U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ TO
______________
COMMISSION FILE NUMBER: 000-26051
TheInternetCorp.net, Inc.
(Exact name of registrant as specified in its charter)
Nevada 88-0424430
(State or jurisdiction of incorporation I.R.S. Employer
or organization Identification No.)
3700 Susan St., Ste. 200, Santa Ana, CA 92704
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (949) 770-2578; Fax: 603-375-6582
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $0.001 Par Value
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) been subject to such
filing requirements for the past 90 days. Yes X No
As of September 30, 2000, the Registrant had 12,160,000 shares of common stock
issued and outstanding.
Transitional Small Business Disclosure Format (check one):
Yes No ___X___.
PART I.
ITEM 1. FINANCIAL STATEMENTS.
TheInternetCorp.net, Inc.
(A Development Stage Company)
BALANCE SHEET
September 30, 2000
(Unaudited)
Three Months Ended
September 30, 2000
------------------
ASSETS
CURRENT ASSETS:
Cash $ 1,907
Accounts Receivable $ 667
Other Investments $ 50,000
TOTAL CURRENT ASSETS $ 52,574
ORGANIZATIONAL COSTS, NET $ 0
TOTAL ASSETS $ 52,574
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable $ 2,450
TOTAL CURRENT LIABILITIES $ 2,450
LONG-TERM DEBT $ 0
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value
authorized 50,000,000 shares issued
and outstanding at September 30, 2000
12,160,000 shares $ 12,160
Stock Subscription Receivable $ (765)
Additional paid in Capital $ 37,057
Earnings Accumulated During Development Stage $ 1,672
TOTAL STOCKHOLDERS' EQUITY $ 50,124
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 52,574
See accompanying notes to interim financial statements
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TheInternetCorp.net, Inc.
(A Development Stage Company)
STATEMENT OF OPERATIONS
Three Months Ended on September 30, 2000
(Unaudited)
From Inception
Three Months Ended 4/29/99 to
September 30, 2000 September 30, 2000
------------------ ------------------
INCOME:
Revenue $ 0 $ 6,662
TOTAL INCOME $ 0 $ 6,662
EXPENSES:
General, and Administrative $ 1,692 $ 5,001
Amortization $ 0 $ 0
Total Expenses $ 1,692 $ 5,001
Net Profit/Loss(-) From Operations $ 1,692 $ 1,661
Interest Income $ 11 $ 11
INCOME (LOSS) BEFORE INCOME TAXES $ (1,681) $ 1,672
Provision for income tax $ 0 $ 0
NET INCOME (LOSS) $ (1,681) $ 1,672
NET INCOME (LOSS) PER SHARE-BASIC AND DILUTED $ 0.00 $ 0.00
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING 12,160,000 12,160,000
See accompanying notes to interim financial statements
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TheInternetCorp.net, Inc.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
Three Months and Period From Inception
Ended on September 30, 2000
(Unaudited)
Three Months Period From
Ended Inception 4/29/1999
Through September 30, 2000
September 30, 2000
------------------ -------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (Loss) Income: $ (1,681) $ 1,672
Decrease (Accts Payable) (5,000) (5,000)
Net Cash (Used) In Operating
Activities $ (6,681) $ (3,328)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of organizational
Costs $ 0 $ 0
CASH FLOWS FROM FINANCING
ACTIVITIES
Issuance of common stock for
Cash $ 5,000 $ 5,235
Net Increase in Cash $ (1,681) $ 1,907
Cash, Beginning of Period $ 3,588 $ 0
Cash, End of Period $ 1,907 $ 1,907
See accompanying notes to interim financial statements
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[CAPTION]
TheInternetCorp.net, Inc.
(A Development Stage Company)
NOTES TO INTERIM CONSOLIDATED
FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.
Basis of Presentation.
The information including in the condensed financial statements is unaudited,
but includes all adjustments (consisting of normal recurring items) which are,
in the opinion of management, necessary for a fair representation of the
interim period presented.
Development Stage Company.
TheInternetCorp.net, Inc. is a new enterprise in the development stage as
defined by Statement No. 7 of the Financial Accounting Standards Board and has
not engaged in any business other than organizational efforts. It has no
full-time employees and owns no real property. TheInternetCorp.net, Inc.
intends to seek to acquire one or more existing businesses which have existing
management, through merger or acquisition, that may have potential for profit,
and to that end, intends to acquire properties or businesses, or a controlling
interest therein. Management of TheInternetCorp.net, Inc. will have virtually
unlimited discretion in determining the business activities in which
TheInternetCorp.net, Inc. might engage.
