SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
-------------------
FORM 10-QSB
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
or
[ ] 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
-----
RBID.COM INC.
-----------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Florida 33-0857311
- ------------------------------ -----------------------------------
State of Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
24461 Ridge Route Dr., Laguna Hills, CA 92663
- --------------------------------------- ----------
Address of Principal Executive Offices) (Zip Code)
(949) 470-4550
----------------------------------------------
(Issuer's Telephone Number, Including Area Code)
NONE
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities and 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 November 10, 1999 there were 8,378,500 shares of common stock outstanding.
<PAGE>
<TABLE>
RBID.COM INC.
(A DEVELOPMENT STAGE COMPANY)
(UNAUDITED)
TABLE OF CONTENTS
<CAPTION>
Part I. Financial Information Page Numbers
------------
Item 1. Financial Statements
<S> <C>
Balance Sheets at September 30, 1999 and December 31, 1998 (Unaudited) 1
Statements of Operations for the nine months ended September 30, 1999 2
and 1998 and October 4, 1998 (Inception) to September 30, 1999 (Unaudited)
Statement of Operations for the three months ended September 30, 1999 3
and 1998 and October 4, 1998 (Inception) to September 30, 1999 (Unaudited)
Statements of Cash Flows for the nine months ended September 30, 1999 4
and 1998 and October 4, 1998 (Inception) to September 30, 1999 (Unaudited)
Notes to Financial Statements (unaudited) 5 - 10
Item 2. Management's Discussion and Analysis of Financial Condition And Results 14
of Operations Part II. Other Information
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults Upon Senior 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 16
Signature Page 17
</TABLE>
<PAGE>
<TABLE>
RBID.COM, INC.
(A Development Stage Company)
BALANCE SHEET
(Unaudited)
<CAPTION>
September 30, December 31,
1999 1998
----------- -----------
ASSETS
------
Current Assets
<S> <C> <C>
Cash $ 6,955 $ --
Deposits 2,608 --
----------- -----------
Total Current Assets 9,563 --
----------- -----------
Property and equipment, net of accumulated
depreciation 33,042 15,660
Total Assets $ 42,605 $ 15,660
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
Accounts payable $ 76,584 $ 1,772
Payroll taxes payable 11,856 --
Loan payable, stockholder 131,055 --
----------- -----------
Total Current Liabilities 219,495 1,772
----------- -----------
Stockholders' Equity
Common stock, $0.001 par value, 50,000 shares authorized;
8,378,500 shares issued and outstanding 8,378 6,928
Additional paid in capital 1,341,590 11,779
Deficit accumulated during the development stage (1,526,858) (4,819)
----------- -----------
Total Stockholders' Equity (176,890) 13,888
----------- -----------
Total Liabilities and Stockholders' Equity $ 42,605 $ 15,660
=========== ===========
</TABLE>
See accompanying notes to financial statements.
1
<PAGE>
<TABLE>
RBID.COM, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
(Unaudited)
<CAPTION>
Period
Three months Three months October 4, 1988
ended ended (Inception) to
September 30, September 30, September 30,
1999 1998 1999
----------- ----------- -----------
<S> <C> <C> <C>
Revenue $ -- $ -- $ --
----------- ----------- -----------
Expenses:
Selling, general and administrative 234,366 3,662 1,525,638
Depreciation 1,220 -- 1,220
----------- ----------- -----------
Total Operating Expenses 235,586 3,662 1,526,858
----------- ----------- -----------
Operating Loss (235,586) (3,662) (1,526,858)
----------- ----------- -----------
Net Loss ($ 235,586) ($ 3,662) ($1,526,858)
=========== =========== ===========
Per Share Information:
Weighted Average Shares Outstanding -
Basic and Diluted 8,378,500 4,433,333 1,670,411
=========== =========== ===========
Net Loss Per Common Share - Basic and Diluted ($ 0.03) -- ($ 0.91)
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
<TABLE>
RBID.COM, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
(Unaudited)
<CAPTION>
Period
Nine months Nine months October 4, 1988
ended ended (Inception) to
September 30, September 30, September 30,
1999 1998 1999
----------- ----------- -----------
<S> <C> <C> <C>
Revenue $ -- $ -- $ --
----------- ----------- -----------
Expenses:
Selling, general and administrative 1,520,819 3,662 1,525,638
Depreciation 1,220 -- 1,220
----------- ----------- -----------
Total Operating Expenses 1,522,039 3,662 1,526,858
----------- ----------- -----------
Operating Loss (1,522,039) (3,662) (1,526,858)
----------- ----------- -----------
Net Loss ($1,522,039) ($ 3,662) ($1,526,858)
=========== =========== ===========
Per Share Information:
Weighted Average Shares Outstanding -
Basic and Diluted 7,783,500 2,144,444 1,670,411
=========== =========== ===========
Net Loss Per Common Share - Basic and Diluted ($ 0.20) $ -- ($ 0.91)
=========== =========== ===========
</TABLE>
See accompanying accountant's notes to financial statement.
