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 September 30, 2000
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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
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(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 XX No
--- ---
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 November 8, 2000
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SNELLING TRAVEL, INC.
(a development stage company)
CONTENTS
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements Page Number
Balance Sheets as of September 30, 2000 (unaudited)
and December 31, 1999 1
Statements of Operations for the nine-month periods ended
September 30, 2000 and 1999 (unaudited) 2
Statements of Operations for the three-month periods ended
September 30, 2000 and 1999 (unaudited) 3
Statements of Stockholders' Equity for the period
December 15, 1997 (inception) through
September 30, 2000 (unaudited) 4
Statements of Cash Flows for the nine-month periods ended
September 30, 2000 and 1999 (unaudited) 5
Notes to Financial Statements (unaudited) 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
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<TABLE>
SNELLING TRAVEL, INC.
(a development stage company)
BALANCE SHEETS
<CAPTION>
ASSETS
September 30, December 31,
2000 1999
--------------------------------
(unaudited)
Current assets:
<S> <C> <C>
Cash $ 7,177 $ 27,817
-------------- --------------
Total current assets $ 7,177 $ 27,817
-------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,321 $ 2,135
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Total current liabilities 11,321 2,135
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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 21,875 16,475
Deficit accumulated during the development stage (70,244) (35,018)
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Total stockholders' equity (4,144) 25,682
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Total liabilities and stockholders' equity $ 7,177 $ 27,817
</TABLE>
1
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<TABLE>
SNELLING TRAVEL, INC.
(a development stage company)
STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
Nine-month period ended December 15, 1997
September 30, (inception)
----------------------------------- through
2000 1999 September 30, 2000
---------------- ----------------- ------------------
<S> <C> <C> <C>
Revenue $ - $ - $ -
---------------- ----------------- ------------------
Operational expenses:
Professional services 26,563 16,850 47,472
Stock transfer 446 - 3,289
Filing fees 1,446 1,394 3,216
Rent 900 900 2,100
Salaries 4,500 4,500 10,500
Website design - 1,933 1,933
Travel - 249 249
Office 1,371 23 1,485
---------------- ----------------- ------------------
35,226 25,849 70,244
---------------- ----------------- ------------------
Net loss $ (35,226) $ (25,849) $ (70,244)
================ ================= ==================
Basic loss per share $ (0.00) $ (0.00) $ (0.00)
================ ================= ==================
Weighted average shares outstanding 44,225,000 44,225,000 38,796,046
================ ================= ==================
</TABLE>
2
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SNELLING TRAVEL, INC.
(a development stage company)
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three-month period ended
September 30,
-----------------------------------
2000 1999
---------------- -----------------
Revenue $ - $ -
---------------- -----------------
Operational expenses:
Professional services 5,293 4,425
Stock transfer 320 -
Filing fees - 1,394
Rent 300 300
Salaries 1,500 1,500
Website design - 249
Office 30 -
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7,443 7,868
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Net loss $ (7,443) $ (7,868)
================ =================
Basic loss per share $ (0.00) $ (0.00)
================ =================
Weighted average shares outstanding 44,225,000 44,225,000
================ =================
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<TABLE>
SNELLING TRAVEL, INC.
(a development stage company)
STATEMENT OF STOCKHOLDERS' EQUITY
(UNAUDITED)
For the period December 15, 1997 (inception) through September 30, 2000
<CAPTION>
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 salary contributed by officer - - 5,400 -
Net loss - - - (35,226)
----------- ---------- ------------ -------------------
Balance at September 30, 2000 44,225,000 $ 44,225 $ 21,875 $ (70,244)
=========== ========== ============ ===================
</TABLE>
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<TABLE>
SNELLING TRAVEL, INC.
(a development stage company)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Nine-month period ended December 15, 1997
September 30, (inception)
----------------------------------- through
2000 1999 September 30, 2000
---------------- --------------- ------------------
<S> <C> <C> <C>
Net loss $ (35,226) $ (25,849) $ (70,244)
Adjustments to reconcile net loss to net cash
used in operating activities:
Stock issued for services - - 1,000
Rent and salary contributed by officer 5,400 5,400 12,600
Increase in accounts payable 9,186 804 11,321
---------------- --------------- ------------------
Net cash used in operating activities (20,640) (19,645) (45,323)
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Cash flows from financing activities:
Payment of shareholder advance - (100) -
Proceeds from issuance of common stock - 1,500 52,500
---------------- --------------- ------------------
Net cash provided by financing activities - 1,400 52,500
---------------- --------------- ------------------
Net increase (decrease) in cash (20,640) (18,245) 7,177
Cash, beginning of period 27,817 51,008 -
---------------- --------------- ------------------
Cash, end of period $ 7,177 $ 32,763 $ 7,177
================ =============== ==================
</TABLE>
5
<PAGE>
SNELLING TRAVEL, INC.
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 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 and 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.
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<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 split
During December 1999, the Board of Directors authorized a
twenty-nine-for-one split 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 stock split on a retroactive basis.
7
<PAGE>
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 September 30, 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 September 30, 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 in an effort to interest prospective clients.
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 hopes to attract business
During the nine month period ended September 30, 2000, the
Company realized a net loss of $35,226, 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 September 30, 2000 in the amount
of $1,800 have been donated by the Company's president. Accordingly,
those expenses represent non-cash expenses.
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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 September 30, 2000, the Company had a deficit in working
capital of ($4,144), consisting of current assets of $7,177 and
current liabilities of $11,321. 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 additional cash will be need to be raised
to continue operations in 2001, and the Company will require
additional cash in order to expand its marketing beyond the limited
amount currently conducted. The Company will require additional cash
to maintain its reporting obligations with the SEC. It is anticipated
that 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) 27 - Financial Data Schedule
(b) There were no reports on Form 8-K.
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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: November 13, 2000 By: /s/ Rollins C. Snelling, Jr.
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Rollins C. Snelling, Jr.,
President and Treasurer
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