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 September 30, 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 November 8,
2000 was 10,550,000.
<P>
<PAGE>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
FORM 10QSB
<P>
PERIOD ENDED SEPTEMBER 30, 2000
<P>
PART 1
<P>
ITEM 1. FINANCIAL STATEMENTS - GLOBAL REALTY
MANAGEMENT GROUP, INC.(A DEVELOPMENT STAGE
COMPANY) FOR THE THREE MONTHS ENDED -
SEPTEMBER 30, 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)
September 30, 2000 June 30, 1999
---------------------------------------
CURRENT ASSETS:
<P>
Cash $ 1,203 $ 2,733
Prepaid expenses 1,500 1,500
----------------------------------
Total Current Assets 2,703 4,233
<P>
Investment in i-Realty Auction.Com, Inc. 30,500 30,500
----------------------------------
TOTAL ASSETS $ 33,203 $ 34,733
<P>
LIABILITIES AND STOCKHOLDERS' EQUITY
<P>
CURRENT LIABILITIES:
<P>
Accounts payable and accrued expenses $ 21,839 $ 14,587
----------------------------------
Total Current Liabilities 21,839 14,587
<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 (99,136) (90,354)
---------------------------------
Total Stockholders' Equity 11,364 20,146
---------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $33,203 $ 34,733
=================================
<P>
The accompanying notes are an integral part of these financial statements.
<P>
</TABLE>
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
STATEMENTS OF OPERATIONS
<P>
(Unaudited)
<TABLE>
<S> <C> <C> <C>
FOR THE PERIOD
THREE MONTH ENDED FEBRUARY 10, 1997
SEPTEMBER 30, (INCEPTION) TO
2000 1999 SEPTEMBER 30, 2000
------------------------------------------------------------------
DEVELOPMENT STAGE REVENUES $ 0 $ 0 $ 0
<P>
DEVELOPMENT STAGE EXPENSES:
<P>
Organization cost $ 0 $ 40 $ 964
Accounting fees 2,500 2,100 24,800
Advertising 0 0 848
Bank Charges 0 0 130
Consulting fees 0 0 10,000
Courier 137 0 226
Licenses and taxes 0 0 1,407
Office expenses 4,530 4,500 28,193
Legal fees 1,615 50 23,212
-----------------------------------------------------------------
TOTAL DEVELOPMENT
STAGE EXPENSES 8,782 6,690 89,780
-----------------------------------------------------------------
LOSS FOR THE PERIOD $ (8,782) $ (6,690) $ (89,780)
==================================================================
LOSS PER COMMON SHARE
<P>
Basic $(0.00083) $ (0.00067) $ (0.0091)
==================================================================
Diluted N/A N/A N/A
==================================================================
Weighted-average
number of
common shares
outstanding 10,550,000 10,050,000 9,841,234
==================================================================
<P>
The accompanying notes are an integral part of these financial statements.
</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 SEPTEMBER 30, 2000
<P>
<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
==================================================================
<P>
The accompanying notes are an integral part of these financial statements.
</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>
March 25, 1999
Forward stock split
47,500 to 1 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>
Deficit accumulated
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
=====================================================================
<P>
The accompanying notes are an integral part of these financial statements.
<P>
</TABLE>
<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>
<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>
Deficit accumulated
during development
stage for the
year ended
June 30, 2000 0 0 0 (45,668) (45,668)
<P>
Deficit accumulated
during the development
stage for the three
months ended
September 30, 2000 0 0 0 (8,782) (8,782)
--------------------------------------------------------------------
Balance,
September 31, 2000 10,550,000 $ 10,550 $ 99,950 $(99,136) 11,364
====================================================================
<P>
The accompanying notes are an integral part of these financial statements.
<P>
</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
THREE MONTHS ENDED FEBRUARY 10, 1997
SEPTEMBER 30, (INCEPTION) TO
2000 1999 SEPTEMBER 30, 2000
------------------------------------------------
OPERATING ACTIVITIES:
Deficit accumulated during
the development stage $ (8,782) $ (6,691) $ (99,136)
<P>
Adjustments to reconcile
net loss to net cash
used by operations:
(Increase) Decrease in
Organization cost 0 40 0
(Increase) Decrease in
prepaid expenses 0 1,000 (1,500)
Increase (Decrease) in
accounts payable and
Accrued expenses 7,252 76 21,839
------------------------------------------------
Net Cash Used by Operating Activities (1,530) (5,575) (78,797)
------------------------------------------------
INVESTING ACTIVITIES:
Investment in i-RealtyAuction.Com, Inc. 0 0 (30,500)
------------------------------------------------
Net Cash Used in Investing Activities 0 0 (30,500)
------------------------------------------------
FINANCING ACTIVITIES:
Proceeds from the issuance
of common stock 0 0 10,500
Proceeds from Additional
Paid in Capital 0 0 99,950
------------------------------------------------
Net Cash Provided By Financing Activities 0 0 110,500
------------------------------------------------
Increase (decrease) in cash (1,530) (5,575) 1,203
------------------------------------------------
Cash, Beginning of year 2,733 76,760 0
------------------------------------------------
Cash, End of quarter $ 1,203 $ 71,185 $ 1,203
================================================
<P>
The accompanying notes are an integral part of these
financial statements.