3
<PAGE>
<TABLE>
RBID.COM, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(Unaudited)
<CAPTION>
Period
Nine months Nine months October 4, 1988
ended ended (Inception) to
September 30, September 30, September 30,
1999 1998 1999
----------- ----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C> <C>
Net loss ($1,522,039) ($ 3,662) ($1,526,858)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Consulting services contributed 1,080,000 1,890 1,083,047
Depreciation 1,220 -- 1,220
Increase in operating assets:
Deposits (2,608) -- (2,608)
Accounts payable & taxes payable 86,668 1,772 88,440
----------- ----------- -----------
Net cash used in operating activities: (356,759) -- (356,759)
----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment (18,602) -- (18,602)
----------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance of common stock,
net of issuance costs 251,261 -- 251,261
Loan payable, stockholder 131,055 -- 131,055
----------- ----------- -----------
Net cash provided by financing activities 382,316 -- 382,316
----------- ----------- -----------
NET INCREASE IN CASH 6,955 -- 6,955
CASH, beginning of year -- -- --
----------- ----------- -----------
CASH, end of period $ 6,955 $ -- $ 6,955
=========== =========== ===========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
Interest $ --
Income taxes $ --
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
RBID.COM INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
Note 1. Summary of Significant Accounting Policies
Organization
- ------------
The Company was incorporated on October 4, 1988, in the State of Florida under
the name of Gulf Coast Securities Transfer, Inc. On May 19, 1998, the Company's
name was changed to GCST Corp. and Amended Articles of Incorporation. The name
was again changed to Rbid.com, Inc. on April 6, 1999, and a second set of
Amended Articles of Incorporation were filed with the State of Florida. The
Company is a development stage Company. The Company's primary concentrations are
in providing internet access services, e-commerce solutions, online shopping,
online auctions and classified advertising to consumers and small to medium
businesses.
Net Income (Loss) Per Share
- ---------------------------
The net income (loss) per share is computed by dividing the net income (loss)
for the period by the weighted average of common shares outstanding for the
period. For the nine months ended September 30, 1999 and 1998, and for the
period October 4, 1998 (Inception) to September 30, 1999, potential common
shares and the computation of diluted earnings per share are not considered as
their effect would be anti-dilutive.
Estimates
- ---------
The preparation of the Company's financial statements in conformity with
generally accepted accounting principles requires the Company's management to
make estimates and assumptions that affect the amounts reported in these
financial statements and accompanying notes. Actual results could differ
significantly from those estimates.
Property, Equipment and Software
- --------------------------------
Property and equipment are recorded at cost. Depreciation has been calculated on
the accelerated cost recovery method at rates based on five to seven years
estimated lives. Software is being depreciated using the accelerated cost
recovery method over a life of seven years. This depreciation method is designed
to expense the cost of the asset over its estimated useful life.
Impairment of Long-Lived Assets
- -------------------------------
The Company accounts for the carrying value of long-lived assets in accordance
with the requirements of FAS 121 "Accounting for the Impairment of Long-Lived
Assets". As of September 30, 1998, no asset impairment needs to be recognized.
Comprehensive Income
- --------------------
Effective January 1, 1999, the Company adopted Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" (Statement 130). This
statement is effective for financial statements issued for periods beginning
after December.
