--------------------------------------------------------------------------------
Maurizio Forigo
PRESIDENT
SafeID Corporation
Suite B3, 1700 Varsity Estates Drive
NW Calgary, Alberta, Canada T3B 2W9
(Name and Address of Person Authorized to Receive Notices
and Communications on Behalf of the Person Filing Statement)
--------------------------------------------------------------------------------
WITH A COPY TO:
KARL E. RODRIGUEZ, ESQ
24843 Del Prado, #318
Dana Point, CA 92629
(949) 248-9561
fax (949) 248-1688
--------------------------------------------------------------------------------
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] 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: 0-29803
Safe ID Corporation
(formerly Inter.N Corporation)
Nevada 88-0407078
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
Suite B3, 1700 Varsity Estates Drive NW Calgary, Alberta Canada T3B-2W9
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (403) 247-4630
The following Securities are to be registered pursuant to Section 12(g) of the
Act: 24,000,000
Yes [X] No [ ] (Indicate by check mark whether the Registrant (1) has filed
all report required to be filed by Section 13 or 15(d) of the Securities
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.)
As of September 30, 2000, the number of shares outstanding of the Registrant's
Common Stock was 24,000,000
INTRODUCTION
We have filed our registration statement voluntarily pursuant to Section
12(g) of the Securities Exchange Act of 1934, in order to comply with the
requirements of the National Association of Securities Dealers for submission
for quotation on the Over the Counter Bulletin Board, often called OTCBB . This
Issuer's common stock is not presently quoted on the OTCBB. Its common stock is
listed on the Pink Sheets and may have traded in brokerage transactions. The
requirements of the OTCBB are that the financial statements and information
about the Issuer be reported periodically to the Commission and be and become
information that the public can access easily. This issuer wishes to report and
provide disclosure voluntarily, and will file periodic reports in the event that
its obligation to file such reports is suspended under the Exchange Act. If and
when this 1934 Act Registration is effective and clear of comments by the staff,
this issuer will be eligible for consideration for the OTCBB upon submission of
one or more NASD members for permission to publish quotes for the purchase and
sale of the shares of the common stock of the issuer. Our 1934 Act Registration
has not cleared comments by the Staff of the SEC.
1
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
Attached hereto and incorporated herein by this reference are the following
financial statements:
--------------------------------------------------------------------------------
Exhibit FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
00QF-3 Un-Audited Financial Statements for the three months and nine months
ended September 30, 2000
--------------------------------------------------------------------------------
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
(A) PLAN OF OPERATION FOR THE NEXT TWELVE MONTHS.
(1) CASH REQUIREMENTS AND OF NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS. We
have estimated that we would require about $250,000 in the next twelve month to
meet overhead (rent, salaries, and operational expenses) and also expenses
connected with marketing (cost of goods sold, buying chips, mainly,) and also
general working capital. These necessary funds must be raised by offering
additional shares of stock in one or a combination of the following: a public
offering pursuant to the Securities Act of 1933; and/or, one or more private
placement of restricted securities. We have not determined yet what plan or
plans of capital formation we will pursue. The principal purpose of this 1934
Act Registration is to secure and sustain the quote-ability of our common stock
on the OTCBB. Accordingly, the phrase "next twelve months includes the twelve
months following the effectiveness of our 1934 Act Registration clear of SEC
Comments. We cannot proceed with capital formation before that time.
We would require about $50,000 to launch, to establish our dynamic link
relationships with major markets, and to produce and circulate brochures and
initial advertising announcements. The term "dynamic link" refers to the common
commercial practice by which one web site features a direct link to another web
site.
We would require about $200,000 in initial working capital to insure
liquidity for the first twelve months following our launch.
As previously stated, we believe that an initial $250,000 private placement
would be sufficient to defer our expenses until we begin to generate sufficient
revenues. When our 1934 Act Registration is clear of comments, we would proceed
with our planned private placement. We would expect to allow three months for
the completion and clearance of funds. At that time we will purchase inventory
and expect to begin making sales and recording revenues immediately. The basis
for our expectation of immediate revenue generation is based upon our
management's existing relationships and informal contacts with potential
customers. If we are unsuccessful in securing investment in our private
placement, we may not be able to continue as a going concern.
It is apparent that our cash on hand is insufficient for any material
purpose. We do not have any current operations other than our focus on this 1934
Act Registration. Accordingly, expenses incurred in connection with this
Registration which exceed our available cash on hand must be and will be
advanced by management.
We do not anticipate any contingency upon which we would voluntarily cease
filing reports with the SEC, even though we might cease to be required to do so.
