U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[x] Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 2000
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[ ] Transition Report under Section 13 or 15(d)of the Exchange Act For the
Transition Period from ________ to ___________
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Commission File Number: 0-26701
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eCom Corporation
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(Exact name of small business issuer as specified in its charter)
Nevada 88-0406874
- ------------------------------- ------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1776 Park Avenue, Unit #4, Park City, UT 84060
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(Address of principal executive offices)
(801) 580-2855
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(Issuer's telephone number)
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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 such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [ ] No [X]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS
Check whether the Registrant filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Exchange Act
after the distribution of securities under a plan confirmed by a court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
1
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The Registrant has 17,437,450 shares of Common stock issued and
outstanding, par value $.001 per share as of March 31, 2000. The
Registrant has no Preferred Stock issued nor outstanding as of March
31, 2000.
Traditional Small Business Disclosure Format (check one)
Yes [ ] No [X]
2
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements................................. 3
CPA Review Letter.................................... 4
Balance Sheet (unaudited)............................ 5
Statements of Operations (unaudited)................. 6
Statements of Cash Flows (unaudited)................. 7
Notes to Financial Statements........................ 8-11
Item 2. Management's Discussion and Analysis of Plan
of Operation........................................ 11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.................................... 16
Item 2. Changes in Securities and Use of Proceeds............ 16
Item 3. Defaults upon Senior Securities...................... 16
Item 4. Submission of Matters to a Vote
of Security Holders................................. 16
Item 5. Other Information..................................... 16
Item 6. Exhibits and Reports on Form 8-K...................... 16
Signatures...................................................... 17
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS AND EXHIBITS
(a) The unaudited financial statements of registrant for the three
months ended March 31, 2000, follow. The financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period
presented.
3
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G. BRAD BECKSTEAD
Certified Public Accountant
330 E. Warm Springs
Las Vegas, NV 89119
702.528.1984
425.928.2877 (efax)
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
Board of Directors
Ecom, Inc.
Las Vegas, NV
I have reviewed the accompanying balance sheet of Ecom, Inc. (a development
stage company) as of March 31, 2000 and the related statements of income and
cash flows for the three-months ended March 31, 2000, and October 18, 1998
(Date of Inception) to March 31, 2000. These financial statements are the
responsibility of the Company's management.
I conducted my reviews in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data, and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, which will be performed
for the full year with the objective of expressing an opinion regarding the
financial statements taken as a whole. Accordingly, I do not express such an
opinion.
Based on my reviews, I am not aware of any material modifications that should be
made to the accompanying financial statements referred to above for them to be
in conformity with accounting principles generally accepted in the United
States.
/s/ G. Brad Beckstead, CPA
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May 9, 2000
Las Vegas, Nevada
License #2701
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eCom Corporation
(a Development Stage Company)
Balance Sheet
December 31, 1999 and March 31, 2000
<TABLE>
<CAPTION>
BALANCE SHEET
Assets
Unaudited Audited
---------------------------
March 31 December 31
2000 1999
--------------------------
<S> <C> <C>
Current assets:
Cash $ 10,000 $ 41
-------- ---------
Total current assets 10,000 41
Other assets: 0 0
-------- ---------
Organization costs (net) 0 0
-------- ---------
Total other assets $ 10,000 $ 41
======== =========
Total Assets
Liabilities and Stockholders' Equity
Current liabilities:
Payroll taxes payable $ 1,053 $ 1,053
-------- ---------
Total current liabilities 1,053 1,053
Long-term debt 0 0
-------- ---------
Total Liabilities 1,053 1,053
-------- ---------
Stockholders' Equity:
Common stock, $0.001 par value,
20,000,000 shares authorized;
17,437,450 shares issued and
outstanding 17,437 17,437
Preferred stock, $0.001 par value,
5,000,000 shares authorized; no
shares issued and outstanding 0 0
Additional paid-in capital 149,308 149,308
Subscriptions receivable (120,000) (120,000)
Deficit accumulated during development stage (37,798) (47,757)
--------- ----------
Total Stockholders' Equity (1,053) (1,012)
--------- ----------
Total Liabilities and Stockholders' Equity $ 10,000 $ 41
========= ==========
</TABLE>
See Independent Accountant's Review Report and Notes to Financial Statements.
