U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-QSB
For the quarterly period ended September 30, 2000
Commission file number 0-30544
SCHIMATIC CASH TRANSACTIONS NETWORK.COM, INC
(Exact name of small business issuer as specified in its charter)
FLORIDA 88-0415947
(State of other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
205 West 700 South, Suite 200, Salt Lake City, Utah 84101
(Address of principal executive offices)
(801) 355-0066
(Issuer's telephone number)
(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 [
]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
OUTSTANDING AS OF
CLASS NOVEMBER 17, 2000
----- -----------------
Common
Par value $. 001 per share 69,017,720
Transitional Small Business Disclosure Format (check one)
YES___ NO _X_
---
<PAGE>
SCHIMATIC CASH TRANSACTIONS NETWORK.COM, INC.
FORM 10-QSB
FOR THE QUARTER ENDED SEPTEMBER 30, 2000
INDEX
PART 1- FINANCIAL INFORMATION
Page
Item 1. Consolidated Financial Statements :
Balance Sheet as of September 30, 2000 3
Statements of Operations for the three months and nine months
ended September 30, 2000 and 1999 and from February 26,
1997 (inception) through September 30, 2000 4
Statements of Cash Flows for the nine months ended September
30, 2000 and 1999 and from February 26, 1997
(inception) through September 30, 2000 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis or Plan of Operation 7
PART II- OTHER INFORMATION
Item 1 - Legal Proceedings 8
Item 2. Changes in Securities 8
Item 3. Defaults Upon Senior Securities 10
Item 4. Submission of Matters to a Vote of Securities Holders 10
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
<PAGE>
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS.
SCHIMATIC CASH TRANSACTIONS NETWORK.COM.INC.
D/B/A IC ONE, INC.
(A Development Stage Enterprise)
CONSOLIDATED BALANCE SHEET
September 30, 2000
( Unaudited)
ASSETS
OTHER CURRENT ASSETS $ 6,955
PROPERTY AND EQUIPMENT, less accumulated
depreciation and amortization of $226,989 179,846
PATENTS, net of accumulated amortization of $9,444 37,410
INVESTMENT IN REAL ESTATE JOINT VENTURE 400,000
-------------------
$ 624,211
===================
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 1,725,944
Accrued expenses and other liabilities 669,450
Notes payable 125,000
Loans payable - shareholders 262,325
-------------------
TOTAL CURRENT LIABILITIES 2,782,719
-------------------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' DEFICIT:
Common stock -$.001 par value; 200,000,000 shares authorized;
70,409,744 shares issued and outstanding. 70,410
Additional paid-in capital 14,888,548
Deficit accumulated during the development stage (17,117,466)
-------------------
TOTAL SHAREHOLDERS' DEFICIT (2,158,508)
-------------------
$ 624,211
===================
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3
<PAGE>
SCHIMATIC CASH TRANSACTIONS NETWORK.COM.INC. D/B/A IC ONE, INC.
