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, 1999
( ) 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, 1999:
19,842,000 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
Item 5. Other Information
Item 6
(a) Exhibits
(b) Reports on Form 8K
None
SIGNATURES
FINANCIAL DATA SCHEDULE
[CAPTION]
COMPUTERXPRESS.COM, INC.
BALANCE SHEET
SEPTEMBER 30, 1999 (UNAUDITED) AND MARCH 31, 1999
ASSETS
Sept.30,1999 March 31,
1999
- ------------- --------------
(unaudited) (audited)
CURRENT ASSETS
Cash and Cash Equivalents $ 90,765 $ 210
Accounts Receivables 39,485 -
Inventory 42,179 -
Prepaid Expenses 7,160 -
---------- ----------
Total Current Assets 179,589 210
---------- ----------
Property & Equipment, net 92,112 22,500
---------- ----------
OTHER ASSETS
Notes Receivable - common stock 525,000
Site Golf Driving range 860,555
Goodwill 36,000
---------- ----------
Total Other Assets 36,000 1,385,555
---------- ----------
Total Assets $ 307,701 $1,408,265
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 13,404 $
-
Accrued Expenses 28,704 357,497
Advances from officers 34,281 352,826
Loan Payable 7,100 562,500
Debentures payable 50,000
----------- -----------
Total Current Liabilities 83,489 1,322,823
----------- -----------
LONG-TERM LIABILITIES
Long-term Notes Payable 61,257
-
STOCKHOLDERS' EQUITY
Common Stock; $0.001 Par Value, 50,000,000 Shares
Authorized; Issued and Outstanding 19,842,000 19,842 19,842
Additional Paid in Capital 2,721,003 2,721,003
Accumulated Deficit (2,577,890)
(2,655,403)
----------- -----------
Total Stockholders' Equity 162,955 85,442
----------- -----------
Total Liabilities and Stockholders' Equity $ 307,701 $ 1,408,265
=========== ===========
[CAPTION]
COMPUTERXPRESS.COM, INC.
STATEMENT OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED
SEPTEMBER 30 1999 (UNAUDITED) AND 1998 (UNAUDITED)
<TABLE>
Six Months Ended Three
Months Ended
September 30,
September 30,
----------------------------
- ----------------------------
1999 1998 1999
1998
------------ ------------
- ------------ ------------
(unaudited) (unaudited)
(unaudited) (unaudited)
<S> <S> <S> <S>
<S>
Sales $ 542,486 $ - $
376,422 $ -
Cost of Sales 175,451 -
-
------------ ------------
- ------------ ------------
Gross Profit (Loss) 367,035 -
248,590 -
EXPENSES
General and Administrative 289,522 34,839
176,823 20,482
----------- ------------
- ------------ ------------
77,513 (34,839)
71,767 (20,482)
Income (Loss) from Operations
------------ ------------
- ------------ ------------
Other Income (Expense)
Interest Income
Interest Expense
Debenture 39,463
Startup cost 7,063
----------- -----------
- ----------- -----------
Total Other Income (Expense) - 46,526 -
-
----------- -----------
- ----------- -----------
Net Income (Loss) $ 77,513 (11,687) $
71,767 $ (20,482)
============ ============
============ ============
Basic (Loss) Per Share $ 0.004 $ 0.001 $
0.004 $ (0.001)
============ ============
============ ============
Weighted Average Number of
Shares Outstanding 19,842,000 19,842,000
19,842,000 19,842,000
============ ============
============ ============
</TABLE>
[CAPTION]
COMPUTERXPRESS.COM, INC.
STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIODS ENDED
SEPTEMBER 30, 1999 (UNAUDITED) AND 1998 (UNAUDITED)
<TABLE>
Six Months Ended
September 30,
-----------------------------
1999 1998
----------- -----------
(unaudited) (unaudited)
<S> <S> <S>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ 77,513 $(
34,839 )
Adjustments to reconcile net loss to net
cash used by operating activities:
Depreciation and amortization 3,914
Non-cash Transactions
Changes in operating assets and liabilities:
Accounts receivable (39,485)
Inventory (42,179)
Prepaid expense ( 7,160)
Notes receivable 525,000
Site 860,555
Goodwill (36,000)
Accounts payable, accrued expenses (315,389)
----------- -----------
Net cash used by operating activities 1,026,769 (
34,839)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures (73,526) -
----------- -----------
Net cash used by Investing Activities: (73,526) -
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
34,281
Long-term debt 61,257
Debentures (50,000)
34,839
Advances from officers (352,826)
Loans Payable (555,400)
----------- -----------
Net cash provided by financing activities (862,688)
34,839
----------- -----------
Increase (Decrease) in Cash and
Cash Equivalents $ 90,555
Cash and Cash Equivalents, Beginning of Period 210 -
----------- -----------
Cash and Cash Equivalents, End of Period $ 90,765 $ -
=========== ===========
<CAPTION>
COMPUTERXPRESS.COM, INC.
Consolidated Statements of Stockholders' Equity
</TABLE>
<TABLE>
Additional
Common Stock Paid In
Accumulated
Shares Amount Capital
Deficit Total
------ ------ -------
- ---------- -------
<S> <S> <S> <S>
<S> <S>
Balance, March 31, 1998 1,850,000 1,850 200,097
(252,321) $( 50,374)
Stocks issued 504 (d) 2,998,000 2,998
788,402
-- 791,400
Restricted stocks issued 14,994,000 14,994 1,732,504
(2,403,082) (655,584)
---------- ------ ---------
- ----------- -----------
Balance, March 31, 1999 19,842,000 19,842 2,721,003
(2,655,403) 85,442
Net Income September 30, 1999 -- -- --
77,513
Adjustment 34,281
------------ -------- ---------
- ---------- -----------
Balance, September 30, 1999 19,842,000 19,842 2,755,284
(2,577,284) 85,442
=========== ======== ==========
========= ============
</TABLE>
[CAPTION]
COMPUTERXPRESS.COM, INC.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS PERIOD ENDING SEPTEMBER 30, 1999
NOTE 1 - BASIS OF PREPARATION
The accompanying unaudited condensed financial statements have been
prepared
in accordance with generally accepted accounting principles for
interim
financial information and Article 10 of Regulation S-X. These
statements do
not include all of the information and footnotes required by
generally
accepted accounting principles for complete financial statements. In
the
opinion of management, all adjustments (consisting of normal
recurring
accruals) considered necessary for a fair presentation have been
included.
Operating results for the six months ended September 30, 1999 are not
necessarily indicative of the results that may be expected for
the year ended March 31, 2000. The unaudited condensed financial
statements
should be read in conjunction with the financial statements and
footnotes
thereto for the year ended March 31, 1999 included in the Company's
report on
form 10-K.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Plant and Equipment and Depreciation - Plant and equipment as of September
30, 1999 consists primarily of generators, computers, furniture and
fixtures, and they are stated at cost. Depreciation is provided over the
estimated useful asset lives using the straight-line method over 5-7 years
for all equipment and furniture.
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 disclosures of contingent assets and liabilities at 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 Company classifies all highly liquid debt
instruments, readily convertible to cash and purchased with maturity of
three months or less at date of purchase, as cash equivalents. The Company
had no cash equivalents at September 30, 1999.
Earnings (Loss) per share - The Financial Accounting Standards Board
("FASB") has issued Statement of Financial Accounting Standard ("SFAS") No.
