SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
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[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period ended September 30, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number:
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slabsdirect.com, Inc.
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(Exact name of small business issuer as specified in its charter)
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Delaware 98-6218467
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(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
Suite 216, 2438 Marine Drive
West Vancouver, British Columbia Canada V7V 1L2
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (604) 913-1883
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: None
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 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.) Yes
[ ] No [x]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 9,999,600 shares of Common Stock
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PART I: FINANCIAL INFORMATION
To simplify the language in this document, slabsdirect.com, Inc. is referred to
as "We" or the "Company".
Item 1. Financial Statements
slabsdirect.com, Inc.
(a development stage enterprise)
Consolidated Financials Statements
September 30, 2000
(Unaudited)
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INDEPENDENT ACCOUNTANTS' REPORT
To the Board of Directors of
slabsdirect.com, Inc.
Vancouver, B.C., Canada
We have reviewed the accompanying consolidated balance sheet of slabsdirect.com,
Inc. as of September 30, 2000, the related consolidated statement of operations
for the initial period from date of incorporation January 14, 2000 to September
30, 2000 and the three month period ended September 30, 2000, and the related
consolidated statement of cash flows for the initial period from date of
incorporation January 14, 2000 to September 30, 2000. These financial statements
are the responsibility of the corporation's management.
We conducted our review 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 of 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, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to such financial statements for them to be in conformity with generally
accepted accounting principles.
"N.I. Cameron Inc."
Vancouver, B.C. CHARTERED ACCOUNTANTS
October 27, 2000
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slabsdirect.com, Inc.
(a development stage enterprise)
Consolidated Balance Sheet
September 30, 2000
(Unaudited)
(expressed in U.S. dollars)
<TABLE>
<CAPTION>
ASSETS
<S> <C>
CURRENT
Cash $ 2,985
Accounts receivable 1,056 $ 4,041
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 2,201
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STOCKHOLDERS' EQUITY
Share capital (Note 3)
Common stock - $0.0001 par value
30,000,000 authorized; 9,999,600 issued and outstanding 1,000
Preferred stock - $0.0001 par value
5,000,000 authorized --
Additional paid-in capital 24,746
Deficit accumulated in the development stage (23,906)
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1,840
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$ 4,041
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
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slabsdirect.com, Inc.
(a development stage enterprise)
Consolidated Statement of Operations
For the Initial Period from date of
Incorporation January 14, 2000 to September 30, 2000 and
the Three-month Period Ended September 30, 2000
(Unaudited)
(expressed in U.S. dollars)
Initial Period From
January 14, 2000
Three Months Ended (date of incorporation) to
September 30, 2000 September 30, 2000
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OPERATING EXPENSES
Management fees $ 2,024 $ 6,117
Professional fees 127 5,729
Office and miscellaneous 1,727 5,022
Consulting fees -- 5,000
Development costs -- 2,038
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LOSS FROM OPERATIONS $ (3,878) $(23,906)
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The accompanying notes are an integral part of these financial statements.
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slabsdirect.com, Inc.
(a development stage enterprise)
Consolidated Statement of Cash Flows
For the Initial Period from date of
Incorporation January 14, 2000 to September 30, 2000
(Unaudited)
(expressed in U.S. dollars)
OPERATING ACTIVITIES
Loss for the period $(23,906)
Add (Deduct): Changes in operating assets and liabilities
Accounts receivable (1,056)
Accounts payable and accrued liabilities 2,201
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Net cash used in operating activities (22,761)
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FINANCING ACTIVITIES
Issuance of share capital 25,746
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Net cash provided by financing activities 25,746
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NET CHANGE IN CASH DURING THE PERIOD AND $ 2,985
CASH AT END OF PERIOD ========
The accompanying notes are an integral part of these financial statements.
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slabsdirect.com, Inc.
(a development stage enterprise)
Notes to Consolidated Financial Statements
September 30, 2000
(Unaudited)
1. FORMATION AND BUSINESS OF THE COMPANY
slabsdirect.com, Inc. (the "Company") was incorporated in Delaware, U.S.A.
on January 14, 2000.
The Company is a development stage enterprise and its purpose is to
establish a vertical trade portal on the Internet for the natural stone
industry. The Company intends to provide a platform for users to research,
source, contact and purchase natural stone products and services.
These financial statements include the accounts of the Company and its
wholly-owned subsidiary slabsdirect.com Online (B.C.) Ltd. (the
"Subsidiary"). The Subsidiary was incorporated in the Province of British
Columbia, Canada on January 25, 2000.
Going concern
The accompanying consolidated financial statements have been presented
assuming the Company will continue as a going concern. At September 30,
2000, the Company had accumulated $23,906 in losses and had no material
revenue producing operations. At the date of this report, the Company's
ability to continue as a going concern is dependent upon its ability to
raise additional capital.
2. SIGNIFICANT ACCOUNTING POLICIES
Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements
and accompanying notes. Actual results could differ from these estimates.
