FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF
1934
For the Quarter ended March 31, 2000
Commission File Number: 000-28429
EWORLD TRAVEL CORP.
Nevada 68-0423301
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
34700 Pacific Coast Highway, Suite 303, Capistrano Beach CA 92624
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (949) 248-1765
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: 2,682,000
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 March 31, 2000, the number of shares outstanding of the Registrant's
Common Stock was 2,682,000.
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PART I: FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS.
Attached hereto and incorporated herein by this reference are consolidated
financial statements. Our 1934, section 12(g) registration became effective
after the close of 1999, such that our annual audit is now filed herewith, along
with unaudited statements for our first quarter of 2000.
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FINANCIAL STATEMENTS
F-99 Audited Financial Statements for the years ended December 30, 1999,
1998; and from inception December 10, 1998
QF-1 Un-Audited Financial Statements for the three months ended March 31,
2000
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
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(A) PLAN OF OPERATION. The initial plan is to take optimal advantage of the
burgeoning market by positioning the Registrant as a one-stop shop, for
travellers worldwide, offering the widest possible range of travel information,
services and products. This is considered an ambitious but achievable plan. The
initial revenue generation is expected to be generated from advertisers on the
web site, and gradually shifting in favor of customer bookings. Emphasis will
expand with offerings of travel related products over time. While there can be
no assurance of success, the Registrant believes that its site will attract the
attention of travellers, by means of the extensive array of free travel
information available, and its ease of use. The Registrant estimates that it
will require about $250,000.00 in new financing, during the next twelve months,
with which to launch and sustain its operations. While no specific financing
program has been fixed or adopted, the Registrant intends to raise these funds
by the private placement of up to 1,000,000 new investment shares of common
stock, at $0.25 per share, to sophisticated, accredited and institutional
investors.
EXPECTED PURCHASE OR SALE OF PLANT AND SIGNIFICANT EQUIPMENT. None. The
Registrant would expect to obtain a working office, and to furnish it with
office equipment and one or two ordinary personal computers. The Registrant does
not require an expensive server or database system because of its license to use
the ITN Network.
EXPECTED SIGNIFICANT CHANGE IN THE NUMBER OF EMPLOYEES. The Registrant has no
employees now, other than its two Officers and Directors. The Registrant would
expect to employ a manager and two sales personnel when operations are launched.
(B) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
This Registrant has had no operations to date, and no revenues or expenses in
1998. Its expenses during 1999, and the first quarter of year 2000, reflect
administrative, legal and professional expenses only, in connection with
organization and corporate filings and audit. It is likely that the operational
picture for the next twelve months will be dominated by initial operating
losses, incurred while revenues build slowly. Building revenues will entail
successful establishment of strategic alliances with hotels, airlines, cruise
lines, tour organizers and independent booking agents, to promote the use and
awareness of the site. The more active the site becomes, independent of booking
revenues, the more profitable advertising revenues may be expected to become,
both in terms of demand for space, and in terms of the commercial value of
advertising on the Registrants site. A fair guess would be that profitability
might be realized in the fourth quarter of 2000, and may not be achieved before
that time.
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PART II: OTHER INFORMATION
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ITEM 1. LEGAL PROCEEDINGS
NONE
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. REPORTS ON FORM 8-K
NONE
EXHIBIT INDEX
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FINANCIAL STATEMENTS
F-99 Audited Financial Statements for the years ended December 30, 1999,
December 31, 1998
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QF-1 Un-Audited Financial Statements for the three months ended March 31,
2000
==========================================================================================
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-Q Report for the Quarter ended March 31, 2000 has been signed below by
the following person on behalf of the Registrant and in the capacity and on the
date indicated.
