SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 1999
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from __________ to __________
Commission File No. 000-27191
www.eBIZnet.com, Inc.
___________________________________________________________
(Exact name of small business issuer as specified in its
charter)
Florida 65-0725217
________ ____________
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
1450 South Dixie Highway, Boca Raton, Florida 33432
_____________________________________________________________
(Address of principal executive offices, including zip code)
Issuer's Telephone Number: (561)447-8804
______________________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
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
____ ____
As of September 30, 1999, 6,948,500 shares of common stock
were outstanding.
Transitional Small Business Disclosure Format:
Yes X No
____ ____
<PAGE>
TABLE OF CONTENTS
Form 10-QSB
3rd Quarter Ended September 30, 1999
www.eBIZnet.com, Inc.
Page
PART I: FINANCIAL INFORMATION
Item 1.
Consolidated Balance Sheet 2
Consolidated Statement Of Operations 3
Consolidated Statement Of Cash Flows 4
Notes To Consolidated Financial Statements 5
Item 2.
Management's Discussion And
Analysis Or Plan Of Operation 6
PART II: OTHER INFORMATION 8
SIGNATURES 9
<PAGE>
PART I. FINANCIAL INFORMATION
<PAGE> 1
ITEM 1. www.eBIZnet.com, Inc.
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1999
(UNAUDITED)
ASSETS
Cash $ 11,380
Accounts receivable 62,585
Trade credits 38,490
Other 5,075
_____________
Total current assets 117,530
Property and equipment 17,189
Other assets
Goodwill 1,075,765
Purchased shell 190,000
Customer lists 173,335
Software 410,800
_____________
Total Assets $ 1,984,619
=============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 247,402
Related party payables 100,359
Other 5,117
____________
Total current liabilities 352,878
____________
Total Liabilities 352,878
____________
Stockholders' equity
Common stock: $.001 par
value, 25,000,000 shares
authorized, 6,948,500
shares issued
& outstanding 6,948
Paid in capital 2,835,402
Accumulated deficit ( 1,210,609)
____________
Total Stockholders' Equity 1,631,741
____________
Total Liabilities And
Stockholders' Equity $ 1,984,619
============
See Notes to Consolidated Financial Statements
<PAGE> 2
www.eBIZnet.com, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
1998 1999 1998 1999
____ ____ ____ ____
Sales $ 71,796 $ 88,249 $ 234,428 $ 419,506
Operating expenses (119,296) (448,025) (354,375) (1,468,659)
_________ _________ _________ ___________
Income (loss) from
operations ( 47,500) (359,776) (119,947) (1,049,153)
_________ _________ _________ ___________
Other income (expenses)
Interest income 37 318 38 318
Interest expense ( 4,178) ( 4,178)
Sale of fixed assets 1,118 1,118
_________ _________ _________ ___________
Total other income (exp.) ( 4,141) 1,436 ( 4,140) 1,436
_________ _________ _________ ___________
Income (loss) before provision
for income taxes ( 51,641) (358,340) (124,087) (1,047,717)
Provision for income tax - - - -
_________ _________ _________ ___________
Net income (loss) $( 51,641) $(358,340) $(124,087) $(1,047,717)
========= ========= ========= ===========
Net income (loss) per share
(Basic and fully diluted) $( .02) $( .05) $( .06) $( .16)
========= ========= ========= =========
Weighted average number of
common shares outstanding 2,745,500 6,948,500 2,229,833 6,507,611
========= ========= ========= =========
*less than $.01 per share
See Notes to Consolidated Financial Statements
<PAGE> 3
www.eBIZnet.com, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
September 30,
1998 1999
____ ____
Cash Flows From Operating Activities:
Net income (loss) $(124,087) $(1,047,717)
Adjustments to reconcile net
income (loss) to net cash
provided by (used for)
operating activities:
Depreciation and amortization 351,397
Accounts receivable ( 61,911)
Trade credits ( 38,490)
Accounts pay. and accrued expenses 59,704 10,008
Overdrafts ( 20,423)
Compensatory stock issuances 118,724
Other 42
_________ _________
Net cash provided
by (used for)
operating activities ( 64,383) (688,370)
_________ _________
Cash Flows from Investing Activties:
Equipment purchases ( 9,193)
Equipment sales 1,118
_________ _________
Net cash provided
by (used for)
investing activities ( 8,075)
Cash Flows from Financing Activities:
Increase in rel. party. note 75,000 22,215
Sale of common stock - 157,500
Exercise of warrants 528,110
_________ _________
Net cash provided
by (used for)
financing activites 75,000 707,825
_________ _________
Net Increase (Decrease) In Cash 10,617 11,380
Cash At The Beginning Of The Period 1,677 -
_________ _________
Cash At The End Of The Period $ 12,294 $ 11,380
========= =========
Schedule of non-cash investing and financing activities:
During the nine months ended September 30, 1999 the Company issued
390,000 common shares for assets valued at $2,017,724.
