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: 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) 487-7295
As of June 30, 2002 Post-split Common shares issued and outstanding: 7,167,578
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 six months ended June
30, 2002, 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.
(a Development Stage Company)
BALANCE SHEETS
June 30, December 31,
2002 2001
ASSETS . . . . . . . . . . . . . . . . . . . . . (Unaudited)
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . $ 180 $ 8,925
Notes Receivable - Officer
Notes Receivable
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . 180 8,925
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . $ 180 $ 8,925
============ ==========
LIABILITIES & STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . . $ 111,529 $ 29,180
Accounts payable - related party . . . . . . . . . . . 5,978 5,978
Notes payable. . . . . . . . . . . . . . . . . . . . . 35,000 35,000
Total Liabilities. . . . . . . . . . . . . . . . . . . 152,507 70,158
STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; authorized 100,000,000
shares; issued and outstanding, 7,167,578 shares
and 7,167,578 shares respectively . . . . . . . . . 8,168 7,168
Additional Paid-In Capital . . . . . . . . . . . . . . 290,338 241,338
Accumulated Equity (Deficit) . . . . . . . . . . . . . (450,833) (309,739)
Total Stockholders' Equity . . . . . . . . . . . . . . (152,327) (61,233)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY . . . . . . . $ 180 $ 8,925
============ ==========
The accompanying notes are an integral part
of these financial statements.
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KNOWLEDGE NETWORKS, INC.
(a Development Stage Company)
STATEMENTS OF OPERATIONS (UNAUDITED)
From
Inception on
December 16,
For the three For the six 1998 through
months ended June 30 months ended June 30 June 30,
2002 2001 2002 2001 2002
Revenues . . . . . . . . . . . . . . . $ -0- $ -0- $ -0- $ -0- $ -0-
General and Administrative . . . . . . 39,930 -0- 141,094 -0- 141,094
Total Expenses . . . . . . . . . . . . 39,930 -0- 141,094 -0- 141,094
Net Loss from Operations . . . . . . . (39,930) -0- (141,094) -0- (141,094)
Discontinued Operations:
Income (loss) from
discontinued operations. . . . . . 0 (269,721) 0 (269,721) (443,238)
Gain (loss) on disposal of operations. 0 -0- 0 -0- 133,499
Income (loss) from
Discontinued Operation . . . . . . 0 (269,721) 0 (269,721) (309,739)
Net Income (Loss). . . . . . . . . . . $ (39,930) (269,721) $ (141,094) (269,721) $ (450,833)
============ =========== ============ =========== ============
Loss per Share:
(Loss) from continuing operations. . (0.00) - (0.00) - (0.00)
(Loss) from discontinued operations. (0.00) (0.08) (0.00) (0.08) (0.03)
Loss per Share . . . . . . . . . . . . $ (0.00) $ (0.08) $ (0.00) $ (0.08) $ (0.03)
============ =========== ============ =========== ============
Weighted Average
Shares Outstanding . . . . . . . . 71,675,780 3,425,777 71,675,780 3,425,777 17,050,003
============ =========== ============ =========== ============
The accompanying notes are an integral part
of these financial statements.
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KNOWLEDGE NETWORKS, INC.
(a Development Stage Company)
STATEMENT OF CASH FLOWS (UNAUDITED)
From
Inception on
December 16,
For the seven 1998 through
months ended July 31, July 31,
2002 2001 2002
Operating Activities
Net Income (Loss) . . . . . . . . . . . . . . . $ (141,094) $(269,721) $(450,833)
Adjustments to reconcile net loss to
net cash provided by operations
Issuance of stock for services. . . . . . . 50,000 0 170,342
Forgiveness of debt . . . . . . . . . . . . 0 0 49,984
Bad debt. . . . . . . . . . . . . . . . . . 0 0 11,154
Increase in accounts payable 82,349 262,569 125,538
Increase in accounts payable -related party. 0 0 5,978
Net cash flows used Operations. . . . . . . . . (8,745) (7,152) (87,837)
Cash flows used in Investment Activities
Cash payments for notes receivable. . . . . . 0 (405,769) (63,993)
Net Cash used in Investment Activities. . . . . 0 (405,769) (63,993)
Cash Flows from Financing Activities
Cash received from notes payable. . . . . . . 0 412,880 35,000
Cash received from subscriptions receivable . 0 0 9,800
Cash received from spin-off . . . . . . . . . 0 0 3,710
Issuance of stock for cash. . . . . . . . . . 0 0 103,500
Net Cash Flows from Financing Activities. . . . 0 412,880 152,010
Net increase (decrease) in cash . . . . . . . . (8,745) (41) 180
Cash, beginning of period . . . . . . . . . . . 8,925 161 0
Cash, end of period . . . . . . . . . . . . . . 180 120 180
=======================================
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, 2002
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, 2002, 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, 2001.
COMMON STOCK REVERSE SPLIT
On February 15, 2002, the Board of Directors and Shareholders of the Company
approved a one for ten (1:10) reverse split of its common stock. All
presentations of shareholders' equity are presented as if the forward split had
been effect since inception.
COMMON STOCK ISSUED FOR SERVICES RENDERED
In June 2002, the Board of Directors and Shareholders of the Company approved an
issuance of 1,000,000 shares of common stock in exchange for services rendered
which were valued at $50,000 (or $.05 per share).
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
unchanged from our annual report for the year ended December 31, 2001.
Conditions are not currently favorable to capital formation or the launch of
operations.
(B) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
We have enjoyed no revenues during the periods covered by this report or
corresponding periods during the previous fiscal year.
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.
KNOWLEDGE NETWORKS, INC.
Dated: August 8, 2002 by
/s/ Marlen L. Roepke
Marlen L. Roepke
Officer/Director
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