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, 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 June 30, 2002, and July 31, 2002: 7,056,121 shares 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 June 30, 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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WEBSERVICES INNOVATIONS, LTD.
(formerly Snohomish Equity Corporation)
(a Development Stage Company)
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, December 31,
2002 2001
ASSETS. . . . . . . . . . . . . . . . . . . . . (Unaudited)
CURRENT ASSETS
Cash. . . . . . . . . . . . . . . . . . . . . . . . . $ 24 $ 34
TOTAL CURRENT ASSETS. . . . . . . . . . . . . . . . . 24 34
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . $ 24 $ 34
============ ==============
LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable. . . . . . . . . . . . . . . . . . . $ 55,350 $ 55,350
Accounts payable - related party. . . . . . . . . . . 28,504 6,273
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . 83,854 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). . . . . . . . . . . . . (203,429) (181,188)
Total Stockholders' Equity. . . . . . . . . . . . . . (83,830) (61,589)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY. . . . . . . $ 24 $ 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)
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
From
Inception on
May
19, 1999
For the three For the six through
months ended June 30, months ended June 30, June 30,
2002 2001 2002 2001 2002
Revenues. . . . . . . . . . $ -0- $ 2,600 $ -0- $ 2,600 $ 2,600
General and Administrative. 19,086 21,126 22,241 24,008 206,029
Net Loss from Operations. . (19,086) (18,526) (22,241) (21,408) (203,429)
Net Income (Loss) . . . . . $ (19,086) $ (18,526) $ (22,241) $ (21,408) $ (203,429)
=========== =========== =========== =========== ===========
Loss per Share. . . . . . . $ (0.00) $ (0.00) $ (0.00) $ (0.00) $ (0.03)
=========== =========== =========== =========== ===========
Weighted Average
Shares Outstanding. . . 7,056,121 6,931,120 7,056,121 6,931,120 6,940,554
=========== =========== =========== =========== ===========
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)
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNAUDITED)
From
Inception on
May 19, 1999
For the six through
months ended June 30, June 30,
2002 2001 2002
Cash Flow fromOperating Activities:
Net Income (Loss). . . . . . . . . . . . . . $(22,241) $(21,408) $(203,429)
Items not effecting cash
Stock for services . . . . . . . . . . . . 0 0 4,071
(Increase) in prepaid expense. . . . . . . . 0 0 0
Increase in account payable. . . . . . . . . 0 21,397 55,350
Increase in account payable - related party. 22,231 0 34,032
Net Cash from Operations . . . . . . . . . . (10) (11) (109,976)
Cash Flow from Investing Activities. . . . . 0 0 0
Cash Flow from Financing Activities. . . . . 0 0 0
Proceeds from sale/issuance of common stock. 0 0 110,000
Net Cash from Financing Activities . . . . . 0 0 110,000
Net increase (decrease) in cash. . . . . . . (10) (11) 24
Beginning Cash . . . . . . . . . . . . . . . 34 2,445 0
Cash as of Statement Date. . . . . . . . . . $ 24 $ 2,434 $ 24
========= ========= ==========
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
June 30, 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 June 30, 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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ITEM 2. DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
(A) PLAN OF OPERATION FOR THE NEXT TWELVE MONTHS(A) PLAN OF OPERATION FOR THE
NEXT TWELVE MONTHS. We became a full-service provider of corporate identity and
branding, as described in our last previous Annual Report on Form 10-KSB. We
created 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 has 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 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
continue to engage in building our customer base.
(B) CASH REQUIREMENTS AND OF NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS(B) CASH
REQUIREMENTS AND OF NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS. We have no cash or
cash resources to grow our business. We have not generated revenues in the six
months ended June 30, 2002. We have no present ability to formulate capital,
including working capital, by means of equity or debt financing, given market
conditions and poor position of un-proven start-up ventures, to attract
investors. We will need to generate some funds or credit, during the next six,
to continue to maintain our legal and professional costs, of public information
filings and independent corporate auditing. 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 operations optimally, and another $500,000 to continue
operations for the next twelve months, to launch expanded operations and attract
clients. We may obtain some minimal funding privately, from knowledgeable
investors. There is no assurance that we will succeed in even the most minimal
funding. It is less clear when we will succeed in raising significant capital,
in the current less than liquid market.
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 quote-ability of our common stock. Investors considering a start up
venture are less likely to favor an issuer whose shares are not tradeable, 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.
Accordingly a final cautionary statement is appropriate. It is foreseeable,
at this time, that our business may fail, before measures can be taken and
results achieved to secure our continued commitment to our business plan.
(C) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS(C) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS. Our financial condition is substantially unchanged since our last
annual report. We had minimal non-recurring revenues and activity in the
corresponding period of 2001, and none during this six months ended June 30,
2002.
PART II: OTHER INFORMATION
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 June 30, 2002, has been signed below by
the following person on behalf of the Registrant and in the capacity and on the
date indicated.
Dated: July 31, 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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