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 March 31, 2000
Commission File Number: 0-26235
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 X NO ____
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
11,011,368 common shares issued as of as of March 31, 2000. 70,274 Warrants @
$2.75, expiration date of April 5, 2001.
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
BALANCE SHEETS
March 31, 2000 and September 30, 1999
(Stated in US Dollars)
March 31, September 30,
2000 1999
-------------------------
ASSETS
CURRENT ASSETS
Cash $ 3,813 $ 18,788
Accounts receivable 12,035 8,033
Inventory 123,265 119,290
Prepaid expenses 84,581 86,121
Deferred offering costs 3,000 3,000
--------- ---------
Total current assets $ 226,694 $ 235,232
--------- ---------
PROPERTY AND EQUIPMENT
Computer equipment $ 31,117 $ 20,866
Furniture and fixtures 1,100 -
Software 13,668 13,668
--------- ---------
$ 45,885 $ 34,534
Less accumulated depreciation 11,118 7,129
--------- ---------
$ 34,767 $ 27,405
--------- ---------
OTHER ASSETS
Technology license, net of accumulated
amortization $ 28,750 $ 33,750
Deposits 1,150 1,150
--------- ---------
$ 29,900 $ 34,900
--------- ---------
$ 291,361 $ 297,537
========= =========
See Notes to Financial Statements
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
BALANCE SHEETS
March 31, 2000 and September 30, 1999
(Stated in US Dollars)
March 31, September 30,
2000 1999
-------------------------
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 59,670 $ 58,209
Due to officers and employees 311,576 213,164
Deferred revenue 72,500 75,000
Preferred dividends payable 9,638 1,020
Accrued stock 55,500 --
--------- ---------
Total current liabilities $ 508,884 $ 347,393
--------- ---------
STOCKHOLDERS' EQUITY
Common stock, $.0001 par value, 100,000 shares
authorized; 11,011,368 issued and outstanding $ 1,101 $ 1,101
Preferred stock, $.01 par value, 10,000,000
shares authorized, 62,800 and 23,500 issued
and outstanding, respectively 628 235
Additional paid in capital 1,574,448 1,339,041
Deficit accumulated during the development stage (1,793,700) (1,390,233)
--------- ----------
$(217,523) $ (49,856)
--------- ----------
$ 291,361 $ 297,537
========= =========
See Notes to Financial Statements
<PAGE>
<TABLE>
<CAPTION>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
For the Three Months and Six Months ended March 31, 2000
and 1999 and from July 16, 1997
(Date of Inception) to March 31, 2000
(Stated in US Dollars)
(Unaudited)
<S> <C> <C> <C> <C> <C>
Cumulative from
Three months Six Months July 16, 1997
ended ended (Date of Inception)
March 31, March 31, to March 31,
2000 1999 2000 1999 2000
---- ---- ---- ---- ----
SALES $ -- $ -- $ -- $ -- $ --
-------- -------- ------- ------- ----------
PRODUCT DEVELOPMENT COSTS
Salaries $ 110,343 $ 60,000 $ 184,589 $ 60,000 $ 366,381
Subcontractors 2,972 486 20,724 61,599 664,220
Other development costs 31,390 9,817 62,020 18,328 380,390
--------- --------- --------- -------- ----------
$ 144,705 $ 70,303 $ 267,333 $ 139,927 $ 1,410,991
--------- --------- --------- -------- ----------
OPERATING EXPENSES
Office $ 2,835 $10,593 $ 11,444 $ 14,662 $ 62,803
Marketing and sales 6,234 4,220 23,711 20,476 115,519
Legal and
professional 17,009 1,877 56,473 16,535 89,110
Occupancy 8,680 3,660 16,892 8,096 37,704
Utilities and
telephone 3,916 1,891 7,480 6,001 22,873
Depreciation 4,495 3,691 8,990 7,382 32,368
Other 3,262 1,796 5,451 4,557 23,492
--------- -------- --------- -------- ----------
$ 46,431 $ 27,728 $ 130,441 $ 77,709 $ 383,869
--------- -------- --------- -------- ----------
Net operating loss $(191,136) $( 98,031) $(397,774) $(217,636) $(1,794,860)
OTHER INCOME 2,222 1,483 3,051 5,114 10,915
FINANCIAL INCOME AND EXPENSE
Interest income -- -- -- -- 10
Interest expense (126) -- (126) -- (126)
--------- --------- --------- -------- ----------
Net loss $(189,040) $ ( 96,548) $(394,849)$(212,522) $(1,784,061)
========= ========== ======== ======== ==========
Net loss per share $ (.02) $ (.02) $ (.04)$ (.04) $ (.16)
========== ========== ========== ========= ===========
Weighted average number
of common shares
outstanding 11,011,368 4,948,102 11,011,368 4,948,102 11,011,368
