U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(X) Quarterly report under section 13 or 15(d) of the Securities Exchange Act
of 1934 for the quarterly period ended September 30, 2003.
Commission File No: 333-68312
RESERVENET, INC.
(Name of small business in its charter)
DELAWARE 94-3381088
(State or other jurisdiction of Incorporation) (IRS Employer Id. No.)
3701 Sacramento St. #323
San Francisco, CA 94118
(Address of Principal Office) Zip Code
Issuer's telephone number: (415) 752-2578
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act during the past 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
Check whether the issuer has filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court. Yes X No
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date. At September 30, 2003, the following
shares of common were outstanding: Common Stock, par value of $0.0001, 1,900,000
shares.
Transitional Small Business Disclosure Format (Check one): Yes X No
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS AND EXHIBITS
The unaudited financial statements of registrant for the period ended September
30, 2003 follow. The financial statements reflect all adjustments, which are, in
the opinion of management, necessary to present a fair statement of the results
for the periods presented.
ReserveNet, Inc.
(a Development Stage Company)
Balance Sheet
(unaudited)
September 30,
2003
------------
Assets
Current assets:
Cash $ 143
------------
Total current assets 143
------------
$ 143
============
Liabilities and Stockholders' (Deficit)
Current liabilities:
Due to shareholder $ 6,682
------------
Total current liabilities 6,682
------------
Stockholders' (deficit):
Common stock, $0.0001 par value, 100,000,000 shares
authorized, 1,900,000 shares issued and outstanding 190
Additional paid-in capital 28,310
(Deficit) accumulated during development stage (35,039)
------------
(6,539)
------------
$ 143
============
See accompanying notes to financial statements.
ReserveNet, Inc.
(a Development Stage Company)
Statements of Operations
(unaudited)
Three Months Ending Nine Months Ending
September 30, September 30, October 31, 2000
--------------------------- ---------------------------- (Inception) to
2003 2002 2003 2002 September 30, 2003
------------- ------------ ------------- ------------ ------------
Revenue $ - $ - $ - $ - $ -
------------- ------------ ------------- ------------ ------------
Expenses:
General and administrative expenses 2,279 1,605 4,263 6,871 34,239
General and administrative expenses - related party - - - 500 800
------------- ------------ ------------- ------------ ------------
Total expenses 2,279 1,605 4,263 7,371 35,039
------------- ------------ ------------- ------------ ------------
Net (loss) $ (2,279) $ (1,605) $ (4,263) $ (7,371) $ (35,039)
============= ============ ============= ============ ============
Weighted average number of
common shares outstanding - basic and fully diluted 1,900,000 1,900,000 1,900,000 1,900,000
============= ============ ============= ============
Net (loss) per share - basic & fully diluted $ (0.00) $ (0.00) $ (0.00) $ (0.00)
============= ============ ============= ============
See accompanying notes to financial statements.
ReserveNet, Inc.
(a Development Stage Company)
Statements of Cash Flows
(unaudited)
Nine Months Ending
September 30, October 31, 2000
---------------------------------------- (Inception) to
2003 2002 September 30, 2003
------------------ ------------------ ----------------
Cash flows from operating activities
Net (loss) $ (4,263) $ (7,371) $ (35,039)
Adjustments to reconcile net (loss) to
net cash (used) by operating activities:
(Decrease) in accounts payable (465) - -
------------------ ------------------ ----------------
Net cash (used) by operating activities (4,728) (7,371) (35,039)
------------------ ------------------ ----------------
Cash flows from financing activities
Issuances of common stock - - 28,500
(Increase) decrease in due from shareholder - 755 (19,527)
Increase in due to shareholder 4,900 1,032 26,209
(Decrease) in checks issued in excess of available cash (29) - -
------------------ ------------------ ----------------
Net cash provided by financing activities 4,871 1,787 35,182
------------------ ------------------ ----------------
Net increase (decrease) in cash 143 (5,584) 143
Cash - beginning - 5,720 -
------------------ ------------------ ----------------
Cash - ending $ 143 $ 136 $ 143
================== ================== ================
Supplemental disclosures:
Interest paid $ - $ - $ -
================== ================== ================
Income taxes paid $ - $ - $ -
================== ================== ================
See accompanying notes to financial statements.
ReserveNet, Inc.
(a Development Stage Company)
Notes
Note 1 - Basis of presentation
The interim financial statements included herein, presented in accordance with
United States generally accepted accounting principles and stated in US dollars,
have been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the Company believes
that the disclosures are adequate to make the information presented not
misleading.
These statements reflect all adjustments, consisting of normal recurring
adjustments, which, in the opinion of management, are necessary for fair
presentation of the information contained therein. It is suggested that these
interim financial statements be read in conjunction with the financial
statements of the Company for the period ended December 31, 2002 and notes
thereto included in the Company's Form 10-KSB. The Company follows the same
accounting policies in the preparation of interim reports.
