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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended Sept 30, 2000
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[ ] 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 000-27949
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WORLD ASSOCIATES, INC.
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(Exact name of small business issuer as specified in its charter)
Nevada 88-0406903
(State of other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
World Associates, Inc.
2949 East Desert Inn Road, Suite 1
Las Vegas, Nevada 89121
(702) 914-6092
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(Issuer's telephone number)
Check whether the issuer (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 [ ]
State number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date. As of September 30, 2000, 8,274,000
shares of the registrant's $.001 par value common stock were issued and
outstanding.
Transmittal Small Business Disclosure Format (check one):
Yes [X] No [ ]
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WORLD ASSOCIATES, INC.
(FORMERLY LA INVESTMENT ASSOCIATES, INC.)
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2000
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WORLD ASSOCIATES, INC.
(FORMERLY LA INVESTMENT ASSOCIATES, INC.)
(A DEVELOPMENT STAGE COMPANY)
CONTENTS
PAGE 1 INDEPENDENT ACCOUNTANTS' REPORT
PAGE 2 BALANCE SHEETS AS OF SEPTEMBER 30, 2000 (UNAUDITED) AND
DECEMBER 31, 1999
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS AND
NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 AND
FOR THE PERIOD FROM JUNE 19, 1990 (INCEPTION) TO
SEPTEMBER 30, 2000
PAGE 3 (UNAUDITED)
PAGES 4 - 5 STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2000 AND 1999 AND FOR THE PERIOD FROM
JUNE 19, 1990 (INCEPTION) TO SEPTEMBER 30, 2000
(UNAUDITED)
PAGES 6 - 7 NOTES TO FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2000
(UNAUDITED)
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INDEPENDENT ACCOUNTANTS' REPORT
-------------------------------
To the Board of Directors of:
World Associates, Inc.
We have reviewed the accompanying balance sheet of World Associates, Inc.
(formerly LA Investment Associates, Inc.) (a development stage company) as of
September 30, 2000 and the related statements of operations and cash flows for
the three months and nine months then ended and for the period from June 19,
1990 (inception) to September 30, 2000. These financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements in order for them to be in
conformity with generally accepted accounting principles.
/S/ WEINBERG & COMPANY, P.A.
Boca Raton, Florida
November 1, 2000
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<TABLE>
WORLD ASSOCIATES, INC.
(FORMERLY LA INVESTMENT ASSOCIATES, INC.)
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
--------------
<CAPTION>
ASSETS
------
September 30,
2000 December 31,
(Unaudited) 1999
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<S> <C> <C>
CURRENT ASSETS
Cash $ 50,252 $ 1,896
Loan receivable 25,000 -
Prepaid attorney fees 12,795 12,795
Other current assets 1,972 -
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Total Current Assets 90,019 14,691
OTHER ASSETS
Deposit on asset purchase 5,000 -
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TOTAL ASSETS $ 95,019 $ 14,691
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Due to shareholders $ - $ 5,000
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Total Current Liabilities - 5,000
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STOCKHOLDERS' EQUITY
Common stock, $.001 par value, 25,000,000 shares
authorized, 8,274,000 and 5,110,000 shares issued and
outstanding at September 30, 2000 and
December 31, 1999, respectively 8,274 5,110
Additional paid in capital 235,646 24,810
Accumulated deficit during development stage (91,401) (20,229)
Stock subscription note receivable (50,000) -
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102,519 9,691
Less treasury stock at cost (5,000 shares) 7,500 -
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Total Stockholders' Equity 95,019 9,691
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 95,019 $ 14,691
========== ==========
</TABLE>
See accompanying notes to financial statements
2
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<TABLE>
WORLD ASSOCIATES, INC.
(FORMERLY LA INVESTMENT ASSOCIATES, INC.)
