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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15 (d) of
Securities Exchange Act of 1934
For Quarter ended March 31, 2000
Commission File Number 000-24109
- -------------------------------------------------------------------------------
MLM WORLD NEWS TODAY, INC.
(FORMERLY GLOBAL-LINK ENTERPRISES, INC.)
----------------------------------------
(Exact name of registrant as specified in its charter)
NEVADA 91-1937382
------ ----------
(State of Incorporation) (I.R.S. Employer Identification No.)
3633 Camino Del Rio South Suite 107 San Diego, California 92108
(Address of Principal Executive Offices) (Zip Code)
(619) 584-3100
(Registrant's telephone number, including area code)
- -------------------------------------------------------------------------------
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 [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock at the latest practicable date.
As of March 31, 2000, there were 11,268,507 shares of the registrant's
Common Stock, $0.01 par value, issued and outstanding.
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MLM WORLD NEWS TODAY, INC.
(Formerly Global-Link Enterprises, Inc.)
(a Development Stage Company)
Balance Sheets
<TABLE>
<CAPTION>
March 31,
2000 December 31,
(Unaudited) 1999
----------- -----------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 2,963 $ -
Lease payments receivable - 7,913
----------- -----------
Total current assets 2,963 7,913
----------- -----------
PROPERTY AND EQUIPMENT, NET (Note 6) 13,698 1,221
----------- -----------
OTHER ASSETS
Website developments, net (Note 5) 47,949 48,750
Deposits 6,387 6,387
----------- -----------
Total other assets 54,336 55,137
----------- -----------
TOTAL ASSETS $ 70,997 $ 64,271
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Bank overdraft $ - $ 3,497
Accounts payable 25,501 55,186
Accrued liabilities 6,452 1,106
Note payable - related parties (Note 3) 102,137 7,693
Note payable (Note 4) 31,231 33,715
----------- -----------
Total current liabilities 165,321 101,197
----------- -----------
LONG-TERM LIABILITIES
Lease deposits payable - related party 3,957 3,957
Note payable - related parties (Note 3) 95 95
----------- -----------
Total long-term liabilities 4,052 4,052
----------- -----------
Total liabilities 169,373 105,249
----------- -----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, $0.001 par value, 5,000,000 shares authorized;
-0- and -0- shares issued and outstanding, respectively - -
Common stock, $0.001 par value, 20,000,000 shares authorized;
11,268,507 and 11,268,507 shares issued and outstanding,
respectively 11,269 11,269
Additional paid-in capital 52,357 52,357
Deficit accumulated during the development stage (162,002) (104,604)
----------- -----------
Total stockholders' equity (Deficit) (98,376) (40,978)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 70,997 64,271
=========== ===========
</TABLE>
See accompanying notes to the financial statements.
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MLM WORLD NEWS TODAY, INC.
(Formerly Global-Link Enterprises, Inc.)
(a Development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
on November 20,
For three Months Ended 1998 through
March 31, March 31,
-------------------------------- --------------
2000 1999 2000
------------ ------------ --------------
<S> <C> <C> <C>
REVENUE
Net revenue $ -- $ -- $ --
Sales, net 801 -- 801
------------ ------------ ------------
Cost of Sales (801) -- (801)
OPERATING EXPENSES
General & administrative 73,328 42,540 211,410
Depreciation 232 53 511
------------ ------------ ------------
Total operating expenses 73,560 42,593 211,921
------------ ------------ ------------
OTHER INCOME (EXPENSE)
Interest expense (2,197) -- (3,427)
Rental income 19,160 -- 54,147
------------ ------------ ------------
Total Other Income (Expense) 16,963 -- 50,720
------------ ------------ ------------
LOSS FROM OPERATIONS (57,398) (42,593) (162,002)
INCOME TAX EXPENSE -- -- --
------------ ------------ ------------
NET LOSS (57,398) (42,593) (162,002)
============ ============ ============
BASIS LOSS PER SHARE (0.01) (0.00)
============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING 11,268,507 11,268,507
============ ============
</TABLE>
See accompanying notes to the financial statements
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MLM WORLD NEWS TODAY, INC.
(Formerly Global-Link Enterprises, Inc.)
