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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 March 31, 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
------- ----------
(State of other jurisdiction (IRS Employer
of incorporation) Identification No.)
3650 Coral Ridge Drive, Suite 101, Coral Springs, FL 33065
----------------------------------------------------------
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 May 1, 2000 there were 12,695,700 shares of the Issuer's Common Stock
outstanding.
<PAGE>
ALLNETSERVICES.COM CORP.
FORM 10-QSB
INDEX
Part I Financial Information
PAGE(S)
Item 1. Financial Statements 3-8
Item 2. Management's Discussion and Analysis 9-10
Part II. Other Information 10
Item 1. Legal Proceedings 10
Item 2. Signatures 10
2
<PAGE>
ALLNETSERVICES.COM CORP.
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
---- ----
UNAUDITED
ASSETS
Current Assets
<S> <C> <C>
Cash $ 47,297 $ --
Accounts receivable (net of allowance for doubtful accounts
of $90,000) 78,120 25,752
Due from factor 646,663 790,040
Inventories (net of allowance for obsolescence of $11,000) 8,158 8,158
----------- -----------
Total current assets 780,238 823,950
----------- -----------
Property and equipment 70,344 70,344
Less: Accumulated depreciation 24,883 21,458
----------- -----------
Property and equipment-net 45,461 48,886
----------- -----------
Other 7,268 7,268
----------- -----------
$ 832,967 $ 880,104
=========== ===========
LIABILITIES & SHAREHOLDERS' DEFICIT
Current Liabilities
Accounts payable and accrued liabilities $ 335,268 $ 298,399
Due from factor 621,944 767,614
Due to related party-net 114,182 95,182
----------- -----------
Total current liabilities 1,071,394 1,161,195
----------- -----------
Shareholders' Deficit
Commonstock-$.0001 par value, 50,000,000 shares authorized, issued and
outstanding 10,184,700 at March 31, 2000 and
10,044,700 at December 31, 1999 1,019 1,005
Additional paid-in capital 5,210,849 5,175,863
Deficit (5,450,295) (5,457,959)
----------- -----------
Total shareholders' deficit (238,427) (281,091)
----------- -----------
$832,967 $880,104
=========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
ALLNETSERVICES.COM CORP.
STATEMENTS OF OPERATIONS
Three Months ended March 31, 2000 and March 31, 1999
<TABLE>
<CAPTION>
Three Months Ended March 31,
---------------------------------------
2000 1999
-------------------- ------------------
UNAUDITED UNAUDITED
<S> <C> <C>
Revenues $ 846,850 $ 1,131,768
Cost of sales 679,661 1,038,363
----------- -----------
Gross profit 167,189 93,405
Selling, general, and administrative expenses 159,525 254,450
----------- -----------
Income (loss) from operations before income tax benefit 7,664 (161,045)
Income tax benefit -- --
----------- -----------
Net income (loss) $ 7,664 ($ 161,045)
=========== ===========
Basic earnings (loss) per common share $ 0.001 ($ 0.02)
=========== ===========
Average common shares outstanding 10,053,928 8,182,367
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
ALLNETSERVICES.COM CORP.
STATEMENT OF SHAREHOLDERS' DEFICIT
Three months ended March 31, 2000
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in Capital (Deficit)
------------ --------------- ---------
<S> <C> <C> <C>
Balance December 31, 1999 $ 1,005 $5,175,863 ($5,457,959)
Sale of Common Stock 14 34,986 --
Net Income -- -- 7,664
Balance March 31,2000 (Unaudited) ----------- ---------- -----------
$ 1,019 $5,210,849 ($5,450,295)
=========== ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
ALLNETSERVICES.COM CORP.
