U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 2000
---------------------------
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
-------------------- ----------------------
Commission File Number: 0-30096
------------
HOME.WEB, INC.
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
NEVADA 77-0454933
------ -------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8412 ARMSTRONG ROAD
LANGLEY, BRITISH COLUMBIA, V1M 3P5, CANADA
------------------------------------------
(Address of principal executive offices)
(604) 888-6797
--------------
(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports 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 for the past 90 days. Yes [X] No [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date: As of September 30, 2000,
32,876,400 shares of Common Stock, par value $0.001, were issued and
outstanding.
Transitional Small Business Disclosure Format (Check One): Yes [ ] No [X]
- 1 -
<PAGE>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
TABLE OF CONTENTS
Page
----
PART I - FINANCIAL INFORMATION. . . . . . . . . . . . . . . . . . . . . 3
Item 1. Financial Statements . . . . . . . . . . . . . . . . . . . . 3
Balance Sheets as of September 30, 2000 (Unaudited) . . . . . . . . 3
Statement of Operations for the nine months ended
September 30, 2000 and 1999 (Unaudited) . . . . . . . . . . . . . . 4
Statement of Operations for the three months ended
September 30, 2000 and 1999 (Unaudited) . . . . . . . . . . . . . . 5
Statements of Shareholders' Equity for the nine months ended
September 30, 2000 and 1999 (Unaudited) . . . . . . . . . . . . . . 6
Statements of Cash Flows for the nine months ended
September 30, 2000 and 1999 (Unaudited) . . . . . . . . . . . . . . 7
Summary of Significant Accounting Policies. . . . . . . . . . . . . 8
Notes to Financial Statements (Unaudited) . . . . . . . . . . . . . 9
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. . . . . . . . . . . . . . . . . . 12
PART II - OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . 15
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . 15
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . . . . 15
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . 15
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
- 2 -
<PAGE>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
As of September 30, 2000 (Unaudited)
ASSETS 2000
------ ------------
Current assets
Cash in Bank $ 0
Non-trade receivable 1,450
------------
Total current assets $ 1,450
Equipment
Coolers and equipment 40,308
Office equipment 9,841
------------
50,149
Accumulated depreciation (9,288)
------------
Total Equipment 40,861
Other Assets
Trade name 11,000
------------
Total other assets 11,000
------------
TOTAL ASSETS $ 53,311
============
LIABILITIES & SHAREHOLDER'S EQUITY
----------------------------------
Current liabilities
Accounts Payable $ 1,426
California Franchise Tax payable 0
Loan from affiliate 25,962
------------
Total current liabilities 27,388
------------
SHAREHOLDER'S EQUITY
--------------------
Capital stock 27,507
Paid in capital 1,347,493
Deficit accumulated during development stage (1,349,077)
------------
Total shareholders' equity 25,923
------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 53,311
============
See accompanying notes to the financial statements.
- 3 -
<PAGE>
<TABLE>
<CAPTION>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
For the 9 months ended September 30, 2000 and 1999 (Unaudited)
Nine months ended September 30, 2000
Cash Flows
Accumulated During
-------------------------- Development Stage
1999 2000
------------ ------------ --------------------
<S> <C> <C> <C>
Sales $ 0 $ 528 $ 18,887
Cost of Sales 0 523 15,091
------------ ------------ --------------------
Gross Margin 5 3,796
EXPENSES
Advertising 856
Amortization 1,584
Consulting Fees 2,929 5,500 14,125
Equipment Rental 2,339
Depreciation 3,963 9,288
Licenses and Taxes 145 370
Office Help 1,591 12,432
Office Supplies 70 588 3,830
Postage 673
Travel, meals and entertainment 54 2,679
Rent, utilities and telephone 248 3,591
Organization and start up costs 15,318 41,674
Compensation due stock issuance 1,254,500
------------ ------------ --------------------
Total expenses 2,999 27,407 1,347,941
------------ ------------ --------------------
(Loss) from operations (2,999) (27,402) (1,344,145)
------------ ------------ --------------------
Other Income (expense)
Interest 50
Nondeductible penalties 716 882
State tax expense 800 1,600 4,000
------------ ------------ --------------------
Total other expenses 800 2,316 4,932
------------ ------------ --------------------
Net Loss $ (3,799) $ (29,718) $(1,349,077)
============ ============ ====================
Loss per share of common stock $ (0.0001) $ (0.0010) $ (0.0410)
Weighted average of shares outstanding 32,876,400 27,157,000 32,876,400
============ ============ ====================
</TABLE>
See accompanying notes to the financial statements.
