UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
Commission File Number: 0-25463
NETWORK INVESTOR COMMUNICATIONS INC.
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(Name of Small Business Issuer in its Charter)
Nevada 88-0367792
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
9645 Gateway Drive, Suite B, Reno, Nevada 89511
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(Address of principal executive offices)
Issuer's telephone number, including area code: (775) 852-9100
Check whether the issuer (1) filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the
past 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 during the past 90 days. Yes (x) No ( ).
<PAGE>
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
As of October 31, 1999, 1,500,000 shares of common stock were outstanding.
Transitional Small Business Disclosure Format
(Check one): Yes ( ) No (X)
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NETWORK INVESTOR COMMUNICATIONS INC.
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets - September 30, 1999 and June 30, 1999..... 4
Condensed Statements of Operations for the Three
Months Ended September 30, 1999 and 1998...................... 5
Condensed Statements of Cash Flows for the Three
Months Ended September 30, 1999 and 1998...................... 6
Condensed Statements of Stockholder's Equity (Deficit)
for the Three Months Ended September 30, 1999
and July 1, 1998 through September 30, 1999................... 7
Notes to Condensed Financial Statement September 30, 1999........... 8
Item 2. Management's Discussion And Analysis Of
Financial Condition And Results Of Operations................ 8
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NETWORK INVESTOR COMMUNICATIONS INC.
BALANCE SHEET
SEPTEMBER 30, 1999 AND JUNE 30, 1999
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
September 30, June 30,
1999 1999
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<S> <C> <C>
CURRENT ASSETS
Cash $ 89 $ 1,470
Accounts receivable 716 961
Employee advances 1,754 902
Marketable securities-available for sale 6,125 6,125
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Total Current Assets 8,684 9,458
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PROPERTY AND EQUIPMENT, NET 13,045 13,770
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OTHER ASSETS
Deposits 2,475 2,475
Organization costs, net of amortization
of $3,895 and $3,587 2,255 2,563
Customer lists, net of amortization
of $283 and $261 1,057 1,079
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Total Other Assets 5,787 6,117
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TOTAL ASSETS $ 27,516 $ 29,345
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LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)
CURRENT LIABILITIES:
Bank overdraft $ 114 $ -
Accounts payable 8,714 7,971
Shareholder loan 137,378 129,592
Payroll and other accrued liabilities 97,715 81,631
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Total Current Liabilities 243,921 219,194
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STOCKHOLDERS' EQUITY/(DEFICIT):
Capital stock, $.001 par value;
50,000,000 shares authorized; 1,500,000
shares issued and outstanding 1,500 1,500
Additional paid-in capital 102,801 102,801
Retained earnings (deficit) (316,240) (289,684)
Accumulated other comprehensive income(loss) (4,466) (4,466)
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Total Stockholders' Equity(Deficit) (216,405) (189,849)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 27,516 $ 29,345
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NETWORK INVESTOR COMMUNICATIONS INC.
STATEMENT OF OPERATIONS
(Unaudited)
</TABLE>
<TABLE>
<CAPTION>
For the For the
Three Months Three Months
Ended Ended
September 30, September 30,
1999 1998
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<S> <C> <C>
SALES $ 11,229 $ 21,310
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EXPENSES
General and administrative 32,699 70,519
Depreciation and amortization 1,055 1,284
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TOTAL OPERATING EXPENSES 33,754 71,803
Net (loss) before other items (22,525) (50,493)
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OTHER INCOME (EXPENSE)
Interest expense (4,031) (1,400)
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NET (LOSS) BEFORE TAXES (26,556) (51,893)
PROVISIONS FOR INCOME TAXES - -
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NET (LOSS) $ (26,556) $ (51,893)
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EARNINGS (LOSS) PER SHARE
Income(loss) from continuing operations
before extraordinary items $ (0.02) $ (0.03)
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Extraordinary items $ (0.00) $ (0.00)
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Net income $ (0.02) $ (0.03)
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EARNINGS (LOSS) PER SHARE-ASSUMING DILUTION
Income(loss) from continuing operations
before extraordinary items $ (0.02) $ (0.03)
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Extraordinary items $ (0.00) $ (0.00)
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Net income $ (0.02) $ (0.03)
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WEIGHTED AVERAGE SHARES OUTSTANDING 1,500,000 1,500,000
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NETWORK INVESTOR COMMUNICATIONS INC.
STATEMENT OF CASH FLOWS
(Unaudited)
</TABLE>
<TABLE>
<CAPTION>
For the For the
Three Months Three Months
Ended Ended
September 30, September 30,
1999 1998
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (26,556) $ (51,893)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 1,055 1,284
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (607) 11,328
(Increase) decrease in deposits - -
(Increase) in customer lists - -
Increase in accounts payable and accrued
liabilities 16,827 20,147
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Net cash used in operating activities (9,281) (19,134)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in organization costs - -
Purchase of property and equipment - -
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Net cash used in investing activities - -
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock, net - -
Shareholder loan-net 7,786 24,864
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Net cash provided by financing activities 7,786 24,864
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Net Increase (decrease) in Cash (1,495) 5,730
CASH AT BEGINNING PERIOD 1,470 184
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CASH AT END OF PERIOD $ (25) $ 5,914
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SUPPLEMENTAL CASH FLOW INFORMATION:
Interest expense $ 4,031 $ 1,400
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NETWORK INVESTOR COMMUNICATIONS INC.
