FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2000
----------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 0-26461
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SNELLING TRAVEL, INC.
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(Exact name of registrant as specified in its charter)
Colorado 58-2368425
------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Pharr Road, No. A-207, Atlanta, Georgia 30305
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(Address of principal executive offices) (Zip Code)
(404) 841-0111
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(Registrant's telephone number, including area code)
N/A
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(Former name, former address and former fiscal year,
if changed since last report)
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) has been subject to such
filing requirements for the past 90 days. Yes No XX
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APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
Class of Stock Amount Outstanding
------------------------ -----------------------------
$.001 par value 44,225,000 shares outstanding
Common Stock at May 8, 2000
<PAGE>
SNELLING TRAVEL, INC.
(a development stage company)
CONTENTS
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements Page Number
Balance Sheets as of March 31, 2000 and December 31, 1999 2
Statements of Operations for the three-month periods ended
March 31, 2000 and 1999 3
Statements of Stockholders' Equity for the period December 15, 1997
(inception) through March 31, 2000 4
Statements of Cash Flows for the three-month periods ended
March 31, 2000 and 1999 5
Notes to Financial Statements 6-7
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations 8-9
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
<PAGE>
<TABLE>
<CAPTION>
SNELLING TRAVEL, INC.
(a development stage company)
BALANCE SHEETS
ASSETS
March 31, December 31,
2000 1999
----------- ------------
(unaudited)
<S> <C> <C>
Current assets:
Cash $ 23,105 $ 27,817
----------- ------------
Total current assets $ 23,105 $ 27,817
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 13,965 $ 2,135
----------- ------------
Total current liabilities 13,965 2,135
----------- ------------
Stockholders' equity:
Common stock, $.001 par value
100,000,000 shares authorized,
44,225,000 shares issued and outstanding 44,225 44,225
Additional paid-in capital 18,275 16,475
Deficit accumulated during the development stage (53,360) (35,018)
----------- ------------
Total stockholders' equity 9,140 25,682
----------- ------------
Total liabilities and stockholders' equity $ 23,105 $ 27,817
=========== ============
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
SNELLING TRAVEL, INC.
(a development stage company)
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three-month period ended December 15, 1997
March 31, (inception)
----------------------------------- through
2000 1999 March 31, 2000
---------------- ----------------- -------------------
<S> <C> <C> <C>
Revenue $ - $ - $ -
---------------- ----------------- -------------------
Operational expenses:
Professional services 15,217 1,500 36,126
Stock transfer 73 - 2,916
Filing fees 225 - 1,995
Officer compensation 1,500 1,500 7,500
Rent 300 300 1,500
Website design - 195 1,934
Travel - - 249
Office 1,027 10 1,140
---------------- ----------------- -------------------
18,342 3,505 53,360
---------------- ----------------- -------------------
Net loss $ (18,342) $ (3,505) $ (53,360)
================ ================= ===================
Basic loss per share $ (0.00) $ (0.00) $ (0.00)
================ ================= ===================
Weighted average shares outstanding 44,225,000 29,000,000 37,606,228
================ ================= ===================
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
SNELLING TRAVEL, INC.
(a development stage company)
STATEMENT OF STOCKHOLDERS' EQUITY
(UNAUDITED)
For the period December 15, 1997 (inception) through March 31, 2000
Deficit
accumulated
Common stock Additional during the
-------------------------- paid-in development
Shares Amount capital stage
---------- -------- ------------ ---------------
<S> <C> <C> <C> <C>
Stock issued at inception
(December 15, 1997) 29,000,000 $ 29,000 $ (28,000) $ -
Net loss - - - (1,000)
---------- -------- ------------ ---------------
Balance at December 31, 1997 29,000,000 29,000 (28,000) (1,000)
Stock issued in connection with private
placement 15,225,000 15,225 37,275 -
Net loss - - - (92)
---------- -------- ------------ ---------------
Balance at December 31, 1998 44,225,000 44,225 9,275 (1,092)
Rent and salary contributed by officer - - 7,200 -
Net loss - - - (33,926)
---------- -------- ------------ ---------------
Balance at December 31, 1999 44,225,000 44,225 16,475 (35,018)
Rent and salaries contributed by officer - - 1,800 -
Net loss - - - (18,342)
---------- -------- ------------ ---------------
Balance at March 31, 2000 44,225,000 $ 44,225 $ 18,275 $ 53,360)
========== ======== ============ ===============
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
SNELLING TRAVEL, INC.