( A Development Stage Enterprise )
CONSOLIDATED STATEMENTS OF OPERATIONS
( Unaudited )
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS END INCEPTION
SEPTEMBER 30, SEPTEMBER 30, (FEBRUARY 26, 1997
--------------------------- ----------------------------- TO SEPTEMBER 30,
2000 1999 2000 1999 2000)
------------- ------------- -------------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
REVENUES: $ - $ - $ - $ - $ -
COSTS AND EXPENSES:
Research and development 1,220,741 173,949 2,881,406 741,287 5,620,758
Selling, general and administrative 1,300,263 202,074 2,971,301 771,544 7,737,223
Interest expense 35,150 (4,153) 65,575 51,230 343,889
Depreciation and amortization 21,837 135,254 65,511 282,104 236,433
Loss on settlement of vendor liability - - - - 1,533,333
------------- ------------- --------------- ------------- ----------------
TOTAL COSTS AND EXPENSES 2,577,991 507,124 5,983,793 1,846,165 15,471,636
------------- ------------- --------------- ------------- ----------------
LOSS BEFORE EXTRAORDINARY ITEM (2,577,991) (507,124) (5,983,793) (1,846,165) (15,471,636)
EXTRAORDINARY ITEM-LOSS ON
EXTINGUISHMENT OF DEBT - - - - (300,000)
------------- ------------- --------------- ------------- ----------------
NET LOSS $(2,577,991) $ (507,124) $(5,983,793) $(1,846,165) (15,771,636)
============= ============= =============== ============= ================
NET LOSS PER SHARE - BASIC AND DILUTED:
LOSS BEFORE EXTRAORDINARY ITEM $ (0.04) $ (0.02) $ (0.09) $ (0.08) $ (0.79)
EXTRAORDINARY ITEM - - - - $ (0.01)
------------- ------------- --------------- ------------- ----------------
NET LOSS AFTER EXTRAORDINARY ITEM
- BASIC AND DILUTED $ (0.04) $ (0.02) $ (0.09) $ (0.08) $ (0.80)
============= ============= =============== ============= ================
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 70,182,969 28,211,927 67,490,430 24,532,110 19,708,064
============= ============= =============== ============= ================
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4
<PAGE>
SCHIMATIC CASH TRANSACTIONS NETWORK.COM.INC. D/B/A IC ONE, INC.
A Development Stage Enterprise
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED INCEPTION
SEPTEMBER 30, (FEBRUARY 26, 1997)
--------------------------------------- TO
2000 1999 SEPTEMBER 30, 2000
------------------ ----------------- ----------------------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(5,983,793) $ (1,846,165) $ (15,771,636)
Adjustments to reconcile net loss w/net cash
used in operating activities:
Depreciation and amortization 65,511 282,104 236,433
Stock issued for services 477,161 333,827 827,988
Compensation from Stock Option Issuance 3,041,45- 3,041,456
Loss on extinguishment of debt - - 300,000
Loss on settlement of vendor liability - - 1,533,333
Changes in assets and liabilities:
Increase in other assets (6,955) (2,387) (6,955)
Increase(Decrease) in accounts payable
and accrued expenses 312,301 (59,704) 2,393,823
------------------ ----------------- ------------------
NET CASH USED IN OPERATING ACTIVITIES (2,094,319) (1,292,325) (7,445,558)
------------------ ----------------- ------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (63,359) (47,466) (405,998)
Acquisition of patents - (15,379) (46,854)
------------------ ----------------- ------------------
------------------ ----------------- ------------------
NET CASH USED IN INVESTING ACTIVITIES (63,359) (62,845) (452,852)
------------------ ----------------- ------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes and loans - 35,000 715,325
Cash Deficit 1,571 485 1,571
Repayments of notes (78,000) - (328,000)
Sales of common stock 2,228,105 1,288,848 7,509,514
------------------ ----------------- ------------------
NET CASH PROVIDED
BY FINANCING ACTIVITIES 2,151,676 1,324,333 7,898,410
------------------ ----------------- ------------------
NET DECREASE IN CASH $ (6,002) $ (30,837) $ -
================== ================= ==================
CASH AT BEGINNING OF PERIOD 6,002 30,837 -
------------------ ----------------- ------------------
CASH AT END OF PERIOD $ - $ - $ -
================== ================= ==================
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5
<PAGE>
SCHIMATIC CASH TRANSACTIONS NETWORK.COM, INC. D/B/A IC ONE, INC
(A Development Stage Enterprise)
(Unaudited)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The accompanying unaudited condensed financial statements have been
prepared in accordance generally accepted accounting principles for
interim financial information and the instructions to Form 10-QSB.
Accordingly they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal accruals) considered necessary for a fair
presentation have been included. Operating results for the nine months
ended September 30, 2000 are not necessarily indicative of the results
that may be expected for the full fiscal year ended December 31, 2000.
