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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2000
Commission file number 000-25499
Color Strategies
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(Former Name)
Infinite Technology Corporation
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(New Name)
(Exact name of small business issuer as specified in its charter)
Nevada 88-0390360
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State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization
5777 W. Century Boulevard,
suite 775-A, Los Angeles, CA 84790
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(Address of principal executive offices) (Zip Code)
(310) 342-0794
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(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12
months (or for such shorter period that the registrant was required to file
such reports) Yes [ ] No [X], 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:
As of March 31, 2000, the issuer had outstanding 2,023,424 shares of its
Common Stock, $0.001 par value.
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
FLEXXTECH CORPORATION
FORMERLY INFINITE TECHNOLOGY CORPORATION AND
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
March 31, 2000
(Unaudited)
NOTE TO UNAUDITED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
(1) Summary of Significant Accounting Policies:
Organization and Basis of Presentation:
The Company was organized on October 4, 1985, under the laws of the
State of Nevada, as Color Strategies. On December 20, 1999, the Company
changed its name to Infinite Technology Corporation. The Company changed
its name to Flexxtech Corporation on May 4, 2000.
Basis of Preparation:
The accompanying unaudited condensed interim financial statements have
been prepared in accordance with the rules and regulations of the
Securities and Exchange Commission for the presentation of interim
financial information, but do not include all the information and
footnotes required by generally accepted accounting principles for
complete financial statements. The audited financial statements for the
two years ended December 31, 1999 was filed on November 20, 2000 with
the Securities and Exchange Commission and is hereby referenced. In the
opinion of management, all adjustments considered necessary for a fair
presentation have been included. Operating results for the three month
period ended March 31, 2000 are not necessarily indicative of the
results that may be expected for the year ended December 31, 2000.
Going Concern:
The Company's financial statements are prepared using the 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. The Company has no current source of
revenue. Without realization of additional capital, it would be unlikely
for the Company to continue as a going concern. This factor raises
substantial doubt about the Company's ability to continue as a going
concern. Management recognizes that the Company must generate additional
resources to enable it to continue operations. The Company intends to
begin recognizing significant revenue during the year 2000. Management's
plans also include the sale of additional equity securities. However, no
assurance can be given that the Company will be successful in raising
additional capital. Further, there can be no assurance, assuming the
Company successfully raises additional equity, that the Company will
achieve profitability or positive cash flow. If management is unable to
raise additional capital and expected significant revenues do not result
in positive cash flow, the Company will not be able to meet its
obligations and will have to cease operations.
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FLEXXTECH CORPORATION
FORMERLY INFINITE TECHNOLOGY CORPORATION
AND COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Current Asset:
Cash and cash equivalent $ 1,094
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Total Current Asset 1,094
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TOTAL ASSETS $ 1,094
========
LIABILITIES STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts Payable $ 1,555
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Total Current Liabilities 1,555
STOCKHOLDERS' DEFICIT
Common stock, authorized 100,000,000 shares
at $.001 par value, issued and outstanding
2,464,617 shares, after giving effect to a
13,09322865 to 1 stock split effective
December 20, 1999 2,668
Additional Paid in Capital 24,069
Deficit Accumulated during the Development stage (27,198)
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Total Stockholders' Deficit (461)
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TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 1,094
========
</TABLE>
The accompanying notes are an integral part of these financial statements
F-2
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FLEXXTECH CORPORATION
FORMERLY INFINITE
TECHNOLOGY CORPORATION
AND
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS AND DEFICIT
FOR THE PERIOD ENDED MARCH 31, 2000 & 1999
(WITH CUMULATIVE FIGURES FROM INCEPTION)
(UNAUDITED)
<TABLE>
<CAPTION>
From Inception
January 1, 2000 January 1, 1999 March 24, 1998
To March 31, 2000 To March 31, 1999 To March 31, 2000
----------------- ----------------- -----------------
<S> <C> <C> <C>
Sales $ - $ - $ 2,707
Cost of sales - - 2,094
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Gross profit - - 613
General and Administrative expenses - 2,608 27,811
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Net Loss - (2,608) (27,198)
Retained earning - Beginning (27,198) (2,208) 0
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Deficit accumulated during the development stage $ (27,198) $ (4,816) $ (27,198)
=========== =========== =========
Basic and diluted loss per share - $ (0.010) $ (0.001)
=========== ===========
Basic and diluted weighted average shares outstanding 2,668,417 5,260,859
=========== ===========
</TABLE>
* The basic and diluted net loss per share has been restated to retroactively
effect a reverse stock split in the ratio of one share for 13.09322865 shares.
