EXHIBIT FS
2DoTrade
(A Development Stage Company)
Balance Sheet
as of
December 31, 2000
and
Statements of Income,
Changes in Stockholder's Equity, and
Cash Flows
for the period
November 3, 2000 (Date of Inception)
through
December 31, 2000
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TABLE OF CONTENTS
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PAGE
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Independent Auditor's Report 1
Balance Sheet 2
Income Statement 3
Statement of Changes in Stockholder's Equity 4
Statement of Cash Flows 5
Notes to Financial Statements 6
See accompanying notes to financial statements.
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G. BRAD BECKSTEAD
Certified Public Accountant
330 E. Warm Springs
Las Vegas, NV 89119
702.528.1984
425.928.2877 efax
INDEPENDENT AUDITOR'S REPORT
February 26, 2001
Board of Directors
2DoTrade
Carson City, NV
I have audited the Balance Sheet of 2DoTrade (a Nevada corporation) (a
Development Stage Company), as of December 31, 2000, and the related
Statements of Income, Changes in Stockholder's Equity, and Cash Flows
for the period November 3, 2000 (Date of Inception) to December 31,
2000. These financial statements are the responsibility of the
Company's management. My responsibility is to express an opinion on
these financial 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.
In my opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of 2DoTrade,
(A Development Stage Company), as of December 31, 2000, and the
results of its operations and its cash flows for the period from
November 3, 2000 (Date of Inception) to December 31, 2000 in
conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming the
Company will continue as a going concern. As discussed in Note 5 to
the financial statements, the Company has had limited operations and
has not commenced planned principal operations. This raises
substantial doubt about its ability to continue as a going concern.
Management's plans in regard to these matters are also described in
Note 5. The financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
G. Brad Beckstead, CPA
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2DoTrade
(a Development Stage Company)
Balance Sheet
"December 31,"
2000
Assets
Current assets:
Cash and equivalents $ 26
-----------
Total current assets 26
-----------
$ 26
===========
Liabilities and Stockholders' Equity
Liabilities $ -
----------
Stockholders' Equity:
Preferred stock, $0.001 par value, 5,000,000
shares authorized, no shares issued and
outstanding -
Common stock, $0.001 par value, 16,000,000
shares authorized, 16,000,000 shares issued
and outstanding 16,000
Additional paid-in capital 33
Deficit (16,007)
-----------
Total stockholders' equity 26
-----------
Total Liabilities and Stockholder's Equity $ 26
===========
The accompanying Notes are an integral part of these financial statements
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2DoTrade
(a Development Stage Company)
Income Statement
November 3, 2000
(date of inception)
to December 31,
2000
------------------
Revenue $ -
------------------
Expenses:
General and administrative 7
Stock issued for contract 16,000
-------------------
Total expenses 16,007
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Net loss $ (16,007)
===================
Weighted average number of common
shares outstanding 16,000,000
===================
Net loss per share $ (0.00)
===================
The accompanying Notes are an intergral part of these financial statements.
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2DoTrade
(a Development Stage Company)
Statement of Changes in Stockholders' Equity
For the Period
November 3, 2000 (Date of Inception) to December 31, 2000
Deficit
Accumulated
Common Stock Additional During Total
------------ Paid-in Development Stockholders'
Shares Amount Capital Stage Equity
---------- ---------- -------- ---------- ------------
November 2000
Issued for contract 16,000,000 $ 16,000 $ $ $ 16,000
December 2000
Contributed capital 33 33
Net loss
November 3, 2000
(inception) to
December 31, 2000 (16,007) (16,007)
---------- ---------- --------- ---------- ------------
Balance as of
May 31, 2000 16,000,000 $ 16,000 $ 33 $ (16,007) $ 26
========== ========== ========= ========== ============
The accompanying Notes are an integral part of these financial statements.
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2DoTrade
(a Development Stage Company)
Statement of Cash Flows
November 31, 2000
(date of inception)
to December 31,
2000
-------------------
Cash flows from operating activities
- ------------------------------------
Net loss $ (16,007)
Stock issued for contract 16,000
Adjustments to reconcile net income to net cash used
by operating activities:
-------------------
Net cash used by operating activities (7)
-------------------
Net cash provided (used) by investing activities -
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Cash flows from financing activities
- ------------------------------------
Donated capital 33
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Net cash provided by financing activities 33
-------------------
Net (decrease) increase in cash 26
Cash - beginning -
-------------------
Cash - ending $ 26
===================
Supplemental disclosures:
Interest paid $ -
===================
Income taxes paid $ -
===================
Non-cash transactions:
Number of shares issued for contract 16,000,000
===================
Value of shares issued for contract $ 16,000
===================
The accompanying Notes are an integral part of these financial statements.