Dated: March 31, 2000
EWORLD TRAVEL CORP.
by
/s/ /s/
Gerald Yakimishyn Kirt W. James
president/director secretary/director
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EXHIBIT F-99
AUDITED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 30, 1999, 1998
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CONTENTS
Independent Auditors' Report 7
Balance Sheets 8
Statements of Operations 9
Statements of Stockholders' Equity 10
Statements of Cash Flows 11
Notes to the Financial Statements 12 - 13
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INDEPENDENT AUDITOR S REPORT
To the Board of Directors and Stockholders of
eWorld Travel Corporation
We have audited the accompanying balance sheets of eWorld Travel Corporation (a
Development Stage Company) as of December 31, 1999 and 1998 and the related
statements of operations, stockholders equity and cash flows for the year ended
December 31, 1999 and from inception on December 10, 1998 through December 31,
1998 and 1999. These financial statements are the responsibility of the Company
s management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of eWorld Travel Corporation (a
Development Stage Company) as of December 31, 1999 and 1998 and the results of
its operations and cash flows for the year ended December 31, 1999 and from
inception on December 10, 1998 through December 31, 1998 and 1999 in conformity
with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 2, the Company s
recurring operating losses and lack of working capital raise substantial doubt
about its ability to continue as a going concern. Management s plans in regard
to those matters are also described in Note 2. The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
/s/
Crouch, Bierwolf & Chisholm
Salt Lake City, Utah
January 28, 2000
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EWorld Travel Corporation
(a development Stage Company)
Balance Sheets
ASSETS
December 31, December 31,
1999 1998
Current assets
Cash $ 1,825 $ 0
Total Current Assets 1,825 0
Total Assets $ 1,825 $ 0
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
Accounts payable-related party (Note4) 385 0
Total Current Liabilities 385 0
Stockholders Equity
Common Stock, authorized
100,000,000 shares of $.001 par value,
issued and outstanding 2,682,000 and
2,000,000 shares 2,682 2,000
Additional Paid in Capital 36,118 18,000
Less: Subscription receivable (1,000) (20,000)
Deficit Accumulated During the
Development Stage (36,360) 0
Total Stockholders Equity 1,440 0
Total Liabilities and
Stockholders Equity $ 1,825 $ 0
The accompanying notes are an integral part of these financial statements
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EWorld Travel Corporation
(a development Stage Company)
Statements of Operations
From
inception on
From December 10
For the December 10, , 1998
Year Ended 1998 Through through
December 31, December 31, December 31,
1999 1998 1999
Revenues: $ 0 $ 0 $ 0
Expenses:
General and administrative 36,360 0 36,360
Total Expenses 36,360 0 36,360
Net Loss $ (36,360) $ 0 $(36,360)
Net Loss Per Share $ (.014) $ 0 $(.014)
Weighted average
shares outstanding 2,618,860 2,000,000 2,564,860
The accompanying notes are an integral part of these financial statements
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EWorld Travel Corporation
(a development Stage Company)
Statements of Stockholders' Equity
Deficit
Accumulated
Additional During the
Common Stock paid-in Development
Shares Amount capital Stage
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Common stock, issued at inception for
cash at $.01 per share 2,000,000 $ 2,000 $ 18,000 $ 0
Net loss for the period ended
December 31, 1998 0 0 0 0
Balance, December 31, 1998 2,000,000 2,000 18,000 0
Common stock issued for cash
at $.025 per share 672,000 672 16,128 0
Common stock issued for cash
at $.20 per share 10,000 10 1,990 0
Net loss for the year ended
December 31, 1999 0 0 0 (36,360)
Balance, December 31, 1999 2,682,000 $2,682 $36,118 $(36,360)
The accompanying notes are an integral part of these financial statements
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EWorld Travel Corporation
(a development Stage Company)
Statements of Cash Flows
From December
From inception on
For the 10, 1998
December 10 1998
Year ended Through through
December 31, December 31,
December 31,
1999 1998 1999
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Cash Flows form Operating
Activities
Net loss $(36,360) $ 0 $(36,360)
Adjustments to reconcile
net loss to net cash
provided by operations:
Increase in payables 385 0 385
Net Cash (Used) Provided by
Operating Activities (35,975) 0 (35,975)
Cash Flows from Investment
Activities: 0 0 0
Net Cash (Used) Provided by
Investing Activities 0 0 0
Cash Flows from Financing
Activities:
Issued common stock for cash 37,800 0 37,800
Net Cash (Used) Provided by
Financing Activities 37,800 0 37,800
Net increase (decrease) in cash 1,825 0 1,825
Cash, beginning of period 0 0 0
Cash, end of period $1,825 $ 0 $1,825
The accompanying notes are an integral part of these financial statements
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EWorld Travel Corporation
(a development Stage Company)
Notes to the Financial Statements
December 31, 1999 and 1998
NOTE 1 - Summary of Significant Accounting Policies
a. Organization
eWorld Travel Corporation (the Company) was incorporated on December 10,
1998 under the laws of the state of Nevada. The Company was organized to
provide internet-based travel services. The Company has not yet secured
operations and is in the development stage according to Financial Accounting
Standards Board Statement No. 7.
