SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
[X] Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended June 30th, 2000
Commission File No.: 000-29107
MULTINET INTERNATIONAL CORPORATION, INC
(Exact name of registrant as it appears in its charter)
NEVADA 88-0441388
(State or jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
8100 West Sahara Ave, Suite 200, Las Vegas, NV 89129
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code: (702)-966-0600
Securities registered pursuant to Section 12 (b) of the Act: None
Securities registered pursuant to Section 12 (b) of the Act:
Class A Common Stock $0.001 Par Value
Indicate by check mark whether the registrant (1) has filed all reports to be
filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during
the preceding 12 months ( or 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 No
At the end of the quarter ending March 31, 2000 there were 2,431,000 issued
and outstanding shares of the registrants common stock.
There is no active market for the registrant's securities.
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Attached.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION.
NOTE REGARDING PROFECTIONS AND FORWARD LOOKING STATEMENTS.
This statement includes projections of future results and "forward-looking
statements" as that term is defined in Section 27A of the Securities Act of
1933 as amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are
included in this Registration Statement,other than statements of historical
fact, are forward-looking statements, Although Management believes that the
expectations reflected in these forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
Important factors that could cause actual results to differ materially from the
expectations are disclosed in this Statement, including, without limitation,
with those forward-looking statements contained in this Statement.
Plan of Operation-General
In June of this year, Multinet signed a letter of intent to merge with Nikky D.
Corporation, an Arizona company that engages in the management of independent
service stations or repair shops connected with the auto industry. A formal
agreement was signed in July.
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.
Currently, Nikky D. has a contract with one automobile service station and is
looking to expand. If additional income is necessary to continue the Company's
operations, management is in the position to extend the Company a line of
credit. At the present, the Company has no commitment for capital expenditures.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities
None
Item 3. Default Upon Senior Securities
None
Item 4. Submission of matters To a Vote of Security Holders
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K
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3.1 Articles of Incorporation. Incorporated
by Reference in form 10SB12G filing.
3.2 By Laws. Incorporated by Reference in
Form 10SB12G filing.
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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 thereunto duly authorized.
Multinet International Corporation, Inc.
Dated: August 21, 2000 By: /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
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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
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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 Liability and
Stockholders' Equity $3,681 $167 $1,650
======== ======== =======
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See accompanying Notes to Financial Statements.
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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
March 31, March 31, March 31,
2000 1999 2000
--------- --------- ---------------
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Revenues (Note 4) $0 $0 $0
Cost of revenue 0 0 0
---- ---- ----
Gross profit $0 $0 $0
Operating, general
and administrative
expenses 816 188 3,794
------- ------- -------
Operating (loss) $(816) $(188) $(3,794)
Nooperating income
(expense) 0 0 0
------- ------- --------
Net (loss) $(816) $(188) $(3,794)
======= ======= ========
Net (loss) per share
(Note 2) $(0.0003) $(0.0775) $(0.0096)
========= ========= =========
Average Number of Shares
of Common Stock Outstanding 2,427,209 2,425 394,698
========= ====== =======
</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
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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>
Accumulated
(Deficit)
Additional During
Common Stock Paid in Development
Shares Amount Capital Stage
------ ------ ---------- -----------
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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 (630)
------ ---- -------- --------
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 31, 1999 500 1 499
Net (Loss)
December 31, 1999 (1,983)
----- ------ ---------- ----------
Balance at
December 31, 1999 2,422,575 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.
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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>
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
-------- --------- ------- ----------
Cash Flows From
Financing Activities
Proceeds from
notes payable $0 $0 $0 $0
Principal paymanets
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 Equivalents at
end of year $3,681 $167 $1,650 $3,681
======== ========= ========== ===========
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See accompanying Notes to Financial Statements.
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MULTINET INTERNATIONAL CORPORATION, INC
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2000 and 1999
(Unaudited)
<CAPTION>
May 17, 1996
(inception) to
June 30, December 31, December 31, June 30,
2000 1999 1998 2000
-------- ------------ ----------- -----------
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Reconciliation of
Net Loss to Net Cash
(Used in)
Operating Activities $(2,416) $(1,983) $(630) $(5,394)
Net (Loss)
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 Finanacial 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, 2,268 during 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.