Results of operations for the interim periods are not indicative of annual
results.
Note 2 - Going concern
The Company's financial statements are prepared using the generally accepted
accounting principles applicable to a going concern, which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. However, the Company has not commenced its planned principal
operations and it has not generated any revenues. The future of the Company is
dependent upon its ability to obtain financing and upon future profitable
operations from the development of its new business opportunities. An officer of
the Company has agreed to loan the Company funds as needed to sustain business
for an unspecified period. However, the Company is dependent upon its ability to
secure equity and/or debt financing and there are no assurances that the Company
will be successful, without sufficient financing it would be unlikely for the
Company to continue as a going concern.
These conditions raise substantial doubt about the Company's ability to continue
as a going concern. These financial statements do not include any adjustments
that might arise from this uncertainty.
Note 3 - Related party transactions
As of September 30, 2003, an officer, director and shareholder of the Company is
owed a total of $6,682 due to various expenses paid on behalf of the Company.
The Company does not lease or rent any property. Office services are provided
without charge by a director. Such costs are immaterial to the financial
statements and, accordingly, have not been reflected therein. The officers and
directors of the Company are involved in other business activities and may, in
the future, become involved in other business opportunities. If a specific
business opportunity becomes available, such persons may face a conflict in
selecting between the Company and their other business interests. The Company
has not formulated a policy for the resolution of such conflicts.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Plan of Operation
ReserveNet is a development stage company, whose business plan is to provide
consumer reservation services to the restaurant industry. ReserveNet plans to
develop a web-based reservation system that allows consumers to place
reservations directly with restaurants through the www.ReserveNet.ws website.
The company anticipates revenue will be generated through restaurant
subscriptions and advertising through its website. Consumers will have the
ability to search an interactive database of available restaurant reservations
that may be refined to a particular geographic location convenient to the
consumer. The search may also be further refined by type of cuisine, average
price, and/or favorable restaurant reviews.
ReserveNet currently relies solely upon its Founder to fund on-going operations
and support product development. The company has not received any additional
financing commitments. There can be no assurance that the founder will continue
to provide the company with financial support. Should the founder cease to
provide financial support and ReserveNet fails to secure other financing, the
company may become dormant or face a significant probability of failure. Even if
the ReserveNet were to successfully secure developmental and working capital,
the Company faces substantial risks and uncertainties in developing its product,
business and establishing itself as a going concern
Results of Operations
The company has not begun its planned operations. Expenditures since inception
and for the requisite reporting periods have been General and Administrative in
nature. These represent the costs associated with professional fees, phone
expenses, small equipment, and expenses related to investor, engineering and
strategic partnership meetings, amongst other categories.
For the nine months ended September 30, 2003 operating expenses were $2,279
compared to $1,605 for the comparable period in 2002. These amounts represent
Net Losses for the company that will provide tax credits to offset Net Income in
future periods. As a result of the lack of operating capital, efforts were made
to decrease spending in all categories including travel, postage,
communications, and other general and administrative expenses. The company had
relied upon its founder to provide capital to fund its limited operations for at
least the last nine months.
Liquidity
ReserveNet's founder has provided financing for the short-term operating needs
of the Company. The ability of the company to secure additional financing,
however, will affect its status as a going concern. There can be no guarantee or
assurance that the Company would be successful in securing development and
working capital to fund the development of its products and operations. If
additional financing cannot be secured, ReserveNet, Inc. would be unlikely to
progress its business plan. The Company has and continues to rely on its founder
to finance its limited operations. He has not provided any guarantees or
assurances that he would continue to provide ReserveNet with additional
financing. In the event that management anticipates a deficiency in working
capital, the officers may elect to suspend its business until sufficient
financing is secured, market its intellectual property, or cease operations
entirely.
STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This report contains various forward-looking statements that are based on the
Company's beliefs as well as assumptions made by and information currently
available to the Company. When used in this report, the words "believe,"
"expect," "anticipate," "estimate" and similar expressions are intended to
identify forward-looking statements. Such statements may include statements
regarding seeking business opportunities, payment of operating expenses, and the
like, and are subject to certain risks, uncertainties and assumptions which
could cause actual results to differ materially from projections or estimates
contained herein. Factors which could cause actual results to differ materially
include, among others, unanticipated, or unexpected costs and expenses,
competition and changes in market conditions, lack of adequate management
personnel and the like. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect, actual results
may vary materially from those anticipated, estimated or projected. The Company
cautions against placing undue reliance on forward-looking statements.
PART II
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibit 99.1 - Certification of Chief Executive Officer.
(b) Exhibit 99.2 - Certification of Chief Financial Officer.
Signatures
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
RESERVENET, INC.
(Registrant)
Date: November 19, 2003
By: /s/ Daniel Regidor
----------------
Daniel Regidor
President, CEO, Director