=========== ========= ========== ========= ==========
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
For the Period July 16, 1997, Inception,
to March 31, 2000
(Stated in US Dollars)
(Unaudited)
<S> <C> <C> <C> <C> <C>
Accumulated
Cumulative Additional Deficit During
Common Stock Preferred Paid In Development
Shares Amount Par Capital Stage Total
------ ------ ------- ----- -----
Issuance of share capital
to Founders, July 16, 1997 200 $ -- -- $ 200 $ -- $ 200
Net loss, period ended
September 30, 1997 -- -- -- -- -- --
------- ------- -------- ------- ------- -------
Balance, September 30, 1997 200 -- -- $ 200 -- $ 200
Exchange of shares, issuance
of new shares, May 12, 1998 9,999,800 1,000 -- (200) -- 800
Sale of common stock, April 3,
through September 8, 1998 443,737 44 -- 634,558 -- 634,602
Net loss, year ended September 30,
1998 -- -- -- -- (468,326) (468,326)
---------- ------- ------- -------- --------- --------
Balance, September 30, 1998 10,443,737 1,044 -- 634,558 (468,326) 167,276
Sale of common stock 315,250 32 -- 213,433 -- 213,465
Sale of preferred stock -- -- 235 140,765 -- 141,000
Contributed services 252,381 25 -- 350,285 -- 350,310
Dividend, cumulative preferred shares -- -- -- -- (1,020) (1,020)
Net loss, year ended September 30,
1999 -- -- -- -- (920,887) (920,887)
---------- ------- -------- --------- --------- ---------
Balance, September 30, 1999 11,011,368 $1,101 $ 235 $1,339,041 $(1,390,233) $( 49,856)
Sale of preferred stock -- -- 393 235,407 -- 235,800
Dividend, cumulative preferred shares -- -- -- -- (8,618) (8,618)
Net loss, six months ended March 31,
2000 -- -- -- -- (394,849) (394,849)
---------- ------ ------ --------- --------- ----------
Balance, March 31, 2000 11,011,368 $1,101 $ 628 $1,574,448 $(1,793,700) $(217,523)
========== ====== ====== ========= ========== ==========
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
For the Six Months Ended March 31, 2000 and 1999 and July
16, 1997 (Date of Inception) to March 31, 2000
(Stated in US Dollars)
(Unaudited)
<S> <C> <C> <C>
Cumulative for
July 16, 1997
(Date of
Six months ended Inception)
March 31, March 31, to March 31,
2000 1999 2000
---- ---- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
RECONCILIATION OF NET LOSS TO NET
CASH USED IN OPERATING ACTIVITIES
Net loss $(394,849) $(212,522) $ (1,784,061)
Adjustments to reconcile net
loss to net cash used in operating
activities:
Depreciation and amortization 8,990 7,382 32,368
Change in assets and liabilities:
Accounts receivable (4,003) (5,641) (12,035)
Inventory (3,975) (15,062) (123,265)
Prepaid expenses 1,540 17,800 (84,581)
Deposits -- -- (1,150)
Deferred charges -- 10,850 (3,000)
Accounts payable 1,461 (20,898) 59,670
Salaries payable 98,412 60,000 311,576
Deferred revenue (2,500) -- 72,500
Accrued stock 55,500 -- 55,500
--------- --------- -----------
Net cash used in operating
activities $(239,424) $(158,091) $ (1,476,478)
--------- --------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment and software $ (11,351) $ -- $ (45,885)
Purchase of technology license -- -- (50,000)
--------- --------- ------------
Net cash used in investing
activities $ (11,351) $ -- $ (95,885)
--------- -------- ------------
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
For the Six Months Ended March 31, 2000 and 1999 and July
16, 1997 (Date of Inception) to March 31, 2000
(Stated in US Dollars)
(Unaudited)
<S> <C> <C> <C>
Cumulative for
July 16, 1997
(Date of
Six months ended Inception)
March 31, March 31, to March 31,
2000 1999 2000
---- ---- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of
common stock $ -- $ 132,805 $ 1,199,376
Proceeds from issuance of
preferred stock 235,800 -- 376,800
--------- --------- -----------
Net cash provided by
activities $ 235,800 $ 132,805 $ 1,576,176
--------- -------- ------------
Net increase (decrease) in cash $ (14,975) $ (25,286) $ 3,813
CASH
Beginning 18,788 28,324 --
--------- --------- -----------
Ending $ 3,813 $ 3,038 $ 3,813
========= ======== ============
See Notes to Financial Statements
</TABLE>
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Stated in US Dollars)
(Unaudited)
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, 1999 audited financial statements
and notes thereto.