- 4 -
<PAGE>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
For the 3 months ended September 30, 2000 and 1999 (Unaudited)
2000 1999
------ ------
EXPENSES
Consulting Fees 2,929 -
Depreciation - 1,321
Office supplies - 3
------ ------
NET LOSS $2,929 $1,324
====== ======
See accompanying notes to the financial statements.
- 5 -
<PAGE>
<TABLE>
<CAPTION>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF SHAREHOLDERS' EQUITY
For the 9 months ended September 30, 2000 and 1999 (Unaudited)
1999
Deficit
Common Stock Accumulated
------------ During
Paid in Development
Shares Amount Capital Stage Total
---------- ------------------------------------ --------
<S> <C> <C> <C> <C> <C>
Balance,
December 31, 1998 27,497,000 $ 27,497 $ 1,347,003 $(1,315,513) $58,987
Common stock issued 10,000 10 490 500
Net loss for the period (29,718) (29,718)
ended September 30, 1999
---------- ------------------------------------ --------
27,507,000 $ 27,507 $ 1,347,493 $(1,345,231) $29,769
========== ========= =========== ============ ========
2000
----
Balance,
December 31, 1999 27,507,000 $ 27,507 $ 1,347,493 $(1,345,278) $29,722
February 23, 2000,
Forward stock split 5,369,400
Net loss for the period
ended September 30,2000 (3,799) (3,799)
---------- ------------------------------------ --------
32,876,400 $ 27,507 $ 1,347,493 (1,349,077) 25,923
========== ========= =========== ============ ========
</TABLE>
See accompanying notes to the financial statements.
- 6 -
<PAGE>
<TABLE>
<CAPTION>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOW - INDIRECT METHOD
For the nine months ended September 30, 2000 and 1999 (Unaudited)
2000 1999 September 30, 2000
Cash Flows
Accumulated During
Development Stage
-------------------------------------------
<S> <C> <C> <C>
CASH
CASH FLOWS FROM OPERATING ACTIVITES
Net Income (loss) $ (3,799) $ (29,718) $ (1,349,077)
Adjustments to reconcile net income to net cash
Provided by operating activities
Depreciation and amortization - 3,963 9,288
Stock issued for services - - 1,254,500
Expensing of organizational costs - 2,366 2,366
Attorney fees for stock - 500 500
Increases in accounts receivable - - (1,450)
Increases in current liabilities 3,792 22,792 27,388
----------- ---------- ------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES (7) (97) (56,485)
INVESTING ACTIVITIES
Increase in other assets - - 13,366
Purchase of equipment - - 50,149
----------- ---------- ------------------
NET CASH USED IN INVESTING ACTIVITIES - - 63,515
FINANCING ACTIVITIES
Sale of common stock - - 120,000
----------- ---------- ------------------
INCREASE (DECREASE) IN CASH AND CASH (7) (97) 0
Cash and cash equivalents at the beginning of the period 7 97 0
----------- ---------- ------------------
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $ 0 $ 0 $ 0
=========== ========== ==================
</TABLE>
See accompanying notes to financial statements.
- 7 -
<PAGE>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
For the nine months ended September 30, 2000 and 1999
1. Development Stage Company
---------------------------
Home.Web Inc. (the "Company") is a development stage company as defined in the
Financial Accounting Standard Board No. 7. The Company is devoting substantially
all of its present efforts in securing and establishing a new business, and
although planned principal operations have commenced, substantial revenues have
yet to be realized.
2. Use of estimates
------------------
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly,
actual results could differ from these estimates.
3. Cash equivalents
-----------------
For the purpose of the statement of cash flows, the company considers all highly
liquid debt instruments purchased with the original maturity of three months or
less to be cash equivalents.
4. Organization and Business Start Up and Amortization
---------------------------------------------------------
Organization costs were expensed during the period ending March 31, 1999 in
accordance with SOP 98-5. Management made the election to expense the costs for
years beginning January 1, 1999.
