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
OR
[ ] 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: 000-28177
EVERLERT, INC.
(Exact name of registrant as specified in its charter)
Nevada 91-1886117
(State or jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
1201 East Warner Avenue, Santa Ana, California 92705
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (714) 966-0710
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.001 Par Value
Indicate by check mark whether the Registrant (1) has filed all
reports 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) been subject to such filing
requirements for the past 90 days. Yes X No .
As of September 30, 2000, the Registrant had 19,672,477
shares of common stock issued and outstanding.
Transitional Small Business Disclosure Format (check one): Yes No X.
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION PAGE
ITEM 1. FINANCIAL STATEMENTS
BALANCE SHEET AS OF SEPTEMBER 30, 2000 3
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
AND NINE MONTHS ENDED
SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999 4
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JUNE 30, 2000 ENDED
SEPTEMBER 30, 1999 5
NOTES TO FINANCIAL STATEMENTS 7
ITEM 2. PLAN OF OPERATION 8
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 15
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS 15
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 15
ITEM 4. SUBMISSION OF MATTERS TO A VOTE
OF SECURITY HOLDERS 15
ITEM 5. OTHER INFORMATION 15
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 15
SIGNATURE 16
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCAL STATEMENTS.
EVERLERT, INC.
(A development stage company)
BALANCE SHEET
SEPTEMBER 30, 2000
(Unaudited)
ASSETS
Current assets
Cash $ 4,554
Total current assets 4,554
Other assets
Acquired technology, net 4,200,000
Deposits 53,500
4,253,500
Total assets 4,258,054
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable 29,044
Accrued liabilities 52,949
Due to related party 6,700
Subscriptions payable 5,000
Notes payable - related parties 246,929
Note payable 169,600
Total current liabilities 510,222
Total liabilities 510,222
Commitments and contingencies -
Stockholders' equity
8% cumulative preferred stock; $.001
par value;
5,000,000 shares authorized, 14,333 shares
issued and outstanding 14
Common stock; $.001 par value;
50,000,000 shares authorized, 19,672,477
shares issued and outstanding 19,672
Additional paid-in capital 7,313,920
Stock subscriptions receivable (917,625)
Accumulated deficit (2,668,149)
Total stockholders' equity 3,747,832
Total liabilities and stockholders' equity 4,258,054
See Accompanying Notes to Financial Statements
EVERLERT, INC.
(A development stage company)
STATEMENTS OF OPERATIONS
(Unaudited)
Period from
February 3
For the three For the nine 1998
months ended months ended (Date of
Sept 30 Sept 30 Inception)
through
Sept 30
2000 1999 2000 1999 2000
Revenue - - - - -
Operating expenses
Amortization 300,000 300,000 900,000 600,000 1,800,000
Research and
development 68,260 - 68,260 733 136,643
General and
Administrative 53,824 66,653 75,233 153,154 674,424
Total operating
expenses 422,084 366,653 1,043,493 753,887 2,611,067
Net loss from
operations (422,084) (366,653) (1,043,493) (753,887) (2,611,067)
Other expense
Interest expense 10,040 10,848 27,204 19,430 57,082
10,040 10,848 27,204 19,430 57,082
Net loss before
provision for
income taxes (432,124) (377,501) (1,070,697) (773,317) (2,668,149)
Provision for
income taxes - - - - -
Net loss (432,124) (377,501) (1,070,697) (773,317) (2,668,149)
Basic and diluted
loss per
common share (0.02) (0.05) (0.06) (0.15) (0.27)
Basic and diluted
weighted average
common shares
outstanding 19,620,955 7,698,217 19,278,116 5,132,920 9,793,500
See Accompanying Notes to Financial Statements
EVERLERT, INC.
