UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-QSB
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/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR QUARTERLY PERIOD ENDED JUNE 30, 2002
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO
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COMMISSION FILE NUMBER 1-49824
INAMCO INTERNATIONAL, CORP.
(Exact name of small business issuer as specified in its charter)
DELAWARE 72-1359595
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
801 MONTROSE AVE., SOUTH PLAINFIELD, NJ 07080
(ADDRESS OF PRINCIPAL (ZIP CODE)
EXECUTIVE OFFICES)
(908) 754-4880
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
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 Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes / / No /x/
Indicate the number of shares outstanding of each of issuer's classes of
common stock, as of the latest practicable date.
COMMON STOCK, $0.00001
PAR VALUE 27,600,000 SHARES
---------------------------- -------------------------------
Class Outstanding as of June 30, 2002
INAMCO INTERNATIONAL, CORP.
INDEX
PAGE
NO.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited) 3
Condensed Balance Sheets--As of June 30, 2002 3
and December 31, 2001
Condensed Statements of Operations--Three and Six Month Periods Ended June 30, 4
2002 and 2001
Condensed Statements of Cash Flows--Three and Six Month Periods Ended June 30, 5
2002 and 2001
Notes to Condensed Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of 8
Operations
Item 3. Quantitative and Qualitative Disclosures about Market Risk 12
PART II. OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds 12
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
INAMCO INTERNATIONAL CORP.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED BALANCE SHEETS
June 30, December 31,
2002 2001
----------- ------------
(Unaudited)
ASSETS
Current Assets
Cash $ 38 $ 38
----------- ------------
Total Current Assets 38 38
Other Assets 213 213
----------- ------------
Total Assets $ 251 $ 251
=========== ============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
LIABILITIES
Current Liabilities
Accounts payable and accrued expenses $ -- $ 1,668
----------- ------------
Total Current Liabilities -- 1,668
Due to Officer/Shareholder 4,068 1,900
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Total Liabilities 4,068 3,568
STOCKHOLDERS' DEFICIENCY
Common Stock, $.00001 par value
Authorized: 50,000,000 shares
Issued and Outstanding: 27,600,000 276 276
Additional paid-in capital 22,804 22,804
Deficit Accumulated in the Development Stage (26,897) (26,397)
----------- ------------
Total Shareholders' Deficiency (3,817) (3,317)
----------- ------------
$ 251 $ 251
=========== ============
Note: The balance sheet at December 31, 2001 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by accounting principles generally accepted in the Unites
States for complete financial statements. See accompanying notes to condensed
consolidated financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT
-3-
INAMCO INTERNATIONAL CORP.
(A DEVELOPMENT STAGE COMPANY)
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Inception
January 17, 1983 Three Months Ended Six Months Ended
to June 30, 2002 June 30, 2002 June 30, 2001 June 30, 2002 June 30, 2001
---------------- ------------- ------------- ------------- -------------
Net Sales $ -- $ -- $ -- $ -- $ --
Cost of Goods Sold -- -- -- -- --
---------------- ------------- ------------- ------------- -------------
Gross Profit -- -- -- -- --
Costs and Expenses
Bank Charges and Miscellaneous 2,240 500 5 500 5
Professional and Consulting Fees 24,657 -- -- -- --
---------------- ------------- ------------- ------------- -------------
26,897 500 5 500 5
---------------- ------------- ------------- ------------- -------------
Net Loss $ (26,897) $ (500) $ (5) $ (500) $ (5)
================ ============= ============= ============== =============
Weighted Avereage Number of Shares Outstanding 8,364,975 27,600,000 27,600,000 27,600,000 27,600,000
---------------- ------------- ------------- ------------- -------------
Loss Per Share (A) $ (0.00) $ (0.00) $ (0.00) $ (0.00) $ (0.00)
---------------- ------------- ------------- ------------- -------------
(A) Loss per share less that $.01
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT
-4-
INAMCO INTERNATIONAL CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
Inception
January 17, 1993 Three Months Ended
to August 31,2002 June 30,2002 June 30, 2001
----------------- ------------ -------------