5
<PAGE>
Note 1. Summary of Significant Accounting Policies (Continued)
Comprehensive Income (Continued)
- --------------------------------
15, 1997. Statement 130 established standards for reporting and display of
comprehensive income and its components in a full set of general purpose
financial statements. Statement 130 requires that all items recognized under
accounting standards as components of comprehensive income be reported in a
financial statement with equal prominence as other statements. There were no
items of other comprehensive income in the nine months ended September 30, 1999
and 1998, and the period October 4, 1988 (Inception) to September 30, 1999;
thus, net income is equal to comprehensive income for the period.
In 1999, the Company adopted Statement of Financial Accounting Standards (SFAS)
No. 131, "Disclosures about Segments of an Enterprise and Related Information."
SFAS No. 131 defines how operating segments are determined and requires
disclosure of certain financial and descriptive information about the Company's
operating segments. Under current conditions, the Company has one reporting
segment.
Cash and Cash Equivalents
- -------------------------
The Company considers all short-term, highly liquid investments with an original
maturity date of three months or less at date of purchase to be cash
equivalents. Cash and cash equivalents are stated at cost, which approximates
fair value.
Revenue Recognition
- -------------------
Revenue is recognized by the Company upon the delivery of the product or
completion of services rendered.
Advertising Costs and Marketing Costs
- -------------------------------------
The Company expenses all advertising costs as incurred. Advertising expense for
the nine months ended September 30, 1999 amounted to $39,906. Marketing costs
totaled $79,639 for the nine months ended September 30,1999.
Research and Development
- ------------------------
Research and development costs are expensed as incurred. Research and
development costs for the nine months ended September 30, 1999, are estimated by
management to be approximately $700,000.
Concentration of Business and Credit Risk
- ------------------------------------------
The Company has exposure to credit risk to the extent that its cash and cash
equivalents exceed amounts covered by federal deposit insurance. The Company
believes that its credit risk is not significant.
6
<PAGE>
Note 1. Summary of Significant Accounting Policies (Continued)
Concentration of Business and Credit Risk (Continued)
- -----------------------------------------------------
The Company plans to do business in the international market. The Company's
ability to collect the amounts due from its customers is affected by economic
conditions in its industry and the geographical area in which it conducts
business.
Note 2. Property, Equipment and Software
Property and equipment consisted of the following at September 30, 1999:
Equipment $18,602
Less accumulated depreciation (1,220)
---------
17,382
Software 15,660
---------
$33,042
Note 3. Stockholders' Equity
In 1998, the State of Florida approved the Company's restated Articles of
Incorporation, which increased its capitalization from 1,000 common shares to
50,000,000 common shares. The par value was unchanged at $.001.
Also, in 1998, the Company forward split its common stock 1,000:1, thus
increasing the number of outstanding common stock shares from 1,000 to 1,000,000
shares.
In August, 1998 the Company issued 5,800,000 shares of common stock for software
valued at $15,660. The shares of the prior stockholders of Company's common
stock totaling 1,000,000 outstanding shares, were redeemed in 1998.
In addition, the Company for the three months ended September 30, 1998, issued
700,000 shares of common stock to consultants for services rendered valued at
$1,890. During the three months ended December 31, 1998, the Company issued
428,500 shares of common stock to consultants for services rendered valued at
$1,157.
In 1999, the Company received funds of approximately $252,000 from an exempt
securities offering pursuant to Regulation D, Rule 504. Common stock was issued
based on a subscription price of $1.00 per share for the 1,000,000 share
offering. The costs of the offering of approximately $118,000 were recorded as a
reduction to additional paid in capital. Consulting service shares issued
totaled 630,000. The Company also issued 450,000 restricted shares for services
in 1999 at $1.00 per share.
7
<PAGE>
Note 4. Income Taxes
The Company has a 1998 Federal net operating loss carryforward
of approximately $5,600, which will expire in the year 2018. The tax benefit of
this net operating loss of approximately has been offset by a full allowance for
realization.
Note 5. Year 2000
The Company has assessed its exposure to date sensitive computer software
programs that may not be operative subsequent to 1999 and has implemented a
requisite course of action to minimize Year 2000 risk and ensure that neither
significant costs nor disruption of normal business operations are encountered.
However, because there is no guarantee that all systems of outside vendors or
other entities on which the Company's operations rely will be Year 2000
compliant, the Company remains susceptible to consequences of the Year 2000
issue.