See Notes to Consolidated Financial Statements
<PAGE> 4
www.eBIZnet.com, Inc.
Notes to Consolidated Financial Statements
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited financial statements have been
prepared in accordance with the instructions to
Form 10-QSB and do not include all of the information and
disclosures required by generally accepted accounting
principles for complete financial statements. All
adjustments which are, in the opinion of management,
necessary for a fair presentation of the results of
operations for the interim periods have been made and are
of a recurring nature unless otherwise disclosed herein.
The results of operations for such interim periods are not
necessarily indicative of operations for a full year.
The accompanying consolidated financial statements include the accounts
of www.eBIZnet.com, Inc. and its wholly owned subsidiaries
Electronic Business Network, Inc., JBX Online, Inc., and Global
Online Exchange, Inc. All intercompany accounts and transactions
have been eliminated.
<PAGE> 5
www.eBIZnet.com, Inc.
ITEM 2. Management's Discussion and Analysis or Plan of
Operation
Business Development
The Company was incorporated in Florida in January, 1997 under the name
Florida Internet Stock Exchange, Inc. to develop and operate proprietary
websites. In October 1997, the Company changed its name to Florida Diet
Services, Inc. and began to focus its business on the development of its
proprietary website, www.dietplace.com, a multimedia interactive network
environment for the dissemination of human nutrition and dietary information
and for the promotion, marketing and sales of specialized food and nutrition
diet products. The Company, which adopted its current name in December 1998,
currently operates its business through five wholly owned subsidiaries,
each targeted at a different niche of the internet/information technology
industry.
In December, 1998 the Company purchased the shares of Electronic
Business Network, Inc., a Florida corporation formed in 1995 to provide
internet advertising and marketing, including the creation of websites and
advertising banners for use at these sites.
In January, 1999 the Company's wholly owned subsidiary, JBX Online, Inc.,
purchased the assets of JBX Designs, Inc. d/b/a JBX Online, which provides
voice/data/network communications services and is developing proprietary
hardware and software products for use in the digital telecommunications
field.
In March, 1999 the Company's wholly owned subsidiary, Global Online
Exchange, Inc., purchased the assets of International Trade Exchange,
Ltd., d/b/a International Credit Reserve Exchange ("ICRE"). ICRE is an
established internet barter exchange company.
In April, 1999 the Company's wholly owned subsidiary, Global Online
Exchange, Inc., purchased the assets of Barter Accounting Software, consisting
of a proprietary barter accounting software program and related goodwill.
On September 29, 1999, Garland E. Harris was removed by a shareholders'
consent action, as Director, President and Chief Executive Officer of the
Corporation and as a signatory to the Corporation's bank account. By a
resolution of the Board of Directors, Willis B. Hale was elected as
Chairman and Chief Executive Officer. Mr. Hale has over twenty years of
varied financial, internet and business experience. His original training
is in engineering, where he has excelled in environmental engineering and
design. Mr. Hale brings over two decades of finance and acquisition experience
to the role of CEO and Chairman.
