U.S. Securities and Exchange Commission
Washington, D.C. 20549
<P>
Form 10-QSB
<P>
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
<P>
For the quarterly period ended March 31, 2000.
<P>
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE
EXCHANGE ACT
<P>
For the transition period from to
<P>
Commission file number 000-30291
<P>
Global Realty Management Group, Inc.
(Exact name of small business issuer
as specified in its charter)
<TABLE>
<S> <C>
Florida 65-0735872
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
</TABLE>
<P>
701 Brickell Avenue, Suite 3120, Miami, FL 33131
(Address of principal executive offices)
<P>
(305) 539-0900
(Issuer's telephone number)
<P>
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
<P>
Check whether the issuer (1) filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act
during the past 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
<P>
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
<P>
Check whether the registrant filed all documents and
reports required to be filed by Section 12, 13 or 15(d)
of the Exchange Act after the distribution of securities
under a plan confirmed by a court. Yes No
<P>
APPLICABLE ONLY TO CORPORATE ISSUERS
Transitional Small Business Disclosure Format
(Check one):
Yes No
<P>
The number of shares of common stock $.001 par value, of
the Registrant issued and outstanding as of July 31, 2000
was 10,550,000
<P>
<PAGE>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
FORM 10QSB
<P>
THIRD QUARTER ENDED MARCH 31, 2000
<P>
PART 1
<P>
ITEM 1. FINANCIAL STATEMENTS - GLOBAL REALTY
MANAGEMENT GROUP, INC.(A DEVELOPMENT STAGE
COMPANY) THIRD QUARTER ENDED - MARCH 31, 2000
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
TABLE OF CONTENTS
<P>
<TABLE>
<S> <C>
Page(s)
Balance sheets
Statements of operations
Statements of stockholders' equity
Statements of cash flows
Notes to financial statements
<P>
<PAGE>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
BALANCE SHEETS
<P>
ASSETS
</TABLE>
<TABLE>
<S> <C> <C>
(Unaudited)
March 31, 2000 June 30, 1999
CURRENT ASSETS:
<P>
Cash $ 20,562 $ 76,760
Prepaid expenses 500 1,000
----------------------------------
Total Current Assets 21,062 77,760
Organization costs, net 0 678
Investment in i-Realty Auction.Com, Inc. 30,500 0
----------------------------------
TOTAL ASSETS $ 51,562 $ 78,438
<P>
LIABILITIES AND STOCKHOLDERS' EQUITY
<P>
CURRENT LIABILITIES:
<P>
Accrued expenses $ 14,451 $ 13,000
Accounts payable 0 124
Stockholders' loan 100 0
----------------------------------
Total Current Liabilities 14,551 13,124
<P>
STOCKHOLDERS' EQUITY:
<P>
Common Stock, par value $.001 per share; 50,000,000 shares
authorized;10,550,000 and 10,050,000 shares issued and
outstanding, respectively 10,550 10,050
Additional paid-in capital 99,950 99,950
Deficit accumulated during the development stage (73,489) (44,686)
---------------------------------
Total Stockholders' Equity 37,011 65,314
---------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $51,562 $ 78,438
=================================
</TABLE>
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
STATEMENTS OF OPERATIONS
<P>
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
FOR THE PERIOD
THREE MONTH ENDED NINE MONTHS ENDED FEBRUARY 10, 1997
MARCH 31, MARCH 31, (INCEPTION) TO
1999 2000 1999 2000 MARCH 31, 2000
------------------------------------------------------------------
DEVELOPMENT
STAGE REVENUES $ 0 $ 0 $ 0 $ 0 $ 0
<P>
DEVELOPMENT STAGE EXPENSES:
<P>
Amortization $ 40 $ 0 $ 40 $ 0 $ 0
Accounting 0 3,200 0 12,300 15,300
Advertising 0 0 0 0 848
Bank charges 0 0 0 0 130
Consulting fees 5,000 0 5,000 0 11,000
Courier 0 0 0 0 89
Licenses and taxes 150 752 150 887 1,257
Office expenses 0 4,500 0 15,179 19,097
Professional fees 0 95 0 437 17,268
------------------------------------------------------------------
TOTAL DEVELOPMENT
STAGE EXPENSES 5,190 8,547 5,190 28,803 64,989
-----------------------------------------------------------------
LOSS FOR THE PERIOD $(5,190) $(8,547) $ (5,190) $ (28,803) $ (64,989)
==================================================================
LOSS PER COMMON SHARE
<P>
Basic $(0.00055) $ (0.00081) $(0.00055) $ (0.0028) $ (0.0067)
======================================================================
Weighted-average
number of
common shares
outstanding 9,500,000 10,550,000 9,500,000 10,258,394 9,727,336
=====================================================================
</TABLE>
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
<P>
FOR THE PERIOD FEBRUARY 10, 1997 (INCEPTION)
THROUGH MARCH 31, 2000
<P>
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