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
------------------------
(UNAUDITED)
<CAPTION>
Cumulative From
For the Three For the Three For the Nine For the Nine June 19, 1990
Months Ended Months Ended Months Ended Months Ended (Inception) to
September 30, September 30, September 30, September 30, September 30,
2000 1999 2000 1999 2000
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INCOME $ - $ - $ - $ - $ -
------------ ------------ ------------ ------------ ------------
EXPENSES:
Legal and professional fees 1,000 4,972 25,904 7,127 39,031
Telephone 499 655 2,791 1,619 5,064
General and administrative 945 2,033 3,886 2,185 8,861
------------ ------------ ------------ ------------ ------------
TOTAL EXPENSES 2,444 7,660 32,581 10,931 52,956
------------ ------------ ------------ ------------ ------------
OTHER INCOME/(EXPENSE)
Dividend income 1,292 53 3,853 124 3,999
Interest income 1,008 - 1,972 - 1,972
Net expenses incurred in
connection with asset purchase (44,416) - (44,416) - (44,416)
------------ ------------ ------------ ------------ ------------
TOTAL OTHER INCOME/(EXPENSE) (42,116) 53 38,591 124 (38,445)
------------ ------------ ------------ ------------ ------------
NET LOSS $ (44,560) $ (7,607) $ (71,172) $ (10,807) $ (91,401)
============ ============ ============ ============ ============
Net loss per common share -
basic and diluted $ (0.01) $ (0.00) $ (0.01) $ (0.01) $ (0.04)
============ ============ ============ ============ ============
Weighted average number of common shares
outstanding - basic and diluted 8,274,000 2,100,000 7,208,223 2,100,000 2,575,889
============ ============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements
3
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<TABLE>
WORLD ASSOCIATES, INC.
(FORMERLY LA INVESTMENT ASSOCIATES, INC.)
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
------------------------
(UNAUDITED)
<CAPTION>
CUMULATIVE FROM
FOR THE NINE FOR THE NINE JUNE 19, 1990
MONTHS ENDED MONTHS ENDED (INCEPTION) TO
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000
---------- ---------- ----------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (71,172) $ (10,807) $ (91,401)
Adjustments to reconcile net loss to net cash
used by operating activities:
Decrease in prepaid expenses - - 7,205
Increase in other current assets (1,972) - (1,972)
Increase in deposit on asset purchase (5,000) - (5,000)
Increase in accounts payable - 2,176 -
---------- ---------- ----------
Net cash used by operating activities (78,144) (8,631) (91,168)
---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Loan receivable (25,000) - (25,000)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Due to shareholder (5,000) 2,000 -
Increase in paid in capital - 5,870 4,820
Purchase of treasury shares (7,500) - (7,500)
Proceeds from common stock issuances 164,000 3,000 169,100
---------- ---------- ----------
Net cash provided by financing activities 151,500 10,870 166,420
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INCREASE IN CASH AND CASH EQUIVALENTS 48,356 2,239 50,252
CASH AND CASH EQUIVALENTS -
BEGINNING OF PERIOD 1,896 - -
---------- ---------- ----------
CASH AND CASH EQUIVALENTS -
END OF PERIOD $ 50,252 $ 2,239 $ 50,252
========== ========== ==========
</TABLE>
See accompanying notes to financial statements
4
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WORLD ASSOCIATES, INC.
(FORMERLY LA INVESTMENT ASSOCIATES, INC.)
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
------------------------
(UNAUDITED)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
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In April 2000, the Company issued 3,000,000 shares of common stock in exchange
for a note receivable of $50,000.
During 1998, the Company issued 10,000 shares of common stock for legal services
valued at $20,000 of which $7,205 has been charged to operations and $12,795 has
been recorded as a prepaid expense.
See accompanying notes to financial statements
5
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WORLD ASSOCIATES, INC.
(FORMERLY LA INVESTMENT ASSOCIATES, INC.)
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
AS OF SEPTEMBER 30, 2000
------------------------
NOTE 1 BASIS OF PRESENTATION
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The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles and the rules
and regulations of the Securities and Exchange Commission for interim
financial information. Accordingly, they do not include all the
information necessary for a comprehensive presentation of financial
position and results of operations.
It is management's opinion, however that all material adjustments
(consisting of normal recurring adjustments) have been made which are
necessary for a fair financial statements presentation. The results for
the interim period are not necessarily indicative of the results to be
expected for the year.
On September 19, 2000, the company filed the necessary documents with
the State of Nevada to change its name from LA Investment Associates,
Inc. to World Associates, Inc., (the "Company").
For further information, refer to the financial statements and
footnotes for the year ended December 31, 1999 included in the
Company's Form 10-SB/A2 filed on April 21, 2000.
NOTE 2 LOAN RECEIVABLE
------------------------
On May 12, 2000, the Company entered into a letter of intent with Baja
Timber S.A. ("Baja"), a Mexican corporation whereby the Company will
provide financing in the form of loans totaling $25,000 to Baja as a
means of financing Baja projects. The loan to Baja bears interest at
the rate of 15% per annum and shall be for a term of 48 months or as
otherwise agreed upon by the parties. The loan is secured by a Baja
Timber stock option which gives the Company the right to purchase 50%
of the issued and outstanding shares of Baja in exchange for 500,000
restricted common shares in the Company.