Cash flows from operating activities:
Net loss $ (26,897) $ (500) $ (5)
Adjustments to reconcile net loss to net cash used in operating
activities
Change in accrued expenses -- (1,668) --
----------------- ------------ -------------
Net cash used for operating activities (26,897) (2,168) (5)
----------------- ------------ -------------
Cash flows from investing activities:
Change in other assets (213) -- --
----------------- ------------ -------------
Net cash used for investing activities (213) -- --
----------------- ------------ -------------
Cash flows from financing activities:
Loans from officer/shareholder, net of repayments 4,068 2,168 (300)
Restricted common stock issued in payment of expenses 22,867 -- --
Issuance of restricted common stock in connection with merger
agreement 213 -- --
----------------- ------------ -------------
Net cash provided by financing activities 27,148 2,168 (300)
----------------- ------------ -------------
NET INCREASE (DECREASE) IN CASH 38 -- (305)
Cash at beginning of period -- 38 343
----------------- ------------ -------------
Cash at end of period $ 38 $ 38 $ 38
================= ============ =============
Six Months Ended
June 30, 2002 June 30, 2001
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Cash flows from operating activities:
Net loss $ (500) $ (5)
Adjustments to reconcile net loss to net cash used in operating
activities
Change in accrued expenses (1,668) --
------------- -------------
Net cash used for operating activities (2,168) (5)
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Cash flows from investing activities:
Change in other assets -- --
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Net cash used for investing activities -- --
------------- -------------
Cash flows from financing activities:
Loans from officer/shareholder, net of repayments 2,168 (300)
Restricted common stock issued in payment of expenses -- --
Issuance of restricted common stock in connection with merger
agreement -- --
------------- -------------
Net cash provided by financing activities 2,168 (300)
------------- -------------
NET INCREASE (DECREASE) IN CASH -- (305)
Cash at beginning of period 38 343
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Cash at end of period $ 38 $ 38
============= =============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS STATEMENT
-5-
NOTES TO CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements of Inamco International,
Corp. have been prepared in accordance with accounting principles generally
accepted in the United States for interim financial information and in
accordance with the instructions to Form 10-Q and 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
adjustments, considered necessary for a fair presentation have been included.
Interim results are not necessarily indicative of results for a full year.
The balance sheet at December 31, 2001 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. These financial statements should be read in conjunction
with the audited financial statements and footnotes thereto included in the
Company's Form - 10 registration statement, as amended, and as filed with the
Securities and Exchange Commission ("SEC").
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect amounts reported in the condensed
financial statements and related footnotes. Changes in the estimates may affect
amounts reported in future periods.
2. NET LOSS PER SHARE
In accordance with SFAS No. 128, Earnings Per Share, and SEC Staff
Accounting Bulletin (or "SAB") No. 98, basic and diluted net loss per share are
computed by dividing the net loss for the period by the weighted average number
of common shares outstanding during the period.
Under the provisions of SAB No. 98, common shares issued for nominal
consideration, if any, would be included in the per share calculations as if
they were outstanding for all periods presented. No common shares have been
issued for nominal consideration for the six months ended June 30, 2002, and the
year ended December 31, 2001.
3. COMPREHENSIVE LOSS
Comprehensive loss for all periods presented is the same as net loss.
4. DEFERRED STOCK COMPENSATION
For the six months ended June 30, 2002 and the year ended December 31, 2001,
in connection with advisory and consultation to second party firms, the Company
recorded no deferred stock compensation.
5. NON-CASH PREFERRED STOCK CHARGE
For the six months ended June 30, 2002 and the year ended December 31, 2001,
the Company recorded no sale of any forms of Preferred Stock.