For further information, refer to the financial statements and
footnotes for the year ended December 31, 1999 included in the
Company's registration statement on Form 10-SB.
2. Going Concern
The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern. The Company incurred
losses of $15,772, 000 since inception. Additionally, the Company had a
deficiency in working capital and total capital of $2,776,000and
$2,159,000, respectively, at September 30, 2000. The Company has
experienced cash shortages and inability to pay its obligations
currently. Of the $2,783,000 of current liabilities, approximately
$2,611,000 is past due, including $2,173,000 estimated to be more than
90 days past due. These amounts include approximately $1,100,000
payable to IBM and $811,000 owed to affiliates who are employees or
directors of the Company. Both IBM and the referred to affiliates have
informally agreed to deferred payment pending availability of
sufficient cash. The Company is currently having specific discussions
with IBM aimed at restructuring its liability. These conditions
collectively raise substantial doubt about the Company's ability to
continue as a going concern..
Management's plans with respect to these matters include restructuring
debt and current liabilities through the issuance of common stock or
entering into forbearance agreements, continuing to defer payment of
amounts due to affiliates for past due obligations and current
compensation, raising additional capital through future issuance of
stock and or debentures and ultimately developing a viable business.
The Company may find it necessary to implement severe cost cutting
measures. It may also rely increasingly on strategic alliances with
others who will assume responsibility for financing specific required
development tasks; thus, reducing the Company's financial requirements
for the exploitation of its intellectual properties. The Company has
been able to raise capital through the issuance of its common stock to
finance its costs of operations. In the first nine months of 2000, the
Company raised $2,228,000 of cash through such issuance and paid for
services and debt reduction totaling $791,000 through the issuance of
stock.
The accompanying financial statements do not include any adjustments
that might be necessary should the Company be unable to continue as a
going concern.
3. Stockholders Equity and Subsequent Event Related to Issuance of Stock
Options
During the nine months ended September 30, 2000, the Company issued
5,252,469 shares of common stock. Of these shares, 3,755,066 shares
were issued for cash with proceeds of $2,228, 000, 639,754 shares were
issued for services valued at $477,161, based on the approximate market
6
<PAGE>
value of the company's common stock at the date of issuance, and
857,649 shares were issued in repayment of debt obligations totaling
$314,000.
In June 2000, the Company reinstated 12,317,258 shares of Company
common stock, which shares had been cancelled unilaterally by the
Company in the first quarter of 2000 in connection with the Company's
assertion of claims against the owners of the shares. Such shares have
been reinstated, pending the outcome of further discussions by the
Company with the holders of such shares. The Company is seeking the
return of a substantial portion of the shares as agreed to informally
by the shareholders as part of the acquisition agreement of IC One,
Inc. in September 1999. Based on preliminary discussions with the
largest holder of the subject shares, the Company anticipates that
7,800,000 shares may be returned and cancelled.
In September the Company's board of directors ratified actions taken by
officers calling for the issuance of stock options related to the
Company's common stock pursuant to its Stock Option Plan. These actions
caused a total of 7,098,333 shares of common stock options to be issued
to officers and directors with exercise prices of $.48 per share.
Vesting of the right to exercise such stock options will occur over
periods until December 31, 2002. All of the stock options expire at the
end of 10 years from the date of grant. Of these options, 2,093,194
vested during the nine months ended September 30, 2000. The Company
accounts for the costs of stock options issued to employees based on
APB 25. Accordingly, any "in the money" value of the options at the
time of issuance is recorded as compensation expense ("Stock Option
Expense") at the time or times when the associated options become
vested to the employee. For the nine months ended September 30, 2000,
the Company recorded Stock Option Expense of $3,041,458 from the
partial vesting of the previously issued options with a corresponding
entry to Other Paid in Capital.