2
<PAGE>
It is in our compelling interest to report our affairs quarterly, annually and
currently, as the case may be, generally to provide accessible public
information to interested parties, and also specifically to maintain our
qualification for the OTCBB, if and when the Issuer's intended application for
submission may be effective.
(2) SUMMARY OF PRODUCT RESEARCH AND DEVELOPMENT. We do not have any new
products in development. We do not develop new products. We may re-sell products
developed by others in the future, when and if they are demonstrated to be
marketable and properly warranted by their manufacturers.
(3) EXPECTED PURCHASE OR SALE OF PLANT AND SIGNIFICANT EQUIPMENT. None.
(4) EXPECTED SIGNIFICANT CHANGE IN THE NUMBER OF EMPLOYEES. We have no
firm expectations. We hope to grow. Growth would be accompanied by additional
employees.
(B) DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
We are a Canadian Company with a Canadian Auditing firm, Smythe Ratcliffe,
Chartered Accountants. Smythe Ratcliffe is a member of PKF International
Association, an international association of independent accounting firms. Our
financial statements have been prepared in accordance with US GAAP. We are a
development stage company, as defined in Statement 7, of the Financial
Accounting Standards Board. Our financial statements have been prepared in
accordance with generally accepted accounting principles applicable to a going
concern, which assumes that we will realize our assets and discharge our
liabilities in the normal course of operations. Of course, our ability to do
this is dependent upon our ability to raise additional financing and to generate
revenues. Our plan is to raise funds, as we have described above, supplemented
by our planned principle operations, beginning this year, 2000.
(1) BALANCE SHEET. Our Financial condition had not changed materially
during the current year 2000.
Balance Sheet. . . . September 30, June 30, December 31,
2000 2000 1999
--------------------------------------------------------------
Cash . . . . . . . . $ 1,263 $ 2,035 $ 2,778
Prepaid Expenses . . 0 0 5,600
Total Assets . . . . 1,263 2,035 8,378
Accounts Payable . . 34,082 16,606 5,239
Shareholders Payable 6,350 6,350 350
--------------------------------------------------------------
Total Liabilities. . 40,432 22,956 5,589
(2) OPERATIONS. From inception, June 27, 1996, to June 30, 2000, we had
no revenues and modest expenses:
The Remainder of this Page is Intentionally left Blank
3
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
3RD QUARTER. Inception
June 27
1996
To
Operations. . . . . . . . July 1 to Sept 30 Jan 1 to Sept 30 Sept 30
2000 1999 2000 1999 2000
----------------------------------------------------------------------------------------------
Revenues: . . . . . . . . 0 0 0 0 0
Total Revenues . . . . . 0 0 0 0 0
Professional Fees . . . . 17,477 5,000 34,444 5,000 41,344
Rent. . . . . . . . . . . 754 971 2,255 971 3,926
Bank Charges. . . . . . . 18 22 125 22 188
Selling & Administrative. 8 1,678 4,446 1,678 8,181
Consulting. . . . . . . . 0 32,501 688 32,501 36,554
Travel. . . . . . . . . . 0 4,976 0 4,976 4976
----------------------------------------------------------------------------------------------
Total Expenses . . . . . 18,257 45,148 41,958 45,148 95,169
Net (Loss). . . . . . . . (18,257) (45,148) (41,958) (45,148) (95,169)
</TABLE>
SECOND QUARTER
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Operations . . . . . . . . April 1 to June 30 January 1 to June 30
2000 1999 2000 1999
-------------------------------------------------------------------------------------------
Revenues:. . . . . . . . . $ 0 $ 0 $ 0 $ 0
Total Revenues. . . . . . 0 0 0 0
Expenses:
Professional Fees. . . . . 8,537 0 16,967 0
Selling and Administrative 1,605 0 4,438 0
Rent . . . . . . . . . . . 748 0 1,510 0
Bank Charges . . . . . . . 18 0 107 0
Consulting . . . . . . . . 0 0 668 0
Travel . . . . . . . . . . 0 0 0 0
--------------------------------------------------------------------------------------
Total Expenses. . . . . . 10,908 0 23,690 0
Net Loss . . . . . . . . . 10,908 0 23,690 0
</TABLE>
We had no revenues and modest liabilities. We had only initial selling and
administrative expenses in that year, which were funded by loans from
shareholders. These loans remain on the books. Expenses were funded
substantially by the sale of stock, and not from operations. We have an
insignificant amount cash and other assets as of the close of this last fiscal
year and currently.
