Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
[ ] TRANSITION REPORT UNDER SECTION 14 OR 15(D) OF THE EXCHANGE ACT
For the transition period from__________ to ___________
INSIDERSTREET.COM INC.
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(Name of Registrant as specified in its charter)
Sierra Holdings Group, Inc.
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(Former Name of Registrant)
Nevada 0-23995 87-0576421
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(State or other jurisdiction of (Commission File (IRS Employer
incorporation or organization) No.) Identification No.)
202 East Madison Street, Tampa Florida 33602
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(Address and telephone number of principal executive offices)
Check whether the issuer has (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months, (or such
shorter period that the Registrant was required to file such report(s), and (2)
has been subject to such filing requirements for the past 90 days.
Yes (X) No ( )
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: May 31, 2000
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CLASS Outstanding at May 31, 2000
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Common stock $.001 Par Value 6,407,515
<PAGE>
Part I. Financial Information
INSIDERSTREET.COM, INC.
AND SUBSIDIARY
CONTENTS
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PAGE 2 CONSOLIDATED BALANCE SHEET AT APRIL 30, 2000
PAGE 3 CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS FOR THE THREE AND SIX
MONTHS ENDED APRIL 30, 2000
PAGE 4 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX
MONTHS ENDED APRIL 30, 2000
PAGE 5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1
<PAGE>
INSIDERSTREET.COM, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
APRIL 30, 2000
(UNAUDITED)
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<TABLE>
<CAPTION>
ASSETS
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CURRENT ASSETS
<S> <C>
Cash $ 3,840
Accounts receivable 9,000
Other receivable 500
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Total Current Assets 13,340
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PROPERTY & EQUIPMENT - NET 11,255
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OTHER ASSETS
Investments, net 798,780
Deposits 6,115
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Total Other Assets 804,895
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TOTAL ASSETS $ 829,490
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LIABILITIES AND STOCKHOLDERS' DEFICIENCY
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CURRENT LIABILITIES
Accounts payable $ 29,357
Accrued expense 19,552
Loans payable 102,500
Deferred revenue 838,393
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Total Current Liabilities 989,802
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LONG-TERM LIABILITIES
Deferred revenue 84,375
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TOTAL LIABILITIES 1,074,177
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STOCKHOLDERS' DEFICIENCY
Common stock, $0.001 par value, 50,000,000 shares authorized,
5,831,921 shares issued and outstanding 5,832
Additional paid-in capital 1,592,293
Other comprehensive loss (493,395)
Accumulated deficit (276,084)
Less: stock issued for future services (1,073,333)
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Total Stockholders Deficiency (244,687)
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TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY $ 829,490
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</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
INSIDERSTREET.COM, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
For the Three For the Six Months
Months Ended April Ended April 30,
30, 2000 2000
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<S> <C> <C>
REVENUE $ 279,595 $ 397,407
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COSTS AND OPERATING EXPENSES
Advertising -- 27,145
Professional and consulting fees 525,475 535,454
Payroll expense 31,312 54,313
Selling, general and administrative 33,629 56,579
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Total Operating Expenses 590,416 673,491
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LOSS FROM OPERATIONS (310,821) (276,084)
PROVISION FOR INCOME TAXES -- --
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NET LOSS $ (310,821) $ (276,084)
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OTHER COMPREHENSIVE LOSS
Unrealized loss on available-for-sale securities (493,395) (493,395)
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COMPREHENSIVE LOSS $ (804,216) $ (769,479)
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Net loss per share - basic and diluted $ (0.05) $ (0.05)
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Weighted average number of shares outstanding - basic and diluted 5,653,088 5,614,586
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</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
INSIDERSTREET.COM, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOW
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
For the Six Months
Ended April 30, 2000
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<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(276,084)
Adjustments to reconcile net loss to net cash used in operating activities:
Deferred revenue realized (369,407)
Depreciation 1,220
Stock issued to consultants for services 514,792
Changes in assets and liabilities:
Accounts receivable (9,000)
Other receivable (500)
Accounts payable 29,357
Accrued expense 19,552
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Net Cash Used In Operating Activities (90,070)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Deposits (6,115)
Purchase of property and equipment (12,475)
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Net cash used in investing activities (18,590)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from loans payable 102,500
Proceeds from issuance of common stock 10,000
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Net cash provided by financing activities 112,500
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INCREASE IN CASH AND CASH EQUIVALENTS 3,840
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD --
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CASH AND CASH EQUIVALENTS - END OF PERIOD $ 3,840
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</TABLE>
SUPPLEMENTAL CASH FLOW INFORMATION:
Non Cash Investing Activities
The company acquired $1,292,175 of marketable securities in exchange for
marketing services that were recorded as deferred revenue which is being
recognized on a pro rata basis over the life of the related contracts.
See accompanying notes to consolidated financial statements.
4
<PAGE>
INSIDERSTREET.COM, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AS OF APRIL 30, 2000
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NOTE 1 BASIS OF PRESENTATION
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The accompanying unaudited interim consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles and the rules and regulations
of the Securities and Exchange Commission for interim
financial information. Accordingly, they do not include all
the information and footnotes necessary for a comprehensive
presentation of financial position and results of operations.
