U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 0-26027
DATIGEN.COM, INC.
(Exact name of small business issuer as specified in its
charter)
Utah 87-0626333
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
887 W. Center Street, Orem, Utah 84057
(Address of principal executive offices)
(801) 229-1288
(Issuer's telephone number)
Not Applicable
(Former name, address and fiscal year, if changed since last report)
Check whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the issuer
was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [ X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13, or 15(d) of the
Exchange Act subsequent to the distribution of securities under
a plan confirmed by a court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's
classes of common equity, as of June 30, 2000: 825,000 shares
of common stock.
Transitional Small Business Format: Yes [ ] No [ X ]
Documents incorporated by reference: None
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FORM 10-QSB
DATIGEN.COM, INC.
INDEX
Page
PART I. Financial Information 3
Balance Sheets for the Period Ending June
30, 2000 (unaudited) 4
Statement of Operations from February 10,
1999 (Date of Inception) to June 30,
1999, for the Three Months Ended June 30,
2000 and 1999 and for the Six Months
Ended June 30, 2000 and Cumulative
Amounts from Inception (unaudited) 5
Statement of Cash Flows from February 10,
1999 (Date of Inception) to June 30, 1999
and for the Six Months Ended June 30,
2000 and Cumulative Amounts from
Inception (unaudited) 6
Notes to Financial Statements 7
Management's Discussion and Analysis of
Financial Condition 8
PART II. Exhibits and Repots on Form 8-K 9
Signatures 10
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PART I.
Financial Information
In the opinion of management, the accompanying unaudited
financial statements included in this Form 10-QSB reflect all
adjustments (consisting only of normal recurring accruals)
necessary for a fair presentation of the results of operations
for the periods presented. The results of operations for the
periods presented are not necessarily indicative of the results
to be expected for the full year.
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Balance Sheet
June 30, 2000
(Unaudited)
Assets
Current assets:
Cash
$11,773
Marketable securities
100,000
Accounts receivable 5,405
Notes receivables 762,828
Prepaid expenses 1,365
Total current assets 881,371
Property and equipment, net of accumulated
depreciation of $4,957 37,422
Technology, net of accumulated amortization of
$45,000 405,000
Total assets $1,323,793
Liabilities and Stockholders= Equity
Current liabilities -
Accounts payable and accrued liabilities $1,102
Stockholders= equity:
Common stock, no par value, 50,000,000 shares
authorized;
825,000 shares issued and outstanding 1,465,100
Unrealized holding gain 50,000
Accumulated deficit (192,409)
Total stockholders= equity 1,322,691
Total liabilities and stockholders'
equity $1,323,793
See accompanying notes to financial statements.
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Statement of Operations
(Unaudited)
February
Three Months Ended Six Months 10, 1999 Cumulative
June 30, Ended (Date of Amounts
June 30, Inception) From
to June 30,
2000 1999 2000 1999 Inception
Revenue:
Sales $ 7,440 $ - $ 15,440 $ - $ 15,440
Interest 26,594 22,693 45,688 25,595 129,883
34,034 22,693 61,128 25,595 145,323
Expenses:
General and
administrative
expenses (146,064) (14,351) (249,682) (39,852) (337,732)
(Loss) income before
income taxes (112,030) 8,342 (188,554) (14,257) (192,409)
Income tax expense - - - - -
Net (loss) income $(112,030) $8,342 $(188,554) $(14,257) $(192,409)
Net (loss) income per
share - basic and
diluted $(.14) $(.01) $(.23) $(.02) $(.28)
Weighted average common
shares 825,000 625,000 822,000 625,000 695,000
See accompanying notes to financial statements.
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Statement of Cash Flows
(Unaudited)
Six February 10,
Months 1999 (Date of Cumulative
Ended Inception) to Amounts
June 30, June 30, From
2000 1999 Inception
Cash flows from operating
activities:
Net loss $(188,554) $(14,257) $(192,409)
Adjustments to reconcile net
loss to net cash (used in) provided
by operating activities:
Depreciation and amortization 48,872 235 49,957
Issuance of below market warrants - 20,500 20,500
Increase in:
Prepaid expenses (1,365) - (1,365)
Accounts receivable (5,405) - (5,405)
Accounts payable and accured
liabilties 544 298 1,102
Net cash (used in) provided by
operating activities (145,908) 6,776 (127,620)
Cash flows from investing
activities:
Purchase of marketable securities (50,000) (50,000)
Purchase of equipment (14,498) (4,138) (42,379)
Decrease (increase) in notes
receivable 200,000 (969,224) (762,828)
Net cash provided by (used in)
investing activities 135,502 (973,362) (855,207)
Cash flows from financing activities -
issuance of common stock - 994,600 994,600
Net (decrease) increase in cash (10,406) 28,014 11,773
Cash, beginning of period 22,179 - -
Cash, end of period $11,773 $28,104 $11,773
See accompanying notes to financial statements.
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Notes to Financial Statements
(1) The unaudited financial statements include the accounts of
Datigen.com and include all adjustments (consisting of
normal recurring items) which are, in the opinion of
management, necessary to present fairly the financial
position as of June 30, 2000 and the results of operations
and cash flows for the six months ended June 30, 2000, and
period from February 10, 1999 (date of inception) to June
30, 1999, and cumulative amounts since inception. The
results of operations for the six months ended June 30, 2000
are not necessarily indicative of the results to be expected
for the entire year.
