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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 AUGUST 31, 2000
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 0-26909
budgethotels.com Inc.
(Exact name of registrant as specified in its charter)
Nevada 91-0179013
(State of other jurisdiction (IRS Employer Identification
of incorporation or organization) Number)
1449 St. Paul Street
Suite 202
Kelowna, British Columbia V1Y 2ES
(Address of principal executive offices)
(250) 868-1171
(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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of August 31, 2000: 13,214,000
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BUDGETHOTELS.COM, INC. AND SUBSIDIARY
Consolidated Balance Sheets
ASSETS
August 31, November 30,
2000 1999
(Unaudited)
CURRENT ASSETS
Cash $ 7,804 $ 71,143
Accounts receivable, net 368,093 129,748
Accounts receivable - related party - 8,217
Prepaid commissions 90,396 -
Prepaid management fees 2,797 -
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Total Current Assets 469,090 209,108
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PROPERTY AND EQUIPMENT (NET) 89,449 83,558
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OTHER ASSETS
Deferred offering costs 28,308 -
Prepaid commissions - 39,612
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Total Other Assets 28,308 39,612
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TOTAL ASSETS $ 586,847 $ 332,278
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BUDGETHOTELS.COM, INC. AND SUBSIDIARY
Consolidated Balance Sheets (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
August 31, November 30,
2000 1999
(Unaudited)
CURRENT LIABILITIES
Accounts payable $ 5,633 $ 26,844
Unearned revenue 421,395 226,601
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Total Current Liabilities 427,028 253,445
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock: 1,000,000 shares authorized
of $0.01 per value, no shares issued and
outstanding - -
Common stock: 50,000,000 shares authorized
of $0.001 par value, 13,214,000 shares issued
and outstanding 13,214 13,214
Additional paid-in capital 834,171 834,171
Accumulated deficit (687,566) (768,552)
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Total Stockholders' Equity 159,819 78,833
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TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 586,847 $ 332,278
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BUDGETHOTELS.COM, INC. AND SUBSIDIARY
Consolidated Statements of Operations
(Unaudited)
For the For the
Three Months Ended Nine Months Ended
August 31, August 31,
2000 1999 2000 1999
REVENUE
Net sales $ 202,668 $ 145,440 $ 596,989 $ 451,084
Cost of goods sold 106,665 113,658 248,202 311,895
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Gross Profit 96,003 31,782 348,787 139,189
---------- ---------- ---------- ----------
EXPENSES
General and
administrative 44,760 229,990 246,898 660,043
Depreciation 6,800 2,524 20,903 7,572
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Total Expenses 51,560 232,514 267,801 667,615
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Income (Loss) from
Operations 44,443 (200,732) 80,986 (528,426)
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OTHER INCOME (EXPENSE)
Gain (loss) on
exchange rate - (7,633) - (1,356)
Interest income - - - -
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Total Other Income
(Expense) - (7,633) - (1,356)
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NET INCOME (LOSS) $ 44,443 $ (208,365) $ 80,986 $ (529,782)
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BASIC EARNINGS (LOSS)
PER SHARE $ 0.00 $ (0.01) $ 0.00 $ (0.04)
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BUDGETHOTELS.COM, INC. AND SUBSIDIARY
(Formerly Info Center International, Inc.)
Consolidated Statements of Stockholders' Equity
Additional
Common Stock Paid-in Accumulated
Shares Amount Capital Deficit
Balance, November 30, 1998 11,487,000 $ 11,487 $ 61,894 $ (167,476)
Cancellation of common stock (600,000) (600) (27,480) -
Common stock issued for cash
at $0.25 per share 1,585,000 1,585 394,665 -
Common stock issued for
cash at $0.30 to $0.50 per
share 42,000 42 16,958 -
Common stock issued for
services at $0.25 per share 400,000 400 99,600 -
Options on common stock
issued below market value
at $0.01 per share - - 240,000 -
Common stock issued for
services at $0.50 per share 300,000 300 149,700 -
Stock offering costs - - (101,166) -
Net loss for the year ended
November 30, 1999 - - - (601,076)
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Balance, November 30, 1999 13,214,000 13,214 834,171 (768,552)
Net income for the nine
months ended August 31,
2000 (unaudited) - - - 80,986
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Balance, August 31, 2000
(Unaudited) 13,214,000 $ 13,214 $ 834,171 $ (687,566)
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BUDGETHOTELS.COM, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(Unaudited)
For the For the
Three Months Ended Nine Months Ended
August 31, August 31,
2000 1999 2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 44,443 $ (208,365) $ 80,986 $(529,782)
Adjustments to reconcile net
income (loss) to net cash used
by operating activities:
Depreciation 6,800 2,524 20,904 7,572
Common stock and options issued
for services - - - 311,920
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable (194,729) (15,730) (218,365) (59,768)
(Increase) decrease in
deferred offering costs - - (28,308) -
(Increase) decrease in deposits
and prepaids (29,894) (5,296) (53,581) (7,819)
Increase (decrease) in allowance
for bad debt (19,980) - (19,980) -
Increase (decrease) in accounts
payable (16,323) 2,085 (21,211) (14,449)
Increase (decrease) in unearned
revenue 219,532 27,021 194,7943 2,360
(Increase) decrease) in accounts
receivable - related party 8,217 (2,161) 8,217 (2,161)
Increase (decrease) in accounts
payable - related party - (2,518) - (2,518)
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Net Cash Provided (Used) by
Operating Activities 18,066 (202,440) (36,544) (264,645)
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CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (11,782) (46,827) (26,795) (72,983)
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Net Cash Provided (Used) by
Investing Activities (11,782) (46,827) (26,795) (72,983)
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CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on note payable
- related party - - - (44,407)
Proceeds from sales of common stock - 150,000 - 563,250
Stock offering costs - - - (101,166)
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Net Cash Provided (Used) by
Financing Activities $ - $ 150,000 $ - $ 417,677
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BUDGETHOTELS.COM, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows (Continued)
(Unaudited)
For the For the
Three Months Ended Nine Months Ended
August 31, August 31,
2000 1999 2000 1999
NET INCREASE (DECREASE)
IN CASH $ 6,284 $ (99,267) $ (63,339) $ 80,049
CASH AT BEGINNING OF
PERIOD 1,520 192,460 71,143 13,144
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CASH AT END OF PERIOD $ 7,804 $ 93,193 $ 7,804 $ 93,193
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SUPPLEMENTAL CASH FLOW INFORMATION
CASH PAID FOR:
Interest $ - $ - $ - $ -
Income taxes $ - $ - $ - $ -
NON-CASH FINANCING ACTIVITIES
Common stock and options issued for
services rendered $ - $ - $ - $ 311,920
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BUDGETHOTELS.COM, INC. AND SUBSIDIARY
Notes to the Consolidated Financial Statements
August 31, 2000 and November 30, 1999
NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The accompanying financial statements 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 cash
flows at August 31, 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 November 30, 1999 audited financial statements. The
result of operations for the nine months ended August 31, 2000 are
not necessarily indicative of the operating results for the full
years.