<PAGE> 6
Business of Issuer
Principal Products, Services, and Markets
Electronic Business Network ("EBN"), was formed in 1995 to provide
internet advertising and marketing services to prospective advertisers.
The new management team,however, realized that future trends in web site
advertising, although still growing, would eventually be partially replaced
by other forms of internet marketing communications such as "opt-in mail".
These newer methods of advertising would be less expensive and more
effective than banner ads for the paying advertiser. Therefore it was
determined that the company would not rely on a revenue model that might be
trending downward over time. Currently, management is exploring new sources
of revenues and business opportunities.
Global Online Exchange, Inc. ("GOE"). GOE was formed in March, 1999 to
develop and operate an online trade and exchange portal, in which barter
organizations, corporate trade exchanges, businesses and individuals, anyone
with a product or service to buy, sell, exchange or trade, will be able to
conduct barter transactions online in real time, globally. Revenues are
generated by providing listing services, information transaction exchanges,
sales commissions, membership dues and escrow services for the online barter
community. According to the International Reciprocal Trade Association
("IRTA"), a barter industry trade organization, the barter community trades
more than $9 billion per year in goods and services over the internet. It is
GOE's plan to offer a unique selling proposition to the international business
person; the ability to buy, sell, trade, or exchange goods and services for
part trade, part cash or full exchange for other goods - whatever can be
negotiated between the two parties within the context of the Global Online
Exchange. The GOE will be a personalized portal for traders, exchangers,
buyers, sellers and negoitators of arrangements between parties, across all
borders.
In March, 1999, GOE acquired the assets of International Credit Reserve
Exchange, Ltd. ("ICRE"), a company with eighteen (18) years experience as a
barter/trade exchange company. ICRE has over 300 active members trading
more than $2,000,000 annually. In addition, GOE purchased the assets of
Barter Accounting Software of Kansas City, Missouri in April 1999. Barter
Accounting Software is the developer and owner of a widely used barter
accounting software program. GOE intends to utilize its new software and
the existing clientele of ICRE to seek and expand opportunities in the
online barter industry.
JBX Designs, Inc. ("JBX"). JBX, based in Deerfield Beach, Florida was
formed in January, 1999 to provide voice, date and network communication
services to corporate clients. In January, 1999 JBX purchased the assets of
JBX Designs, Inc., whose principal, John Boudreaux has more than twelve
(12) years experience in this field. Mr. Boudreaux is now employed by JBX.
The major current focus of JBX is the development of network access point
hardware and software, which allows for shared resources among
telecommunication service providers.
Capital Publications, Inc. is inactive at this time.
Stormcrow Studios ("Stormcrow"). Stormcrow was formed in April, 1999 to
develop multimedia content for use primarily on broadcast internet websites.
In April, 1999 the Company employed Gerald Talifero to develop and produce
multimedia content for the Company. Stormcrow's current focus is the
production of multimedia advertisements for broadcast through the internet.
Stormcrow's work product is still in development.
<PAGE> 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters To A Vote of Securities Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K - None
<PAGE> 8
SIGNATURES
In accordance with the requirements of the Exchange
Act, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
www.eBIZnet.com, Inc.
By: /s/Willis Hale
Willis Hale, President
and Director
Date: March 1, 2000
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AT 09/30/99 (UNAUDITED)
AND STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED 09/30/99
(UNAUDITED). IT IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 11380
<SECURITIES> 0
<RECEIVABLES> 62585
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 117530
<PP&E> 17189
<DEPRECIATION> 0
<TOTAL-ASSETS> 1984619
<CURRENT-LIABILITIES> 352878
<BONDS> 0
0
0
<COMMON> 6948
<OTHER-SE> 1624793
<TOTAL-LIABILITY-AND-EQUITY> 1984619
<SALES> 419506
<TOTAL-REVENUES> 420942
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1468659
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1047717)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1047717)
<DISCONTINUED> 0
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<CHANGES> 0
<NET-INCOME> (1047717)
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</TABLE>
