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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For
the transition period from ____________ to _____________s
Commission file number 000-26471
---------
Netship Fulfillment, Inc.
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(Exact name of small business issuer as specified in its charter)
OKLAHOMA 52-2000360
------------------------------- --------------------------
(State or other jurisdiction of (I.R.S. Employer I.D. No.)
organization)
5550 Northeast 50th Street
Oklahoma City, Oklahoma 73121
----------------------------------------------
(Address of Principal Executive office)
Registrant's Telephone Number, Including Area Code: (949) 495-7553
Facsimile Number: (949) 495-8506
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(Former name, former address and former fiscal year,
if changed since last report)
Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [ ] N/A [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of June 30, 2000, there are
1,202,000 shares issued and outstanding.
Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X]
<PAGE>
NETSHIP FULFILLMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
INDEX
Balance Sheet
Statement of Operations Three Months ended June 30, 2000 & June 30, 1999
Statement of Operations Six Months ended June 30, 2000 & June 30, 1999
Statement of Cash Flows Six Months ended June 30, 2000 & June 30, 1999
Notes to Financial Statements
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Part II - Other Information
Signature Page
Financial Data Schedule
<PAGE>
NETSHIP FULFILLMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
Balance Sheet
(Unaudited)
JUNE 30,
2000
-------------
ASSETS
CURRENT ASSETS
Cash $ 136
-------------
TOTAL CURRENT ASSETS 136
-------------
$ 136
=============
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES $ 900
-------------
COMMITMENTS AND CONTINGENCIES -
SHAREHOLDERS' DEFICIT:
Common stock, 50,000,000 shares authorized, $.001 par value,
1,202,000 shares issued and outstanding 1,202
Additional paid-in capital 124,898
Deficit accumulated during the development stage (126,864)
-------------
TOTAL SHAREHOLDERS' DEFICIT (764)
-------------
$ 136
=============
The accompanying notes are an integral part of these financial statements.
<PAGE>
NETSHIP FULFILLMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months ended June 30,
-----------------------------
2000 1999
------------- -------------
<S> <C> <C>
Costs and expenses:
General and administrative $ 1,318 $ 8,815
------------- -------------
NET LOSS $ (1,318) $ (8,815)
============= =============
BASIC AND DILUTED NET LOSS PER SHARE $ (0.00) $ (0.01)
============= =============
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 1,202,000 864,889
============= =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
NETSHIP FULFILLMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
CUMULATIVE
FROM INCEPTION
Six Months ended June 30, (OCTOBER 29, 1996)
----------------------------- TO JUNE 30,
2000 1999 2000
------------- ------------- -------------
<S> <C> <C> <C>
Costs and expenses:
General and administrative $ 2,295 $ 18,375 $ 126,864
------------- ------------- -------------
NET LOSS $ (2,295) $ (18,375) $ (126,864)
============= ============= =============
BASIC AND DILUTED NET LOSS PER SHARE $ (0.00) $ (0.02)
============= =============
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 1,202,000 864,889
============= =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
NETSHIP FULFILLMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
CUMULATIVE
FROM INCEPTION
SIX MONTHS ENDED JUNE 30, (OCTOBER 29, 1996)
----------------------------- TO JUNE 30,
2000 1999 2000
------------- ------------- -------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (2,295) $ (18,375) $ (126,864)
Common Stock Issued for Services $ - $ - $ 100,000
Increase (Decrease) in Accounts Payable $ (4,530) $ 1,155 $ 900
------------- ------------- -------------
Net Cash Used by Operating Activities $ (6,825) $ (17,220) $ (25,964)
------------- ------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock - 2,460 3,100
Contribution to capital 3,000 20,000 23,000
------------- ------------- -------------
Net cash provided by financing activities 3,000 22,460 26,100
------------- ------------- -------------
Net increase (decrease) in cash (3,825) 5,240 136
CASH, BEGINNING OF PERIOD 3,961 100 -
------------- ------------- -------------
CASH, END OF PERIOD $ 136 $ 5,340 $ 136
============= ============= =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
NETSHIP FULFILLMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
-----------------------------------------------------------------
The accompanying unaudited financial statements of Netship Fulfillment,
Inc. (the "Company") have been prepared in accordance with generally
accepted accounting principles for interim financial information.
Accordingly, they do not include all of the information required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of
normal recurring adjustments) considered necessary for a fair presentation
have been included. Operating results for the six months ended June 30,
2000 are not necessarily indicative of the results for any future period.
These statements should be read in conjunction with the Company's
financial statements and notes thereto for the year ended December 31,
1999.
Organization
------------
Netship Fulfillment, Inc., an Oklahoma corporation ( the "Company") was
formed on October 29, 1996 under the name Premier Partners, Inc. The
Company changed its name to Netship Fulfillment, Inc. on February 23,
1999. The Company intends to become a full service fulfillment and
distribution company, specializing in promotional and catalog fulfillment,
especially for the internet industry. The Company is classified as a
development stage company because its principal activities involve
obtaining capital. The Company is currently being funded by its
management, through donated time and office space.