5
<PAGE>
eCom Corporation
(a Development Stage Company)
Income Statement
For the Period
October 6, 1998 (Date of Inception) to March 31, 2000
And For the Quarter
Ended March 31, 2000
<TABLE>
<CAPTION>
INCOME STATEMENT
Unaudited Unaudited
Quarter October 6, 1998
Ended (Date of Inception)
March 31 to March 31,
2000 2000
-------------------------------------
<S> <C> <C>
Revenue $ 0 $ 8,985
General Administrative
Expenses 41 56,783
Other income:
Interest 10,000 10,000
----------- -----------
Net income or (loss) $ 9,959 $ (37,798)
=========== ===========
Weighted average
number of common
shares outstanding 17,437,450 17,437,450
Net loss per share $ 0 $ 0
=========== ===========
</TABLE>
See Independent Accountant's Review Report and Notes to Financial Statements.
6
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eCom Corporation
(a Development Stage Company)
Statement of Cash Flows
Quarter ended March 31, 2000 (Unaudited)
and For the Period
October 8, 1998 (Date of Inception) to March 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
STATEMENT OF CASH FLOWS
Unaudited Unaudited
-----------------------------------
Quarter October 6, 1998
Ended (Date of Inception)
March 31, to March 31,
2000 2000
-----------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income or (loss) $ 9,959 $ (37,798)
Amortization
Adjustments to reconcile
net income to net cash used
by operating activities:
(Increase) decrease in:
Organizational costs 0
Increase (decrease) in:
Payroll taxes payable 1,053
---------- -----------
Net cash provided (used) by
operating activities 9,959 (36,745)
CASH FLOWS FROM INVESTING
ACTIVITIES
Net cash (used) by
investing activities 0 0
---------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES
Issuance of capital stock 166,745
Installment note -
Subscriptions receivable (120,000)
---------- ----------
Net cash provided by
financing activities 0 46,745
---------- ----------
Net(decrease) increase in cash 10,000
Cash - beginning 41 0
---------- ---------
Cash-ending $ 10,000 $ 10,000
========== ===========
Supplemental disclosures:
Interest paid $ 0 $ 0
========== ==========
Income taxes paid 0 0
========== ===========
Non cash investing and
financing activities:
Common stock issued in
exchange for services
rendered - $ 10,000
Common stock issued in
exchange for installment
note - 120,000
---------- ----------
Total noncash investing
and financing activities - $ 130,000
========== ==========
</TABLE>
See Independent Accountant's Review Report and Notes to Financial Statements.
7
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eCom Corporation
(A Development Stage Company)
Notes to Financial Statements
Note 1 - History and Organization of the Company
The Company was organized on October 8, 1998 (Date of Inception) under the laws
of the State of Nevada, eCom Corporation. The Company has minimal operations
and in accordance with SFAS #7, the Company is considered a development stage
company. The Company is authorized to issue 20,000,000 shares of $0.001 par
value common stock and 5,000,000 shares of $0.001 par value preferred stock.
Note 2 - Summary of Significant Accounting Policies
Accounting policies and procedures have not been determined except as follows:
1. The Company uses the accrual method of accounting.
2. 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 revenue and expenses
during the reporting period. Actual results could differ significantly
from those estimates.
3. The Company maintains a cash balance in a non-interest-bearing bank that
currently does not exceed federally insured limits. For the purpose of
the statements of cash flows, all highly liquid investments with the
maturity of three months or less are considered to be cash equivalents.
There are no cash equivalents as of March 31, 2000.
4. Earnings per share (EPS) is computed using the weighted average number of
shares of common stock outstanding during the period. Diluted EPS is
computed by dividing net income by the weighted average shares
outstanding, assuming all dilutive potential common shares were issued.
Since the Company has no common shares that are potentially issuable, such
as stock options, convertible preferred stock and warrants, basic and
diluted EPS are the same. The Company had no dilutive common stock
equivalents such as stock options as of March 31, 2000.
5. The Company has not yet adopted any policy regarding payment of dividends.
No dividends have been paid since inception.
6. The Company will review its need for a provision for federal income tax
after each operating quarter and each period for which a statement of
operations is issued.
7. The Company has adopted December 31 as its fiscal year end.
Note 3 - Subscriptions Receivable
Subscriptions receivable represents a $120,000 installment note receivable for
stock issued. The note bears an interest rate of 10%, with one interest
payment of $12,000 due on March 15, 2000 and one principal payment of $120,000
due on December 16, 2000. The note is unsecured and, if not collected, the
common stock and additional paid-in capital accounts will be reduced
accordingly.