Note 6. Subsequent Events
On October 21, 1999, the major stockholder of the Company entered into a stock
purchase agreement with AHC, Ltd., (which the latter assigned to AHC - I, BT, a
Nevada Business Trust pursuant to which the stockholder agreed to sell and AHC,
Ltd., agreed to purchase 2,300,000 shares of common stock of the major
stockholder in the Registrant. AHC - I, BT is a Nevada Business Trust. The
Trustee of the Trust is Growth Capital Investments, Inc., a California
corporation. The trust is the assignee of the rights of AHC, Ltd. under the
stock purchase agreement dated October 21, 1999.
Under the terms of the Stock Purchase Agreement, AHC - I, BT is entitled to
acquire 2,300,000 shares of common stock of the Company from the stockholder for
a total consideration of $750,000. These funds would be distributed to the
stockholder upon the close of escrow. In addition, the Company, in order to
obtain an immediate infusion of cash for its operations, granted to AHC - I , BT
the right to acquire 3,800,000 shares of common stock at a price of
approximately $.20 share. All funds from the sale of these shares are to be
placed directly into the operating capital of the Company.
Under the agreement, an escrow was opened for the transaction. The escrow
instructions contain a number of conditions that are required to be met prior to
a close. Under the agreement, AHC - I, BT was required to make available to the
Company the sum of $250,000 for operations and a proportionate number of shares
of common stock would be distributed to AHC - I, BT in consideration for the
capital infusion. Pursuant to the agreement, AHC -I, BT provided the Company
with the required funds.
8
<PAGE>
Note 6. Subsequent Events (Continued)
The stock purchase transaction is still in escrow and a closing is expected
within the next sixty days. After the escrow closing, AHC - I, BT would control
50.1% of the total issued and outstanding stock of the Company and would be in
control of the Company. The unrelated company assumed control of the Company and
the directors and officers of the Company resigned and new directors and
officers were elected.
Note 7. Commitments and Contingencies
The Company entered into a marketing agreement dated April, 1999, with an
unrelated market entity to market websites. The Company advanced monies to the
marketing entity in the approximate amount of $145,600. In order to assist in
customer satisfaction, the Company did not process any customer credit cards
until the websites were operating in July, 1999. The Company because of
customers' requests', began refunding credit card receipts in August, 1999 and
advanced amounts for unpaid sub-distributor commissions to the marketing entity.
The Company in the test market of supersite orders from customers after receipt
of revenue decided to refund all cash and credit card receipts as a matter of
goodwill upon discovery of significant sales allowances and sale returns. The
net result was to record revenues at zero after returns and allowances and
expense any test market advances to the market entity. The net amount recorded
as test market expense totaled $79,639 for the nine months ended September 30,
1999 and $42,149 for the three months ended September 30, 1999.
The Company entered into an operating lease for office space in July 1999. The
lease has a six month term with monthly payments of $2,794
9
<PAGE>
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains certain "forward-looking statements" as defined under
Section 21E of the Securities Exchange Act of 1934. The Company desires to take
advantage of the "safe harbor" provisions of Section 21E and is including this
statement for the express purpose of availing itself of the protection of the
safe harbor with respect to all such forward-looking statements. These
forward-looking statements, which are included in Management's Discussion and
Analysis, describe future plans or strategies and may include the Company's
expectations of future financial results. The words "believe", "expect",
"anticipate", "estimate", "project", and similar expressions identify
forward-looking statements. The Company's ability to predict results or the
effect of future plans or strategies or qualitative or quantitative changes
based on market risk exposure is inherently uncertain. Factors which could
effect actual results include but are not limited to i) change in general
market, ii) general economic conditions, both in the United States generally and
in the Company's market area, iii) legislative/regulatory changes, iv) demand
for products, v) competition, and other internet commerce issues. These factors
should be considered in evaluating the forward-looking statements, and undue
reliance should not be placed on such statements.
10
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
PLAN OF OPERATIONS
For the next twelve months, RBID will continue its present business
operation as a leading provider of Internet access services, e-commerce
solutions, online shopping mall, auction mall and classified advertising for
consumers and small- to medium-sized businesses. The Company shall continue to
provide consumers and merchants the information, technology, and services they
need to become successful in e-commerce, while offering the online shopping
consumer a unique and enjoyable shopping, auction and free classified
advertising experience.
