UNITED STATES
SECURITEIS AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTLEY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT TO THE
1934 ACT REPORTING REQUIREMENTS
[X] QUARTERLY REPORT UNCER SECTION 13 OR 15(D) OF SECURITES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30,2000
Commission File No. 000-29477
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.)
955 S. Virginia St., Suite 116 Reno, NV 89502
(Address of principal executive offices)
Registrant's telephone number, including area code(775) 332-7552
Check whether the issuer (1) filed all reports required to be
filed Section 13 or 15(d) of the Exchange Act during the past 12
months and (2) has been subject to such filling requirements for
the past 90 days. Yes X
As of September 30, 2000, there were 13,700,000 shares of common
stock outstanding.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
REMOTE UTILITIES NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
INDEX
<TABLE>
<S> <C>
BALANCE SHEETS 1
STATEMENTS OF OPERATIONS 2
STATEMENTS OF CASH FLOWS 3
NOTES TO FINANCIAL STATEMENTS 4 - 5
</TABLE>
REMOTE UTILITIES NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
<TABLE>
<S> <C> <C>
September 30, December 31,
2000 1999
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 15,466 $ 1
Inventory 49,954 -
Due from related party - 44,900
Prepaid expenses 10,000 -
--------- ---------
Total current assets 75,420 44,901
PROPERTY AND EQUIPMENT 43,425 -
INTANGIBLE ASSETS 72,000 72,000
--------- ---------
TOTAL ASSETS $ 190,845 $ 116,901
========= =========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 13,848 $ 3,000
Due to related parties 222,154 -
--------- ---------
TOTAL LIABILITIES 236,002 3,000
--------- ---------
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, $.001 par value; 5,000,000
shares
Authorized, -0- shares issued and - -
outstanding
Common stock, $.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 (164,157) ( 5,099)
--------- ---------
Total stockholders' equity (deficit) ( 45,157) 113,901
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT) $ 190,845 $ 116,901
========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
- 1 -
REMOTE UTILITIES NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<S> <C> <C> <C> <C> <C>
Cumulative
From Inception
For the Quarter Ended For the Nine Months Ended (January 22, 1996)
September 30, September 30, to September 30,
2000 1999 2000 1999 2000
REVENUE $ - $ - $ - $ - $ -
EXPENSES
General and administrative
expenses 122,753 3,059 159,058 3,078 164,157
---------- -------- ---------- -------- ----------
LOSS FROM OPERATIONS BEFORE
PROVISION FOR INCOME TAXES (122,753) (3,059) (159,058) (3,078) (164,157)
PROVISION FOR INCOME TAXES - - - - -
---------- -------- ---------- -------- ----------
NET LOSS $(122,753) $(3,059) $(159,058) $(3,078) $(164,157)
========== ======== ========== ======== ==========
NET LOSS PER COMMON SHARE
Basic and diluted $ (.01) $ (.00) $ (.01) $ (.00)
========== ======== ========== ========
</TABLE>
The accompanying notes are an integral part of the financial statements.
- 2 -
REMOTE UTILITIES NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
<TABLE>
<S> <C> <C> <C>
Cumulative
From Inception
For The Nine Months Ended (January 22, 1989)
September 30, (Unaudited) to September 30,
2000 1999 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(159,058) $(3,078) $(164,157)
Depreciation and Amortization 2,200 - 2,200
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Prepaid Expenses (10,000) - (10,000)
Increase in accounts payable and accrued
expenses 10,848 - 13,848
---------- -------- ----------
Net cash provided by (used in) operating
activities (156,010) (3,078) (158,109)
---------- -------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (45,625) - (45,625)
---------- -------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Due to/from related party 217,100 - 172,200
Issuance of common stock for cash - - 47,000
---------- -------- ----------
Net cash provided by financial activities 217,100 - 219,200
---------- -------- ----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 15,465 - 15,466
CASH AND CASH EQUIVALENTS - BEGINNING 1 - -
---------- -------- ----------
CASH AND CASH EQUIVALENTS - ENDING $ 15,466 $(3,078) $ 15,466
========== ======== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid for interest $ - $ - $ -
========== ======== ==========
Cash paid for taxes $ - $ - $ -
========== ======== ==========
</TABLE>
NON-CASH INVESTING AND FINANCING ACTIVITY
In December 1999, the Company issued 7,200,000 shares of the Company's common
stock with a fair market value of $72,000 as payment for a license agreement.
During the third quarter of 2000, a related party contributed inventory
totaling $49,954, which was recorded as a loan due to related party.
