UNITED STATES
SECURITIES EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
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[X] Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended October 31, 1999
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CI4NET.COM, INC.
Formerly Known As
LEISURE CONCEPTS INTERNATIONAL INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 13-4032991
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(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
20 Purple Martin Drive
Hackettstown, New Jersey 07840
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number 908-813-0418
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Check here whether the issuer (1) has filed all reports required
to be filed by Sections 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 __X____ No_______
As of October 31, 1999, the following shares of the Registrant's
common stock were issued and outstanding:
8,332,000 shares of voting common stock
Traditional Small Business Disclosure (check one): Yes X No
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<PAGE>
INDEX
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements . . . . . . . . . . . . . . . . .3
CONDENSED CONSOLIDATED BALANCE SHEET . . . . . . . . .4
CONDENSED CONSOLIDATED INCOME STATEMENT. . . . . . . .5
STATEMENT OF CASH FLOWS. . . . . . . . . . . . . . . .6
Note 1. NATURE OF BUSINESS AND SIGNIFICANT
ACCOUNTING POLICIES. . . . . . . . . . . . .8
Note 2. USE OF OFFICE SPACE. . . . . . . . . . . . .8
Note 3. EARNINGS PER SHARE . . . . . . . . . . . . .9
Note 4. LIQUIDITY . . . . . . . . . . . . . . . . . 9
Note 5. SUBSEQUENT EVENTS . . . . . . . . . . . . . 9
Note 6. CONTRIBUTED SERVICES . . . . . . . . . . . 10
Note 7. LOAN PAYABLE . . . . . . . . . . . . . . . 10
Item 2. Management's Discussion And Analysis or Plan of
Operations. . . . . . . . . . . . . . . . . . . . . .11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . 16
Item 2. Changes in Securities. . . . . . . . . . . . . . . . 16
Item 3. Defaults upon Senior Securities. . . . . . . . . . . 16
Item 4. Submission of Matters to a Vote of
Security Holders . . . . . . . . . . . . . . . . . . 17
Item 5. Other information. . . . . . . . . . . . . . . . . . 17
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . 17
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . 18
<PAGE>
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PART I - FINANCIAL INFORMATION
To the Board of Directors of Leisure Concepts International Inc.
Hackettstown, NJ
We have reviewed the accompanying balance sheet of Leisure
Concepts International Inc., (a development stage company) as of
October 31, 1999 and the related statements of loss and
accumulated deficit, and cash flows for the three months then
ended, in accordance with Statements on Standards for Accounting
and Review Services issued by the American Institute of Certified
Public Accountants. All information included in these financial
statements is the representation of the management of Leisure
Concepts International Inc.
A review consists principally of inquiries of Company personnel
and analytical procedures applied to financial data. It is
substantially less in scope than an audit in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material
modifications that should be made to the accompanying financial
statements in order for them to be in conformity with generally
accepted accounting principles.
Graf Repetti & Co., LLP
Dated: New York, New York
December 17, 1999
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<PAGE>
LEISURE CONCEPTS INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
As Of As Of
October 31, 1999 Jan. 31, 1999
(Unaudited) (Audited)
--------------------------------
<S> <C> <C>
ASSETS
Current Assets
Cash $0 $0
Other Current Assets 0 0
_________ ________
Total Current Assets 0 0
Other Assets 0 0
_________ ________
TOTAL ASSETS $0 $0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $0 $0
Accrued Expenses 4,038 13,500
_________ ________
Total Current Liabilities 4,038 13,500
Loan Payable 21,500 0
_________ ________
Total Liabilities 25,538 13,500
Stockholders' Equity
Common Stock, $.001 par value,
Authorized 25,000.000 Shares;
Issued and Outstanding
8,332,000 Shares 8,332 8,332
Additional Paid in Capital 233,538 77,238
Deficit Accumulated During the
Development Stage (267,408) (99,070)
_________ ________
Total Stockholders' Equity (25,538) (13,500)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $0 $0
</TABLE>
The accompanying notes and accountant's report are an integral
part of these financial statements.
