UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For quarterly period ended September 30, 1999
____ 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: 001-15301
EQUITYALERT.COM, INC.
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(exact name of registrant as specified in its charter)
NEVADA 58-2377963
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
Suite 214 - 1628 West 1st Ave, Vancouver, British Columbia V6J 1G1
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(Address of principal executive offices)
Registrant's telephone number, including area code: (604) 659-5009
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Indicate by check mark whether the registrant: (1) has filed all reports
required 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
The number of shares of the Registrant's Common Stock, $0.00001 par value, as of
November 5, 1999: 41,391,186
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EQUITYALERT.COM, INC.
FORM 10-QSB, QUARTER ENDED SEPTEMBER 30, 1999
INDEX
PART I FINANCIAL INFORMATION
Item 1 Financial Statements
Consolidated Balance Sheet.................................................... 3
Consolidated Statement of Operations...........................................4
Consolidated Statement of Stockholder's Equity.................................5
Consolidated Statement of Cash Flows...........................................7
Interim Consolidated Statement of Cash Flows. .................................8
Notes to Consolidated Financial Statements . . . . . ..........................9
All schedules are omitted because they are not applicable or the required
information is shown in the financial statements or notes thereto.
Item 2 Management's Discussion and Analysis . . . . . . . . . . . . . . . .10
PART II OTHER INFORMATION
Item 1 Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Item 2 Changes in Securities . . . . . . . . . . . . . . . . . . . . . . . . 12
Item 3 Defaults Upon Senior Securities . . . . . . . . . . . . . . . . . . . 12
Item 4 Submission of Matters to a Vote of Security Holders . . . . . . . . . 12
Item 5 Other Information . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Item 6 Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . . 12
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
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Item 1 Financial Statements
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<TABLE>
<CAPTION>
EQUITYALERT.COM, INC.
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<S> <C> <C>
September 30, December 31,
1999(Unaudited) 1998 (Audited)
ASSETS
Current Assets
Cash and Cash Equivalents $ 755,586 $ 3,551
Stock Subscription Receivables - 100,000
Other Receivable
Prepaid Expenses 21,917
Total Current Assets 777,503 103,551
Fixed Assets
Computer Equipment 9,955 0
Total Assets $ 787,458 $ 103,551
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUIITY
Current Liabilities
Accounts Payable $ 17,152 $ 21,458
Other Advances $ 10,000 $ 10,000
Total Current Liabilities $ 27,152 $ 31,458
Stockholders' Equity
Preferred Stock: $0.001 Par Value; Authorized 1,000,000 shares
Issued and Outstanding, NONE 0 0
Common Stock: $0.00001 Par Value, Authorized 100,000,000 shares;
Issued and Outstanding, 41,391,186 and 26,382,186 at September 30,
1999 and December 31, 1998, respectively 414 264
Additional Paid In Capital 1,554,534 711,684
Loss Accumulated During the Development Stage (794,642) (639,855)
Total Stockholders' Equity 760,306 72,093
Total Liabilities and Stockholder's Equity $ 787,458 $ 103,551
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</TABLE>
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<TABLE>
<CAPTION>
EQUITYALERT.COM, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 1999 AND 1998
AND FOR NINE PERIOD ENDED SEPTEMBER 30, 1999 AND 1998
<S> <C> <C> <C> <C> <C>
The Three The Three The Nine The Nine Accumulated
Months Months Months Months During The
Period Ended Period Ended Period Ended Period Ended Development
Sept 30,1999 Sept 30,1998 Sept 30,1999 Sept 30,1998 Stage
Revenues $0 $0 $0 $0 $0
