<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from _____________ to _____________
Commission file number 000-30244
CYCO.NET, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 13-3389415
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
4201 G. Yale Boulevard, NE, Albuquerque, New Mexico
(Address of principal executive offices)
(505) 344-9643
(Issuer's telephone number)
600 Central Avenue, SW, Albuquerque, NM 87102
(Former name, former address and former fiscal year, if changed
since last report)
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes [ ] No [ ]
Not Applicable
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 20,890,419 shares of common stock.
Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
Indicate by mark whether the registrant (1) has filed all 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 bee subject to filing requirements for the past 90 days.
Yes [ ] No [x]
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PART I-- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
Cyconet, Inc. and Subsidiary
Consolidated Balance Sheet
June 30, 2000
(Unaudited)
<TABLE>
<S> <C>
ASSETS
Current Assets:
Cash $ 70,875
Accounts receivable 68,474
Other receivables 33,204
Inventory 1,724
---------
Total Current Assets 174,277
---------
Other assets
Available for sale securities 29,688
---------
$ 203,965
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 139,310
Note payable 10,000
Due to officers 25,482
---------
Total Current Liabilities 174,792
---------
Stockholders' equity
Common stock, $0.001 par value,
30,000,000 shares authorized,
20,360,419 issued and outstanding 20,360
Additional paid in capital 185,845
Accumulated deficit (156,720)
Accumulated other comprehensive income:
Unrealized (loss) on available for sale securities (20,312)
---------
Total stockholders' equity 29,173
---------
$ 203,965
=========
</TABLE>
See accompanying notes to consolidated financial statements.
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Cyconet, Inc. and Subsidiary
Consolidated Statements of Operations
For the Six Months Ended June 30, 1999 and 2000
(Unaudited)
<TABLE>
<CAPTION>
1999 2000
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<S> <C> <C>
Revenue $ -- $ 652,029
Operating expenses:
Cost of sales -- 578,091
General and administrative expenses 26,638 90,216
------------ ------------
26,638 668,307
Net income (loss) (26,638) (16,278)
Other comprehensive income:
Unrealized gain (loss) on available for
sale securities -- 21,876
------------ ------------
Comprehensive income (loss) $ (26,638) $ 5,598
============ ============
Per share information:
Weighted average shares outstanding - basic and
fully diluted 7,327,033 20,219,210
============ ============
Net income (loss) per share - basic and fully
diluted $ (0.00) $ (0.00))
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 4
Cyconet, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1999 and 2000
(Unaudited)
<TABLE>
<CAPTION>
1999 2000
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<S> <C> <C>
Cash flows from operating activities:
Net cash provided by (used in) operating activities $(20,031) $ 5,656
-------- --------
Cash flows from investing activities:
Net cash provided by investing activities -- --
-------- --------
Cash flows from financing activities:
Net cash provided by financing activities 32,000 54,482
-------- --------
Net increase (decrease) in cash 11,969 60,138
Beginning - cash balance -- 10,737
-------- --------
Ending - cash balance $ 11,969 $ 70,875
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 5
Cyco.net, Inc.
Notes to Consolidated Financial Statements
June 30, 2000
(Unaudited)
(1) Basis Of Presentation
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles ("GAAP") for interim financial
information and Item 310(b) of Regulation SB. They do not include all of the
information and footnotes required by GAAP for complete financial statements. In
the opinion of management, all adjustments (consisting only of normal recurring
adjustments) considered necessary for a fair presentation have been included.
The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the full year. For further
information, refer to the financial statements of the Company as of December 31,
1999 including notes thereto included in the Company's Form 10-SB.
The accompanying consolidated financial statements include the accounts of the
Company and its subsidiary. Intercompany transactions and balances have been
eliminated in consolidation.
(2) Earnings Per Share
The Company calculates net income (loss) per share as required by SFAS No. 128,
"Earnings per Share." Basic earnings (loss) per share is calculated by dividing
net income (loss) by the weighted average number of common shares outstanding
for the period. Diluted earnings (loss) per share is calculated by dividing net
income (loss) by the weighted average number of common shares and dilutive
common stock equivalents outstanding. During the periods presented common stock
equivalents were not considered as their effect would be anti dilutive.
(3) Impairment of Long Lived Assets
Long lived assets and certain identifiable intangibles held and used by the
Company are reviewed for possible impairment whenever events or circumstances
indicate the carrying amount of an asset may not be recoverable or is impaired.
Management has not identified any impairment losses as of June 30, 2000.
(4) Reclassifications
Certain amounts included in the accompanying financial statements from the
previous year have been reclassified to conform to the current year's
presentation.
(5) Marketable Securities
The Company's marketable securities consist of an investment in equity
securities and are classified as available for sale. The net unrealized gains
(losses) are included in accumulated other comprehensive income as a component
of stockholders' equity.
Marketable securities consist of the following at June 30, 2000:
<TABLE>
<CAPTION>
Amortized Fair Market Unrealized
Cost Value Gain (loss)
--------- ----------- -----------
<S> <C> <C> <C>
Prime Companies, Inc (25,000 shares) $ 50,000 $ 29,688 $ (20,312)
</TABLE>
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Cyco.net, Inc.
Notes to Consolidated Financial Statements
June 30, 2000
(Unaudited)
(Continued)
(6) Stockholders' Equity
During the period from January through June, 2000, the Company issued 420,000
shares of its $0.001 par value common stock to various investors at prices
ranging from $0.05 to $0.10 per share for cash aggregating $32,000.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
Cyco.Net has been focusing on maximizing the number of hits or visitors per day.
As more visitors visit Cyco.Net, the Company is positioning itself to take
advantage of the audience it is attracting. Currently, through its E-Commerce
websites, abbakisomkes.com and cycocigs.com, it is attracting many customers for
the sale of cigarettes. These Customers are potential customers for a plethora
of products and services that will be provided by the site, its owned companies,
affiliates and advisors.
Cyco.Net is continuing with its 12 month focus to tend to sales growth and gain
additional traffic to its e-commerce sites by:
o locating appropriate facilities in which to conduct shipping
of product.
o Launching an affiliate program to build traffic to its
e-commerce sites.
o Advertising through print ads, e-newsletters and e-mails to
target markets.
o Continue funding efforts o Maintain and add features to the
Cyco.net site, i.e. location cameras providing live feed from
worldwide locations of interest.
o Pursue advertising contracts from major tobacco and spirit
manufacturers.
o Hire additional employees as needed. The hiring of 1-2
employees is projected in the next 12 months.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
Not Applicable
ITEM 2. CHANGES IN SECURITIES.
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not Applicable
ITEM 5. OTHER INFORMATION.
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On June 8, 2000, the Company issued a total of 50,000 shares of its
0.001 par value stock to Patrick L. Kinsella at a purchase price of $0.10 per
share, total funds received $5,000. Share price of this private placement was
arbitrarily determined.
On June 22, 2000, the Company issued a total of 50,000 shares of its
0.001 par value stock to Aztec Trust at a purchase price of $0.10 per share,
total funds received $5,000. Share price of this private placement was
arbitrarily determined.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
Not Applicable
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.
CYCO.NET, Inc.
(Registrant)
Date 11-21-2000 /s/ RICHARD A. URREA
----------------------- ---------------------------------------
Richard A. Urrea, President
Date 11-21-2000 /s/ DANIEL URREA
----------------------- ---------------------------------------
Daniel Urrea, Chief Financial Officer
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INDEX TO EXHIBITS
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<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
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<S> <C>
27 Financial Data Schedule
</TABLE>