8
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eCom Corporation
(A Development Stage Company)
Notes to Financial Statements
Note 4 - Income Taxes
Income taxes are provided for using the liability method of accounting in
accordance with Statement of Financial Accounting Standards No. 109 (SFAS #109)
"Accounting for Income Taxes". A deferred tax asset or liability is recorded
for all temporary differences between financial and tax reporting. Deferred
tax expenses (benefit) results from the net change during the year of deferred
tax assets and liabilities.
There is no provision for income taxes for the year ended December 31, 1999,
due to the net loss and no state income tax in Nevada.
Note 5 - Stockholders' Equity
On October 8, 1998 the company issued 3,230,000 shares of its $0.001 par value
common stock to a former director for cash in the amount of $6,000.
On February 1, 1999, the Company initiated a public offering of securities
pursuant to Regulation D, Rule 504 of the Securities Act of 1933, as amended,
and exemptions from state registration pursuant to various state security
transactional exemptions. The Company sold 207,450 shares of Common Stock at a
price of $0.10 per share for a total cash amount raised of $20,745.
On May 3, 1999, pursuant to Regulation D, Rule 504 of the Securities Act of
1933, as amended, the Company sold 1,000,000 shares of Common Stock for a cash
price of $0.01 per share for a total amount raised of $10,000.
On May 3, 1999, the Company issued 1,000,000 shares of Common Stock to a former
director in exchange for services worth $10,000 at the rate of $0.01 per share.
On December 17, 1999, the Company issued 12,000,000 shares of Common Stock in
exchange for an installment note receivable.
There have been no other issuances of common or preferred stock.
Note 6 - Going Concern
The Company's financial statements are prepared using the generally accepted
accounting principles applicable to a going concern, which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. However, the Company has not commenced its planned principal
operations. Without realization of additional capital, it would be unlikely
for the Company to continue as a going concern.
The officers and directors are involved in other business activities and may,
in the future become involved in other business opportunities. If a specific
business opportunity becomes available, such persons may face a conflict in
selecting between the Company and their other business interests. The Company
has not formulated a policy for the resolution of such conflicts.
Note 7 - Related Party Transactions
The Company does not lease or rent any property. Office services are provided
without charge by a director. Such costs are immaterial to the financial
statements and, accordingly, have not been reflected therein.
Note 8 - Warrants and Options
There are no warrants outstanding to acquire any additional shares of common
stock.
9
<PAGE>
eCom Corporation
(A Development Stage Company)
Notes to Financial Statements
Note 9 - Year 2000 Issue
The Year 2000 issue arises because many computerized systems use two digits
rather than four to identify a year. Date-sensitive systems may recognize the
year 2000 as 1900 or some other date, resulting in errors when information
using year 2000 dates is processed. In addition, similar problems may arise
in systems which use certain dates in 1999 to represent something other than a
date. The effects of the Year 2000 issue may be experienced before, on, or
after January 1, 2000, and if not addressed, the impact on operations and
financial reporting may range from minor errors to significant system failure
which could affect an entity's ability to conduct normal business operations.
It is not possible to be certain that all aspects of the Year 2000 issue
affecting the entity, including those related to the efforts of customers,
suppliers, or other third parties will be fully resolved.
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<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATIONS
eCom Corporation, hereinafter referred to as the ("Company") or ("eCom")
is a developmental stage company with a principal business objective to
provide reliable and cost efficient business Internet connectivity in the form
of "website packages" for the business-to-business sector to use as
rewards, coupons, or rebates. The Company's focus will be to provide reliable
and cost efficient Internet connectivity and other enhanced, easy-to-use
Internet services for small-to-medium-sized businesses. The growth of the
Internet has accelerated the price sensitivity and commodity nature of this
market. Industry analysts expect the size of the online market segment to grow
rapidly as businesses increase their use of the Internet as a business
marketing tool.
Marketing services as offered by the Company include the various components
critical to a website's success; marketing in search engines with
gateway sites, the utilization of metatags and creation of reciprocating links
between websites. Additionally, the Company intends on marketing via e-mail
with opt-in email lists -for example, the creation of a form for our clients
to have on their websites which enables the end user to complete and send
to the marketing department to be included on future mailings. Marketing
via satellite sites-separate websites for each of core service area. eCom
assists clients in executing these services as well as providing marketing
assistance in the integration of traditional media types.
The Company plans to offer packages to business-to-business marketers
who then may distribute the packages in the form of rebates, coupons and
rewards. This distribution program will work much like the airlines and
their partnerships with long distance companies (another highly commoditized
area).
