Board of Directors
Cyberbiz, Inc.
Bellingham, Washington
ACCOUNTANT'S REVIEW REPORT
We have reviewed the accompanying balance sheet of Cyberbiz, Inc. (a
development stage enterprise) as of August 31, 2000 and the related
statements of operations, stockholders' equity and cash flows for the three
months ended August 31, 2000 and August 31, 1999, for the six months ended
August 31, 2000, for the period from March 12, 1999 (inception) to August 31,
1999, and for the period from March 12, 1999 (inception) to August 31, 2000.
These financial statements are the responsibility of the Company's management.
We conducted our review 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 in
accordance with generally accepted auditing standards, the objective of which
is the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements in order for them to
be in conformity with generally accepted accounting principles.
The financial statements for the periods ended February 29, 2000 and May 31,
2000 were audited by us and we expressed unqualified opinions on them in our
reports dated March 29, 2000 and June 22, 2000, respectively. We have not
performed any auditing procedures since that date.
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles, which contemplates continuation of
the Company as a going concern. As discussed in Note 2, the Company has been
in the development stage since its inception on March 12, 1999. Realization
of a major portion of the assets is dependent upon the Company's ability to
meet its future financing requirements, and the success of future operations.
These factors raise substantial doubt about the Company's ability to continue
as a going concern. Management's plans regarding those matters also are
described in Note 2. The financial statements do not include any adjustments
that might result from the outcome of this uncertainty.
Williams & Webster, P.S.
Certified Public Accountants
Spokane, Washington
October 4, 2000
<PAGE>
CYBERBIZ, INC.
(A Development Stage Enterprise)
Balance Sheets
<TABLE>
<C> <C> <C>
August 31, 2000
(Unaudited) February 29, 2000
ASSETS
CURRENT ASSETS
Cash $ 67,957 $ 20,290
Prepaid Expense 5,400 --
Total Current Assets 73,357 20,290
PLANT, PROPERTY AND EQUIPMENT
Office Equipment 1,254 --
Accumulated depreciation (202) --
Total Plant, Property and
Equipment 1,052 --
TOTAL ASSETS $ 74,409 $ 20,290
LIABILIITES & STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts Payable $ 100 $ --
Total Current Liabilities 100 --
COMMITMENTS AND
CONTINGENCIES -- --
STOCKHOLDERS' EQUITY
Preferred stock, 20,000,000 shares
authorized, $0.0001 par value; no
shares issued & outstanding -- --
Common stock, 80,000,000 shares
authorized, $0.0001 par value;
4,433,037 and 4,300,000 shares
issued & outstanding, respectively 443 430
Additional paid-in capital 135,184 33,570
Deficit accumulated during
development stage (61,318) (13,710)
Total Stockholders' Equity 74,309 20,290
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 74,409 $ 20,290
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</TABLE>
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CYBERBIZ, INC.
(A Development Stage Enterprise)
Statements of Operations
<TABLE>
<C> <C> <C> <C> <C> <C>
03/12/99 03/12/99
3 mos 3 mos 6 mos (inception) (inception)
ended ended ended through through
08/31/00 08/31/99 08/31/00 Aug.31/99 Aug.31/00
(unaudited)(unaudited)(unaudited)(unaudited)(unaudited)
REVENUES $ -- $ -- $ -- $ -- $ --
EXPENSES
Consulting -- -- 17,500 -- 23,625
Filing Fees 22 -- 22 -- 664
Legal & professional 5,724 -- 8,724 5,843 14,567
Office & Administrative 2,261 23 8,846 459 9,388
Depreciation 126 -- 202 -- 202
Web site maintenance -- -- 12,247 -- 12,247
Transfer Agent 415 558 765 558 1,323
TOTAL EXPENSES 8,548 581 48,306 6,860 62,016
LOSS FROM OPERATIONS (8,548) (581) (48,306) (6,860) (62,016)
OTHER INCOME (EXPENSES)
Miscellaneous Income 60 -- 698 -- 698
LOSS BEFORE INCOME TAXES (8,488) (581) (47,608) (6,860) (61,318)
INCOME TAXES -- -- -- -- --
NET LOSS $ (8,488) $ (581) $ (47,608) $ (6,860) $ (61,318)
Net Loss per common
share, basic & diluted $ nil $ nil $ (0.01) $ nil $ (0.01)
Weighted Average # of
common shares out-
standing, basic & diluted
4,454,233 4,300,000 4,428,854 4,014,917 4,243,869
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</TABLE>
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CYBERBIZ, INC.
(A Development Stage Enterprise)
Statement of Stockholders' Equity
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<C> <C> <C> <C> <C> <C>
Deficit Acc.