NOTE 3 SUBSCRIPTIONS RECEIVABLE
---------------------------------
In April 2000, the Company issued 3,000,000 shares of common stock in
exchange for a $50,000 promissory note due in April 2001 and bearing
interest at 8% per annum. The $50,000 subscription note receivable is
shown as a reduction from stockholders' equity.
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NOTE 4 STOCKHOLDERS' EQUITY
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COMMON STOCK
------------
The Company is authorized to issue 25,000,000 shares of common stock at
$.001 par value. The Company has issued 8,274,000 shares through
September 30, 2000.
NOTE 5 ASSET PURCHASE AGREEMENT
---------------------------------
On August 11, 2000, HomeTrend, Inc. entered into an agreement to
purchase the assets of Pyromid, Inc. (a company in bankruptcy). The
purchase price of $200,000 is to be paid with a $5,000 deposit upon
signing of the asset purchase agreement, a proposed credit of $25,000
from the previous company that withdrew their offer to purchase these
assets, and $170,000 to be paid by November 20, 2000. World Associates,
Inc. agreed to provide funds toward the purchase of these assets, to
fund operational expenses and use its best efforts, along with
HomeTrend, Inc., to raise funds to close the asset purchase and fund a
plan of operations. The transaction is also collateralized by 102,000
shares of the Company's stock, which is owned by several shareholders.
As of September 30, 2000, the Company has expended $49,416, of which
$44,416 has been charged to operations and $5,000 has been recorded as
a deposit on the asset purchase. World Associates, Inc. took an
assignment of HomeTrend, Inc.'s agreement to acquire the Pyromid assets
as security for this transaction. HomeTrend has agreed to fund a
portion of the acquisition and operational costs in addition to World
Associates, Inc.
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ITEM II- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS:
The following discussion of the results of operations and financial condition
should be read in conjunction with the audited financial statements and related
notes appearing under the caption "Financial Statements".
The expenses reflected in the company's financial statements come from
evaluating proposed transactions and the cost of maintaining a fully reporting
public company. The Company had minor amounts of dividend and interest income
that slightly reduced its loss from the amount of expenses incurred.
The Company had total assets of $95,019 on September 30, 2000 of which
approximately $50,000 were cash assets. The Company believes it has sufficient
resources to meet its needs while evaluating business opportunities. The Company
expects to collect the outstanding stock receivable which would provide further
resources to meet working capital requirements. These funds should provide
sufficient resources to maintain Company operations this time.
The Company will need to raise substantial additional capital in order to
effectuate any of the transactions it is evaluating. There is no assurance that
these efforts to raise additional capital will be successful nor any assurance
that the Company's actual capital needs will not be greater than anticipated, or
that the Company will generate revenues adequate to fund its operations in the
absence of other sources.
Funds spent by the company during its development stage should be considered
risk funds. That is, they are funds spent to cover the administrative cost of
maintaining a public company or funds spent as risk money for due diligence
expenses, deposits or other transactional costs while investigating
transactions.
PART II-OTHER INFORMATION
The statements in this quarterly report on Form 10-QSB that are not historical
constitute "forward-looking statements". Said forward-looking statements involve
risks and uncertainty which may cause the actual results, performance or
achievements of the Company and its subsidiaries to be materially different from
any future results, performance or achievements, express or implied by such
forward-looking statements. These forward-looking statements are identified by
their use of such terms and phrases as "expects", "intends", "goals",
"estimates", "projects", "plans", "anticipates", "should", "future", "believes",
and "scheduled".
8
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The variables which may cause differences include, but are not limited to, the
following: general economic and business conditions; competition; success of
operating initiatives; operating costs; advertising and promotional efforts; the
existence or absence of adverse publicity; changes in business strategy or
development plans; the ability to retain management; availability, terms, and
deployment of capital necessary for operations, acquisition or other
necessities; business abilities and the judgment of personnel; availability of
qualified personnel; labor and employment benefit costs; availability and costs
of raw materials and supplies; and changes in, or failure to comply with various
government regulations; where. Although the Company believes that the
assumptions could be inaccurate, and therefore, there can be no assurance that
the forward-looking statements included in this filing will prove to be
accurate. In light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such information
should not be regarded as a representation by the Company, or any person, that
the expectations of the Company can be achieved.
ITEM 2. CHANGES IN SECURITIES
There are no changes since the last reporting period.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
Exhibit Description of Exhibits
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None
(b) Reports on Form 8-K
None
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.
World Associates, Inc.
Date: November 9, 2000 /s/ Randall Prouty
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Randall Prouty
President, Secretary, and Director
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