SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Act of 1934
MULTINET INTERNATIONAL CORPORATION, INC.
Nevada 88-0441388
(State of Incorporation)(Commission File Number) (I.R.S. Employer I.D. Number)
8100 West Sahara Ave., Suite 200, Las Vegas NV 89102
(Address of Principal Executive Offices) (Zip Code)
Registrants Telephone Number, including area code: (702) 966-0600
AND
NIKKY D CORPORATION
Arizona 86-0772226
(State of Incorporation) (I.R.S. Employer I.D. Number)
8100 West Sahara Ave, Suite 200, Las Vegas, NV 89118
(Address of Current Principal Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (702) 966-0600
ITEM 1. CHANGES IN CONTROL OF REGISTRANT. PROPOSED ACQUISITION WITH NIKKY
D. CORPORATION
On July 1st 2000, MULTINET INTERNATIONAL CORPORATION (The Company) entered
into an Acquisition Agreement with NIKKY D. CORPORATION. Pursuant to the
Agreement,upon consummation of the Acquisition, NIKKY D. CORPORATION will
become a Wholly-Owned Subsidiary of the MULTINET.(See attached Acquisition
Agreement)
Pursuant to the Acquisition Agreement, at the effective time of the Merger
("July 1st 2000"), each share of the NIKKY D. CORPORATION Common Stock
outstanding immediately prior to the Effective Time will be converted into
the right to receive, and will be exchangeable for one (1) share of the
Company's Common Stock. Based on 2,000,000 of NIKKY D. CORPORATION common
stock outstanding at June 30th 2000 the Company will issue 2,000,000 shares
of its authorized but unissued stock in the Acquisition Merger which will
represent 45.14 % of the total shares of Common Stock to be outstanding
immediately following the Acquisition.
Consummation of the Acquisition Merger is subject to the satisfaction of a
number of conditions, including the approval of the Acquisition Merger by
the shareholders of NIKKY D. CORPORATION and the Company. in connection with
the execution of the Acquisition Agreement, holders of NIKKY D. CORPORATION
common stock owning in excess of 51% of NIKKY D. CORPORATION outstanding
common stock entered into an agreement to vote their shares in favor of the
Acquisition. On the same date, shareholders of the Multinet International
Corporation, Inc., holding in excess of 51% of the Company's common stock
entered into a voting agreement to vote their shares in favor of the
Acquisition.
The Company believes that the Acquisition will create a combined entity that
should help the Company's achieve the strategic goals which it has
established.
ITEM 2. ACQUISITION OF ASSETS
MULTINET INTERNATIONAL, in acquiring NIKKY D CORPORATION, will be acquiring a
Company that provides management services to an Auto Service Station. (See
attached contract)
MULTINET'S objective is to become a leading provider of Auto Station
Management to Auto Service Stations, Auto Dealerships and any other online
management that will assist in the economic operation of these special
services and marketing companies, establishing a niche, providing high
quality management. Creating high standards of service to the public and
customer involved in the everyday service and at the same time developing
loyalty in the company service and marketing department. The Company's
strategy is to acquire enough management contacts where by it will be
economical to control all inventories and sales through a central internet
accounting system. Providing the Auto Service and Auto Dealership operations
with an instant read out to their daily operations.
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
Multinet has recently change accountants. This switch was due to the
unavailability of its previous accountant (Kurt. D. Saliger.) Mr. Saliger
has signed a consent indicating that the change in accountants was amicable.
(See attached exhibit) Multinet's current accountant is Kyle Tingle, C.P.A.
ITEM 7. EXHIBITS
<TABLE>
<S> <C>
2.1 Plan of Acquisition.
3.1 Articles of Incorporation (Multinet). Incorporated
by Reference in Company's 10SBG filed on 1/25/2000.
3.2 By Laws (Multinet). Incorporated by Reference in
Company's 10SB12G filed on 1/25/2000.
3.3 Articles of Incorporation (Nikky D.)
3.4 By Laws (Nikky D.)
16.1 Letter on change in certifying accountant.
27.1 Nikky D. Management Agreement.
</TABLE>
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.