Operating Expenses
General and Administrative $137,808 $840 $179,383 $ 67,778 819,661
Operating Loss ($137,808) ($840) ($179,383) ($67,778) ($819,661)
Other Income
Interest Income 10,752 0 24,596 $ 1 25,019
Net Loss Available to Common ($127,056) ($840) ($154,787) ($67,777) ($794,642)
============= ============== ============= ============== ==========
Loss Per Weighted Average Share
of Stock (0.00) (0.00) (0.04) (0.00) (0.19)
============= ============== ============= ============== ============
Weighted Average Number of
Outstanding Shares 41,391,186 26,382,186 4,139,186 26,382,186 4,139,186
============= ============= ============ ============= ===========
</TABLE>
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<TABLE>
<CAPTION>
EQUITYALERT.COM, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM INCEPTION (JANUARY 13, 1997) THROUGH SEPTEMBER 30, 1999
<S> <C> <C> <C> <C> <C> <C>
Loss
Accumulated
Additional During the
Preferred Stock Common Stock Paid In Development
Shares Amounts Shares Amounts Capital Stage Total
Issuance of Common Stock For
Services Rendered, 60,000 $ 1 $ 2,999 $ 3,000
January 13, 1997
Issuance of Common Stock For
Cash, February 28, 1997 0 75,000 75,000
Conversion of Debt to Equity,
June 16, 1997 0 84,691 84,691
Issuance of Common Stock For -
Cash, June 16, 1997 0 14,586 14,586
Issuance of Common Stock For
Services, June 16, 1997 1 205,722 205,723
Issuance of Common Stock For
Cash, August 12, 1997 0 25,000 25,000
Issuance of Common Stock For
Services, Rendered, August 0 75,000 75,000
12, 1997
Conversion of Debt to Equity,
December 31, 1997 0 63,948 63,948
Loss, From Inception (January 13,
1997) to December 31, 1997 (510,395) (510,395)
Balance, December 31, 1997 0 0 $ 2 546,946 $ (510,395) 36,553
</TABLE>
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<TABLE>
<CAPTION>
EQUITYALERT.COM, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM INCEPTION (JANUARY 13, 1997) THROUGH SEPTEMBER 30, 1999
<S> <C> <C> <C> <C> <C> <C> <C>
Loss
Accumulated
Additional During the
Preferred Stock Common Stock Paid In Development
Shares Amounts Shares Amounts Capital Stage Total
Issuance of Common Stock For Cash,
August 15, 1998 200,000 $ 2 $ 4,998 $ 5,000
Cancellation of Common Stock Issued,
August 17, 1998 0 0 0
Issuance of Common Stock For Cash,
December 11, 1998 4,000,000 40 99,960 100,000
Issuance of Common Stock For
Services, December 11, 1998 2,000,000 20 49,980 50,000
Issuance of Common Stock For
Services Rendered, December 31, 200 9,800 10,000
1998
Loss, Year Ended December 31, 1998 (129,460) (129,460)
Balance, December 31, 1998 0 0 264 711,684 (639,855) 72,093
Common Stock Issued For Cash, March
31, 1999 150 824,850 825,000
Loss, Six Months Period Ended
June 30,1999 (27,731) (27,731)
Balance, June 30, 1999 0 0 414 1,536,534 (667,586) 869,362
Common Stock Options Exercised,
September 15, 1999 4,000 0.04 7999.96 8,000
Common Stock Options Exercised,
September 20, 1999 5,000 0.05 9999.95 10,000
Loss, Nine Months Period Ended 0
September 30, 1999 (127,056) (127,056)
Balance, September 30, 1999 0 0 $ 414 $ 1,554,534 $ (794,642) 760,306
============================================================================================
</TABLE>
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<TABLE>
<CAPTION>
EQUITYALERT.COM, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 1999 AND 1998
AND FROM INCEPTION (JANAUARY 13, 1997) TO SEPTEMBER 30, 1999
<S> <C> <C> <C>
Nine Months Nine Months From Inception
Ended Ended To Sept 30
Sept 30, 1999 Sept 30, 1998 1999
Cash Flows From Operating Activities:
Net Loss $ (154,787) $ (67,777) $ (794,642)
Adjustments to Reconcile Net Loss to Net Cash
Used By Operating Activities
Common Stock Issued For Services 343,723
Changes in Assets and Liabilities
Depreciation -
(Increase) Decrease in Other Receivable 6,744 -
(Increase) Decrease in Deposits
Increase (Decrease) in Accounts Payable (4,306) 17,152
(Increase) Decrease in Prepaid Expenses (21,917) (21,917)
Total Adjustments (26,223) 6,744 338,958
Net Cash Used In Operating Activities (181,010) (61,033) (455,684)
Cash Flows From Investing Activities
