SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended Commission File Number
June 30, 1999 10-86519
WORLD WIDE VIDEO, INC.
(Exact name of registrant as specified in its charter)
Colorado 54-1921580
(State of incorporation) (I.R.S. Employer Identification No.)
102A North Main Street, Culpeper, Virginia 22701
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(540) 727-7551
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 the filing
requirements for at least the past 90 days.
Yes ___No X
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
10,911,368 Common Shares Issued as of as of June 30, 1999. 70,274 Warrants @
$2.75, expiration date of April 5, 2001.
<PAGE>
Part I: FINANCIAL INFORMATION
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
BALANCE SHEETS (Stated in US Dollars)
(Unaudited-See Note 1)
June 30, September 30,
1999 1998
ASSETS
CURRENT ASSETS
Cash $ 2,895 $ 28,324
Accounts receivable 25,036 --
Inventory 144,510 122,448
Prepaid expenses 84,950 107 134
--------- ---------
Total current assets $ 257,391 $ 257,906
--------- ---------
PROPERTY AND EQUIPMENT
Computer equipment $ 10,982 $ 7,746
Software 13,668 13,668
--------- ---------
Less accumulated depreciation 2,364 2,364
--------- ---------
$ 22,286 $ 19,050
--------- ---------
OTHER ASSETS
Technology license, net of accumulated
amortization 6,250 $ 43,750 $ 43,750
Deposits 650 650
Deferred charges 5,000 15,850
Prepaid rent, noncurrent portion 5,850 5,850
--------- ---------
$ 55,250 $ 66,100
--------- ---------
$ 334,927 $ 343,056
========= =========
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 55,000 $ 75,780
Deferred revenue 77,000 50,000
Salaries payable 120,000 --
Convertible loan 50,000 50,000
--------- ---------
$ 302,000 $ 175,780
--------- ---------
STOCKHOLDERS= EQUITY
= E
Preferred stock, $.01 par value, 10,000,000
shares authorized, none issued $ -- $ --
Common stock, $.0001 par value, 100,000 shares
authorized; 10,911,368 issued and 1,050 1,044
outstanding
Additional paid in capital 818,969 634,558
Deficit accumulated during the development stage (787,092) (468,326)
--------- ---------
$ 32,927 $ 167,276
--------- ---------
$ 334,927 $ 343,056
========= =========
See Notes to Financial Statements
F-1
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<TABLE>
<CAPTION>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
for the three month and nine month periods ended
June 30, 1999 and 1998 (Stated in US
Dollars) (Unaudited-See Note 1)
Cumulative from
Three months Nine months April 9, 1998
ending ending (Date of Inception)
June 30, June 30, to June 30, 19
----------------
<S> <C> <C> <C> <C> <C>
1999 1998 1999 1998
---- ---- ---- ----
SALES $ -- $ -- $ -- $ -- $ --
PRODUCT DEVELOPMENT COSTS
Contract expense 5,500 9,811 22,175 9,811 199,236
--------- --------- --------- --------- ---------
Subcontractors 1,061 65,000 62,147 85,000 259,041
--------- --------- --------- --------- ---------
$ 6,561 $74,811 $ 84,322 $94,811 $ 458,250
--------- --------- --------- --------- ---------
OPERATING EXPENSES
Salaries $ 60,000 $ -- $120,000 $ -- $ 120,000
Office 34,784 3,173 50,576 3,173 62,964
Marketing and sales 3,612 37,116 24,177 41,116 78,793
Legal and
professional 665 1,910 17,200 1,910 19,900
Occupancy 3,147 887 11,387 887 17,290
Utilities and
telephone 2,489 481 8,489 481 11,481
Printing 59 -- 2,336 -- 6,702
Depreciation -- -- -- -- 8,614
Other 2,331 459 5,402 479 10,972
--------- --------- --------- -------- ---------
$ 107,087 $ 44,026 $ 239,567 $ 48,046 $ 336,716
--------- --------- --------- -------- ---------
Net operating loss $(113,648) $(118,837) $(323,889) $(142,857) $(794,966)
OTHER INCOME -- 5,114 569 7,486
FINANCIAL INCOME
Interest income 10 -- 10 -- 388
--------- --------- --------- --------- ---------
Net loss $(113,638) $(118,837) $(318,765) $(142,288) $(787,092)
========= ========= ========= ========= =========
Net loss per share $(.0111) $(.0109) $(.0295) $(.0139) $(.0741)
========= ======= ======= ======= =======
Weighted average number
of common shares
outstanding 10,260,833 10,910,368 10,813,157 10,260,833 10,628,689
========== ========== ========== ========= ==========
