UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 2000
COMMISSION FILE NUMBER: 0-27735
ASIA4SALE.COM INCORPORATED
(Exact name of registrant as specified in its charter)
STATE OF INCORPORATION OR ORGANIZATION:
NEVADA
I.R.S. EMPLOYER IDENTIFICATION NO: 77-0438927
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES:
2465 West 12th Street, Suite 2
Tempe AZ 85281-6935
REGISTRANT'S TELEPHONE NUMBER:
(480) 505-0070
FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED SINCE LAST
REPORT:
INDICATE BY CHECK MARK WHETHER THE REGISTRANT HAS FILED ALL REPORTS TO BE FILED
BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE
PROCEEDING 12 MONTHS:
Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LAST PRACTICABLE DATE:
10,800,000 shares of common stock, par value of $.001 per share, were
outstanding as of September 30, 2000.
<PAGE>
ASIA4SALE.COM INC.
FORM 10Q
INDEX
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PART 1. FINANCIAL STATEMENTS
-------------------------------
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Consolidated balance sheets for December 31, 1999 and September 30, 2000
(attached).
Consolidated statements of income for nine months ended September 30, 2000
(attached).
Consolidated statements of cash flow for nine months ended September 30, 2000
(attached).
Notes to Consolidated Financial Statements
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION
PART II. OTHER INFORMATION
-----------------------------
ITEM 1. LEGAL PROCEEDINGS
ITEM 2. CHANGES IN SECURITIES
ITEM 3. DEFAULTS IN SECURITIES
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
ITEM 5. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 27 Table
SIGNATURES
<PAGE>
<TABLE>
<CAPTION>
ASIA4SALE.COM INC.
Consolidated Balance Sheet
As of September 30, 2000
ASSETS
CURRENT ASSETS SEP 30, 2000 DEC 31, 1999
-------------- -------------
<S> <C> <C>
Cash or Cash Equivalents $ 718,612 16,805
Accounts Receivable 86,804 69,578
Inventory 23,500 0
-------------- -------------
Total Current Assets 828,916 86,383
FIXED ASSETS
Computer Equipment 58,507 5,486
Furniture & Fixtures 73,184 0
Accumulated Depreciation -4,376 (115)
-------------- -------------
Total Fixed (Net) Assets 127,315 5,371
OTHER ASSETS
Investments 27,500 100,000
Notes Receivable 214,919 0
Refundable Deposits 16,371 0
Prepaid Rent 118,334 0
Prepaid Insurance 436 0
Cash Advances 5,500 0
Goodwill (see NOTE 2.) 220,040 5,000,000
Accum. Amortization 0 (5,000,000)
-------------- -------------
Total Other Assets 603,101 100,000
TOTAL ASSETS $ 1,559,332 191,754
============== =============
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts Payable $ 14,750 11,701
Accrued Expenses 66,236 0
Commissions Payable 27,188 40,752
Notes Payable 75,000 150,000
-------------- -------------
Total Current Liabilities 183,174 202,453
Minority Interest (see NOTE 3.) 200,000 0
STOCKHOLDER'S EQUITY
Common Stock: 100,000,000 shares authorized at par value of $.001
per share, 10,800,000 shares issued and outstanding. 10,800 10,000
Paid-In Capital in Excess of Par Value - Common 7,054,200 5,055,000
Retained Earnings (5,075,842) (5,075,842)
Net Income (813,000) 0
-------------- -------------
Total Stockholder's Equity 1,176,158 (10,699)
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 1,559,332 191,754
============== =============
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
ASIA4SALE.COM INC.