(a development stage company)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three-month period ended December 15, 1997
March 31, (inception)
----------------------------------- through
2000 1999 March 31, 2000
---------------- ----------------- -------------------
<S> <C> <C> <C>
Net loss $ (18,342) $ (3,505) $ (53,360)
Adjustments to reconcile net loss to net cash
used in operating activities:
Stock issued for services - - 1,000
Rent and salary contributed by officer 1,800 1,800 9,000
Increase in accounts payable 11,830 - 13,965
---------------- ----------------- -------------------
Net cash used in operating activities (4,712) (1,705) (29,395)
---------------- ----------------- -------------------
Cash flows from financing activities:
Proceeds from issuance of common stock - 1,500 52,500
---------------- ----------------- -------------------
Net cash provided by financing activities - 1,500 52,500
---------------- ----------------- -------------------
Net increase (decrease) in cash (4,712) (205) 23,105
Cash, beginning of period 27,817 51,008 -
---------------- ----------------- -------------------
Cash, end of period $ 23,105 $ 50,803 $ 23,105
================ ================= ===================
</TABLE>
5
<PAGE>
SNELLING TRAVEL, INC.
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
March 31, 2000
1. Unaudited interim financial statements
The accompanying unaudited financial statements have been prepared in
accordance with the instructions for Form 10-QSB and do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments, consisting only of normal recurring adjustments considered
necessary for a fair presentation, have been included. Operating results
for any quarter are not necessarily indicative of the results for any other
quarter or for the full year.
These statements should be read in conjunction with the financial
statements of Snelling Travel, Inc. and notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended December 31,
1999.
Use of 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 period. Actual results could differ from those estimates.
History and business activity
On December 15, 1997, the Company was incorporated under the laws of
Colorado. The Company's primary purpose is to engage in the travel
business, specializing in adventure travel within the United States,
Canada, Mexico, and the Caribbean.
During August 1999, the Company filed a registration statement with the
U.S. Securities and Exchange Commission on Form 10-SB, thereby registering
its common stock under the Securities Exchange Act of 1934, as amended ("34
Act").
Development stage
The Company is currently in the developmental stage and has no significant
operations to date.
6
<PAGE>
1. Summary of significant accounting policies (continued)
Basic loss per common share
Basic loss per common share is computed by dividing the net loss applicable
to common shareholders by the weighted average number of shares outstanding
during the period. Diluted loss per share amounts are not presented because
they are anti-dilutive.
Reclassifications
Certain accounts in the prior year financial statements have been
reclassified for comparative purposes to conform with the presentation in
the current year financial statements. These reclassifications have no
effect on previously reported income.
2. Stockholders' deficit
Stock Dividend
During December 1999, the Board of Directors authorized a
twenty-nine-for-one dividend of the Company's common stock. The Company's
capital structure, including all references to common stock, additional
paid-in capital, common shares outstanding, average number of common stock
shares outstanding, stock options and per share amounts, have been restated
for all periods presented to reflect the dividend on a retroactive basis.
