--------------------------------------------------------------------------------
Kirt W. James
PRESIDENT
Oasis Entertainments 4th Movie Project Inc.
24843 Del Prado, #318
Dana Point, CA 92629
(Name and Address of Person Authorized to Receive Notices
and Communications on Behalf of the Person Filing Statement)
--------------------------------------------------------------------------------
WITH A COPY TO:
KARL E. RODRIGUEZ, ESQ
34700 Pacific Coast Highway, #303
Capistrano Beach, CA 92624
(949) 248-9561
fax (949) 248-1688
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FORM 10-Q SB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF
1934
For the Quarter ended June 30, 2000
Commission File Number: 24-3948
Oasis Entertainment's Fourth Movie Project, Inc.
(Exact name of Registrant as specified in its charter)
Nevada 76-0528600
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
24843 Del Prado, Suite 326 Dana Point, California 92629
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (949) 488-0736
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: 14,810,000
Yes [x] No [] (Indicate by check mark whether the Registrant (1) has filed
all report 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.)
As of June 30, 2000, the number of shares outstanding of the Registrant's Common
Stock was 14,810,000.
1
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Attached hereto and incorporated herein by this reference are consolidated
unaudited financial statements for the three months and nine months ended June
30, 2000.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
2
<PAGE>
RESULTS OF OPERATIONS. A comparison of the corresponding three months/nine
months of 1999 and 2000 respectively reflect only modest expenses more recently
than in the former periods. The difference is due to the fact that the former
period involved considerable movie production expenses, while the current period
does not. Our operations in the current periods have principally involved legal,
professional and audit expenses.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
April 1 to June 30 September 30 to June 30
2000 1999 2000 1999
------------------------------------------------------------------------------------------------------------------
Revenues:. . . . . . . . . . . . . . $ 0.00 $ 0.00 $ 0.00 $ 0.00
Subtotal Revenues . . . . . . . . . 0 0 0 0
---------------------------------------------------------------------------
Expenses:
General and administrative . . . . . (1,008) (52,573) (26,860) (142,113)
Subtotal Expenses . . . . . . . . . (1,008) (52,573) (26,860) (142,113)
Other Income (Expense)
Interest Expense
Interest Income. . . . . . . . . . . 0 0 0 1,300
Subtotal Other. . . . . . . . . . . 0 0 0 1,300
---------------------------------------------------------------------------
Net Loss . . . . . . . . . . . . . . (1,008) (52,573) (26,860) (140,813)
---------------------------------------------------------------------------
Net Loss per Share . . . . . . . . . (0.0007) (0.00442) (0.00181) (0.01660)
---------------------------------------------------------------------------
Weighted Average Shares Outstanding. 14,810,000 11,885,565 14,810,000 11,895,546
===========================================================================
</TABLE>
3
<PAGE>
We are engaged in continuing efforts to market our production of "the Blood
Game".
LIQUIDITY AND CAPITAL RESOURCES. We presently have no significant liquidity and
may need to seek additional equity or debt funding to pursue opportunities
beyond those now contemplated. This contingency will depend largely upon such
profitability as may result from current projects.
On March 24, 1999, we made an investment in an infomercial project with
Reliant Interactive Media Corporation, a shareholder of our corporation. We may
become entitled to royalties from this investment. Such projects can be
extremely profitable, but they can also fail. There can be no assurance that any
profitability will result from this investment.
As of June 30, 2000, we had a total of $148,996 in notes payable to related
parties. All of these notes are unsecured, non-interest bearing and have no
specific payback terms. A 10% interest rate has been imputed and recorded as a
capital contribution.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
4
<PAGE>
ITEM 2. CHANGE IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None
EXHIBIT INDEX
5
<PAGE>
FINANCIAL STATEMENTS AND DOCUMENTS
FURNISHED AS A PART OF THIS REGISTRATION STATEMENT
Exhibit 00-QF3 Financial Statements (Un-Audited) for the three months and
nine months ended June 30, 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-Q Report for the Quarter ended June 30, 2000, has been signed below by
the following person on behalf of the Registrant and in the capacity and on the
date indicated.
