TABLE OF CONTENTS
Page
Independent Accountant's Review Report 1
Balance Sheet 2
Statement of Operations 3
Statement of Cash Flows 4
Footnotes 5
G. BRAD BECKSTEAD
Certified Public Accountant
330 E. Warm Springs
Las Vegas, NV 89119
702.528.1984
425.928.2877 (efax)
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
Board of Directors
Future Carz.com, Inc.
(a Development Stage Company)
Las Vegas, NV
I have reviewed the accompanying balance sheet of Future
Carz.com, Inc. (a Nevada corporation) (a development stage
company) as of June 30, 2000 and the related statements of
operations for the three-month and six-month periods ended June
30, 2000 and for the period July 13, 1999 (Inception) to June 30,
2000, and cash flows for the six months ending June 30, 2000 and
for the period July 13, 1999 (Inception) to June 30, 2000. These
financial statements are the responsibility of the Company's
management.
I conducted my reviews in accordance with standards established
by the American Institute of Certified Public Accountants. A
review of interim financial information consists principally of
applying analytical procedures to financial data, and making
inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit
conducted in accordance with generally accepted auditing
standards, which will be performed for the full year with the
objective of expressing an opinion regarding the financial
statements taken as a whole. Accordingly, I do not express such
an opinion.
Based on my reviews, I am not aware of any material modifications
that should be made to the accompanying financial statements
referred to above for them to be in conformity with generally
accepted accounting principles.
The accompanying financial statements have been prepared assuming
the Company will continue as a going concern. As discussed in
Note 5 to the financial statements, the Company has had limited
operations and has not commenced planned principal operations.
This raises substantial doubt about its ability to continue as a
going concern. Management's plans in regard to these matters are
also described in Note 5. The financial statements do not
include any adjustments that might result from the outcome of
this uncertainty.
I have previously audited, in accordance with generally accepted
auditing standards, the balance sheet of Future Carz.com, Inc. (a
development stage company) as of December 31, 1999, and the
related statements of operations, stockholders' equity, and cash
flows for the period July 13, 1999 (Inception) to December 31,
1999 (not presented herein) and in my report dated April 17,
2000, I expressed an unqualified opinion on those financial
statements.
/s/G. Brad Beckstead, CPA
August 9, 2000
Future Carz.com, Inc.
(a Development Stage Company)
Balance Sheet
June 30, 2000 and December 31, 1999
(unaudited)
June 30, December
31,
2000 1999
Assets
Current assets:
Cash 220 5,082
Total current assets 220 5,082
Fixed assets:
Office equipment 8,473 8,473
Less accumulated depreciation (847) -
Total fixed assets 7,626 8,473
Other assets:
Website development 20,000 20,000
Less accumulated amortization (2,000) (333)
Total other assets 18,000 19,667
Total Assets 25,846 33,222
Liabilities and Stockholders' Equity
Current liabilities
Subscription refund 375 375
Loan from stockholder 2,000 -
Total current liabilities 2,375 375
Long-term liabilities - -
Total liabilities 2,375 375
Stockholders' Equity:
Preferred stock, $0.001 par value,
5,000,000
shares authorized, zero shares issued and
outstanding - -
Common stock, $0.001 par value,
20,000,000
shares authorized, 5,328,087 shares
issued and
outstanding 5,328 5,328
Additional paid-in capital 65,076 65,076
Deficit accumulated during development (46,933) (37,557)
stage
Total stockholders' equity 23,471 32,847
Total Liabilities and Stockholders' 25,846 33,222
Equity
Future Carz.com, Inc.
(a Development Stage Company)
Statement of Operations
(unaudited)
For the Three Months and Six Months Ending June 30, 2000
and For the Period July 13, 1999 (Inception) to June 30, 2000
Three Months Six Months July 13,
1999
Ending Ending (Inception)
to
June 30, June, 30 June 30,
2000 2000 2000
Revenue - - -
Expenses:
Advertising
Amortization expense 667 1,667 2,000
Depreciation expenses 424 847 847
General and 558 6,862 44,086
administrative
expenses
Total expenses 1,649 9,376 46,933
Net loss (1,649) (9,376) (46,933)
Weighted average
number of
common shares 5,328,087 5,328,087 5,328,087
outstanding
Net loss per share - - -
Future Carz.com, Inc.
(a Development Stage Company)
Statement of Cash Flows
(unaudited)
For the Six Months Ending June 30, 2000
and For the Period July 13, 1999 (Inception) to June 30, 2000
Six Months July 13,
1999
Ending (Inception)
to
June 30, June 30,
2000 2000
Cash flows from operating activities
Net loss (9,376) (46,933)
Adjustments to reconcile net income to
net cash used
by operating activities:
Amortization expense 1,667 2,000
Depreciation expense 847 847
Common stock issued for services 10,259
provided
Increase (decrease) in:
Subscription refund - 375
Loan from stockholder 2,000 2,000
Net cash used by operating activities (4,862) (31,452)
Cash flows from investing activities
Purchase of fixed assets - (8,473)
Development of website - (20,000)
Net cash provided (used) by investing - (28,473)
activities
Cash flows from financing activities
Issuance of common stock - 60,145
Net cash provided by financing - 60,145
activities
Net (decrease) increase in cash (4,862) 220
Cash - beginning 5,082 -
Cash - ending 220 220
Supplemental disclosures:
Interest paid - -
Income taxes paid - -
Non-cash investing and financing
activities:
Common stock issued for services - 10,259
provided
Future Carz.com,, Inc.
