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 June 30, 2001
Commission File Number: 0-30565
KNOWLEDGE NETWORKS, INC.
Nevada 91-2014670
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
24843 Del Prado, Suite 318, Dana Point, CA 92629
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (949) 248-1765
As of June 30, 2001, 34,257,767 shares of common stock were issued and
outstanding.
Transitional Small Business Disclosure Format (check one): yes [ ] no [X]
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PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
The financial statements, for the three months and six ended June 30, 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 is Intentionally left Blank
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KNOWLEDGE NETWORKS, INC.
BALANCE SHEET (UNAUDITED)
for the fiscal year ended December 31, 2000
and the period ended June 30, 2001
June 30, December 31,
2001 2000
ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,214 $ 5,585
Notes Receivable . . . . . . . . . . . . . . . . . . . 63,993 63,993
--------- ---------
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . 67,207 69,578
--------- ---------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . $ 67,207 $ 69,578
========= =========
LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . . $ 14,013 $ -0-
--------- ---------
Total Liabilities. . . . . . . . . . . . . . . . . . . 14,013 -0-
--------- ---------
STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; authorized 100,000,000
shares; issued and outstanding, 10,361,750 shares
and 10,361,750 shares respectively. . . . . . . . . 10,362 10,362
Additional Paid-In Capital . . . . . . . . . . . . . . 142,806 142,806
Accumulated Equity (Deficit) . . . . . . . . . . . . . (99,974) (83,590)
Less: Subscription receivable
Total Stockholders' Equity . . . . . . . . . . . . . . 53,194 69,578
--------- ---------
TOTAL STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . $ 67,207 $ 69,578
========= =========
The accompanying notes are an integral part
of these financial statements.
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KNOWLEDGE NETWORKS, INC.
STATEMENT OF CASH FLOWS (UNAUDITED)
for the periods ended June 30, 2000 and 2001
From inception,
December 16,
1988 through
June 30, June 30,
2001 2000 2001
Operating Activities
Net Income (Loss). . . . . . . . . . . . . . . $(195,639) $ (16,384) $(593,721)
Adjustments to reconcile net loss to
net cash provided by operations
Increase in accounts payable . . . . . . . . 195,639 14,013 472,217
Bad debt . . . . . . . . . . . . . . . . . 11,154
Issuance of stock for services . . . . . . 50,342
----------
Net cash flows used Operations . . . . . . . . 0 (2,371) (60,008)
Cash flows used in Investment Activities
Cash payments for notes receivable . . . . . . (405,769) (469,762)
---------- ----------
Net Cash used in Investment Activities . . . . (405,769) (469,762)
Cash Flows from Financing Activities
Cash received from notes payable . . . . . . 412,880 412,880
Cash received from subscriptions receivable. 9,800
Cash received from spin-off. . . . . . . . . 3,710
Issuance of stock for cash . . . . . . . . . 103,500
----------
Net Cash Flows from Financing Activities . . . 412,880 529,890
Net increase (decrease) in cash. . . . . . . . 0 (2,371) 120
Cash, beginning of period. . . . . . . . . . . 120 5,585
---------- ----------
Cash, end of period. . . . . . . . . . . . . . 120 3,214 120
========== ========== ==========
The accompanying notes are an integral part
of these financial statements.
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KNOWLEDGE NETWORKS, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
for the periods ended June 30, 2000 and
2001
From
Inception on
From April From April From January From January December 16,
1, 2000 to 1, 2000 to 1, 2000 to 1, 2000 to 1998 through
June 30, June 30, June 30, June 30, June 30,
2001 2000 2001 2000 2001
------------ ------------ ------------ ------------ ------------
Revenues. . . . . . . . . . $ 0 $ 12,500 $ 0 $ 22,500 $ 99,683
------------ ------------ ------------ ------------ ------------
Bad debt. . . . . . . . . . 11,154
Consulting fees . . . . . . 5,250 12,500 34,035 24,500 215,054
General and Administrative. 190,389 8,345 431,325 14,384 467,196
------------ ------------ ------------ ------------ ------------
Total Expenses. . . . . . . 195,639 20,845 465,360 38,884 693,404
Net Loss from Operations. . (195,639) (8,345) (465,360) (16,384) (593,721)
Net Income (Loss) . . . . . $ (195,639) $ (8,345) $ (465,360) $ (16,384) $ (593,721)
============ ============ ============ ============ ============
Loss per Share. . . . . . . $ (0.00945) $ (0.00081) $ (0.02865) $ (0.00158) $ (0.03459)
============ ============ ============ ============ ============
Weighted Average
Shares Outstanding. . . 20,713,450 10,361,750 16,243,858 10,361,750 17,163,743
============ ============ ============ ============ ============
The accompanying notes are an integral part
of these financial statements.
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KNOWLEDGE NETWORKS, INC.
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2001
NOTES TO FINANCIAL STATEMENTS
Knowledge Networks, Inc. ("the Company") has elected to omit substantially all
footnotes to the financial statements for the period ended June 30, 2001, since
there have been no material changes (other than indicated in other footnotes) to
the information previously reported by the Company in their Annual Report filed
on Form 10-KSB 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 FOR THE NEXT TWELVE MONTHS. Our plan of operation is
unchandged from our previous report.
(B) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
We enjoyed no revenues during the period covered by this report.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEDINGS. None
ITEM 2. CHANGES IN SECURITIES. On June 21, 2001, we effected a reverse split of
10:1 such that every ten shares owned became one share, of our common stock.
ITEM 3. DEFAULTS ON SENIOR SECURITIES. None
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS. None
ITEM 5. OTHER INFORMATION. Jeffery A. Harry continues as Officer and Director,
now the Sole Remaining Officer/Director. Mr. Roberge has temporarily withdrawn
for personal reasons during July of 2001 and is expected to return to the Board
in August of 2001.
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 June 30, 2001, has been signed below by
the following person on behalf of the Registrant and in the capacity and on the
date indicated.
KNOWLEDGE NETWORKS, INC.
Dated: August 15, 2001 by
/s/Jeffrey A. Harry
Jeffrey A. Harry
Sole Remaining Officer/Director
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