5. Income Taxes
-------------
Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related primarily to differences between the recorded book basis and tax basis
of assets and liabilities for financial and income tax reporting. The deferred
tax assets and liabilities represent the future tax return consequences of those
differences, which will either be taxable or deductible when the assets and
liabilities are recovered or settle. Deferred taxes are also recognized for
operating losses that are available to offset future taxable income and tax
credits that are available to offset future federal income taxes.
6. Common Stock
-------------
Common stock is at .001 par value with 50,000,000 shares authorized, 32,876,400
and 27,147,000 outstanding as of September 30, 2000 and 1999 respectively.
- 8 -
<PAGE>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
For the three and nine months ended September 30, 2000 and 1999 (Unaudited)
Note 1. Background
----------
The Company was incorporated under the laws of the State of Nevada on September
15,1995. The principal activities of the Company, from the beginning of the
development stage, have been organizational matters and the sale of stock. The
Company was formed to sell wholesale gourmet and specialty cheese on the
Internet. During the period ending September 30, 2000 and 1999 the Company had
sales and incurred expenses against those sales, but the activity was immaterial
for the purposes of SFAS No. 7.
Note 2. Related Party Transactions
----------------------------
During the period ending September 30, 2000 an affiliated company advanced the
Company $20,908. This money was used to pay off the accounts payable as of June
30, 2000. There were no material related party transactions for the three-month
period ending September 30, 1999.
Note 3. Income taxes
-------------
The benefit for income taxes from operations consisted of the following
components: current tax benefit of $ 5,458 for September 30, 2000 and $ 4,458 as
of September 30, 1999 resulting from a net loss before income taxes, and
deferred tax expenses of $ 5,458 and $ 4,458 respectively resulting from a
valuation allowance recorded against the deferred tax asset resulting from net
operating losses. Net operating loss carry forward will expire in 2013.
The valuation allowance will be evaluated at the end of each year, considering
positive and negative evidence about whether the asset will be realized. At the
time, the allowance will either be increased or reduced; reduction would result
in the complete elimination of the allowance if positive evidence indicates that
the value of the deferred tax asset is no longer required.
Note 4. Common Stock
------------
During the period ending September 30, 1999, pursuant to an exemption under Rule
504of Regulation D of the Securities Act of 1933, as amended (the Act), the
Company sold solely to accredited and/or sophisticated investors, its common
stock. The only transaction during the period of September 30, 1999 was 10,000
shares of stock issued to the corporate counsel in exchange for legal services
to the corporation.
On February 10, 2000, the Board of Directors voted a 1.2:1 forward stock split
as of the record date of February 23, 2000.
- 9 -
<PAGE>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
Note 5. Stock options
--------------
It was also voted upon at the organizational meeting during 1997 to grant
options to officers of the corporation and MVI, an affiliated company along with
one of the employees of MVI. The options can be exercised at $.001. The
options to be exercised are 1,250,000 and have no expiration date. These
options are considered compensatory and the expense was recognized in the prior
year.
There were no options exercised during the nine-month period ending September
30, 2000.
Note 6. Property, equipment and depreciation
---------------------------------------
Property and equipment are recorded at cost. Maintenance and repairs are
expensed as incurred; major renewals and betterments are capitalized. When items
of property and equipment are sold or retired, the related costs and accumulated
depreciation are removed from the accounts and any gain or loss is included in
income.
Depreciation expense for the period ending September 30, 2000 and 1999 was $0
and $3,963 respectively.
Note 7. Major customer
---------------
The Company had a purchase commitment to purchase the Company's merchandise from
a non-affiliated company. This customer is also to take physical possession of
the Company's major assets and use those assets in the ordinary course of its
business. Terms are discussed more fully in Note 9.
