UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10QSB
(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
( ) Transition report pursuant of Section 13 or 15(d) of the Securities
Exchange Act of 1939 for the transition period ____ to______
COMMISSION FILE NUMBER 0-26349
COMPUTERXPRESS.COM, INC.
------------------------------------------
(Exact name of registrant as specified in its charter)
Nevada 86-0853156
---------------------------------- ----------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
79811 "A" Country Club Drive
Bermuda Dunes, CA 92201
-------------------------------------------------------------------------------
(Address of Principal Executive Offices, including Registrant's zip code
and telephone number)
COSTPLUSFIVE.COM, INC., aka STOP-N-SOCK, LTD.
--------------------------------------------------------------
Former name, former address and former fiscal year, if changed
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
such filing requirements for the past 90 days. Yes X No
--- ---
The number of shares of the registrant's common stock as of September 30, 2000:
45,915,060 shares.
Transitional Small Business Disclosure Format (check one): Yes No X
--- ---
TABLE OF CONTENTS
-----------------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
(a) Balance Sheet
(b) Statement of Income
(c) Statement of Cashflows
(d) Statement of Shareholders' Equity
(e) Notes to Financial Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations
Item 3. Risks
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults On Senior Securities
Item 4. Submission of Items to a Vote
Notice of Annual Meeting to Shareholders and Proxy Statement on
Form 14a filed 5/10/2000
Item 5. Other Information
Item 6
(a) Exhibits
(b) Reports on Form 8K
None
SIGNATURES
FINANCIAL DATA SCHEDULE
[CAPTION]
ComputerXpress, Inc.
Condensed Balance Sheets
September 30, March 31,
2000 2000
------------- ---------
(Unaudited)
ASSETS
Current Assets:
Cash in banks $ 540 $ 105,676
Accounts receivable - 33,701
Inventory - 31,768
Prepaid expenses - 4,924
------------- ---------
Total Current Assets 540 176,069
------------- ---------
Property and Equipment (net) 83,378 90,348
Other Assets:
Receivable from litigation 850,000 850,000
- -
------------- ---------
Total Other Assets 850,000 850,000
------------- ---------
TOTAL ASSETS $ 933,918 $ 1,116,417
============= =========
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 44,935 $ 53,077
Accrued expenses 30,108
Notes payable 17,689 9,627
Debentures 57,623 57,623
------------- ---------
Total Current Liabilities 120,247 150,435
------------- ---------
Stockholders' Equity:
Common stocks , $.001 par value
Authorized shares-50,000,000
and 25,000,000
Issued and oustanding shares
-45,915,060 shares
and 19,842,000 shares, respectively 45,915 45,915
Paid in capital 3,389,909 3,388,909
Stock subscription receivable (500,000) (500,000)
Retained deficit (2,122,153) (1,968,842)
------------- ---------
Total Stockholders' Equity 813,671 965,982
------------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 933,918 $ 1,116,417
============= =========
[CAPTION]
ComputerXpress, Inc.
Condensed Statement of Operations
For the three months For the six months
ended September 30, ended September 30,
2000 1999 2000 1999
----------------------- ---------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales $ 60,891 $ 175,064 $ 151,123 $ 542,486
Cost of sales 41,241 128,846 105,243 175,451
Gross profit 19,650 46,218 45,880 367,035
Operating expenses:
General and
administrative expenses 66,120 40,470 199,191 289,522
Total Expenses 66,120 40,470 199,191 289,522
Income (Loss) from operations $(46,470) $ 5,748 $(153,311) $ 77,513
========= ========== ========== =========
[CAPTION]
ComputerXpress, Inc.