(a Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
From
Inception on
November 20,
For the Three Months Ended 1998 through
March 31, March 31,
----------- ----------- -----------
2000 1999 2000
----------- ----------- -----------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $ (57,398) $ (42,593) $ (162,002)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 1,032 53 1,311
Stock issued for services -- 26,250 26,846
Changes in operating assets and liabilities:
(Increase) decrease in lease payments receivable 7,913 -- --
(Increase) decrease in deposits -- -- (6,387)
Increase (decrease) in accounts payable (29,685) -- 25,501
Increase (decrease) in accrued interest 261 -- 1,367
Increase (decrease) in payroll liabilities 5,085 -- 5,085
Increase (decrease) in lease deposit payable -- -- 3,957
----------- ----------- -----------
Net cash (Used) by Operating Activities (72,792) (16,290) (104,322)
----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (12,708) (1,500) (14,208)
Website development costs incurred (4,500) (48,750)
----------- ----------- -----------
Net cash (Used) by Investing Activities (12,708) (6,000) (62,958)
----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from the issuance of notes payable -- -- 33,715
Proceeds from the issuance of notes payable -
related party 113,456 -- 138,212
Payments on notes payable - related party (19,011) -- (35,979)
Payments on notes payable (2,485) -- (2,485)
Common stock issued for cash -- 20,680 36,780
----------- ----------- -----------
Net cash Provided by Financing Activities 91,960 20,680 170,243
----------- ----------- -----------
NET INCREASE (DECREASE) IN CASH 6,460 (1,610) 2,963
CASH AT BEGINNING OF PERIOD (3,497) 1,705 --
----------- ----------- -----------
CASH AT END OF PERIOD 2,963 95 2,963
=========== =========== ===========
CASH PAID FOR:
Interest $ 1,936 $ -- $ 1,991
Income taxes $ -- $ -- $ --
</TABLE>
See accompanying notes to the financial statements.
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NOTES TO FINANCIAL STATEMENTS
MLM WORLD NEWS TODAY, INC.
(Formerly Global-Link Enterprises, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2000 and December 31, 1999
GENERAL
In the opinion of management, the accompanying consolidated
financial statements contain all adjustments (consisting of only normal
recurring transactions) necessary to present fairly the Company's consolidated
financial position as of March 31, 2000 and 1999, the results of operations for
the three month periods ended March 31, 2000 and 1999 and of cash flows for the
three month periods ended March 31, 2000 and 1999.
While management believes that the disclosures presented are adequate to
make the information not misleading, it is suggested that these consolidated
financial statements be read in conjunction with the consolidated financial
statements and the notes included in the Company's latest annual report on Form
10-KSB.
NOTE 1 - NATURE OF ORGANIZATION
The financial statements presented are those of Global-Link
Enterprises, Inc. (a development stage company) (the Company). The
Company was organized under the laws of the State of Nevada on
November 20, 1998. The Company was organized to develop a
multi-level marketing resource web site to offer web site hosting
and development services as well as a news portal for the
multi-level marketing community.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Accounting Method
The financial statements are prepared using the accrual method of
accounting. The Company has elected a December 31 year end.
b. Basic Loss Per Share
The following is an illustration of the reconciliation of the
numerators and denominators of the basic loss per share calculation:
<TABLE>
<CAPTION>
For the Three Months Ended
March 31,
-----------------------------
------------ ------------
2000 1999
------------ ------------
<S> <C> <C>
Net (loss) (numerator) $ (57,398) $ (42,593)
Weighted average shares outstanding
(denominator) 11,268,507 11,268,507
------------ ------------
Basic loss per share (0.01) (0.00)
============ ============
</TABLE>
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Fully diluted loss per share is not presented as there are no
potentially dilutive items outstanding
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 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 reporting period. Actual results
could differ from those estimates.
d. Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity
of three months or less when purchased to be cash equivalents.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
e. Revenue Recognition Policy
The Company will develop its revenue recognition policies when
planned principle operations commence. Costs of sales relate to the
amortization of the web site development.
f. Income Taxes
As of March 31, 2000, the Company had a net operating loss
carryforward for federal income tax purposes of approximately
$162,000 that may be used in future years to offset taxable income.
The net operating loss carryforward will expire in 2020. The tax
benefit of the cumulative carryforwards has been offset by a
valuation allowance of the same amount.