(2) (Loss) per common share is based on the weighted average
number of shares outstanding during the period.
(3) During the six months ended June 30, 2000, the Company
issued 200,000 shares of common stock in exchange for
technology of $450,000.
The Company has not paid any cash for interest or income
taxes since inception.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION
Forward-Looking Statements
This Form 10-QSB includes, without limitation, certain
statements containing the words "believes", "anticipates",
"estimates", and words of a similar nature, constitute "forward-
looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. This Act provides a "safe harbor"
for forward-looking statements to encourage companies to provide
prospective information about themselves so long as they identify
these statements as forward looking and provide meaningful,
cautionary statements identifying important factors that could
cause actual results to differ from the projected results. All
statements other than statements of historical fact made in this
Form 10-QSB are forward-looking. In particular, the statements
herein regarding industry prospects and future results of
operations or financial position are forward-looking statements.
Forward-looking statements reflect management's current
expectations and are inherently uncertain. The Company's actual
results may differ significantly from management's expectations.
Results of Operations
Three Month periods Ended June 30, 2000 and 1999.
The Company recognized $34,034 and $22,693 in revenue for
the three month periods ended June 30, 2000 and 1999,
respectively. The increase in revenue is attributed to sales of
$7,440 and interest of $26,594 for the three months ended June
30, 2000 compared to interest of $22,693 for the three months
ended June 30, 1999.
General and administrative expenses for the three month
periods ended June 30, 2000 and 1999 consisted of general
corporate administration, legal and professional expenses, and
accounting costs. These expenses were $146,064 and $14,351 for
the three month periods ended June 30, 2000 and 1999,
respectively. The increase in general and administrative
expenses is attributed to increasing the number of employees and
relocating office facilities.
As a result of the foregoing factors, the Company realized a
net loss of $112,030 for the three months ended June 30, 2000
compared to a net gain of $8,342 for the three months ended June
30, 1999. The loss is attributed to the Company's expansion and
growth.
Period of Inception on February 1999 to June 30, 1999 and for the
Six Months Ended June 30, 2000.
The Company recognized $61,128 in revenue for the six months
ended June 30, 2000 compared to $25,595 for the period from
inception to June 30, 1999. The increase in revenue is
attributed to sales of $15,440 and interest of $45,688 for the
six-months ended June 30, 2000 compared to interest of $25,595
for the period from inception to June 30, 1999.
General and administrative expenses for the six month period
ended June 2000 and for the period from inception to June 30,
1999 consisted of general corporate administration, legal and
professional expenses, and accounting costs. These expenses were
$249,682 for the six months ended June 30, 2000 and $39,852 for
the period from inception to June 30, 1999. The increase in
general and administrative expenses is attributed to increasing
the number of employees and relocating office facilities.
The Company's cash is invested in short-term, mortgage
loans. Net cash provided by investing activities was $135,502
for the six months ended June 30, 2000 as compared to net cash
used in investing
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activities was $973,362 for the period from inception to June 30,
1999. The loss is attributed to an increase in general and
administrative expenses.
As a result of the foregoing factors, the Company realized a
net loss $188,554 for the six months ended June 30, 2000 compared
to a net loss of $14,257 for the period from inception to June
30, 1999. The loss is attributed to the Company's expansion and
growth.
Liquidity and Capital Resources
At June 30, 2000, the Company had cash of $11,773, accounts
receivable of $5,405, and notes receivable of $762,828.
Additional assets include $37,422 in property and equipment, net
of accumulated depreciation of $4,957, technology valued at
$405,000 and net of accumulated amortization of $45,000.
Current liabilities include accounts payable and accrued
liabilities of $1,102.
Management believes that the Company has sufficient cash and
short-term investments to meet the anticipated needs of the
Company's operations through at least the next 12 months. In
addition, the Company is now realizing product sales which the
Company anticipates will generate adequate revenue to continue
operations and expansion. However, there can be no assurances to
that effect, as the Company has no significant revenues and the
Company's need for capital may change dramatically as it attempts
to implement its proposed business to provide internet mailing
and advertising services. The Company's current operating plan
is to (i) pursue implementation of its proposed internet
business, and (ii) handle the administrative and reporting
requirements of a public company. At present, the Company is
still conducting a market evaluation of its internet business,
and does not propose to roll-out marketing efforts for its
service until that evaluation is complete. There can be no
assurance that the Company will be successful in establishing its
internet business.
PART II. OTHER INFORMATION
EXHIBITS AND REPORTS ON FORM 8-K.
REPORTS ON FORM 8-K: None
EXHIBITS: Included only with the electronic filing of this report
is the Financial Data Schedule for the Six Month Period Ended
June 30, 2000 (Exhibit ref. No. 27).
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SIGNATURES
In accordance with the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned
thereunto duly authorized.
DATIGEN.COM, INC.
Date: August 10, 2000 By: /s/ Steven Lloyd, President
Date: August 10, 2000 By: /s/Joseph Ollivier, Chief Financial Officer
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