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U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to____________
Commission File No. 0-26695
HIGHWAY ONE-OWEB, INC.
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(Name of Small Business Issuer in its Charter)
UTAH 87-0636107
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(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
430 Fourth Street
Ogden, Utah 84404
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(Address of Principal Executive offices)
Issuer's Telephone Number: (801) 392-6056
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 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.
(1) Yes X No (2) Yes X No
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APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date:
June 30, 2000
2,348,000
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
The Financial Statements of the Registrant required to be filed
with this 10-QSB Quarterly Report were prepared by management, and commence of
the following page, together with Related Notes. In the opinion of management,
the Financial Statements fairly present the financial condition of the
Registrant.
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HIGHWAY ONE-OWEB, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
June 30, 2000 and December 31, 1999
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<TABLE>
HIGHWAY ONE-OWEB, INC.
(A Development Stage Company)
Balance Sheets
<CAPTION>
ASSETS
June 30, December 31,
2000 1999
(Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash $ 12,621 $ 25,599
Total Current Assets 12,621 25,599
FIXED ASSETS (NET) 4,375 -
TOTAL ASSETS $ 16,996 $ 25,599
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,321 4,556
Total Current Liabilities 2,321 4,556
TOTAL LIABILITIES 2,321 4,556
STOCKHOLDERS' EQUITY
Common stock: 100,000,000 shares authorized of $0.001
par value, 2,348,000 shares issued and outstanding 2,348 2,348
Additional paid-in capital 37,452 37,452
Deficit accumulated during the development stage (25,125) (18,757)
Total Stockholders' Equity 14,675 21,043
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 16,996 $ 25,599
</TABLE>
<TABLE>
HIGHWAY ONE-OWEB, INC.
(A Development Stage Company)
Statements of Operations
(Unaudited)
<CAPTION>
From
Inception on
For the For the March 17,
Six Months Ended Three Months Ended 1999 Through
June 30, June 30, June 30,
2000 1999 2000 1999 2000
<S> <C> <C> <C> <C> <C>
REVENUES $ 150 $ - $ - $ - $ 150
EXPENSES
General and
administrative 6,518 6,421 6,277 6,299 25,275
Total Expenses 6,518 6,421 6,277 6,299 25,275
NET LOSS $ (6,368) $(6,421) $ (6,277) $ (6,299)$(25,125)
BASIC LOSS PER SHARE $ (0.00) $ (0.00) $ (0.00) $ (0.00)
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 2,348,000 2,348,000 2,348,000 90,060
</TABLE>
<TABLE>
HIGHWAY ONE-OWEB, INC.
(A Development Stage Company)
Statements of Stockholders' Equity
<CAPTION>
Deficit
Accumulated
Additional During the
Common Stock Paid-In Development
Shares Amount Capital Stage
<S> <C> <C> <C> <C>
Balance at inception on
March 17, 1999 - $ - $ - $ -
Issuance of common stock for
cash at $0.0025 per share 2,000,000 2,000 3,000 -
Issuance of common stock
for cash at $0.10 per share 348,000 348 34,452 -
Net loss from inception on
March 17, 1999 through
December 31, 1999 - - - (18,757)
Balance, December 31, 1999 2,348,000 2,348 37,452 (18,757)
Net loss for the six months
ended June 30, 2000 - - - (6,368)
Balance, June 30, 2000 2,348,000 $ 2,348 $ 37,452 $ (25,125)
</TABLE>
<TABLE>
HIGHWAY ONE-OWEB, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<CAPTION>
From
Inception on
For the For the March 17,
Six Months Ended Three Months Ended 1999 Through
June 30, June 30, June 30,
2000 1999 2000 1999 2000
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES
Net (loss) $(6,368) $(6,421) $(6,277) $(6,299) $(25,125)
Adjustments to reconcile
loss from operations
to net cash used by
operating activities:
Depreciation 230 - 230 - 230
Change in operating assets
and liabilities:
(Decrease) in accounts
payable (2,235) 1,299 2,321 1,177 2,321
Net Cash (Used) by
Investing Activities (8,373) (5,122) (3,726) (5,122) (22,574)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of equipment (4,605) - - - (4,605)
Net Cash Used by
Investing Activities (4,605) - - - (4,605)
CASH FLOWS FROM FINANCING
ACTIVITIES
Common stock issued for
cash - 39,800 - 39,800 39,800
Net Cash Provided by
Financing Activities - 39,800 - 39,800 39,800
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (12,978) 34,678 (3,726) 34,678 12,621
CASH AND CASH EQUIVALENT AT
BEGINNING OF PERIOD 25,599 - 16,347 - -
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $12,621 $34,678 $12,621 $ 34,678 $12,621
CASH PAID FOR:
Interest $ - $ - $ - $ - $ -
Income taxes $ - $ - $ - $ - $ -
</TABLE>
HIGHWAY ONE-OWEB, INC.
