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 AND EXCHANGE ACT OF 1934
For the Quarter ended March 31, 2003.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THEE EXCHANGE ACT
For the transition period _____________ to _____________
Commission file number: 0-50062
e-The Movie Network, Inc.
(Exact name of Small Business Company in its charter)
Florida 65-1082273
(State or other jurisdiction of (IRS Employer Identification
of incorporation) Number)
14790 SW 21st Street
Davie, FL 33325
(Address of principal executive offices)
Registrant's Telephone number, including area code:(954) 472-7971
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934
during the preceding twelve months (or such shorter period that the Registrant
was required to file such reports), and (2) has been subject to file such filing
requirements for the past thirty days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report: 22,076,200
Shares of Common Stock (no par value).
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [X]
e-The Movie Network, Inc.
PART I: Financial Information
ITEM 1 - Financial statements
ITEM 2 - Management's' discussion and analysis of
financial condition and results of operations
PART II: Other Information
2
e-THE MOVIE NETWORK, INC.
-------------------------
(A DEVELOPMENT STAGE COMPANY)
-----------------------------
BALANCE SHEET
-------------
MARCH 31, 2003
--------------
(UNAUDITED)
-----------
ASSETS
------
Current Assets:
Cash and Cash Equivalents $ 3,365 --
Loan Receivable 160 --
--------
Total Current Assets -- $ 3,525
Other Assets:
Website Costs (less accumulated amortization) -- 889
--------
Total Assets -- $ 4,414
========
LIABILITIES AND STOCKHOLDERS' (DEFICIT)
---------------------------------------
Current Liabilities:
Accounts Payable $ 478 --
Accrued Expenses 12,123 --
--------
Total Current Liabilities -- $ 12,601
Stockholders' (Deficit):
Capital Stock - Common, no par value, 100,000,000
shares authorized, 22,076,200 shares issued and
outstanding $ 18,700 --
(Deficit) Accumulated During the Development Stage (26,887) --
--------
Total Stockholders' (Deficit) -- (8,187)
--------
Total Liabilities and Stockholders' (Deficit) -- $ 4,414
========
See Accompanying Notes to Financial Statements.
3
e-THE MOVIE NETWORK, INC.
-------------------------
(A DEVELOPMENT STAGE COMPANY)
-----------------------------
STATEMENT OF OPERATIONS
-----------------------
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002, AND THE
-----------------------------------------------------------
PERIOD FROM INCEPTION (JANUARY 3, 2001) TO MARCH 31, 2003
---------------------------------------------------------
(UNAUDITED)
-----------
Three Months Ended
------------------------------- Inception
March 31 March 31 to
2003 2002 3/31/03
-------- -------- ------------
Revenue $ -- $ -- $ --
- ------- ------------ ------------ ------------
Operating Expenses:
- -------------------
Amortization $ 167 $ 167 $ 1,112
Hosting Fees and Other Internet Expenses 105 105 825
Office Supplies and Bank Charges 35 45 224
Organization and Start Up Costs -- -- 8,600
Professional Fees 933 500 10,561
Rent -- -- 426
Transfer and Filing Fees 500 500 5,046
------------ ------------ ------------
Total Operating Expenses $ 1,740 $ 1,317 $ 26,804
Other Expenses:
- ---------------
Interest -- -- 83
------------ ------------ ------------
Income (Loss) Before Tax Provision (Credit) $ (1,740) $ (1,317) $ (26,887)
------------ ------------ ------------
Provision for Income Tax (Credit):
- ----------------------------------
Federal Income Tax $ -- $ -- $ --
State Income Tax -- -- --
------------ ------------ ------------
Total Provision for Income Tax (Credit) $ -- $ -- $ --
------------ ------------ ------------
Net Income (Loss) $ (1,740) $ (1,317) $ (26,887)
============ ============ ============
Per Share Information:
- ----------------------
Basic and Diluted Income (Loss)
Per Share $ -- $ -- $ --
------------ ------------ ------------
Weighted Average Shares of Common Stock 22,076,200 12,076,200 14,145,521
============ ============ ============
See Accompanying Notes to Financial Statements
4
e-THE MOVIE NETWORK, INC.