(A development stage company)
STATEMENTS OF CASH FLOWS
(Unaudited)
Period from
February 3
1998
For the nine months ended (Date of
Sept 30 inception)
through
Sept 30
2000 1999 2000
Cash flows from operating
activities:
Net loss (1,070,697) (773,317) (2,668,149)
Adjustments to reconcile
net loss to net cash
used by operating activities:
Amortization 900,000 600,000 1,800,000
Interest and financing costs
Satisfied through the
transfer of common stock - 23,375 23,375
Common stock issued for
expenses 36,000 25,800 123,900
Changes in operating
assets and liabilities:
Increase in deposits - (50,000) (53,500)
Increase (decrease) in
accounts payable 8,251 (315,969) 29,044
Increase in accrued
liabilities 27,203 15,297 52,949
Increase in due to
related party 6,700 - 6,700
Net cash used by operating
activities (92,543) (474,814) (685,681)
Cash flows from
financing activities:
Proceeds from issuance of
notes payable - related
parties 68,260 173,669 246,929
Proceeds from issuance
of note payable - 169,600 205,600
Proceeds from issuance
of preferred stock 10,000 33,001 43,001
Proceeds from issuance
of common stock - 125 111,932
Proceeds from issuance
of stock
subscriptions payable 5,000 123,780 82,773
Net cash provided by
financing activities 83,260 500,175 690,235
Net increase (decrease)
in cash (9,283) 25,361 4,554
Cash, beginning of period 13,837 733 -
Cash, end of period 4,554 26,094 4,554
Supplemental disclosure of
cash flow:
Cash paid for interest - - -
Schedule of non-cash
investing and
financing activities:
40,000 common shares issued
for payment of debt - - 2,000
300,000 common shares
issued in exchange
for stock subscriptions
receivable - 450,000 450,000
Debt satisfied through
transfer of common stock - 34,000 34,000
12,000,000 common shares
issued in exchange for
acquired technology - 6,000,000 6,000,000
Subscriptions payable
satisfied though issuance
of 759,485 common shares - - 106,007
Subscriptions payable
satisfied through
issuance of
359,992 common shares 77,773 - 77,773
300,000 common shares
issued in exchange
for stock subscriptions
receivable 525,000 - 525,000
See Accompanying Notes to Financial Statements
EVERLERT, INC.
(A development stage company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying financial statements have been prepared in
accordance with Securities and Exchange Commission requirements
for interim financial statements. Therefore, they do not include
all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
The financial statements should be read in conjunction with the
Form 10-KSB for the year ended December 31, 1999 of Everlert,
Inc. ("the Company").
The results of operations for the interim periods shown in this
report are not necessarily indicative of results to be expected
for the full year. In the opinion of management, the information
contained herein reflects all adjustments necessary to make the
results of operations for the interim periods a fair statement of
such operation. All such adjustments are of a normal recurring
nature.
2. NOTES PAYABLE - RELATED PARTIES
Notes payable - related parties consist of the following at
September 30, 2000:
Promissory note payable to Wyvern Technologies, Inc.
(an entity controlled by the president of the Company),
unsecured, bearing an interest rate of 10% and due on
demand. Holder has option to convert unpaid balances,
including accrued interest, into shares of the Company's
common stock at a price of $1.00 per share $ 173,669
Promissory note payable to a director of the Company,
unsecured, bearing an interest rate of 10% and due on
demand. Holder has option to convert unpaid balances,
including accrued interest, into shares of the Company's
common stock at a price of $1.00 per share 68,260
Promissory note payable to a stockholder of the Company,
unsecured, non-interest bearing and due on demand 5,000
$ 246,929
3. GOING CONCERN
The Company incurred a net loss of approximately $1,070,000 for
the nine months ended September 30, 2000, and the Company's
current liabilities exceed its current assets by approximately
$550,000 as of September 30, 2000. The Company plans to complete
the development of its voice record and playback smoke detector,
along with the heat sensor Christmas tree ornaments. The Company
will seek additional sources of capital through the issuance of
debt or equity financing, but there can be no assurance the
Company will be successful in accomplishing its objectives.
The ability of the Company to continue as a going concern is
dependent on additional sources of capital and the success of the
Company's plan. The financial statements do not include any
adjustments that might be necessary if the Company is unable to
continue as a going concern.
ITEM 2. PLAN OF OPERATION.
Twelve Month Plan of Operation.