STATEMENT OF STOCKHOLDERS' EQUITY/(DEFICIT)
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999
AND JULY 1, 1998 THROUGH SEPTEMBER 30, 1999
(Unaudited)
</TABLE>
<TABLE>
<CAPTION>
Capital Stock Accumulated
-------------------------
Shares Amount Deficit Total
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
BALANCE, July 1, 1998 1,500,000 104,301 (180,953) (76,652)
Net loss for the year ended
June 30, 1999 - - (113,197) (113,197)
---------- ---------- ----------- -----------
BALANCE, June 30, 1999 1,500,000 104,301 (294,150) (189,849)
Net loss for the three months
ended September 30, 1999 - - (26,556) (26,556)
---------- ---------- ----------- -----------
BALANCE, September 30, 1999 1,500,000 $ 104,301 $ (320,706) $ (216,405)
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NETWORK INVESTOR COMMUNCIATIONS INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
(UNAUDITED)
1. The unaudited condensed financial statements printed herein have
been prepared in accordance with the instructions to Form 10-QSB and do
not include all of the information and disclosures required by generally
accepted accounting principles. Therefore, these financial statements
should be read in conjunction with the financial statements and related
footnotes included in the Company's Form 1O-KSB for the year ended
June 30, 1999. These financial statements reflect all adjustments that
are, in the opinion of management, necessary to fairly state the results
for the interim periods reported.
2. The results of operations for the three months ended
September 30, 1999 are not necessarily indicative of the results to be
expected for the full year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
The character and holdings of the Company has remained substantially
the same since the preceding fiscal year. During the first quarter of
the current fiscal year the Company has sought to expand its business
by obtaining and securing clients in the investor relations market.
This is the primary business and focus of the Company. The readers
of the current unaudited statements are referred to the Company's
Annual Report as filed for the fiscal year ended June 30, 1999,
for a more in-depth view of the Company's financial position,
results of operations and changes in cash flows. Accordingly,
management's discussion as set forth below focuses primarily on
the quarter ended September 30, 1999.
LIQUIDITY
During the three months ended September 30, 1999, the Company's
working capital decreased by approximately $25,501. The Company
does not currently have sufficient capital in its accounts, nor
sufficient firm commitments for capital to assure its ability
to meet its current obligations or to continue its planned
operations. The Company is continuing to pursue working capital
and additional revenue through existing and new clients, but there
is no assurance that any of the planned activities will be successful.
PAGE 8
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CAPITAL RESOURCES
As a result of its limited liquidity, the Company has limited access
to additional capital resources. The Company does not have
the capital to totally fund the obligations that have matured
or debts that remain currently payable or other debts incurred during
the most recent fiscal quarter.
The Company currently has been funded by an officer and director of the
Company. This has been by the deferral of the officer's compensation
and the lending of certain monies to the Company for ten percent
demand notes.
The Company has received additional capital through the expansion
of vendor financing.
The officer and director of the Company has limited capital that
he can lend to the Company to meet its current obligations and
fund the operating losses. The management of the Company is seeking
addition private financing from certain outside parties to continue
to pursue the business activities of the Company. Though the obtaining
of the additional capital is not guaranteed, the management of the
Company believes it will be able to obtain the capital required to
meet its current obligations and pursue its business activities.
OPERATIONS
In the previous year ended June 30, 1999, the Company has been
seeking new clients and long term contracts with existing clients.
During the quarter ended September 30, 1999, the Company has been
negotiating with such clients to ensure the revenues needed to
continue its business activities.
The Company reduced its operating overhead in late February by
approximately thirty percent until it is successful in securing
new client business and the related cash flows from such activities.
Until such time as the Company is able to obtain the revenues needed
from its operations to meet its obligations, the Company will be
dependent upon sources other than operating revenues to meet its
operating and capital needs. Operating revenues may never satisfy
these needs.
The current market the Company operates under is a very competitive
market and there exists many other competitors with greater
capital and contacts in the industry seeking the same clients.
The Company believes it will obtain a certain percentage of such
clients to generate the revenues needed to continue its business
plans. Until then, the Company will need additional capital other
than that provided through its operations.
PAGE 9
<PAGE>
YEAR 2000 COMPUTER PROBLEM
The Year 2000, or Y2K, problem concerns potential failure of certain
computer software to correctly process information because of the
software's inability to calculate dates. As the Company is service
based, the Company does not depend on inventory or the sale of goods
and does not anticipate any Y2K problems. The Company's computer
system is PC based and has been updated with the latest software.
Additionally, the Company has all of its material saved on
alternative media from that of the PC's hard drives in case of a
computer problem.
FORWARD-LOOKING STATEMENTS
The statements in this Form 10-QSB that are not historical facts or
statements of current status are forward-looking statements (as
defined in the Private Securities Litigation Reform Act of 1995)
that involve risks and uncertainties. Actual results may differ
materially.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
NETWORK INVESTOR COMMUNICATIONS INC.
Date: November 9, 1999 By: /S/ ROBERT R. DELLER
Robert R. Deller
President and Director
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