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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(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
/ / TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________
Commission File Number 0-25433
KwikWeb.com, Inc.
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(Exact name of small business issuer as specified in its charter)
Nevada 88-0377059
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(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
2155 Newcastle Avenue, Cardiff-by-the-Sea, California 92007
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(Address of principal executive offices)
(760) 943-7829
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(Issuer's telephone number)
Not Applicable
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(Former name, former address and former fiscal year, if changed since
last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 during the past 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 May 01, 2000, the Company had 9,910,000 shares of its $.001 par
value common stock issued and outstanding.
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PART 1 - FINANCIAL INFORMATION
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<CAPTION>
ITEM 1. Financial Statements PAGE
<S> <C>
Unaudited Condensed Consolidated Balance Sheet at March 31, 2000..................................................2
Unaudited Condensed Consolidated Statements of Operations for the three months
ended March 31, 2000 and 1999 and cumulative
from inception (October 9, 1997) to March 31, 2000..............................................................3
Unaudited Condensed Consolidated Statements of Cash Flows for the
three month periods ended March 31, 2000 and 1999 and cumulative
from inception (October 9, 1997) to March 31, 2000..............................................................4
Notes to Unaudited Condensed Consolidated Financial Statements....................................................5
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KWIKWEB.COM, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
Condensed Consolidated Balance Sheet
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, 2000
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ASSETS
<S> <C>
CURRENT ASSETS:
Cash and equivalents $ 71,040
Due from shareholder 4,154
Prepaid expenses 9,774
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TOTAL CURRENT ASSETS 84,968
EQUIPMENT, NET OF $9,236 ACCUMULATED DEPRECIATION 31,476
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$ 116,444
=========================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 15,143
Accrued liabilities 4,664
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TOTAL CURRENT LIABILITIES 19,807
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COMMITMENTS AND CONTINGENCIES -
SHAREHOLDERS' EQUITY:
Common stock, $.001 par value, 25,000,000 shares authorized,
9,910,000 shares issued and outstanding 9,910
Additional paid-in capital 698,772
Deficit accumulated during the development stage (612,045)
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TOTAL SHAREHOLDERS' EQUITY 96,637
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$ 116,444
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KWIKWEB.COM, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
CUMULATIVE FROM
THREE MONTHS ENDED MARCH 31, INCEPTION (OCTOBER 9, 1997)
2000 1999 TO MARCH 31, 2000
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<S> <C> <C> <C>
REVENUE $ - $ - $ -
EXPENSES:
Research and development 45,375 14,300 212,112
General and administrative 131,630 5,848 389,933
Interest - - 10,000
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TOTAL EXPENSES 177,005 20,148 612,045
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NET LOSS $ (177,005) $ (20,148) $ (612,045)
=================== ===================== ===========================
BASIC AND DILUTED NET LOSS PER SHARE $ (0.018) $ (0.003)
=================== =====================
BASIC AND DILUTED WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING 9,910,000 6,000,000
=================== =====================
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KWIKWEB.COM, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
CUMULATIVE FROM
THREE MONTHS ENDED MARCH 31, INCEPTION (OCTOBER 9, 1997)
2000 1999 TO MARCH 31, 2000
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<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(177,005) $ (20,148) $(612,045)
Adjustments to reconcile net loss to
net cash used by operating activities:
Depreciation and amoritzation 2,972 - 9,236
Decrease (increase) in prepaid expenses 1,092 - (9,774)
Contributed capital - salary - - 88,682
Increase (decrease) in accounts payable 7,346 (5,791) 15,143
(Decrease) increase in accrued liabilities (14,843) - 4,664
--------- --------- ---------
Net cash used by operating activities (180,438) (25,939) (504,094)
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment (11,075) - (40,712)
Loans to shareholder (275) (2,963) (4,154)
--------- --------- ---------
Net cash used by investing activities (11,350) (2,963) (44,866)
CASH FLOWS FROM FINANCING ACTIVITIES:
Common stock issued for cash - - 620,000
Subscription receivable - 10,000 -
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Net cash provided by financing activities - 10,000 620,000
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Net (decrease) increase in cash (191,788) (18,902) 71,040
CASH, BEGINNING OF PERIOD 262,828 24,286 -
--------- --------- ---------
CASH, END OF PERIOD $ 71,040 $ 5,384 $ 71,040
========= ========= =========
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KWIKWEB.COM, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
KwikWeb.com, Inc., a Nevada corporation, was formed on October 9, 1997 to
design, develop and market proprietary software that allows on-line users
to easily create and build their own customized websites using a user
friendly "point and click" format. The Company has not commenced planned
principal operations and, therefore, is considered to be in the
development stage.
PRINCIPLES OF CONSOLIDATION
The accompanying consolidated financial statements include the accounts of
KwikWeb.com, Inc. and its wholly owned subsidiary Kwik Web, Inc.
(collectively, the "Company"). All significant intercompany transactions
and balances have been eliminated in consolidation.
INTERIM PERIODS
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions of Form 10-QSB and do not
include all of the information required by generally accepted accounting
principles for complete financial statements. In the opinion of the
Company's management, all necessary adjustments (consisting of normal
recurring adjustments) for a fair presentation have been included.