-------------------------
(A DEVELOPMENT STAGE COMPANY)
-----------------------------
STATEMENT OF CASH FLOWS
-----------------------
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002, AND THE
-----------------------------------------------------------
PERIOD FROM INCEPTION (JANUARY 3, 2001) TO MARCH 31, 2003
---------------------------------------------------------
(UNAUDITED)
-----------
Three Months Ended
----------------------- Inception
March 31 March 31 to
2003 2002 3/31/03
-------- -------- ---------
Cash Flows From Operating Activities:
- -------------------------------------
Net (Loss) $ (1,740) $ (1,317) $(26,887)
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Amortization 166 167 1,111
Organization Costs Contributed by Shareholder -- -- 500
Common Stock Issued for Services -- -- 3,200
Change in Assets and Liabilities:
Increase in Notes Receivable -- -- (160)
Increase in Current Liabilities 403 1,130 12,601
-------- -------- --------
Net Cash (Used) by Operating Activities $ (1,171) $ (20) $ (9,635)
-------- -------- --------
Cash Flows From Investing Activities:
- -------------------------------------
Addition to Website Costs $ -- $ -- $ (2,000)
-------- -------- --------
Net Cash (Used in) Investing Activities $ -- $ -- $ (2,000)
-------- -------- --------
Cash Flows From Financing Activities:
- -------------------------------------
Issuance of Common Stock for Cash $ -- $ -- $ 15,000
-------- -------- --------
Net Cash Provided by Financing Activities $ -- $ -- $ 15,000
-------- -------- --------
Net Increase (Decrease) in Cash and Cash
Equivalents $ (1,171) $ (20) $ 3,365
-------- -------- --------
Cash and Cash Equivalents at the Beginning
- ------------------------------------------
of Period 4,536 29 -0-
--------- -------- -------- --------
Cash and Cash Equivalents at the End of Period $ 3,365 $ 9 $ 3,365
- ---------------------------------------------- -------- -------- --------
See Accompanying Notes to Financial Statements.
5
e-THE MOVIE NETWORK, INC.
-------------------------
(A DEVELOPMENT STAGE COMPANY)
-----------------------------
STATEMENT OF CASH FLOWS
-----------------------
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002, AND THE
-----------------------------------------------------------
PERIOD FROM INCEPTION (JANUARY 3, 2001) TO MARCH 31, 2003
---------------------------------------------------------
(UNAUDITED)
-----------
Three Months Ended
----------------------- Inception
March 31 March 31 to
2003 2002 3/31/03
-------- -------- ---------
Additional Cash Flow Information:
Cash Paid During the Period for Interest
(Non-Capitalized) $ -- $ -- $ 83
Income Taxes $ -- $ -- $ --
See Accompanying Notes to Financial Statements.
6
e-THE MOVIE NETWORK, INC.
-------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 2003
--------------
(UNAUDITED)
-----------
NOTE A - BASIS OF PRESENTATION
- ------------------------------
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three month period ending March 31, 2003 are not
necessarily indicative of results that may be expected for the year ended
December 31, 2003.
For further information, refer to the financial statements and
footnotes thereto of the Company as of December 31, 2002 and the period from
inception (January 3, 2001) to December 31, 2002.
NOTE B - INCOME PER SHARE
- -------------------------
Basic Earnings per Share ("EPS") is computed by dividing net income
available to common stockholders by the weighted average number of common stock
shares outstanding during the year. Diluted EPS is computed by dividing net
income available to common stockholders by the weighted average number of common
stock shares outstanding during the year plus potential dilutive instruments
such as stock options and warrants. The effect of stock options on diluted EPS
is determined through the application of the treasury stock method, whereby
proceeds received by the Company based on assumed exercises are hypothetically
used to repurchase the Company's common stock at the average market price during
the period. Loss per share is unchanged on a diluted basis since the Company has
no potentially dilutive securities outstanding.
NOTE C - GOING CONCERN
- ----------------------
The Company's financial statements are prepared using the generally
accepted accounting principles applicable to a going concern, which contemplates
the realization of assets and liquidation of liabilities in the normal course of
business.
However, the Company has not generated any income and is unable to
predict when its operations will generate income. Also, as shown in the
accompanying financial statements, the Company incurred a net loss of $26,887
during the period January 3, 2001 (inception) to March 31, 2003. Therefore, it
will be necessary for the Company officer to advance funds to the Company until
such time as additional financing is available. There can be no assurance that
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e-THE MOVIE NETWORK, INC.
