SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE OF 1934
For the quarterly period ended September 30, 2000
Or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
AllnetServices.com Corporation
(Exact name of registrant as specified in this charter)
Florida 65-0755455
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(State of other jurisdiction (IRS Employer
of incorporation) Identification No.)
3650 Coral Ridge Drive, Suite 101, Coral Springs, FL 33065
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Address of principal executive offices
Registrant's telephone number, including area code 954-346-7575
Check whether the issuer (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 [ ]
As of September 30, 2000 there were 14,879,867 shares of the Issuer's Common
Stock outstanding.
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ALLNETSERVICES.COM CORP.
FORM 10-QSB
<TABLE>
<CAPTION>
INDEX
Part I. Financial Information
PAGE(S)
<S> <C>
Item 1. Financial Statements 3-8
Consolidated Balance Sheets at September 30 2000 (Unaudited) and December 31, 1999 3
Consolidated Statements of Operations for the three months and nine months ended
September 30, 2000 and 1999 (Unaudited) 4-5
Statement of Shareholders Equity 6
Consolidated Statements of Cash Flows for the nine months ended September 30, 2000 and 1999 7
(Unaudited)
Notes to Consolidated Financial Statements (Unaudited) 8
Item 2. Management's Discussion and Analysis 9-10
Part II. Other Information 11
Item 1.Legal Proceedings 11
Item 2. Signatures 11
Exhibits
Financial Data Schedule
</TABLE>
2
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Part I. Financial Information
Item 1. Financial Statements
ALLNETSERVICES.COM CORP.
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30,2000 December 31,1999
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(UNAUDITED)
ASSETS
<S> <C> <C>
Current Assets
Cash $ 58,677 $ --
Accounts receivable (net allowance for doubtful accounts of $90,000 2,020,235 25,752
Due from factor -- 790,040
Inventories (net of allowance for obsolescence of $11,000) 79,910 8,158
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Total current assets 2,158,822 823,950
Property and equipment 81,347 70,344
Less: Accumulated depreciation 31,733 21,458
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Property and equipment-net 49,614 48,886
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Other 7,268 7,268
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$ 2,215,704 $ 880,104
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LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts payable and accrued liabilities $ 1,429,219 $ 298,399
Due to factor -- 767,614
Due to related party-net 1,682 95,182
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Total current liabilities 1,430,901 1,161,195
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Shareholders Equity (Deficit)
Common stock-$.0001 par value, 50,000,000 shares authorized,
Issues and outstanding 14,879,867 at September 30, 2000 and
10,044,700 at December 31,1999 1,363 1,005
Additional paid in capital 6,185,429 5,175,863
Deficit (5,401,989) (5,457,959)
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Total shareholders' equity (deficit) 784,803 (281,091)
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$ 2,215,704 $ 880,104
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</TABLE>
The accompanying notes are an integral part of these financial statements.
3
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ALLNETSERVICES.COM CORP.
STATEMENT OF OPERATIONS
Three months ended September 30, 2000 and September 30,1999
Three Months Ended September 30,
2000 1999
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Unaudited Unaudited
Revenues $ 1,018,990 $ 809,737
Cost of Sales 896,457 781,867
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Gross profit 122,533 27,870
Selling, general and administrative expenses 105,982 195,476
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Net income (loss) $ 16,551 ($ 167,606)
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Basic income (loss) per common share $ 0.001 ($ 0.017)
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Average common shares outstanding 11,332,256 10,053,928
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The accompanying notes are an integral part of these financial statements.
4
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ALLNETSERVICES.COM CORP.
STATEMENT OF OPERATIONS
Nine months ended September 30, 2000 and September 30,1999
Nine Months Ended September 30,
--------------------------------
2000 1999
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Unaudited Unaudited
Revenues $ 4,079,426 $ 2,333,254
Cost of Sales 3,003,235 2,119,991
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Gross profit 1,076,191 213,263
Selling, general and administrative expenses 1,020,221 659,965
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Net Income (loss) $ 55,970 ($ 446,702)
Basic income (loss) per common share $ 0.005 ($ 0.05)
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Average common shares outstanding 11,332,256 8,930,200
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The accompanying notes are an integral part of these financial statements.
