<pre>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
----------------------------------
FORM 10-QSB
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the transition period from
------------------
------------------
Commission file number 0-27495
---------
bib.net Corporation
-------------
(Exact Name of Registrant as Specified in its Charter)
Georgia 58-2493703
- - ------------------------------ -------------------
State of Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
2810 Wesley Plantation Drive, Duluth, Ga. 30096
- - --------------------------------------- ---- -----
Address of Principal Executive Offices) (Zip Code)
(770) 814-0992
------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
3885 Crestwood Parkway, Ste 200
Duluth, Ga. 30096
(Former Address)
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report)
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 and 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 such filing
requirements for the past 90 days. Yes [X] No [ ]
--- ---
At September 30, 2000 there were 16,438,666 shares of common stock outstanding.
bib.net Corporation
(A DEVELOPMENT STAGE COMPANY)
(UNAUDITED)
TABLE OF CONTENTS
Part I. Financial Information Page Number
-----------
Item 1. Financial Statements
Balance Sheets at September 30, 2000 and June 30, 2000 (Unaudited) 1
Statements of Operations for the three months ended September 30, 2
2000 and 1999 and (Unaudited)
Statements of Cash Flows for the three months ended September 30, 3
2000 and 1999 (Unaudited)
Notes to Financial Statements (unaudited) 4 - 7
Item 2. Management's Discussion and Analysis of Financial Condition and Results 11
of Operations Part II. Other Information
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signature Page 13
bib.net Corporation
(A Development Stage Company)
BALANCE SHEET
(Unaudited)
September 30, June 30,
2000 2000
--------- ---------
ASSETS
Software/Computers $ 24,428 $ 19,928
--------- ---------
Total Assets $ 24,428 $ 19,928
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 5,550 $ 5,550
--------- ---------
Total Current Liabilities 5,550 5,550
--------- ---------
Stockholders' Equity
Common stock, $0.001 par value, 50,000,000 shares authorized;
16,438,666 shares issued and outstanding 16,439 16,439
Additional paid in capital ----- ------
Deficit accumulated during the development stage (180,077) (180,077)
--------- ---------
Total Stockholders' Equity 14,378 14,378
--------- ---------
Total Liabilities and Stockholders' Equity $ 19,928 $ 19,928
========= =========
See accompanying notes to financial statements.
1
See accompanying notes to financial statements.
bib.net Corporation
(A Development Stage Company)
STATEMENT OF OPERATIONS
(Unaudited)
Three months Three months
ended ended
Sept. 30, Sept. 30,
2000 1999
---------- ----------- -----------
Revenue $ 4,707 $ -- $ --
---------- ----------- -----------
Expenses:
Selling, general and administrative 3,972 24,104
Depreciation -- -- --
---------- ----------- -----------
Total Operating Expenses 3,972 24,104
---------- ----------- -----------
Operating Loss (3,972) ( 24,104) --
---------- ----------- -----------
Net Loss $(3,972) ($ 24,104) --
========== =========== ===========
Per Share Information:
Weighted Average Shares Outstanding -
Basic and Diluted 16,438,666 16,438,666
========== =========== ===========
Net Loss Per Common Share - Basic and Diluted $( 0.004) ($ 0.0015) --
========== =========== ===========
See accompanying notes to financial statements.
2
bib.net Corporation
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(Unaudited)
Three months Three months
ended ended
Sept. 30, Sept. 30,
2000 1999
--------- -------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss ($3,893) ($24,104)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Consulting services contributed 3,893 24,104
Increase in operating assets:
Accounts payable & taxes payable -- --
--------- -------- ---------
Net cash used in operating activities: -- -- --
--------- -------- ---------
NET INCREASE IN CASH -- -- --
CASH, beginning of period 4,707 41,201 --
--------- -------- ---------
CASH, end of period $ 814 $17,097 $ --
========= ======== =========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
Interest $ --
Income taxes $ --
See accompanying notes to financial statements.
3
bib.net Corporation
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies
Organization
- - ------------
The Company was incorporated on July 15, 1988, in the State of
Florida under the name of American Realty Management Services
Corporation. On January 12, 1999, the Company merged with a
privately held company in the state of Georgia. On June
the company amended its Articles of Incorporation and the
name was changed to the bib.net Corporation and the company
effected a migration which changed its registration from
the state of Florida to the state of Georgia.
The Company is a development stage Company. The Company's primary
concentrations are in providing Internet content services and
consulting, online news, and information, classified advertising
to consumers and small to medium businesses.
Net Income (Loss) Per Share
- - ---------------------------
The net income (loss) per share is computed by dividing the
net income (loss) for the period by the weighted average of
common shares outstanding for the period. For the period(s)
outlined above, potential common shares and the computation
of diluted earnings per share are not considered as their
effect would be anti-dilutive.
Estimates
- - ---------
The preparation of the Company's financial statements in
conformity with generally accepted accounting principles requires
the Company's management to make estimates and assumptions that
affect the amounts reported in these financial statements and
accompanying notes. Actual results could differ significantly
from those estimates.
Software, Property and Equipment
- - --------------------------------
Software is being depreciated using the accelerated cost recovery
method over a life of seven years. This depreciation method is designed
to expense the cost of the asset over its estimated useful life.
Property and equipment are recorded at cost. Depreciation has been
calculated on the accelerated cost recovery method at rates based on
five to seven years estimated lives.
Impairment of Long-Lived Assets
- - -------------------------------
The Company accounts for the carrying value of long-lived assets
in accordance with the requirements of FAS 121 "Accounting for the
Impairment of Long-Lived Assets". As of September 30, 1998, no asset
impairment needs to be recognized.