DEFICIT
ACCUMULATED
ADDITIONAL DURING THE
COMMON STOCK PAID-IN DEVELOPMENT
SHARES AMOUNT CAPITAL STAGE TOTAL
------------------------------------------------------------------
Balance,
February 10, 1997
(inception) 0 $ 0 $ 0 $ 0 $ 0
<P>
Restricted common stock
issued to related
parties for
consulting fees 200 0 1,000 0 1,000
<P>
Loss during development
stage for the period
February 10, 1997
(inception) through
June 30, 1997 0 0 0 (856) (856)
------------------------------------------------------------------
Balance,
June 30, 1997 200 0 1,000 (856) 144
<P>
Loss during development
stage for the year
ended June 30, 1998 0 0 0 0 0
------------------------------------------------------------------
Balance,
June 30, 1998 200 $ 0 $ 1,000 $ (856) $ 144
==================================================================
</TABLE>
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
<P>
FOR THE PERIOD FEBRUARY 10, 1997 (INCEPTION)
THROUGH MARCH 31, 2000 (CONT'D)
<P>
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
DEFICIT
ACCUMULATED
ADDITIONAL DURING THE
COMMON STOCK PAID-IN DEVELOPMENT
SHARES AMOUNT CAPITAL STAGE TOTAL
------------------------------------------------------------------
Balance,
June 30, 1998 200 $ 0 $ 1,000 $ (856) $ 144
<P>
Forward stock split
47,500 to 1 as of
March 25, 1999 9,499,800 9,500 (1,000) (8,500) 0
<P>
Common stock issued
to third parties
in private
offering 500,000 500 99,500 0 100,000
<P>
Common stock issued
for legal services 50,000 50 450 0 500
<P>
Loss during development
stage for the year
ended June 30, 1999 0 0 0 (35,330) (35,330)
---------------------------------------------------------------------
Balance,
June 30, 1999 10,050,000 $ 10,050 $ 99,950 $ (44,686) $ 65,314
=====================================================================
</TABLE>
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
<P>
FOR THE PERIOD FEBRUARY 10, 1997 (INCEPTION)
THROUGH MARCH 31, 2000 (CONT'D)
<P>
(Unaudited)
<P>
<TABLE>
<S> <C> <C> <C> <C> <C>
DEFICIT
ACCUMULATED
ADDITIONAL DURING THE
COMMON STOCK PAID-IN DEVELOPMENT
SHARES AMOUNT CAPITAL STAGE TOTAL
------------------------------------------------------------------
Balance,
June 30, 1999 10,050,000 $ 10,050 $ 99,950 $ (44,686) $ 65,314
<P>
Restricted common
stock issued to
acquire i-Realty
Auction.Com, Inc. 500,000 500 0 0 500
<P>
Loss during development
stage for the
nine months ended
March 31, 2000 0 0 0 (28,803) (28,803)
---------------------------------------------------------------------
Balance,
March 31, 2000 10,550,000 $ 10,550 $ 99,950 $(73,489) $ 37,011
</TABLE>
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
STATEMENTS OF CASH FLOWS
<P>
(Unaudited)
<TABLE>
<S> <C> <C> <C>
FOR THE PERIOD
NINE MONTHS ENDED FEBRUARY 10, 1997
MARCH 31, (INCEPTION) TO
2000 1999 MARCH 31, 2000
------------------------------------------------
OPERATING ACTIVITIES:
Deficit accumulated during
the development stage $ (28,803) $ (5,190) $ (73,489)
<P>
Adjustments to reconcile
net loss to net cash
used by operations:
Decrease (Increase) in
Organization cost 678 (709) 0
Decrease (Increase) in
prepaid expenses 500 0 (500)
(Decrease) Increase in
accounts payable (124) 4,899 0
Increase in accrued expenses 1,451 0 14,451
------------------------------------------------
Net Cash Used by Operating Activities 2,205 4,190 13,951
------------------------------------------------
INVESTING ACTIVITIES:
Investment in i-RealtyAuction.Com, Inc. (30,500) 0 (30,500)
------------------------------------------------
Net Cash Used in Investing Activities (30,500) 0 (30,500)
------------------------------------------------
FINANCING ACTIVITIES:
Proceeds from the issuance
of common stock 500 0 10,500
Proceeds from Additional
Paid in Capital 0 1,000 99,950
Proceed from shareholders' loan 100 0 100
------------------------------------------------
Net Cash Provided By Financing Activities 600 1,000 110,600
------------------------------------------------
Increase (decrease) in cash (56,198) 0 20,562
------------------------------------------------
Cash, Beginning of year 76,760 0 0
------------------------------------------------
Cash, End of year $ 20,562 $ 0 $ 20,562
================================================
</TABLE>
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
STATEMENT OF CASH FLOWS
<P>
FOR THE PERIOD FROM FEBRUARY 10, 1997 (INCEPTION)
TO MARCH 31, 2000
<P>
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
<P>
During the nine months ended March 31, 2000 and for the
cumulative period February 10, 1997 (inception) through
March 31, 2000, the Company did not pay or accrue any
interest or taxes.