Consolidated Statements of Income
THREE MONTHS ENDING NINE MONTHS ENDING
SEP 30 SEP 30
2000 1999 2000 1999
------------ ---------- ----------- ----------
<S> <C> <C> <C> <C>
REVENUES $ 200,664 0 278,511 0
Less Cost of Sales 182,799 0 189,469 0
------------ ---------- ----------- ----------
Gross Profit 17,865 0 89,042 0
OPERATING EXPENSES
Depreciation and Amortization 2,245 0 4,262 0
General & Administrative Expense 548,779 19,353 920,547 19,353
------------ ---------- ----------- ----------
Total Operating Expenses 551,024 19,353 924,808 19,353
INCOME <LOSS> FROM OPERATIONS (533,159) (19,353) (835,767) (19,353)
------------ ---------- ----------- ----------
OTHER INCOME
Interest Income 2,975 336 22,766 336
------------ ---------- ----------- ----------
Total Other Income 2,975 336 22,766 336
NET INCOME $ (530,184) (19,017) (813,000) (19,017)
------------ ---------- ----------- ----------
NET INCOME (LOSS) PER SHARE $ (0.049) (0.019) (0.075) (0.019)
------------ ---------- ----------- ----------
WEIGHTED AVERAGE SHARES OUTSTANDING 10,800,000 1,000,000 10,800,000 1,000,000
============ ========== =========== ==========
</TABLE>
See Notes to Consolidated Financial Statements.
<TABLE>
<CAPTION>
ASIA4SALE.COM INC.
Consolidated Statements of Cash Flow
SIX MONTHS ENDING
SEP 2000 SEP 1999
----------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ (813,000) (19,017)
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Depreciation & Amortization Expense 4,262 0
Accounts Receivable (86,804) (69,578)
Inventory (23,500) 0
Refundable Deposits (16,371) 0
Prepaid Rent (118,334) 0
Prepaid Insurance (436) 0
Cash Advances (5,500) 0
Goodwill (220,040)
Accounts Payable 14,750 11,701
Accrued Expenses 66,236 0
Commission Payable 27,188 40,752
Notes Payable 75,000 150,000
----------- ---------
Net Cash Flow Used by Operations (358,550) (17,125)
----------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Computer Equipment (58,507) (5,486)
Office Furniture (73,184) 0
Note Receivable (214,919) 0
----------- ---------
Net Cash Used In Investing (346,610) (5,486)
=========== =========
CASH FLOWS FROM FINANCING ACTIVITIES
Common Stock Issued For Cash $2,000,000 0
----------- ---------
Net Cash Used In Financing 2,000,000 0
----------- ---------
NET INCREASE <DECREASE> IN CASH 1,294,840 (22,611)
=========== =========
Cash at Beginning of Period 16,805 0
----------- ---------
Cash at End of Period 718,612 16,805
----------- ---------
SUPPLEMENTAL CASH FLOW INFORMATION
Cash Paid For:
Interest 0 0
----------- ---------
Income Taxes 0 0
----------- ---------
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. Basis of Presentation
The consolidated balance sheet as of September 30, 2000, the consolidated
statements of income for the period ended September 30, 2000, and the
consolidated statements of cash flows for the period ended September 30, 2000
have been prepared by the Company without audit. The consolidated balance sheet
as of December 31, 1999 was derived from audited consolidated financial
statements. In the opinion of management, all adjustments (which include only
normally recurring adjustments) necessary to present fairly the financial
position, changes in income, results of operations and cash flows at September
30, 2000 (and for all periods presented) have been made.
Certain information and footnote disclosures, normally included in financial
statements prepared in accordance with generally accepted accounting principles,
have been condensed or omitted. It is suggested that these consolidated
financial statements be read in conjunction with the financial statements and
notes thereto included in the fiscal 1999 Annual Report on Form 10-K. The
results of operations for the periods ended September 30, 2000 and September 30,
1999 (see NOTE 2.) are not necessarily indicative of the operating results for
the respective full years.
It should be noted that the financial statements detailed in PART 1. ITEM 1.
FINANCIAL STATEMENTS were prepared without the benefit of a full review and may
require amendment once the review has been completed.