b. Accounting Method
The Company recognizes income and expense on the accrual basis of
accounting.
c. Earnings (Loss) Per Share
The computation of earnings per share of common stock is based on the
weighted average number of shares outstanding at the date of the financial
statements.
d. Cash and Cash Equivalents
The Company considers all highly liquid investments with maturities of
three months or less to be cash equivalents.
e. Provision for Income Taxes
No provision for income taxes has been recorded due to net operating loss
carryforwards totaling approximately $36,360 that will be offset against future
taxable income. These NOL carryforwards begin to expire in the year 2015. No
tax benefit has been reported in the financial statements because the Company
believes there is a 50% or greater chance the carryforward will expire unused.
Deferred tax assets and the valuation account is as follows at December 31,
1999 and 1998.
December 31, December 31,
1999 1998
---- ----
Deferred tax asset:
NOL carrryforward $ 5,454 $ 0
Valuation allowance (5,454) $ 0
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Total $ 0 $ 0
NOTE 2 - Going Concern
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company has had recurring
operating losses and is dependent upon financing to continue operations. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty. It is management s plan to find an operating
company to merge with, thus creating necessary operating revenue.
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EWorld Travel Corporation
(a development Stage Company)
Notes to the Financial Statements
December 31, 1999 and 1998
NOTE 3 - Development Stage Company
The Company is a development stage company as defined in Financial
Accounting Standards Board Statement No. 7. It is concentrating substantially
all of its efforts in raising capital and defining its business operation in
order to generate significant revenues.
NOTE 4 - Related Party Transactions
During 1999, an officer paid expenses on behalf of the Company in the
amount of $385.
NOTE 5 - Equity
During 1999, the Company issued 672,000 shares of common stock for cash of
$16,800 and 10,000 shares of common stock for cash of $1,000 and a
subscription receivable of $1,000.
During 1998, the Company issued 2,000,000 shares of common stock for a
subscription receivable of $20,000. The Company received the $20,000 in January
1999.
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EXHIBIT QF-1
UN-AUDITED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
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EWorld Travel Corporation
Balance Sheet (Unaudited)
For the fiscal year ended December 31, 1999
And the period ended March 31, 2000
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March 30, December 31,
2000 1999
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ASSETS
CURRENT ASSETS
Cash $ 2,805 $ 1,825
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TOTAL CURRENT ASSETS 2,805 1,825
TOTAL ASSETS $ 2,805 $ 1,825
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STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable 2035 385
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TOTAL LIABILITIES 2035 385
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STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; authorized 100,000,000
shares; issued and outstanding, 2,000,000 and
2,682,000 shares respectively 2,682 2,682
Additional Paid-In Capital 36,118 36,118
Less: Subscription receivable -0- (1,000)
Accumulated Equity (Deficit) (38,030) (36,360)
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Total Stockholders' Equity 770 1,440
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 2,805 $ 1,825
=========== ==============
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The accompanying notes are an integral part of these financial statements
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EWorld Travel Corporation
Statements of Loss and Accumulated Deficit (Unaudited)
For the periods ended March 31, 1999 and 2000
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From inception on
December 10,1998
through
March 31, March 31, March 31,
2000 1999 2000
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Revenues $ 0 $ 0 $ 0
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General and Administrative 1,670 -0- 38,030
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Net Loss from Operations (1,670) 0 (38,030)
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Net Income (Loss) ($1,670) $ 0 ($38,030)
=========== ========== ===================
Loss per Share ($0.0006) $ 0 ($0.0148)
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Weighted Average
Shares Outstanding 2,682,000 2,000,000 2,564,860
=========== ========== ===================
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The accompanying notes are an integral part of these financial statements
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EWorld Travel Corporation
