Board of Directors
Cybucks, Inc.
INDEPENDENT AUDITOR'S REPORT
I have audited the accompanying balance sheet of Cybucks, Inc. (Company) as of
December 31, 1999 and the related statement of operations, statement of
stockholders' equity, and the statement of cash flows for the year then ended.
These financial statements are the responsibility of the Company's management.
My responsibility is to express an opinion on these statements based on my
audit.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.
The Company is a development stage enterprise, as defined in Financial
Accounting Standards Board No. 7. The Company is devoting all of its present
efforts in securing and establishing a new business, and its planned principal
operations have not commenced, and, accordingly, no revenue has been derived
during the organizational period.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the Company as of December 31, 1999
and the results of its operations for the year then ended in conformity with
generally accepted accounting principles.
Clyde Bailey
Certified Public Accountant
San Antonio, Texas
January 23, 2000
Cybucks, Inc.
(A Development Stage Enterprise)
Balance Sheet
As of December 31, 1999
ASSETS $
Current Assets: $-
Total Current Assets $-
Other Assets:
Deferred Tax Benefit $450
Total Other Assets $450
Total Assets $450
LIABILITIES $-
Current Liabilities $-
Total Current Liabilities $-
Total Liabilities
STOCKHOLDERS' EQUITY
Common Stock $3,000
100,000,000 authorized shares, par value $.001
3,000,000 shares issued and outstanding
Additional Paid in Capital $-
Accumulated Deficit $2,550
Total Equity $450
Total Liabilities and Equity $450
=============
Cybucks, Inc.
(A Development Stage Enterprise)
Statement of Operations
For the Year Ended From Inception
December 31 -December 31
1998 1999 1999
Revenues $ - $ - $ -
Total Revenues - - -
Consulting Expenses $3,000
---------------- -------------- -------------------
Total Expenses $3,000
---------------- -------------- -------------------
Net Loss from Operations - - ($3,000)
Income Tax Benefit - - $450
Net Income (Loss) $ - $ - ($2,550)
================ ============== ===================
Basic and Diluted Earnings per Common Share NIL NIL NIL
Weighted Average number of Common Shares used in per 3,000,000 3,000,000 3,000,000
share calculations
================ ============== ===================
Cybucks, Inc.
(A Development Stage Enterprise)
Statement of Stockholders' Equity
As of December 31, 1999
$.001 Par Paid - in Accumulated Stockholders'
Shares Value Capital Deficit Equity
Balance January 1, 1998 3,000,000 $3,000 $ - $(2,550) $450
Net Income (Loss) - -
--------------- --------------- -------------- -------------- ----------------
Balance December 31, 1998 3,000,000 3,000 - $(2,550) $450
Net Income (Loss) - -
--------------- --------------- -------------- -------------- ----------------
Balance December 31, 1999 3,000,000 $3,000 $ - $(2,550) $450
=============== =============== ============== ============== ================
Cybucks, Inc.
(A Development Stage Enterprise)
Statement of Cash Flows
For the Year Ended From Inception to
December 31 December 31,
1999 1998 1999
Cash Flows from Operating Activities $ - $ - $ (2,550)
Net Income (Loss)
Changes in Operating Assets and Liabilities:
Deferred Tax Benefit (450)
Total Adjustments (450)
Net Cash Used in Operating Activities - - (3,000)
Cash Flows from Investing Activities
Net Cash used in Investing Activities - - -
Cash Flows from Financing Activities:
Common Stock 3,000
Net Cash Used in Financing Activities 3,000
Net Increase in Cash - - -
Cash Balance, Begin Period - - -
Cash Balance, End Period $ - $ - $ -
============= ============ ===================
Cybucks, Inc.
Notes to Financial Statements
Note 1 - Summary of Significant Accounting Policies
Organization
Cybucks, Inc. ("the Company") was incorporated under the laws of the State of
Nevada on April 22, 1997 for the purpose to promote and carry on any lawful
business for which a corporation may be incorporated under the laws of the State
of Nevada. The company has a total of 100,000,000 authorized shares with a par
value of $.001 per share and with 3,000,000 shares issued and outstanding as of
December 31, 1999. On December 13, 1999, the Company filed a Certificate of
Amendment to the Articles of Incorporation with the Nevada Corporation
Commission to change the name of the Company from TEL-VEST, Inc. to Cybucks,
Inc. and to increase the authorized capital stock to 100,000,000. The Company
has been inactive since inception and has no operating revenues or expenses.