5
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ALLNETSERVICES.COM CORP
STATEMENT OF SHAREHOLDERS EQUITY
Nine Months ended September 30, 2000
<TABLE>
<CAPTION>
Common Stock Additional Paid-In Capital (Deficit)
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<S> <C> <C> <C>
Balance December 31, 1999 $ 1,005 $ 5,175,863 ($5,457,959)
Sale of common stock 186 430,000 --
Common stock issued for services 172 579,566
Net income -- -- 55,970
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Balance September 30, 2000 (Unaudited) $ 1,363 $ 6,185,429 ($5,401,989)
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
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ALLNETSERVICES.COM CORP.
STATEMENT OF CASH FLOWS
Nine Months ended September 30, 2000 and September 30, 1999
<TABLE>
<CAPTION>
Nine Months ended September 30,
---------------------------------
2000 1999
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UNAUDITED UNAUDITED
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $ 55,970 ($ 446,702)
Adjustments to reconcile net (loss) to net cash
provided (used) by operating activities
Depreciation 10,275 8,676
Common stock issued for services 579,738
(Increase) decrease in accounts receivable (1,994,483) (552,471)
Increase (decrease) in due to/from factor-net 22,426 222,480
(Increase) in inventory (71,752) (31,660)
(Increase) in other assets -- (25,000)
(Decrease) increase in accounts payable and accrued expenses 1,130,820 163,907
(Decrease) in due to related party (93,500) (52,450)
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Total Adjustments (416,476) (266,518)
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Net cash (used) by operating activities (360,506) (713,220)
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Cash flows from investing activities
Purchase of property and equipment (11,003) (21,536)
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Net cash (used) by investing activities (11,003) (21,563)
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Cash flows from financing activities
Sale of restricted common stock 430,186 700,002
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Net cash provided by financing activities 430,186 700,002
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Increase in cash 58,677 (34,781)
Cash- beginning -- 64,385
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Cash - end $ 58,677 $ 29,604
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Supplemental disclosure of cash flow information:
Interest paid $ 671 $ 4,151
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</TABLE>
The accompanying notes are an integral part of these financial statements.
7
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ALLNETSERVICES.COM CORP.
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)
Note 1. Summary of Significant Accounting Policies
Certain information and footnote disclosures, normally included in financial
statements prepared in accordance with generally accepted accounting principles,
have been condensed or omitted in this Form 10-QSB in compliance with the Rules
and Regulations of the Securities and Exchange Commission. However, in the
opinion of ALLNETSERVICES.COM CORP. the disclosures contained in the Form 10-QSB
are adequate to make the information fairly presented. See Form 10-KSB for the
year ended December 31, 1999 for additional information relevant to significant
accounting policies followed by the Company.
Note 2. Basis of Presentation
In the opinion of the Company, the accompanying unaudited financial statements
reflect all adjustments (consisting of normal recurring accruals) necessary to
present fairly the financial position as of September 30, 2000 and the results
of operations for the nine month periods ended September 30, 2000 and 1999. The
results of operations for the nine months ended September 30, 2000 are not
necessarily indicative of the results which may be expected for the entire year.
The Company reclassified certain minor items to conform to the September 30,
2000 presentation.
8
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PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SEE ATTACHED FINANCIAL STATEMENTS OF THE ISSUER
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion and analysis should be read in conjunction with the
financial statements and notes thereto appearing elsewhere in this report and
together with the Company's Form 10-KSB for the year ended December 31, 1999.