The operational period from February 3, 1998 to December 31,
1999, achieved two main goals for the Corporation: (a) formation
of the organization to pursue the Company's business objective,
and (b) obtain sufficient capital to commence initial operations.
The Company is a developmental stage enterprise, and has not
generated any revenues to date. The Company has devoted
substantially all of its present efforts to developing its
products to be manufactured and marketed and completing its
reporting requirements with the Securities Act of 1934 and its
commencement of trading on the Over-the-Counter Bulletin Board
(the Company was delisted from this exchange as of November 18,
1999). In order to qualify for relisting on the Bulletin Board,
the Company must comply with the new eligibility rules of this
exchange, which require that all listed companies be reporting
companies. Accordingly the Company filed its Form 10-SB
Registration Statement with the Securities and Exchange
Commission on November 18, 1999; the Company must clear comments
on this Registration Statement to be eligible for relisting.
Realization of sales of the Company's products during the
fiscal year ending December 31, 2001 is vital to its plan of
operations. The Company believes that its initial revenues will
be primarily dependent upon its ability to cost-effectively and
efficiently develop and market smoke and heat detectors. The
Company designates as its priorities for the next twelve months
of operations as developing and marketing its products to
establish its operations by: (a) implementing and successfully
executing its business and marketing strategy, including
developing and marketing its products to establish its business
in the home safety industry; (b) developing relationships with
strategic partners; (c) responding to competitive developments;
and (d) attracting, retaining and motivating qualified personnel.
Management of the Company believes that the need for additional
capital going forward will be derived somewhat from earnings
generated from the sale of its products. In such case, it is the
intent of the Company to raise additional capital via a private
placement offering. The Company currently has a stock
subscription at September 30, 2000 for common stock in the
approximate amount of $918,000. The Company believes that
realization of this capital will sustain it for at least twelve
months of operations. In the meantime, management of the Company
plans to advance funds to the Company on an as-needed basis
although there is no definitive or legally binding arrangement to
do so. The Company currently has no arrangements or commitments
for accounts and accounts receivable financing. There can be no
assurance that any such financing can be obtained or, if
obtained that it will be on reasonable terms. The Company
believes that its initial revenues will be primarily dependent
upon the Company's ability to cost effectively and efficiently
develop, manufacture and market smoke detectors and related home
safety products.
The Company incurred significant expenses for the operating
period February 3, 1998 to September 30, 2000, totaling
$2,668,149. Expenditures were primarily due to costs incurred
for amortization expenses, consulting fees, engineering, and
general and administrative expenses. The Company's consulting
expenses were incurred from its public listing process on the
Over-the-Counter Bulletin Board. Due to the significant
operating expenses, the Company experienced a net loss of
$2,668,149 for this period. The Company anticipated incurring
this loss during the initial commencement of operations until
such time that it will realize revenues from operations in the
fiscal year 2000.
The Company's ability to distribute, and generate awareness of,
the Company's products must be considered in light of the risks,
expenses and difficulties frequently encountered by companies in
their early stage of development, particularly companies in new
markets. There can be no assurance that the Company will be
successful in establishing a base of operations, and the failure
to do so could have a material adverse effect on the Company's
business, prospects, financial condition and results of
operations.
Risk Factors Connected with Plan of Operation.
(a) Only Limited Prior Operations.
The Company has only limited operations and is subject to
all the risks inherent in the creation of a new business. Since
the Company's principal activities to date have been limited to
organizational activities and prospect development, it has no
record of any revenue-producing operations. Consequently, there
is only a limited operating history upon which to base an
assumption that the Company will be able to achieve its business
plans. In addition, the Company has only limited assets. As a
result, there can be no assurance that the Company will generate
significant revenues in the future; and there can be no assurance
that the Company will operate at a profitable level. If the
Company is unable to obtain customers and generate sufficient
revenues so that it can profitably operate, the Company's
business will not succeed.
(b) Need for Additional Financing May Affect Operations.
Current funds available to the Company will not be adequate for
it to be competitive in the areas in which it intends to operate.