<PAGE>
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LEISURE CONCEPTS INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS)
<TABLE>
For the 3 Mos Ended For the 3 Mos Ended
October 31 July 31
1999 1998 1999 1998
------------------------------------------
<S> <C> <C> <C> <C>
TOTAL REVENUES: $ 0 N/A 0 N/A
OPERATING EXPENSES:
Accounting 1,500 N/A 1,500 N/A
Legal 2,500 2,500
Rent Expense (Note 2)2,100 2,100
Filing Fee 13 12
Contributed Svcs
(Note 6) 50,000 50,000
________ _______ ________ ________
NET LOSS (56,113) N/A (56,112) N/A
NET LOSS PER SHARE (.01) (.01)
Weighted Average
Number of Shares
Outstanding 8,332,000 8,332,000
</TABLE>
The accompanying notes and accountant's report are an integral
part of these financial statements.
<PAGE>
<PAGE>
LEISURE CONCEPTS INTERNATIONAL INC.
STATEMENT OF CASH FLOWS (unaudited)
<TABLE>
For the 3 mos For the 3 mos
Ended Ended
to to
October 31, 1999 July 31, 1999
________________________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Loss $(56,113) $(56,112)
Adjustments to Reconcile Net Loss
to Net Cash Used in operating
Activities:
Changes in Assets and Liabilities
Increase in Accounts Payable and
Accrued Expenses (1,487) 1,512
Additional Paid In Capital
Contributed by Shareholders
for Rent 2,100 2,100
Contributed Services 50,000 50,000
________ __________
Total Adjustments (50,613) (53,612)
Net Cash Used in
Operating Activities ( 5,500) ( 2,500)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase in Loan Payable 5,500 2,500
________ _________
Net Cash Provided
by Financing Activities 5,500 2,500
Net Change in Cash 0 0
Cash at Beginning of Period 0 0
Cash at End of Period $ 0 $ 0
Supplemental Disclosure of
Cash Flow Information
Cash Paid During the Period for
Interest Expense 0 0
Corporate Taxes $ 0 $ 0
</TABLE>
The accompanying notes and accountant's report are an integral
part of these financial statements.
<PAGE>
<PAGE>
LEISURE CONCEPTS INTERNATIONAL INC.
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 1999
NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
A. Description of Company
LEISURE CONCEPTS INTERNATIONAL INC.("the Company") is a for-
profit corporation, incorporated under the laws of the State of
Delaware on December 29, 1995. Leisure Concepts International
Inc. is a developmental stage company whose principal objective
is to provide all-inclusive travel services to recognized
destinations worldwide. It will focus on three specific areas:
online travel services, European cruises, and European
vacation ownership.
B. Basis of Presentation
Financial statements are prepared on the accrual basis of
accounting. Accordingly, revenue is recognized when earned and
expenses when incurred.
C. Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect certain reported
amounts and disclosures. Accordingly, actual results could
differ from these estimates. Significant estimates in the
financial statements include the assumption that the Company will
continue as a going concern. See Note 4.
NOTE 2 - USE OF OFFICE SPACE
On February 1, 1998, the Company began using office space for its
executive offices at two locations, both of which it receives
from two of its shareholders at no cost. The fair market value
of the 200 square foot office at 11 Waterloo Place, London UK is
$400 per month. The fair market value of the 200 square foot
ofice at 20 Purple Martin Drive, Hackettstown, New Jersey is $300
per month. Each amount is reflected as an expense with a
corresponding credit to additional paid in capital.
<PAGE>
<PAGE>
NOTE 3 - EARNINGS PER SHARE
FOR THE THREE MONTHS ENDED
OCTOBER 31, 1999
Net Loss Per Share $ (0.01)
NOTE 4 - LIQUIDITY
The Company's viability as a going concern is dependent upon
raising additional capital, and ultimately, having net income.
The Company's limited operating history, including its losses and
no revenues, primarily reflect the operations of its early stage.
As a result, the Company had from time of inception to October
31, 1999 no revenue and a net loss from operations of $267,408.
As of October 31, 1999, the Company had a net capital deficiency
of $25,538.
