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 Date
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 March 31, 2000, the number of shares outstanding of the Registrant's
Common Stock was 24,000,000
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements.
Attached hereto and incorporated herein by this reference are unaudited
Financial statements (under cover of Exhibit QF1-00) for the three months ended
March 31, 2000.
Item 2. Management's 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
estimate that we would require about $250,000 in the next twelve month to meet
overhead (rent, salaries, and overhead) 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;
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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.
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.
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.
It is in our compelling interest to report its 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. It is our intention, following the commencement of
operations to retain a qualified United States Auditing firm to carry forth our
financial reporting. 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. By this
statement we mean that our interim Canadian Auditors have prepared our financial
statements in accordance with US GAAP.
We had no revenues or significant liabilities in 1998. We had only initial
selling and administrative expenses in that year, which were funded by loans
from shareholders. These loans remain on the books as of the end of 1999, in the
amount of $6,350.
We had no revenues in 1999. We incurred $29,361 in expenses in that year.
These expenses are detailed in our financial statements. They represent start-up
and organizational costs. These 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.
We had no revenues or expenses in the first quarter of 1999. In the current
first quarter we incurred expenses and loss of $12,802. These are pre-launch
developmental expenses attributable to our start-up.
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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
Financial Statements
Exhibit QF1-00: Financial Statements (Un-Audited) March 31, 2000
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-Q Report for the Quarter ended March 31, 2000, has been signed below by
the following person on behalf of the Registrant and in the capacity and on the
date indicated.
Dated: May 18, 2000 (formerly Inter.N Corporation)
By
_________/S/________ __________/S/____________
Maurizio Forigo Lance Morginn
President/Director Secretary/Director
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Exhibit Exhibit QF1-00
Un-Audited Financial Statements
for the three Months Ended March 31, 2000
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SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
(UNAUDITED)
(U.S. DOLLARS)
<TABLE>
<CAPTION>
<S> <C> <C>
March 31, December 31,
2000 1999
----------- --------------
ASSETS
CURRENT
Cash $ 4,406 $ 2,778
Prepaid expense 0 5,600
- ---------------------------------------------------------------- ----------- --------------
TOTAL ASSETS $ 4,406 $ 8,378
- ---------------------------------------------------------------- ----------- --------------
LIABILITIES
CURRENT
Accounts payable $ 8,069 $ 5,239
DUE TO SHAREHOLDERS 6,350 350
- ---------------------------------------------------------------- ----------- --------------
TOTAL LIABILITIES 14,419 5,589
- ---------------------------------------------------------------- ----------- --------------
STOCKHOLDERS' EQUITY
COMMON STOCK, 25,000,000 shares authorized, par value of $0.001,
24,000,000 (1999 - 24,000,000) shares issued and outstanding 24,000 24,000
ADDITIONAL PAID-IN CAPITAL 9,500 9,500
DEFICIT ACCUMULATED DURING THE DEVELOPMENT STAGE (43,513) (30,711)
- ---------------------------------------------------------------- ----------- --------------
TOTAL STOCKHOLDERS' EQUITY (10,013) 2,789
- ---------------------------------------------------------------- ----------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,406 $ 8,378
- ---------------------------------------------------------------- ----------- --------------
</TABLE>
See notes to financial statements.
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SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(UNAUDITED)
(U.S. DOLLARS)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIOD FROM
THREE MONTHS THREE MONTHS JUNE 27, 1996
ENDED MARCH 31, ENDED MARCH 31, (INCEPTION) TO
2000 1999 MARCH 31, 2000
(Note 2)
EXPENSES
Professional fees $ 8,430 $ 0 $ 15,330
Selling and administrative 2,833 0 6,568
Rent 762 0 2,433
Consulting 688 0 14,054
Bank charges 89 0 152
Travel 0 0 4,976
- ---------------------------- ---------------- ----------------- ---------------
TOTAL EXPENSES AND NET
LOSS FOR PERIOD $ 12,802 $ 0 $ 43,513
- ---------------------------- ---------------- ----------------- ---------------
NET LOSS PER SHARE $ 0.00 $ 0.00
- ---------------------------- ---------------- -----------------
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 24,000,000 6,000,000
- ---------------------------- ---------------- -----------------
</TABLE>
See notes to financial statements.
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SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF STOCKHOLDERS' EQUITY
(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
---------- ------- ------------ ------------- ---------------
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 (1,500) 0 7500
Net loss 0 0 0 (29,361) (29,361)
Share issue costs 0 0 (5,000) 0 (5,000)
- ---------------------------------- ---------- ------- ------------ ------------- ---------------
Balance, December 31, 1999 24,000,000 24,000 9,500 (30,711) 2,789
Period Ended March 31, 2000
Net loss 0 0 0 (12,802) (12,802)
- ---------------------------------- ---------- ------- ------------ ------------- ---------------
Balance, March 31, 2000 24,000,000 $24,000 $ 9,500 $ (43,513) $ (10,013)
- ---------------------------------- ---------- ------- ------------ ------------- ---------------
</TABLE>
See notes to financial statements.
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SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(U.S. DOLLARS)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIOD FROM
THREE MONTHS THREE MONTHS JUNE 27,1996
ENDED MARCH 31 ENDED MARCH 31 (INCEPTION) TO
2000 1999 MARCH 31, 2000
---------------- ---------------- ----------------
(Note 2)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (12,802) $ 0 $ (43,513)
Adjustment to reconcile net loss
to net cash used by operating
activities
Issuance of common stock for payment
of services 0 0 8,500
CHANGES IN NON-CASH WORKING CAPITAL
Prepaid expense 5,600 0 0
Accounts payable 2,830 0 8,069
- ----------------------------------------- ---------------- ---------------- ----------------
NET CASH USED IN OPERATING ACTIVITIES (4,372) 0 (26,944)
- ----------------------------------------- ---------------- ---------------- ----------------
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 1,628 0 4,406
CASH, BEGINNING OF PERIOD 2,778 0 0
- ----------------------------------------- ---------------- ---------------- ----------------
CASH, END OF PERIOD $ 4,406 $ 0 $ 4,406
- ----------------------------------------- ---------------- ---------------- ----------------
</TABLE>
See notes to financial statements.
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SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(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 statement 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-12G, 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
March 31, 2000 and the results of operations and cash flows for the three
months ended March 31, 2000 and 1999. The results of operations for the three
months ended March 31, 2000 are not necessarily indicative of the results to be
expected for the entire fiscal year.
2. COMPARATIVE FIGURES
Operating results for the three month period ended March 31, 1999 were not
audited or reviewed.
