SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1933
Commission File Number: 0-30565
Date of Report: June 2, 2000.
KNOWLEDGE NETWORKS, INC.
Nevada 91-2014670
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
24843 Del Prado, Suite 318, Dana Point, CA 92629
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (949) 248-1765
The following Securities are to be registered pursuant to Section 12(g) of the
Act:
10,361,750
Class-A Common Voting Equity Stock
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UN-AUDITED FINANCIAL STATEMENTS
MAY 31, 2000
Our 1934 Act Registration Statement was filed about May 5, 2000 and will
become effective on July 5, 2000.
This Current Report is filed for the purpose of providing our more recent
Un-Audited Financial Statements for the five months ended May 31, 2000, under
cover of Exhibit 5/31/00.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the date indicated.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to signed on its behalf by the undersigned, thereunto
authorized.
KNOWLEDGE NETWORKS, INC.
by
/s/ /s/
Kirt W. James Jeff Harry
president/director secretary/director
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--------------------------------------------------------------------------------
EXHIBIT 5/31/00
UN-AUDITED FINANCIAL STATEMENTS
FOR THE FIVE MONTHS ENDED MAY 31, 2000
FOR THE YEARS ENDED DECEMBER 31, 1999, 1998
--------------------------------------------------------------------------------
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KNOWLEDGE NETWORKS. INC.
BALANCE SHEET
For the year ended December 31, 1999
And the period ended May 31, 2000
<TABLE>
<CAPTION>
<S> <C> <C>
May 31, December 31,
2000 1999
--------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS
Cash 3,334 5,585
Notes Receivable 63,993 63,993
-------- -------------
TOTAL CURRENT ASSETS 67,327 69,578
-------- -------------
TOTAL ASSETS 67,327 69,578
======== =============
STOCKHOLDERS' EQUITY
Common Stock, $.001 par value; authorized 100,000,000
shares; issued and outstanding, 10,361,750 shares
and 10,361,750 shares respectively 10,362 10,362
Additional Paid-In Capital 142,806 142,806
Accumulated Equity (Deficit) (85,819) (83,590)
Less: Subscription receivable
Total Stockholders' Equity 67,327 69,578
-------- -------------
TOTAL STOCKHOLDERS' EQUITY 67,327 69,578
======== =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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KNOWLEDGE NETWORKS. INC.
STATEMENTS OF OPERATIONS (UNAUDITED)
For the periods ended May 31, 1999 and 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C>
From inception,
December 16,
1988 through
May 31, May 31,
2000 1999 2000
----------------------------------------------------------------------
Revenues 17,500 12,000 62,183
----------- ---------- ----------------
Bad debt 11,154
Consulting fees 19,500 41,378 120,681
General and Administrative 251 3,875 16,189
----------- ---------- ----------------
Total Expenses 19,751 45,253 148,024
Net Loss from Operations (2,251) (33,253) (85,841)
Net Income (Loss) (2,251) (33,253) (85,841)
=========== ========== ================
Loss per Share (0.00022) (0.00334) (0.00854)
=========== ========== ================
Weighted Average
Shares Outstanding 10,361,750 9,958,360 10,048,290
=========== ========== ================
</TABLE>
The accompanying notes are an integral part of these financial statements.
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KNOWLEDGE NETWORKS. INC.
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)(UNAUDITED)
For the period from inception of the Corporation
On December 16, 1998, through December 31, 1998
For the year ended December 31, 1999 and the period May 31, 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Additional Accumulated Total Stock-
Common Par Paid-In Equity holders' Equity
Stock Value Capital (Deficit) (Deficit)
--------------------------------------------------------------------------------------------------------
Common Stock issued at inception 8,020,000 8,020 0 0 8,020
Sale of Common Stock
at $0.01 per share 980,000 980 8,820 0 0
Distribution to shareholders in spin off 0 0 6,844 0 0
Loss during the period from December 16,
through December 31, 1998 0 0 0 (11,209) 0
Balance at December 31, 1998 9,000,000 9,000 15,664 (11,209) 13,455
Sale of Common Stock
at $0.10 per share 1,035,000 1,035 102,465 0 0
Issuance of Common Stock for
services at $0.10 per share 249,250 249 24,677 0 0
Issuance of Common Stock
at par for services rendered 77,500 78 0 0 0
Loss during the period from January 1
through December 31, 1999 0 0 0 (72,381) 0
Balance at December 31, 1999 10,361,750 10,362 142,806 (83,590) 69,578
Loss during the period from January 1
through May 31, 2000 0 0 0 (2,251) 0
Balance at May 31, 2000 10,361,750 10,362 142,806 (85,841) 67,327
</TABLE>
The accompanying notes are an integral part of these financial statements.