The Company requires additional capital principally to meet its
costs for the implementation of its business plan, for general
and administrative expenses and to fund costs associated with the
start up of its telecommunications operations. It is not
anticipated that the Company will be able to meet its financial
obligations through internal net revenue in the foreseeable
future. Leisure Concepts International, Inc. does not have a
working capital line of credit with any financial institution.
Therefore, future sources of liquidity will be limited to the
Company's ability to obtain additional debt or equity funding.
See Note 7.
NOTE 5 - PURCHASE OF LEISURE CONCEPTS INTERNATIONAL LTD.
On November 12, 1998, the Company entered into an agreement
whereby it agreed to purchase 100 percent of the issued and
outstanding stock of Leisure Concepts International Ltd., a
company incorporated under the laws of England. Leisure Concepts
International Ltd is a developmental stage company with no assets
or liabilities as of October 31, 1998. Under the agreement, the
Company's 11,000,000 then outstanding shares underwent for a one-
for-15 reverse split into 732,000 shares. The Company then
issued 7,400,000 post reverse split shares with a par value of
$7,400 to the shareholders of Leisure Concepts International Ltd
in exchange for 100 percent of the issued and outstanding stock
of Leisure Concepts International Ltd. An additional 200,000
shares of post-reverse split shares were issued to consultants in
connection with the purchase. After the purchase, the Company
had 8,332,000 shares of stock outstanding.
<PAGE>
NOTE 6 - CONTRIBUTED SERVICES
Four of the Company's officers render services on behalf of the
company at no cost. The fair market value is $4,167 per officer
per month. Each amount is reflected as an expense with a
corresponding credit to additional paid in capital.
NOTE 7 - LOAN PAYABLE
During the three months ended October 31, 1999, Glen Investments
paid $21,500 of liabilities on behalf of Leisure Concepts
International Inc. Glen Investments is owned by one of the
officers of LCI. The loan is not evidenced by a note. The
informal agreement calls for non payment of interest. LCI
intends to repay the loan out of any fund raising that it may
carry out or when the company achieves sustainable revenue.
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION
RESULTS OF OPERATIONS
The Company is a development stage company. Its principal
business as an integrated travel group is to provide all-
inclusive travel services to recognized destinations worldwide
and to destinations which have not been traditionally serviced by
other travel service companies.
ACQUISITION OF CI4NET.COM, INC.
On December 2, 1999, the Company entered into an acquisition
agreement with Ci4net.com, Inc., a Delaware Corporation, to
acquire all the outstanding shares of Ci4net.com in exchange for
20,500,000 shares of post-reverse split common stock of the
Company. As an additional term of the transaction, management of
the Company was obligated to resign and management of Ci4net.com
assumed control of the Company.
Upon execution of the agreement, the Company effectuated a 15 for
1 reverse split of its outstanding shares of common stock which
has effectively left 555,446 shares of common stock outstanding.
Subsequent to the acquisition, and pursuant to the terms of the
Acquisition Agreement, the Company issued the 20,500,000 shares
of common stock to the shareholders of Ci4net.com Inc., as
consideration of their sale of the shares of the shares acquired
by the Company.
Control of the Company now vests in the hands of the shareholders
of Ci4net.com Inc. It was thereupon determined by the
shareholders of the Company that the business plan of Ci4net
become the business plan of the Company and that all steps be
taken to effectuate that plan. To better reflect the business
plan of the Company and its stated intentions, it was thereafter
decided that the Company's name be changed to Ci4net.com, Inc.
ABOUT CI4NET.COM, INC.
Ci4net.com is an Internet holding company actively engaged in
European business-to-business, known as B2B, e-commerce,
Business-to-Consumer, known as B2C, e-commerce, and the building
of an e-commerce technological global infrastructure to serve
global e-commerce through a network of affiliate companies. Its
goal is to become the leading global e-commerce company by
establishing an e-commerce presence in major segments of the
global economy. Ci4net believes that its focus on the e-commerce
industry enables it to capitalize rapidly on new opportunities to
attract and develop leading e-commerce companies. Ci4net's
primary focus is on Europe, however it maintains affiliate
operations in Australia and the United States. Ci4net are
developing businesses with first to market concepts (or first to
market geographically). Ci4net will also take the successful
business models that have had accelerated growth in the United
States and apply them to the European marketplace through
strategic relationships and joint ventures, as well as taking the
internal business models that it develops to other marketplaces.