The Company anticipates that it will continue to be headquartered in
Laguna Hills, California. The Company is expanding its quality products and
services to include the world's first fully interactive online merchant stores
that include full access to auction and classifieds advertising channels.
At the present time, the Company distributes both a product and
service. The product which the Company distributes is a web site for individuals
which desire to own and operate a retail mall establishment for the sale of
goods and services. Specifically, an interested person will contract with the
Company to design a retail shopping mall. The selling price of the retail mall
site will range from $250.00 to $995.00. The Company will undertake to create
the retail mall for the subscriber and the subscriber will then be able to offer
a wide variety of goods and services to the public for sale from his/her
individual mall site.
The market for the products and services provided by the Company is
both the domestic and international markets. Specifically, all persons globally
who utilize the internet and available high speed technologies will be potential
customers of the Company. This would include persons who desire to set up their
own business mall site as well as persons that will purchase goods and services
from the mall sites.
The Company's main focus will continue to be to develop unique and
powerful Internet related e-commerce products and services to meet the high
demand of small to medium sized businesses. The Company's main focus will be on
marketing the Internet shopping mall and merchant online stores (Rmall.com)
classified advertising (Rads.com) and online auctions (Rbid.com). These new
exciting products and services will be the driving force for Company expansion
into new markets and product diversification. These new and revolutionary
products and services are called R-Mall (Internet shopping mall and merchant
online stores), R-Ads (Internet classified advertising), Rbid.com (Internet
auction), Rway.net (Internet access and marketing services) and R-escrow
(financial transactions).
11
<PAGE>
While the Company has spent the past year investing in intensive
preparation and development of the products and services and key affiliate
relationships with major retailers, which have been outlined on the rbid.com Web
site, the next 12 months will be spent implementing its marketing and sales
programs. Existing and newly enrolled users may now begin the practical
application of the Company's SuperSite features including: online auctions with
a user-friendly interface facilitating Web site navigation; an online shopping
mall with major industry names like Dell, Disney, JC Penny and Sharper Image;
classified advertising sites such as R-freeAds, Rhomeguide and R-auto mall; and
R-surf Internet services including a chat forum, free e-mail and a portal search
page --- all under the R-world umbrella of products and services.
The Company utilizes Organizational Marketing with Merchant Resellers
as the key marketing strategy behind Rway, Rmall and RBID auction house. In the
coming months and years the Company will focus on bringing on-board large
national organizations with millions of potential customers and vendors that
will buy and sell the Company's products and services. This unique market
approach will undoubtedly revolutionize the Internet world. Where other
companies spend tens of millions of dollars on banner media advertising as its
primary avenue of promoting and selling their products while trying to build a
name recognition, the Company will immediately focus on bringing millions of
customers on-line while strategically placing media advertising to exclusively
build the Company name recognition. The Company is developing relationships with
other national marketing firms that specialize in assisting corporations to
reach their maximum sales potentials.
All of the Company Internet products and services were developed and
designed for future expansion into the International markets. In the upcoming
year, the Company will selectively open new countries and territories in a
prudent and financially beneficial way with existing capable and experienced
marketing companies.
Through the development of proprietary software that allows the Company
to virtually contract with unlimited number of small local ISP's (Internet
service providers), the Company can offer unlimited Internet access at
competitive rates. The Company is able to sell Internet access in all major
metropolitan cities with unlimited Internet access at a competitive rate while
paying substantial commissions and bonuses. The Company's main servers are
located in a major hub to the world wide Internet and assures online members
fast access (56K or ISDN) and network reliability.
The Company has made a huge commitment and investment over the past
year into providing its internal computerized systems and distributor tracking
the best software available in the industry. Its partnership agreement with OP
Technologies, Oracle, 3Com, Motorola as well as utilizing the latest Microsoft
development programs for complete support of all the Company's exclusive
12
<PAGE>
software needs is a vital link to the Company's overall success and future
growth.
The Company believes that during the next 12 months it will begin to
generate revenues that will provide the Company with sufficient funds to meet
its day to day financial obligations. The Company does not anticipate the sale
of any securities other than under existing agreements or the borrowing of any
funds during the next 12 months since it believes that the funds it will receive
from operations will be more than adequate to meet the Company's needs. However,
in the event that additional funds would be required to operate the business of
the Company, the Company would seek to either borrow money or seek additional
equity investors.