It is management's opinion, however, that all adjustments
(consisting of normal recurring adjustments) have been made
which are necessary for a fair financial statements
presentation. The results for the interim period are not
necessarily indicative of the results to be expected for the
year.
Insiderstreet.com FL was acquired by Insiderstreet.com Inc.,a
Nevada corporation, F/K/A Sierra Holdings Group, Inc. (an
inactive public shell) in a transaction accounted for as a
recapitalization of Insiderstreet.com FL. Insiderstreet.com FL
began business in November 1999 and had no prior period of
operations.
For further information, refer to the financial statements and
footnotes included in the Company's Form 10-KSB filed on
December 15, 1999.
NOTE 2 LOANS
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During the three months ended April 30, 2000, the Company
received a loan, from a stockholder. The loan of $58,000 is
non-interest bearing and due on demand.
NOTE 3 STOCKHOLDERS' EQUITY
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(A) Issuance of Common Stock for Services
During the three months ended April 30, 2000, 255,000 common
shares were issued for services to consultants. The shares
were valued at $1,588,125 the quoted trading prices on the
agreement dates.
NOTE 4 SUBSEQUENT EVENTS
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On May 5, 2000, the Company issued 575,594 common shares for
future services to be preformed by consultants. The shares
were valued at $4.63 per share, the quoted trading price on
the agreement date, which aggregated $2,665,000.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
General
We are an Internet marketing company and financial content provider established
to provide proactive professional marketing services to both micro and small cap
public companies. ("Clients") that are seeking to gain exposure among potential
investors , analysts and others within the investment community. We allow
subscribers to read information about a variety of Clients, create technical
charts, track stock portfolios and read feature stories from financial analysts.
In addition, we offer e-mail marketing, banner advertising services and other
investor relations tools. Access to our web site is free. We generate revenues
from fee-based services offered for cash and/or common stock of our Clients.
When we receive Common Stock of a Client for services, such payment is typically
in addition to (not in lieu of) cash payment for services. Our client list is
comprised primarily of Clients lacking the resources to perform the marketing
functions necessary to promote their profiles to the investment community.
Results of Operations
Revenues for the Three and Six Months Ended April 30, 2000
Revenues for the three and six month period ended April 30, 2000 were $279,595
and $397,407 while expenses totaled $590,416 and $673,491 respectively. We
incurred a loss from operations of $310,821 for the three month period ended
April 30, 2000 as compared to net loss of $276,084 for the six months ended
April 30, 2000. A significant portion of this loss is a non-cash expense
attributable to the issuance of our common stock for consulting and professional
fees. We recorded a comprehensive loss from the unrealized loss on available for
sale securities of $493,395 which resulted in a comprehensive loss of $804,216
and $769,479 respectively.
Liquidity and Capital Resources
As of April 30, 2000 we have limited cash of only $3,840, accounts receivable of
$9,000 and total current assets of $13,340. We have property, plant and
equipment (net of depreciation) of $11,255 and various deposits totaling $6,115.
Our largest asset consists of $798,780 in investment securities which consist of
equity securities received from client companies. Our total assets equal
$829,490.
Our current liabilities total $989,802 which consist primarily of loans payable
in the amount of $102,500 and deferred revenues of $838,393. The deferred
revenues represents payments received from client companies for investor
relation contracts services to be rendered in the future.
6
<PAGE>
Part 11 Other Information
Item 1. Legal Proceedings
An action has recently been filed against us by Mark Sansom in the
Third Judicial District for Salt Lake City Utah (Case No. 000904440) in which we
are named with several other Defendants. The suit involves shares in our company
which were to be issued to the Plaintiff in connection with a reverse
acquisition of InsiderStreet (a privately held Florida company) into Sierra
Holdings. The suit seeks unspecified damages against the company in connection
with the company's refusal to transfer up to 1,000,000 shares of common stock
allegedly due Sansom. In a related case involving the same transaction, we filed
suit against Mark Sansom and Steven Moulton in the United States District Court
of Florida (Case No. 8:00 CV 1114-T-ITC) seeking in excess of $75,000 and a
declaration that we may withhold authorization to transfer the Defendant's
common stock.
Item 2. Change in Securities
(c) On March 10, 2000, the company issued 50,000 shares of its restricted common
stock to Evan Harrick in consideration for consulting services. We relied on the
exemption provided by Section 4(2) of the Securities Act.
On April 12, 2000, 200,000 shares of common stock were issued to
Michael Muzio pursuant to a consulting plan and registered on Form S-8.
On April 12, 2000, 5, 000 shares were issued to Jeffrey Klein pursuant
to a consulting Service Plan and Registered on Form S-8.
On May 5, 2000, 575,594 shares of restricted common stock were issued
to Theater Radio Network Inc. We relied on the exemption provided by Section
4(2) of the Securities Act.
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of
Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-k
(a) Exhibits.
27 Financial Data Schedule
(b) Reports on Form 8-K
None
7
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
InsiderStreet.com Inc.
/s/Raymond Miller
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BY: Raymond Miller, president
Dated: This 19th day of June 2000
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