UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE 1934
ACT REPORTING REQUIREMENTS
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000 Commission File No.
000-29477
10
REMOTE UTILITIES NETWORK, INC.
(Exact name of registrant as specified in its charter)
Nevada 86-088251
(State of organization) (I.R.S. Employer Identification No.)
995 S. Virginia St., Suite 116, Reno, NV 89502
(Address of principal executive offices)
Registrant's telephone number, including area code (775) 322-7552
Check whether the issuer (1) filed all reports required to be
file by Section 13 or 15(d) of the Exchange Act during the past
12 months and (2) has been subject to such filing requirements
for the past 90 days. Yes X
As of June 30, 2000, there were 13,700,000 shares of common stock
outstanding.
REMOTE UTILITIES NETWORK, INC.
(A Development Stage Company)
INDEX
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Page #
PART I FINANCIAL INFORMATION
Item 1 Financial Statements
Condensed Balance Sheets as of June 30, 2000 and December 3
31, 1999
Condensed Statements of Operations for the Six Months ended
June
30, 2000 and 1999, and for the Three Months ended June 30,
2000
and 1999 and from inception January 22, 1996 to June 30, 4
2000.
Condensed Statements of Cash Flows for the Six Months ended
June 30,
2000 and 1999 and from inception January 22, 1996 to June 5
30, 2000.
Notes to Financial Statements as at June 30, 2000 6 - 9
Item 2 Management's Discussion and analysis of Financial
condition
and results of operations. 10
PART II OTHER INFORMATION 11
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REMOTE UTILITIES NETWORK, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
BALANCE SHEETS
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June 30, December 31,
2000 1999
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $48,671 $1
--------- --------
Total Current Assets 48,671 1
--------- --------
INTANGIBLE ASSETS, net of amortization of
$0 72,000 72,000
--------- --------
TOTAL ASSETS $120,671 $72,001
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES - accounts payable $3,330 $3,000
Due to shareholders 39,745 (44,900)
--------- ---------
Total Current Liabilities 43,075 (41,900)
STOCKHOLDERS' EQUITY:
Preferred Stock, $0.001 Par Value;
5,000,000 shares authorized
0 shares issued and outstanding
Common stock, $0.001 par value;
20,000,000 shares authorized;
13,700,000 shares issued and 13,700 13,700
outstanding
Additional paid-in capital 105,300 105,300
Deficit accumulated during the
development stage (41,404) (5,099)
---------- ----------
Total Stockholders' Equity 77,596 113,901
---------- ----------
TOTAL 'LIABILITIES AND STOCKHOLDERS'
EQUITY' $120,671 $72,001
========== =========
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* See accompanying notes to Financial Statements.
3
REMOTE UTILITIES NETWORK, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
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During the
Development
Stage
For the Six months For the Three months Jan. 22, 1996
Ending June 30, Ending June 30, to June 30,
2000 1999 2000 1999 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUE $0 $0 $0 $0 $0
GENERAL, SELLING AND
ADMINISTRATIVE
EXPENSES 36,305 18 36,305 18 41,404
----------- ---------- ---------- --------- ----------
LOSS BEFORE TAXES 36,305 18 36,305 18 41,404
PROVISION FOR INCOME TAXES 0 0 0 0 0
----------- ---------- ---------- --------- ----------
NET LOSS $36,305 $18 $36,305 $18 41,404
=========== ========== ========== ========= ==========
BASIC & DILUTED LOSS PER SHARE 0.0027 0 0.0027 0 0.011
WEIGHTED AVERAGE SHARE
Outstanding - BASIC & DILUTED 13,700,000 4,286,111 13,700,000 6,500,000 4,703,186
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* See accompanying notes to Financial Statements.