Add. During the Total
No. of Paid-in develop. Stockholders'
Shares Amount Capital Stage Equity
Issuance of common
stock for cash at
$0.0001 per share 4,000,000 $ 400 $ 3,600 $ -- $ 4,000
Issuance of common
stock from private
placement for cash
at $0.10 per share 300,000 30 29,970 -- $ 30,000
Loss for period ending
February 29, 2000 -- -- -- (13,710) (13,710)
Balance,
February 29, 2000 4,300,000 430 33,570 (13,710) 20,290
Issuance of common
stock from private
placement for cash at
$0.675 per share 143,037 14 96,613 -- 96,627
Issuance of common
stock from private
placement for cash at
$0.25 per share 40,000 4 9,996 -- 10,000
Refund of funds
received from
private placement (50,000) (5) (4,995) -- (5,000)
Loss for the period
ending Aug. 31/00 -- -- -- (47,608) (47,608)
Balance, Aug. 31/00
(unaudited) 4,433,037 $ 443 $135,184 $ (61,318) $ 74,309
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</TABLE>
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CYBERBIZ, INC.
(A Development Stage Enterprise)
Statements of Cash Flows
<TABLE>
<C> <C> <C> <C>
From From
March 12/99 March 12/99
(inception) (inception)
6 months ended through through
Aug.31/00 Aug.31/99 Aug.31/00
(unaudited) (unaudited) (unaudited)
CASHFLOWS FROM OPERATING
ACTIVITIES
Net Loss $ (47,608) $ (6,860) $ (61,318)
Depreciation Expense 202 -- 202
Adjustments to reconcile net loss
to net cash used by operating activities:
Increase in pre-paid expense (5,400) -- (5,400)
Increase in Accounts Payable 100 -- 100
Net cash used in operating activities
(52,706) (6,860) (66,416)
CASHFLOWS FROM INVESTING
ACTIVITIES
Purchase of equipment (1,254) -- (1,254)
Net cash (used) by investing activities
(1,254) -- (1,254)
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of
common stock 101,627 14,000 115,627
Proceeds from deferred
stock subsriptions -- -- 20,000
Net Cash provided by
financing activities 101,627 14,000 135,627
Change in cash 47,667 7,140 67,957
Cash, beginning of period 20,290 -- --
Cash, end of period $ 67,957 $ 7,140 $ 67,957
Supplemental disclosures:
Interest paid: $ -- $ -- $ --
Income taxes paid: $ -- $ -- $ --
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</TABLE>
<PAGE>
CYBERBIZ, INC.
(A Development Stage Enterprise)
Notes to Financial Statements
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Cyberbiz, Inc. (hereinafter "the Company") was incorporated on March 12, 1999
under the laws of the State of Delaware for the purpose of providing a web
site which specifically addresses the unique needs and preferences of the
African American consumer. The Company maintains offices in Bellingham,
Washington and in Vancouver, British Columbia. The Company's fiscal year-end
is on the last calendar day of February.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies is presented to assist in
understanding the financial statements. The financial statements and notes
are representations of the Company's management which is responsible for
their integrity and objectivity. These accounting policies conform to
generally accepted accounting principles and have been consistently applied
in the preparation of the financial statements.
Interim Financial Statements
The interim financial statements as of August 31, 2000 and for the three
months ended August 31, 2000, included herein, have been prepared for the
Company without audit. They reflect all adjustments, which are, in the
opinion of management, necessary to present fairly the results of operations
for these periods. All such adjustments are normal recurring adjustments.
The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the full fiscal year.
Accounting Method
The Company's financial statements are prepared using the accrual method of
accounting.
Development Stage Activities
The Company has been in the development stage since its formation in March of
1999 and has not yet realized any revenues from its planned operations. It
is engaged in the business of marketing and selling goods via a discount
liquidation web site.
Use of Estimates
The process of preparing financial statements in conformity with generally
accepted accounting principles requires the use of estimates and assumptions
regarding certain types of assets, liabilities, revenues, and expenses. Such
estimates primarily relate to unsettled transactions and events as of the
date of the financial statements. Accordingly, upon settlement, actual
results may differ from estimated amounts.
Cash and Cash Equivalents
For purposes of the Statement of Cash Flows, the Company considers all short-
term debt securities purchased with a maturity of three months or less to be
cash equivalents.
Fair Value of Financial Instruments
The carrying amounts for cash, accounts payable, and accrued liabilities
approximate their fair value.
Derivative Instruments
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Activities." This standard establishes accounting
and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts, and for hedging
activities. It requires that an entity recognize all derivatives as either
assets or liabilities in the consolidated balance sheet and measure those
instruments at fair value.
At August 31, 2000, the Company has not engaged in any transactions that
would be considered derivative instruments or hedging activities.
Revenue Recognition
The Company will recognize revenue from internet-based affiliate programs
when funds are earned and measurable.
Compensated Absences
Currently, the Company has no employees; therefore, no policy regarding
compensated absences has been established. The Company will establish a
policy to recognize the costs of compensated absences at the point in time
that it has employees.