Ci4net believes it is well positioned to fully exploit the
opportunity in European Internet growth in a market that is
potentially larger and now growing faster than the United States
market. Ci4net utilizes a 'incubator' strategy for building or
buying the best Internet properties. Ci4net intends to become
the premier partner for developing Internet properties throughout
Europe.
Ci4net intends to expand through the European market in two
stages by penetrating two categories of markets. Category One
market encompasses the UK, Germany, France and Italy. Category
Two markets include Spain, Netherlands, Switzerland, Belgium,
Sweden, Austria, Denmark and Norway. The Company believes that
the potential for accelerated growth with the correct business
models is immense. It finds that such growth can be attained and
surpass the successful B2B markets in Europe.
Ci4net has a diverse portfolio of wholly owned, majority owned
and minority owned investments in Internet related Consumer
e-commerce, B2B e-commerce and Infrastructure Enabling Technology
Companies. These investments are termed 'affiliate' companies.
The inter-relationship between these affiliate companies creates
'value added' synergy and co-operative technological development.
Ci4net's ability as an 'incubator' helps companies by way of
being able to make a committed long term investment and to help
those affiliate companies by developing their own individual
business strategies. Ci4net is committed to increasing
shareholder value through its incubator strategy, leading to
eventual floats or strategic sales of the affiliate companies.
Because of the relatively underdeveloped European marketplace,
the group has formed advantageous strategic relationships with
media partners on various of the Consumer e-commerce sites. The
competition in the European marketplace for consumer content e-
commerce channels is sparse as the European Internet has not yet
fully developed. This is evidenced by the fact that Amazon only
established UK operations in November 1998. Ci4net is confident
of being able to develop more European centric sites ahead of US
based competitors.
An integral part of Ci4net's structure is the groups
Infrastructure Enabling Technology Companies (IETC) that create
the operational infrastructure for the affiliate companies. The
IETC are all existing business with proprietary technology and
experienced management, which will all benefit from additional
relationships with the Ci4net B2C and B2B companies. The
synergistic relationships that exist between the IETC companies
gives the Ci4net affiliate companies a solid technological
platform on which to develop site and e-commerce operations.
ACQUISITION OF MSK INDUSTRIES, INC.
The Company on December 10, 1999 also acquired all of the
outstanding shares of common stock of MSK Industries, Inc.,
pursuant to an Acquisition Agreement entered into between the
parties. In exchange for all the outstanding shares of MSK
Industries, the Company issued 2,238,400 post-reverse split
shares of the Company's $0.001 par value voting common stock.
ABOUT MSK INDUSTRIES INC.
MSK Industries, Inc., a developmental stage company, was
organized on December 31, 1996 under the laws of the State of
Delaware, having the stated purpose of engaging in any lawful act
or activity for which corporations may be organized. MSK
Industries had previously sought to develop theme restaurant bars
throughout the United Kingdom catering to sports enthusiasts. The
company abandoned these plans once it determined that it could
not obtain sufficient funding to develop a test restaurant for
the purpose of gauging consumer demand for such a concept. As a
result, the Company determined that it would be beneficial for
its shareholders to be acquired by Leisure Concepts International
as it would provide an opportunity to become part of a entity
which, in the shareholders' opinion, had a potential for growth
and sound investment.
MSK Industries has no recent operating history and minimal assets
and liabilities based upon its developmental stage status.
ANTICIPATED OPERATIONS
Subsequent to the acquisition of Ci4net.com and MSK Industries,
the Company intends to pursue the business plan of Ci4net and to
become the leading global e-commerce company by establishing an
e-commerce presence in major segments of the global economy. The
Company intends to remain active in its pursuit of developing an
internet travel web site however there is no guarantee that
management of Ci4net.com shall wish to pursue this plan or do so
in the same parameters and fashion as that set forth previously
by management of the Company.
The Company intends to effectuate funding of Ci4net's business
plan through the private placement of its shares and through the
procurement of debt instruments payable over a period of time.
The Company's plans are by no means simple and investors are
alerted that any investment in the Company is complex and risky.