Therefore, the Company will need to raise additional funds in
order to fully implement its business plan. However, there can
be no assurance that the Company will be successful in raising
such additional funds. Regardless of whether the Company's cash
assets prove to be inadequate to meet the Company's operational
needs, the Company might seek to compensate providers of
services by issuance of stock in lieu of cash.
Since inception, the Company has financed operations
primarily through private placements of common stock, and
certain borrowings. In addition to two promissory notes between
the Company and its directors (see "Certain Relationships and
Related Transactions"), the Company has also borrowed $169,599.60
from an unrelated party. This promissory is unsecured, payable
in one payment including principal and interest at maturity,
bearing an interest rate of 10%, and originally matured on March
22, 1999; this note has been extended by oral agreement of the
parties to March 22, 2001 (see Exhibit 10.1 to this Form 10-SB).
Additionally, the holder has the option to convert any unpaid
balances, including accrued interest, into shares of the
Company's common stock at a price of $1.00 per share.
The Company has significant ongoing liquidity needs to support
its existing business and continued growth. The Company's
continued operations therefore will depend upon its ability to
raise additional funds through bank borrowings, equity or debt
financing. Adequate funds may not be available when needed or
may not be available on favorable terms. If funding is
insufficient at any time in the future, the Company may not be
able to take advantage of business opportunities or respond to
competitive pressures, any of which could have a negative impact
on the business, operating results and financial condition. In
addition, if additional shares were issued to obtain financing,
current shareholders may suffer a dilutive effect on their
percentage of stock ownership in the Company.
(c) No Assurance of Protection of Proprietary Rights.
The Company's success and ability to compete will be dependent in
part on the protection of its potential patents, trademarks,
trade names, service marks and other proprietary rights. The
Company intends to rely on trade secret and copyright laws to
protect the intellectual property that it plans to develop, but
there can be no assurance that such laws will provide sufficient
protection to the Company, that others will not develop a service
that are similar or superior to the Company's, or that third
parties will not copy or otherwise obtain and use the Company's
proprietary information without authorization. In addition,
certain of the company's know-how and proprietary technology may
not be patentable.
The Company may rely on certain intellectual property licensed
from third parties, and may be required to license additional
products or services in the future, for use in the general
operations of its business plan. The Company currently has no
licenses for the use of any specific products. There can be no
assurance that these third party licenses will be available or
will continue to be available to the Company on acceptable terms
or at all. The inability to enter into and maintain any of
these licenses could have a material adverse effect on the
Company's business, financial condition or operating results.
(d) No Assurance of Meeting Underwriters Laboratories Standard.
The agency testing required for Company products is Underwriters
Laboratories ("UL"), which is a private testing organization.
The Company's products have not yet been submitted to UL for
testing pending final tooling of the products. Although Company
management believes that the Company's products meet applicable
UL Standard 217, there is a risk that they may not. This testing
is of importance since many state fire marshals recognize UL
testing and listing. The Company's products would not be
available to sale in any state which requires such certification;
although they would be in a number of foreign countries which do
not require such certification.
(e) No Assurance of Successful Manufacturing.
The company has no experience manufacturing commercial quantities
of products, but management has had experience in this area. The
company presently has no plans for developing an in-house
manufacturing capability. Accordingly, the company will be
dependent upon securing a contract manufacturer or other third
party to manufacture the circuit boards and plastic housing of
the detectors (the final assembly and testing will be done in-
house). There can be no assurance that the terms of any such
arrangement would be favorable enough to permit the products to
compete effectively in the marketplace.
(f) Dependence on Outsourced Manufacturing.
The risks of association with outsourced manufacturers are
related to aspects of these firms' operations, finances and
suppliers. The Company may suffer losses if the outside
manufacturer fails to perform its obligations to manufacture and
ship the product manufactured. These manufacturers' financial
affairs may also affect the Company's ability to obtain product
from these firms in a timely fashion should they fail to continue
to obtain sufficient financing during a period of incremental
growth. The company intends to maintains a strong relationship
with these manufacturers to ensure that any issues they may face
are dealt with in a timely manner.