Footnotes to Financial Statements
Note 1 - History and organization of the company
The Company was organized July 13, 1999 (Date of Inception) under
the laws of the State of Nevada, as Future Carz.com, Inc. The
Company has limited operations and in accordance with SFAS #7,
the Company is considered a development stage company. The
Company is authorized to issue 20,000,000 shares of $0.001 par
value common stock and 5,000,000 shares of $0.001 par value
preferred stock.
Note 2 - Accounting policies and procedures
Accounting policies and procedures have not been determined
except as follows:
Accounting method
The Company reports income and expenses on the accrual method.
Estimates
The preparation of financial statements in conformity with
generally accepted accounting principals requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting
period. Actual results could differ form those estimates.
Cash and equivalents
The Company maintains a cash balance in a non-interest-bearing
account that currently does not exceed federally insured
limits. For the purpose of the statements of cash flows, all
highly liquid investments with the maturity of three months or
less are considered to be cash equivalents. There are no cash
equivalents as of June 30, 2000.
Reporting in the costs of start-up activities
Statement of Position 98-5 (SOP 98-5), "Reporting on the Costs
of Start-Up Activities" which provides guidance on the
financial reporting of start-up costs and organizational costs.
It requires most costs of start-up activities and
organizational costs to be expensed as incurred. SOP 98-5 is
effective for its fiscal years beginning after December 15,
1998. With the adoption of SOP 98-5, there has been little or
no effect on the Company's financial statements.
Loss per share
Net loss per share is provided in accordance with Statement of
Financial Accounting Standards No. 128 (SFAS #128) "Earnings
Per Share". Basic loss per share is computed by dividing
losses available to common stockholders by the weighted average
number of common shares outstanding during the period. Diluted
loss per share reflects per share amounts that would have
resulted if dilutive common stock equivalents had been
converted to common stock. As of June 30, 2000, the Company
had no dilutive common stock equivalents such as stock options.
Dividends
The Company has not yet adopted any policy regarding payment of
dividends. No dividends have been paid since inception.
Website development
Website development costs are amortized over a period of 60
months using the straight-line method.
Equipment
The cost of equipment is depreciated over the estimated useful
life of the equipment of five years utilizing the straight-line
method of depreciation.
Year end
The Company has adopted December 31 as its fiscal year end.
Note 3 - Income taxes
Income taxes are provided for using the liability method of
accounting in accordance with Statement of Financial Accounting
Standards No. 109 (SFAS #109) "Accounting for Income Taxes". A
deferred tax asset or liability is recorded for all temporary
differences between financial and tax reporting. Deferred tax
expense (benefit) results from the net change during the year of
deferred tax assets and liabilities. There is no provision for
income taxes for the period ended June 30, 2000, due to the net
loss and no state income tax in Nevada, the state of the
Company's domicile and operations.
Note 4 - Stockholders' equity
The Company is authorized to issue 20,000,000 shares of $0.001
par value common stock and 5,000,000 shares of $0.001 par value
preferred stock.
On July 29, 1999, the Company issued 4,000,000 shares of its
$0.001 par value common stock to a shareholder in exchange for
cash.
On November 30, 1999, the Company issued 1,328,087 shares of its
$0.001 par value common stock to shareholders in exchange for
cash of $56,145 and in exchange for services rendered of $10,259.
Of the total amount, $1,328 is considered common stock and
$65,076 is considered additional paid-in capital.
There have been no other issuances of common or preferred stock.
Note 5 - Going concern
The Company's financial statements are prepared using the
generally accepted accounting principles applicable to a going
concern, which contemplates the realization of assets and
liquidation of liabilities in the normal course of business.
Without realization of additional capital, it would be unlikely
for the Company to continue as a going concern. The Company does
not have significant cash or other assets readily convertible to
cash nor does it an established source of revenue sufficient to
cover its operating costs. Until that time, the officers have
committed to make cash advances to the Company to cover its
operating costs. The cash advances do not bear any interest.
Note 6 - Related party transactions
The Company does not lease or rent any property. Office services
are provided without charge by a director/shareholder. Such
costs are immaterial to the financial statements and,
accordingly, have not been reflected therein. The officers and
directors of the Company are involved in other business
activities and may, in the future, become involved in other
business opportunities. If a specific business opportunity
becomes available, such persons may face a conflict in selecting
between the Company and their other business interests. The
Company has not formulated a policy for the resolution of such
conflicts.
Note 7 - Warrants and options
There are no warrants or options outstanding to acquire any
additional shares of common stock.