Purchase of Equipment (9,955) 0 (9,955)
Net Cash Flows Used In Investing Activities (9,955) (9,955)
Cash Flows From Financing Activities
Proceed From Sale of Common Stock 925,000 18,196 1,044,586
Proceed From Exercise of Common Stock 18,000 18,000
Advances From Related Parties 0 158,639
Net Cash Provided By Financing Activities 943,000 18,196 1,221,225
Increase (Decrease) in Cash and Cash Equivalents 752,035 (42,837) 755,586
Cash and Cash Equivalents at Beginning of Period 3,551 47,069 0
Cash and Cash Equivalents at End of Period $ 755,586 $ 4,232 $ 755,586
================ ================ ===============
</TABLE>
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<TABLE>
<CAPTION>
EQUITYALERT.COM, INC.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 1999 AND 1998
AND FROM INCEPTION (JANUARY 13, 1999) TO SEPTEMBER 30, 1999
<S> <C> <C> <C>
From
Nine Months Nine Months Inception to
Ended Sep 30, Ended Sep 30, Sept 30,
1999 1998 1999
Supplemental Disclosure of Cash Flow Information:
Cash paid for:
Interest $0 $0 $0
============= ============= ============
Income Taxes $0 $0 $0
============= ============= ============
Noncash Investing and Financing Activities:
Issuance of Common Stock for Services $0 $60,000 $283,723
============= ============= ==================
Common Stock Issued to Satisfy Current Liabilities $0 $0 $148,639
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</TABLE>
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EQUITYALERT.COM, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1999 AND 1998
1. PRESENTATION OF INTERIM INFORMATION
The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with generally accepted accounting practices and in the
opinion of management of EquityAlert.Com, Inc. (the Company), include all normal
adjustments considered necessary to present fairly the financial position as of
September 30, 1999, and the results of operations for the nine months ended
September 30, 1999 and 1998. These results have been determined on the basis of
generally accepted accounting principles and practices and applied consistently
with those used in the preparation of the Company's audited consolidated
financial statements and notes for the year ended December 31, 1998.
Certain information and footnote disclosures normally included in the financial
statements presented in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that the accompanying unaudited
interim consolidated financial statements be read in conjunction with the
financial statements and notes thereto incorporated by reference in the
Company's 1998 audited consolidated financial statements.
Item 2 Management's Discussion and Analysis of Financial Condition and Results
of Operations
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When used in this discussion, the words "believes", "anticipates",
"expects" and similar expressions are intended to identify forward-looking
statements. Such statements are subject to certain risks and uncertainties,
which could cause actual results to differ materially from those projected.
Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. The Company undertakes no
obligation to republish revised forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. Readers are also urged to carefully review and consider
the various disclosures made by the Company which attempt to advise interested
parties of the factors which affect the Company's business, in this report, as
well as other reports filed with the Securities and Exchange Commission.
Overview
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On June 7, 1999, the Company launched www.equityalert.com, which provides
pro-active online investors a broad range of financial information. The Company
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is a development stage company, as defined in Financial Accounting Standards
Board No. 7. The Company is devoting substantially all of its present efforts in
securing and establishing its business, and although its planned operations have
commenced there have been no revenues derived from operations.