NOTE 2. Principles of consolidation
The condensed consolidated financial statements include the accounts of
Asia4Sale.Com Inc., Asia4Sale.Com Ltd. and WWA Worldwide Auctioneers (USA) Inc.
and its wholly- owned subsidiaries doing business as WWA Auctioneers in Europe
and Asia.
NOTE 3. Acquisitions
On September 21, 2000 Asia4sale.com, Inc. concluded the formation of WWA World
Wide Auctioneers, Inc., a Nevada registered company, doing business as World
Wide Auctioneers in Europe, the Middle-East and Asia. Currently, Asia4sale.com,
Inc. owns 80% of the newly formed company and plans to sell approximately 28% of
its holdings to private investors. The remaining 20% is owned by Steverit
Administration Services Ltd, St Clement, Jersey, Channel Islands. Accordingly,
all financial information included herein has been restated to reflect the
combined operations of Asia4Sale.com, Inc., Asia4Sale.com Ltd. (Hong Kong) and
WWA World Wide Auctioneers, Inc. and its subsidiary companies in Europe, the
Middle-East and Asia. The US $200,000 subscription from Steverit Administration
Services Ltd. has been recorded in the Consolidated Statement of Financial
Position as a minority interest.
The newly formed WWA Worldwide Auctioneers, Inc. is comprised of six
wholly-owned subsidiary companies:
<PAGE>
WWA HOLDINGS AG (GERMANY)
On July 4, 2000 Asia4Sale.com, Inc. completed the acquision of WWA Worldwide
Auctioneers AG, 82205 Gilching, District of Starnberg, Germany, pursuant to an
acquisition agreement dated June 19, 2000, between Asia4Sale.com, Inc. (the
"Purchaser") and Cassima Immobilien Management AG, 66740 Saarlouis, District of
Saarland, Germany (the "Seller"). WWA World Wide Auctioneers AG (formerly known
as Ventus Immobilien Management AG) is a 'pre-incorporated' company with no
prior trading history. Subsequent to the agreement, and pursuant to a special
Shareholder's Meeting on June 19, 2000, the name of the acquired company was
formerly changed to WWA Worldwide Auctioneers AG and its registered business
premises relocated to Talhofstrasse 32a, D 82205 Gilching, District of
Starnberg, Germany. In consideration of the sale of all the issued and
outstanding capital stock of WWA Worldwide Auctioneers AG, consisting of 50,000
bearer shares without par value, the Company paid the Seller the sum of 50,000
Euros (approx. US $50,000). Subsequent to the acquisition, on July 11, 2000, the
capital stock of the company was increased to 1,000,000 Euros (approx. US
$1,000,000), 20% of which was subscribed by Steverit Administration Services, St
Clement, Jersey, Channel Islands. The capital stock was further increased to 1.2
million Euros on July 20, 2000. On September 13, 2000, with the consent of the
board of directors, the name of the company was formerly changed to WWA Holdings
AG. The company's business address remains the same.
On September 30, 2000, pursuant to an agreement between both parties,
Asia4Sale.com, Inc.and Steverit Administration Services, St. Clement, Jersey,
Channel Islands, agreed to swap there respective holdings in WWA Holdings AG
(see details below) for a propotionate share of the US parent company, WWA World
Wide Auctioneers (USA) Inc. Thus each company will hold 12 million and 3 million
shares, respectively. As noted earlier, Asia4Sale.com, Inc. plans to sell
approximately 28% of its holdings in WWA World Wide Auctioneers (USA) Inc. to
private investors.