4
REMOTE UTILITIES NETWORK, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOW
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Cumulative
During the
Development
Stage
For the Six months Jan. 22, 1996
Ending June 30, to June 30,
2000 1999 2000
(Unaudited) (Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Loss $36,305 $18 $41,404
Adjustment to reconcile net loss to
net
cash used in operating activities:
Increase in accounts payable 330 3,330
NET CASH USED IN OPERATING --------- -------- --------
ACTIVITIES (35,975) (18) (38,074)
--------- --------- --------
Advances from shareholder 84,645 39,745
Issuance of common stock for cash 47,000
NET CASH PROVIDED BY FINANCING --------- --------- --------
ACTIVITIES 84,645 0 86,745
--------- --------- --------
NET CHANGES IN CASH AND CASH --------- -------- --------
EQUIVALENTS 48,670 (18) 48,671
CASH AND CASH EQUIVALENTS -
beginning of period 1 0 8
CASH AND CASH EQUIVALENTS - --------- --------- --------
end of period $48,671 $(18) 48,671
========= ========= ========
SUPPLEMENTAL CASH FLOW
INFORMATION
Cash paid during the year -
Interest 0 0 0
========= ========= ========
Income taxes 0 0 0
========= ========= ========
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* See accompanying notes to Financial Statements.
5
REMOTE UTILITIES NETWORK, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
NOTE 1 - DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING
POLICIES
General
The accompanying unaudited consolidated financial
statements have been prepared in accordance with the
instructions to Form 10-QSB, and therefore, do not
include all the information necessary for a fair
presentation of financial position, results of
operations and cash flows in conformity with generally
accepted accounting principles.
In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.
Operating results for the six month period ended June
30, 2000 are not necessarily indicative of the results
that may be expected for the year ended December 31,
2000. The unaudited condensed financial statements
should be read in conjunction with the consolidated
financial statements and footnotes thereto included in
the Company's December 31, 1999 annual report in SEC
Form 10-SB.
Nature of Operations
Remote Utilities Network, Inc. ("Company")
(formerly Alexander-West, Inc.) is currently a
development stage company under the provisions of
Statement of Financial Accounting Standards ("SFAS") No.
7. In March 1999, the Company changed its name from
Alexander-West, Inc. to its current name. The Company
was incorporated under the laws of the State of Nevada
on January 22, 1996. Management is currently developing
a business plan to market certain products that they are
entitled to distribute and sell under its current
licensing agreement (See Note 3 - Intangible Assets).
Basis of Presentation
The accompanying financial statements have been
prepared in conformity with generally accepted
accounting principles, which contemplate continuation of
the Company as a going concern. However, the Company has
no established source of revenue. This matter raises
substantial doubt about the Company's ability to
continue as a going concern. Without realization of
additional capital, it would be unlikely for the Company
to continue as a going concern. These financial
statements do not include any adjustments relating to
the recoverability and classification of recorded asset
amounts, or amounts and classification of liabilities
that might be necessary should the Company be unable to
continue in existence. Management plans to take the
following steps that it believes will be sufficient to
provide the Company with the ability to continue in
existence:
6
REMOTE UTILITIES NETWORK, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
Generate sales from the marketing of the product under
its licensing agreement.
Contemplating a private placement for the sale of
shares of the Company's common stock.
Contemplating a line of credit with an established
financial institution.
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 these financial
statements and the reported amounts of revenue and
expenses during the reporting period. Actual results
could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid
investments purchased with original maturities of
three months or less to be cash equivalents.
Concentration of Credit Risk
The Company places its cash in what it believes
to be credit-worthy financial institutions. However,
cash balances may exceed FDIC insured levels at
various times during the year.
Intangible Assets
Intangible assets consist of the Company's costs
for the purchase of its licensing agreement. The costs
are being amortized over the life of the agreement,
which is ten years, once sales activities commence.
Loss Per Share
During 1998, the Company adopted SFAS No. 128,
"Earnings Per Share," which requires presentation of
basic loss per share ("Basic LPS") and diluted loss
per share ("Diluted LPS"). The computation of Basic
LPS is computed by dividing loss available to common
stockholders by the weighted average number of
outstanding common shares during the period. Diluted
LPS gives effect to all diluted potential common
shares outstanding during the period. The computation
of Diluted LPS does not assume conversion, exercise
or contingent exercise of securities that would have
an antidilutive effect on earnings. As of June 30,
2000 and 1999, the Company had no potentially dilutive
securities.
7
REMOTE UTILITIES NETWORK, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
Comprehensive Income
In June 1998, the Financial Accounting Standards
Board issued SFAS No. 130, "Reporting Comprehensive
Income", which establishes standards for the reporting
and display of comprehensive income and its components
in the financial statements. As of June 30, 2000 and
1999, the Company has no
items that represent comprehensive income and,
therefore, has not included a schedule of
comprehensive income in the accompanying financial
statements.