<P>
</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 three months ended September 30, 2000 and
1999, and for the cumulative period February 10, 1997
(inception) through September 30, 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 period February 10, 1997 (inception through
September 30, 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
September 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>
SEPTEMBER 30, 2000
<P>
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
-------------------------------------
<P>
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>
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>
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>
GLOBAL REALTY MANAGEMENT GROUP, INC
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
SEPTEMBER 30, 2000
<P>
NOTE 1 - NATURE OF ORGANIZATION AND SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
----------------------------------------
<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
three month period ended September 30, 2000.
<P>
NET 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>
SEPTEMBER 30, 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>
SEPTEMBER 30, 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 - OTHER ASSETS
------------
<P>
During the year ended June 30, 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-Realty
Auction.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 - INCOME TAXES
------------
<P>
No provisions for income taxes have been made
because the Company has sustained cumulative losses since
the commencement of operations. For the three month
period ended September 30, 2000 and year ended June 30,
2000, the Company had net operating loss carryforwards
("NOL's") of $8,782 and $45,668, respectively, which will
be available to reduce future taxable income and expense
in the year ending September 30 and June 30, 2015
respectively.
<P>
In accordance with SFAS No. 109 the Company has
computed the components or deferred income taxes as
follows.
<TABLE>
<S> <C> <C>
September 30, June 30,
2000 2000
--------------------------------------
Deferred tax assets $ 3,469 $ 18,039
Valuation allowance (3,469) (18,039)
--------------------------------------
Deferred tax asset, net $ - $ -
======================================
</TABLE>
<P>
INCOME TAXES (continued)
-------------------------
<P>
At September 30, 2000 and June 30, 2000, a valuation
allowance has been provided and realization of the
deferred tax benefit is not likely.
<P>
The effective tax rate varies from the U.S. Federal
statutory tax rate for both the three month periods ended
September 30, 2000 and 1999, principally due to the
following:
<P>
U.S. statutory tax rate 34.0%
State and local taxes 5.5
Valuation (39.5)
--------
Effective rate - %
========
<P>
NOTE 6 - ACCOUNTS PAYABLE & ACCRUED EXPENSES
-----------------------------------
<P>
Accounts payable and accrued expenses at
September 30, 2000 & June 30, 2000 respectively consisted
of the following:
<TABLE>
<S> <C> <C>
September 30, June 30,
2000 2000
---------------------------------
Accounting fees $ 9,500 $ 7,000
Legal fees 9,103 7,487
Operating Expenses 3,136 -
Due to Shareholders 100 100
---------------------------------
$ 21,839 $ 14,587
=================================
</TABLE>
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
SEPTEMBER 30, 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 three month periods ended September
30, 2000 and 1999, $3,000 and $3,000 respectively, are
included as expense in the accompanying financial
statements.
<P>
GLOBAL REALTY MANAGEMENT GROUP, INC.
<P>
(A DEVELOPMENT STAGE COMPANY)
<P>
NOTES TO FINANCIAL STATEMENTS
<P>
SEPTEMBER 30, 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 three month period
ended September 30, 2000 and 1999 $1,500 and $1,500
respectively, are included as expense in the accompanying
financial statement.
<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-Realty
Auction.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>
NOTE 9 - SUBSEQUENT EVENTS
-----------------
<P>
On October 6 and November 2, 2000 the company borrowed
$15,000 and $4,500, respectively from Ostonian Securities
Limited. The borrowings bear interest of 8 1/4 % per
annum. Interest and principal balances are due on
October 5 and November 1, 2001, respectively. Michael D.
Farkas is an advisor to Ostonian Securities.
<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.
<P>
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 three months ended
September 30, 2000 were $8,782 as compared to $6,690 for
the period ended September 30, 1999. For the period of
February 10, 1997 (Inception) through September 30, 2000
development stage expenses totaled $89,780. 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, as well as professional fees
incurred in connection with the Company's annual and
quarterly regulatory filings. On-going increases to
development stage expenses are anticipated.
<P>
Liquidity and Capital Resources
---------------------------------
<P>
Despite capital contributions and both related party and
third party loan commitments, the company from time to
time experienced, and continues to experience, cash flow
shortages that have slowed the Company's growth.
<P>
The Company has primarily financed its activities from
sales of capital stock of the Company and from loans from
related and third parties. A significant portion of the
funds raised from the sale of capital stock has been used
to cover working capital needs such as office expenses
and various consulting fees.
<P>
The Company continues to experience cash flow shortages,
and anticipates this continuing through the foreseeable
future. Management believes that additional funding will
be necessary in order for it to continue as a going
concern. The Company is investigating several forms of
private debt and/or equity financing, although there can
be no assurances that the Company will be successful in
procuring such financing or that it will be available on
terms acceptable to the Company.
<P>
Year 2000 Impact Statement
--------------------------
<P>
The Company has analyzed operations in the property
management, development, construction, and leasing
industries to determine the needs of the Company to
manage residential and office properties. The Company
has professionals experienced in all aspects of
residential real estate, commercial real estate,
management and development agreements in the normal
course of its business and believes those arrangements
are sufficient to handle any minor issues that may arise
as a result of the Year 2000, if any. The Company also
intends to create hard copy of all year-end accounting
and management reports, in the ordinary course of
business, which will serve as a back up of such data if
needed.
<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>
/s/ Joseph Spitzer
----------------------------------
Joseph Spitzer
President & CEO
Date: November 9, 2000
<P>
/s/ Michael D. Farkas
----------------------------------
Michael D. Farkas
Vice President & Treasurer
<P>
Date: November 9, 2000
<P>