WWA WORLD WIDE AUCTIONEERS (MUNICH) AG
On September 13, 2000 WWA Holdings AG completed the acquisition of WWA Worldwide
Auctioneers (Munich) AG, 82205 Gilching, District of Starnberg, Germany,
pursuant to an acquisition agreement dated September 13, 2000, between WWA
Holdings AG (the "Purchaser") and Cassima Immobilien Management AG, 66740
Saarlouis, District of Saarland, Germany (the "Seller"). WWA World Wide
Auctioneers (Munich) AG (formerly known as Tamera Immobilien Management AG) is a
'pre-incorporated' company with no prior trading history. Subsequent to the
agreement, and pursuant to a special Shareholder's Meeting on September 13,
2000, the name of the acquired company was formerly changed to WWA Worldwide
Auctioneers (Munich) AG and its registered business premises relocated to
Talhofstrasse 32a, D 82205 Gilching, District of Starnberg, Germany. In
consideration of the sale of all the issued and outstanding capital stock of WWA
Worldwide Auctioneers (Munich) AG, consisting of 50,000 bearer shares without
par value, the Company paid the Seller the sum of 50,000 Euros (approx. US
<PAGE>
$50,000). At the time of the acquisition, the newly appointed board of directors
adopted a resolution to increase the capital stock of the company by 400,000
Euros. The subscription was to become non-committal if the increase in capital
stock is not registered by the end of 31/10/2000.
WORLD WIDE AUCTIONEERS (BVI) LTD.
On July 13, 2000 WWA Worldwide Holdings AG acquired Worldwide Auctioneers Ltd, a
BVI-registered company with operations in the Jebel Ali Free Zone, Dubai, United
Arab Emirates. Worldwide Auctioneers Ltd was incorporated on March 20, 2000
under the laws of the British Virgin Islands, with authorized capital of 50,000
shares with a par value of one US dollar per share, of which 50,000 shares,
equivalent to US $50,000, were subscribed and paid up. In consideration of the
sale of all the issued and outstanding capital stock of the company, WWA Holding
AG agreed to pay the seller the sum of US $300,000. In addition to this sum, WWA
Holdings AG also provided the newly acquired company with US $400,000, with the
express proviso that these funds be used as working capital. That part of the US
$300,000 acquisition price (US $220,040) deemed to have been paid in excess of
book value (US $79,960) has been recorded for accounting purposes as 'goodwill'.
At the time of writing operational control of the Dubai subsidiary is in the
process of being transferred from the holding company to WWA World Wide
Auctioneers (Munich) AG.
WORLDWIDE AUCTIONEERS B.V.
Worldwide Auctioneers B.V. is a Dutch-registered and wholly-owned subsidiary of
WWA World Wide Auctioneers AG, with operations in Vlissingen, Netherlands. Share
capital is set at 50,000 Dutch guilders or the equivalent of approx. US $25,000.
Full operations are expected to commence once the registration of the company
has been completed.
WWA WORLD WIDE AUCTIONEERS (S) PTE LTD.
At the time of writing the formation and registration of WWA Worldwide
Auctioneers (S) PTE is pending. Full operations are expected to commence in
early 2001. The Singapore company is a wholly-owned subsidiary of WWA World Wide
Auctioneers (Munich) AG.
ASIA SALES PHILS. INC.
In September, 2000, Asia Sales Phils. Inc. the wholly-owned Subic Bay,
Philippines subsidiary of Asia4Sale.com Ltd., was formally acquired, pursuant to
an acquisition agreement dated September 25, 2000, by WWA World Wide
Auctioneers (Munich) AG. Asia Sales Phils. Inc. was incorporated on December
23, 1999 under the laws of the Republic of the Philippines with an authorized
capital of forty thousand pesos divided into 40,000 shares each with a par value
of One Peso per Share and paid-in capital of US $270,000. In consideration of
the sale of all the issued and outstanding capital stock of the company, WWA
<PAGE>
World Wide Auctioneers AG agreed to pay the seller the sum of US $300,000, on or
before December 31, 2000. This represents the sum total of expenses incurred by
Asia4Sale.com, Ltd. to establish Asia Sales Phils. Inc. and provide working
capital for the purchase of capital assets.
NOTE 4. Current Assets
As of September 30, 2000, current assets consist of $718,612 in cash, $86,804 in
receivables and $23,500 in inventory. Inventory is stated at cost and is
comprised of 1) items acquired for resale by auction and valued at $13,600 and
2) undistributed promotional items valued at $9,900.