August 2, 2000
OASIS ENTERTAINMENT'S FOURTH MOVIE PROJECT, INC.
a Nevada Corporation
by
/s/Kirt W. James /s/J. Dan Sifford /s/Karl E. Rodriguez
Kirt W. James J. Dan Sifford Karl E. Rodriguez
President/Director Secretary-Treasurer General Counsel
/Director /Director
6
<PAGE>
--------------------------------------------------------------------------------
EXHIBIT 00-QF3
UN-AUDITED FINANCIAL STATEMENTS
FOR THREE MONTHS AND NINE MONTHS ENDED JUNE 30, 2000
--------------------------------------------------------------------------------
7
<PAGE>
OASIS ENTERTAINMENT'S FOURTH MOVIE PROJECT, INC.
BALANCE SHEET
For the fiscal year ended September 30, 1999
And the nine months ended June 30, 2000
<TABLE>
<CAPTION>
<S> <C> <C>
June 30, September 30,
2000 1999
(Unaudited)
----------------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . $ 495 $ 3,151
--------- --------------
TOTAL CURRENT ASSETS . . . . . . . . . . . . . . . . . . 495 3,151
========= ==============
OTHER ASSETS
Investments. . . . . . . . . . . . . . . . . . . . . . . 255,000 255,000
TOTAL OTHER ASSETS . . . . . . . . . . . . . . . . . . . 255,000 255,000
--------- --------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . $ 255,495 $ 258,151
========= ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . . . $ 2,644 $ 2,644
Notes payable - related parties. . . . . . . . . . . . . 148,996 125,800
--------- --------------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . 151,640 128,444
========= ==============
STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; authorized 100,000,000
shares; issued and outstanding, 11,500,000 shares,
14,810,000 shares and 14,810,000 shares respectively. 14,810 14,810
Additional Paid-In Capital . . . . . . . . . . . . . . . 470,818 470,818
Notes receivable - related parties . . . . . . . . . . . (161,782) (161,782)
Accumulated Equity (Deficit) . . . . . . . . . . . . . . (219,991) (194,139)
--------- ---------------
Total Stockholders' Equity . . . . . . . . . . . . . . . 103,855 129,707
========= ===============
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY . . . . . . . . $ 255,495 $ 258,151
========= ===============
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
OASIS ENTERTAINMENT'S FOURTH MOVIE PROJECT, INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
June 30, 1999 and 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
From
Inception on
From April From April From September From September April 9,
1, 2000 to 1, 1999 to 30, 1999 to 30, 1998 to 1998 through
June 30, June 30, June 30, June 30, June 30,
2000 1999 2000 1999 2000
--------------------------------------------------------------------------------------------------------------
Revenues. . . . . . . . . . $ 0 $ 0 $ 0 $ 0 $ 0
------------- ------------ --------------- --------------- -----------
General and administrative. 1,008 52,573 26,860 142,113 241,256
Net Income (Loss) . . . . . (1,008) (52,573) (26,860) (142,113) (241,256)
------------- ------------ --------------- --------------- -----------
Other income (expense)
Interest expense. . . . . . 0 0 0 0 (4,628)
Interest income . . . . . . 0 0 0 1,300 26,185
Net (Loss). . . . . . . . . (1,008) (52,573) (26,860) (140,813) (219,699)
Loss per Share. . . . . . . $ (0.00007) $ (0.00442) $ (0.00181) $ (0.01193) $ (0.01660)
------------- ------------ --------------- --------------- -----------
Weighted Average
Shares Outstanding. . . 14,810,000 11,885,565 14,810,000 11,805,546 13,232,617
============= ============ =============== =============== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
OASIS ENTERTAINMENT'S FOURTH MOVIE PROJECT, INC.