MULTINET INTERNATIONAL, INC.
/s/
Sherri Kresser
Secretary.
MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL REPORTS
JUNE 30, 2000
DECEMBER 31, 1999
DECEMBER 31, 1998
MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
CONTENTS
<TABLE>
<S> <C>
INDEPENDENT AUDITOR'S REPORT ON THE
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . .1
FINANCIAL STATEMENTS
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . ..2
Statements of Income. . . . . . . . . . . . . . . . . . . . .3
Statements of Stockholders' Equity . . . . . . . . . . . . . 4
Statements of Cash Flows . . . . . . . . . . . . . . . . . . 5-6
Notes to Financial Statements . . . . . . . . . . . . . . . .7-9
Independent Auditor's Report
To the Board of Directors
Multinet International Corporation, Inc.
Las Vegas, Nevada
I have audited the accompanying balance sheet of Multinet International
Corporation, Inc. ( a development stage company ) as of June 30, 2000 and the
related statements of income, stockholders' equity, and cash flows for the six
months then ended. I have also audited the accompanying balance sheets as of
December 31, 1999 and 1998 and the related statements of income, stockholders'
equity, and cash flows for the years then ended. These financial statements
are the responsibility of the Company's management. My responsibility is to
express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimated made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a reasonable basis
for my opinion.
In my opinion, the financial statements referred to above present fairly, in
all material respects the financial position of Multinet International
Corporation, Inc. ( A Development Stage Company ) as of June 30, 2000 and the
results of its operations and cash flows for the six months then ended, in
conformity with generally accepted accounting principles. The financial
statements referred to above present fairly, in all material respects, the
financial position of Multinet International Corporation, Inc. ( A Development
Stage Company ) as of December 31, 1999 and 1998 and the results of its
operations and cash flows for each of the years then ended, in conformity with
generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 4 to the
financial statements, the Company has not been generating revenue and has
suffered recurring losses from operations which raises substantial doubt about
its ability to continue as a going concern. Managements' plans in regard to
these matters are also described in Note 4. The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
/s/
Kyle L. Tingle
Certified Public Accountant
July 6, 2000
</TABLE>
<TABLE>
MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
June 30, 2000 and December 31, 1999 and 1998
<CAPTION>
June 30, December 31, December 31,
2000 1999 1998
-------- ------------ ------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash $3,681 $167 $1,650
Accounts receivable 0 0 0
------ ----- -------
Total current assets $3,681 $167 $1,650
====== ===== =======
Total assets $3,681 $167 $1,650
====== ===== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and
accrued expenses (Note 3) $650 $220 $220
----- ----- -----
Total current liabilities $650 $220 $220
===== ===== =====
STOCKHOLDERS' EQUITY
Common stock: $.001 par value;
authorized 25,000,000 shares;
issued and outstanding
2,425 shares at December 31, 1998 $ $ $2
2,425,500 shares at
December 31, 1999; 2,426
2,431,000 shares at June 30, 2000; 2,431
Additional Paid In Capital 5,994 499 2,423
Accumulated deficit during
development stage (5,394) (2,978) (995)
------- ------- ------
Total Stockholders' Equity $3,031 $(53) $1,430
======= ======= ======
Total Liabilities and
Stockholders' Equity $3,681 $167 $1,650
======= ======= ======
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF INCOME
Six months ended June 30, 2000
And Years ended December 31, 1999 and 1998
<CAPTION>
May 17, 1996
(inception) to
June 30, December 31, December 31, June 30,
2000 1999 1998 2000
-------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Revenues (Note 4) $0 $0 $0 $0
Cost of Revenue 0 0 0 0
--- --- --- ---
Gross Profit $0 $0 $0 $0
Operating,general
and administrative
expenses 2,416 1,983 630 5,394
------ ------ ----- ------
Operating (loss) $(2,416) $(1,983) $(630) $(5,394)
Non-operating
income (expense) 0 0 0 0
-------- --------- -------- ---------
Net (loss) $(2,416) $(1,983) $(630) $(5,394)
======== ========= ======== =========
Net (loss) per
share (Note 2) $(0.0010) $(0.0022) $(0.2778) $(0.0104)
========= ========== ========= =========
Average Number of
Shares of Common
Stock Outstanding 2,429,104 918,393 2,268 517,823
========= ======= ===== =======
</TABLE>
See accompanying Notes to Financial Statements.
< MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF STOCKHOLDERS EQUITY
Six months ended June 30, 2000
And Years ended December 31, 1999 and 1998
[CAPTION]
<TABLE>
Accumulated
(Deficit)
Additional During
Common Stock Paid-In Development
Shares Amount Capital Stage
------- ------ ---------- -----------
<S> <C> <C> <C> <C>
Sale of 2,000, shares
May 17, 1996 2,000 $2 $1,998 $0
Net (loss),
December 31, 1996 (280)
------ ----- -------- -----
Balance at
December 31, 1996 2,000 $2 $1,998 $(280)
Net (loss)
December 31, 1997 (85)
------ ----- -------- ------
Balance at
December 31, 1997 2,000 $2 $1,998 $(365)
Director Compensation 425 0 425
Net (loss)
December 31, 1998 (360)
------ ----- -------- ------
Balance at
December 31, 1998 2,425 $2 $2,423 $(995)
August 15, 1999,
thousand for one
stock split 2,422,575 2,423 (2,423)
Sale of stock,
December 16,1999 500 1 499
Net (loss)
December 31, 1999 (1,983)
-------- ----- -------- --------
Balance at
December 31, 1999 2,425,500 $2,426 $499 $(2,978)
Sale of stock
March 9, 2000 500 0 500
Sale of Stock
March 31, 2000 5,000 5 4,995
Net (loss)
June 30, 2000 (2,416)
-------- ------- -------- ---------
Balance at
June 30, 2000 2,431,000 $2,431 $5,994 $(5,394)
========= ======= ======== =========
</TABLE>
See accompanying Notes to Financial Statements.
MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
Six months ended June 30, 2000
And Years ended December 31, 1999 and 1998
[CAPTION]
<TABLE>
May 17, 1996
(inception) to
June 30, December 31, December 31, June 30,
2000 1999 1998 2000
-------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Cash Flows from
Operating Activities
Cash received
from customers $0 $0 $0 $0
Cash paid to
suppliers and vendors (1,986) (1,983) (350) (4,319)
------- ------- ----- -------
Net cash (used in)
operating activities $(1,986) $(1,983) $(350) $(4,319)
-------- -------- ------ --------
Cash Flows from
Investing Activities
Capital expenditures $0 $0 $0 $0
Issuance of
Common Stock 5,500 500 0 8,000
-------- ---------- ------- ----------
Net Cash provided
by
investing activities $5,000 $500 $0 $8,000
-------- ----------- ------- -----------
Cash Flows from
Financing Activities
Proceeds from
notes payable $0 $0 $0 $0
Principal payments
on notes payable 0 0 0 0
----- ----- ------ -----
Net cash (used in)
financing activities $0 $0 $0 $0
----- ----- ------- -----
Net increase
(decrease)
in cash and
cash equivalents $3,514 $(1,483) $(350) $3,681
Cash and cash
equivalents at
beginning of year 167 1,650 2,000 0
------- --------- ------- -------
cash and cash
eqivalents at
end of year $3,681 $167 $1,650 $3,681
======= ========= ======= =======
</TABLE>
See accompanying Notes to Financial Statements.
MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
Six months ended June 30, 2000
And Years ended December 31, 1999 and 1998
[CAPTION]
<TABLE>
May 17, 1996
(inception) to
June 30, December 31, December 31, June 30,
2000 1999 1998 2000
-------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Reconciliation of
Net Loss to Net Cash
(Used In)
Operating Activities
Net (loss) $(2,416) $(1,983) $(630) $(5,394)
Adjustments to
reconcile net (loss)
to cash (used in)
operating activities:
Director Stock
Compensation 0 0 425 425
Change in assets
and liabilities
(Increase) decrease
in accounts receivable 0 0 0 0
Increase (decrease)
in accounts payable 430 0 (145) 650
----- ------ ------- ------
Net cash (used in)
operating activities $(1,986) $(1,983) $(350) $(4,319)
======== ======== ======= ========
Supplemental schedule
of non-cash
investing and financing
activities
Issue common stock
to directors $0 $0 $425 $425
======= ======= ======= =======
</TABLE>
See accompanying Notes to Financial Statements.
MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 December 31, 1999 and 1998
Note 1. Nature of Business and Significant Accounting Policies
Nature of Business:
Multinet International Corporation, Inc. ("the Company") was organized May 17,
1996 under the laws of the State of Nevada. The Company was formed to provide
experienced management to companies through management to companies through
management contracts or through merger or acquisition. The Company currently
has no operations and, in accordance with Statement of Financial Accounting
Standard ( SFAS ) No. 7, "Accounting and Reporting by Development Stage
Enterprises," is considered a development stage company.
A summary of the Company's significant accounting policies is as follows:
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles 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 revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Cash
For the Statements of Cash Flows, all highly liquid investments with maturity
of three months of less are considered to be cash equivalents. There were no
cash equivalents as of June 30, 2000, December 31, 1999, and December 31, 1998.
Income Taxes
Deferred taxes are provided on a liability method whereby deferred tax assets
are recognized for deductible temporary differences and operating loss and tax
credit carryforwards and deferred tax liabilities are recognized for taxable
temporary differences. Temporary differences are the differences between the
reported amounts of assets and liabilities and their tax basis. Deferred tax
assets are reduced by a valuation allowance when, in the opinion of management,
it is more likely than not that some portion or all of the deferred tax assets
will not be realized. Deferred tax assets and liabilities are adjusted for
the effect of changes in tax laws and rates on the date of enactment.
Due to the inherent uncertainty in forecasts of future events and operating
results, the Company has provided for a valuation allowance in an amount equal
to gross deferred tax assets resulting in no net deferred tax assets at June
30, 2000, December 31, 1999 and 1998.
MULTINET INTERNATIONAL CORPORATION, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 December 31, 1999 and 1998
Note 2. Stockholders' Equity
Common Stock
The authorized common stock of the Company consists of 25,000,000 shares with
par value of $0.001. On May 17, 1996, the Company authorized and issued 2,000
shares for $2,000. On May 15, 1998 the Company issued 425 shares, valued at
$1.00 per share to directors for services rendered. On August 15, 2000, the
Company's shareholders approved a thousand for one stock split of the existing
shares. In December 1999, the Company issued 500 shares at $1.00 per share.
In March 2000, the Company issued 5,500 shares at $ 1.00 per share.
The Company has not authorized any preferred stock.
Net loss per common share
Net loss per share is calculated in accordance with SFAS No. 128, "Earnings
Per Share." The weighted - average number of shares outstanding during each
period is used to compute basic loss per share. Diluted loss per share is
computed using the weighted averaged number of shares and dilutive potential
common shares outstanding. Dilutive potential common shares are additional
common shares assumed to be exercised.
Basic net loss per common share is based on the weighted average number of
shares of common stock outstanding of 2,429,104 during 2000, 918,393 during
1999, 2,268during 1998, and 517,823 since inception. As of June 30, 2000 and
December 31, 1999, and 1998, the Company had no dilutitive potential common
shares.
Note 3. Related Party Transactions
During the formation and development of the Company, Shogun ("Shogun")
Investment Group, Ltd. A related party through common ownership and management,
paid for certain filings and expenses. Included in accounts payable and
accrued liabilities as of the end of June 30, 2000, December 31, 1999 and 1998,
the Company owed Shogun $305, $220, and $220, respectively, related to these
advances. On June 15, 2000, the Company signed a definitive agreement to be
acquired by Multinet International, Inc., a Company related through common
ownership.