NOTE 3 - RELATED PARTY TRANSACTIONS
Notes Payable
A related party loaned the Company $15,100 for web site development
during November 1998. The note payable has a maturity date of
November 24, 2001 and accrues interest at 10% per annum. At March
31, 2000, the unpaid principal balance was $95. Interest expense
amounted to $2 and $17 at March 31, 2000 and 1999, respectively.
During 1999, a related party loaned the Company $8,856. The note has
a maturity date of December 31, 2000 and accrues interest at 10% per
annum, unsecured.
During the three months ended March 31, 2000, the same related party
loaned the Company $113,456. The amount is due upon demand and
accrues interest at 10% per annum, unsecured. At March 31, 2000, the
unpaid principal balance on these amounts was $101,337. Interest
expense amounted to $1,188 at March 31, 2000.
During 1999, a related party loaned the Company $800. The note is
due upon demand and accrues interest at 10% per annum, unsecured. At
March 31, 2000, the unpaid principal balance was $800. Interest
expense amounted to $48 at March 31, 2000.
During the three months ended March 31, 2000 and 1999, the Company
paid $17,100 and $5,860 in consulting fees to related parties,
respectively.
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During the three months ended March 31, 2000 and 1999, the Company
paid $7,910 and $7,424 in rent to a related party for its office
space, respectively.
During 1999, the Company subleased two properties to related
parties. The Company recorded $19,160 and $-0- in rent income for
the three months ended March 31, 2000 and 1999, respectively.
NOTE 4 - NOTES PAYABLE
On December 31, 1999, the Company borrowed $33,715. The note has a
maturity date of December 31, 2000 and accrues interest at 12% per
annum, unsecured. At March 31, 2000, the unpaid principal balance
was $31,231. Interest expense amounted to $987 at March 31, 2000.
NOTE 5 - WEB SITE DEVELOPMENT
The Company is developing a web site to provide web site development
and hosting services as well as a news portal to the multi-level
marketing community including home businesses and second income
opportunity seekers. The web site was placed in service in March
2000 and is being amortized over a period of 60 months on the
straight-line basis. A total of $48,750 has been capitalized at
March 31, 2000. Amortization expense amounted to $801 at March 31,
2000.
NOTE 6 - PROPERTY AND EQUIPMENT
Property and equipment are recorded at cost. Major additions and
improvements are capitalized. Minor replacements, maintenance and
repairs that do not extend the useful life of the assets are
expensed as incurred. Depreciation of property and equipment is
determined using the
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
---------- ------------
<S> <C> <C>
Office equipment $ 8,208 $ 1,500
Software 6,000 -
Accumulated depreciation (510) (279)
-------- -------
$ 13,698 $ 1,221
======== =======
</TABLE>
Depreciation expense for the three months ended March 31, 2000 and
for the year ended December 31, 1999 was $232 and $279,
respectively.
NOTE 7 - ISSUANCE OF STOCK
During November 1998, the Company issued 10,200,000 shares of its
previously authorized but unissued common stock for cash of $10,200
(or $0.001 per share).
During December 1998, the Company issued 118,000 shares of it
previously authorized but unissued common stock for cash of $5,900
(or $0.05 per share).
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During January 1999, the Company issued 105,000 shares of its
previously authorized but unissued common stock for cash of $5,250
(or $0.05 per share).
During January 1999, the Company issued 23,600 shares of its
previously authorized but unissued common stock for cash of $1,180
(or $0.05 per share).
During January 1999, the Company issued 30,000 shares of its
previously authorized but unissued common stock for cash of $1,500
(or $0.05 per share).
During January 1999, the Company issued 105,000 shares of its
previously authorized but unissued common stock for cash of $5,250
(or $0.05 per share).
During January 1999, the Company issued 100,000 shares of its
previously authorized but unissued common stock for cash of $5,000
(or $0.05 per share).
During January 1999, the Company issued 40,000 shares of its
previously authorized but unissued common stock for cash of $2,000
(or $0.05 per share).
During January 1999, the Company issued 5,000 shares of its
previously authorized but unissued common stock for cash of $250 (or
$0.05 per share).
During February 1999, the Company issued 500,000 shares of its
previously authorized but unissued common stock for services of
$25,000 (or $0.05 per share).
During February 1999, the Company issued 5,000 shares of its
previously authorized but unissued common stock for cash of $250 (or
$0.05 per share).
During March 1999, the Company issued 25,000 shares of its
previously authorized but unissued common stock for services of
$1,250 (or $0.05 per share).