4
<PAGE>
An analysis of our financial condition concludes that we are a
barely-funded start-up, with an immediate need to begin to generate revenues and
to obtain further financing. If we are not successful in this regard, we will
not be able to achieve our objectives in this year 2000, may not be able to
launch successful operations and may fail. It is not our intention to fail, nor
to abandon our plan.
It is our belief that a world-wide market is developing for means and
devices for the positive identification of animals and inanimate objects, and
that Internet marketing can be achieved profitably within the frame work of our
expected funding requirements. There can be no guarantee that our operating
assumptions will prove correct.
(C) REVERSE ACQUISITION CANDIDATE. This Registrant is not a candidate for
reverse acquisition transactions, either as acquiror or target. It is the
intention of this Registrant to pursue the development of its business and
business plan, as described in the Items of this Registration Statement.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS. None
ITEM 2. CHANGE IN SECURITIES. None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS. None
ITEM 5. OTHER INFORMATION.None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. None
EXHIBIT INDEX
--------------------------------------------------------------------------------
Exhibit FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
00QF-2 Un-Audited Financial Statements for the three months and six months
ended September 30, 2000
--------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-QSB Report for the Quarter ended September 30, 2000, has been signed
below by the following person on behalf of the Registrant and in the capacity
and on the date indicated.
SAFE ID CORPORATION
Dated: October 13, 2000 (formerly INTER.N CORPORATION)
by
/s/Maurizio Forigo /s/Lance Morginn
Maurizio Forigo Lance Morginn
president/director secretary/director
5
<PAGE>
--------------------------------------------------------------------------------
EXHIBIT EXHIBIT 00QF-2
UN-AUDITED FINANCIAL STATEMENTS
FOR THE THREE MONTHS
AND NINE MONTHS
ENDED SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
6
<PAGE>
SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
(UNAUDITED)
(U.S. DOLLARS)
<TABLE>
<CAPTION>
<S> <C> <C>
September 30, December 31,
2000 1999
---------------------------------------------------------------------------------------
ASSETS
CURRENT
Cash. . . . . . . . . . . . . . . . . . . . . . . . . $ 1,263 $ 2,778
Prepaid expense . . . . . . . . . . . . . . . . . . . 0 5,600
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . $ 1,263 $ 8,378
LIABILITIES
CURRENT
Accounts payable. . . . . . . . . . . . . . . . . . . $ 34,082 $ 5,239
DUE TO SHAREHOLDERS . . . . . . . . . . . . . . . . . . 6,350 350
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . 40,432 5,589
STOCKHOLDERS' EQUITY (DEFICIENCY)
COMMON STOCK, 25,000,000 shares
authorized, par value of $0.001,
24,000,000 (1999 - 24,000,000)
shares issued and outstanding
ADDITIONAL PAID-IN CAPITAL. . . . . . . . . . . . . . . 32,000 32,000
DEFICIT ACCUMULATED DURING THE DEVELOPMENT STAGE. . . . (95,169) (53,211)
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) . . . . . . . . (39,169) 2,789
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) $ 1,263 $ 8,378
</TABLE>
7
<PAGE>
SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(UNAUDITED)
(U.S. DOLLARS)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
THREE MONTHS THREE MONTHS NINE MONTHS NINE MONTHS PERIOD FROM
ENDED ENDED ENDED ENDED JUNE 27, 1996
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30 (INCEPTION) TO
SEPTEMBER 30,
2000 1999 2000 1999 2000
(Note 2) (note 2)
--------------------------------------------------------------------------------------------------------------
EXPENSES
Professional fees . . . . . $ 17,477 $ 5,000 $ 34,444 $ 5,000 $ 41,344
Rent. . . . . . . . . . . . 745 971 2,255 971 3,926
Bank charges. . . . . . . . 18 22 125 22 188
Selling and administrative. 8 1,678 4,446 1,678 8,181
Consulting. . . . . . . . . 0 32,501 688 32,501 36,554
Travel. . . . . . . . . . . 0 4,976 0 4,976 4,976
--------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES AND NET
LOSS FOR PERIOD . . . . . . $ 18,248 $ 45,148 $ 41,958 $ 45,148 $ 95,169
==============================================================================================================
NET LOSS PER SHARE. . . . . . $ 0.00 $ 0.00 $ 0.00 $ 0.00
==============================================================================================================
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING . . . 24,000,000 24,000,000 24,000,000 24,000,000
==============================================================================================================
</TABLE>
8
<PAGE>
SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
(UNAUDITED)