Note 8. Subsequent Events
------------------
On October 16, 2000, principal shareholders of the Company returned to treasury
28,800,000 shares of Common Stock as contemplated by an Agreement and Plan of
Reorganization with Duro Enzyme Products Inc. executed on August 1, 2000. On
September 29, 2000, the Company authorized the issuance of 28,800,000 shares of
Common Stock of the Company to shareholders of Duro Enzyme Products Inc. On
October 16, 2000, the Company issued the 28,800,000 shares of Common Stock
pursuant to a voluntary share exchange with the shareholders of Duro Enzyme
Products Inc. The 28,800,000 shares issued to shareholders of Duro Enzyme
Products Inc. represented over 80% of the issued and outstanding shares of
Common Stock of the Company and therefore resulted in a change in control of the
Company. By virtue of this issuance, Home.Web acquired 100% of the issued and
outstanding capital of Duro Enzyme Products Inc., which had net assets of
$1,023,515 as of September 30, 2000. Pro forma net assets of the combined
entities as of September 30, 2000 were $1,076,826. For more information on the
business combination, please see the Home.Web, Inc. report on Form 8-K dated
October 16, 2000 and filed on November 1, 2000, as amended, with the SEC.
- 10 -
<PAGE>
HOME WEB, INCORPORATED
(A DEVELOPMENT STAGE COMPANY)
Note 9. Going Concern
--------------
As of September 30, 2000, the Company had net losses from operating activities
which raise substantial doubt about its ability to continue as a going concern.
The Company is in the process of raising initial capital through a public
offering of its common stock, which is expected to provide liquidity until
operations become profitable. The Company has obtained a commitment for up to
$150,000 from a significant shareholder, Monterey Ventures, Inc. for funding
over the next twelve months. The funds would be paid distributed in increments
per requests from the Company on an "as needed" basis. Under the agreement, the
Company can repay the borrowed funds in increments as the Company receives
payment from its' customers. Also in the credit agreement is any funds needed
for longer than twelve months would be considered long term debt. This type of
funding, if needed, would be structured for a twenty- four or thirty-six month
payoff not to exceed $ 25,000 in requests in the first year of operations.
The Company has signed an agreement with Internet Food Company to purchase its'
products. Internet Food Company has already penetrated the hotel and gift basket
market and has further developed a web site to market its goods. The two
companies are in the process of identifying specific products that Home Web.
Inc. would supply wholesale.
The Company's ability to continue as a going concern is dependent upon a
successful public offering and ultimately achieving profitable operations. There
is no assurance that the Company will be successful in its efforts to raise
additional proceeds or achieve profitable operations. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.
Note 10. Stock Options
--------------
Stock that is issued for services rendered is recorded at the fair value of the
stock in the year that the stock is given and recorded as an expense in the
same year.
Note 11. Material Adjustments
---------------------
Management represents that all material adjustments to the financial statements
have been made.
- 11 -
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
--------------------------------------------------------------------------------
OF OPERATIONS
--------------
This Form 10-QSB contains forward-looking statements. The words "anticipate",
"believe", "expect", "plan", "intend", "estimate", "project", "could", "may",
"foresee", and similar expressions identify forward-looking statements that
involve risks and uncertainties. You should not place undue reliance on forward-
looking statements in this Form 10-QSB because of their inherent uncertainty.
The following discussion and analysis should be read in conjunction with the
Financial Statements and Notes thereto and other financial information included
in this Form 10-QSB that involve risks and uncertainties. Actual results could
differ materially from the results discussed in the forward-looking statements.
BUSINESS
On October 16, 2000, the Company conducted a voluntary share exchange with the
shareholders of Duro Enzyme Products Inc. ("Duro Enzyme") to exchange all of
the issued and outstanding shares of Duro Enzyme for 28,800,000 shares of Common
Stock of the Company. The effect of the share exchange was to transfer control
of the Company to the shareholders of Duro Enzyme. The Company effectively took
control of all of the assets of Duro Enzyme, including its subsidiaries. The
majority of shares of the Company are now held by former shareholders of Duro
Enzyme. Following the share exchange, the Company has offices in both Canada
and the United States and has changed the focus of its business from gourmet and
specialty cheeses to recycling technology. Its Canadian office is located
adjacent to the site of its prototype DuroZyme Plant and Technology Development
Center in Langley, British Columbia.
Duro Enzyme has the license to utilize and exploit the DuroZyme Plant and 3SF
Technology anywhere in the world. Through application of the technology, the
Company can manufacture unique, stable and natural enzymes and specialty end
products.
This technology solves a major environmental problem and provides the world with
unique, stable and natural enzyme products.