The accompanying notes are an integral part of these financial statements
F-3
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FLEXXTECH CORPORATION
FORMERLY INFINITE TECHNOLOGY CORPORATION AND
COLOR STRATEGIES
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED MARCH 31, 2000 & 1999
(WITH CUMULATIVE FIGURES FROM INCEPTION)
(UNAUDITED)
<TABLE>
<CAPTION>
From Inception
January 1, 2000 January 1, 1999 March 24, 1998
To March 31, 2000 To March 31, 1999 To March 31, 2000
----------------- ----------------- -----------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $ - $ (2,608) $ (27,198)
Adjustments to reconcile net loss to cash used in
operating activities
Amortization - 27 27
Increase/(decrease) in accounts payable (1,775) (120) 1,528
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NET CASH USED IN OPERATING ACTIVITIES (1,775) (2,701) (25,643)
CASH FLOWS FROM FINANCING ACTIVITIES
Sales of common stock - - 402
Repurchase of common stock - - (10,000)
Paid-in capital - - 60,048
Offering costs - (5,789) (23,713)
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NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES - (5,789) 26,737
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENT (1,775) (8,490) 1,094
CASH AND CASH EQUIVALENT - BEGINNING 2,869 46,184 -
------- -------- ---------
CASH AND CASH EQUIVALENT - ENDING $ 1,094 $ 37,694 $ 1,094
======= ======== =========
</TABLE>
The accompanying notes are an integral part of these financial statements
F-4
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ANY FORWARD-LOOKING STATEMENTS INCLUDED IN THIS FORM 10-QSB REFLECT
MANAGEMENT'S BEST JUDGMENT BASED ON FACTORS CURRENTLY KNOWN AND INVOLVE RISKS
AND UNCERTAINTIES. ACTUAL RESULTS MAY VARY MATERIALLY.
Item 2. Management's Discussion and Analysis of Financial Condition or
Plan of Operation
The following discussion provides information which Management believes
is relevant to an assessment and understanding of the Company's plan of
operation. This discussion should be read in conjunction with the Company's
financial statements and notes.
The Company's limited capital and its lack of significant operating
history, designate that the Company must be considered a development stage
company. Development stage companies are inherently more risky than
established companies because there is no earnings history and no assurance
that future revenues will develop. The Company's current business purpose is
that of creating and presenting self-improvement and motivational seminars which
utilize the concept of (1) identifying individual characteristics through
"color coded" personality profiles, (2) enhancing an individual's self-image
once such personality traits are recognized, and/or (3)effectively utilizing
such "color coded" personality profiles in a wide range of situations which
include individual success in the work place, corporate hiring strategies and
employee relations, and more effective use of mass-media presentations such as
training videos or infomercials. The Company's services include the introduction
of established topics of self-improvement and motivation the concepts of image
and style enhancement by profiling personality characteristics through "color
coding." The Company's concept of integrating the "color coding" of behavioral
characteristics with self-improvement and motivational techniques is referred to
as its "Color/Image Strategies". The "color coding" system enables the ready to
identification of behavioral profile, capitalization on behavioral strengths,
increased appreciation of different profiles and the ability to anticipate and
minimizes potential conflicts with others. The Company's largest hurdle is,
and will be, to convince its various target markets that the use of its
Color/Image Strategies will prove beneficial.