6. CAPITAL PURCHASE OF COMMON STOCK BY A PRIVATELY HELD BUSINESS
On October 26, 1999, the Company, which was previously known as Omni Assets,
Inc. (a "non-operating" public shell), sold 22,273,890 of its common shares of
stock to Inamco International Corp. (a privately held corporation). The
acquisition was deemed to be a capital purchase, by privately held corporations,
of the majority amount of common shares owned by Omni Assets, Inc. In January
2000, Omni then purchased the name of "Inamco International Corp.", and in
6
February 2000, the Company changed it name from "Omni Assets, Inc." to "Inamco
International Corp.". The listing symbol was changed from "OMNA" to "IICO". The
Company currently has a total number of shares outstanding equal to Twenty Seven
Million Six Hundred Thousand (27,600,000).
The following table provides information pertaining to owners of more than five
percent of any class of the Company's common stock.
- -------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4)
Title of Class Name and Address Amount and Nature Percentage of
of Beneficial Owner of Beneficial Owner Ownership
- -------------------------------------------------------------------------------------------------------------
Common A Inamco Services Corp.* 12,947,487 46.91%
801 Montrose Ave.
South Plainfield, NJ 07080
Common A Advanced Diagnostics Inc.* 8,326,403 30.17%
801 Montrose Ave.
South Plainfield, NJ 07080
* It should be noted that Mr. Varges George is the sole shareholder and 100%
owner of Inamco Services Corp., and Advanced Diagnostics Inc., as described
above. Accordingly, Mr. George has direct control and ownership of 21,273,890
shares of common stock, which represents approximately 77.07% of the Company`s
outstanding common shares.
SECURITY OWNERSHIP OF MANAGEMENT.
The following table provides information pertaining to shares beneficially owned
by all directors and nominees.
- -------------------------------------------------------------------------------------------------------------
(1) (2) (3) (4)
Title of Class Name and Address Amount and Nature Percentage of
of Beneficial Owner of Beneficial Owner Ownership
- -------------------------------------------------------------------------------------------------------------
Common A Varges George* 22,273,890 3.62%
President/Secretary
* It should be noted that Mr. Varges George is the sole shareholder of
Inamco Services Corp., and Advanced Diagnostics Inc., as described herein.
Accordingly, Mr. George has direct control of approximately 80.70% of Inamco
International, Corp. outstanding common shares of stock. He owns 1,000,000
shares directly in his name.
7. FOLLOW-ON OFFERING OF COMMON STOCK
For the six months ended June 30, 2002 and the year ended December 31,
2001, the Company has not recorded and/or performed any secondary or private
offering sale of securities.
8. ACQUISITION
For the six months ended June 30, 2002 and the year ended December 31, 2001,
the Company has not performed any acquisitions.
9. NEW ACCOUNTING PRONOUNCEMENTS
In July 2001, the Financial Accounting Standards Board issued FASB
Statements Nos. 141 and 142, Business Combinations and Goodwill and Other
Intangible Assets ("FAS 141" and "FAS 142," respectively). FAS 141 replaces
Accounting Principles Board Opinion No. 16 and eliminates pooling-of-interests
accounting prospectively. It also provides guidance on purchase accounting
related to the recognition of intangible assets and accounting for negative
goodwill. FAS 142 changes the accounting for goodwill from an amortization
method to an impairment-only approach. Under FAS 142, goodwill will be tested
annually and whenever events or circumstances occur indicating that goodwill
might be impaired.
7
FAS 141 and FAS 142 are effective for all business combinations completed after
June 30, 2001. Upon adoption of FAS 142, amortization of goodwill recorded for
business combinations consummated prior to July 1, 2001 will cease, and
intangible assets acquired prior to July 1, 2001 that do not meet the criteria
for recognition under FAS 141 will be reclassified to goodwill. Companies are
required to adopt FAS 142 for fiscal years beginning after December 15, 2001,
but early adoption is permitted under certain circumstances. The adoption of
these standards is not expected to have a material impact on the Company's
results of operations and financial position.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
You should read the following discussion and analysis in conjunction with
the Company`s "Financial Statements" included elsewhere in this Form 10-Q.