During October 1999, the Company issued 619 shares of its previously
authorized but unissued common stock for services of $31 (or $0.05
per share).
During November 1999, the Company issued 1,425 shares of its
previously authorized but unissued common stock for services of $71
(or $0.05 per share).
During December 1999, the Company issued 9,254 shares of its
previously authorized but unissued common stock for services of $463
(or $0.05 per share).
NOTE 8 - COMMITMENTS AND CONTINGENCIES
During November 1999, the Company entered into an agreement for web
site development. The agreement called for payment of $25,000 in
installments of 50% acceptance of the completed project. The Company
paid $6,250 toward this contract during the three months ended March
31, 2000.
NOTE 9 - LEASE COMMITMENT AND TOTAL RENTAL EXPENSE
The Company has leased property under a noncancellable operating
lease agreement which expires on May 31, 2004 and requires monthly
rentals of $3,957, plus yearly increases, plus 33.91% of the common
area operating expenses.
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The Company has subleased the building to another related party
company under a noncancellable agreement which expires on May 31,
2004 and requires monthly rentals of $3,957, plus yearly increases,
plus 33.91% of the common areas operating expenses.
The total minimum rental commitment at March 31, 2000 under the
lease is $215,101 which is due as follows:
<TABLE>
<CAPTION>
Year Amount
---- ----------------
<S> <C> <C>
2000 $ 36,618
2001 50,214
2002 51,941
2003 53,667
2004 22,661
---------------
Total $ 215,101
===============
</TABLE>
The preceding minimum rental commitment amounts have not been
reduced by the minimum rentals totaling $215,101 which are to be
received in the future under the sublease mentioned in the second
paragraph.
The total rental expense included in the income statement for the
three months ended March 31, 1999 and 1998 is $11,870 and $-0-,
respectively. The net rental expense, after deducting rental income
of $11,807 and $-0- from subleases, is $-0- and $-0-, respectively.
The Company was required to put a refundable security deposit of
$3,957 on the lease and required a security deposit on the sublease
for the same amount.
The Company has leased property under a noncancellable operating
lease agreement which expires on September 30 2009 and requires
monthly rentals of $2,430, plus yearly increases, plus approximately
$443 per month in common area operating expenses.
The Company has subleased the building to another related party
company under a noncancellable agreement which expires on September
30, 2009 and requires monthly rentals of $2,430, plus yearly
increases, plus approximately $443 per month in common area
operating expenses.
The total minimum rental commitment at March 31, 2000 under the
lease is $335,340 which is due as follows:
<TABLE>
<CAPTION>
Year Amount
---- ----------------
<S> <C> <C>
2000 $ 22,194
2001 30,780
2002 32,076
2003 33,372
2004 34,668
Thereafter 182,250
---------------
Total $ 335,340
===============
</TABLE>
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The preceding minimum rental commitment amounts have not been
reduced by the minimum rentals totaling $335,340 which are to be
received in the future under the sublease mentioned in the second
paragraph.
The total rental expense included in the income statement for the
three months ended March 31, 2000 and 1999 is $7,290 and $-0-. The
net rental expense, after deducting rental income of $7,290 and $-0-
from subleases is $-0- and $-0-, respectively.
The Company was required to put a refundable security deposit of
$2,430 on the lease and did not require a refundable security
deposit on the sublease.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
In its first quarter operating period ended March 31, 2000, the Company
incurred a net loss of $57,398.00 Sales revenues and operations during this
period were negligible. The primary contribution to the absence of significant
revenue was the dedication of the human resources of the Company in the building
of the infrastructure and the alliances required to implement the initiative set
forth by management in their marketing plan.
On March 13, 2000, the Company began limited operation of it's Internet
portal www.mlmwnt.com . The Company initiated a stealth launch providing limited
services to it's subscribers consisting of the News and information phase of
development only. The compelling Web Site is a FREE to subscribe real-time
global news and information source focusing on providing coverage of breaking
news, scheduled events, in-depth analysis, editorial content and original
reporting relative to the Network Marketing Industry. It is the goal of MLM
World News Today to provide the highest quality news and information to the
industry by fostering the development of information with truth and honesty and
a commitment to service in journalism through leadership and integrity.
To attract subscribers, the Company has developed a vast data base of
information consisting of facts about over 1,000 Companies worldwide who are
engaged in the Network marketing industry. By providing these free services to
it's subscribers, the Company is confident that it can harvest a meaningful user
data base of useful marketing information to promote the Company's revenue
generating services due for launch in early second quarter.