(g) No Assurance of Market Acceptance.
There can be no assurance that any products successfully
developed by the company or its corporate collaborators, if
approved for marketing, will ever achieve market acceptance. The
company's products, if successfully developed, may compete with a
number of traditional products manufactured and marketed by major
e-commerce and technology companies, as well as new products
currently under development by such companies and others. The
degree of market acceptance of any products developed by the
company or its corporate collaborators will depend on a number of
factors, including the establishment and demonstration of the
efficacy of the product candidates, their potential advantage
over alternative methods and reimbursement policies of government
and third party payors. There can be no assurance that the
marketplace in general will accept and utilize any products that
may be developed by the company or its corporate collaborators.
(h) Substantial Competition.
The Company may experience substantial competition in its
efforts to locate and attract customers for its products. Many
competitors in the smoke detector industry have greater
experience, resources, and managerial capabilities than the
Company and may be in a better position than the Company to
obtain access to attract customers. There are a number of larger
companies which will directly compete with the Company. Such
competition could have a material adverse effect on the Company's
profitability or viability.
(i) Other External Factors May Affect Viability of Company.
The smoke detector industry in general is a speculative venture
necessarily involving some substantial risk. There is no
certainty that the expenditures to be made by the Company will
result in commercially profitable business. The marketability of
its products will be affected by numerous factors beyond the
control of the Company. These factors include market
fluctuations, and the general state of the economy (including the
rate of inflation, and local economic conditions), which can
affect peoples' spending. Factors which leave less money in the
hands of potential customers of the Company will likely have an
adverse effect on the Company. The exact effect of these factors
cannot be accurately predicted, but the combination of these
factors may result in the Company not receiving an adequate
return on invested capital.
(j) Control by Officers and Directors Over Affairs of the
Company.
The Company's officers and directors beneficially own
approximately 61% of the outstanding shares of the Company's
common stock. As a result, such persons, acting together, have
the ability to exercise significant influence over all matters
requiring stockholder approval. Accordingly, it could be
difficult for the investors hereunder to effectuate control over
the affairs of the Company. Therefore, it should be assumed that
the officers, directors, and principal common shareholders who
control these voting rights will be able, by virtue of their
stock holdings, to control the affairs and policies of the
Company.
(k) Success of Company Dependent on Management.
The Company's success is dependent upon the hiring and retention
of key personnel. None of the officers or directors has any
employment or non-competition agreement with the Company.
Therefore, there can be no assurance that these personnel will
remain employed by the Company. Should any of these individuals
cease to be affiliated with the Company for any reason before
qualified replacements could be found, there could be material
adverse effects on the Company's business and prospects.
In addition, all decisions with respect to the management of the
Company will be made exclusively by the officers and directors of
the Company. Investors will only have rights associated with
minority ownership interest rights to make decision which effect
the Company. The success of the Company, to a large extent, will
depend on the quality of the directors and officers of the
Company. Accordingly, no person should invest in the Shares
unless he is willing to entrust all aspects of the management of
the Company to the officers and directors.
(l) Conflicts of Interest May Affect Independence of Officers
and Directors.
The officers and directors have other interests to which they
devote time, either individually or through partnerships and
corporations in which they have an interest, hold an office, or
serve on boards of directors, and each will continue to do so
notwithstanding the fact that management time may be necessary to
the business of the Company. As a result, certain conflicts of
interest may exist between the Company and its officers and/or
directors which may not be susceptible to resolution.
In addition, conflicts of interest may arise in the area of
corporate opportunities which cannot be resolved through arm's
length negotiations. All of the potential conflicts of interest
will be resolved only through exercise by the directors of such
judgment as is consistent with their fiduciary duties to the
Company. It is the intention of management, so as to minimize
any potential conflicts of interest, to present first to the
Board of Directors to the Company, any proposed investments for
its evaluation.
(m) Limitations on Liability, and Indemnification, of Directors
and Officers May Result in Expenditures by the Company.