STATEMENTS OF CASH FLOWS
Three Months ended March 31, 2000 and March 31, 1999
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
2000 1999
---- ----
UNAUDITED UNAUDITED
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $ 7,664 ($161,045)
Adjustments to reconcile net income (loss) to net cash
provided (used) by operating activities
Depreciation 3,425 2,806
(Increase) decrease in accounts receivable (52,368) 31,406
(Decrease) in due to/ from factor-net (2,293) --
(Increase) in inventory -- (26,435)
(Increase) in other assets (25,000)
(Decrease) Increase in accounts payable and accrued expenses 36,869 (34,471)
(Decrease) Increase in due to related party 19,000 (51,950)
--------- ---------
Total adjustments 4,633 (103,644)
--------- ---------
Net cash provided (used) by operating activities 12,297 (264,689)
--------- ---------
Cash flows from investing activities
Purchase of property and equipment -- (17,858)
--------- ---------
Net cash (used) by investing activities -- (17,858)
--------- ---------
Cash flows from financing activities
Sale of common stock 35,000 700,002
--------- ---------
Net cash provided by financing activities 35,000 700,002
--------- ---------
Increase in cash 47,297 417,455
Cash--beginning -- 14,385
--------- ---------
Cash--end $ 47,297 $ 431,840
========= =========
Supplemental disclosure of cash flow information:
Interest paid $ 551 $ 313
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
AllnetServices.com Corp.
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
(UNAUDITED)
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 this 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.
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 March
31, 2000 and the results of operations for the three month periods ended
March 31, 2000 and 1999 and cash flows for each of the three month periods
ended March 31, 2000 and 1999. The results of operations for the three
months ended March 31, 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 March 31,
2000 presentation.
7
<PAGE>
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. 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 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
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO MARCH 31, 1999
Net sales are comprised of product sales, net returns and allowances. Net sales
for the three months ended March 31, 2000 were $846,850 compared to $1,131,768
for the same period in 1999. This decrease in sales was due to a decrease in
promotional spending and several customer orders shipping in the second quarter.
Cost of sales for the three months ended March 31, 2000 were $679,661 as
compared to $1,038,363 for the three months ended March 31,1999. The decrease is
attributable to the decrease in net sales in the period.
Selling, general and administrative expenses for the three months ended March
31, 2000 were $159,525 as compared to $254,450 for the three months ended March
31, 1999. The decrease is primarily due to a decrease in Company payroll and
promotional expenses.
Net income of the Company was $7,664 for the three months ended March 31, 2000
as compared to a net loss of $161,045 for the three months ended March 31, 1999.
The increase in net income is primarily attributable to increased profit margins
and a decrease in Company expenses.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities for the three months ended March 31,
2000 was $12,297 as compared to $264,689 in cash used by operating activities
for the three months ended March 31, 1999. This increase in cash provided by
operating activities is due to an increase in net income and cost cutting
activities.
At March 31, 2000, the Company had total current assets of $780,238 for the
three months ended March 31, 2000 as compared to $823,950 for the three months
ended March 31, 1999.
Net cash used in investing activities was $0 for the three months ended March
31, 2000 as compared to $17,858 for the three months ended March 31, 1999. This
decrease was due to the fact that no assets were purchased in the period.
Net cash provided by financing activities was $35,000 for the three months ended
March 31, 2000 as compared to $700,002 for the three months ended March 31,
1999. This decrease is due to the fact that there were no substantial capital
stock sales during the period.
8
<PAGE>
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.
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: May 8, 2000 By: /s/ ROBERT AUBEL
--------------------
Robert Aubel, President & CEO
9
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
- ------- -----------
1.0 Financial Data Schedule
10
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-2000
<PERIOD-START> Jan-01-2000
<PERIOD-END> Mar-31-2000
<CASH> 47,297
<SECURITIES> 0
<RECEIVABLES> 168,120
<ALLOWANCES> 90,000
<INVENTORY> 19,158
<CURRENT-ASSETS> 780,238
<PP&E> 70,344
<DEPRECIATION> 24,883
<TOTAL-ASSETS> 832,967
<CURRENT-LIABILITIES> 1,071,394
<BONDS> 0
0
0
<COMMON> 1,019
<OTHER-SE> 7,268
<TOTAL-LIABILITY-AND-EQUITY> 832,967
<SALES> 846,850
<TOTAL-REVENUES> 0
<CGS> 679,661
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 159,525
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,664
<INCOME-TAX> 0
<INCOME-CONTINUING> 7,664
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,664
<EPS-BASIC> 0.001
<EPS-DILUTED> 0.001
</TABLE>
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