NOTE 5. Property, Plant and Equipment
Property, plant and equipment is valued at $131,691 and carried at historical
cost. Accumulated depreciation is calculated by the straight-line method.
NOTE 6. Other Assets
As of September 30, 2000 Other Assets consist of (1) a short-term investment of
$27,500, (2) a promissory note totaling $214,919, due and payable within 12
months, (3) refundable deposits, prepaid rent and insurance payments and travel
advances totaling $140,642.
NOTE 7. Current Liabilities
As of September 30, 2000, current liabilities consist of $14,750 in trade
payables, $66,236 in accrued operating expenses, $27,188 in commissions and
$75,000 in short-term debt, due and payable within 12 months.
NOTE 8. Long-Term Debt
As of September 30, 2000 the Company has no long-term debt.
NOTE 9. Shareholder's Equity
Between February 7 and March 31, 2000 the Company issued 800,000 new restricted
shares of its Common Stock at an offering price of $2.50 per share. The proceeds
of this offering are to be used to fund capital and operating expenditures,
future expansion and other financial contingencies.
NOTE 10. Revenue recognition
Revenues for the period were primarily derived from two sources: Asia4Sale.Com
Ltd. and WWA Worldwide Auctioneers Inc. and it's Dubai subsidiary.
Asia4Sale.Com Ltd operates a network of approximately 1,800 Internet-based
storefronts, each of which functions as an Asia4Sale sales agency. Asia4Sale's
share of revenues from these stores consists entirely of manufacturer's
commissions on goods sold. All product procurement costs, shipping costs, and
sales commissions are deducted from total revenues for the purposes of
calculating Gross Profit.
<PAGE>
WWA Worldwide Auctioneers Inc. is a wholly-owned subsidiary of Asia4Sale.com
Inc. and was incorporated in the state of Nevada on September 21, 2000. Its core
business consists of acquiring heavy industrial and construction equipment, by
purchase or consignment, for re-sale by auction. The company currently has
operations in Germany, The Netherlands, Dubai, Singapore and Subic Bay,
Philippines.
NOTE 11. Basic (Loss) Per Share
Basic (Loss) per Common Share is based on the weighted average number of shares
of Common Stock outstanding as of the respective dates: 10,800,000 as of
September 30, 2000 and 1,000,000 as of September 30, 1999.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
------------------------------------------------------------------------
RESULTSOF OPERATION
--------------------
THE COMPANY
------------
Asia4Sale.Com Inc. is the US-registered parent of Asia4Sale.com Ltd, a Hong Kong
registered company acquired in February, 2000. Asia4Sale.com Ltd. was founded as
a joint marketing venture between ZiaSun Technologies Inc., a publicly held U.S.
Internet holding company and Cable & Wireless HKT, Hong Kong's primary
full-service communications provider and owner/operator of Asia's largest
commercial teleport.
Asia4Sale is the first major e-commerce venture to specialize in linking Asia's
producers of high quality, high value goods and services with buyers and markets
around the world. With e-commerce offerings to date dominated by U.S.
companies, the Asian emphasis allows Asia4Sale to offer highly competitive
prices for Asian products with strong brand recognition. Asia4Sale's three-part
structure allows the company to exploit both the business-to-consumer and
business-to-business markets. Asia4Sale derives its revenues from three
principal sources:
ShoppingAsia (www.asia4sale.com) is an e-commerce home shopping portal offering
-----------------
a variety of affiliate marketing services. ShoppingAsia makes Asian products
directly available to consumers worldwide. Any web user can open a store,
stocked with products sourced by Asia4Sale, at no cost to the store operator.
Asia4Sale's revenues from these stores consist entirely of commissions on goods
sold. ShoppingAsia is currently in the process of introducing two new fee-based
premium versions of this service which are expected to generate substantial
additional revenues. The first of these 'premium' services will be introduced in
August, 2000.