128, "Earnings Per Share" which is effective for financial statements issued
for periods ending after December 15, 1997. Accordingly, earnings per share
data in the financial statements for the year ended March 31, 1999 has been
calculated in accordance with SFAS No. 128. Prior periods earnings per share
data have been recalculated as necessary to conform prior years data to SFAS
No. 128. SFAS No. 128 supersedes Accounting Principles Board Opinion No. 15,
"Earnings per Share" and replaces its primary earnings per share with a new
basic earnings per share representing the amount of earnings for the period
available to each share of common stock outstanding during the reporting
period. SFAS No. 128 also requires a dual presentation of basic and diluted
earnings per share in the face of the statement of operations for all
companies with complex capital structures. Diluted earnings per share
reflects the amount of earnings for the period available to each share of
common stock outstanding during the reporting period, while giving effect
to all dilutive potential common shares that were outstanding during the
period, such as common shares that could result from the potential exercise
or conversion of securities into common stock.
The computation of diluted earnings per share does not assume conversion,
exercise or contingent issuance of securities that would have an
anti-dilutive effect on earnings per share (i.e. increasing earnings per
share or reducing loss per share). The dilutive effect of outstanding
options and warrants and their equivalents are reflected in dilutive
earnings per share by the application of the treasury stock method which
recognizes the use of proceeds that could be obtained upon exercise of
options and warrants in computing diluted earnings per share. It assumes
that any proceeds would be used to purchase common stock at the average
market price during the period. Options and warrants will have a dilutive
effect only when the average market price of the common stock during the
period exceeds the exercise price of the options or warrants.
Deferred Taxes - There are no material differences between the
accounting
methods used for financial and tax purposes. The Company has sustained
losses in
recent years and has a large net operating loss carryforward. No deferred
taxes
are reflected in these financial statements.
Depreciation - Depreciation is provided over the estimated useful asset
lives using the straight-line method over five to seven years for all
equipment and furniture. Leasehold improvements are amortized on a
straight-line basis over the shorter of the useful life of the improvement
or the term of the lease. Expenditures for major improvements that extend
the useful lives of property and equipment are capitalized. Expenditures for
maintenance and repairs are charged to expense as incurred.
PART I. FINANCIAL INFORMATION
Item 2. 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.
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.
Results of Operations
Six months ended September 30, 1999 Compared to six months ended September
30, 1998
The net income for the three months ended September 30, 1999 was $77,513,
compared with a net loss of $(11,687) for the six months ended September 30,
1998. The primary reasons for the change to a net income was the Company's
commencement of its e-commerce operations.
The Company overall generated $542,486 in revenues in the six months ended
September 30, 1999, compared to revenues of $0 in the six months ended
September
30, 1998. Management attributes this increase to the commencement of its
e-commerce operations.
Liquidity and Capital Resources
At September 30, 1999, the Company had a working capital surplus of $96,100, as
compared to a working capital deficit on March 31, 1999 of $(1,385,345).
The
decrease is primarily attributable to the change of business focus and
elimination of the golf
driving range property, and the payoff of debenture holders.
Net cash used in operating activities was $1,026,769 for the six months
ended September 30, 1999, compared to the utilization of $(34,839) 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. As of September 30, 1999, the
Company was still prosecuting the lawsuit.
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: April 7, 2000 By: /s/ FRANK SCIVALLY
---------------------------
Frank Scivally, President
[TYPE]EX-27
<SEQUENCE>2
[DESCRIPTION]FINANCIAL DATA SCHEDULE
[ARTICLE] 5
[MULTIPLIER] 1
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] MAR-31-1999
[PERIOD-START] JUN-30-1999
[PERIOD-END] SEP-30-1999
[CASH] 0
[SECURITIES] 0
[RECEIVABLES] 0
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 307,701
[PP&E]
0
[DEPRECIATION] 3,914
[TOTAL-ASSETS] 307,701
[CURRENT-LIABILITIES] 83,489
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 19,842
[OTHER-SE] 0
[TOTAL-LIABILITY-AND-EQUITY] 307,701
[SALES] 542,486
[TOTAL-REVENUES] 542,846
[CGS] 175,451
[TOTAL-COSTS] 175,451
[OTHER-EXPENSES] 289,522
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] 77,513
[INCOME-TAX] 0
[INCOME-CONTINUING] 77,513
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 77,513
[EPS-BASIC] (.004)
[EPS-DILUTED] (.004)
