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Donald Jackson Wells
PRESIDENT
NetParts.com, Inc.
3131 Southwest Freeway #46
Houston, Texas, 77098
(Name and Address of Person Authorized to Receive Notices
and Communications on Behalf of the Person Filing Statement)
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WITH A COPY TO:
KARL E. RODRIGUEZ, ESQ
24843 Del Prado, #318
Dana Point, CA 92629
(949) 248-9561
fax (949) 248-1688
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended March 31, 2001
Commission File Number: 0-30891
NETPARTS.COM, INC.
(Exact name of Registrant as specified in its charter)
Nevada Optional
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
3131 Southwest Freeway #46, Houston TX 77098
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 521-9395
As of March 31, 2001, 7,135,000 shares of Common Stock were issued and
outstanding.
Transitional Small Business Disclosure Format (check one): yes [ ] no [X]
1
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
The financial statements, for the three months ended March 31, 2001,
included herein have been prepared by the Company, without audit pursuant to the
rules and regulations of the Securities and Exchange Commission. Certain
information and footnotes disclosure 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 not
misleading.
THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK.
2
NETPARTS.COM, INC.
BALANCE SHEET
December 31, 2000 and March 31, 2001
March 31, December 31,
2001 2000
(Unaudited)
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ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,164 $ 1,191
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . 1,164 1,191
----------- --------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . $ 1,164 $ 1,191
=========== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . . $ 26,762 $ 20,233
----------- --------------
TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . 26,762 20,233
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STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; authorized 100,000,000
shares; issued and outstanding, 7,135,000 shares. . 7,135 7,135
Additional paid-in capital . . . . . . . . . . . . . . 98,000 98,000
Accumulated equity (deficit) . . . . . . . . . . . . . (130,733) (124,177)
Total Stockholders' Equity . . . . . . . . . . . . . . (25,598) (19,042)
----------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . $ 1,164 $ 1,191
=========== ==============
The accompanying notes are an integral part of these financial statements.
3
NETPARTS.COM, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
March 31, 2000 and 2001
From
Inception
From January From January (April
1, 2001 to. 1, 2000 to 21, 1999) to
March 31, March 31, March 31,
2001 2001 2001
-------------- -------------- -----------
Revenues. . . . . . . . . . . . . $ 0 $ 0 $ 1,000
-------------- -------------- -----------
General & Administrative Expense. 6,556 10,405 131,733
-------------- -------------- -----------
Net Loss from Operations. . . . . (6,556) (10,405) (130,733)
-------------- -------------- -----------
Net Income (Loss) . . . . . . . . ($6,556) ($10,405) ($130,733)
============== ============== ===========
Loss per Share. . . . . . . . . . $ (0.00092) $ (0.00146) $ (0.01909)
============== ============== ===========
Weighted Average
Shares Outstanding. . . . . . 7,135,000 7,135,000 6,846,475
============== ============== ===========
The accompanying notes are an integral part of these financial statements.
4
NETPARTS.COM, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)(UNAUDITED)
From inception (April 21, 1999) through December 31, 1999
For the fiscal year ended December 31, 2000
And for the period ended March 31, 2000
Additional Accumulated Total Stock-
Common Par Paid-In Equity holders' Equity
Stock Value Capital (Deficit) (Deficit)
---------- ------------ ------------- ----------- -----------------
Common Stock issued at inception 5,135,000 $ 5,135 $ 0 $ 0 $ 5,135
Sale of Common Stock for
$0.05 per share . . . . . . 2,000,000 2,000 98,000 0 0
Net loss during period . . . . . 0 0 0 (96,935) 0
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Balance at December 31, 1999 . . 7,135,000 $ 7,135 $ 98,000 ($96,935) $ 8,200
Net loss during period . . . . . 0 0 0 (27,242) 0
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Balance at December 31, 2000 . . 7,135,000 $ 7,135 $ 98,000 ($124,177) ($19,042)
Net loss during period . . . . . 0 0 0 (6,556) 0
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Balance at March 31, 2001. . . . 7,135,000 $ 7,135 $ 98,000 ($130,733) ($25,598)
The accompanying notes are an integral part of these financial statements.
5
NETPARTS.COM, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
March 31, 2000 and 2001
From
Inception
From January From January (April
1, 2001 to 1, 2000 to 21, 1999) to
March 31, March 31, March 31,
2001 2000 2001
-------------- -------------- -----------
Operating Activities
Net Income (Loss) ($6,556) ($10,405) ($130,733)
Items not affecting cash:
Increase in accounts payable 6,529 3,405 26,762
Stock issued for services 0 0 5,135
-------------- -------------- -----------
Net Cash from Operations (27) (7,000) (98,836)
Cash from financing activities
Sale of Common Stock 0 0 100,000
-------------- -------------- -----------
Cash Increase (Decrease) (27) (7,000) 1,164
Beginning Cash 1,191 8,200 0
Cash as of Statement Date $1,164 $1,200 $1,164
============== ============== ===========
The accompanying notes are an integral part of these financial statements.
6
NETPARTS.COM, INC.
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2001
NOTES TO FINANCIAL STATEMENTS
NetParts.com, Inc. ("the Company") has elected to omit substantially all
footnotes to the financial statements for the nine months ended March 31, 2001,
since there have been no material changes (other than indicated in other
footnotes) to the information previously reported by the Company in their
Audited Financial Statements for the Fiscal year ended December 31, 2000.