OVERVIEW
AllnetServices.com Corp. is a diversified Internet-related business that
specializes in the on-line marketing and distribution of a broad range of
products and e-commerce solutions to business-to-business (B2B) and
business-to-consumer (B2C) customers. Its Internet-related businesses include:
AllnetServices.com, which offers professional graphics design, database
management, web site development and web hosting services; AllCopiers.com,
offering wholesale pricing on copiers and other related office equipment;
Allnetmortgages.com, an online mortgage lending web site; Allmonitors.com, a web
site dedicated solely to offering all monitor-related merchandise;
AllnetDirect.com, which lists over 45,000 computer-related products;
Allnotebooks.com, offering notebooks computers, PDA's and accessories; and
Allnetpagers.com which offers wireless messaging products and services.
Allnetmortgages.com, Allnetdirect.com and Allmonitors.com are also published in
Spanish. Allcopiers.com is also an authorized dealer for Sharp Electronics
Digital Imager line of digital copiers/printers in the Broward County, Florida
territory.
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO SEPTEMBER 30, 1999 AND NINE
MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO SEPTEMBER 30, 1999
Net sales are comprised of product sales, net returns and allowances. Net sales
for the three months ended September 30, 2000 were $1,018,990 compared to
$809,737 for the same period in 1999. Net sales for the nine month period ending
September 30, 2000 were $4,079,426 compared to $2,333,254 for the same period in
1999. This increase in sales was due to increased marketing efforts for display
products, and an increase in sales and service revenue in the AllCopiers.com and
Web services divisions.
Cost of sales for the three months ended September 30, 2000 was $896,457
compared to $781,867 for the same period in 1999. Cost of sales for the nine
months ended September 30, 2000 was $3,003,235 compared to $2,119,991 for the
same period in 1999. These increases are attributed to an increase in overall
sales.
Selling, general and administrative expense includes administrative, finance and
purchasing, personnel and related costs, general office and depreciation
expense, as well as professional fees and advertising costs. Selling, general
and administrative expenses for the three months ended September 30, 2000 were
$105,982 compared to $195,476 for the same period in 1999. Selling, general and
administrative expenses for the nine month period ended September 30, 2000 was
$1,020,221 compared to $659,965 for the same period in 1999. The decrease in the
three month period ended September 30, 2000 is attributable to a decrease in
payroll expense and other cost cutting measures, and the increase in the nine
month period ended September 30, 2000 is attributable to an overall increase in
gross sales.
Net income for the three months ended September 30, 2000 was $16,551 compared to
a net loss of $167,606 for the same period in 1999. Net income for the nine
months ended September 30, 2000 was $55,970 compared to a net loss of $446,702
for the same period in 1999. This increase in net income is primarily
attributable to increased revenues, profit margins, and a decrease in Company
expenses.
LIQUIDITY AND CAPITAL RESOURCES
Net cash used by operating activities for the nine months ended September 30,
2000 was $360,506 compared to $713,220 for the same period in 1999. Net cash
used in operating activities was primarily attributable to an increase in sales
and an increase in accounts receivable.
9
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Net cash used in investing activities for the six months ended September 30,
2000 was $11,003 compared to $21,563. This decrease was primarily related to a
decrease in purchases of property and equipment.
Net cash provided by financing activities for the nine months ended September
30, 2000 was $430,186 compared to $700,002 for the same period in 1999. This
decrease is attributable to a decrease in the sale of restricted common stock.
YEAR 2000
The Company had successfully completed all Year 2000 remediation, replacement,
and testing prior to January 1, 2000. Through May 1, 2000, the Company nor its
suppliers have experienced no Year 2000 problems that affected business
operations. At this time, the Company does not expect any future problems
related to Year 2000 to materialize. The cost of Year 2000 compliance was not
material.
ALLNETSERVICES.COM CORP.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
10
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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.
ALLNETSERVICES.COM CORP.
Date: August 8, 2000 By: /s/ ROBERT AUBEL
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Robert Aubel, President & CEO
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EXHIBIT INDEX
EXHIBIT DESCRIPTION
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1.0 Financial Data Schedule
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