During the next twelve months the Company's plan of operation is to either
continue to introduce its Color/Image Strategies to various markets and
hopefully achieve a certain amount of market penetration in one or more of
these markets by achieving a client base or to obtain another line of business
altogether. In order to achieve its historic objectives, the Company has
narrowed its target market, which was initially broad in scope, to three areas:
(1)
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Motivational Seminars, (2) Keynote Speaking Services, and (3) One-on-One Image
Consulting. The Company plans to continue to research and develop these markets.
Although the Company had intended to pursue the market of employee and
management training in the Hotel/Casino industry, as of March 31, 2000, the
Company's efforts in this direction have found this market to be highly
saturated and too competitive for the Company's resources. The Company will
explore this market at a later time when resources allow.
The Company also remains receptive to obtaining a new line of business.
The Company is exploring the possibility of pursuing interests in technology
industries.
The Company had no net loss for the three months ended March 31, 2000.
However, the Company had an accumulated deficit as on March 31, 2000 of
($27,198.00), as compared to ($4,816.00) as on March 31, 1999. The Company
received no revenues during the quarter ended March 31, 2000. The Company had no
expenses during the quarter ended March 31, 2000. The Company had no unpaid
legal or accounting expenses at its quarter ended March 31, 2000. At its quarter
ended March 31, 2000 the Company had liabilities of $1,555.00 which was
comprised mostly of consulting fees.
During the next year, the Company will need a minimum of $4,800.00 for
lease payments, an estimated $4,000.00 for legal and accounting in order to meet
compliance requirements as a "reporting company," in addition to other day to
day operating expenses. Ms. Tischner has continued to defer her agreed upon
$1,000.00 per month salary. Also, the Company's normal $500.00 a month
consulting fee to Progressive Management and Consulting, Inc. has been deferred
until such time the Company's cash flow position can support such payment.
Progressive Management and Consulting, Inc. has agreed to continue performing
bookkeeping, audit preparation and SEC filing on a deferred basis. In an effort
to further reduce expenses, the Company has also reduced its advertising budget
to approximately $500.00 per month, and it is likely the Company will spend less
than that if it continues on its current trend of incurring minimal advertising
and marketing expenses. The Company may suspend all advertising expenses and
other expenses if its revenues and cash position do not improve. The Company
has no plans for additional employees or for purchase of any equipment during
the next 12 months unless the Company begins generating significant revenues. It
is very likely that the $1,094.00 in funds available to the Company at March 31,
2000, will be insufficient to fund operations for an additional 9 months without
revenues from operations or other sources, especially if compliance with SEC
reporting requirements costs more than anticipated.
Since inception on March 24, 1998, the Company has funded its operations
through offerings of its common stock: the Company's founders paid $10,000 for
their initial stock position at inception and the Company raised an additional
$50,450 in gross proceeds through the sale of unregistered common shares of
its stock during August of 1998. If the Company does not succeed in seeing
limited revenues in the next nine to twelve months, it may be forced to seek
additional financing, look at new business purposes or opportunities, or to
discontinue operations altogether. Even if the Company begins generating
revenues, it could require additional funding for expansion. It may be
difficult for the Company to succeed in securing additional financing. The
Company may be able to attract some private investors, or officers and
directors may be willing to make additional cash contributions, advancements
or loans. Or, in the alternative, the Company could attempt some form of debt
or equity financing. However, there is no guarantee that any of the foregoing
methods of financing would be successful. If the Company fails to achieve
at least a portion of its business goals in the next nine months with the
funds available to it, there is substantial uncertainty as to whether it will
continue operations.
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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.
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits filed with this Report
Exhibit no. Description
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27 Financial Data Schedule
(b) Reports on Form 8-K -- None
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of
1934, the Registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
INFINITE TECHNOLOGY CORPORATION
(Registrant)
Date: November 20, 2000 By: /s/ Greg Mardock
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Greg Mardock
President
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