UNAUDITED INFORMATION
The information furnished herein was taken from the books and records of the
Company without audit. However, such information reflects all adjustments which
are, in the opinion of management, necessary to properly reflect the results of
the period presented. The information presented is not necessarily indicative
of the results from operations expected for the full fiscal year.
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ITEM 2. DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
(A) PLAN OF OPERATION NEXT TWELVE MONTHS.
(1) CASH REQUIREMENTS AND OF NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS. We
are a development stage company as defined in Financial Accounting Standards
Board Statement No. 7. We are concentrating substantially all of our efforts in
raising capital and developing our business in order to generate significant
revenues. While we have no immediate need for funding to maintain ourselves in
our pre-launch developmental stage, we will require additional capital to launch
our business operations and to maintain them until profitability is achieved.
This Company has a considerable need for additional funding during the next
twelve months. Our objective is to create a centrally located, interconnected
group of self sufficient used auto parts outlets specializing in customer
convenience and having a large combined stock from which to operate. The first
auto parts "supermart", which is to be located in Houston, Texas, will be large
enough and efficient enough to become, in management's opinion, the leading
supplier of used and remanufactured auto parts in Texas. It is our intention to
duplicate the concept in other metropolitan markets. To proceed with this plan,
we expect to require $500,000, during the next twelve months, to establish our
initial site in Houston. We expect to require $250,000 for initial purchasing
and marketing expenses, including inventory, advertising, web-site
establishment, maintenance and advertising. We expect to require an additional
$250,000 in unspecified working capital to see us through our first year of
aggressive operations, until we achieve significant revenues. Accordingly, upon
our acceptance for quotation on the OTCBB, we would expect to engage in one or
more private or public offerings, with aim of raising a minimum of $1,000,000 to
a maximum of $1,125,000.
(2) SUMMARY OF PRODUCT RESEARCH AND DEVELOPMENT. None.
(3) EXPECTED PURCHASE OR SALE OF PLANT AND SIGNIFICANT EQUIPMENT. We
intend to create a series of 16 specialized auto salvage yards, each one
handling only one make of vehicle. We would begin with our master site in
Houston.
(4) EXPECTED SIGNIFICANT CHANGE IN THE NUMBER OF EMPLOYEES. None
immediately. As we launch, additional employees are expected to be required.
(B) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
(1) FINANCIAL CONDITION. We have not launched operations. We are a
development stage company. We have had no revenues to date. Our activities to
date have involved our corporate organization, business plan development,
initial funding, auditing and preparation of this 1934 Registration of our
common stock for tradeability on the OTCBB.
We had raised $100,000 in 1999 and have expended virtually all of it during
that year, on our organizational expenses, business plan development, legal,
professional and auditing. Our expenses for the first five months of 2000 have
been related to accounting, and preparation of this 1934 Act Registration
Statement.
We refer to Notes to our audited financial statements previously filed with
Form 10-KSB.
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(Note 2-Going Concern) The accompanying financial statements have been prepared
assuming that the Company will continue as a going concern. The Company is
dependent upon raising capital to continue operations. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty. It is management's plan to raise capital in order to define their
business operations, thus creating necessary operating revenues.
(Note 3-Development Stage Company) The Company is a development stage company as
defined in Financial Accounting Standards Board Statement 7. It is concentrating
substantially all of its efforts in raising capital and developing its business
operations in order to generate operating revenues.
(2) RESULTS OF OPERATIONS. We have not launched operations, do not expect
to do so before our common stock is quoted on the NQB Pink Sheets or the OTCBB.
We have enjoyed our first (non-recurring) revenues in an insubstantial amount.
There is only minimal and barely substantial change in our financial condition
or operation in year 2000. Our legal and professional expenses were greater in
1999, due to organization, and registration of our common stock pursuant to
section 12(g) of the 1934 Exchange Act.
(3) FUTURE PROSPECTS. We had expected to launch our operations in year
2000, based on our expectation that we would be able to obtain acceptance for
quotation. We have determined that quotation cannot be effected, as a practical
matter, before the filing of this annual report. We have yet to establish our
specialized auto salvage yards. If we are able to achieve our funding goals, we
believe our prospects for success are good. There is, however, no present
guaranty that we can attract the funding we need. There is no guaranty that,
even if we achieve our funding goals, our program will enjoy public and business
acceptance, and prove profitable.
There can be no assurance that we will be successful in raising capital
through private placements or otherwise. Even if we are successful in raising
capital through the sources specified, there can be no assurances that any such
financing would be available in a timely manner or on terms acceptable to us and
our current shareholders, Additional equity financing could be dilutive to our
then existing shareholders, and any debt financing could involve restrictive
covenants with respect to future capital raising activities and other financial
and operational matters.
(C) REVERSE ACQUISITION CANDIDATE. We are committed to the realization of our
business plan. We are not a candidate for a reverse acquisition transaction.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEDINGS. None
ITEM 2. CHANGES IN SECURITIES. None
ITEM 3. DEFAULTS ON SENIOR SECURITIES. None
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS. None
ITEM 5. OTHER INFORMATION. None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. None
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-Q Report for the Quarter ended March 31, 2001, has been signed below by
the following person on behalf of the Registrant and in the capacity and on the
date indicated.
Dated: May 9, 2001
NETPARTS.COM, INC.
by
/S/Donald Jackson Wells /S/Joseph A. Kane
Donald Jackson Wells Joseph A. Kane
president/director secretary/treasurer/director
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