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)(UNAUDITED)
For the period from inception of the Development Stage
On April 9, 1998, through September 30, 1998, for September 30, 1999
And the nine months ended June 30, 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Additional Accumulated Total Stock-
Common Par Paid-In Equity holders' Equity
Stock Value Capital (Deficit) (Deficit)
-----------------------------------------------------------------------------------------------------------------------
Common Stock issued at inception . . . . . 10,000,000 $ 10,000 ($10,000) $ 0 $ 0
Common Stock issued for
cash at $0.10 per share. . . . . . . . 1,500,000 1,500 148,500 0 0
Net loss during period . . . . . . . . . . 0 0 0 0 0
-------------------------------------------------------------------------
Balances at September 30, 1998 . . . . . . 11,500,000 $ 11,500 $ 138,500 $ 0 $ 150,000
Common Stock issued for
cash at $0.10 per share. . . . . . . . 3,310,000 3,310 327,690 0 0
Accrued interest on notes to related
parties recorded as contributed capital 0 0 4,628 0 0
Net Loss for the period. . . . . . . . . . 0 0 0 (194,139) 0
------------------------------------------------------------------------
Balances at September 30, 1999 . . . . . . 14,810,000 $ 14,810 $ 470,818 ($194,139) $ 291,489
---------- ------------ -------------- ----------- -----------------
Net Loss for the period. . . . . . . . . . 0 0 0 (26,860) 0
Balances at June 30, 2000. . . . . . . . . 14,810,000 $ 14,810 $ 470,818 ($220,999) $ 264,629
---------- ------------ -------------- ----------- -----------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
OASIS ENTERTAINMENT'S FOURTH MOVIE PROJECT, INC.
STATEMENTS OF CASH FLOW (UNAUDITED)
For the fiscal years ended September 30, 1998 and 1999
And the nine months ended June 30, 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C>
From inception on
For the nine April 9,1998
months ended through
June 30, June 30,
2000 1999 2000
--------------------------------------------------------------------------------------------------------------
Operating Activities
Net Income (Loss) . . . . . . . . . . . . . . . . . . . . ($26,860) ($142,113) ($220,999)
(Increase) in interest receivable . . . . . . . . . . . . 0 0 (15,482)
Increase in accounts payable. . . . . . . . . . . . . . . 0 25,000 3,644
Net Cash from Operations. . . . . . . . . . . . . . . . . (26,860) (117,113) (232,837)
--------- --------- ---------
Cash flows from investing activities
Cash paid for investments . . . . . . . . . . . . . . . . 0 (125,000) (255,000)
Net cash (used) by investing activities . . . . . . . . . 0 (125,000) (255,000)
-------- --------- ---------
Cash flows from financing activities
Proceeds paid on notes receivable - related parties . . . 0 0 (246,300)
Principal received on notes receivable - related parties. 0 221,000 100,000
Proceeds received on notes payable - related parties. . . 24,204 25,000 150,004
Common stock issued for cash. . . . . . . . . . . . . . . 0 0 481,000
Contributed capital . . . . . . . . . . . . . . . . . . . 0 0 4,628
Net cash provided by financing activities . . . . . . . . 24,204 246,000 489,332
Net increase (decrease) in Cash . . . . . . . . . . . . . (2,656) 3,887 490
Cash at beginning of period . . . . . . . . . . . . . . . 3,151 0 0
-------- ------------- ----------
Cash as of Statement Date . . . . . . . . . . . . . . . . $ 495 $ 3,887 $ 490
================== ============= ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
OASIS ENTERTAINMENT'S FOURTH MOVIE PROJECT, INC.
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2000
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Organization
Oasis Entertainment's Fourth Movie Project, Inc. (the Company) was incorporated
on April 9, 1998 under the laws of the State of Nevada, primarily for the
purpose of producing film and video for theatrical, cable and televised
releases.