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KNOWLEDGE NETWORKS. INC.
STATEMENT OF CASH FLOWS (UNAUDITED)
For the period ended May 31, 1999 and 2000
<TABLE>
<CAPTION>
<S> <C> <C> <C>
From inception,
December 16,
1988 through
May 31, May 31,
2000 1999 2000
--------- ---------- -----------------
Operating Activities
Net Income (Loss) ($2,251) ($33,253) ($85,841)
Adjustments to reconcile net loss to
net cash provided by operations
Bad debt 0 11,154 11,154
Issuance of stock for services 0 25,004 25,004
--------- ---------- -----------------
Net cash flows used Operations (2,251) 2,905 (49,683)
Cash flows used in Investment Activities
Cash payments for notes receivable 0 (63,993) (63,993)
--------- ---------- -----------------
Net Cash used in Investment Activities 0 (63,993) (63,993)
Cash Flows from Financing Activities
Cash received from subscriptions receivable 0 9,800 9,800
Cash received from spin-off 3,710
Issuance of stock for cash 0 103,500 103,500
--------- ---------- -----------------
Net Cash Flows from Financing Activities 0 113,300 117,010
Net increase (decrease) in cash (2,251) 52,212 3,334
Cash, beginning of period 5,585 3,655 0
--------- ---------- -----------------
Cash, end of period $ 3,334 $ 55,867 $ 3,334
========= ========== =================
</TABLE>
The accompanying notes are an integral part of these financial statements.
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KNOWLEDGE NETWORKS, INC.
Notes to The Financial Statements
December 31, 1999 and May 31, 2000
NOTE I - Summary of Significant Accounting Policies
a. Organization
Knowledge Networks, Inc., ("the Company") is a Nevada corporation organized on
December 16,
1998. The Company was created on this date through a spin off of the operations
and assets to the shareholders of Knowledge Networks Acquisitions, IncThe
Company specializes in Microsoft consulting and training as well as
telecommunications consulting, training and outsourcing.
b. Accounting Method
The Company recognizes income and expenses on the accrual basis of accounting.
c. Earnings (Loss) Per Share
The computation of earnings per share of common stock is based on the weighted
average number
of shares outstanding at the date of the financial statements.
d. Cash and Cash Equivalents
The Company considers all highly liquid investments with maturities of three
months or less to
be cash equivalents.
e. Provision for Income Taxes
No provision for income taxes has been recorded due to net operating loss
carryforwards totaling approximately $85,830 that will be offset against future
taxable income.
Deferred tax assets and the valuation account is as follows at December 31, 1999
and May 31, 2000.
May 31, December 31,
2000 1999
----------------------------------------------------
Deferred tax asset:
NOL carrryforward $ 9,648 $ 9,648
Valuation allowance (9,648)) (9,648)
Total 0 0
NOTE 2 - Going Concern
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company is dependent upon raising
capital to continue operations. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
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KNOWLEDGE NETWORKS, INC.
Notes to the Financial Statements
December 31, 1999 and May 31, 2000
NOTE 3 - Related Party Transactions
During 1999, $63,993 was paid to an officer of the Company. The note is due
within the next twelve months with no provision for interest.
During 1999,326,750 shares of common stock were issued to officers and
shareholders for consulting services of $25,004.
During 1999 and the first three months of 2000, $44,683 and $17,500 in sales,
respectively, were to a shareholder.
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