LIQUIDITY AND CAPITAL RESOURCES:
The Company working capital is very limited. During the quarter ended
March 31, 2000, the Company funded its operating losses with a loan of $ 113,456
from a related party. (Note 4)
Management believes the need for additional capital going forward will
be derived somewhat from the sale of services at their Website with major
revenues generated through e-commerce arrangement with Affiliate programs,
customizable co-branding of enhanced support services and the sales and
marketing of MLM programs acquired or started by the Company.
As of March 31, 2000, the Company does not have any available credit,
bank financing or other external source of liquidity. Since the Company is in a
development stage therefore, its operations have not been a source of liquidity.
In order to obtain additional capital, the Company may need to sell additional
shares of its common stock or borrow funds from private lenders and/or
management of the Company.
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It can be expected that the future operating results will continue to be
subject to many of the problems, expenses, delay and risks inherent in the
establishment of a new business enterprise, many of which the Company cannot
control. The Company has formulated its business plans and strategies based on
certain assumptions of the Company's management regarding the size of the market
for the service which the Company will be able to offer, the Company's
anticipated share of the market, and the estimated prices for and acceptance of
the Company's products. The Company continues to believe its business plan and
the assumptions upon which they are based are valid. Although these plans and
assumptions are based on the best estimates of management, there can be no
assurance that these assessments will prove to be correct. No independent
marketing studies have been conducted on behalf of or otherwise obtained by the
Company, nor are any such studies planned. Any future success that the Company
might enjoy will depend upon many factors, including factors which may be beyond
the control of the Company or which cannot be predicted at this time.
The net sales and income growth during this development period are
negligible due primarily to the focus of management on the on going development
of the Corporation's infrastructure. Management of the Company has been focused
on the development, design and creation of what it believes are exciting and
innovative solutions for individuals and companies who wish to capitalize on the
tremendous power and growth of the Internet. MLM World News Today, Inc. has
created an environment to support web site design and development; web site
hosting; Domain name registration; Internet services as their own ISP;
e-commerce; residential and small business communications; a Credit Restoration
Service and real-time media content format via one of the Internet's premier
multilevel and Network Marketing news and information sites called "MLM World
News Today" at www.mlmworldnewstoday.com and www.mmwnt.com.
The Company is currently trading on the "Pink Sheets" or the OTC - BB
under the symbol "MLMS."
MEMBER LOYALTY
As an enticement to building Web Site loyalty, the Company will offer
subscribers a variety of free services. Management of the Company believes that
providing these free services is critical to the initial attraction of new
subscribers. During this "Ramp-up" phase, utilization of the Site by subscribers
will require only registration and not be assessed a user fee. This will allow
the Company to begin building a substantial marketing database. Utilization of
this marketing database will subsequently allow the company to leverage its
member-developed content and attract an even larger audience of users. As a
first time user becomes familiar with the site and increases their visit
frequency, the Company believes it will have an enhanced ability to take
advantage of the word-of-mouth advertising inherent in the Network Marketing
Industry to expand it's subscriber base. Management is convinced that this will
exponentially perpetuate the growth of the site and thereby increase direct
revenues as well as e-commerce shared revenues.
SUBSCRIBER DEVELOPED CONTENT
A great deal of the News and information content of the Company's web site will
be developed by the users on a voluntary basis for the benefit of all users of
the site. As a result, the Company believes that it will be able to avoid the
majority of costs associated with this kind of content development. To assure
quality content, professional newswriters and editors have been engaged to
support the buildup of compelling content.
ATTRACTIVE MARKETING PLATFORM
The Company believes that its free services and extensive offerings will create
high volumes of traffic, enabling the Company to cost effectively promote their
MLM organization along with products and services on the Company's web site. The
Company also expects to be able to collect and provide valuable
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demographics information and affinity based member segmentation during
registration. This will increase the Company's ability to target marketing
campaigns. Further the Company believes that the potential diversity of Internet
groups among its members will create potential cross marketing thereby building
a broader range of products and services, resulting in a correspondingly broader
range of consumers.
Realization of significant revenues generated by the Company's products and
services during the Fiscal year ending December 31, 2000 is vital to its plan of
operation. To this end management is currently focused on the development of the
Companies MLM content-oriented Web Site and related services noted above.