Note 4. Going Concern
The Company's financial statements are prepared in accordance with generally
accepted accounting principles applicable to a going concern. This
contemplates the realization of assets and the liquidation of liabilities in
the normal course of business. Currently, the Company has no operations or
source of revenue. On June 15, 2000, the Company signed a definitive
agreement to acquire Nikky D. Corporation, effective July 1, 2000. Nikky D.
Corporation, through a management contract with a Company affiliated through
common ownership and management, manages a convenience store in the Phoenix,
Arizona area. Revenues are provided for by a management agreement with the
convenience store. The business plan contemplates a private placement or
merger with a larger operating enterprise to increase its revenue base.
Without the realization of additional capital through a merger of sale of
securities, it would be unlikely for the Company to continue as a going concern.
NIKKY D. CORPORATION
FINANCIAL REPORTS
JUNE 30, 2000
DECEMBER 31, 1999
DECEMBER 31, 1998
NIKKY D. CORPORATION
CONTENTS
<TABLE>
<S> <C>
INDEPENDENT AUDITOR'S REPORT ON THE
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . .1
FINANCIAL STATEMENTS
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . ..2
Statements of Income. . . . . . . . . . . . . . . . . . . . .3
Statements of retained Earnings (Deficit). . . . . . . . . . 3
Statements of Cash Flows . . . . . . . . . . . . . . . . . . 4-5
Notes to Financial Statements . . . . . . . . . . . . . . . .6-8
Independent Auditor's Report
To the Board of Directors
NIKKY D. CORPORATION
Las Vegas, Nevada
I have audited the accompanying balance sheet of NIKKY D. Corporation, Inc.
as of June 30, 2000 and the related statements of income, retained earnings,
and cash flows for the six months then ended. I have also audited the
accompanying balance sheets as of December 31, 1999 and 1998 and the related
statements of income, retained earnings ( deficit ), and cash flows for the
years then ended. These financial statements are the responsibility of the
Company's management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimated made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a reasonable basis
for my opinion.
In my opinion, the financial statements referred to above present fairly, in
all material respects the financial position of NIKKY D. Corporation,
as of June 30, 2000 and the results of its operations and cash flows for
the six months then ended, in conformity with generally accepted
accounting principles. The financial statements referred to above present
fairly, in all material respects, the financial position of NIKKY D.
CORPORATION as of December 31, 1999 and 1998 and the results of its
operations and cash flows for each of the years then ended, in conformity with
generally accepted accounting principles.
/s/
Kyle L. Tingle
Certified Public Accountant
July 10, 2000
</TABLE>
<TABLE>
NIKKY D. CORPORATION
BALANCE SHEETS
June 30, 2000 and December 31, 1999 and 1998
<CAPTION>
June 30, December 31, December 31,
2000 1999 1998
-------- ------------ ------------
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash $996 $2,117 $3,856
Prepaid Expenses 1,159 159 0
------ ----- -------
Total current assets $2,155 $2,276 $3,856
====== ===== =======
Total assets $2,155 $2,276 $3,856
====== ===== =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and
accrued expenses $730 $480 $0
Federal and state income tax
payable 0 0 676
----- ----- -----
Total current liabilities $730 $480 $676
Long Term debt 0 0 0
----- ----- -----
Total liabilities $730 $480 $676
===== ===== =====
STOCKHOLDERS' EQUITY
Common stock: $.001 par value;
authorized 50,000,000 shares;
issued and outstanding
2,000,000 $2,000 $2,000 $2,000
Retained earnings (deficit) (575) (204) 1,180
------- ------- ------
Total Stockholders' Equity $1,425 $1,796 $3,180
======= ======= ======
Total Liabilities and
Stockholders' Equity $2,155 $2,276 $3,856
======= ======= ======
