<PAGE>2
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the Quarter ended January 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period to
---------- ----------
Commission file number -
GLOBAL FOODS ONLINE, INC.
Exact name of Registrant as specified in its charter)
NEVADA 95-4741485
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification Number)
520 North Kings Road, Suite 214
Los Angeles, CA 90048
(Address of principal executive offices) (Zip Code)
Telephone: 323-852-9877
(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
and Exchange Act of 1934 during the preceding twelve months (or such
shorter period that the Registrant was required to file such reports),
and (2) has been subject to file such filing requirements for the past
thirty days.
Yes x No
------ ------
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the close of the period covered by this
report:
7,226,960 Shares of Common Stock ($.001 par value)
(Title of Class)
Transitional Small Business Disclosure Format (check one):
Yes No x
------- -------
<PAGE>3
Global Foods Online, Inc.
PART I: Financial Information
ITEM 1 - Financial statements
ITEM 2 - Management's' discussion and analysis of
financial condition and results of operations
PART II: Other Information
ITEM 6 - Exhibits and Reports on Form 8-K
<PAGE>4
PART I
Item 1. Financial Statements:
Global Foods Online, Inc.
(A Development Stage Company)
Balance Sheet
January 31, 2000
(Unaudited)
ASSETS
Current assets: 2000
Cash $ 24,044
--------
Total current assets 24,044
Office equipment net of accumulated
depreciation of $531 2,656
--------
Total assets $ 26,700
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,467
--------
Total current liabilities 11,467
Stockholders' equity:
Common stock, $.001 par value,
50,000,000 shares authorized, 7,226,960
shares issued and outstanding 7,227
Additional paid in capital 264,302
(Deficit) accumulated during
development stage (256,296)
--------
15,233
--------
$ 26,700
See accompanying notes to financial statements.
<PAGE>5
Global Foods Online, Inc.
(A Development Stage Company)
Statements of Operations
Three Months and Nine Months Ended January 31, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months Nine Months Nine Months Period From
Ended Ended Ended Ended Inception To
January 31, January 31, January 31, January 31, January 31,
2000 1999 2000 1999 2000
<S> <C> <C> <C> <C> <C>
Operating expenses $ 15,278 $ 2,992 $ 130,715 $ 2,992 $ 256,296
--------- --------- --------- --------- ---------
(Loss from operations) and net (loss) (15,278) $ (2,992) $ (130,715) $ (2,992) $ (256,296)
Per share information:
Basic and diluted (loss) per common share $ (0.00) $ (0.03) $ (0.02) $ (0.03) $ (0.10)
Weighted average shares outstanding 7,050,293 98,160 6,763,982 98,160 2,643,902
</TABLE>
See accompanying notes to financial statements.
<PAGE>6
Global Foods Online, Inc.
(A Development Stage Company)
Statements of Cash Flows
Nine Months Ended January 31, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months Period From
Ended Ended Inception To
January 31, January 31, January 31,
2000 1999 2000
<S> <C> <C> <C>
Net income (loss) $ (130,715) $ (2,992) $ (256,296)
Adjustments to reconcile net income to net
cash provided by operating activities:
Common stock issued for services - - 100,098
Charge off of goodwill - - 8,000
Changes in assets and liabilities:
Decrease in officer advance 30,000 - -
Increase in accounts payable 4,939 - 11,467
-------- -------- ---------
Total adjustments 34,939 - 119,565
-------- -------- ---------
Net cash provided by (used in)
operating activities (95,776) (2,992) (136,731)
Financing activities:
Purchase of office equipment (3,187) - (3,187)
-------- -------- ---------
Net cash provided by financing activities (3,187) - (3,187)
Financing activities:
Sale of common stock for cash 115,381 3,000 161,431
Sale of common stock warrants - - 2,000
-------- -------- ---------
Net cash provided by financing activities 115,381 3,000 163,431
-------- -------- ---------
Increase (decrease) in cash 16,418 8 23,513
Cash and cash equivalents,
beginning of period 7,095 - -
-------- -------- ---------
Cash and cash equivalents,
end of period $ 23,513 $ 8 $ 23,513
</TABLE>
See accompanying notes to financial statements.
<PAGE>7
Global Foods Online, Inc.
Notes to Financial Statements
Basis of presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions incorporated in
Regulation 10-SB of the Securities and Exchange Commission.
