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, 2002
Commission File Number: 000-30168
WEBSERVICES INNOVATIONS, LTD.
formerly Snohomish Equity Corporation
219 Broadway, Suite 261, Laguna Beach CA 92651
Nevada 91-2006307
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
31878 Del Obispo Suite 118-606, San Juan Capistrano CA 92675
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (949) 366-2674
Shares Registered Section 12(g): Common Stock
As of May 10, 2002: 7,056,121 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 ended March 31, 2002,
included 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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ITEM 2. DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
(A) PLAN OF OPERATION FOR THE NEXT TWELVE MONTHS. Our Plan of Operation is
unchanged from our 2001 Annual Report on Form 10KSB.We have refined our business
plan to become a full-service provider of corporate identity and branding. We
would create a complete style guide consisting of color palates, type faces, and
materials to be used throughout all the services and mediums offered. Each
customized style guide will have detailed information for logo parameters used
for various mediums. Our services/products include Web Communication, Print
Collateral, CD Authoring, Interactive Multi-media Presentations and
Environmental Graphic Design. We will also provide specialized services for
corporate event presentations such as annual shareholders meetings. We will work
with each client to serve their communication needs. During the next twelve
months we will engage in building our customer base.
(B) CASH REQUIREMENTS AND OF NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS. We have
no immediate and foreseeable need for additional funding, during the next twelve
months, to continue present minimal operations. However, as a practical matter
we cannot begin to formulate the capital requirements, before we achieve
quote-ability on the OTCBB (Over-The-Counter Bulletin Board). Management
estimates that we need $500,000 to launch and another $500,000 to continue
operations for the next twelve months, to launch expanded operations and attract
clients. We expect to raise our capital privately, from knowledgeable investors.
It is less clear when we will succeed in raising such capital, in the current
less than liquid market; unless our launch and early revenue generation appear
attractive. There can be no guaranty of that.
Accordingly, two cautionary considerations are material:
First, that we may not be able to achieve required funding and may not be
able to proceed at our desired pace of development, or, in the worst case, at
all.
Second, 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.
In this connection, is necessary to understand the importance of our
achieving quotability of our common stock. Investors considering a start up
venture are less likely to favor an issuer whose shares are not tradable, than
one whose shares are quoted, at some bid and ask, on the OTCBB (Over-The-Counter
Bulletin Board) or an exchange. We do not anticipate any contingency upon which
we would voluntarily cease filing reports with the SEC, even though we may cease
to be required to do so. We would continue to file voluntarily in our own best
interests in order to remain quoted on OTCBB, if and when we reach that stage.
It is in our compelling interest to report our affairs quarterly, annually and
currently, as the case may be, generally to provide accessible public
information to interested parties, and also specifically to maintain its
qualification for the OTCBB, if and when the Issuer's intended application for
submission be effective.
We have no need of additional funds during the next twelve months, from
sources outside of our principals, to maintain our corporate franchise in the
State of our incorporation, and to file periodic reports as required of
Registrants under the 1934 Act. We expect our needs for cash to maintain our
corporate status and requirements to be ameliorated by operational revenues,
during the next twelve months.
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To launch properly, we should have secured facilities, engaged an initial
staff, and conducted our first run of advertising. The geographic area of our
initial advertising would be limited and depend on the extent of our funding. We
assume that by the sixth month of operation, successful or not, additional
capital would be required to assure our ability to remain in operation and
handle increasing interest in our services. It may be possible for us to begin
minimal operation with some debt financing at commercially reasonable results. A
minimal start would involve only our immediately local area, and only local and
targeted advertising. It would not involve a sales force or more than one or two
additional employees. We do not have sufficient borrowing power or available
security interests to offer. We do not place reliance on our ability to borrow
much, if at all. At the present time, in view of current conditions, a
small-start, an abbreviated launch is under way.
(C) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Our financial condition is substantially unchanged since our last annual report.
We have had minimal revenues and activity since our inception.
PART II: OTHER INFORMATION
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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.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-Q Report for the Quarter ended March 31, 2002, has been signed below by
the following person on behalf of the Registrant and in the capacity and on the
date indicated.