Accounting Method.
TheInternetCorp.net, Inc. records income and expenses on the accrual method.
Fiscal Year.
TheInternetCorp.net, Inc. has selected a December 31 fiscal year end.
Loss Per Share.
Loss per share was computed using the weighted number of shares outstanding
during the period.
Organization Costs.
Costs to incorporate TheInternetCorp.net, Inc. have been expensed as incurred.
Statement of Cash Flows.
For purposes of the statement of cash flows, TheInternetCorp.net, Inc.
considers all highly liquid debt instruments purchased with an original
maturity of three months or less to be cash equivalents.
Use of Estimates.
The preparation of TheInternetCorp.net, Inc.'s financial statements in
conformity with generally accepted accounting principles requires
TheInternetCorp.net, Inc.'s management to make estimates and assumptions that
effect the amounts reported in these financial statements and accompanying
notes. Actual results could differ from those estimates.
Stock Basis.
Shares of common stock issued for other than cash have been assigned amounts
equivalent to the fair value of the service or assets received in exchange.
2. STOCKHOLDERS' EQUITY.
Common Stock.
The authorized common stock of TheInternetCorp.net, Inc. consists of
50,000,000 shares with a par value of $0.001 per share. As of September 30,
2000 TheInternetCorp.net, Inc. had 12,160,000 shares outstanding.
Preferred Stock.
The authorized Preferred Stock of TheInternetCorp.net, Inc. consists of
10,000,000 shares with a par value of $0.001 per share. No preferred shares
have been issued.
3. INCOME TAXES.
There is no provision for income taxes for the period ended April 29, 1999
(inception) to September 30, 2000 due to the zero net income and no Nevada
state Income tax in the state of TheInternetCorp.net, Inc.'s domicile.
ITEM 2. PLAN OF OPERATION.
The following discussion should be read in conjunction with the financial
statements of TheInternetCorp.net, Inc. and notes thereto contained elsewhere
in this report.
Initial Operation.
Up to the present time, TheInternetCorp.net, Inc. has only been in the
organizational phase. Over the next 12 months TheInternetCorp.net, Inc.
intends to concentrate its efforts into development and enhancement of the
RiderNews website (www.ridernews.com). These changes will include additional
information and articles of interest to the motorcycle enthusiast.
TheInternetCorp.net, Inc. will also be seeking to enhance its advertising
revenues by the placement of additional advertising on the website.
TheInternetCorp.net, Inc. will need to raise additional capital in order to
continue its operations. Such financing will probably take the form of a
combination of debt and equity financing. However, there is no guarantee that
such financing will be available at all or on such terms as will be acceptable
to TheInternetCorp.net, Inc.
Currently, TheInternetCorp.net, Inc. does not plan to make significant
equipment purchases in the next 12 months in order to implement its plan of
operation. Also, it does not plan over such period to significantly change
the number of employees.
Liquidity and Capital Resources.
During the three month period ended September 30, 2000, TheInternetCorp.net,
Inc. continued its status as a development company. TheInternetCorp.net, Inc.
is continuing to incur limited development expenses, is deriving no revenues,
and has experienced an ongoing deficiency in working capital.
TheInternetCorp.net, Inc.'s continued existence is dependent on its ability to
obtain additional financing to proceed with its plan of operation
Capital Expenditures.
No material capital expenditures were made during the quarter ended on
September 30, 2000.
Year 2000 Issue.
The Year 2000 issue arises because many computerized systems use two digits
rather than four to identify a year. Date sensitive systems may recognize the
year 2000 as 1900 or some other date, resulting in errors when information
using the year 2000 date is processed. In addition, similar problems may
arise in some systems which use certain dates in 1999 to represent something
other than a date. The effects of the Year 2000 issue may be experienced
before, on, or after January 1, 2000, and if not addressed, the impact on
operations and financial reporting may range from minor errors to significant
system failure which could affect TheInternetCorp.net, Inc.'s ability to
conduct normal business operations. This creates potential risk for all
companies, even if their own computer systems are Year 2000 compliant. It is
not possible to be certain that all aspects of the Year 2000 issue affecting
TheInternetCorp.net, Inc., including those related to the efforts of
customers, suppliers, or other third parties, will be fully resolved.