At present, the Company has yet to commence any operations, and does not
own any intellectual properties whatsoever. The Company is in the development
stage as defined in Financial Accounting Standards Board Statement No.7, and is
a non-operating public shell, meaning it has not commenced full-scale operations
and has insignificant assets and liabilities. Since its inception, the Company
has not had any revenues or earnings, and all future business is hypothetical
and predicated on the successful merger with an established pharmaceutical
manufacturer. Critical Accounting Policies and Management Estimates
It cannot be assured that the Company will have any accounting policies
and/or management estimates, based off of actual business operations, in the
foreseeable future. The initiation of these practices will only begin once a
successful merger with an established pharmaceutical manufacturer has been had.
However, the Securities and Exchange Commission defines critical accounting
policies as those that are, in management's view, most important to the
portrayal of the company's financial condition and results of operations and
most demanding of their judgment. Our discussion and analysis of our financial
condition and results of operations are based upon our consolidated financial
statements, which have been prepared in accordance with accounting principles
generally accepted in the US. The preparation of these financial statements
requires us to make estimates and judgments that affect the reported amounts of
assets, liabilities, revenues and expenses. We base our estimates upon
historical experience and on various other assumptions that are believed to be
reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ from these
estimates under different assumptions or conditions. If the Company should merge
with an existing pharmaceutical company, our accounting policies will include:
Revenue Recognition. Our revenue recognition policies will be in accordance
with the Securities and Exchange Commission Staff Accounting Bulletin (SAB) 101,
Revenue Recognition in Financial Statements. SAB 101 provides guidance related
to revenue recognition based on the interpretations and practices developed by
the Securities and Exchange Commission. Some of our future pharmaceutical
manufacturing agreements may contain multiple elements, including "downstream
milestones" and royalty obligations.
If revenues are to occur from "milestones", cash flow is recognized when
earned, as evidenced by written acknowledgment from our collaborator, provided
that (i) the milestone event is substantive and its achievability was not
reasonably assured at the inception of the agreement, and (ii) our performance
obligations after the milestone achievement will continue to be funded by our
collaborator at a comparable level to, or before the milestone achievement. If
both of these criteria are not met, the milestone payment can be recognized over
the remaining minimum period of our performance obligations under the agreement.
If upfront fees are to be negotiated in any future contracts, they can be
recognized over a period of time relative to the services to be provided.
Goodwill and Intangibles. Purchase accounting requires accounting estimates
and judgments to allocate the purchase price of any future acquisition to the
fair market value of the assets and liabilities purchased. Any future acquired
technology can be amortized over its useful life. The estimated useful life can
be determined based on an analysis, as of any acquisition date, of conditions
in, and the economic outlook for, the pharmaceutical industries and the patent
life of that specific technology. As with any intangible asset, we will evaluate
the value of the technology and, if necessary, we will have a future write-down
of the carrying value of the technology. If it should be determined that any
technology has become impaired, that may accelerate the amortization of any
technology if it should be deemed that its life has been shortened.
Income Taxes. At present, the Company has yet to commence any operations,
and does not own any intellectual properties whatsoever. Since its inception,
the Company has not had any revenues or earnings however, it is contemplated
that once business operations begin, we could record a valuation allowance, in
order to reduce our deferred tax assets. More consideration on future taxable
income and feasible tax planning strategies in assessing the need for a
valuation allowance will be had once a successful merger is completed.
The above is not intended to be a comprehensive list of all or any of our
present or future accounting policies. In many cases, the accounting treatment
of a particular transaction is specifically dictated by generally accepted
accounting principles, with no need for management's judgment in their
application. There are also areas in which management's judgment in selecting
any available alternative would not produce a materially different result. See
our audited consolidated financial statements and notes thereto which is
included in the Company`s Form 10, as amended, which contain accounting policies
and other disclosures required by generally accepted accounting principles.
8
Overview
Inamco International Corp. ("Inamco", the "Company", "Registrant") was
incorporated in Delaware on January 17, 1983 originally as Omni Assets, Inc.
