UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended February 29, 2000
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______________________ to ______________________
Commission File Number 0-26737
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uData Net Corp.
(Exact name of registrant as specified in its charter)
Texas 75-2817764
- --------------------------------------- -----------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
508 Decker Drive, Suite 200, Irving, Texas 75062
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(Address of principal executive offices)
(972) 870-9591
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(Registrant's telephone number, including area code)
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 ___
21,417,500 Common Shares were outstanding as of March 1, 2000
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<PAGE>
UData Net Corp.
I N D E X
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Balance Sheets
February 29, 2000 (Unaudited) and
May 31, 1999 3
Statements of Income
Three months ended February 29,
2000 (Unaudited) 4
Condensed Statements of Cash Flows
Three months ended February 29,
2000 5
Selected Notes to Condensed Financial
Statements (Unaudited) 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II. OTHER INFORMATION 6
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL INFORMATION
CONDENSED BALANCE SHEET
uData Net Corp.
<TABLE>
<CAPTION>
February 29, 2000 November 30, 1999
----------------- -----------------
(unaudited) (unaudited)
Assets:
<S> <C> <C>
Cash (including savings) $ 15,260.75 $(30,757.55)
Accounts Receivable $358,980.93 $323,082.83
Inventories $146,293.56 $131,664.20
Prepaid expenses $ -- $ 5,409.00
Total Current Assets $520,895.24 $429,398.48
Property: Plant & Equipment - net $134,847.77 $121,362.30
Other Assets $ 72,124.34 $ 64,911.90
Total Assets $727,867.35 $615,672.68
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Accounts Payable $124,564.94 $112,108.44
Accrued Expenses $ -- $ 1,154.00
Payable to stockholder, officer $ 47,855.15 $ 47,855.15
Total Current Liabilities $172,420.09 $161,117.59
STOCKHOLDERS' EQUITY (DEFICIT)
Subordinated Debt $ 28,577.77 $ 28,577.77
Common Stock $521,073.71 $498,621.71
Additional Paid-in capital $ -- $ --
Accumulated gain/deficit $ 195.78 $(72,644.39)
Total Liability & Stockholders' Equity $727,867.35 $615,672.68
</TABLE>
3
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL INFORMATION
STATEMENT OF INCOME
(unaudited)
<TABLE>
<CAPTION>
Three months ended
February 29, 2000 November 30, 1999
(unaudited) (unaudited)
<S> <C> <C>
Sales $ 603,768.87 $ 407,716.32
Cost of Sales $ 122,301.46 $ 90,430.17
Gross Profit $ 481,467.41 $ 317,286.15
Selling, General and Administrative Expenses $ 377,362.84 $ 342,559.29
Gain (Loss) from operations $ 104,104.57 $ (25,273.14)
Other income (expense) $ -- $ --
Interest income $ -- $ --
Interest expense $ 6,804.36 $ 7,472.82
Loss before income taxes $ 97,300.21 $ (32,745.96)
Income Taxes $ (19,460.14) $ --
Net Gain (Loss) $ 77,840.17 $ (32,745.96)
Loss per common share $ -- $ --
Loss per common share assuming dilution $ -- $ --
Weighted average outstanding shares $ 21,417,500 $ 21,417,500
</TABLE>
4
<PAGE>
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
February 29, 2000 November 30, 1999
----------------- -----------------
(unaudited) (unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Gain (Loss) $ 77,840.17 (32,745.96)
Depreciation $ 28,789.00 $ 28,789.00
Changes in current assets and liabilities:
Accounts receivable $(35,898.10) (316,582.83)
Prepaid expenses $ -- (5,409.00)
Inventories $(14,629.36) (131,664.20)
Accounts Payable $ 12,456.50 44,946.16
Accrued expenses $ 1,154.00 379.65
Payable to stockholder, officer $ -- $ 732.86
Net cash provided by (used in) operating activities $ 69,712.21 (411,554.32)
CASH FLOWS FROM INVESTING AND OTHER ACTIVITIES:
Purchase of equipment $ -- $ --
Other $ -- $ --
Net cash used in investing and other activities $ -- $ --
Net decrease in cash $ 69,712.21 $(411,554.32)
Cash and savings:
Beginning of period $(410,432.68) $ 1,121.64
End of period $(340,720.47) $(410,432.68)
</TABLE>
5
<PAGE>
UData Net Corp
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Condensed Financial Statements:
The condensed balance sheet as of February 29, 2000, the statement of
operations for the three-month period ended February 29, 2000, and the
condensed statement of cash flows for the three-month period then ended
have been prepared by the Company, without audit. In the opinion of
management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position,
results of operations and changes in cash flows at February 29, 2000
and for all periods presented have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested
that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Company's
May 31, 1999 audited financial statements. The results of operations
for the period ended February 29, 2000 are not necessarily indicative
of the operating results for the full year.
Udata Net Corp.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
There was income in quarter ended February 29, 2000 of $603,768 as
compared to $407,716 in the quarter ending November 30, 1999. There were co;sts
of goods sold of $122,301 resulting in a gross profit of $481,467, there were
selling, general and administrative expenses of $377,362, for a net gain in the
quarter ended February 29, 2000 of $77,840, compared to a net loss in the
quarter ended November 30, 1999 of $32,745.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company is aware of no legal proceeding which is pending or
threatened to which the Company is a party or of which its property is
subject.
Item 6. Exhibits and Reports on Form 8-K
(b) No reports on Form 8-K were filed during the three months ended
February 29, 2000.
6
<PAGE>
SIGNATURE
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.
uData Net Corp
Date May 3, 2000 By: /s/ Lindsey Vinson
-------------------------------------
President and Director
7
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-START> DEC-01-1999
<PERIOD-END> FEB-29-2000
<CASH> 15,260
<SECURITIES> 0
<RECEIVABLES> 358,980
<ALLOWANCES> 0
<INVENTORY> 146,293
<CURRENT-ASSETS> 520,895
<PP&E> 134,847
<DEPRECIATION> 0
<TOTAL-ASSETS> 727,867
<CURRENT-LIABILITIES> 172,420
<BONDS> 0
0
0
<COMMON> 521,073
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 727,867
<SALES> 603,768
<TOTAL-REVENUES> 603,768
<CGS> 122,301
<TOTAL-COSTS> 377,362
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 97,300
<INCOME-TAX> 18,460
<INCOME-CONTINUING> 77,840
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 77,840
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