TheInternetCorp.net, Inc. currently believes that its systems are Year 2000
compliant in all material respects. Although management is not aware of any
material operational issues or costs associated with preparing its internal
systems for the Year 2000, TheInternetCorp.net, Inc. may experience serious
unanticipated negative consequences or material costs caused by undetected
errors or defects in the technology used in its internal systems.
TheInternetCorp.net, Inc.'s Year 2000 plans are based on management's best
estimates.
Forward Looking Statements.
The foregoing Management's Discussion and Analysis contains "forward looking
statements" within the meaning of Rule 175 under the Securities Act of 1933,
as amended, and Rule 3b-6 under the Securities Act of 1934, as amended,
including statements regarding, among other items, TheInternetCorp.net,
Inc.'s business strategies, continued growth in TheInternetCorp.net, Inc.'s
markets, projections, and anticipated trends in TheInternetCorp.net, Inc.'s
business and the industry in which it operates. The words "believe,"
"expect," "anticipate," "intends," "forecast," "project," and similar
expressions identify forward-looking statements. These forward-looking
statements are based largely on TheInternetCorp.net, Inc.'s expectations and
are subject to a number of risks and uncertainties, certain of which are
beyond TheInternetCorp.net, Inc.'s control. TheInternetCorp.net, Inc.
cautions that these statements are further qualified by important factors that
could cause actual results to differ materially from those in the forward
looking statements, including, among others, the following: reduced or lack of
increase in demand for TheInternetCorp.net, Inc.'s products, competitive
pricing pressures, changes in the market price of ingredients used in
TheInternetCorp.net, Inc.'s products and the level of expenses incurred in
TheInternetCorp.net, Inc.'s operations. In light of these risks and
uncertainties, there can be no assurance that the forward-looking information
contained herein will in fact transpire or prove to be accurate.
TheInternetCorp.net, Inc. disclaims any intent or obligation to update
"forward looking statements".
PART II.
ITEM 1. LEGAL PROCEEDINGS.
TheInternetCorp.net, Inc. is not a party to any material pending legal
proceedings and, to the best of its knowledge, no such action by or against
TheInternetCorp.net, Inc. has been threatened.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
On September 7, 2000, we sold 100,000 restricted shares to Villa Nova
Management Co., Inc. for services. The issuance of such shares was exempt
from registration under the Securities Act of 1933 by reason of Sections 4(2)
as a private transaction not involving a public distribution.
In connection with this private transaction of our securities listed
above, we believe that the purchaser (i) was aware that the securities had not
been registered under federal securities laws, (ii) acquired the securities for
its own account for investment purposes and not with a view to or for resale in
connection with any distribution for purpose of the federal securities laws,
(iii) understood that the securities would need to be indefinitely held unless
registered or an exemption from registration applied to a proposed disposition
and (iv) was aware that the certificate representing the securities would bear
a legend restricting their transfer. We believe that, in light of the
foregoing, the sale of our securities to the respective acquirer did not
constitute the sale of an unregistered security in violation of the federal
securities laws and regulations by reason of the exemptions provided under
Sections 4(2) of the Securities Act, and the rules and regulations promulgated
thereunder.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not Applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Reports on Form 8-K. None
(b) Exhibits included or incorporated by reference herein: See Exhibit Index
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) 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.
TheInternetCorp.net, Inc.
Dated: November 7, 2000 By:/s/ Karen Bohringer
--------------------------
Karen Bohringer, President
[CAPTION]
EXHIBIT INDEX
Exhibit
No. Description
-------- -----------------------------------
27 Financial Data Schedule (see below).
[TYPE]EX-27
<SEQUENCE>2
[DESCRIPTION]FINANCIAL DATA SCHEDULE
[ARTICLE]5
[MULTIPLIER]1
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-2000
[PERIOD-START] JUL-01-2000
[PERIOD-END] SEP-30-2000
[CASH] 1,907
[SECURITIES] 50,000
[RECEIVABLES] 667
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 52,574
[PP&E] 0
[DEPRECIATION] 0
[TOTAL-ASSETS] 52,574
[CURRENT-LIABILITIES] 2,450
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 12,160
[OTHER-SE] 0
[TOTAL-LIABILITY-AND-EQUITY] 52,574
[SALES] 0
[TOTAL-REVENUES] 0
[CGS] 0
[TOTAL-COSTS] 0
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] 0
[INCOME-TAX] 0
[INCOME-CONTINUING] 0
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 0
[EPS-BASIC] (.00)
[EPS-DILUTED] (.00)