Note 8 - Year 2000 issue
The Company uses a significant number of computer software
programs and operating systems in its internal operations,
including applications used in financial business systems and
various administrative functions. Although the Company's
software applications contain source code that appropriately
interpreted the calendar year 2000, failure by the Company to
make any future modifications resulting from "Year 2000" could
result in systems interruptions or failures that could have a
material adverse effect on the Company's business. The Company
has not incurred, nor anticipates that it will incur material
expenses to make its computer software programs and operating
systems "Year 2000" compliant. However, there can be no
assurance that unanticipated costs necessary to update software,
or potential systems interruptions, will not exceed the Company's
expectations and have a material adverse effect on the Company's
business, financial condition and results of operations.
Item 2. Management's Discussion and Plan of Operation
General
Future Carz.com, Inc. (the "Company") is a developmental stage
company with a principal business objective to provide automobile
information and purchasing services via the Internet to assist
consumers in researching, evaluating and buying new and pre-owned
vehicles. In addition, the Company seeks to offer services to
enable consumers to purchase automotive-related products and
services such as insurance, financing, extended warranties, and
automobile parts.
The Company currently operates a web site at www.futurecarz.com,
where visitors can search for automobile-related information and
services from the privacy of their home or office. Future
Carz.com, Inc. believes its process will insulate consumers from
unpleasant price negotiations by requiring member dealers to
provide a competitive, firm, upfront price to consumers. Using the
www.futurecarz.com web site allows consumers to obtain access to a
wide range of comprehensive, up-to-date information about vehicle
models, options and dealer costs at no charge. Information such as
vehicle specifications, Kelly Blue Book pre-owned vehicle values
and automobile reviews will be aggregated in a central location,
providing consumers with an objective, convenient means to make an
informed purchase decision.
The Company is enrolled in an affiliate program, through which it
receives remuneration for referrals to other automotive web site.
Remuneration is based upon the following factors: (i) the level of
traffic directed to affiliates, (ii) the number of price inquiries
submitted and (iii) the number of sales realized as a result of
referrals. The Company, however, has limited operating history,
and must be considered a developmental stage company. Future
operations are dependent upon management's ability to attract and
retain users, of which there can be no assurance. Management must,
among other things, develop and market the Company's vehicle
information and purchasing services.
Results of Operations
The Company has not generated any revenues since its inception.
The Company has limited operating history. The Company was
organized on July 13, 1999. Activities to date have been limited
primarily to organization, initial capitalization, finding and
securing a management team and board of directors, the development
of a business plan and web site operations and commencing with
initial operational plans.
As of March 31, 2000, the Company has developed a business plan,
recruited and retained a management team, developed a web site at
www.futurecarz.com and raised capital via a private placement
offering of stock made pursuant to Section 4(2) of the Securities
Act of 1933, as amended, and an offering made in reliance upon an
exemption from the registration provisions of the Securities Act of
1933, as amended, in accordance with Regulation D, Rule 504. As a
start-up and development stage company, the Company has no new
products or services to announce.
Liquidity and Capital Resources
To date, the Company has attained cash from offerings of its common
stock. On July 29, 1999, the Company issued 4,000,000 shares of
its $0.001 par value common shares for cash. On November 30, 1999,
the Company issued 1,328,087 shares of its common stock for cash of
$56,145 and in exchange for services rendered of $10,259. Of the
total amount, $1,328 is considered common stock and $65,076 is
additional paid-in capital.
The Company has yet to generate any revenues. Without the
realization of additional capital, it would be unlikely for the
Company to continue as a going concern. It is management's plan to
seek additional capital through a private offering of its
securities once it gets listed on the NQB's "Pink Sheets" or the
OTC-BB. The Company does not have significant cash or other
material assets nor does it have an established source of revenue
sufficient to cover its operating costs to allow it to continue as
a going concern indefinitely. Until that time, the officers have
committed to advance the operating costs the company interest free.
The officers and directors of the Company are involved in other
business activities and may, in the future, become involved in
other business opportunities. If a specific business opportunity
becomes available, such persons may face a conflict in selecting
between the Company and their other business interests. The
Company has not formulated a policy for the resolution of such
conflicts.
PART II - OTHER INFORMATION
Item 6. Exhibits
Exhibit Name and/or Identification of Exhibit
Number
3 Articles of Incorporation & By-Laws
(a)Articles of Incorporation of the Company filed
July 13, 1999. Incorporated by reference to the
exhibits to the Company's General Form For
Registration Of Securities Of Small Business
Issuers on Form 10-SB, previously filed with the
Commission.
(b)By-Laws of the Company adopted July 16, 1999.
Incorporated by reference to the exhibits to the
Company's General Form For Registration Of
Securities Of Small Business Issuers on Form
10-SB, previously filed with the Commission.
23 Consent of Experts and Counsel
Consents of independent public accountants
27 Financial Data Schedule
Financial Data Schedule of Future Carz.com, Inc.
ending June 30, 2000
SIGNATURES
Pursuant to the requirements of the Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Future Carz.com, Inc.
(Registrant)
Date: August 11, 2000
By:/s/ Hal Crawford
Hal Crawford, President