NOTE 2. NATURE AND CONTINUANCE OF OPERATIONS
World Wide Video, Inc., which was organized under the laws of the
Commonwealth of Virginia on July 16, 1997. On April 9, 1998, the
Company was reincorporated in the State of Colorado. The Company
intends to design and manufacture technology and products for the
video telephony market. These financial statements have been prepared
on a going concern basis. The company has accumulated a deficit of
$1,793,700 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.
The Company's continued existence is dependent upon its ability to
raise additional funds to complete products in development. The
Company conducted a private securities offering which closed April 6,
1999. At March 31, 2000, the Company had sold 11,011,368 shares of
common stock at prices ranging from $.50 to $2.75 per common share.
After the completion of the above private securities offering, the
Company began pursuing private placements from other sources. Based on
the analysis of funds available and funds required to complete the
initial production of product and associated productions cost,
research and development, the Company has decided to raise additional
required working capital by a Regulation D Rule 506 offering of
preferred stock. As of March 31, 2000, the Company had sold 62,800
shares of preferred stock at $6.00 per share, for a total of $376,800.
In addition to selling preferred stock, the Company will issue stock
to certain key individuals for services rendered in lieu of cash
payments. In management's opinion, such efforts should provide
sufficient funds to continue operations for the next year.
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Stated in US Dollars)
(Unaudited)
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 has elected early
adoption of Statement of Position 98-5, which requires expensing costs
of start-up activities, including organization costs, as incurred. All
losses accumulated since inception have been considered as part of the
company's development stage activities.
Method of Accounting
The financial statements are presented on the accrual basis of
accounting. Under this method of accounting, revenues are recognized
when they are earned as opposed to when cash is actually received.
Likewise, expenses are recognized when they are incurred as opposed to
when they are actually paid.
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.
Cash and Cash Equivalents
The statements of cash flows classify changes in cash or cash
equivalents (short-term, highly liquid investments readily convertible
into cash with a maturity of three months or less) according to
operating, investing, or financing activities.
Property and Equipment
Property and equipment are recorded at cost and depreciated over their
estimated useful lives.
Leases which meet certain specified criteria are accounted for as
capital assets and liabilities, and those not meeting the criteria are
accounted for as operating leases.
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Stated in US Dollars)
(Unaudited)
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Expenditures for maintenance, repairs, and improvements which do not
materially extend the useful lives of property and equipment are
charged to earnings. When property or equipment is sold or otherwise
disposed of, the cost and related accumulated depreciation or
amortization is removed from the accounts, and the resulting gain or
loss is reflected in earnings.
Income Taxes
The Company uses the liability method of accounting for income taxes.
The liability method accounts for deferred income taxes by applying
enacted statutory rates in effect at the balance sheet date to
differences between financial statement amounts and tax bases of
assets and liabilities. The resulting deferred income tax liabilities
are adjusted to reflect changes in tax laws and rates.
Temporary differences consist of the difference in financial and
income tax bases for accounting for start up and organizational costs.
Deferred income taxes related to an asset or liability are classified
as current or non-current based on the classification of the related
asset or liability.
Loss Per Share
The Company has adopted Statement of Financial Accounting Standards
(SFAS) No. 128, which established standards for computing and
presenting earnings per share (EPS) for entities with publicly held
common stock. The standard requires presentation of two categories of
earnings per share, basis EPS and diluted EPS. Basic EPS excludes
dilution and is computed by dividing income (loss) available to common
shareholders by the weighted average number of common shares
outstanding for the year. Diluted EPS reflects the potential dilutions
that could occur of securities or other contracts to issue common
stock were exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the earnings of the
Company. This computation excludes securities which are antidilutive.
The following table sets forth the computation of basic and diluted
loss per share:
Three Months Six Months
Ended Ended
MARCH 31, 2000 MARCH 31, 2000
-------------- --------------
Numerator:
Net loss plus preferred
dividends $(194,022) $(403,464)
Denominator
Weighted average shares
outstanding 11,011,368 11,011,368
Basic and diluted EPS $ (.02) $ (.04)
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Stated in US Dollars)
(Unaudited)
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 March 31, 2000.