Accordingly, they 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 adjustments and accruals) considered
necessary for a fair presentation have been included.
The results of operations for the periods presented are not
necessarily indicative of the results to be expected for the full
year. The accompanying financial statements should be read in
conjunction with the Company's financial statements for the year ended
April 30, 1999.
Basic loss per share was computed using the weighted average number of
common shares outstanding.
During the nine months ended January 31, 2000, the Company received
gross proceeds of $115,381 from the continued sale of common stock at
an offering price of $.10 per share.
During the nine months ended January 31, 2000, $51,500 of advances to
an officer, of which $30,000 had been outstanding at April 30, 1999,
were utilized by the officer to establish an office in London,
England. The advances were charged to operations during the nine
months ended January 31, 2000.
<PAGE>8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations:
Trends and Uncertainties. Demand for Global's services will be
dependent on, among other things, general economic conditions which
are cyclical in nature. Inasmuch as a major portion of Global's
activities is the directory publication solely niche marketed to food
and beverage manufacturers, Global's business operations may be
adversely affected by Global's competitors and prolonged recessionary
periods.
Capital and Source of Liquidity. Global currently has no material
commitments for capital expenditures.
For the nine months ended January 31, 2000, Global purchased office
equipment of $3,187 resulting in net cash provided by investing
activities.
For the nine months ended January 31, 1999, Global pursued no
investing activities.
For the nine months ended January 31, 2000, Global sold common stock
for cash of $115,381 resulting in net cash provided by financing
activities of $115,381.
For the nine months ended January 31, 1999, Global sold common stock
for cash of $3,000 resulting in net cash provided by financing
activities of $3,000.
Global expects that the net proceeds from our recent offering, and the
cash flow from future operations upon commencement, if any, will be
sufficient to allow us to meet the expected growth in demand for our
products and services. Additionally, Global expects to utilize any
proceeds received from the exercise of the class A warrants to expand
operations. However, there can be no assurance that sufficient
warrant exercise will occur or that future advertising sales will meet
Global's growth expectations. Should either of these fail to occur,
Global may elect to
- reduce the planned expansion of operations or
- pursue other financing alternatives such as a rights offering,
warrant exercise or borrowings.
Implementation of either of the foregoing options could delay or
diminish Global's planned growth and adversely affect our
profitability.
On a long-term basis, liquidity is dependent on increased revenues
from operations, additional infusions of equity and debt financing.
Global does not have sufficient moneys to carry on operations for the
next 12 months. Global believes that additional capital and debt
financing in the next twelve months will allow Global to commence our
marketing and sales efforts and thereafter result in revenue and
greater liquidity in the long term. We will have to pursue other
financing alternatives as described above. However, we cannot be
assured that we will be able to obtain additional equity or debt
financing in the future, if at all.
Results of Operations. For the nine months ended January 31, 2000,
Global had no revenues and had an operating loss of (130,715).
For the nine months ended January 31, 2000, we had no revenue and we
had operating expenses of $130,715. The operating expense consisted
primarily of accounting fees of $10,092, legal fees of $2,614,
miscellaneous costs of $10,136, office supplies of $4,452, operating
expenses of $24,520, outside services of $41,278, printing and
reproduction fees of $12,785, professional fees of $9,431, travel of
$4,425 and other expenses of $10,982.
For the nine months ended January 31, 1999, we had no revenue and we
had operating expenses of $2,992.
For the year ended April 30, 1999, Global had operating expenses of
$121,339 consisting primarily of consulting fees of $99,355, printing
of $11,000, professional fees of $4,928 and miscellaneous expenses of
$6,056.
<PAGE>9
Plan of Operation. Global, over the next twelve months intends to
distribute our directories in the United States and internationally
and to utilize the World Wide Web in the implementation of its planned
business operations. Global has no need of product research and
development. Management possesses the experience to implement our
business plan. No significant equipment purchases are planned over
the next twelve months.
Global shall seek to maintain low operating expenses while commencing
operations and increasing operating revenues. Global is focusing on
maintaining a low cost administrative approach. However, increased
marketing expenses will probably occur in future periods as Global
attempts to further increase its marketing and sales efforts.
<PAGE>10
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits (numbered in accordance with Item 601 of
Regulation S-K)
None
(b) Reports on Form 8-K
None
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.
Date: June 1, 2000 /s/ John Harrison
------------------------------
-
By John Harrison, President