("Omni). Omni, at the time of its inception, was established to operate as a
financial consultant. Its clients were to be other companies that needed
assistance in management, mergers and/or acquisitions, as well as the
arrangement of funding by either the introduction into the private sector or by
arranging Initial Public Offerings ("IPO") with investment banking concerns.
In September of 1999, negotiations between Mr. Varges George, the president
of Inamco Services Corp., and the Directors and majority shareholders of Omni
began. All collaborations between the parties focused upon an entity, to be
owned by Mr. George, successfully merging with Omni. There was also a mutual
understanding between the parties that Royal Capital Corp. ("Royal"), a company
to be retained, would serve as a consultant that would familiarize itself with
the merger between the two companies.
On October 26, 1999, Inamco International Corp., a Delaware Corporation
being incorporated on the 18th day of October, 1999, and being principally owned
by Mr. George, merged with Omni in a transaction solely for stock. Pursuant to
the merger agreement, 1000 shares of Inamco International Corp., were exchanged
for 22,712,500 shares of Omni. Once the merger was completed, Inamco
International Corp., terminated its corporate existence and, in February of
2000, the name of Omni was changed to Inamco International Corp.
In October of 1999, an agreement was entered into with Royal. This
agreement paid Royal for consultation services connected with the merger of the
two companies. In consideration for those services, Inamco agreed to pay
1,355,365 shares of its restricted common stock to Royal and/or it designees.
In January of 2000, preliminary steps were taken in order to measure the
feasibility of a merger and/or acquisition of Medicos Laboratories, Inc.
("Medicos") by Inamco. Medico, a company that is owned by Inamco`s president,
Mr. Varges George (a description of which is located in another section of this
Form-10), was deemed to be too much in its infancy stage to be a realistic
merger candidate. It did not have all of its laboratory equipment, proper FDA
and Good Manufacturing Procedures certification(s), and/or any revenue producing
contractual agreements. It was recommended that any arrangements to merge the
two companies be halted, until such a time, if any, that Medicos could become an
operational pharmaceutical company.
In February of 2000, the Company entered into a collaborative agreement
with Royal, so that Royal could provide certain services to Inamco on a
non-exclusive and best efforts basis. Royal contracted to familiarize itself
with the business operations, prospects and management of Inamco and make
certain recommendations in order to enhance the marketing of any future
products. In consideration of the foregoing, Inamco immediately agreed to tender
a total of 1,000,000 shares of its common stock to Royal and/or its designees.
In March of 2000, Inamco began to compensate Royal, as per their
contractual obligations. In the month of March, Inamco issued a total of
1,170,000 restricted common shares to Royal and/or their assigns.
In May of 2000, Inamco continued their compensation to Royal with an
additional issuance of 1,000,000 shares of restricted common stock to Royal
and/or their assigns.
In November of 2000, Inamco finalized the compensation to Royal with a
final issuance of 185,365 shares of restricted common stock to Royal and/or
their assigns.
The Company began to initiate certain internal business procedures by
retaining the services of a lawyer and the consulting services of an investment
banker. The Company agreed to issue 25,000 and 68,245 shares of restricted
common stock, respectably, to each. For legal services rendered, shares were
issued in May of 2000, and in November of 2000 shares were issued for
consultation services (descriptions of which can be found in the Company`s
Form-10, as amended).
To date, the ability to achieve and identify certain goals or objectives
has been dependent upon many factors, some of which are out of the Company`s
control. The ability of the Company to merge with an operating pharmaceutical
company will depend upon many factors, including the identification of a proper
merger candidate, the size of any future collaborations, the success rate of
future marketing strategies, and general and industry-specific economic
conditions which may affect any and all future business expenditures. As a
consequence, the likelihood of the Company to produce any revenues in the future
is dependent solely on a merger and/or acquisition, the success of which may
never be achieved.
9
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2002 AND 2001
Revenues
None. For the three months ended June 30, 2002 and the year ended December
31, 2001, the Company has had no revenue.