-------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
MARCH 31, 2003
--------------
(UNAUDITED)
-----------
the Company officer will have, or will be willing to advance funds to the
Company when the funds are required. Also, there can be no assurances that
additional financing will become available when required.
The financial statements do not include any adjustments to reflect the
possible future effects on the recoverability and classification of assets or
the amounts and classification of liabilities that may result from the possible
inability of the Company to continue as a going concern.
NOTE D - TERMINATION OF LEASE OBLIGATIONS
- -----------------------------------------
Effective January 31, 2002, by mutual consent, the operating sublease
for facilities and utilities from September 1, 2001 to March 1, 2005 from a
related party was terminated without cost to the Company.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations:
Results of Operations
---------------------
We have never had revenues from operations. The losses accumulated
since inception were incurred for formation and reinstatement costs of the
Company and operating expenses since formation. We do not expect costs of this
nature, with the exception of the minimal operating expenses, to continue in the
future, but there can be no assurance that similar expenses will not be
incurred.
In the event our business and revenues do not increase in the next
twelve months, we plan to seek out business opportunity candidates. To date, we
have not undertaken any efforts to locate business opportunity candidates. We
believe that this plan of operations can be conducted through the efforts of
current management and will not require any additional funds. We anticipate that
business opportunities will be available to us through the contacts of Susan
Parker. We anticipate that the investigation of specific business opportunities
and the negotiation, drafting and execution of relevant agreements, and other
instruments will be done by Susan Parker or under his direction. We plan to
investigate, to the extent believed reasonable by us, such potential business
opportunities. Due to our limited experience in business analysis, we may not
discover or adequately evaluate adverse facts about a potential business
opportunity.
Liquidity and Capital Resources
-------------------------------
At March 31, 2003, the Company had very little cash or other assets
with which to conduct operations. The Company's operations have been funded by
the sale of its common stock to its founder and a loan from a stockholder. The
Company has incurred a net loss of $26,887 from inception. There can be no
assurance that the Company will be able to obtain additional capital to meet its
operation requirements and these factors indicate that the Company may not be
able to continue as a going concern.
9
PART II--OTHER INFORMATION
Item 1. Legal Proceedings.
There are no pending legal proceedings, and the Company is not aware of any
threatened legal proceedings, to which the Company is a party or to which its
property is subject.
Item 2. Changes in Securities.
(a) There have been no material modifications in any of the instruments
defining the rights of the holders of any of the Company's registered
securities.
(b) None of the rights evidenced by any class of the Company's registered
securities have been materially limited or qualified by the issuance or
modification of any other class of the Company's securities.
Item 3. Defaults Upon Senior Securities.
(Not applicable)
Item 4. Submission of Matters to a Vote of Security Holders.
(Not applicable)
Item 5. Other Information.
(Not applicable)
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
No exhibits as set forth in Regulation SB, are considered necessary for
this filing.
(b) Reports on Form 8-K
None.
10
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
Undersigned thereunto duly authorized.
Date: May 5, 2003
/s/ Susan Parker
-----------------------
Susan Parker, President
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Certifications
--------------
I, Susan Parker, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of e-The Movie
Network, Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of e-The
Movie Network, Inc., as of, and for, the periods presented in this quarterly
report.
4. I am responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for
the registrant and have:
a) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared.
b) Evaluated the effectiveness of the registrant's disclosure controls
and procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) Presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
5. I have disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's board of directors
(or persons performing the equivalent functions):
a) All significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and
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6. I have indicated in this quarterly report whether or not there were
significant changes in internal controls or in other factors that could
significantly affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: May 5, 2003.
/s/ Susan Parker
- ----------------
President, Chief Executive Officer, Chief Financial Officer, and
Principal Accounting Officer
13
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of e-The Movie Network, Inc. ("the
Company")on Form 10-QSB for the period ended September 30, 2002 as filed with
the Securities and Exchange Commission on the date hereof ("the Report"), I,
Susan Parker, Chief Financial Officer, Principal Accounting Officer, Chief
Executive Officer and President, certify, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002, that to my
knowledge:
(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Company.
Dated: May 5, 2003.
/s/Susan Parker
- ---------------
President, Chief Executive Officer, Chief Financial Officer, and
Principal Accounting Officer
14