Development Stage Enterprise
The Company is a development stage enterprise, as defined in Financial
Accounting Standards Board No. 7. The Company is devoting all of its present
efforts in securing and establishing a new business, and its planned principal
operations have not commenced, and, accordingly, no revenue has been derived
during the organizational period.
Fixed Assets
The Company has no fixed assets at this time.
Federal Income Tax
The Company has adopted the provisions of Financial Accounting Standards Board
Statement No. 109, Accounting for Income Taxes. The Company accounts for income
taxes pursuant to the provisions of the Financial Accounting Standards Board
Statement No. 109, "Accounting for Income Taxes", which requires an asset and
liability approach to calculating deferred income taxes. The asset and liability
approach requires the recognition of deferred tax liabilities and assets for the
expected future tax consequences of temporary differences between the carrying
amounts and the tax basis of assets and liabilities.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure on
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Accounting Method
The Company's financial statements are prepared using the
accrual method of accounting. Revenues are recognized when earned and expenses
when incurred. Fixed assets are stated at cost. Depreciation and amortization
using the straight-line method for financial reporting purposes and accelerated
methods for income tax purposes.
Cybucks, Inc.
Notes to Financial Statements
Note 1 - Summary of Significant Accounting Policies (con't)
Earnings per Common Share
The Company adopted Financial Accounting Standards (SFAS) No. 128, "Earnings Per
Share," which simplifies the computation of earnings per share requiring the
restatement of all prior periods.
Basic earnings per share are computed on the basis of the weighted average
number of common shares outstanding during each year.
Diluted earnings per share are computed on the basis of the weighted average
number of common shares and dilutive securities outstanding. Dilutive securities
having an anti-dilutive effect on diluted earnings per share are excluded from
the calculation.
Comprehensive Income
Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting
Comprehensive Income," establishes standards for reporting and display of
comprehensive income, its components and accumulated balances. Comprehensive
income is defined to include all changes in equity except those resulting from
investments by owners and distributions to owners. Among other disclosures, SFAS
No.130 requires that all items that are required to be recognized under current
accounting standards as components of comprehensive income be reported in a
financial statement that is displayed with the same prominence as other
financial statements. The Company does not have any assets requiring disclosure
of comprehensive income.
Segments of an Enterprise and Related Information
Statement of Financial Accounting Standards (SFAS) No. 131, Disclosures about
Segments of an Enterprise and Related Information, supersedes SFAS No. 14,
"Financial Reporting for Segments of a Business Enterprise." SFAS 131
establishes standards for the way that public companies report information about
operating segments in annual financial statements and requires reporting of
selected information about operating segments in interim financial statements
issued to the public. It also establishes standards for disclosures regarding
products and services, geographic areas and major customers. SFAS 131 defines
operating segments as components of a company about which separate financial
information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing
performance. The Company has evaluated this SFAS and does not believe it is
applicable at this time.
Note 2 - Common Stock
In December of 1999, a forward split of 3,000 to 1 was place into effect
reflecting the total outstanding shares of 3,000,000 share of common stock to
the principal officers. Accordingly, the accompanying financial statements have
been retroactively restated to reflect the 3000-to-1 stock split as if such
stock split occurred as of the Company's date of inception.
Cybucks, Inc.
Notes to Financial Statements
Note 3 - Related Parties
The Organization has no significant related party transactions and/or
relationships any individuals or entities.
Note 4 - Subsequent Events
The Company is in the process of filing a Form SB2 Registration Statement with
the Securities and Exchange Commission. The "draft" of the Form SB2 describes an
offering of 109,375 shares of stock at $.32 per share for a total proposed
maximum aggregate offering proceeds of $35,000. The funds will be used for
expenses and working capital.
There were no other material subsequent events that have occurred since the
balance sheet date that warrants disclosure in these financial statements.