Subsequently, in October and November 2000, the Company issued to
employees an additional 5,700,000 of stock options. The total of all
options issued to employees to date is 18,424,073. The total of all
Stock Option Expense to be recorded for employee stock options
currently issued is $10,071,000.
4. Settlement of Claims.
On April 13, 2000, a judgement against the Company was entered by the
third judicial court of Salt Lake City County, State of Utah (the
"Court"). The judgement related to a claim for enforcement of a
defaulted note agreement with the Canopy Group, Inc. pursuant to which
The Canopy Group lent to the Company $250,000 under an interest-bearing
note. On May 31, 2000, the Court entered a Satisfaction of judgement
based on a settlement agreement reached between the Company and The
Canopy Group. The settlement agreement called for the Company to pay
the full amount of principal and interest due under the note by the
issuance of its common stock. Under the settlement agreement the
Company issued 857,649 shares of its common stock in full settlement of
$314,417 owed to the Canopy Group. Also in connection with the
settlement agreement, The Canopy Group invested an additional $250,000
in exchange for 681,936 shares of the Company's common stock. The
financial statements of the Company reflect the full amount of the
settlement and the new capital investment.
In March 2000 the Company entered into agreements with attorneys to
obtain certain legal services. These agreements required the Company to
issue certain securities and pay specified compensation and other
amounts. Such attorneys left the Company in July 2000, and the Company
took the position that no securities or additional cash amounts were
due the attorneys. On November 15, 2000, the Company agreed to issue
the attorneys 500,000 shares of common stock as part of the
consideration of settling the claims of such attorneys
ITEM 2- MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
7
<PAGE>
The following discussion and analysis provides information which management
believes is relevant to an assessment and understanding of the Company's
financial condition. This discussion should be read in conjunction with the
financial Statements and notes thereto appearing elsewhere herein.
GENERAL. Statements in this form 10QSB that are not Statements of historical or
current fact constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other unknown
factors that could cause the actual results of the company to be materially
different from the historical results or from any future results expressed or
implied by such forward-looking statements. In addition to statements that
explicitly describe such -risks and uncertainties, readers are urged to consider
statements labeled with The Terms "believes," "belief," "expects"," intends",
anticipates" or "plans" to be uncertain and forward-looking. The forward looking
statements contained herein are also subject generally to other risks and
uncertainties that are described from time to time in the Company's reports and
registration statements filed with the Securities and Exchange Commission.
The Company's financial condition and results of operations reflect that it is a
development-stage stage company, with no operating REVENUE TO DATE. ACCORDINGLY,
THE DISCUSSION BELOW FOLLOWS THE GUIDELINES OF REG. 228.303, PART (A) REGARDING
PLAN OF OPERATION.
PLAN OF OPERATION. Details of the Company's Plan of Operation are more fully
described in its Form 10SB filed with the Commission. Without raising additional
funds through debt and/or equity investments, SCTN will be unable to meet its
cash requirements for the next twelve, months. The Company does not expect to
earn significant revenue before mid- 2001. The Company estimates that it will
require as much a $10 million of additional capital in order to meet operating
cash needs, including research and development expenses and other operating
expenses as contemplated by its Plan of Operation. The Company estimates that
continuation of operations at their current level, without the expansion and
further development contemplated by the plan of operation and without satisfying
current liabilities, would require approximately $3.0 million over the next
twelve months. See "Sources of Liquidity and new Capital" below and Note 2, of
Notes to Financial Statements for a discussion of sources of funds.
DEVELOPMENT PROGRAM. The Company believes its software and systems technology
are developed to the point where they are readily adaptable to market
applications. Further development, with the exception of the integration of
loyalty with payments processing, has been held pending further definition by
market and process alliances. The Development program as it continues is
anticipated to be co-funded by venture partners based on carefully defined
cost/revenue sharing models. The Company is continuing its development program,
in particular for the integration of loyalty with payments processing. Of the
$10 million of additional capital referred to above, approximately $4.7 million
is anticipated to be allocated for development. To the extent that such
development can be funded in part by venture or alliance partners, this
development budget would be reduced.