Operating results for the three months ended March 31, 2000, are not
necessarily indicative of results for any future period. These statements
should be read in conjunction with the consolidated financial statements
and notes thereto for the year ended December 31, 1999 included in the
Company's Form 10-KSB.
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ITEM 2. Management's Discussion and Analysis
OVERVIEW
The Company designs, develops, and markets products and services that
allow individuals and small to medium-sized businesses to create, build, manage
and maintain their own websites. The Company was formed in October 1997 and to
date has focused its efforts on the development of its software products.
PLAN OF OPERATION
The Company's operations to date have consisted of the initial
deployment of its instant web-building software, development of websites that
transmit information to WAP-enabled wireless devices, development of its
database conversion engine and the raising of working capital. The Company
intends to offer its services to individual and small to medium-sized
businesses and expects to generate revenues from website building tools and
services, web-based WAP transmission and web site hosting. In addition, the
Company anticipates earning revenues through revenue sharing agreements with
its strategic alliance partners. To date, the Company has not generated any
revenues from its operations.
The Company has incurred losses since its inception and, as of March
31, 2000, had an accumulated deficit of $612,045. To date the Company has not
generated any revenues, and expects to continue to incur operating losses until
such time as it can conduct its operations on a profitable basis. The Company is
unable to predict at this time when it will be able to generate profits from its
operations. In addition, there can be no assurance that the Company's services
will achieve broad commercial or consumer acceptance.
LIQUIDITY AND FINANCIAL CONDITION.
Since inception (October 7, 1997), the Company has financed its
operations primarily through sales of its' equity securities. Through March 31,
2000, the Company had raised $620,000 from the sale and issuance of common
stock. At March 31, 2000, the principal source of liquidity for the Company was
$71,040 of cash and cash equivalents. As of March 31, 2000, the Company had
working capital of $71,040 and stockholders' equity of $96,637. The Company has
had significant negative cash flows from operating activities since its
inception. The Company intends to continue to fund its operations from the sale
of its securities until such time as it can operate on a profitable basis. The
Company's plan of operations over the next 12 months includes establishing
strategic partnerships with Internet service providers, telecommunications
companies, content providers and other Internet portals and communities that
intend to offer website building services to their members. In addition to its
working capital on hand as of the date of this report, the Company believes that
it will require, at least, an additional $750,000 of capital in order to fund
its plan of operations over the next 12 months. The Company expects to fund its
working capital requirements over the next 12 months from the sale of its
securities, however there can be no assurance that the Company will be able to
obtain sufficient additional capital from the sale of its securities in order to
fund the Company's working capital requirements in a timely manner. The report
of the Company's independent accountants for the six month transitional period
ended December 31, 1999 states that due to the absence of operating revenues and
the Company's limited capital resources, there is doubt about the Company's
ability to continue as a going concern.
FORWARD LOOKING STATEMENTS
This report contains forward-looking statements that are based on the
Company's beliefs as well as assumptions made by and information currently
available to the Company. When used in this report, the words "believe,"
"expect," "anticipate," "estimate" and similar expressions are intended to
identify forward-looking statements. Such statements are subject to certain
risks and uncertainties including, but no limited to, the Company's limited
operating history and lack of working capital, ability to complete pre-clinical
and clinical studies for its products and the difficulty of predicting
regulatory approvals, technological innovations of competitors, changes in
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health-care regulations, litigation claims, product acceptance, unexpected
changes in government regulations, the Company's present financial condition,
the availability of additional capital as and when required; technological
changes; increased competition; and general economic conditions. Should one or
more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
anticipated, estimated, or projected. The Company cautions potential investors
not to place undue reliance on any such forward-looking statements all of which
speak only as of the date made.
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
Inapplicable.
Item 2. CHANGES IN SECURITIES.
Inapplicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
Inapplicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Inapplicable.
Item 5. OTHER INFORMATION.
Inapplicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
Inapplicable.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
KwikWeb.com, Inc.
(Registrant)
Dated: May 15, 2000 By: /s/ RICHARD KAESTNER
----------------------
RICHARD KAESTNER,
President
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-2000 DEC-31-1999
<PERIOD-START> JAN-01-2000 JAN-01-1999
<PERIOD-END> MAR-31-2000 MAR-31-1999
<CASH> 71,040 5,384
<SECURITIES> 0 0
<RECEIVABLES> 4,154 4,582
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 84,968 9,965
<PP&E> 40,712 13,453
<DEPRECIATION> (9,236) (1,241)
<TOTAL-ASSETS> 116,444 22,978
<CURRENT-LIABILITIES> 19,807 28,354
<BONDS> 0 0
0 0
0 0
<COMMON> 9,910 6,000
<OTHER-SE> 698,772 (11,376)
<TOTAL-LIABILITY-AND-EQUITY> 116,444 22,978
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 177,005 20,148
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (177,005) (20,148)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (177,005) (20,148)
<EPS-BASIC> (0.018) (0.003)
<EPS-DILUTED> 0 0
</TABLE>