Use of estimates
----------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
<PAGE>
NETSHIP FULFILLMENT, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
2. GOING CONCERN
-------------------
The accompanying financial statements have been prepared assuming the
Company will continue as a going concern. Additional capital infusion is
necessary in order to fund current expenditures and achieve profitable
operations. This factor raises substantial doubt about the Company's
ability to continue as a going concern.
The Company's management intends to continue funding current expenditures
by means of contributions to capital and to raise additional funds through
equity offerings. However, there can be no assurance that management will
be successful in this endeavor.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
THE FOLLOWING DISCUSSION AND ANALYSIS CONTAINS FORWARD LOOKING STATEMENTS
REGARDING FUTURE EVENTS OR THE FUTURE FINANCIAL PERFORMANCE OF THE COMPANY THAT
INVOLVE CERTAIN RISKS AND UNCERTAINTIES. UNDER "FORWARD LOOKING STATEMENTS"
ACTUAL EVENTS OR THE ACTUAL FUTURE RESULTS OF THE COMPANY MAY DIFFER MATERIALLY
FROM ANY FORWARD LOOKING STATEMENT DUE TO SUCH RISKS AND UNCERTAINTIES.
OVERVIEW
--------
Netship Fulfillment, Inc. is a development stage company. A development stage
company is one for which principal operations have not commenced. Management has
devoted most of its activities to establishing the business. Operating losses
have been incurred to date, and will continue to incur as the Company continues
to use, rather than provide, working capital in its operations. The Company
intends to become a full service fulfillment and distribution company
specializing in promotional products and catalog fulfillment, especially for the
Internet industry.
The Company will recognize revenues from the sale of its products upon shipment.
RESULTS OF OPERATIONS
---------------------
NET REVENUES
------------
As a development stage company, the Company had no revenues for the three months
and six months ended June 30, 2000 and June 30, 1999.
COSTS AND EXPENSES
------------------
Costs and expenses for the three months ended June 30, 2000 of $1,318 were
solely related to the ongoing filing requirements of the Company for the three
months ended June 30, 2000. Costs and expenses for the three months ended June
30, 1999 of $8,815 were solely related to the ongoing filing requirements of the
Company for the three months ended June 30, 1999. Costs and expenses for the six
months ended June 30, 2000 of $2,295 were solely related to the ongoing filing
requirements of the Company for the six months ended June 30, 2000. Costs and
expenses for the six months ended June 30, 1999 of $18,375 were solely related
to the ongoing filing requirements of the Company for the six months ended
June 30, 1999.
OTHER INCOME (EXPENSE)
----------------------
The Company had no other income or expenses for the three months and six months
ended June 30, 2000 and June 30, 1999.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Company's cash and cash equivalents decreased from five thousand three
hundred forty dollars($5,340) at June 30, 1999 to one hundred thirty six
dollars($136) at June 30, 2000 due to costs and expenses for the ongoing filing
requirements of the Company.
The Company's liabilities decreased from one thousand two hundred forty five
dollars ($1,245) at June 30, 1999 to nine hundred dollars ($900) at June 30,
2000.
The Company's management currently believes that inflation has not had a
material impact on continuing operations.
FACTORS AFFECTING FUTURE PERFORMANCE
------------------------------------
In connection with the Private Securities Litigation Reform Act of 1995 (the
"Litigation Reform Act"), the Company has disclosed certain cautionary
information to be used in connection with written materials that may contain
"forward-looking statements" within the meaning of the Litigation Reform Act.
Such statements consist of any statement other than a recitation of historical
fact and can be identified by the use of forward-looking terminology such as
"intend", "may", "expect", "anticipate", "estimate", or "continue" or the
negative thereof or other variations thereon or comparable terminology. The
reader is cautioned that all forward-looking statements are necessarily
speculative and there are numerous risks and uncertainties that could cause
actual events or results to differ materially from those referred to in such
forward-looking statements. The reader is cautioned that the Company does not
have a policy of updating or revising forward-looking statements and thus he or
she should not assume that silence by management over time means that actual
events are bearing out as estimated in such forward-looking statements.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not a party to any pending legal proceeding. Management
is not aware of any threatened litigation, claims or assessments.
Item 2. Changes 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. 27 the Financial Data Schedule
Incorporation of Form 10-SB
---------------------------
The Company hereby incorporates by reference herein its Form 10-SB
filed with the U.S. Securities and Exchange Commission on June 22, 1999.
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Date: August 14, 2000 By: /S/ Michael Brown
-------------------------
Michael Brown, Director
and President
Date: August 14, 2000 By: /S/ Michael Brown
-------------------------
Michael Brown, Director
Secretary/Treasurer