Condensed Statements of Cash Flows
For the six months ended
September 30,
2000 1999
-------------------------
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (153,311) $ 77,513
Adjustments to reconcile net loss to
net cash used by operating activities:
Depreciation & amortization 6,970 3,914
Accounts receivable 33,701 (39,485)
Inventory 31,768 (42,179)
Prepaid expense 4,924 (7,160)
Note receivable 525,000
Land site 860,555
Goodwill 6,000)
Accounts payable and accruals (38,250) (315,389)
Loan payable
Advances from officers & shareholders
--------- ---------
NET CASH USED BY OPERATING ACTIVITIES (114,198) 1,026,769
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (73,526)
NET CASH USED BY INVESTING ACTIVITIES (73,526)
CASH FLOWS FROM FINANCING ACTIVITIES
Loans and notes payable 8,062 95,538
Debentures (50,000)
Advances from officers 1,000 (352,826)
Loans and notes payable (555,400)
NET CASH PROVIDED BY FINANCING ACTIVITIES 9,062 (862,688)
INCREASE (DECREASE) IN CASH (105,136) 90,555
BEGINNING CASH 105,676 210
--------- ---------
ENDING CASH $ 540 $ 90,765
========== =========
[CAPTION]
ComputerXpress, Inc.
Notes to Condensed Financial Statements
(Unaudited)
NOTE A DESCRIPTION OF THE BUSINESS AND ACCOUNTING POLICIES
DESCRIPTION OF THE BUSINESS
ComputerXpress.Com, Inc. (formerly known as "CostPlusFive.com, Inc.") (The
Company) was incorporated under the laws of the state Nevada on January 15,
1997.
The purpose for which the Corporation is organized is to engage in any lawful
act or activity for which a corporation may be organized under the General
Corporation Law of the State of Nevada including, without limitation, to engage
in the business of selling computer products through electronic commerce (e-
commerce).
SIGNIFICANT ACCOUNTING POLICIES
1. The Company uses the accrual method of accounting.
2. The Company considers all short term, highly liquid investments that are
readily convertible, within three months, to known amounts as cash equivalents.
The Company currently has no cash equivalents.
3. Advertising Costs - The Company expenses the costs of advertising in the
periods in which those costs are incurred. Advertising expense was
approximately $105,080 for the year ended March 31, 2000
4. Earnings Per Share - The Company has adopted Statement of Financial
Accounting Standards No. 128 ("SFAS 128"), "Earnings Per Share." Under SFAS
128, basic earnings per share is computed by dividing income available to
common stockholders by the Weighted-average number of common shares assumed to
be outstanding during the period of computation. Diluted earnings per share is
computed similar to basic earnings per share except that the denominator is
increased to include the number of additional common shares that would have
been outstanding if the potential common shares had been issued and if the
additional common shares were dilative.
5. Depreciation; the cost of property and equipment is depreciated over the
estimated useful lives of the related assets. The cost of leasehold
improvements is depreciated (amortized) over the lesser of the length of the
related assets or the estimated lives of the assets. Depreciation is computed
on the straight-line method for reporting purposes and for tax purposes.
6. Estimates; The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from those estimates
7. Income Taxes - The Company accounts for income taxes under Statement of
Financial Accounting Standards No. 109 ("SFAS 109"), "Accounting for Income
Taxes." Under SFAS 109, deferred tax assets and liabilities are recognized for
the future tax consequences attributable to differences between the financial
statement carrying amounts of existing assets and liabilities and their
respective tax bases. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which
those temporary differences are expected to be recovered or settled. A
valuation allowance is provided for significant deferred tax assets when it is
more likely than not those assets will not be recovered.
8. Revenue Recognition - Sales of goods and services and the related cost of
sales are recognized when orders forms are received and goods are shipped or
services are delivered. Accounts receivable are periodically reviewed by
management to assess collectibility. As of March 31, 1999 and 1998, the Company
has recorded no reserve against accounts receivable as a result of management's
review.
NOTE B - PROPERTY AND EQUIPMENT
The Company capitalizes the purchased and fixtures for major purchases in
excess of $300 per item. Capitalized amounts are depreciated over the useful
life of the assets using the straight-line method of depreciation.
NOTE C GOING CONCERN
The Company has an accumulated deficit of $1,968,842 and nominal assets with
which to create operating capital. The Company seeks to raise operating capital
with which to seek business opportunities to utilize the technology it has
acquired via placements of its common stock. However, there can be no assurance
that such offering or negotiations for private capital will be successful.
Management plans to raise additional working capital in subsequent private
offerings of its common stock.
PART 1. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
THIS ANALYSIS CONTAINS FORWARD-LOOKING COMMENTS WHICH ARE BASED ON CURRENT
INFORMATION. ACTUAL RESULTS IN THE FUTURE MAY DIFFER MATERIALLY.