<P>
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES
<P>
The Company entered into the following non-cash
transactions:
<P>
During the nine months ended March 31, 2000, the Company
issued 500,000 shares of common stock in connection with
the formation and acquisition of its interest in the
shares of i-RealtyAuction.Com, Inc. The transaction was
valued at $500.
<P>
During the period February 10, 1997 (inception) through
June 30, 1999, the Company issued 9,550,000 post split
shares to its founders and legal counsel for consulting
and legal services valued at $1,500.
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
MARCH 31, 2000
<P>
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
---------------------------------------
<P>
Global Realty Management Group, Inc. ("the Company") was
incorporated on February 10, 1997 under the laws of the
State of Florida. The Company's primary objective is to
position itself to take advantage of real estate
management opportunities. The Company intends to grow
through internal development, strategic alliances and
acquisitions of existing business. The Company commenced
its development stage operations during the fiscal year
ended June 30, 1999.
<P>
INTERIM FINANCIAL STATEMENTS
----------------------------
<P>
The accompanying unaudited financial statements for
the three and nine month periods ended March 31, 2000 and
1999, have been prepared in accordance with generally
accepted accounting principles for interim financial
information with the instructions to Form 10QSB.
Accordingly, they do not necessarily 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 recurring adjustments) considered necessary for
a fair presentation have been included.
<P>
USE OF ESTIMATES
----------------
<P>
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 disclosures of contingent assets and
liabilities as of the date of the financial statements.
Accordingly, actual results could differ from those
estimates.
<P>
CASH AND CASH EQUIVALENTS
-------------------------
<P>
For purposes of reporting cash flows, the company
considers all highly liquid investments purchased with an
original maturity of three months or less to be cash
equivalents.
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
MARCH 31, 2000
<P>
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
-----------------------------------------
<P>
CARRYING VALUES
---------------
<P>
The Company reviews the carrying values of its long-
lived and identifiable intangible assets for possible
impairment. Whenever events or changes in circumstances
indicate that the carrying amount of assets may not be
recoverable, the Company will reduce the carrying value
of the assets and charge operations in the period the
impairment occurs.
<P>
INCOME TAXES
-------------
<P>
The Company utilizes Statement of Financial
Standards ("SFAS") No. 109, "Accounting for Income
Taxes", which requires the recognition of deferred tax
assets and liabilities for the expected future tax
consequences of events that have been included in
financial statements or tax returns. Under this method,
deferred income taxes are recognized for the tax
consequences in future years of differences between the
tax basis of assets and liabilities and their financial
reporting amounts at each period end based on enacted tax
laws and statutory tax rates applicable to the periods in
which the differences are expected to affect taxable
income. Valuation allowances are established when
necessary to reduce deferred tax assets to the amount
expected to be realized. The accompanying financial
statements have no provisions for deferred tax assets or
liabilities.
<P>
INVESTMENT
----------
<P>
The Company acquired a 30% interest in i-
RealtyAuction.Com, Inc. and accounts for the investment
under the equity method (Notes 4 and 8). i-Realty-
Auction.com was inactive during the nine month period
ended March 31, 2000.
<P>
LOSS PER SHARE
--------------
<P>
The Company has adopted SFAS No. 128 "Earnings Per
Share". Basic loss per share is computed by dividing the
loss available to common shareholders by the weighted-
average number of common shares outstanding. Diluted
loss per share is computed in a manner similar to the
basic loss per share, except that the weighted-average
number of shares outstanding is increased to include all
common shares, including those with the potential to be
issued by virtue of warrants, options, convertible debt
and other such convertible instruments. Diluted earnings
per share contemplates a complete conversion to common
shares of all convertible instruments only if they are
dilutive in nature with regards to earnings per share.