Duro Enzyme has two subsidiaries:
Duro Enzyme Solutions Inc. ("Duro Solutions USA"), a Nevada corporation,
----------------------------------------------------
holds all the licenses and rights to the 3SF Technology and service as the sole
sublicensor of the technology. Duro Solutions USA provides technical support to
the DuroZyme Plants, including quality control and assurance functions and
training in the United States.
Duro Enzyme Solutions Inc. ("Duro Solutions Canada"), a Canadian
----------------------------------------------------------
corporation, is responsible for managing and operating the Company's Technology
Development Center, for carrying out and managing the corporate research and new
product development, for protection of intellectual property, and for bringing
new ideas to commercialization, through research and development contracts with
Thermo Enzyme Products Inc.
- 12 -
<PAGE>
STATUS OF OPERATIONS
During the nine months ended September 30, 2000 the operations of the Company
were suspended. On October 16, 2000, the Company acquired Duro Enzyme Products
Inc. The operations of the Company after October 16, 2000 consist entirely of
the business of Duro Enzyme Products Inc.
PLAN OF OPERATIONS
With the acquisition of Duro Enzyme, the Company has shifted its business
operations away from gourmet and specialty cheeses to recycling technologies.
The new business is in the early stages of operations and is focused on
implementing and developing its business plan to meet its growth objectives.
The majority of the current resources of the Company will focus on developing
the recycling technologies of Duro Enzyme.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Nine Months Ended September 30, 2000 Compared to the Nine Months Ended September
30, 1999.
This information has been derived from unaudited interim financial statements
for the periods ended September 30, 2000 and 1999. Results of operations for any
interim period are not necessarily indicative of results to be expected from the
full fiscal year.
During the third quarter, there was no significant change in the Company's
financial condition or operations. The Company had no sales revenue for the
nine months ended September 30, 2000. During the third quarter of 1999, the
Company did not have any sales revenue. The operations of the business had been
suspended to allow management to review and refocus its direction. As reported
in the report on Form 8-K dated October 16, 2000 and filed November 1, 2000, the
members of the Board of Directors and executive officers were replaced on
September 29, 2000. The new directors and officers will focus their efforts on
the newly acquired business of Duro Enzyme.
LIQUIDITY AND CAPITAL RESOURCES
No material commitments for capital expenditures were made during the third
quarter and the expenditures during the fourth quarter are not presently
determinable based on the change in management.
However, the Company believes it has sufficient cash resources to operate its
business over the next twelve months. Depending on market acceptance of the
Company's current business model, the Company will raise additional funds,
either debt or equity, to augment future growth of the business.
Management believes that current cash balances and cash flows from operations,
if any, will be sufficient to meet present growth strategies and related working
capital and capital expenditure requirements. The current business plan
proposes significant increases in spending when compared to historical
expenditures. Management may decide to raise additional capital through the
issuance of additional debt or equity securities.
- 13 -
<PAGE>
The Company plans to utilize a combination of internally generated funds from
operations, potential debt and / or equity financings to fund its longer-term
growth over a period of two to five years. The availability of future
financings will depend on market conditions. A portion of the funds will be
needed to grow the business through acquisitions of other businesses.
The forecast of the period of time through which the Company's financial
resources will be adequate to support operations is a forward-looking statement
that involves risks and uncertainties. The actual funding requirements may
differ materially from this as a result of a number of factors including plans
to rapidly expand its new operations.
EFFECT OF FLUCTUATIONS IN FOREIGN EXCHANGE RATES
The Company's current operations are now located outside the United States. The
functional currency for this foreign operation is the local currency. The
carrying value of the Company's investments in Canada is subject to the risk of
foreign currency fluctuations. Any revenues received from the Company's
international operations will be subject to foreign exchange risk.
RISK FACTORS
THE COMPANY MAY REQUIRE ADDITIONAL EQUITY FINANCING, WHICH MAY NOT BE
AVAILABLE AND MAY DILUTE THE OWNERSHIP INTERESTS OF INVESTORS.
The Company's ultimate success will depend on its ability to raise additional
capital. No commitments to provide additional funds have been made by
management or other shareholders. The Company has not investigated the
availability, source or terms that might govern the acquisition of additional
financing. When additional capital is needed, there is no assurance that funds
will be available from any source or, if available, that they can be obtained on
terms acceptable to the Company. If not available, the Company's operations
could be severely limited, and it may not be able to implement its business
plan. If equity financing is used to raise additional working capital, the
ownership interests of existing shareholders may be diluted.