Income Taxes
Income taxes are provided for based on the
liability method of accounting pursuant to SFAS No.
109, "Accounting for Income Taxes". Deferred income
taxes, if any, are recorded to reflect the tax
consequences on future years of differences between
the tax bases of assets and liabilities and their
financial reporting amounts at each year-end.
Impact of Year 2000 Issue
As of June 30, 2000, the Company does not have any
computer systems or customers and suppliers.
Therefore, the issue of the year 2000 has no effect on
the Company's current activities.
NOTE 2 - RELATED PARTY TRANSACTIONS
Office and Administrative Expenses
The Company neither owns nor leases any real or
personal property. A stockholder provides office
services without charge. Such costs are immaterial to
the financial statements and, accordingly, have not
been reflected therein.
Advances from Stockholder
Advances from stockholder as of June 30, 2000,
consist of $39,745 non-interest bearing advances from
the majority stockholder to pay for Legal and
Administrative expenses.
NOTE 3 - INTANGIBLE ASSETS
In June 1999, the Company entered into a 10-year
license agreement with a company that the current
management has a minority common stock ownership. The
license agreement is for the manufacturing and
marketing of Autoeye Multi-Vehicle Surveillance
System ("AMVSS), which is to be marketed to automotive
dealerships. In August 1999, the Company's Board of
Directors approved the issuance of 7,200,000 shares of
the Company's common stock as payment for the license
agreement. In accordance with SFAS No. 123
"Accounting for Stock-Based Compensation", the stock
was valued at $72,000, or $0.01 per share, which is
the fair market value of the shares based on
8
REMOTE UTILITIES NETWORK, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
the per share price received from the Company's
private placement completed on March 31, 1999.
NOTE 4 - STOCKHOLDERS' EQUITY
The aggregate number of stock that the Company
has authority to issue is 25,000,000 shares, of which
20,000,000 shares shall be common stock at a par value
of $0.001 and 5,000,000 shares shall be preferred
stock at a par value of $0.001.
The Board of Directors shall have the authority
from time to time to divide the preferred shares into
series and to fix by resolution the voting powers,
designation, preferences, and relative participating,
and other special rights, qualifications, limitations
or restrictions of the shares of any series
established. As of June 30, 2000, the Board of
Directors has not established any series of preferred
shares.
9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION OR PLAN OF OPERATION
NOTE REGARDING PROJECTIONS AND FORWARD LOOKING STATEMENTS
This statement includes projections of future results and
"forward-looking statements" as that term is defined in Section
27A of the Securities Act of 1933 as amended (the "Securities
Act"), and Section 21E of the Securities Exchange Act of 1934 as
amended (the "Exchange Act"). All statements that are included in
this Registration Statement, other than statements of historical
fact, are forward-looking statements. Although Management
believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Important factors
that could cause actual results to differ materially from the
expectations are disclosed in this Statement, including, without
limitation, those expectations reflected in forward-looking
statements contained in this Statement.
Plan of Operation
The Company's Plan of Operation has not changed since the filing
of its Form 10-SB. The description of the current plan of
operation is incorporated by reference to Section 2 of its Form
10-SB filed with the SEC on May 24, 2000.
Employees
The Company is currently in a start-up phase with no full time
employees. It is expected that as funds become available the six
current part time employees (hired between March and May 2000)
may become full time employees and additional staff will be
hired. All future employees will be hired under an equal
opportunity policy and evaluated by their manager on a regular
basis with regard to merit raises and advancements. Currently all
part time salaries are borne by Autoeye Inc. until such time as
the product is finished and ready to market, which was also a
condition of the licensing agreement with Autoeye.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any material pending legal
proceedings and, to the best of its knowledge, no such action by
or against the Company has been threatened.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
EXHIBITS
3.1 The exhibits, consisting of the Company's Articles of
Incorporation, are attached to the Company's Form 10-SB,
filed on May 24, 2000. These exhibits are incorporated by
reference to that Form.
3.2 The exhibits, consisting of the Company's Bylaws, are
attached to the Company's Form 10-SB, filed on May 24, 2000.
These exhibits are incorporated by reference to that Form.
27 Financial Data Schedule
Reports on Form 8-K: None.
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.
Remote Utilities Network, Inc.
By: Robert Gentles
Robert Gentles, CFO
Date: 11th August, 2000