4
Cash and Cash Equivalents
- - -------------------------
The Company considers all short-term, highly liquid investments with
an original maturity date of three months or less at date of
purchase to be cash equivalents. Cash and cash equivalents are stated
at cost, which approximates fair value.
Revenue Recognition
- - -------------------
Revenue is recognized by the Company upon the delivery of the
product or completion of services rendered.
Advertising Costs
- - -----------------
The Company expenses all advertising costs as incurred.
Research and Development
- - ------------------------
Research and development costs are expensed as incurred
Note 2. Stockholders' Equity
In 1998, the State of Florida approved the Company's restated
Articles of Incorporation, which increased its capitalization
from 1,000 common shares to 50,000,000 common shares. The par value
was unchanged at $.001.
5
Also, September 16 1998, the Company forward split its common
stock 1,000:1, increasing the number of outstanding common stock
shares from 1,000 to 1,000,000 shares.
Note 3. Year 2000
The Company has assessed its exposure to date sensitive computer
software programs that may not be operative subsequent to 1999 and has
implemented a requisite course of action to minimize Year 2000 risk and
ensure that neither significant costs nor disruption of normal business
operations are encountered. However, because there is no guarantee that
all systems of outside vendors or other entities on which the Company's
operations rely will be Year 2000 compliant, the Company remains
susceptible to consequences of the Year 2000 issue.
6
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains certain "forward-looking statements" as defined under
Section 21E of the Securities Exchange Act of 1934. The Company desires to take
advantage of the "safe harbor" provisions of Section 21E and is including this
statement for the express purpose of availing itself of the protection of the
safe harbor with respect to all such forward-looking statements. These
forward-looking statements, which are included in Management's Discussion and
Analysis, describe future plans or strategies and may include the Company's
expectations of future financial results. The words "believe", "expect",
"anticipate", "estimate", "project", and similar expressions identify
forward-looking statements. The Company's ability to predict results or the
effect of future plans or strategies or qualitative or quantitative changes
based on market risk exposure is inherently uncertain. Factors which could
effect actual results include but are not limited to i) change in general
market, ii) general economic conditions, both in the United States generally and
in the Company's market area, iii) legislative/regulatory changes, iv) demand
for products, v) competition, and other internet commerce issues. These factors
should be considered in evaluating the forward-looking statements, and undue
reliance should not be placed on such statements.
7
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
PLAN OF OPERATIONS
For the next twelve months, bib.net will continue its present business
operations providing Internet content services, consulting, development,
online news and information, and advertising for consumers and small- to
medium-sized businesses. The Company shall continue to provide online news
and information, Internet content services and consulting it needs to become a
successful enterprise.
The company's two main areas of concentration are content, consulting and
development:
Content consists of providing news and information to business users
and consumers who want more unique data other than what's generally available
online. The use of online reporters will continue to generate various reports.
Eventually, the company plans to build its own online advertising sales force
to generate direct sales from advertisers. Currently, sales of advertising is
farmed out to Valueclick.com with mixed results. The long-term future looks
promising in this area. As the company gains more readership of its content,
advertisers will come on board more abundantly.
Consulting. The company has realized a growing trend among small to medium
sized business and startups who seek valuable information and consulting
services from the company and as a result the company has entered into several
contractural agreements to provide such services. The company has expertise in
the following areas: Programming (Java, C++, Visual Basic, xhtml, SGML, XML,
Perl, SQL, DHTML and HTML) for complete Web integration and development and
general business formation and setup.
Overall, the company is confident in its ability to build a profitable business
model based on the areas it has chosen to concentrate on.
SEC registration. The company is still engaged in the process of registering
with the Securities And Exchange Commission under the information disclosure
Act of 1934. This process will take some time to complete and there is no
date set to when this process will end. Until this process is complete the
company will have a hard time of raising capital and retaining employees.
To ensure that we remain in business and operational at all times the
company forsee the need to issue more common stock to fund ongoing
operations and recruit talented people.
9
10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
---------------------
Three months ended Sept. 30, 2000 and Sept. 30, 1999.
At Sept. 30, 2000, the Company's total assets increased t0 $24,976
compared with total assets at December 31, 1999.
DISCUSSION OF OPERATIONS
------------------------
During the three months ended Sept. 30, 2000, the Development
Stage Company issued no additional shares of restricted common stock.
LIQUITY AND CAPITAL SOURCES
---------------------------
The Company plans to apply to the Securities and Exchange Commission
for an exemption Securities Offering under Regulation D, Rule 504
which was funded in the third quarter of 2001.
11
PART II OTHER INFORMATION
- - -------------------------
Item 1 LEGAL PROCEEDINGS
- - ---------------------------
The Company is currently anticipates being involved in a legal
proceedings incident with a former attorney which the company hired
to represent its SEC filing requirements. The company feels that the
quality of work received was subpar and on behalf of its sharesholders
will seek retribution.
Item 2 CHANGES IN SECURITIES AND USE OF PROCEEDS
- - ---------------------------------------------------
Not applicable
Item 3 DEFAULTS UPON SENIOR SECURITIES
- - -----------------------------------------
Not applicable
Item 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- - -------------------------------------------------------------
No matters were submitted for a vote of shareholders during the period
covered by this report.
Item 5 OTHER INFORMATION
- - ---------------------------
Not applicable
Item 6 EXHIBITS AND REPORT ON FORM 8-K
- - -----------------------------------------
(a) Exhibits
NUMBER DESCRIPTION
------ -----------
Financial Data Schedule
(b) Reports on Form 8-K
None.
12
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
bib.net Corporation
Date: November 6, 2000 By: /Rod Sailor
--------------------
Rod Sailor, CEO
13
</pre>