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
NIKKY D. CORPORATION
STATEMENTS OF INCOME
Six months ended June 30, 2000
And Years ended December 31, 1999 and 1998
<CAPTION>
June 30, December 31, December 31,
2000 1999 1998
-------- ------------ ------------
<S> <C> <C> <C>
Revenues (Note 3) $75,762 $133,394 $78,000
Operating,general
and administrative
expenses
Salaries and
payroll taxes
(Note 3) $59,027 $88,083 $0
Management fees 10,650 25,692 51,179
Other operating
expenses 6,456 21,003 29,093
------ ------ -----
Operating,
general and
administrative
expenses $76,133 $134,778 $80,272
-------- -------- -------
Operating (loss) $(371) $(1,384) $(2,272)
Non-operating
income (expense)
Interest expense 0 0 0
-------- --------- --------
Net (loss)
before income
taxes $(371) $(1,384) $(2,272)
Federal and state
income taxes 0 0 676
-------- --------- ---------
Net (loss) $(371) $(1,384) $(2,948)
======== ========= =========
Net (loss) per
share (Note 2) $(0.0002) $(0.0007) $(0.0015)
========= ========== =========
Average Number of
Shares of Common
Stock Outstanding 2,000,000 2,000,000 2,000,000
========= ========= =========
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
NIKKY D. CORPORATION
STATEMENTS OF RETAINED EARNINGS (DEFICIT)
Six months ended June 30, 2000
And Years ended December 31, 1999 and 1998
<CAPTION>
June 30, December 31, December 31,
2000 1999 1998
------- ------------ ----------
<S> <C> <C> <C>
Balance, beginning $(204) $1,180 $4,128
Deduct net (loss) (371) (1,384) (2,948)
-------- ------- ---------
Balance, ending $(575) $(204) $1,180
========= ======= =========
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
NIKKY D. CORPORATION
STATEMENTS OF CASH FLOWS
Six months ended June 30, 2000
And Years ended December 31, 1999 and 1998
<CAPTION>
June 30, December 31, December 31,
2000 1999 1998
-------- ------------ ------------
<S> <C> <C> <C>
Cash Flows from
Operating Activities
Cash received
from customers $75,762 $133,394 $78,000
Cash paid to
suppliers and vendors (76,883) (135,133) (81,263)
------- --------- -------
Net cash (used in)
operating activities $(1,121) $(1,739) $(3,263)
-------- -------- --------
Cash Flows from
Investing Activities
Capital expenditures $0 $0 $0
Issuance of
Common Stock 0 0 0
-------- ---------- -------
Net Cash (used in)
investing activities $0 $0 $0
-------- ----------- -------
Cash Flows from
Financing Activities
Proceeds from
notes payable $0 $0 $0
Principal payments
on notes payable 0 0 0
----- ----- ------
Net cash (used in)
financing activities $0 $0 $0
----- ----- -------
Net (decrease)
in cash and
cash equivalents $(1,121) $(1,739) $(3,263)
Cash and cash
equivalents at
beginning of year 2,117 3,856 7,119
------- --------- -------
Cash and cash
eqivalents at
end of year $996 $2,117 $3,856
======= ========= =======
</TABLE>
See accompanying Notes to Financial Statements.
<TABLE>
NIKKY D. CORPORATION
STATEMENTS OF CASH FLOWS
Six months ended June 30, 2000
And Years ended December 31, 1999 and 1998
<CAPTION>
June 30, December 31, December 31,
2000 1999 1998
-------- ------------ ------------
<S> <C> <C> <C>
Reconciliation of
Net Loss to Net Cash
(Used In)
Operating Activities
Net (loss) $(371) $(1,384) $(2,948)
Adjustments to
reconcile net (loss)
to cash (used in)
operating activities:
Change in assets
and liabilities
(Increase) decrease
in accounts receivable $(1,000) $(159) 0
Increase (decrease)
in accounts payable 250 196 (315)
----- ------ -------
Net cash (used in)
operating activities $(1,121) $(1,739) $(3,263)
======== ======== ========
</TABLE>
See accompanying Notes to Financial Statements.
NIKKY D. CORPORATION
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 December 31, 1999 and 1998
Note 1. Nature of Business and Significant Accounting Policies
Nature of Business:
The Company's operations are principally in the business of providing
management services to other businesses, primarily in Sun City, Arizona. In
1999, the Company began provided payroll services in addition to the management
services.