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ITEM 6. MANAGEMENT'S DISCUSSIONS AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
The following discussion should be read in conjunction with the
consolidated statements and the notes thereto:
OPERATIONS DURING THE INTERIM PERIOD OF AUGUST 31, 2000.
For the three month period ended August 31, 2000.
Net sales for the three month period ended August 31, 2000 were
$202,668, an increase of 39.3% compared to sales of $145,440 for the
comparative three month period ended August 31, 1999.
The Company had a net profit of $44,443 for the three month
period ending August 31, 2000 compared to a loss of ($208,365) for
the comparative period ended August 31, 1999.
For the nine month period ended August 31, 2000.
Net sales for the nine month period ended August 31, 2000 were
$596,989, an increase of 32.3% compared to sales of $451,084 for the
comparative nine month period ended August 31, 1999.
The Company had a net profit of $80,986 for the nine month
period ending August 31, 2000 compared to a loss of ($529,782) for
the comparative period ended August 31, 1999.
The Company's working capital improved from a deficiency of
($44,337) as of November 30, 1999 to a surplus of $42,062 as of
August 31, 2000. The improvement in the working capital was a result
of the Company's profitable operations for the period ended August
31, 2000 and the reclassification of prepaid commissions from other
assets to a current asset.
LIQUIDITY AND CAPITAL RESOURCES
The Company's working capital improved by $86,399 for the nine
month period ending August 31, 2000 and management expects to have
adequate cash to maintain operations for the balance of its fiscal
year and does not anticipate the need to raise additional cash
through the sale of shares or debt to finance the Company's ongoing
business.
RESULTS OF OPERATIONS
The Company derives its revenue from two sources consisting of
an Internet web site and advertising boards.
For the three month period ended August 31, 2000.
Net sales for the three month period ending August 31, 2000 were
$202,668 compared to $145,440 for the comparative period ending
August 31, 1999.
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The increase in the net sales is a result of the Company owning
more advertising boards and earning revenue from the Company's web
site that was operational during the period ending August 31, 2000.
The Company's cost of sales for the three month period ended
August 31, 2000 was $106,665 or 52.6% of net sales compared to
$113,658 or 78.1% of net sales for the three month period ended
August 31, 1999 and as a result the Company's gross margins from
operations increased to $96,003 or 47.4% of sales compared to a gross
margin of 21.9% for the comparative period. The increased gross
margins is a result of reduced commissions paid on advertising board
renewals and no commissions paid on Internet web site revenues.
The Company's general and administrative expenses decreased from
$229,990 for the three month period ending August 31, 1999 to $44,760
for the three month period ended August 31, 2000. The decrease in
the general and administrative expenses was a result of reduced
professional services and web site development costs.
Net income for the three month period ended August 31, 2000 was
$44,443 compared to a loss of ($208,365) for the three month period
ended August 31, 1999.
For the nine month period ended August 31, 2000.
Net sales for the nine month period ending August 31, 2000 were
$596,989 compared to $451,084 for the comparative period ending
August 31, 1999.
Cost of sales for the nine month period ending August 31, 2000
was $248,202 or 41.6% of net sales compared to $311,895 or 69.1% of
net sales for the nine month period ending August 31, 2000.
The Company's gross margins from operations for the nine month
period ending August 31, 2000 increased to $348,787 or 58.4% of net
sales compared to $139,189 or 30.9% of net sales for the nine month
period ended August 31, 1999.
The Company's general and administrative expenses decreased from
$660,043 for the nine month period ended August 31, 1999 to $246,896
for the nine month period ended August 31, 2000.
Net income for the nine month period ended August 31, 2000 was
$80,986 compared to a loss of $(529,782) for the nine month period
ended August 31, 2000.
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SIGNATURES
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.
BUDGETHOTELS.COM INC.
(registrant)
Date: October 11, 2000
By: /s/ William J. Marshall
William J. Marshall, President,
Chief Executive Officer,
Treasurer, Chief Financial Officer
and a member of the Board of
Directors.