As a result of the foregoing initiatives and focus, management of the Company
believes that the complete spectrum of services offered by MLM World News Today,
Inc. will provide a new opportunity for the Company to increase the
effectiveness of it's marketing campaigns. The cost of marketing over the
Internet is dramatically lower than those of traditional marketing techniques.
MLM World News Today, Inc. is singularly focused in the development of the
infrastructure required to bring the Company to a position of providing this
full range of Internet services for their subscribers.
CAUTIONARY FORWARD - LOOKING STATEMENT
Statements included in this Management's Discussion and Analysis of
Financial Condition and Results of Operations, and in future filings by the
Company with the Securities and Exchange Commission, in the Company's press
releases and in oral statements made with the approval of an authorized
executive officer which are not historical or current facts are "forward-looking
statements" made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995 and are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical earnings and those presently anticipated or projected. The Company
wishes to caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the date made.
YEAR 2000 ISSUES
As of March 31, 2000, the Company has upgraded its computer system to
resolve the year 2000 issues. The Company also confirmed with its major
independent suppliers and support providers that they are year 2000 compliant.
RISK FACTORS
Several of the matters discussed in this document contain
forward-looking statements that involve risks and uncertainties. Factors
associated with the forward-looking statements that could cause actual results
to differ materially from those projected or forecast appear in the statements
below. In addition to other information contained in this document, readers
should carefully consider the following cautionary statements and risk factors:
If we are unable to raise sufficient capital. Our future success depends
largely on the ability to secure additional capital funding. Required, product
development, technology advancement, employee recruitment and hiring, and
related essential operating expenses are all dependent on new and substantial
capital funding being secured. We cannot be certain that additional financing
will be available at the time we need additional funds or that, if available, it
can be obtained on terms that we deem favorable. If adequate capital funding
cannot be secured, we will have to curtail operations and our business will be
adversely affected. Additionally, the sale of stock to raise additional funds
may dilute our stockholders.
We have a limited relevant operating history upon which to evaluate the
likelihood of our success. Factors such as the risks, expenses and difficulties
frequently encountered in the operation and expansion of a relatively new
business and the development and marketing of new products must be considered in
evaluating the likelihood of success of our company.
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We have a history of losses and accumulated deficit and this trend of
losses may continue in the near future. For the period January 1, 2000 to March
31, 2000 we incurred a net loss of $73,878.11. For the fiscal year ended
December 31, 1999 we had a net loss of $101,212.36. At March 31, 2000 our
accumulated deficit was $175,085.47. Our ability to obtain and sustain
profitability will depend, in part, upon the successful development and
marketing of our existing products and technologies and the successful and
timely introduction of new products.
We will have to rapidly expand our capabilities, once capital
funding is secured, in order to successfully pursue our Internet marketing
strategy. Our capabilities will be expanded by combining internal staffing with
the formation of strategic partnerships and with the selection of outside
contractors. If we are either unable to identify or to secure these resources in
a timely fashion, our future results will be adversely affected.
If we are unable to retain and utilize key personnel. As an early stage
company, we are particularly dependent on a limited number of individuals to
execute our business plan. At present, all our officers and directors fall in to
the category of key individuals as each is counted upon for contributions to our
success.
If we are unable to manage our expansion and growth. We are planning to
expand the business very rapidly in order to entrench ourselves in, what we
believe is a very lucrative market. Effectively managing this expansion will be
very complex and require the addition of key management personnel as well as the
incorporation of management support systems. Either the failure to identify and
attract key managers or the delayed incorporation of required management support
systems will adversely affect our future financial results. The successful
recruitment of key managers and the timely installation of management support
systems are both largely dependent on our efforts to secure adequate capital
funding that is discussed above.
13
<PAGE> 14
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None
ITEM 2. CHANGES IN SECURITIES.
Not Required.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not Required.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None
14
<PAGE> 15
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.
MLM WORLD NEWS TODAY, INC.
Date: May 18, 2000 /S/ James C. Frans
------------------
By: James C. Frans
Its: President
Date: May 18, 2000 /S/ Robert L. Schultz
---------------------
By: Robert L. Schultz
Its: Secretary
Date: May 18, 2000 /S/ Paul A. Harbison
--------------------
By: Paul A. Harbison
Its: Chief Financial Officer
15
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