Accountants
INTERTECH GLOBAL.com, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
FOR THE PERIOD OCTOBER 22, 1997 (INCEPTION) TO APRIL 30, 2000
Since
2000 1999 Inception
---- ---- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Cash paid for operating expenses (20,400) (10,530) (41,851)
------- ------- -------
Net cash used in operating activities (20,400) (10,530) (41,851)
------- ------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock 1,651 21,451
Advances from related parties 20,400 20,400
------- ------- -------
Net cash provided by financing activities 20,400 1,651 41,851
------- ------- -------
NET DECREASE IN CASH None (8,879) None
CASH, BEGINNING OF PERIOD None 8,879 None
------- ------- -------
CASH, END OF PERIOD None None None
======= ======= =======
RECONCILIATION OF NET LOSS TO NET CASH
USED IN OPERATING ACTIVITIES
Net loss (42,290) None (42,290)
------- ------- -------
Adjustments to reconcile net loss to net cash
used in operating activities
(Increase) decrease in intangible assets 21,451 (10,530)
Increase in accounts payable 439 439
------- ------- -------
21,890 (10,530) 439
------- ------- -------
NET CASH USED IN OPERATING ACTIVITIES (20,400) (10,530) (41,851)
======= ======= =======
See notes to financial statements
5
Chester M. Kearney, Certified Public Accountants
INTERTECH GLOBAL.com, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENT
(1) OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
Intertech Global.com, Inc. is a holding company. Development and growth of
the Company is based on the acquisition of operating companies engaged in
the internet and high-tech, natural resources and mining, and land
development sectors of the economy. The development of this integrated
holding company approach will begin with acquisition of a placer gold
mining company and an internet based e-commerce and multimedia company.
The Company maintains its accounting records and financial reports on the
accrual basis.
Management uses estimates and assumptions in preparing financial statements
in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and
liabilities and the reported revenues and expenses. Actual results could
vary from the estimates that were assumed in preparing the financial
statements.
(2) INTANGIBLE ASSETS
As of April 30, 1999, intangible assets consisted of organizational costs,
development costs, and fees not allocable to asset acquisitions totaling
$21,451. As of April 30, 2000, all intangible assets were expensed
resulting from a change in accounting principle as more fully described
below.
(3) DUE TO SHAREHOLDER
A stockholder has loaned the Company money to operate during the
development stage. There are no specific repayment terms or stated rate of
interest.
(4) CHANGE IN ACCOUNTING PRINCIPLE
The Company elected to adopt SOP 98-5 "Reporting on the costs of Start-up
Activities" effective May 1, 1999. SOP 98-5 requires that costs of start-up
activities be expensed as incurred instead of being capitalized.
Accordingly, all intangible assets were expensed as of May 1, 1999.
(5) DEVELOPMENT STAGE COMPANY
The Company is in the development stage of business operations. It is the
intent of the organizing shareholders to continue to fund operating
deficits through capital infusions and loans.
6
Chester M. Kearney, Certified Public Accountants