There can be no assurance that the Company will succeed in its
efforts or maintain a profitable business. The Company has no
recent operating history and no representation is made, nor is
any intended, that the Company will be able to carry on future
business activities successfully.
The primary costs for the Company during the last quarter have
been those related to legal and accounting services received.
The officers of the Company's officers render services towards
the research of the Company's strategy and their oversight of the
development of the Company at no cost. The fair market value for
the services of each officer is $4,167 per month.
The Company has been advanced funds of $34,000 by Glen
Investments and these are the only amounts which have been
received into the company over the last fiscal year. These funds
are to pay for legal and accounting costs. Glen Investments is
an investment company owned 100% by Chairman Kevin R. Leech, who
has assumed control of the Company through his shareholder in
Ci4net. The terms under which funds have been loaned to the
company are that no interest is to be paid by the company and
Glen Investments will be repaid in full all the monies loaned to
the Company when the Company has sufficient resources to repay
that loan.
In the event the Company needs to seek funds from shareholders,
it shall first elect to source funds from Glen Investments which
has previously provided such funding. There is no guarantee that
Glen Investments will provide such funding. In that event, the
Company will turn to shareholders owning more than 10% of the
Company's common stock and seek funding from such shareholders
upon terms and conditions similar to that of Glen Investments.
There cannot be any guarantee that such shareholders will provide
the Company with such funding. In such event, the Company will
re-evaluate its plans and its proposed operations to determine
whether it would be feasible to continue to implement its
business plan.
The Company would not seek funding beyond its limitations and
would ensure that the Company would operate as efficiently as
possible to keep costs as streamlined as possible. The Company
will not seek funding beyond that which it foresees it will be
able to re-pay over a period of twelve (12) months. Should a
sudden jump in inflation occur the company's prices may then have
to rise in line with inflation.
Inflation could have an adverse affect on the Company's
operations. If inflation were to jump suddenly then the company
could experience difficulties in raising capital to carry out its
expansion and consolidation strategy. In this instance the
Company would still seek the required funding. However, the
Company would be limited in the amount of capital it could raise.
NEW MANAGEMENT
Subsequent to the acquisition of Ci4net.com, Inc., the Company's
management resigned and new management took over control of the
Company. Management by the Company shall now be overseen by the
following persons:
Kevin R. Leech has been appointed as president of the Company.
Mr. Leech will spearhead the Company's potential acquisitions
strategy and implement a plan of consolidating fragmented
businesses with a potential for growth in an attempt to drive the
development of Ci4net. Mr. Leech first established his strategy
of consolidating fragmented businesses in 1964 when he
successfully effected a "rollup" of a number of local funeral
home operators in the United Kingdom. During his business career
Mr. Leech has been involved in investment of a sizable number of
companies and is currently the controlling stockholder of ML
Laboratories PLC and Queensborough Holdings PLC, both listed on
the London Stock Exchange. He also maintains a controlling
interest in topjobs.net plc and TownPagesNet.com PLC, both
internet companies which recently completed initial public
offerings in the United States.
Robert Bradshaw has been appointed a director of the Company and
shall be responsible for overseeing the Company's acquisition
strategy. Mr. Bradshaw has over 25 years experience in corporate
finance. He was a senior partner at Price Waterhouse Coopers and
was in charge of the Northern England corporate finance division.
Mr. Bradshaw's experience will be invaluable when structuring the
financing of potential acquisitions.
Mr. Richard Smith has been appointed Chief Financial Officer of
the Company. Mr. Smith is a Fellow of the Association of
Chartered Certified Accountants, qualifying in 1970. In 1972, he
moved to Jersey (Channel Islands) and after working as an audit
manager for three years moved to Hambros Channel Islands Trust
Corporation as their accountant. In 1978, he took a position as
Finance Controller with Avis Channel Islands car rental and motor
dealership operations. After the disposal of those businesses by
Avis, he became Chief Executive for the new private owner. In
1986 he moved back into the finance industry as Deputy Finance
Manager for Save &Prosper in Jersey, Channel Islands, a Robert
Fleming fund management subsidiary. Since 1988, Mr. Smith has
acted as a Finance Director for Kevin R. Leech's portfolio of
investments.