The Company's website offers stock market and trading information, including,
IPO information, stock quotes, public company news and news alerts, earnings
surprises and announcements, stock buy backs, stock splits, SEC filings, news
headlines, analyst coverage, upgrades and downgrades, interactive charting
system, and comprehensive trading screens involving up to 26 different data
fields, such as earnings growth, weekly price changes, short interest, insider
and institutional ownership, market cap, and others. Additionally
EquityAlert.com provides commentary on the biggest movers of the day and
displays a compilation of investor sentiment or expectations of on various
public companies.
As of September 30, 1999, the Company has not generated any revenues from
EquityAlert.com due to the early stage nature of the Company's business, and has
incurred ongoing operating losses due to costs related to research, business
development, website development, management and staff recruitment, and other
costs associated with establishing corporate infrastructure necessary for
developing an online asset such as EquityAlert.com.
Results of Operations
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Revenues. Due to the early stage of the Company's business, the Company has
not generated any revenues for the nine month period ending September 30, 1999,
nor for the nine month period ending September 30 1998. To date, the Company has
not relied on revenues for funding.
General and Administrative Expenses. During the three months ended September 30,
1999, the Company incurred $137,808 in general and administrative expenses, an
increase of 16,305% from third quarter 1998 expense of $840. This increase is
due primarily to costs related to additional staffing needs and expenses related
to website development. General and administrative expenses for the nine month
period ended September 30, 1999 increased 165% to $179,383, as compared to
$67,778 for the same nine period in 1998. The increase in the third quarter is
primarily attributable to additional salary and operating expenses related to
the development of the Company's business.
Interest Income. Interest income was $10,752 and $0 for the quarters ended
September 30, 1999 and 1998, respectively. Interest income for the nine month
period ended September 30, 1999 increased from $1 to $24,596. The increase is
primarily attributable to higher amounts of cash invested in interest bearing
accounts during 1999. Interest earned in the future will be dependent on Company
funding cycles and prevailing interest rates.
Provision for Income Taxes. As of September 30, 1999, the Company's accumulated
deficit was $794,642. Accordingly, the Company has recorded a full valuation
allowance against any income tax benefit to date.
Liquidity and Capital Resources
- -------------------------------
As of September 30, 1999, the Company's cash balance was $755,586, compared
to $3,551 as at December 31, 1998. The Company has financed its operations
primarily through private placement of Common Shares and the exercise of Stock
Options.
The Company's future funding requirements will depend on numerous factors.
Among these factors include the Company's ability to establish and profitably
operate the Company's current business, to recruit and train qualified
management and technical personnel, compete against any potential technological
advances in the field of online financial services and the Company's ability to
compete against other better capitalized corporations who offer similar
services.
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The Company expects to incur losses as it expands its business. The Company
may raise additional funds through private or public equity investment in order
to expand the range and scope of its business operations.
Year 2000
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The Year 2000 issue arose because many existing computer programs use only the
last two digits to refer to a year. Therefore, these computer programs do not
properly recognize a year that begins with 20 instead of 19. If not corrected,
many computer applications could fail or create erroneous results.
Management has initiated a comprehensive program to prepare the company's
systems for the year 2000. The company is actively engaged in testing and fixing
applications to ensure they are Year 2000 ready. The company does not separately
track the internal costs incurred for the Year 2000 project but such costs are
principally the related payroll costs for certain corporate staff. The company
currently does not expect remediation costs to be material nor does it expect
any significant interruption to its operations because of Year 2000 problems.
PART II -- OTHER INFORMATION
Item 1 Legal Proceedings
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None
Item 2 Changes in Securities
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None
Item 3 Defaults Upon Senior Securities
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None
Item 4 Submission of Matters to a Vote of Security Holders
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None
Item 5 Other Information
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None
Item 6 Exhibits and Reports on Form 8-K
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None
Signature Page
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Pursuant to the requirements of section 13 or 15(d) 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.
EQUITYALERT.COM, INC.
/s/ Harmel S. Rayat
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Harmel S. Rayat
Director
Dated: November 9, 1999
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