A summary of the Company's significant accounting policies is as follows:
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles 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 revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Cash
For the Statements of Cash Flows, the Company considers all highly liquid debt
instruments purchased with a maturity of three months of less are considered
to be cash equivalents. There were no cash equivalents as of June 30, 2000,
December 31, 1999, and December 31, 1998.
Revenue Recognition
The Company reports income and expenses on the accural method of accounting
whereby income is recorded when it is earned and expenses are recorded when
they are incurred.
Deferred Income Taxes
The Company records income and computes certain deductions for income tax
purposes on a basis different from that used for financial reporting. For
income tax purposes the Company prepares it's income tax returns on the cash
method of accounting under which revenues are recognized when received and
costs are recognized when they are paid. Accordingly, the deferred income
taxes related to the timing difference have been recorded
Due to the inherent uncertainty in forecasts of future events and operating
results, the Company has provided for a valuation allowance in an amount equal
to gross deferred tax assets resulting in no net deferred tax assets at June
30, 2000, December 31, 1999 and 1998.
NIKKY D. CORPORATION
NOTES TO FINANCIAL STATEMENTS
June 30, 2000 December 31, 1999 and 1998
Note 2. Stockholders' Equity
Common Stock
The Secretary of State in Arizona has given the Company the authority to
issue 50,000,000 shares of $0.001 par value common stock. On June 17, 1994,
the Company issued 2,000,000 shares of $0.001 par value common stock to its
shareholders for $2,000.
The Company has not authorized any preferred stock.
Net loss per common share
Net loss per share is calculated in accordance with SFAS No. 128, "Earnings
Per Share." The weighted - average number of shares outstanding during each
period is used to compute basic loss per share. Diluted loss per share is
computed using the weighted averaged number of shares and dilutive potential
common shares outstanding. Dilutive potential common shares are additional
common shares assumed to be exercised.
Basic net loss per common share is based on the weighted average number of
shares of common stock outstanding of 2,000,000 during 2000, 1999, and 1998.
The Company had no dilutitive potential common shares at June 30, 2000 and at
December 31, 1999 and 1998.
Note 3. Related Parties and Major Customer
The Company has an agreement with Fernando's Mobil Service, a company affiliated
through common ownership, to provided managerial and payroll services. The
minimum monthly management fee required is $8,200. Included in revenue at
June 30, 2000, December 31, 1999 and 1998 is $75,762, $133,394, and $78,000,
respectively, related to these afreements.
Included in general and administarative expenses for th six months ended June
30, 2000 and the years ended December 31, 1999 and 1998 are salaries and
management fees paid to the officer-stockholders of the Company totaling
$23,650, $64,692, and $51,179, respectively.
Subsequent to the balance sheet dates, the Company entered into an agreement
with Multinet Inernational, Inc., a company affiliated through common ownership
to be acquired by Multinet International, Inc. There were no related party
transactions with Multinet International, Inc. during the audit periods.
Note 4. Income Tax Matters
The provision for the income tax expense at June 30, 2000 and at December 31,
1999 and 1998 is as follows:
<TABLE>
June 30, December 31, December 31,
2000 1999 1998
--------- ------------ ------------
<S> <C> <C> <C>
Federal income taxes
payable $0 $0 $441
State income taxes payable 0 0 235
--------- ------------- -------------
Federal and State Income
Tax Expense $0 $0 $676
========== ============== ==============
</TABLE>
Note 5. Concentration of Risk
Predominatly all of the Company's revenues are generated through a management
agreement with Fernando's Mobile Station, a company affiliated through common
ownership.
Note 6. Subsequent Events
On June 15, 2000, the Company signed a definitive agreement with Multinet
International, Inc., a company affiliated through common ownership. This
agreement, effective July 1, 2000, allows the Company to be acquired by
Multinet International, Inc.
Multinet International, Inc., in conformity with the requirements established
by the Securities and Exchange Commission, has filed a Form 15C2-11. The
business plan encompasses the operations of Nikky D. Corporation, together with
a private placement or business merger of a larger operating enterprise, to
ultimately increase its volume and revenue base.