AuctionAsia (www.auctionasia.net) provides Internet-based auction services to
-------------------
businesses and consumers in the Asia region. Asia4Sale has also invested in
physical auction companies and sites around Asia, combining this profitable
business with its Internet auction business. Having established a base in the
Asian industrial auction market, AuctionAsia is expanding to exploit the huge
<PAGE>
potential market offered by the sale of industrial-sized lots of Asian-made
components and products. AuctionAsia feels that this is a niche with enormous
growth potential: U.S. businesses, who are among the largest consumers of
Asian-made components and raw materials, are familiar with the web auction
process and will be natural customers for Asian businesses that wish to sell in
this efficient and practical way. AuctionAsia will also continue its current
strategy of investing in and providing Internet support for physical auctions of
industrial equipment. In this connection, Asia4Sale.com, Inc. has recently
acquired and capitalized World Wide Auctioneers Inc. (WWA), a Nevada registered
company doing business as World Wide Auctioneers in Dubai (UAE), Germany, The
Netherlands, Singapore and the Philippines. (See NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS, NOTE 3. Acquisitions). The acquisition is wholly consistent with
Asia4Sale's policy of investing in companies that complement its core Internet
businesses.
Asia4Sale gains both strategic and financial benefits by acquiring WWA. The
acquisition is expected to yield substantial new revenues and earnings for
Asia4Sale while allowing the company to more fully exploit its policy of
integrating its Internet-based auction and barter services with the conventional
and very profitable auction markets for industrial and construction equipment.
In November, 2000, WWA plans to file its prospectus with the German authorities
in order to raise equity capital for its worldwide operations. Once the Central
Bank in Germany approves the prospectus, WWA will be able to offer its shares to
investors living within the European Union. WWA's German registered subsidiary
will also offer its shares in the EU in preparation for public listing in
Frankfurt by year-end 2001. Among other projects, Asia4Sale and WWA are
currently developing an Internet portal for the purchase, sale, auction and
barter of industrial, construction, transportation and marine equipment. This
one-stop record center, containing data from sales by hundreds of auctioneers,
brokers, and dealers worldwide, will allow equipment owners to quickly and
accurately estimate resale values on individual pieces of equipment and will
allow buyers to develop accurate and timely cost estimates.
Asia4Sale will continue to augment and strengthen its solid, well-diversified
foundation by investing in businesses and companies that help increase
shareholder value.
BarterAsia (www.barterasia.net) was organized to develop and exploit the barter
------------------
potential of Asian economies. It functions as a third party record keeper for a
group of businesses that trade goods and services instead of paying cash.
Barter allows them to buy what they need and pay for it with otherwise unsold
products and services, reducing cash outflow and converting unused assets to
productive use. BarterAsia maintains an intricate barter system, achieving the
same flexibility in barter trades that is offered through traditional cash
transactions. Barterasia has recently concluded an agreement with the World
Chinese Merchant Mutual Aid Union Association, a 200,000 member, Taiwan-based
business association with a large and growing membership in the People's
<PAGE>
Republic of China. The association has pledged to work closely with BarterAsia
and actively promote its barter exchange services. A formal joint-venture with
the association is expected to be announced in the fourth quarter. To facilitate
this arrangement, BarterAsia has undertaken to augment and expand its core
barter business by adding new and functionally improved web-based barter
services, to be launched in mid-November. The new site will be available in both
English and Chinese and will be co-hosted in both the PRC and the United States.
Consistent with this policy of strategic expansion, Barter Asia has also signed
a Memorandum of Understanding with Itex Corporation, a Sacramento-based barter
services company currently spearheading the development of a global barter
exchange consortium. Itex has signed similar M.O.A's with barter exchange
companies in Asia, South America, Western Europe, the Middle-East and elsewhere.
Barter Asia regards this as an exciting and potentially profitable initiative.