The Company does not expect to purchase or sell any significant assets
during the next 12 months for use in its operations. However, if greater storage
and data capacity is required to meet the needs of its customers, the Company
will seek to increase its computer capacity through the purchase or rental of
additional equipment or storage capacity. However, the Company is unable to
state with any degree of certainty if the latter will be required during the
next 12 months.
The Company does not expect any significant change in the number of
employees during the next 12 months for use in its operations. However, if
greater manpower is required to meet the needs of its customers, the Company
will seek to increase its employee number. However, the Company is unable to
state with any degree of certainty if the latter will be required during the
next 12 months.
13
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
---------------------
For the quarter ended September 30, 1999, the Company generated a net
loss of $235,586, an increase from a net loss of $3,662 for the third quarter of
1998.
At September 30, 1999, the Company's total assets reached $42,605, an
increase of $26,945 over total assets at December 31, 1998.
DISCUSSION OF OPERATIONS
------------------------
The Development Stage Company continued to expend funds and develop its website
internet mall with expenditures of $42,612 for development software, $52,538 in
salaries and $60,449 in advertising/marketing for the third quarter, 1999,
compared to an inactive third quarter for 1998. The Company developed relations
and implemented computer programs with computer credit card processors.
The Company entered into a marketing agreement dated April, 1999, with an
unrelated market entity to market websites. The Company advanced monies to the
marketing entity in the approximate amount of $145,600. In order to assist in
customer satisfaction, the Company did not process any customer credit cards
until the websites were operating in July, 1999. The Company, because of
customers requests, began refunding credit card receipts in August, 1999 and
advanced amounts for sub-distributor commissions to the marketing entity.
The Company, in the test market of supersite orders from customers after receipt
of revenue decided to refund all cash and credit card receipts as a matter of
goodwill, upon discovery of significant sales allowances and sale returns. The
net result was to record revenues at zero after returns and allowances and
expense any test market advances to the market entity. The net amount recorded
as test market expense totaled $79,639 for the nine months ended September 30,
1999 and $42,148 for the three months ended September 30, 1999.
LIQUITY AND CAPITAL SOURCES
---------------------------
During the three months ended September 30, 1999, the major stockholder loaned
the Company $131,055 (net) for operations. In the third quarter the Company
began negotiations with a separate management group to provide additional liquid
funds and capital for future growth to alleviate an impending tight cash
14
<PAGE>
liquidity situation. An escrow cash funding agreement was signed in October,
1999, providing the new management group control of the Company for initial
funding of $250,000 and future funding of $500,000.
Please refer to the Statement of Cash Flows for the nine months ended September
30, 1999, and note the Company was inactive for the period ended September 30,
1998.
15
<PAGE>
PART II OTHER INFORMATION
- -------------------------
Item 1 LEGAL PROCEEDINGS
- ---------------------------
The Company and the RWAY are not involved in any legal proceedings incident to
their businesses. In the opinion of management, no material pr proceeding is
foreseen and no loss is expected from any such lawsuit.
Item 2 CHANGES IN SECURITIES AND USE OF PROCEEDS
- ---------------------------------------------------
Not applicable
Item 3 DEFAULTS UPON SENIOR SECURITIES
- -----------------------------------------
Not applicable
Item 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- -------------------------------------------------------------
No matters were submitted for a vote of shareholders during the period covered
by this report.
Item 5 OTHER INFORMATION
- ---------------------------
Not applicable
Item 6 EXHIBITS AND REPORT ON FORM 8-K
- -----------------------------------------
(a) Exhibits
NUMBER DESCRIPTION
------ -----------
Financial Data Schedule
(b) Reports on Form 8-K
None.
16
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
RBID.COM INC.
Date: November 10, 1999 By: /s/Fred Wallace
----------------
FRED WALLACE, CFO
17
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 9563
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 72389
<PP&E> 33042
<DEPRECIATION> 0
<TOTAL-ASSETS> 42605
<CURRENT-LIABILITIES> 219495
<BONDS> 0
0
0
<COMMON> 8378500
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 72398
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1522032
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1522039
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1522039
<EPS-BASIC> 0.20
<EPS-DILUTED> 0.20
</TABLE>