</TABLE>
See Notes to Financial Statements
F-2
<PAGE>
<TABLE>
<CAPTION>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
STATEMENTS OF CHANGES IN STOCKHOLDERS= EQUITY (DEFICIT) for
the nine months ended June 30, 1999
(Stated in US Dollars)
(Unaudited-See Note 1)
Deficit
Common Stock Accumulated
During
Contributed Development
Shares Amount Capital Stage Total
------ ------ ------- ----- -----
<S> <C> <C> <C> <C> <C>
Balance as of
September 30, 1998 10,443,737 $1,044 $634,558 $(468,326) $ 167,276
Issuance of
"Other 144" stock 375,000 -- -- -- --
Net loss for
the three months
ended December 31,
1998 -- -- -- (109,304) (109,304)
Balance as of
December 31, 1998 10,818,737 $1,044 $634,558 $(577,630) $ 57,972
Issuance of stock
during public
offering for $2.75
per share 33,750 3 92,787 -- 92,790
Issuance of
"Other 144" stock 27,381 -- -- -- --
Net loss for the
three months
ended March 31,
1999 -- -- -- (95,824) (95,842)
-------- ----- -------- -------- --------
Balance as of
March 31, 1999 10,879,868 $1,047 $727,345 $(673,454) $ 54,938
Issuance of stock
during public
offering for
$2.75 per share 31,500 3 91,624 -- 91,627
Net loss for
the three months
ended June 30,
1999 -- -- -- (113,638) $(113,638)
--------- ------- ------- -------- ---------
Balance as of
June 30, 1999 10,911,368 $1,050 $818,969 $(787,092) $ 32,927
========== ======= ======== ========= =========
</TABLE>
See Notes to Financial Statements
F-3
<PAGE>
<TABLE>
<CAPTION>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
for the nine months ended June 30, 1999 and 1998
and April 9, 1998 (Date of Inception) to June 30, 1999
(Stated in US Dollars)
(Unaudited - See Note 1)
Cumulative for
April 9, 1998
(Date of
Nine months ended Inception)
June 30, June 30, to June 30,
1999 1998 1999
---- ---- ----
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
RECONCILIATION OF NET LOSS TO NET
CASH USED IN OPERATING ACTIVITIES
Net loss $(318,765) $(142,288) $(787,092)
Adjustments to reconcile net
loss to net cash used in operating
activities:
Depreciation and amortization -- -- 8,614
Change in assets and liabilities:
Accounts receivable (25,036) (500) (25,036)
Inventory (22,062) (3,931) (144,510)
Prepaid expenses 22,184 (59,950) (90,800)
Deposits -- (650) (650)
Deferred charges 10,850 (10,850) (5,000)
Accounts payable (20,780) -- 55,000
Salaries payable 120,000 -- 120,000
Deferred revenue 27,000 50,000 77,000
Net cash used in operating $(206,609) $(168,169) $(792,474)
--------- --------- ---------
activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment and software $ (3,236) $ (19,556) $ (24,650)
Purchase of technology license -- (50,000) (50,000)
--------- --------- --------
Net cash used in investing $ (3,236) $ (69,556) $ (74,650)
--------- -------- ---------
activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of
common stoc $ 184,416 $ 250,000 $ 870,019
Proceeds from note payable -- 48,576 --
--------- --------- ---------
Net cash provided by financing
$ 184,416 $ 298,576 $ 870,019
--------- -------- ----------
activities
Net increase (decrease) in cash $ (25,429) $ 60,851 $ 2,895
CASH
Beginning 28,324 -- --
--------- --------- ---------
Ending $ 2,895 $ 60,851 $ 2,895
========= ======== ==========
</TABLE>
See Notes to Financial Statements
F-4
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1999
(Stated in US Dollars)
(Unaudited See Note 1)
Note 1. Interim Reporting
These financial statements have not been audited or reviewed and have
been prepared on a compilation basis only. The statements have been
prepared in accordance with generally accepted accounting principles
for interim reporting and with the instructions to Form 10-QSB of
Regulation S-X. Accordingly, these financial statements do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In
management=s opinion, these financial statements include all
adjustments necessary to present fairly the financial position,
result of operations and changes in cash flows for the interim period
presented. It is suggested that these financial statements be read in
conjunction with the September 30, 1998 audited financial statements
and notes thereto.