Since the Company has incurred losses for all periods,
and since there are no convertible instruments, basic
loss per share and diluted loss per share are the same.
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
MARCH 31, 2000
<P>
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
----------------------------------------
<P>
FAIR VALUE OF FINANCIAL INSTRUMENTS
-----------------------------------
<P>
SFAS No. 107 "Disclosures about Fair Value of
Financial Instruments" requires the disclosure of the
fair value of financial instruments. The Company's
management, using available market information and other
valuation methods, has determined the estimated fair
value amounts. However, considerable judgment is
required to interpret market data in developing estimates
of fair value. Accordingly, the estimates presented
herein are not necessarily indicative of the amounts the
Company could realize in a current market exchange.
<P>
NOTE 2 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
-----------------------------------------
<P>
In April, 1998, the American Institute of Certified
Public Accountants issued Statement of Position No. 98-5,
"Reporting for Costs of Start-Up Activities", ("SOP 98-
5"). The Company is required to expense all start-up
costs related to new operations as incurred. In
addition, all start-up costs that were capitalized in the
past must be written off when SOP 98-5 is adopted. The
Company's adoption did not have a material impact on the
Company's financial position or results of operations.
<P>
SFAS No. 133, "Accounting for Derivative Instruments
and Hedging Activities", is effective for financial
statements issued for fiscal years beginning after June
15, 1999. SFAS No. 133 establishes accounting and
reporting standards for derivative instruments, including
certain derivative instruments embedded in other
contracts, and for hedging activities. Management does
not believe that SFAS No. 133 will have a material effect
on its financial position or results of operations.
<P>
SFAS No. 134, "Accounting for Mortgage-Backed
Securities Retained after The Securitization of Mortgage
Loans Held for Sale by Mortgage Banking Enterprises", is
effective for financial statements issued in the first
fiscal quarter beginning after December 15, 1998. This
statement is not applicable to the Company.
<P>
SFAS No. 135, "Rescission of FASB Statement No. 75
and Technical Corrections", is effective for financial
statements issued for fiscal years beginning February,
1999. This statement is not applicable to the Company.
<P> GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
MARCH 31, 2000
<P>
NOTE 3 - DEVELOPMENT STAGE OPERATIONS AND GOING
CONCERN MATTERS
----------------------------------------
<P>
The Company's initial activities have been devoted
to developing a business plan, negotiating real estate
management contracts and raising capital for future
operations and administrative functions.
<P>
The ability of the Company to achieve its business
objectives is contingent upon its success in raising
additional capital until adequate revenues are realized
from operations.
<P>
NOTE 4 - INVESTMENT IN i-REALTY AUCTION.COM, INC.
----------------------------------------
<P>
During the nine month period ended March 31, 2000,
the Company formed i-RealtyAuction.Com, Inc. along with
another investor I-Incubator.Com, Inc., a related party.
The Company issued 500,000 shares of its common stock to
i-RealtyAuction.Com, Inc., valued at $500, and paid
$30,000 for a 30% interest in i-RealtyAuction.Com, Inc.
I-Incubator.Com, Inc. received a 70% interest in i-
RealtyAuction.Com, Inc. in exchange for services valued
at $700. i-RealtyAuction.Com, Inc. is a development
stage company and has not commenced operations. i-
RealtyAuction.Com, Inc. intends to market, auction and
provide other related real estate transactions through an
internet website.
<P>
NOTE 5 - DEFERRED INCOME TAXES
---------------------
<P>
The Company has a carry-forward loss for income tax
purposes of $73,489 as of March 31, 2000 that may be
offset against future taxable income. The carry-forward
loss expires at various times through the year 2019. Due
to the uncertainty regarding the success of future
operations, management has recorded a valuation allowance
equal to 100% of the related deferred tax asset.
<P>
NOTE 6 - ACCRUED EXPENSES
-----------------
<P>
Accrued expenses consisted of the following:
<TABLE>
<S> <C> <C>
3/31/00 6/30/99
----------------------------------------
Accrued legal fees $ 9,751 $ 10,000
Accrued accounting fees 4,700 3,000
----------------------------------------
Total accrued expenses 14,451 $ 13,000
========================================
</TABLE>
<PAGE>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
MARCH 31, 2000
<P>
NOTE 7 - STOCKHOLDERS' EQUITY
---------------------
<P>
The Company issued 100,000 restricted common shares
each to Joseph Spitzer (President) and Michael D. Farkas
(Vice President, Treasurer, Secretary), the Company's
sole officers and directors, in consideration for
management services valued at $1,000. These individuals
are deemed to be founders of the Company.