Income taxes
The Company uses the liability method of accounting for income taxes. Under
this method, deferred tax assets and liabilities are determined based on
the difference between financial statement and tax bases of assets and
liabilities and are measured using the enacted tax rates and laws that are
expected to be in effect when the differences are expected to reverse.
Deferred tax assets are reduced by a valuation allowance in respect of
amounts considered by management to be less likely than not of realization
in future periods.
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slabsdirect.com, Inc.
(a development stage enterprise)
Notes to Consolidated Financial Statements
September 30, 2000
(Unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (cont'd)
Foreign currency translation
Unless otherwise stated, all amounts are in United States dollars. The
functional currency of the Subsidiary is the Canadian dollar. Hence, all
asset and liability amounts have been translated using the exchange rate as
at September 30, 2000 and all expenses have been translated using the
average exchange rate for the period. The rates used were as follows:
(equivalent Cdn $ per U.S. $)
September 30, 2000 rate .6651
Average rate for the three-month period .6724
3. SHARE CAPITAL
Holders of the common stock are entitled to one vote per share and share
equally in any dividends declared and distributions on liquidation.
4. RELATED PARTY TRANSACTIONS
During the period from date of incorporation, the Company paid management
fees of $6,117 and office expenses of $3,129 to a stockholder of the
Company. These transactions have been recorded using the exchange amount.
5. FINANCIAL INSTRUMENTS AND CONCENTRATIONS OF CREDIT RISK
The Company's financial instruments consist of cash, accounts receivable
and accounts payable. It is management's opinion that the Company is not
exposed to significant interest, currency or credit risks arising from
these financial instruments. The fair value of these financial instruments
approximate their carrying values.
Item 2. Management's Discussion and Analysis or Plan of Operations
Our plan of business is to establish our vertical trade portal by
raising capital of $500,000 through the sale of equity securities via a private
placement. We will budget $100,000 for development of our Website (including
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$50,000 for content materials and licenses), $30,000 for one marketing manager
to handle advertising and sponsor revenues, $20,000 for one office staff
assistant, $100,000 for purchase of computers and fixed assets, $200,000 for
advertising, and $50,000 for rent and other operating expenses. The cornerstone
of our plan is the development of an online auction marketplace for natural
stone products, equipment and related items. The auction marketplace will host
auctions of these products by registered members over the Internet. Related
services provided to members are planned to include credit verification,
delivery scheduling, inspection services and payment settlement.
We have made progress in implementing our business plan by setting up a
beta Website - www.slabsdirect.com. We will only be able to continue to advance
our business plan after we receive capital funding through the sale of equity
securities. After raising capital, we intend to hire employees, rent commercial
office space in Vancouver, British Columbia, purchase furniture and equipment,
continue development of our Website operations and establish commercial
relationships with natural stone producers, distributors and content providers.
We intend to use our equity capital to fund our business plan during the next
twelve months as cash flow is not estimated to begin until year two of our
business plan. We will face considerable risk in each of our business plan
steps, such as difficulty of hiring competent personnel within our budget,
longer than anticipated Website programming requirements, and a shortfall of
funding due to our inability to raise capital in the equity securities market.
If no funding is received during the next twelve months, the Company will be
forced to rely on its existing cash in the bank and funds loaned by management.
Our officers and directors have no formal commitments or arrangements to advance
or loan funds to us. In such a restricted cash flow scenario, we would be unable
to complete our business plan steps, and would, instead, delay all cash
intensive activities. Without necessary cash flow, we may be dormant during the
next twelve months, or until such time as necessary funds could be raised in the
equity securities market.
There are no current plans for additional product research and
development. We plan to purchase approximately $150,000 in furniture, computers,
software, Internet content materials and related licenses during the next twelve
months from proceeds of our equity security sales. Our business plan provides
for an increase to 2 employees during the next twelve months.
There are currently no arrangements which would result in a change of
control of the Company.
During the period ended September 30, 2000 we incurred general and
administrative expenses of $21,868, all of which were related to preparation of
our audited financial statements for the period ended April 30, 2000, the filing
of our Form 10-SB with the Securities and Exchange Commission and development of
our website. Operating capital to pay for these expenses was funded by a private
placement of our common stock to non-affiliates of the Company. We have no
significant working capital.
This report contains certain forward-looking statements. The Company
wishes to advise readers that actual results may differ substantially from such
forward-looking statements. Forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those
expressed in or implied by the statements, including, but not limited to, the
following: the ability of the Company to search for appropriate business
opportunities and subsequently acquire or merge with such entity, to meet its
cash and working capital needs, the ability of the Company to maintain its
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existence as a viable entity, and other risks detailed in the Company's periodic
report filings with the Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
this Form 10-QSB Report for the Quarterly Period 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.
November 3, 2000
SLABSDIRECT.COM, INC.
A Delaware Corporation
/s/ Steven J. Bruk
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By: Steven J. Bruk
Title: President
Date: 11/3/00
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