The Company's Articles of Incorporation include provisions
to eliminate, to the fullest extent permitted by the Nevada
Revised Statutes as in effect from time to time, the personal
liability of directors of the Company for monetary damages
arising from a breach of their fiduciary duties as directors.
The By-Laws of the Company include provisions to the effect that
the Company may, to the maximum extent permitted from time to
time under applicable law, indemnify any director, officer, or
employee to the extent that such indemnification and advancement
of expense is permitted under such law, as it may from time to
time be in effect. Any limitation on the liability of any
director, or indemnification of directors, officer, or employees,
could result in substantial expenditures being made by the
Company in covering any liability of such persons or in
indemnifying them.
(n) Absence of Cash Dividends.
The Board of Directors does not anticipate paying cash
dividends on the common stock for the foreseeable future and
intends to retain any future earnings to finance the growth of
the Company's business. Payment of dividends, if any, will
depend, among other factors, on earnings, capital requirements
and the general operating and financial conditions of the Company
as well as legal limitations on the payment of dividends out of
paid-in capital.
(o) No Cumulative Voting.
Holders of the shares of common stock of the Company are not
entitled to accumulate their votes for the election of directors
or otherwise. Accordingly, the holders of a majority of the
shares present at a meeting of shareholders will be able to elect
all of the directors of the Company, and the minority
shareholders will not be able to elect a representative to the
Company's board of directors.
(p) No Assurance of Continued Public Trading Market; Risk of Low
Priced Securities.
Since August 25, 1998, there has been only a limited public
market for the common stock of the Company. The common stock of
the Company is currently quoted on the National Quotation
Bureau's Pink Sheets; the Company intends to reapply for
relisting on the Over the Counter Bulletin Board after clearing
comments on this registration statement. As a result, an
investor may find it difficult to dispose of, or to obtain
accurate quotations as to the market value of the Company's
securities. In addition, the common stock is subject to the low-
priced security or so called "penny stock" rules that impose
additional sales practice requirements on broker-dealers who sell
such securities. The Securities Enforcement and Penny Stock
Reform Act of 1990 ("Reform Act") requires additional disclosure
in connection with any trades involving a stock defined as a
penny stock (generally, according to recent regulations adopted
by the U.S. Securities and Exchange Commission, any equity
security that has a market price of less than $5.00 per share,
subject to certain exceptions), including the delivery, prior to
any penny stock transaction, of a disclosure schedule explaining
the penny stock market and the risks associated therewith. The
regulations governing low-priced or penny stocks sometimes limit
the ability of broker-dealers to sell the Company's common stock
and thus, ultimately, the ability of the investors to sell their
securities in the secondary market.
(q) Effects of Failure to Maintain Market Makers.
If the Company is unable to maintain a National Association
of Securities Dealers, Inc. member broker/dealers as market
makers, the liquidity of the common stock could be impaired, not
only in the number of shares of common stock which could be
bought and sold, but also through possible delays in the timing
of transactions, and lower prices for the common stock than might
otherwise prevail. Furthermore, the lack of market makers could
result in persons being unable to buy or sell shares of the
common stock on any secondary market. There can be no assurance
the Company will be able to maintain such market makers.
(r) Uncertainty Due to Year 2000 Problem.
The Year 2000 issue arises because many computerized systems
use two digits rather than four to identify a year. Date
sensitive systems may recognize the year 2000 as 1900 or some
other date, resulting in errors when information using the year
2000 date is processed. In addition, similar problems may arise
in some systems which use certain dates in 1999 to represent
something other than a date. The effects of the Year 2000 issue
may be experienced after January 1, 2000, and if not addressed,
the impact on operations and financial reporting may range from
minor errors to significant system failure which could affect the
Company's ability to conduct normal business operations. This
creates potential risk for all companies, even if their own
computer systems are Year 2000 compliant. It is not possible to
be certain that all aspects of the Year 2000 issue affecting the
Company, including those related to the efforts of customers,
suppliers, or other third parties, will be fully resolved.