Through September 30, 2000, the Company estimates that approximately $10 million
of its cumulative expenditures including research and development and general
and administrative expenses, inception to date, have been expended for
development of its patents and software intellectual property.
The Company expects to add up to twenty new employees in the year 2000 to meet
its business and software development needs. The Company's ability to obtain
such people depends on its ability to obtain necessary capital. The Company
expects to purchase or sell no material plant or equipment in the foreseeable
future.
LIQUIDITY AND NEW CAPITAL. Internal sources of liquidity would include cash flow
resulting from business developed through current or future marketing agreements
and through the licensing of the Company's Patents. The Company cannot predict
the date at which such business revenues will commence or be sufficient to meet
its working capital needs. The Company expects to raise funds through the sale
of additional securities in order to meet such needs and the expansion program
described in the previous paragraph. There is no assurance that the Company will
be able to complete such sales of securities.
8
<PAGE>
The Company has to date financed its operations through the issuance of
additional common stock; however the Company has experienced cash shortages and
inability to pay its obligations currently. Of the $2,783,000 of current
liabilities, approximately $2,611,000 is past due, including $2,173,000
estimated to be more than 90 days past due. These amounts include approximately
$1,100,000 payable to IBM and $811,000 owed to affiliates who are employees or
directors of the Company. Both IBM and the referred to affiliates have
informally agreed to deferred payment pending availability of sufficient cash.
The Company is currently having specific discussions with IBM aimed at
restructuring its liability. See Note 2 of Notes to Financial Statements for a
discussion of going concern accounting.
Management's plans with respect to these matters include restructuring debt and
current liabilities through the issuance of common stock or entering into
forbearance agreements, continuing to defer payment of amounts due to affiliates
for past due obligations and current compensation, raising additional capital
through future issuance of stock and or debentures and ultimately developing a
viable business. The Company may find it necessary to implement severe cost
cutting measures. It may also rely increasingly on strategic alliances with
others who will assume responsibility for financing specific required
development tasks; thus, reducing the Company's financial requirements for the
exploitation of its intellectual properties
The Company has been able to raise capital through the issuance of its common
stock through private placements with qualified and accredited investors with
proceeds used to finance its costs of operations. During the period since
December 31, 1999 and until September 30, 2000, the Company has raised
$3,020,000 of funds from such issuance.
POSSIBLE UNCERTAINTIES REGARDING SECURITIES SALES. The Company and its
subsidiary and predecessors have sold securities in reliance on exemptions from
registration under the Securities Act and applicable state securities laws. The
Company believes that it and its subsidiary and predecessors have materially
complied with the requirements of the applicable exemptions. However, since
compliance with these exemptions is highly technical, it is possible that the
Company and its subsidiary and predecessors could be faced with certain
contingencies based on civil liabilities resulting from the failure to meet the
terms and conditions of such exemptions, which could have a material adverse
impact on the Company's financial condition..
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
In March 2000 the Company entered into agreements with attorneys to obtain
certain legal services. These agreements required the Company to issue certain
securities and pay specified compensation and other amounts. Such attorneys left
the Company in July 2000, and the Company took the position that no securities
or additional cash amounts were due the attorneys. On November 15, 2000, the
Company agreed to issue the attorneys 500,000 shares of common stock as part of
the consideration of settling the claims of such attorneys.
The Company is not a party to any other pending material legal proceedings and,
to the best of its knowledge, no such material proceedings have been threatened
against it. However from time to time the Company has been sued by creditors
others regarding amounts owed by the Company. Currently the Company is aware of
one such lawsuit, which is still pending with alleged claims less than $30,000.
In these cases, the Company has sought or would seek to negotiate a settlement
or forbearance agreement.