(U.S. DOLLARS)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
DEFICIT
------------
ACCUMULATED
COMMON COMMON ADDITIONAL DURING THE TOTAL
STOCK STOCK PAID-IN DEVELOPMENT STOCKHOLDERS'
NUMBER AMOUNT CAPITAL STAGE EQUITY
(Deficiency)
-------------------------------------------------------------------------------------------------------
BALANCE, JUNE 27, 1996 . . . . . . 0 $ 0 $ 0 $ 0 $ 0
Common Stock Issued for Services 6,000,000 6,000 (5,000) 0 1,000
Net Loss, June 27, 1996
to December 31, 1996 . . . . . 0 0 0 (1,000) (1,000)
-------------------------------------------------------------------------------------------------------
BALANCE, DECEMBER 31, 1996 . . . . 6,000,000 6,000 (5,000) (1,000) 0
YEAR ENDED DECEMBER 31, 1997
Net loss . . . . . . . . . . . . 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
BALANCE, DECEMBER 31, 1997 . . . . 6,000,000 6,000 (5,000) (1,000) 0
YEAR ENDED DECEMBER 31, 1998
Net loss . . . . . . . . . . . . 0 0 0 (350) (350)
-------------------------------------------------------------------------------------------------------
BALANCE, DECEMBER 31, 1998 . . . . 6,000,000 6,000 (5,000) (1,350) (350)
YEAR ENDED DECEMBER 31, 1999
Common stock issued
For cash . . . . . . . . . . . 9,000,000 9,000 21,000 0 30,000
For services . . . . . . . . . 9,000,000 9,000 21,000 0 30,000
Net loss . . . . . . . . . . . . 0 0 0 (51,861) (51,861)
Share issue costs. . . . . . . . 0 0 (5,000) 0 (5,000)
-------------------------------------------------------------------------------------------------------
Balance, December 31, 1999 . . . . 24,000,000 24,000 32,000 (53,211) 2,789
Period Ended September 30, 2000
Net loss . . . . . . . . . . . . 0 0 0 (41,958) (41,958)
-------------------------------------------------------------------------------------------------------
Balance, September 30, 2000. . . . 24,000,000 $24,000 $ 32,000 $ (95,169) $ (39,169)
=======================================================================================================
</TABLE>
9
<PAGE>
SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(U.S. DOLLARS)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NINE MONTHS NINE MONTHS PERIOD FROM
ENDED ENDED JUNE 27,1996
SEPTEMBER, 30 SEPTEMBER, 30 (INCEPTION) TO
2000 1999 SEPTEMBER 30, 2000
(Note 2)
--------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss . . . . . . . . . . . . . . . . $ (41,958) $ 0 $ (95,169)
Adjustment to reconcile net loss
to net cash used by operating
activities
Issuance of common stock for payment
of services. . . . . . . . . . . . . . 0 0 31,000
CHANGES IN NON-CASH WORKING CAPITAL
Prepaid expense. . . . . . . . . . . . . 5,600 0 0
Accounts payable . . . . . . . . . . . . 28,843 0 34,082
-------------------------------------------------------------------------------------------------
NET CASH USED IN OPERATING ACTIVITIES. . . (7,515) 0 (30,087)
-------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
Advances from shareholders . . . . . . . 6,000 0 6,350
Issuance of common stock . . . . . . . . 0 0 25,000
-------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES. 6,000 0 31,350
-------------------------------------------------------------------------------------------------
CASH INFLOW (OUTFLOW). . . . . . . . . . . (1,515) 0 1,263
CASH, BEGINNING OF PERIOD. . . . . . . . . 2,778 0 0
-------------------------------------------------------------------------------------------------
CASH, END OF PERIOD. . . . . . . . . . . . $ 1,263 $ 0 $ 1,263
=================================================================================================
</TABLE>
10
<PAGE>
SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
(U.S. DOLLARS)
1. BASIS OF PRESENTATION
These unaudited consolidated financial statements have been prepared in
accordance with generally accepted accounting principles in the United States
for interim financial information. These financial statements are condensed and
do not include all disclosures required for annual financial statements. The
organization and business of the Company, accounting policies followed by the
Company and other information are contained in the notes to the Company's
audited financial statements filed as part of the Company's December 31, 1999
Form 10-SB which is currently under review by the Securities Exchange
Commission.
In the opinion of the Company's management, these financial statements reflect
all adjustments necessary to present fairly the Company's financial position at
September 30, 2000 and December 31, 1999 and the results of operations and cash
flows for the nine months and three months ended September 30, 2000 and 1999.
The results of operations for the nine months ended September 30, 2000 are not
necessarily indicative of the results to be expected for the entire fiscal year.
2. COMPARATIVE FIGURES
Operating results for the nine month period ended September 30, 1999 were not
audited or reviewed.
11
<PAGE>
