UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1999
Commission file Number 000-26307
Netgen 2000, Inc.
(Exact name of registrant as specified in its charter)
Florida 65-0873448
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification Number)
324 Datura Street, # 140 33401
West Palm Beach, Florida (Zip Code)
(Address of principal executive office)
Registrants telephone number, including area code:
(561) 655-5351
Indicate by check mark whether the registrant(1) has filed
all reports required to be filed by Section 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.
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practical
date:
Common Stock, $ 0.01 Par Value- 4,425,000 shares as of
September 30,1999.
PART I. - FINANCIAL INFORMATION
NETGEN 2000, INC.
CONDENSED BALANCE SHEETS
Sept. 30 Dec. 31
1999 1998
Unaudited Audited
- -ASSETS-
CURRENT ASSETS
Cash and cash equivalents $ 33,016 $ -0-
--------- ---------
Total Current Assets 33,016 -0-
FIXED ASSETS
Computer Equipment,
Furniture & Fixtures 13,376 3,500
--------- ---------
Total Fixed Assets 13,376 3,500
OTHER ASSETS
Deposit 2,000 -0-
--------- ---------
Total Other Assets 2,000 -0-
--------- ---------
TOTAL ASSETS $ 48,392 $ 3,500
LIABILITIES AND STOCKHOLDERS' EQUITY
Payroll Tax Payable $ 761 $ -0-
--------- ---------
761 -0-
Stockholders' Equity
Common Stock par value $ 0.01 per share
Authorized 6,000,000 shares
Issued 4,490,000 and 3,000,000 $ 44,900 $ 30,000
Additional Paid In Capital 313,500 700
Retained Deficit [310,769] [27,200]
---------- ----------
Total Stockholders' Equity 47,631 3,500
---------- ----------
TOTAL LIABILITIES & STOCKHOLDERS' $ 48,392 $ 3,500
EQUITY
See Accompanying Notes to Financial Statements
Netgen 2000, Inc.
CONDENSED STATEMENT OF OPERATIONS
Three Months Ended September 30, 1999 and 1998
(UNAUDITED)
1999 1998
REVENUES
Sales $20,691 $ -0-
Dividends 2,386 -0-
---------- ----------
Total Revenues $23,077 $ -0-
EXPENSES
Operating and Administrative Expenses $ 140,062 $ -0-
---------- ----------
NET LOSS $[116,985] $ -0-
---------- ----------
Net Loss Per Share $0.03 -0-
See Accompanying Notes to Financial Statements
Netgen 2000, Inc.
CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended September 30, 1999 and 1998
(UNAUDITED)
1999 1998
OPERATING ACTIVITIES
Net Loss $ [ 116,985] $ -0-
Increase in Tax Payable 761 -0-
---------- ----------
Net cash provided by
operating activities [116,224] -0-
INVESTING ACTIVITIES
Purchase of property [ 2,666] -0-
and equipment ---------- ----------
Net cash used in investing [ 2,666] -0-
activities
FINANCING ACTIVITIES
Issuance of common stock 221,600 -0-
Issuance of warrants 10,400 -0-
---------- ----------
Net cash provided by financing
activities 232,000 -0-
---------- -----------
NET INCREASE [DECREASE] IN CASH [ 53,890] -0-
BEGINNING CASH 86,906 -0-
---------- ----------
ENDING CASH, September 30, $ 33,016 -0-
See Accompanying Notes to Financial Statements
Netgen 2000, Inc.
NOTES TO CONDENSED FINANCIAL STATEMENTS
September 30, 1999
(UNAUDITED)
NOTE 1. BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions
to Form 10-Q and Article 10 of Regulation S-X . 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 of normal re-
curring accruals) considered necessary for a fair presentation have
been included. Operating results for the three months ended
September 30,1999 are not necessarily indicative of the results that may
be expected for the year ended December 31,1999. These Condensed
Financial Statements should be read in con-junction with the Financial
Statements and notes thereto contained in the company's Form 10-K for
the year ended December 31,1999.
NOTE 2. FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
As of September 30,1999, the Company had cash and cash equivalents
of $ 33,016.00. The Company had commenced a private placement of 300,000
units consisting of one share of common stock and one redeemable
warrant and had sold 230,000 Units resulting in net proceeds to the
company of $ 230,000.00.
The company is in a development stage and so far has been able
to generate a revenue of $ 20,691.00 for the quarter ended September 30,1999.
The majority of the Operating Expenses were for the development of the
Website and the planning of the marketing plan for the company.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
For the period from July to September the company has begun to implement the
preliminary aspects of the marketing plan. Design and implementation of all
collateral material was completed, laying the groundwork for sales efforts to
begin in earnest. The first regional television commercials were produced and
the first phase of the media test market was begun. Preliminary results saw a
marginal increase in website hits, and it was determined that the company
would need to bring in outside expertise in the media planning/buying
function. The company completed production of the first many corporate
industrial videotapes to be utilized in conjunction with the sales pre-
sentation. Initial responses to the video have been positive.
The company has also begun to evaluate various ad campaign themes for
effectiveness, and continues to do so.
The company also continues its redesign of the Website. Based on initial test
markets, the site colors and fonts were changed to reflect a more sophi-
sticated image. The company also began selling subscriptions to businesses in
the West Palm Beach market (test market), and spent significant man-hours
fine tuning the subscriber templates to facilitate anticipated demand for
subscriptions.
PART II. - OTHER INFORMATION OTHER INFORMATION
Item 1.Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
NETGEN 2000, INC.
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.
NETGEN 2000, INC.
(Registrant)
November 19,1999 Derek G. Dunn
Date President and Director
November 19,1999 Arvind B. Ajinkya
Date Chief Financial Officer
NETGEN 2000, INC.
324 Datura Street Suite 140
West Palm Beach, FL 33401
December 5, 1999
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.
Respectfully,
Netgen 2000 Inc.
Mildred R. Dunn
Executive Assistant
