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 September 30, 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 September 30, 2001, 7,135,000 shares of Common Stock were issued and outstanding. Transitional Small Business Disclosure Format (check one): yes [ ] no [X] PART I: FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS. The financial statements, for the three months and nine months ended September 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 1 NETPARTS.COM, INC. BALANCE SHEETS December 31, 2000 and September 30, 2001 September 30, December 31, 2001 2000 - -------------------------------------------------------------------------------------- (Unaudited) ASSETS CURRENT ASSETS Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ 0 $ 1,191 TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . 0 1,191 ------------ ---------- TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . $ 0 $ 1,191 ============ ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable . . . . . . . . . . . . . . . . . . . $ 34,039 $ 20,233 ------------ ---------- TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . 34,039 20,233 ------------ ---------- 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) . . . . . . . . . . . . . (139,174) (124,177) Total Stockholders' Equity . . . . . . . . . . . . . . (34,039) (19,042) ------------ ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . $ 0 $ 1,191 ============ ========== The accompanying notes are an integral part of these financial statements. NETPARTS.COM, INC. STATEMENTS OF CASH FLOWS September 30, 2000 and 2001 From Inception From January (April 1, 2001 to 21, 1999) to September 30, , September 30, 2001 2000 2001 ---------- ---------- ----------- Operating Activities Net Income (Loss). . . . . . . . ($14,997) ($15,700) ($139,174) Items not affecting cash: Increase in accounts payable . . 13,806 8,700 34,039 Stock issued for services. 0 0 5,135 ---------- ---------- ----------- Net Cash from Operations . . . . (1,191) (7,000) (100,000) Cash from financing activities Sale of Common Stock . . . . . . 0 0 100,000 ---------- ---------- ----------- Cash Increase (Decrease) . . . . (1,191) (7,000) 0 Beginning Cash . . . . . . . . . 1,191 8,200 -0- Cash as of Statement Date. . . . $ 0 $ 1,200 $ 0 ========== ========== =========== The accompanying notes are an integral part of these financial statements. 2 NETPARTS.COM, INC. STATEMENTS OF OPERATIONS (UNAUDITED) for the periods ended September 30, 2000 and 2001 From Inception on From July From January April 21, 1, 2001 to 1, 2000 to 1999 through September 30, , September 30, September 30, 2001 2000 2001 2000 2001 ----------- ----------- ----------- ----------- ----------- Revenues. . . . . . . . . . $ 0 $ 0 $ 0 $ 0 $ 1,000 ----------- ----------- ----------- ----------- ----------- General and Administrative Expenses 1,539 5,000 14,997 15,700 140,174 ----------- ----------- ----------- ----------- ----------- Net Loss from Operations (1,539) (5,000) (14,997) (15,700) (139,174) Net Income (Loss) $ ($1,539) ($5,000) ($14,997) ($15,700) ($139,174) =========== =========== =========== =========== =========== Loss per Share. . . . . . . $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.20 =========== =========== =========== =========== =========== Weighted Average Shares Outstanding 7,135,000 7,135,000 7,135,000 7,135,000 695,600 =========== =========== =========== =========== =========== The accompanying notes are an integral part of these financial statements. 3 NETPARTS.COM, INC. (A Development Stage Company) Notes to the Financial Statements September 30, 2001 NOTES TO FINANCIAL STATEMENTS NetParts.com, Inc. ("the Company") has elected to omit substantially all footnotes to the financial statements for the period ended September 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 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. 4 ITEM 2. DISCUSSION AND ANALYSIS OR PLAN OF OPERATION. (A) PLAN OF OPERATION. Our plan of operation is unchanged from our previous report. We were incorporated for the purpose of creating a series of 16 specialized auto salvage yards, each one handling only one make of vehicle. We have not launched operations or achieved our funding goals during 2001, due to the impact of market and economic decline of the past six months. Our start up venture must be postponed until a more favorable economy and market conditions recover. We have essentially suspended developmental efforts for the remainder of 2001. Secondary and tertiary auto markets are derivatives of the primary market for new cars and trucks. While we note that since September 11, 2001, auto manufacturers have been selling at massive discounts to support their dealers, we do not see how such a trend can be sustainable. We expect an automobile recession in the first quarter of 2002. It is foreseeable that a business such as ours may have to await the second quarter of 2002 for conditions favorable to our funding and launch. (B) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. We have not launched operations. We are a development stage company. We have had minimal revenues to date. Our General and Administrative 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. Due to our current lack of business development, our realization of quotation on OTCBB is doubtful now, and may be delayed by the Staff of the NASD. It is doubtful that we can become attractive to our potential investors before our common stock is quotable. PART II: OTHER INFORMATION 5 ITEM 1. LEGAL PROCEEDINGS. 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 6 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, this Form 10-Q Report for the Quarter ended September 30, 2001, has been signed below by the following persons on behalf of the Registrant and in the capacity and on the date indicated. Dated: November 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 7