Item 2. CHANGES IN SECURITIES
SHARES ISSUED AND OUTSTANDING. During the nine months ended September 30, 2000,
the Company issued 5,252,469 shares of common stock. Of these shares, 3,755,066
shares were issued for cash with proceeds of $2,229,000, 639,754 shares were
issued for services valued at $477,161 and 857,649 shares were issued in
9
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repayment of debt obligations totaling $314,000. The Company believes that all
of these securities were issued as private placements in a manner exempt from
registration requirements of the Securities and Exchange Act of 1933 (the "Act")
based on Regulation 4(2) of the Act and that to the best of the Company's
ability to determine all new investors are Accredited Investors as defined in
the Act.
STOCK OPTIONS. In September the Company's board of directors ratified actions
taken by officers calling for the issuance of stock options related to the
Company's common stock pursuant to its Stock Option Plan. These actions caused a
total of 7,098,333 shares of common stock options to be issued to officers and
directors with an average exercise price of $.48 per share. Vesting of the right
to exercise such stock options will occur over periods until December 31, 2002.
Of these options, 2,373,236 vested prior to September 30, 2000. Of the 7,098,33
share options, the Company believes that 1,490,000 were exempt from registration
under the Act based on Rule 701 and Regulation 4(2). The Company believes that
all other stock options were issued as private placements in a manner exempt
from registration requirements of the Securities and Exchange Act of 1933 (the
"Act") based on Regulation 4(2) of the Act and that to the best of the Company's
ability to determine all option holders are Accredited Investors as defined in
the Act.
Subsequently, in October and November 2000, the Company issued to employees an
additional 5,700,000 of stock options. The total of all options issued to
employees to date is 18,424,073. The details, including the basis for exemption
from registration pursuant to the Act, of the stock options issued in the year
2000 are set forth in the following table.
EFFECTIVE SHARES EXERCISE EXEMPTION
Options Issued To: Date Optioned Price (1)
----------------------- ------------ ------------ ---------- --------------
OFFICERS AND DIRECTORSGROUPED BY EFFECTIVE DATE:
1/13/00 900,000 $ 0.48 701 or04(2)
3/1/00 2,250,000 $ 0.48 04(2)
4/4/00 500,000 $ 0.48 701 or 4(2)
5/1/00 1,500,000 $ 0.48 04(2)
9/7/00 1,020,000 $ 0.48 04(2)
10/12/00 700,000 $ 0.36 04(2)
10/12/00 500,000 (2) 4(2)
11/15/00 3,000,000 $ 0.48 04(2)
11/15/00 1,500,000 (2) 4(2)
OTHER EMPLOYEES GROUPED BY EFFECTIVE DATE:
9/6/00 250,000 $ 0.48 04(2)
3/9/00 24,000 $ 0.80 4(2)
5/24/00 104,333 $ 0.48 701 or04(2)
1/13/00 550,000 $ 0.48 701 or04(2)
------------
TOTAL OPTIONS GRANTED 12,798,333
============
NOTES:
(1) The information provided indicates the basis for exemption from
registration. 701 refers to Rule 701 of the Act, and 4(2) refers to private
placements pursuant to Rule 4(2) of the Act.
(2) The noted options will have an exercise price determined by the Board of
Directors in connection with specific performance criteria.
Item 3. DEFAULTS UPON SENIOR SECURITIES
None.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable.
Item 5. OTHER INFORMATION
Not Applicable.
10
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Item 6. EXHMITS AND REPORTS ON FORM 8-K
(a) Exhibits
27. Financial Data Schedule
Reports on Form 8-K. No reports on Form 8-K were filed during the quarter ended
September 30, 2000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SCHIMATIC CASH TRANSACTIONS NETWORK.COM, INC (Registrant)
/S/ JAMES WILLIAMS
-------------------------------
James Williams, President / CEO.
/S/ JOE COYKENDALL
--------------------------------
Joe Coykendall, Sr. Vice President/Chief Financial Officer