This helps off-set two of the primary difficulties of advertising a
technology product - distribution and complex message. The distribution
component seeks to utilize the relationships of the eCom package
customers to build eCom's total customer account base. The package
customers will purchase these internet monthly website packages to give
them a boost in their own competitive environment whether it is printing,
advertising sales, travel companies, pharmaceutical sales, etc.
Additionally, this approach blends into serving the web designer market.
The typical web designer manages from 3 to 50 accounts. By creating a
package that is easy to buy, the web designer can concentrate on selling
their creative services.
The Company seeks to solve the complex message problem by using a
"website packaging" approach, which uses the package client to pass
along the rewards, coupons or rebates to their customers - explaining
the product as required. eCom intends to provide the necessary marketing
collateral for each package client to help present the program.
Going Concern - The Company's financial statements are prepared using
the generally accepted accounting principles applicable to a going concern,
which contemplates the realization of assets and liquidation of
liabilities in the normal course of business. However, the Company has
not commenced its planned principal operations. Without realization of
additional capital, it would be unlikely for the Company to continue as
a going concern.
The officers and directors are involved in other business activities
and may, in the future become involved in other business opportunities.
If a specific business opportunity becomes available, such persons may
face a conflict in selecting between the Company and their other business
interests. The Company has not formulated a policy for the resolution of
such conflicts.
Unclassified Balance Sheet - In accordance with the provisions of SFAS
No. 53, the Company has elected to present an unclassified balance sheet.
11
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Earnings per share (EPS) is computed using the weighted average number
of shares of common stock outstanding during the period. Diluted EPS is
computed by dividing net income by the weighted average shares
outstanding, assuming all dilutive potential common shares were issued.
Since the Company has no common shares that are potentially issuable,
such as stock options, convertible preferred stock and warrants, basic and
diluted EPS are the same. The Company had no dilutive common stock
equivalents such as stock options as of December 31, 1999.
The Company has not pursued or explored any opportunities for an
acquisition or merger. This does not preclude that the Company may not
explore any opportunities in the future.
Results of Operations
As a developmental stage Company, the Company did not generate any
revenues. In addition, the Company does not expect to generate any
significant revenues over the next approximately to twelve (12) months.
During the First Quarter, the Company experienced net losses $41
against no revenues. These expenses were for minor miscellaneous costs
incurred during Quarter. The Company does not have any material commitments
for capital expenditures.
Plan of Operation
(1) During the First Quarter operating period ended March 31, 2000,
the Company incurred a net loss of $41 for minor miscellaneous costs. In
addition, the Company did not generate any revenues from operations through
March 31, 2000.
On October 8, 1998, founding shareholders purchased 3,230,000 shares of
the Company's authorized treasury stock for cash. Additionally, on February
1, 1999, the Company completed a direct public offering of 207,450 shares
of the Common Stock of the Company to approximately fifty-seven (57)
unaffiliated shareholders. This offering was made in reliance upon an
exemption from the registration provisions of Section 4(2) of the Securities
Act of 1993 (the "Act"), as amended, pursuant to Regulation D, Rule 504 of
the Act.
On May 3, 1999, pursuant to Regulation D, Rule 504, of the Securities
Act of 1933 as amended, the Company sold to an unaffiliated shareholder
of record 1,000,000 Shares of Common Stock for cash at a price of $.01 per
share for a total amount raised of $10,000.00.
On May 3, 1999, the Company issued 1,000,000 Shares of Common Stock to
a Director in exchange for services worth $10,000.00 at the rate of
$0.01.
As of the date of this filing, the Company has approximately seventeen
million four hundred thirty-seven thousand four-hundred and fifty
(17,437,450) shares of its $0.001 par value common voting stock issued
and outstanding which are held by approximately fifty-nine (59)
shareholders of record. Management anticipates that the proceeds from
financing transactions delineated above will be sufficient to provide for
the Company's capital needs for the next approximately three (3) to six (6)
months.
12
<PAGE>
In addition, management of the Company believes that the need for
additional capital going forward will be derived somewhat from internal
revenues and earnings generated from the sale of its products and services.
If the Company is unable to begin to generate more revenues from its current
products and services than it has to date, however, management believes the
Company will need to raise additional funds to meet its cash requirements. In
the mean time, management of the Company plans to advance funds to the Company
on an as-needed basis although there are no definitive or legally binding
arrangements to do so. The Company currently has no arrangements or
commitments for accounts and accounts receivable financing. There can
be no assurance that any such financing can be obtained or, if obtained, that
it will be on reasonable terms.