Technology License
The Company capitalizes technology licenses when purchased. Technology
licenses are carried at cost less accumulated amortization. The
Company has purchased one technology license which permits it
unlimited access for an unlimited period of time. Amortization is
taken on the straight line basis over five years, the estimated useful
life of the license. The Company evaluates recoverability of its
intangible assets as current events or circumstances warrant to
determine whether adjustments are needed to carrying values. There
have been not material adjustments to the carrying values of
intangible assets resulting from these evaluations.
Deferred Offering Costs
Deferred offering costs represent costs incurred in connection with
raising capital. Upon completion of an offering, the amount of the
proceeds credited to additional paid in capital is reduced by the
deferred offering costs. Should an offering be unsuccessful, these
costs are charged to expense. In connection with a private securities
offering (Rule 504), the Company has deferred costs of $3,000
associated with certain filing requirements that are expected to be
completed in the near future. These charges will be netted against the
proceeds of the offering when filings are completed.
Deferred Revenue
License revenues are generally recognized upon delivery of the
licensed technology to the customer, provided no significant future
obligations exist and collection is probable. Payments for
nonrecurring engineering costs are recognized upon acceptance of
prototypes by the customer, provided no significant future obligations
exist and collections is probable.
NOTE 4. PREPAID EXPENSES
Prepaid expenses as of March 31, 2000 consist of the following:
Advance payments for licenses $27,500
Nonrecurring engineering fee, current portion 20,000
Prepaid marketing expenses 18,000
Prepaid inventory 12,450
Commissions 3,156
Prepaid rent 1,950
OTHER 1,525
-------
$84,581
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Stated in US Dollars)
(Unaudited)
NOTE 5. OTHER ASSETS
The Company has acquired a technology license at a cost of $50,000,
from Analog Devices, Inc., that is being amortized over a period of
five years. The license agreement permits the Company to use certain
proprietary reference designs and software in the development of video
telephony products. The net carrying value of the license at March 31,
2000 was $28,750.
In connection with a private securities offering, the Company has
deferred costs of $3,000 associated with certain filing requirements
that are expected to be completed in the near future. These charges
will be netted against proceeds of the offering when filings are
completed.
NOTE 6. CONTRIBUTED CAPITAL
In connection with the re-incorporation of the Company, the original
stockholders received 10,000,000 shares of common stock. In March,
1998, the Company entered into an agreement in which they agreed to
provide 250,000 shares of common stock at $.20 per share in return for
a convertible loan, provided certain conditions could be satisfied. In
April, 1998, the Company sold 200,000 shares of common stock at $.50
per share, and 75,000 shares at $2.00 per share.
In April 1998, the Company commenced a private offering of 315,250
common shares at $2.75 per share. After deducting costs of $94,574,
the Company has realized proceeds of $798,070. The offering was
concluded on April 6, 1999. In connection with this offering, 70,274
warrants entitling the holder to purchase one share of common stock at
$2.75 were issued with the sale of the last 70,274 shares. Those
warrants must be exercised by April 5, 2001.
In July 1999, the Company commenced a private offering of 150,000
cumulative preferred shares at $6.00 per unit. Each unit included one
share of cumulative preferred stock and 2 warrants entitling the
holder to purchase a share of cumulative preferred stock at $6.00 per
share. The preferred stock earns a dividend at the rate of 6% per
annum, payable semi-annually. As of March 31, 2000, the Company had
sold 62,800 shares of preferred stock. Upon conclusion of the
offering, the holders of the preferred shares will be offered two
shares of common stock for each share of cumulative preferred stock
and must exercise those warrants within one year. At the close of the
private offering, each cumulative preferred share is convertible into
2 shares of common stock.
During the year ended September 30, 1999, the Company entered into
several agreements in which shares were exchanged for services. Stock
so issued was valued at the current sales price of common stock.
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Stated in US Dollars)
(Unaudited)
NOTE 7. CONVERTIBLE DEBT
On March 14, 1998, the Company entered into an agreement with a
Canadian company to receive a $50,000 (non-interest bearing) loan. The
Canadian company agreed to accept 250,000 shares of common stock of
the Company in payment of the debt, provided the Company could deliver
two acceptable prototype products within three months of the signing
of the agreement. Several extensions of the delivery requirement were
obtained. The prototypes were delivered and accepted in November 1998.
The Company issued 250,000 shares of common stock in satisfaction of
the debt. The agreements also granted the Canadian company an
exclusive option to market and manufacture these products in Canada
until March 15, 2008.
NOTE 8. OPERATING LEASE
The Company leases office space in Culpeper, Virginia, under a two
year lease agreement commencing July 7, 1998 and expiring July 6,
2000. The Company has made security deposits of $1,150. Rent expense
was $7,150 for the quarter ended March 31, 2000.