Results of Operations
The Company is engaged in the business of selling computer hardware and systems
from its Internet web site. The Company discontinued a non-profitable business
of developing a golf range driving site on March 1, 1999 and subsequently
deeded the golf property in lieu of foreclosure.
Six months ended September 30, 2000 compared to six months ended September
30, 1999
The net loss for the three months ended September 30, 2000 was $46,470,
compared with a net income of $5,748 for the three months ended September 30,
1999. The primary reasons for the change to net income was the Company's
commencement of its operations.
The Company overall generated $60,891 in revenues in the six months ended
September 30, 2000, compared to revenues of $175,064 in the three months ended
September 30, 1999. Management believes this decrease to be insignificant.
Liquidity and Capital Resources
At September 30, 2000, the Company had a working capital deficit of $119,707,
as compared to a working capital surplus on March 31, 2000 of $25,634. The
decrease in working capital is primarily due to a decrease in receivables.
Net cash used in operating activities was $114,198 for the three months
ended September 30, 2000, compared to the utilization of $***** of cash
for the same period last year.
The Company does not anticipate that it will have any problems in meeting
its obligations for continuing fixed expenses, materials procurement or
operating labor.
PART II. OTHER INFORMATION
Item 1. Legal proceedings
On June 18, 1999, the Company filed a lawsuit in federal court for the
Central District of California, Case No. 99-06010RAP(MANx), against Investor's
Equity Corp., Wall Street Trading Group, and others, seeking to cancel
3,400,000 common shares the company issued on a promissory note to defendants.
Defendants filed counterclaim for breach of contract, defamation, fraud, and
securities violations. The Company settled the lawsuit on January 26, 2000, in
a confidential settlement agreement.
On March 30, 2000, the Company filed a lawsuit, Case Nol.: RIC841013, in
Riverside County, California, against Lee Jackson, Barbara Jackson, Tom
Mitchell, Doran Mitchell, John Fecteau, Carol Fecteau, Paul Graham and Wendy
Graham, for fraud, negligent misrepresentation, negligence, trade libel,
tortious interference with contractual relations, tortious interference with
prospective economic advantage, abuse of process, conspiracy and injunctive
relief. The lawsuit alleges, among other things, that the defendants defrauded
the company by misrepresenting the value of assets of CostPlusFive.com, Inc. A
Nevada corporation, when the company and said Nevada corporation entered into
the asset purchase agreement of February 26, 1999, and defamed the company by
publishing false and misleading statements on the Raging Bull, Inc.'s Internet
message board, and on their own web site, and that the defendants interfered
with the company's
Item 2. Changes in securities and use of proceeds NONE
Item 3. Defaults on senior securities NONE
Item 4. Submission of items to a vote NONE
Item 5. Other information NONE
Item 6.
a) Exhibits NONE
b) Reports on 8K NONE
SIGNATURES
In accordance with the requirements of the Securities and Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the
undersigned,thereunto duly authorized.
ComputerXpress.com, Inc.
Dated: November 10, 2000 By: /s/ FRANK SCIVALLY
---------------------------
Frank Scivally, President
[CAPTION]
[TYPE]EX-27
<SEQUENCE>2
[DESCRIPTION]FINANCIAL DATA SCHEDULE
[ARTICLE] 5
[MULTIPLIER] 1
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] MAR-31-2000
[PERIOD-START] MAR-31-2000
[PERIOD-END] JUN-30-2000
[CASH] 10,719
[SECURITIES] 0
[RECEIVABLES] 0
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 10,719
[PP&E]
[DEPRECIATION] 0
[TOTAL-ASSETS] 947,582
[CURRENT-LIABILITIES] 87,441
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 45,915
[OTHER-SE] 0
[TOTAL-LIABILITY-AND-EQUITY] 947,582
[SALES] 90,232
[TOTAL-REVENUES] 90,232
[CGS] 64,002
[TOTAL-COSTS] 133,071
[OTHER-EXPENSES] (106,841)
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] (106,841)
[INCOME-TAX] 0
[INCOME-CONTINUING] (106,841)
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (106,841)
[EPS-BASIC] (.002)
[EPS-DILUTED] (.002)