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2000 and December 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies of Highway One-OWeb,
Inc. is presented to assist in understanding the Company's 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 an have been consistently applied in
the preparation of the financial statements.
a. Organization and Business Activities
The name of the Company is Highway One-OWeb, Inc. (the Company). The
Company was incorporated in the State of Utah on March 17, 1999 to
engage in any lawful activity, but more particularly to assist
companies in marketing their goods and services on the internet.
b. Fiscal Year
The Company operates on a calendar year basis.
c. Revenue Recognition
The Company currently has no established source of revenues. Revenue
recognition policies will be determined when principal operations
begin.
d. 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.
e. Income Taxes
No provision for income taxes has been accrued because the Company
has net operating losses from inception. The net operating loss
carryforwards of approximately $19,000 at December 31, 1999 will
expire in 2019. No tax benefit has been reported in the financial
statements because the Company is uncertain if the carryforwards will
expire unused. Accordingly, the potential tax benefits are offset by
a valuation account of the same amount.
f. 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.
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HIGHWAY ONE-OWEB, INC.
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2000 and December 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
g. Basic Loss per Share of Common Stock
For the Six Months Ended
June 30, 2000
Loss Shares Per Share
(Numerator) (Denominator) Amount
Net loss $ (6,368) 2,348,000 $ (0.00)
For the Six Months Ended
June 30, 1999
Loss Shares Per Share
(Numerator) (Denominator) Amount
Net loss $ (6,421) 2,348,000 $ (0.00)
The computations of basic loss per share of common stock is based on
the weighted average number of shares outstanding during the period.
h. Unaudited Financial Statements
The accompanying unaudited financial statements include all of the
adjustments which, in the opinion of management, are necessary for a
fair presentation. Such adjustments are of a normal recurring
nature.
NOTE 2 - GOING CONCERN
The Company's financial statements are prepared using 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 does not have
significant cash or other material assets, nor does it have an
established source of revenues sufficient to cover its operating
costs and to allow it to continue as a going concern. The Company is
seeking additional financing from a private placement of common
stock. In the interim a shareholder has committed to meeting the
Company's cash needs for a term of at least twelve (12) months from
the date of these financial statements or until the Company
establishes an active business operation.
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Item 2. Management's Discussion and Analysis or Plan of operation.
Plan of Operation.
In addition to its web page design and hosting services, the
Company plans to expand its operations by acquiring, joint venturing or
merging with other internet service providers in exchange for the issuance of
shares of its common stock. As of the date of this Report, the Company has
not entered into any agreements in this regard, and there can be no assurance
that it will be successful in entering into a transaction with any such
entity.
In furtherance of its business plan, on March 17, 2000, the Company
purchased a computer server for $4,605.06.
The Company has retained its first customer, and has received a retainer
of $150 for web site design services.
The Company has also designed an advertising brochure. The brochure has
been designed to serve as a three-fold mailer that the Company will send out
to new businesses in surrounding counties. The brochure will also be used as
a point of sale advertising tool.
Results of Operations.
During the quarterly period ended June 30, 2000, the Company
received $0 in revenues. Total expenses during the period from inception on
March 17, 1999 through June 30, 2000, were $25,125; the Company has incurred
a net loss of ($25,125) during that period.
Liquidity.
At June 30, 2000, the Company had total current assets of
$12,621 and total liabilities of $2,321. Management believes that its cash on
hand of $12,621 will be sufficient to allow it to continue its operations for
the next six months.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None; not applicable.
Item 2. Changes in Securities.
None; not applicable.
Item 3. Defaults Upon Senior Securities.
None; not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
None; not applicable.
Item 5. Other Information.
None; not applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Financial Data Schedule.
(b) Reports on Form 8-K.
None.
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SIGNATURES
Pursuant to the requirements 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.
HIGHWAY ONE-OWEB, INC.
Date: 8-9-00 By: /s/ Pete Chandler
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Pete Chandler
Director and President