Provision for Taxes
The Company had a cumulative net operating loss of approximately $60,000 for
the period from March 12, 1999 (inception) through August 31, 2000. No
provision for taxes or tax benefit has been reported in the financial
statements, as there is not a measurable means of assessing future profits or
losses.
Basic and Diluted Loss Per share
Loss per share was computed by dividing the net loss by the weighted average
number of shares outstanding during the period. The weighted average number
of shares was calculated by taking the number of shares outstanding and
weighting them by the amount of time that they were outstanding. Basic and
diluted loss per share were the same, as there were no common stock
equivalents outstanding.
Reclassifications
Certain amounts from prior periods have been reclassified to conform with the
current period presentation. This reclassification has resulted in no
changes to the Company's accumulated deficit or net losses presented.
Going Concern
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.
As shown in the accompanying financial statements, the Company has an
accumulated net loss of $61,318 for the period March 12, 1999 (inception) to
August 31, 2000 and had no sales. The future of the Company is dependent upon
successful and profitable operations from its discount liquidation web site.
The financial statements do not include any adjustments relating to the
recoverability and classification of recorded assets, or the amounts and
classification of liabilities that might be necessary in the event the Company
cannot continue in existence.
Management has plans to seek additional capital through a private placement
and public offering of its common stock. The financial statements do not
include any adjustments relating to the recoverability and classification of
recorded assets, or the amounts and classification of liabilities that might
be necessary in the event the Company cannot continue in existence.
NOTE 3 - CASH
At August 31, 2000, the Company maintained a cash balance of $67,957 in a
Canadian financial institution. Although the funds are valued in US dollars,
they are not insured.
NOTE 4 - PREPAID EXPENSES
On May 31, 2000, the Company entered into an agreement with Apus Capital
Corp., a related party, and paid $7,200 for future services valued at $600
per month. The service agreement is in effect from June 1, 2000 through
May 31, 2001. For the three month period ended August 31, 2000, $1,800 was
recognized as office expense.
NOTE 5 - PLANT, PROPERTY AND EQUIPMENT
At August 31, 2000, the Company's fixed assets consist of office equipment,
which is being depreciated using an accelerated method of depreciation over
a five-year life span. Depreciation expense for the three month period ended
August 31, 2000 was $126.
NOTE 6 - PREFERRED STOCK
The Company is authorized to issue 20,000,000 shares of $0.0001 par value
preferred stock. The preferred shares have not been designated any
preferences. As of August 31, 2000, the Company did not have any preferred
shares outstanding.
NOTE 7 - COMMON STOCK
The Company is authorized to issue 80,000,000 shares of $0.0001 par value
common stock. Each holder of common stock has one, non-cumulative vote per
share on all matters voted upon by the shareholders. There are no preemptive
rights or other rights of subscription.
On March 15, 1999, 4,000,000 shares of common stock were sold through a
private placement at a price of $0.001 per share. The offering was made
pursuant to exemptions afforded by Sections (4)2 or 3(b) of the Securities
Act of 1933 and Rule 504 of Regulation D. Two additional private placements
occurred on March 19, 1999 and February 17, 2000, wherein 100,000 shares and
200,000 shares, respectively, were sold at a price of $0.10 per share. The
three private placements raised a total of $34,000, which proceeds will be
used for general corporate purposes.
During the three months period ended May 31, 2000, the Company sold 183,037
shares through three private placements at an average price of $0.5821 per
share. The offerings were made pursuant to exemptions afforded by Sections
(4)2 or 3(b) of the Securities Act of 1933 and Rule 504 of Regulation D. The
private placements raised a total of $106,627, which proceeds will be used in
development and maintenance of the Company's web site. None of the shares
issued during the three months period ended May 31, 2000 were issued to
officers and directors.
On July 10, 2000, the Company reimbursed a subscriber of stock $5,000 in
return for the 50,000 shares of common stock issued. The reimbursement was
equal to the amount paid by the subscriber for the shares returned.
NOTE 8 - COMMITMENTS AND CONTINGENCIES
The Company is engaged in internet-based commerce. At present, the Company
is unaware of any pending litigation or of any specific past or prospective
matters that could impair its ability to proceed in the marketplace.
NOTE 9 - MANAGEMENT'S REPORT
For the past 3 months, Management has been focused on marketing and expanding
their corporate web presence.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly cause this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CYBERBIZ, INC.
By: /s/ Robin Lee
President
Date: October 15, 2000
CYBERBIZ, INC
2009 Iron Street
Bellingham, WA, USA 98225
Securities and Exchange Commission Washington, D.C. 20549
Gentlemen:
Pursuant to the requirements of the Securities Exchange Act of 1934, we are
transmitting herewith the attached Form 10-Q.
Sincerely,
CYBERBIZ, INC.
Robin Lee
President