Research and Development
None. For the three months ended June 30, 2002 and the year ended December
31, 2001, the Company has performed no research and development whatsoever.
General and Administrative
General and administrative expenses are minimal, and for the quarter ended
June 30, 2002 have totaled $500, and $5 same quarter ended June 30, 2001.
General and administrative expenses consist primarily of supporting
administration of a public company and some professional fees. We expect that
our general and administrative expenses will increase substantially once a
merger and/or acquisition is consummated, in order to support our growth and
requirements as a public company.
Non-Cash Stock-Based Compensation Charges
None. For the three months ended June 30, 2002 and 2001, the Company has not
had any non-cash stock based deferred compensation.
Other Income, net
None. For the three months ended June 30, 2002 and the year ended December
31, 2001, the Company has had no other income.
SIX MONTHS ENDED JUNE 30, 2002 AND 2001
Revenues
None. For the six months ended June 30, 2002 and 2001, the Company has had
no revenue.
10
Research and Development
None. For the six months ended June 30, 2002 and the year ended December 31,
2001, the Company has performed no research and development whatsoever.
General and Administrative
General and administrative expenses are minimal, and for the quarter ended
June 30, 2002 have totaled $500, which is equal to the same quarter ended June
30, 2001. General and administrative expenses consist primarily of supporting
the needs of a public company and some professional fees. We expect that our
general and administrative expenses will increase once a merger and/or
acquisition is consummated, in order to support our growth and requirements as a
public company.
Non-Cash Stock-Based Compensation Charges
None. For the six months ended June 30, 2002 and the year ended December 31,
2001, the Company has not had any non-cash stock based deferred compensation.
Other Income, net
None. For the six months ended June 30, 2002 and 2001, the Company has had
no other income.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2002, we have accumulated a deficit of $26,897. Our
accumulated deficit is the result of expenses incurred in connection with the
acquisition of the Company and general and administrative expenses. To date, we
have funded our operations solely through "seed capital" obtained through loans
from the majority shareholder and president of the Company, Mr. Varges George.
As of June 30, 2002, we had $38 in cash and cash equivalents compared to $38
in cash and cash equivalents as of December 31, 2001.
Net cash provided by Mr. George Varges was approximately $2,168 during the
six months ended June 30, 2002 compared to net cash used for general and
administrative expenses of approximately $ 2,192 during the same period
last year.
Our Company has had no business and/or operating history, and the success of the
Company depends, in part, upon the successful performance of the president and
chief operating officer, Mr. Varges George. The Company will continue to seek
out acquisition candidates, but there can be no assurances that the Company will
ever have any revenues or be profitable or achieve positive cash flow from
operations.
11
However, based on certain preliminary negotiations and our current internal
business plan, we expect a merger and/or acquisition to occur by mid 2003. While
we believe that our current capital contributions will be sufficient to meet
certain capital requirements for at least the next two years, we cannot assure
that we will not require additional financing before such time. Our funding
requirements may change at any time due to fees associated with our acquisition
negotiations as well as costs required to complete such tasks. Our future
capital requirements will also depend on numerous other factors, including
scientific progress, additional personnel costs, progress in drug testing, the
time and cost related to proposed regulatory approvals, if any, and the costs of
filing certain applications. We cannot assure you that adequate funding will be
available to us or, if available, that such funding will be available on
acceptable terms. Any shortfall in funding could result in the curtailment of
our developmental efforts.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market risk for changes in interest rates relate primarily
to only our cash. The Company is not exposed to any market risk due to the fact
that it does not own any risk sensitive instruments, and as a developmental
stage company, our cash and investment policy emphasizes liquidity and
preservation of principal for the future growth of the Company.
PART II. OTHER INFORMATION
None.
ITEM 4. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K Change of accounting firm dated 12/15/02.
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 thereunto duly authorized.
INAMCO INTERNATIONAL, CORP.
Dated: February 12, 2003 By: /s/ VARGES GEORGE
---------------------------------
Name: Varges George
Title: President and Chief
Executive Officer
12