The Company has limited operations, assets and liabilities. Accordingly, the
Company is dependent upon management and/or significant shareholders to provide
sufficient working capital to preserve the integrity of the corporate entity
during this phase. It is the intent of management and significant shareholders
to provide sufficient working capital necessary to support and preserve the
integrity of the corporate entity.
b. Accounting Method
The Company's financial statements are prepared using the accrual method of
accounting. The Company has elected a September 30 year end.
c. Cash and Cash Equivalents
Cash equivalents include short-term, highly liquid investments with maturities
of three months or less at the time of acquisition.
d. Basic Loss Per Share
The computation of basic loss per share of common stock is based on the weighted
average number of shares outstanding during the period of financial statements.
e. Provision for Taxes
At June 30, 2000, the Company had net operating loss carryforwards of
approximately $220,000 that may be offset against future taxable income through
2014. No tax benefit has been reported in the financial statements, because the
Company believes there is a 50% or greater chance the carryforwards will expire
unused. Accordingly, the potential tax benefits of the loss carryforwards are
offset by a valuation amount of the same amount.
f. Additional Accounting Policies
Additional accounting policies will be established once planned principal
operations commence.
12
<PAGE>
OASIS ENTERTAINMENT'S FOURTH MOVIE PROJECT, INC.
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2000
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
g. Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 2 - GOING- CONCERN
The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. However, the Company does not have significant cash or other material
assets, nor does it have an established source of revenues sufficient to cover
its operating costs and to allow it to continue as a going concern. It is the
intent of the Company to produce and earn revenues from the sale of 'B genre'
movies. Until this occurs, shareholders of the Company have committed to
meeting the Company's operating expenses.
NOTE 3 - ROYALTY AGREEMENT - RELATED PARTY
On March 24, 1999, the Company entered into an agreement with Reliant
Interactive Media Corporation ("Reliant"), a shareholder of the Company, under
which the Company committed to provide funding for three "infomercials' Reliant
was to produce. Under the terms of this agreement, the Company provided a total
of $250,000 for this purpose. As consideration for this funding, Reliant was to
issue 250,000 restricted, post-split shares of its common stock to the Company
(see Note 4). Also, Reliant agreed to pay the Company a royalty equal to two
percent of the adjusted gross revenues created by the infomercials until the
Company had received $625,000. The royalty would be reduced to one percent of
the revenues thereafter.
As of June 30, 2000, Reliant had produced only two of the three infomercials.
Both were unprofitable, and produced no royalties for the Company. The third
infomercial is expected to be produced in mid 2000.
13
<PAGE>
OASIS ENTERTAINMENT'S FOURTH MOVIE PROJECT, INC.
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2000
NOTE 4 - INVESTMENT
On March 24, 1999, the Company entered into an agreement with Reliant
Interactive Media Corporation ("Reliant") under which the Company provided
funding of $250,000 to Reliant (see Note 3). As consideration for this funding,
Reliant contracted to issue 250,000 restricted, post-split shares of its common
stock to the Company upon completion of the funding. The investment has been
recorded at its cost of $250,000.
On May 25, 1999, the Company entered into another agreement with Reliant under
which the Company loaned $200,000 to Reliant. As part of the consideration for
this loan, Reliant agreed to issue 5,000 shares of its restricted common stock
to the Company. The investment has been recorded at a cost of $1.00 per share,
based on the determination of the previous agreement.
NOTE 5 - NOTES RECEIVABLE - RELATED PARTIES
As of June 30, 2000, the Company had a total of $161,782 in notes receivable
from related parties. All of the notes are unsecured. Three of the four notes
(totaling $46,300) are non-interest bearing and have no specific payback terms.
The fourth note, totaling $115,482 is receivable from Reliant Interactive Media
Corp (see Note 3) and bears a ten percent (10%) interest rate.
NOTE 6 - NOTES PAYABLE - RELATED PARTIES
As of June 30, 2000, the Company had a total of $148,996 in notes payable to
related parties. All of the notes are non-interest bearing, and have no
specific payback terms. All the notes are unsecured. A 10% interest rate has
been imputed for these loans, which has been recorded as contributed capital in
the financial statements.
14
<PAGE>