NOTE 9. RELATED PARTIES
A majority stockholder is a member of the Board of Directors of
DataPower, Inc. (Note 6) In addition, a Director of the Company has
been engaged to assist in the raising of capital. He is compensated on
the basis of a percentage (from 2 to 5 percent) of the completed
transaction. The same Director has also been prepaid $18,000 under a
product marketing agreement.
The two majority stockholders have employment agreements which
commenced January 1, 1999 and continue until December 20, 2004. The
agreements provide for annual salaries of $120,000. During the three
months ended March 31, 2000, the President earned $32,308 and the
Vice-President of Engineering earned $30,000 under each of these
agreements, for a total of $62,308. As of March 31, 2000, $262,692
remains unpaid for accrued salaries.
In January, 2000, the Company entered into an employment agreement
with a stockholder for the position of Vice-President of Sales and
Marketing. For the quarter ended March 31, 2000, salary expense for
this position was $29,385, all of which remains payable at the end of
the quarter.
During the year ended September 30, 1998, they earned $180,000 under
earlier agreements, of which $19,500 remains unpaid at March 31, 2000
and $35,000 remained unpaid at September 30, 1999.
<PAGE>
WORLD WIDE VIDEO, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(Stated in US Dollars)
(Unaudited)
NOTE 10. COMMITMENTS AND CONTINGENCIES
The Company has entered into several agreements and contracts in
connection with the raising of capital and product development.
Raising Capital:
The Company has engaged several consultants to assist in the effort to
raise additional capital. Certain of these contracts require payment
of fees calculated as a percentage of completed transactions (see
Notes 6 and 9). Other contracts require compensation in the form of
stock. As of March 31, 2000, the company had $55,500 in common stock
due to individuals for services rendered.
Product Development:
Under an agreement to develop certain products, the Company has
deferred revenue of $72,500 pending achievement of contract
milestones. Successful completion of contract milestones will result
in additional payments of up to $50,000. The Company has experienced
delays in completing contract requirements.
Marketing and Technology Licenses:
In March 1998, the Company entered into an exclusive manufacturing and
marketing license agreement with National Executive Trade, Inc.
Consideration for the licenses was a loan of $50,000 which could be
repaid with the Company's common stock if the Company could provide
acceptable prototypes. In November, 1998, after several delays, the
Company was able to provide acceptable prototypes and agreed to issue
250,000 shares of common stock in satisfaction of the debt.
<PAGE>
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 and 1999
The Company had no revenues in the period in 2000 or 1999. The Company
incurred $144,705 in product development costs in the three month period
ended March 31, 2000 compared to $70,303 in the period ended March 31,
1999. Operating expenses increased to $46,431 in the period in 2000
compared to $27,728 in the 1999 period. Net operating loss was ($189,040)
for the period in 2000 compared to ($96,548) in 1999. The product
development costs significantly increased in the period in 2000 over 1999,
and salaries were the major component of increase rising from $60,000 in
1999 to $110,343 in the period in 2000. The net loss for the period in 2000
was ($189,040) and ($96,548) in 1999. The net loss per share was ($.02) for
the period in both 2000 and 1999.
RESULTS OF OPERATIONS FOR THE SIX MONTH PERIOD ENDED MARCH 31, 2000 and 1999
The Company had no revenues in the period in 2000 or 1999. The Company
incurred $267,333 in product development costs in the six month period
ended March 31, 2000 compared to $139,927 in the six month period ended
March 31, 1999. Operating expenses increased to $130,441 in the period in
2000 compared to $77,709 in the 1999 period. Net operating loss was
($397,774) for the period in 2000 compared to ($217,636) in 1999. The
product development costs significantly increased in the period in 2000
over 1999, and salaries were the major component of increase rising from
$60,000 in 1999 to $184,589 in the period in 2000. The net loss for the
period in 2000 was $394,849 and ($212,522) in 1999. The net loss per share
was ($.04) for the period in both 2000 and 1999.
LIQUIDITY AND CAPITAL RESOURCES
Working capital as of March 31, 2000 was cash in the amount of $3,813. The
Company will be required to borrow funds or make private placements of
stock in order to fund future operations. As of March 31, 2000, operating
funds of $376,800 had been derived from the sale of stock. Future operating
funds are expected to be derived from additional sales of preferred stock
and private common stock placement.
<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 16th day of August, 2000.
World Wide Video, Inc.
/s/John G. Perry
--------------------------------
John G. Perry, President