Dated: May 10, 2002
WEBSERVICES INNOVATIONS, LTD.
by
/S/Jen Stone /S/Jena Minnick-Harry
Jen Stone Jena Minnick-Harry
President/Director Secretary-Treasurer/Director
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WEBSERVICES INNOVATIONS, LTD.
(formerly Snohomish Equity Corporation)
(a Development Stage Company)
BALANCE SHEETS (UNAUDITED)
March 31, December 31,
2002 2001
(Unaudited)
- --------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash. . . . . . . . . . . . . . . . . . . . . . . . . $ 34 $ 34
------------ ----------
TOTAL CURRENT ASSETS. . . . . . . . . . . . . . . . . 34 34
------------ ----------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . $ 34 $ 34
============ ==========
LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable. . . . . . . . . . . . . . . . . . . $ 58,505 $ 55,350
Accounts payable - related party. . . . . . . . . . . 6,273 6,273
------------ ----------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . 64,778 61,623
------------ ----------
STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; authorized 50,000,000
shares; issued and outstanding, 7,056,121 shares
and 7,056,121 shares respectively. . . . . . . . . 7,056 7,056
Additional paid-in capital. . . . . . . . . . . . . . 112,543 112,543
Accumulated equity (deficit). . . . . . . . . . . . . (184,343) (181,188)
------------ ----------
Total Stockholders' Equity. . . . . . . . . . . . . . (64,744) (61,589)
------------ ----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY. . . . . . . $ 34 $ 34
============ ==========
The accompanying notes are an integral part
of these financial statements.
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WEBSERVICES INNOVATIONS, LTD.
(formerly Snohomish Equity Corporation)
(a Development Stage Company)
STATEMENTS OF OPERATIONS (UNAUDITED)
From
Inception on
From January From January May 19, 1999
1, 2002 to 1, 2001 to through
March 31, March 31, March 31,
2002 2001 2002
----------- ----------- -----------
Revenues. . . . . . . . . . $ -0- $ -0- $ 2,600
----------- ----------- -----------
General and Administrative. 3,155 15,522 186,943
----------- ----------- -----------
Net Loss from Operations. . (3,155) (15,522) (184,343)
----------- ----------- -----------
Net Income (Loss) . . . . . $ (3,155) $ (15,522) $ (184,343)
=========== =========== ===========
Loss per Share. . . . . . . $ (0.00) $ (0.00) $ (0.03)
=========== =========== ===========
Weighted Average
Shares Outstanding. . . 6,962,627 6,931,120 6,918,651
=========== =========== ===========
The accompanying notes are an integral part
of these financial statements.
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WEBSERVICES INNOVATIONS, LTD.
(formerly Snohomish Equity Corporation)
(a Development Stage Company)
STATEMENTS OF CASH FLOW (UNAUDITED)
From
Inception on
From January From January May 19, 1999
1, 2002 to 1, 2001 to through
March 31, March 31, March 31,
2002 2001 2002
- --------------------------------------------------------------------------------------
Operating Activities
Net Income (Loss). . . . . . . . . . . . . . . . $ (3,155) $(15,522) $(184,343)
Items not effecting cash
Stock for services . . . . . . . . . . . . . . 4,071
(Increase) in prepaid expense. . . . . . . . . . 5,524
Increase in account payable. . . . . . . . . . . 3,155 4,932 58,505
Increase in account payable - related party. . . 11,801
--------------------------------
Net Cash from Operations . . . . . . . . . . . . 0 (5,066) (109,966)
Cash Increase (Decrease) . . . . . . . . . . . . 0 (5,066) (109,966)
Cash infused from sale/issuance of common stock. 110,000
--------------------------------
Net increase (decrease) in cash. . . . . . . . . 0 (5,066) 34
Beginning Cash . . . . . . . . . . . . . . . . . 34 7,500 0
--------- --------- ----------
Cash as of Statement Date. . . . . . . . . . . . $ 34 $ 2,434 $ 34
========= ========= ==========
The accompanying notes are an integral part
of these financial statements.
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WEBSERVICES INNOVATIONS, LTD.
formerly Snohomish Equity Corp.
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2002
NOTES TO FINANCIAL STATEMENTS
WebServices Innovations, Ltd. ("the Company") (formerly Snohomish Equity Corp.)
has elected to omit substantially all footnotes to the financial statements for
the period ended March 31, 2002, 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, 2001.
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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