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2DoTrade
(A Development Stage Company)
Notes
Note 1 - History and organization of the company
The Company was organized on November 3, 2000 (Date of Inception)
under the laws of the State of Nevada, as 2DoTrade. The Company has
limited operations, and in accordance with SFAS #7, the Company is
considered a development stage company.
Note 2 - Accounting policies and procedures
Accounting policies and procedures have not been determined except as follows:
Accounting method
- -----------------
The Company reports income and expenses on the accrual method.
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 of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenue and expenses during the reporting period. Actual results
could differ from those estimates.
Cash and cash equivalents
- -------------------------
The Company maintains a cash balance in a non-interest-bearing
account that currently does not exceed federally insured limits. For
the purpose of the statements of cash flows, all highly liquid
investments with an original maturity of three months or less are
considered to be cash equivalents. There are no cash equivalents as
of December 31, 2000.
Reporting on the costs of start-up activities
- ---------------------------------------------
Statement of Position 98-5 (SOP 98-5), "Reporting on the Costs of
Start-Up Activities," which provides guidance on the financial
reporting of start-up costs and organizational costs, requires most
costs of start-up activities and organizational costs to be expensed
as incurred. SOP 98-5 is effective for fiscal years beginning after
December 15, 1998. With the adoption of SOP 98-5, there has been
little or no effect on the Company's financial statements.
Loss per share
- --------------
Net loss per share is provided in accordance with Statement of
Financial Accounting Standards No. 128 (SFAS #128) "Earnings Per
Share". Basic loss per share is computed by dividing losses
available to common stockholders by the weighted average number of
common shares outstanding during the period. As of December 31,
2000, the Company had no dilutive common stock equivalents, such as
stock options or warrants.
Dividends
- ---------
The Company has not yet adopted any policy regarding payment of
dividends. No dividends have been paid or declared since inception.
Year end
- --------
The Company has adopted December 31 as its fiscal year end.
Note 3 - Income taxes
Income taxes are provided for using the liability method of accounting
in accordance with Statement of Financial Accounting Standards No. 109
(SFAS #109) "Accounting for Income Taxes". A deferred tax asset or
liability is recorded for all temporary differences between financial
and tax reporting. Deferred tax expense (benefit) results from the
net change during the year of deferred tax assets and liabilities.
There is no provision for income taxes for the period ended December
31, 2000 due to the net loss and no state income tax in Nevada, the
state of the Company's domicile and operations.
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Note 4 - Stockholder's equity
The Company is authorized to issue 16,000,000 shares of its $0.001 par
value common stock.
On November 8, 2000, the Company issued 16,000,000 shares of its
$0.001 par value common stock in exchange for a commodities trading
contract (see Note 8 below) valued at $16,000. Of the total received,
$16,000 represents common stock, and there is no additional paid-in
capital.
During December 2000, a director of the Company donated $33 cash to
open a bank account. The entire $33 is considered additional paid-in
capital.
There have been no other issuances of common stock or preferred stock.
Note 5 - 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. Without realization of additional
capital, it would be unlikely for the Company to continue as a going
concern.
Note 6 - Warrants and options
There are no warrants or options outstanding to acquire any additional
shares of common stock.
Note 7 - Related Party Transactions
The Company does not lease or rent any property. Office services are
provided without charge by a director. Such costs are immaterial to
the financial statements and, accordingly, have not been reflected
therein.
The officers and directors of the Company are involved in other
business activities and may, in the future, become involved in other
business opportunities. If a specific business opportunity becomes
available, such persons may face a conflict in selecting between the
Company and their other business interests. The Company has not
formulated a policy for the resolution of such conflicts.
Note 8 - Commitments
On November 8, 2000, the Company entered into a Commodities Trading
Agreement (hereinafter referred to as "the Agreement") with The London
Diamond Guild, Ltd. (hereinafter referred to as "the Guild"), whereby
the Guild assigned to the Company 21 individual agreements to supply
various commodities to various African countries, in consideration for
16,000,000 shares of the Company's $.001 par value common stock valued
at $16,000. The 16,000,000 shares are to be allocated to individuals
of the Guild syndication on a pro-rata basis. The $16,000 value is
considered compensation to the individuals, and is appropriately
expensed by the Company as such.
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