The Company believes that its initial revenues will be primarily
dependent upon the number of customers it has, the number of web sites
that it hosts, and the marketing-related products and services each of those
customers currently purchases from eCom.
Realization of significant sales of the Company's products and services
during the fiscal year ending December 31, 1999 is vital to its plan of
operations. To this end, management is currently executing its strategy
as previously delineated in this Registration Statement.
Management believes that the Company's future growth and success
will be largely dependent on its ability to expand its customer base,
convince its existing and future customer base to purchase the
Company's marketing-oriented products and services that help to market and
promote a customer's web site, develop additional product and service
offerings that will expand the Company's revenue base, and deepen and
broaden eCom's market presence by acquiring or partnering with other
business-focused ISP's.
There are no definitive or legally binding arrangements for management to
provide liquidity now or in the future for the Company. There are
likewise, no such arrangements with any other parties.
13
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Liquidity and Capital Resources
On February 1, 1999, the Company completed a direct public offering of
shares of common stock of the Company pursuant to Regulation D, Rule 504, of
the Securities Act of 1933, as amended, whereby it sold 207,450 shares of
the Common Stock of the Company to 57 unaffiliated shareholders of record.
The purchase price of the shares for each shareholder was $0.10 or ten
cents. The Company filed an original Form D with the Securities and
Exchange Commission on or about December 15, 1998, and an amended, final
Form D with the Securities and Exchange Commission on or about February 15,
1999. Mr. Anthony Mello and Mr. Bert Blevins on May 1st acquired 1,000,000
shares a piece at price of $0.01 per share for a total capital investment of
$20,000. On December 13, 1999, a Buying Group, lead by CashCom Services
Corporation, a Canadian Corporation, acquired 2,000,000 shares of eCom
Corporation's common stock, pursuant to an Share Purchase Agreement by and
between Janeva Corp. and Campbell Mello Associates Corporation The Buying
Group paid to Janeva Corporation and Campbell Mello Associates Corporation
the sum of two hundred ninety thousand dollars ($290,000.00) for the common
shares. The source of the funds was paid by cash wire transfer. eCom
Corporation, in reliance upon an exemption from the registration provided in
the Securities Act of 1993, as amended, pursuant to Regulation D, Rule 506,
of the Act, issued 12,000,000 restricted shares of its common stock, on
December 17, 1999, at one (1) cent per share for a Note which totaled one
hundred twenty thousand ($120,000) dollars, along with interest in the amount
of ten (10) percent. The restricted stock was sold to Lori Bird.
The Company has no material commitments for capital expenditures nor
does itforesee the need for such expenditures over the next year.
The Company has limited financial resources available, which has had an
adverse impact on the Company's liquidity, activities and operations.
These limitations have adversely affected the Company's ability to obtain
certain projects and pursue additional business. There is no assurance that
the proceeds of the Company will be able to raise sufficient funding to
enhance the Company's financial resources sufficiently to generate volume for
the Company.
The Company currently has one (1) employee: one President. The Company
has no intention at this time to add employees.
The Company's performance is substantially dependent on the
performance of its corporate secretary, Ian Archibald. In particular, the
Company's success depends on his ability to develop, design and create
strategies for the company. The loss of the services of any of its executive
officer could have a material adverse effect on the business, results of
operations and financial condition of the Company. The Company's
future success also depends on its ability to retain and attract highly
qualified technical and managerial personnel.
14
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Market For Company's Common Stock
Until October 27, 1999, there was no public trading market for the
Company's stock. On that day the Company's common stock was cleared for
trading on the OTC Bulletin Board system under the symbol ECCM. A very
limited market exists for the trading of the Company's common stock.
The approximate number of holders of record of common stock as of
March 31, 2000 was fifty-seven (57).
Dividends
- ---------
Holders of common stock are entitled to receive such dividends as the
board of directors may from time to time declare out of funds legally
available for the payment of dividends. No dividends have been paid on our
common stock, and we do not anticipate paying any dividends on our common
stock in the foreseeable future.
There is currently no Common Stock which is subject to outstanding
options or warrants to purchase, or securities convertible into, the
Company's common stock.
Forward-Looking Statements
This Form 10-QSB includes "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical facts, included or incorporated by reference in this
Form 10-QSB which address activities, events or developments which the Company
expects or anticipates will or may occur in the future, including such things as
future capital expenditures (including the amount and nature thereof), finding
suitable merger or acquisition candidates, expansion and growth of the Company's
business and operations, and other such matters are forward-looking statements.