YEAR 2000 DISCLOSURE
Many currently installed computer systems and software products
are coded to accept only two digit entries in the date code field
and cannot distinguish 21st century dates from 20th century
dates. These date code fields will need to distinguish 21st
century dates from 20th century dates and, as a result, many
companies' software and computer systems may need to be upgraded
or replaced in order to comply with such "Year 2000"
requirements.
The Company believes that its systems are Year 2000 compliant in
all material respects and that it has taken every precaution to
insure the same. The Company has not incurred material costs to
date in this process, and currently does not believe that the
cost of additional actions will have a material effect on results
of operations or financial condition. However, the Year 2000
issue is a very uncertain one and the Company cannot
guarantee that its current systems and products may contain
undetected errors or defects with Year 2000 date functions that
may result in material costs.
The Company 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 or material costs caused by undetected errors or
defects in the technology used in its internal systems. In
addition, the Company utilizes third-party equipment, software
and content, including non-information technology systems ("non-
IT systems"), such as its security system, building equipment and
non-IT systems embedded micro-controllers that may not be Year
2000 compliant. The Company is in the process of developing a
plan to assess whether these third parties are adequately
addressing the Year 2000 issue and whether any of its non-IT
systems have material Year 2000 compliance problems. Failure of
such third-party equipment, software or content to operate
properly with regard to the Year 2000 issue could require the
Company to incur unanticipated expenses to remedy any problems,
which could have a material adverse effect on its business,
results of operations, and financial condition. The Company has
not yet fully developed a comprehensive contingency plan to
address situations that may result if it is unable to achieve
Year 2000 readiness of its critical operations. The cost of
developing and implementing such a plan may itself be material.
Finally, the Company is also subject to external forces that
might generally affect industry and commerce, such as utility or
transportation company Year 2000 compliance failures and related
service interruptions.
The Company states that this disclosure complies with the
directives of the Securities and Exchange Commission,
specifically Staff Legal Bulletin No. 5 (CF/IM), regarding Year
2000 issues.
<PAGE>
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are currently no pending legal proceedings against the
company.
Item 2. Changes in Securities
The Company on December 2, 1999 conducted a 15 to 1 reverse split
of its 8,332,000 outstanding shares of voting common stock.
Subsequent to this reverse split, the Company was left with
555,446 shares of its voting common stock. Thereafter subsequent
to the acquisition of Ci4net.com, the Company possessed issued
and outstanding 21,055,446 shares of voting common stock, $0.001
par value and no shares of preferred stock issued. All of the
outstanding shares of common stock is validly issued, fully paid
and non-assessable. There are no other voting or equity
securities authorized or issued, not any authorized or issued
securities convertible into voting stock, and no outstanding
subscriptions, warrants, calls, options, rights, commitments or
agreements by which the Company is bound, calling for the
issuance of any additional shares of common stock or any other
voting or equity security.
Item 3. Defaults upon Senior Securities
There has been no default in the payment of principal, interest,
sinking or purchase fund installment.
Item 4. Submission of Matters to a Vote of Security Holders
On December 1, 1999, the Company's shareholders elected to
proceed with the acquisition of Ci4net.com, Inc., and authorized
the Company's directors to negotiate an acquisition agreement
which the directors, in their discretion, deemed acceptable for
the Company.
On December 10, 1999, the Company's shareholders elected to
proceed with the acquisition of MSK Industries, Inc., and
authorized the Company's directors to negotiate an acquisition
agreement which the directors, in their discretion, deemed
acceptable for the Company.
Item 5. Other information
There is no other information to report which is material to the
company's financial condition not previously reported.
Item 6. Exhibits and Reports on Form 8-K
On December 17, 1999 the Company filed a Form 8-K disclosing the
terms and conditions of the Company's acquisition of Ci4net.com,
Inc., and MSK Industries, Inc. The disclosure therein is
incorporated by reference to this filing.
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities
Exchange Act of 1934, the registrant has duly caused this
registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized.
CI4NET.COM, INC.
- -----------------------------------
(Registrant)
Date: December 20, 1999
By: /s/ KEVIN R. LEECH
--------------
President