The accompanying notes are an integral part of the financial statements.
- 3 -
REMOTE UTILITES NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a) Nature of Operations
The accompanying consolidated financial statements have
been prepared in accordance with generally accepted
accounting principles for interim financial information
and with the instructions to Form 10-QSB and Regulation
S-B. Accordingly, they do not include all of the
information and footnotes required by generally
accepted accounting principles for complete financial
statements. In the opinion of management, all
adjustments (consisting only of normal recurring
adjustments) considered necessary for a fair
presentation have been included.
For further information, refer to the financial
statements and footnotes included in Form 10-KSB for
the year ended December 31, 1999.
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 ws 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.
b) 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 revenue and expenses
during the reporting period. Actual results could
differ from those estimates.
c) Basis of Presentation
The Company has no operations and has accumulated
losses since inception. This situation raises
substantial doubt about its ability to continue as
going concern. The accompanying financial statements
do not include any adjustments relative to the
recoverability and classification of asset carrying
amounts or the amount and classification of
liabilities that might result from the outcome of
this uncertainty. Management is currently seeking
one or more potential business ventures through
acquiring or merging with a company with viable
operations.
d) Cash and Cash Equivalents
The Company considers all highly liquid investments
purchased with original maturities of three months or
less to be cash equivalents.
- 4 -
REMOTE UTILITIES NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
e) Inventory
Inventory is stated at the lower of cost or market
utilizing the first-in, first-out method ("FIFO").
Inventory consists mainly of various parts and raw
materials.
f) Property and Equipment
Property and equipment are recorded at cost.
Depreciation is computer using the straight-line method
based upon the estimated useful lives of the various
classes of assets. Maintenance and repairs are charged
to expense as incurred.
g) 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.
h) Income Taxes
Income taxes are provided for based on the liability
method of accounting pursuant to Statement of Financial
Accounting Standards No. 109, "Accounting for Income
Taxes" ("SFAS No. 109"). 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.
i) Stock-Based Compensation
Statement of Financial Accounting Standards ("SFAS")
No. 123, "Accounting for Stock-Based Compensation",
encourages, but does not require companies to record
compensation cost for stock-based employee compensation
plans at fair value. The Company has chosen to
continue to account for stock-based compensation using
the intrinsic value method prescribed in Accounting
Principles Board Opinion No. 25, "Accounting for Stock
Issued to Employees", and related Interpretations.
Accordingly, compensation cost for stock options is
measured as the excess, if any, of the quoted market
price of the Company's stock at the date of the grant
over the amount an employee must pay to acquire the
stock.
j) Earnings Per Share
SFAS No. 128, "Earnings Per Share" requires
presentation of basic earnings per share ("Basic EPS")
and diluted earnings per share ("Diluted EPS").
The computation of basic earnings per share is computed
by dividing income available to common stockholders by
the weighted average number of outstanding common
shares during the period. Diluted earnings per share
gives effect to all dilutive potential common shares
outstanding during the period. The computation of
diluted EPS does not assume conversion, exercise or
contingent exercise of securities that would have an
antidilutive effect on earnings. The shares used in
the computations were as follows:
- 5 -
REMOTE UTILITIES NETWORK, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
j) Earnings per Share (continued)
<TABLE>
<S> <C> <C>
September 30,
2000 1999
Basic and diluted 13,700,000 13,700,000
========== ==========
</TABLE>
k) Comprehensive Income
In June 1998, the Financial Accounting Standards Board
issued SFAS No. 130, "Reporting Comprehensive Income",
was issued establish standards for the reporting and
display of comprehensive income and its components in
the financial statements. As of September 30, 2000,
the Company has no items that represent comprehensive
income, therefore, has not included a schedule
Comprehensive Income in the accompanying financial
statements.
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.
During the nine months ended September 30, 2000, a
related party sold $________ of inventory to the
Company. This payable is recorded in due to related
party. This related party also advanced the Company
$_________.
NOTE 3 - PROPERTY AND EQUIPMENT
Property and equipment at cost, consisted of the
following:
<TABLE>
<S> <C> <C>
September 30,
2000 1999
Computer Equipment $ 10,285 $ -
Computer Software 18,808 -
Furniture and Office 13,225 -
Equipment
Leasehold Improvement 3,307 -
--------- --------
45,625 -
Less: Accumulated (2,200) -
Depreciation
--------- --------
Net Property and Equipment $ 43,425 $ -
========= ========
</TABLE>
For the nine months ended September 30, 2000, depreciation and
amortization expense was $2,200.
- 6 -
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: ________________________
David Phan, President
