UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K/A-1
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 8, 2005
WEBB MORTGAGE DEPOT, INC.
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Florida
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
333-72376 65-0902373
- --------------------------------------------------------------------------------
(Commission File Number) (IRS Employer Identification No.)
155 Wilson Lake Road, Mooresville, NC 28117
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(800) 952-8706
- --------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
n/a
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
SECTION 4 - MATTERS RELATED TO ACCOUNTANTS AND FINANCIAL STATEMENTS
ITEM 4.02(B) NON-RELIANCE ON PREVIOUSLY ISSUED FINANCIAL STATEMENTS OR A RELATED
AUDIT REPORT OR COMPLETED INTERIM REPORT
On May 8, 2005, our auditors, Webb & Company, P.A., in connection with their
audit of our financial statements for the year ended December 31, 2003 advised
the Company that the Company can no longer rely on a previously issued audit
report or interim period reports. The result of the reaudit of the financial
statements has resulted in the Company restating its audited Balance Sheet and
Income Statement for December 31, 2003 in connection with the following matters:
HOME UNDER CONSTRUCTION
The Company determined that certain construction costs had not been
recorded or accrued during the year ended December 31, 2003. The Company
has restated these costs and related liabilities at December 31, 2003.
STOCK ISSUED FOR SERVICES
The Company originally recorded the value of stock issued for services at
par. The Company restated the value of the shares issued for services to
reflect the value at a recent cash offering price.
A summary of significant effects of the restatement is as follows:
December 31, 2003
(As Previously December 31, 2003
Statement of Operations Reported) (As Restated)
------------------ -----------------
Revenues $ 481,198 $ 481,198
Operating expenses 417,268 (505,229)
Net income (loss) from operations 63,930 (24,031)
Other income (expense) (7,734) (4,194)
Net income (loss) 56,196 (28,225)
Net income (loss) per share - basic and
diluted $ 0.01 $ (0.01)
Weighted average number of shares
outstanding during the period - basic and
diluted 4,169,144 4,160,377
December 31, 2003
(As Previously December 31, 2003
Balance Sheet Reported) (As Restated)
----------------- -----------------
Current assets $130,364 $ 31,940
Property and equipment, net 14,356 14,356
Total assets 144,720 506,695
Current liabilities 87,609 459,020
Total liabilities 87,609 459,020
Stockholders' equity 57,111 47,625
Total liabilities and stockholders' equity $144,720 $506,695
PROPERTY AND EQUIPMENT
Property and equipment consists of the following at December 31, 2004 and
2003:
2004 2003
-------- --------
Leasehold improvements $ 10,501 $ 16,978
Computers and equipment 8,350 3,257
-------- --------
18,851
Less accumulated depreciation (4,922) (5,879)
-------- --------
Property and equipment, net $ 13,929 $ 14,356
======== ========
Depreciation expense for the years ended December 31, 2004 and 2003 was
$3,960 and $4,047, respectively. During 2004, the Company recognized a
loss on the abandonment of leasehold improvements of $12,061.
The foregoing adjustments were reflected in the Company's annual report filed on
Form 10-KSB for the period ended December 31, 2004 and filed with the Commission
on May 13, 2005.
As a result of the foregoing, investors should not rely on the previously filed
audited financial statements which were filed as part of the Company's annual
report for the year ended December 31, 2003 filed with the Commission on April
15, 2004. Nor should investors rely upon the Company's unaudited financial
statements for the periods ended March 31, 2004 (filed May 11, 2004), June 30,
2004 (filed August 16, 2004), September 30, 2004 (filed November 12, 2004),
March 31, 2003, (filed May 14 2003); June 30, 2003 (filed August 5, 2003) and
September 30, 2003 (filed November 14, 2003).
The Company has provided Webb & Company with a copy of this Form 8-k indicating
that Webb & Company agrees with the statements contained herein.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
Exhibits
16.2 Letter from Webb & Company, P.A.
SIGNATURES
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 hereunto duly authorized.
Date: June 16, 2005
Webb Mortgage Depot, Inc.
By: /s/ Byron Webb
----------------------
Byron Webb
President