THE COMPANY'S OPERATING RESULTS ARE LIKELY TO FLUCTUATE SIGNIFICANTLY.
As a result of the Company's limited operating history following the acquisition
of Duro Enzyme and the planned rapid expansion of its business operations, the
Company's quarterly and annual revenues and operating results are likely to
fluctuate from period to period. For this reason, you should not rely on
period-to-period comparisons of the Company's financial results as indications
of future results. The Company's future operating results could fall below the
expectations of public market analysts or investors and significantly reduce the
market price of its common stock. Fluctuations in the Company's operating
results will likely increase the volatility of its stock price.
- 14 -
<PAGE>
THE COMPANY'S DEPENDENCE ON RELATIONSHIPS WITH BUSINESSES AND GOVERNMENTS
OUTSIDE OF THE UNITED STATES INVOLVES RISKS.
The Company depends on its ability to establish and maintain successful
relationships with businesses and governments located outside of the United
States. If the Company is unable to establish and maintain such relationships,
it will not be able to implement the business plan in its current configuration,
which will affect both its revenue stream and profit potential. In addition,
the Company faces political sovereign risks of conducting international
business, including risks of changing economic conditions, which may have a
material adverse effect on its ability to expand its operations globally.
POTENTIAL BUSINESS COMBINATIONS COULD BE DIFFICULT TO INTEGRATE AND DISRUPT
BUSINESS OPERATIONS.
Any acquisition of or business combination with another company could disrupt
the Company's ongoing business, distract management and employees and increase
the Company's expenses. If another company acquires the Company, it could face
difficulties in assimilating with that company's personnel and operations.
Acquisitions also involve the need for integration into existing administration,
services, marketing, and support efforts.
THE COMPANY DOES NOT ANTICIPATE PAYING DIVIDENDS TO COMMON SHAREHOLDERS IN
THE FORESEEABLE FUTURE, WHICH MAKES INVESTMENT IN THE COMPANY SPECULATIVE
OR RISKY.
The Company has not paid dividends on its common stock and does not anticipate
paying dividends on its common stock in the foreseeable future. The Board of
Directors has sole authority to declare dividends payable to the Company's
shareholders. The fact that the Company has not and does not plan to pay
dividends indicates that the Company must use all of its funds generated by
operations for reinvestment in its operating activities and also emphasizes that
the Company may not continue as a going concern. Investors also must evaluate
an investment in the Company solely on the basis of anticipated capital gains.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
----------------------------
None
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
---------------------------------------------------------
None
- 15 -
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
-----------------------------------------------
(a) EXHIBITS. The following exhibits accompany this Form 10-QSB:
EXHIBIT NO. DESCRIPTION
----------- -----------
10.1 License and Distribution Agreement between Thermo Enzyme Products
Inc. and Duro Enzyme Solutions Inc. (U.S.)September 21, 2000
10.2 Research and Development Services Agreement - Canada between Thermo
Enzyme Products Inc. and Duro Enzyme Solutions Inc. Canada dated
September 21, 2000
10.3 Research and Development Services Agreement United States between
Thermo Enzyme Products Inc. and Duro Enzyme Solutions Inc.
(U.S.) and Duro Enzyme Products Inc. dated September 21, 2000
27.1 Financial Data Schedule
(b) REPORTS ON FORM 8-K.
The Company did not file any reports on Form 8-K during the quarter ended
September 30, 2000.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
HOME.WEB, INC.
/s/ Robert Jackman 11/20/00
--------------------------- ---------------
Robert Jackman, President Date
- 16 -
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
----------- -----------
10.1 License and Distribution Agreement between Thermo Enzyme Products
Inc. and Duro Enzyme Solutions Inc. (U.S.)September 21, 2000
10.2 Research and Development Services Agreement - Canada between Thermo
Enzyme Products Inc. and Duro Enzyme Solutions Inc. Canada dated
September 21, 2000
10.3 Research and Development Services Agreement United States between
Thermo Enzyme Products Inc. and Duro Enzyme Solutions Inc.
(U.S.) and Duro Enzyme Products Inc. dated September 21, 2000
27.1 Financial Data Schedule
- 17 -
<PAGE>