Statements of Stockholders' Equity (Deficit)(Unaudited)
For the period from inception of the Development Stage
On December 10, 1998, through December 31, 1998
For the fiscal year ended December 31, 1999
And the period ended March 31, 2000
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Additional Accumulated Total Stock-
Common Par Paid-In Equity holders' Equity
Stock Value Capital (Deficit) (Deficit)
--------- ----- ---------- ------------ ----------------
Common Stock issued at inception 2,000,000 2,000 18,000 0 20,000
Balance at December 31, 1998 2,000,000 2,000 18,000 0 20,000
Sale of Common Stock
at $0.25 per share 672,000 672 16,128 0 0
Sale of Common Stock
at $0.20 per share 10,000 10 1,990 0 0
Loss during the period from January 1
through December 31, 1999 0 0 0 (36,360) 0
Balance at December 31, 1999 2,682,000 2,682 36,118 (36,360) 2,440
Loss during the period from January 1
through March 31, 2000 0 0 0 (1,670) 0
Balance at March 31, 2000 2,682,000 2,682 36,118 (38,030) 770
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The accompanying notes are an integral part of these financial statements
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EWorld Travel Corporation
Statements of Cash Flow (Unaudited)
For the periods ended March 31, 1999 and 2000
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December 10,1998
through
March 31, March 31, March 31,
2000 1999 2000
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Operating Activities:
Net Income (Loss) -$1,670 $ 0 -$38,030
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Net Cash from Operations (1,670) -0- (38,030)
Cash Increase (Decrease) Sale of Stock 1,000 -0- 38,800
Cash Increase (Decrease) Accounts payable 1,650 -0- 2,035
Beginning Cash 1,825 -0- -0-
Cash as of Statement Date $ 2,805 $ 0 $ 2,805
=========== ========== ==================
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The accompanying notes are an integral part of these financial statements
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EWORLD TRAVEL CORP.
NOTES TO FINANCIAL STATEMENTS
for the fiscal period ended December 31, 1999
and for the periods ended March 31, 1999 and 2000
1-FORMATION AND OPERATIONS OF THE COMPANY
eWorld Travel Corp. (the "Company"), was incorporated under the laws of the
State of Nevada on December 10, 1998. The Company is in the business of
providing Internet-based online travel services for the business and leisure
traveler. Prospective customers have the ability to visit the Company's unique
interactive web site and book airline flights, car rentals, hotel reservations
and other services. At inception the Company issued 2,000,000 shares of its
common stock for $20,000 cash. In April, 1999 the Company authorized the
issuance of 682,000 shares of common stock for $18,800.
2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF ACCOUNTING
Accounting records of the Company and financial statements are maintained
and prepared on an accrual basis.
(b) FISCAL YEAR
The Company's proposed fiscal year for accounting and tax purposes is
December 31.
(c) CASH EQUIVALENTS
For Financial Accounting Standards purposes, the Statement of Cash Flows,
Cash Equivalents include time deposits, certificates of deposit, and all highly
liquid debt instruments with original maturities of three months or less.
Whenever cash amounts are to be included on the Company's Statement of Cash
Flow, however, they will be comprised exclusively of cash.
3-PROPERTY AND EXECUTIVE COMPENSATION
(a) PROPERTY:
The Company's offices and all of its records are located at 34700 Pacific
Coast Highway, Suite 303, Dana Point, California 92624.
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eWorld Travel Corp.
Notes to Financial Statements
for the fiscal period ended December 31, 1999
and for the periods ended March 31, 1999 and 2000
continued
(b) EXECUTIVE COMPENSATION:
Since inception, the Company has paid no cash compensation to its officers
or directors. Officers of the Company will be reimbursed for out-of-pocket
expenses and may be compensated for the time they devote to the Company. In
addition, Officers may receive compensation for services performed on behalf of
the Company. The terms of any such compensation will be determined on the basis
of the nature and extent of the services which may be required and will be no
less favorable to the Company than the charges for similar services made by
independent third parties who are similarly qualified. No officer or director
is required to make any specific amount or percentage of his business time
available to the Company.
5-STOCKHOLDERS' EQUITY.
The Company is authorized to issue 100,000,000 shares of common stock having a
par value of $0.001. In December 1998, 2,000,000 shares of Common Stock, were
issued in exchange for $20,000 in cash. In April 1999, 682,000 shares of Common
Stock, were issued in exchange for $17,800 in cash.
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