The Company currently believes that its systems are Year 2000
compliant in all material respects. Although management is not
aware of any material operational issues or costs associated with
preparing its internal systems for the Year 2000, the Company may
experience serious unanticipated negative consequences (such as
significant downtime for one or more of its suppliers) or
material costs caused by undetected errors or defects in the
technology used in its internal systems. Furthermore, the
purchasing patterns of consumers may be affected by Year 2000
issues. The Company does not currently have any information
about the Year 2000 status of its potential material suppliers.
The Company's Year 2000 plans are based on management's best
estimates.
Forward Looking Statements.
The foregoing Plan of Operation contains "forward looking
statements" within the meaning of Rule 175 of the Securities Act
of 1933, as amended, and Rule 3b-6 of the Securities Act of 1934,
as amended, including statements regarding, among other items,
the Company's business strategies, continued growth in the
Company's markets, projections, and anticipated trends in the
Company's business and the industry in which it operates. The
words "believe," "expect," "anticipate," "intends," "forecast,"
"project," and similar expressions identify forward-looking
statements. These forward-looking statements are based largely
on the Company's expectations and are subject to a number of
risks and uncertainties, certain of which are beyond the
Company's control. The Company cautions that these statements
are further qualified by important factors that could cause
actual results to differ materially from those in the forward
looking statements, including, among others, the following:
reduced or lack of increase in demand for the Company's products,
competitive pricing pressures, changes in the market price of
ingredients used in the Company's products and the level of
expenses incurred in the Company's operations. In light of these
risks and uncertainties, there can be no assurance that the
forward-looking information contained herein will in fact
transpire or prove to be accurate. The Company disclaims any
intent or obligation to update "forward looking statements."
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
The Registrant is not a party to any material pending legal
proceedings and, to the best of its knowledge, no such action by
or against the Registrant has been threatened.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
In September 2000, the Company issued a total of 120,000
restricted shares of common stock for legal services to be
provided to the Company, which have been valued at $30,000. None
of the shares issued for services to the Company were issued to
affiliates of the Company. No commissions or fees were paid in
connection with these sales. These transactions were exempt from
the registration requirements under the Securities Act of 1933
based on Rule 506 of Regulation D, and similar provisions under
state securities laws and regulations.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not Applicable.
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.
Exhibits.
Exhibits included or incorporated by reference herein: See
Exhibit Index.
Reports on Form 8-K.
No reports on Form 8-K were filed during the third quarter of the
fiscal year covered by this Form 10-QSB.
SIGNATURE
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.
Everlert, Inc.
Dated: November 15, 2000 By: /s/ James J. Weber
James J. Weber, President
EXHIBIT INDEX
Number Exhibit Description
2 Share Exchange Agreement between the Company and Safe at
Home Products, Inc., dated April 1, 1999 (incorporated by
reference to Exhibit 2 of the Form 10-SB/A filed on October 24, 2000).
3.1 Articles of Incorporation (incorporated by reference to
Exhibit 3.1 of the Form 10-SB/A filed on October 24, 2000).
3.2 Certificate of Amendment of Articles of Incorporation
(incorporated by reference to Exhibit 3.2 of the Form 10-SB/A
filed on October 24, 2000).
3.3 Bylaws (incorporated by reference to Exhibit 3.3 of the Form
10-SB/A filed on October 24, 2000).
10.1 Convertible Promissory Note between the Company and James T.
Marsh, dated March 22, 1999 (incorporated by reference to Exhibit
10.1 of the Form 10-SB/A filed on October 24, 2000).
10.2 Convertible Promissory Note between the Company and Wyvern
Technologies, Inc., dated March 22, 1999 (incorporated by
reference to Exhibit 10.2 of the Form 10-SB/A filed on October
24, 2000).
10.3 Convertible Promissory Note between the Company and Jerry G.
Hilbert, dated July 14, 2000 (incorporated by reference to
Exhibit 10.3 of the Form 10-SB/A filed on October 24, 2000).
21 Subsidiaries of the Registrant (incorporated by reference to
Exhibit 21 of the Form 10-KSB/A filed on September 8, 2000).
27 Financial Data Schedule (see below).