Note 2. Nature and Continuance of Operations
World Wide Video, Inc., which was incorporated in Colorado on April
9, 1998, is in the development stage and is devoting its efforts to
locating merger candidates. These financial statements have been
prepared on a going concern basis. The company has accumulated a
deficit of $787,092 since inception. Its ability to continue as a
going concern is dependent upon the ability of the company to
generate profitable operations in the future and/or to obtain the
necessary financing to meet its obligations and repay its liabilities
arising from normal business operations when they come due.
Note 3. Summary of Significant Accounting Policies
A summary of significant accounting policies follows:
Development Stage Company
The company is a development stage company as defined in
Statement of Financial Accounting Standards No. 7. The company,
is devoting substantially all of its present efforts to acquire a
new business and none of its planned principal operations have
commenced. All losses accumulated since inception have been
considered as part of the company=s development stage activities.
Use of Estimates
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 disclosure of contingent assets and
liabilities as of the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Income Taxes
The company uses the liability method of accounting for income
taxes pursuant to Statement of Financial Accounting Standards,
No. 109 "Accounting for Income Taxes.@
Loss Per Share
Loss per share figures have been calculated based upon the
weighted average number of shares outstanding during the years.
F-5
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1999
(Stated in US Dollars)
(Unaudited See Note 1)
Note 3. Summary of Significant Accounting Policies (continued)
Fair Value of Financial Instruments
The carrying value of cash, accounts receivable and accounts payable
approximates current fair value for the period ended June 30, 1999.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE NINE MONTH PERIOD ENDED JUNE 30, 1999
The Company has incurred expenses of $323,889 and $142,857 for the nine
month periods ended June 30, 1999 and 1998, respectively. The Company
earned no revenues for the period in 1999 or 1998. The Company generated
net losses of $318,765 and $142,288 for the periods ended June 30, 1999
and 1998, respectively. The losses are expected to continue until
adequate business income from product sales can be achieved. While the
company is seeking capital sources, there is no assurance that such
sources can be found.
RESULTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 1999
The Company earned no revenues for the third quarters of fiscal years
1999 and 1998. The Company incurred expenses of $113,648 and $118,837
and net losses of $113,638 and $118,837 for the quarters ended June 30,
1999 and 1998, respectively. The Company anticipates that the losses
will continue for the foreseeable future until the Company is able to
achieve product sales which generates sufficient revenues to at least
cover expenses. Of course, there is no assurance that such an event will
occur.
LIQUIDITY AND CAPITAL RESOURCES
The Company had minimal working capital at the end of the period which
was cash of $2,895. The Company will be required to borrow funds or make
private placements of stock in order to fund future operations. No
assurance exists as to the ability to acquire loans or make private
placements of stock.
F-6
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
PART II - OTHER INFORMATION
Item 1. Litigation - None
Item 2. Change in Securities - None
Item 3. Defaults upon senior securities - None
Item 4. Submission of matters to a vote of security holders - None
Item 5. Other information - None
Item 6. Exhibits and reports on Form 8-K - No reports were made on Form 8-K for
the period for which this report is filed.
SIGNATURES
Pursuant to the requirements 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 this 14th day of September, 1999..
World Wide Video, Inc.
- --------------------------------
John G. Perry, President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 2,895
<SECURITIES> 0
<RECEIVABLES> 25,036
<ALLOWANCES> 0
<INVENTORY> 144,510
<CURRENT-ASSETS> 0
<PP&E> 24,650
<DEPRECIATION> 2,364
<TOTAL-ASSETS> 334,297
<CURRENT-LIABILITIES> 302,000
<BONDS> 0
0
0
<COMMON> 1,050
<OTHER-SE> 31,877
<TOTAL-LIABILITY-AND-EQUITY> 334,927
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 113,648
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (10)
<INCOME-PRETAX> (113,638)
<INCOME-TAX> 0
<INCOME-CONTINUING> (113,638)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (113,638)
<EPS-BASIC> (.01)
<EPS-DILUTED> (.01)
</TABLE>