RESULTS OF OPERATIONS
-----------------------
Gross revenues for the nine months ended September 30, 2000 were $278,511. No
comparison with the corresponding period in 1999 is possible since there are no
revenues reported for this period. The revenues, were derived in large part from
the acquisition and re-sale of heavy equipment and the disposal of auction
inventory. Revenues were very substantially higher in the current three-month
period than were reported in the preceding fiscal period. This improvement is
largely due to the recent acquisition of WWA World Wide Auctioneers Inc. and the
commencement of business operations in Dubai, UAE.
Gross profit for the nine months ended September 30, 2000 was $89,042 or
approximately 47% of gross revenues. No comparison with the corresponding period
in 1999 is possible since there are no revenues reported for this period. The
high gross margins reported reflect the relatively large number of purchase and
auction re-sales recorded in the preceding fiscal period. This trend is expected
to change as a relatively greater amount of equipment is taken on consignment
rather than acquired through outright purchase . ShoppingAsia is also expected
to contribute a larger portion of overall revenues and this trend can also be
expected to bring gross margins within industry norms.
Total Operating Expenses for the nine months ended September 30, 2000 were
$924,808. No meaningful comparison with the corresponding period in 1999 is
possible as there were no significant operating expenses reported for this
corresponding period. Total Operating expenses were approximately $299,000
higher in the current three-month period than were reported in the preceding
fiscal period. This increase can be attributed, in very large part, to the
formation of WWA World Wide Auctioneers Inc. and the increased costs associated
with acquiring and setting up its operating subsidiaries in western Europe, the
Middle East and Asia.
The operating loss for the nine months ended September 30, 2000 was $806,550. No
meaningful comparison with the corresponding period in 1999 is possible as there
were no significant operating activities reported for this corresponding period.
The operating loss was approximately $329,000 higher in the current three-month
period than was reported in the preceding fiscal period.
<PAGE>
The net loss for the nine months ended September 30, 2000 was $813,000 or $.075
per common share outstanding. In addition to the reasons cited above, the net
loss can be partly attributed to a decline in interest income for the current
three month period.
FINANCIAL CONDITION, CAPITAL RESOURCES AND LIQUIDITY
---------------------------------------------------------
As of September 30, 2000 the Company and its subsidiaries had working capital of
approximately $1.2 million. This compares with working capital of approximately
$1.7 million at the end of the preceding fiscal period. Liquidity in future
periods will be contingent upon internally generated cash flows, the ability to
obtain adequate financing for capital expenditures and financing when needed,
and the amount of increased working capital necessary to support expected
growth. Based on current operating requirements and given the prospect for
significantly improved revenues and earnings, management is confident that
future cash flows from operations as well as the availability of alternative
sources of external financing will be sufficient to meet all anticipated
requirements for all planned operating and capital expenditures and should
provide adequate liquidity for the foreseeable future.
FORWARD LOOKING STATEMENTS
----------------------------
This Form 10-Q contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the "Securities Act"),
and Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), which are intended to be covered by the safe harbors created
thereby. Investors are cautioned that all forward-looking statements involve
risks and uncertainty, including without limitation, the ability of the Company
to develop its products, as well as general market conditions, competition and
pricing. Although the Company believes that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of the
assumptions could be inaccurate, and therefore, there can be no assurance that
the forward-looking statements included in this Form 10-Q 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 other person
that the objectives and plans of the Company will be achieved.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not party to any legal proceedings.
ITEM 2. CHANGES IN SECURITIES
<PAGE>
Not applicable.
ITEM 3. DEFAULTS IN SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A) EXHIBITS:
Exhibit 27, Financial Data Schedule.
B) REPORTS ON FORM 8-K
NO REPORTS ON FORM 8-K WERE FILED DURING THE QUARTER ENDED JUNE 30, 2000.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
For: ASIA4SALE.COM INC.
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(Registrant)
DATE: November 14, 2000 /S/ James Emberton
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James Emberton
Chief Financial Officer
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