These statements are based on certain assumptions and analyses made by the
Company in light of its experience and its perception of historical trends,
current conditions and expected future developments as well as other factors it
believes are appropriate in the circumstances. However, whether actual results
or developments will conform with the Company's expectations and predictions is
subject to a number of risks and uncertainties, general economic market and
business conditions; the business opportunities (or lack thereof) that may be
presented to and pursued by the Company; changes in laws or regulation; and
other factors, most of which are beyond the control of the Company.
This Form10-QSB contains statements that constitute "forward-looking
statements." These forward-looking statements can be identified by the use of
predictive, future-tense or forward-looking terminology, such as "believes,"
"anticipates," "expects," "estimates," "plans," "may," "will," or similar
terms. These statements appear in a number of places in this Registration and
include statements regarding the intent, belief or current expectations of
the Company, its directors or its officers with respect to, among other
things: (i) trends affecting the Company's financial condition or results of
operations for its limited history; (ii) the Company's business and growth
strategies; (iii) the Internet and Internet commerce; and, (iv) the Company's
financing plans. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance and involve significant
risks and uncertainties, and that actual results may differ materially from
those projected in the forward-looking statements as a result of various
factors. Factors that could adversely affect actual results and performance
include, among others, the Company's limited operating history, dependence
on continued growth in the use of the Internet, the Company's inexperience
with the Internet, potential fluctuations in quarterly operating results and
expenses, security risks of transmitting information over the Internet,
government regulation, technological change and competition.
Consequently, all of the forward-looking statements made in this Form 10-QSB
are qualified by these cautionary statements and there can be no assurance
that the actual results or developments anticipated by the Company will be
realized or, even if substantially realized, that they will have the expected
consequence to or effects on the Company or its business or operations. The
Company assumes no obligations to update any such forward-looking statements.
15
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PART II OTHER INFORMATION
ITEM 1. Legal Proceedings
As of the date hereof, eCom Corporation is not a party to any material
legal proceedings, and none are known to be contemplated against eCom,
Inc.
ITEM 2. Changes in Securities and Use of Proceeds
None.
ITEM 3. Defaults upon Senior Securities
None.
ITEM 4. Submission of Matters to a Vote of Security Holders
During the quarter ended March 31, 2000, no matters were submitted to
the Company's security holders.
ITEM 5. Other Information
None.
ITEM 6. Exhibits and Reports on Form 8-K
eCom Corporation filed one Form 8-K during the fiscal year ended
December 31, 1999. The Current Report, dated December 17, 1999 on Form 8-K
containing information pursuant to Item 1, "Changes in Control of Registrant,"
pursuant to Item 5, "Other Materially Important Events," pursuant to Item 6,
"Resignations of Registrant's Director's." These changes have been
reflected in this Form 10KSB filing. eCom also filed a Current Report, dated
March 20, 2000, on Form 8-K containing information pursuant to Item 4 ("Changes
in Accountants") entitled "Changes in Registrant's Certifying Account."
(See Item 8 above, entitled, "Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure."
16
<PAGE>
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.
eCom Corporation
(Registrant)
Dated: May 10, 2000
/s/ Ian Archibald
- -----------------------
Ian Archibald
President and Chief Executive Officer
17
<PAGE>
G. BRAD BECKSTEAD
Certified Public Accountant
330 E. Warm Springs
Las Vegas, NV 89119
702.528.1984
425.928.2877 (efax)
May 9, 2000
To Whom It May Concern:
The firm of G. Brad Beckstead, CPA, consents to the inclusion of my report of
May 9, 2000, on the Financial Statements of Ecom, Inc. for the quarter ended
March 31, 2000, in any filings which are necessary now or in the near future to
be filed with the US Securities and Exchange Commission.
Signed,
/s/ G. Brad Beckstead, CPA
Nevada License #2701
<PAGE>
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET, THE STATEMENT OF OPERATIONS, AND THE STATEMENT OF CASH FLOWS
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 10,000
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 10,000
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 10,000
<CURRENT-LIABILITIES> 1,053
<BONDS> 0
0
0
<COMMON> 17,437
<OTHER-SE> (8,490)
<TOTAL-LIABILITY-AND-EQUITY> 10,000
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 41
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (37,798)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37,798)
<EPS-BASIC> (0.00)
<EPS-DILUTED> (0.00)
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