7
<PAGE>
SNELLING TRAVEL, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Introduction
Certain statements contained herein constitute "forward looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward looking statements include, without limitation, statements regarding the
Company's plan of business operations, anticipated revenues and related
expenditures. Factors that could cause actual results to differ materially
include, among others, the following: acceptability of the Company's services in
the retail market place, general economic conditions, political and economical
conditions abroad, competition in the airline industry and the overall state of
the travel industry. Most of these factors are outside the control of the
Company. Investors are cautioned not to put undue reliance on forward looking
statements. Except as otherwise required by applicable securities statutes or
regulations, the Company disclaims any intent or obligation to update publicly
these forward looking statements, whether as a result of new information, future
events or otherwise.
Plan of Operation
At March 31, 2000, the Company remained in the development stage, having no
revenue from operations. The Company continued efforts to implement its business
plan and generate revenues. Marketing is conducted through a site maintained by
the Company on the World Wide Web, as well as the personal contacts of the
Company's president. During the three month period ended March 31, 2000, the
Company was successful in placing additional banner advertisements on Web sites
maintained by third parties. Such advertising represents an effort by the
Company to obtain additional exposure for its services. The Company's sole
employee continues investigation of travel destinations and accommodations in an
effort to broaden the Company's programs. The Company also plans to make various
presentations to individuals and groups in an effort to interest prospective
clients.
8
<PAGE>
Receipt of revenue by the Company is dependent on the success of these and
other marketing efforts conducted by the Company. There is no assurance when, if
ever, revenues will be received. However, management believes that winter and
fall are the most popular travel times for its customers, and will increase
marketing efforts to attract clients during that time.
During the three month period ended March 31, 2000, the Company realized a
net loss of $18,342, or $.00 per share. Significant expenses include legal and
accounting fees associated with the Company's filing obligation as an SEC
reporting company and the terminated merger with Plus Solutions. Salaries and
rent accrued during the three month period ended March 31, 2000 in the amount of
$1,800 have been donated by the Company's president. Accordingly, those expenses
represent non-cash expenses.
Expenses anticipated in the future include administrative expenses similar
to those incurred to date, as well as direct costs associated with travel
programs proposed to be implemented by the Company.
Liquidity and Capital Resources
At March 31, 2000, the Company had working capital of $9,140, consisting of
current assets of $23,105 and current liabilities of $13,965. Current assets
consisted entirely of cash, while current liabilities consisted of accounts
payable. The Company has no specific capital requirements at this time other
than payment of accounts payable and general and administrative expenses.
Management believes that the Company's cash will be sufficient for the
foreseeable future, although the Company will require additional cash in order
to expand its marketing beyond the limited amount currently conducted. The
Company will also require additional cash to maintain its reporting obligations
with the SEC. Expenses associated with travel programs proposed to be offered by
the Company will be paid in installments by customers in the form of deposits.
Any additional cash required for operations will be sought from private debt or
equity financing.
9
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
No report required.
Item 2. Changes in Securities and Use of Proceeds.
No report required.
Item 3. Defaults Upon Senior Securities.
No report required.
Item 4. Submission of Matters to a Vote of Security Holders.
No report required.
Item 5. Other Information.
No report required.
Item 6. Exhibits and Reports on Form 8-K.
(a) No exhibits.
(b) Reports on Form 8-K. The Company filed a Report on Form 8-K dated
March 22, 2000 to report a change in its accountants from Kish,
Leake & Associates, P.C. to Horton & Company, LLC.
10
<PAGE>
SIGNATURES
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.
SNELLING TRAVEL, INC.
Date: May 10, 2000
-------------- By: /s/ Rollins C. Snelling
----------------------------
Rollins C. Snelling, Jr., President and Treasurer
11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 23,105
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 23,105
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 23,105
<CURRENT-LIABILITIES> 13,965
<BONDS> 0
0
0
<COMMON> 44,225
<OTHER-SE> (35,085)
<TOTAL-LIABILITY-AND-EQUITY> 23,105
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 18,342
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (18,342)
<INCOME-TAX> 0
<INCOME-CONTINUING> (18,342)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (18,342)
<EPS-BASIC> (0.00)
<EPS-DILUTED> (0.00)
</TABLE>