<P>
On March 25, 1999, the Directors authorized a
forward split of 47,500 to 1 on its common stock.
Immediately following the split the founders owned
9,500,000 restricted common shares.
<P>
On March 26, 1999, the Company entered into a
private offering of securities pursuant to Regulation D,
Rule 504, promulgated by the Securities Act of 1933.
Common stock was offered to non-accredited investors for
cash consideration of $.20 per share. 500,000 shares
were issued to 25 unaffiliated investors. That offering
is now closed.
<P>
In June 1999, the Company engaged legal counsel for
services relating to SEC filings and related
documentation. The fees to be paid for these services
are estimated to be $15,500. In addition, the Company
issued 50,000 shares of common stock (valued at $500) as
additional payment for the services rendered.
<P>
On December 6, 1999 the Company issued 500,000
restricted common shares in connection with the formation
of I-RealtyAuction.Com, Inc. valued at par $500 (see Note
4).
<P>
NOTE 8 - RELATED PARTY TRANSACTIONS
--------------------------
<P>
In April 1999, the Company agreed to reimburse Atlas
Equity Group, Inc., a related party, $1,000 per month (on
a month-to-month basis) for operating and administrative
expenses. Atlas Equity Group, Inc. is owned by Michael
D. Farkas. For the nine month period ended March 31,
2000, $8,000 was expensed in the accompanying financial
statements.
<P>
<PAGE>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
MARCH 31, 2000
<P>
NOTE 8 - RELATED PARTY TRANSACTIONS (CONT'D)
-----------------------------------
<P>
In April, 1999 the Company agreed to reimburse
Allstate Realty Associates, a related party, $500 per
month (on a month-to-month basis) for operating and
administrative expenses. Allstate Realty Associates is
owned by Joseph Spitzer. For the nine month period ended
March 31, 2000, $5,000 was expensed in the accompanying
financial statements.
<P>
In December, 1999 the Company issued 500,000 shares of
common stock and paid $30,000 in connection with the
formation and acquisition of a 30% interest in i-
RealtyAuction.com, Inc. 70% of i-RealtyAuction.Com, Inc.,
is owned by i-Incubator.Com, Inc. a related party. I-
Incubator.Com, Inc. exchanged consulting services valued
at $700 for its 70% interest in i-RealtyAuction.Com, Inc.
<P>
Item 2. Management's Discussion and Analysis
-----------------------------------------------
<P>
The following discussion and analysis should be read in
conjunction with the financial statements of the Company
and the accompanying notes appearing subsequently under
the caption "Financial Statements."
<P>
The following discussion and analysis contains forward-
looking statements, which involve risks and
uncertainties. The Company's actual results may differ
significantly from the results, expectations and plans
discussed in these forward-looking statements.
<P>
During the past years the Company has spent considerable
time and capital resources defining and developing its
strategic plan operating in the property management,
development, construction, and leasing industries.
The Company's operations have been devoted primarily to
developing a business plan and raising capital for future
operations and administrative functions. The Company
intends to grow through internal development, strategic
alliances, and acquisitions of existing businesses.
Because of uncertainties surrounding its development, the
Company anticipates incurring development stage losses in
the foreseeable future. The ability of the Company to
achieve its business objectives is contingent upon its
success in raising additional capital until adequate
revenues are realized from operations.
<P>
Development stage expenses during the nine months ended
March 31, 2000 were greater than the comparable period of
February 10, 1997 (Inception) through March 31, 1999,
increasing from $36,805 to $64,989 or a 56.73% increase.
The expenses incurred were primarily due to various
consulting, managerial professional services in
connection with its Form 10 filing and in connection with
its pursuit of the Company's objectives. This was in
part the result of consulting and professional fees
necessitated by operating in a public environment and an
agreement between the Company and Atlas Equity Group,
Inc. (Owned by Michael D. Farkas, a related party) for
shared office and rent expenses. On-going increases to
development stage expenses are anticipated.
<P>
PART II. - OTHER INFORMATION
<P>
Item 1. LEGAL PROCEEDINGS
Not applicable
<P>
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Not applicable
<P>
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable
<P>
Item 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY
HOLDERS
Not applicable
<P>
Item 5. OTHER INFORMATION
None
<P>
Item 6. EXHIBITS AND REPORTS OF FORM 8K
None
<P>
SIGNATURES
<P>
In accordance with the requirements of the Exchange Act,
the registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
Date: August 9, 2000 /s/ Michael D. Farkas
----------------------------------
Michael D. Farkas
Vice President & Treasurer
<P>
