Document is copied.
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1O-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter ended September 30, 2000
GimmeaBid.com, Inc.
(Exact name of registrant as specified in its charter)
Delaware 8400 91-2028529
(State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer
incorporation or organization) Classification Code Number) Identification
No.)
174-G World Trade Center
2050 Stemmons Freeway
P. O. Box 420132
Dallas, Texas 75342
(214)752-6070
(Address, including zip code, and telephone number,
including area code, of Registrant's
principal executive offices)
J. Michael Wood
GimmeaBid.com, Inc.
2050 Stemmons Freeway
P. O. Box 420132
Dallas, Texas 75342
(214)752-6070
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
Indicate by check mark whether the registrant (1) has
filed all reports required 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 at least the past: 90 days.
Yes _X_ No ___
The number of shares outstanding of each of the
Registrant's classes of common equity, as of
September 30, 2000, are as follows:
Class of Securities Shares Outstanding
------------------- ------------------
Common Stock, no par value 7,602,520
<PAGE>
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis or Plan of
Operation.....................................................
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
September 30, 2000 and December 31, 1999
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------- ------------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 28,821 $ 545
Prepaid expenses 4,171 2,881
------------------ -----------------
Total Current Assets 32,992 3,426
------------------ -----------------
PROPERTY AND EQUIPMENT, NET (Note 2) 1,205,626 4,419
------------------ -----------------
TOTAL ASSETS $ 1,238,618 $ 7,845
================== =================
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
CURRENT LIABILITIES
Accounts payable $ 35,235 $ 47,070
Accrued expenses 73,967 63,464
------------------ -----------------
Total Current Liabilities 109,202 110,534
------------------ -----------------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $0.001 par value: 10,000,000 shares
authorized, 7,602,520 and 7,269,915 shares issued
and outstanding, respectively 7,603 7,270
Capital in excess of par value 5,551,065 3,888,372
Deficit accumulated prior to January 1, 1993 (716,629) (716,629)
Deficit accumulated during the development stage
(from January 1, 1993) (3,712,623) (3,281,702)
------------------ -----------------
Total Stockholders' Equity (Deficit) 1,129,416 (102,689)
------------------ -----------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 1,238,618 $ 7,845
================== =================
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
From
Inception of
Development
Stage on
For the For the January 1,
Three Months Ended Nine Months Ended 1993 Through
September 30, September 30, September 30.
2000 1999 2000 1999 2000
-------------- --------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
REVENUE $ - $ - $ - $ - $ -
EXPENSES
General and administrative 88,018 30,054 428,667 1,415,897 1,924,913
Depreciation 1,218 - 1,584 - 2,019
-------------- --------------- --------------- ---------------- ---------------
Total Expenses 89,236 30,054 430,251 1,415,897 1,926,932
-------------- --------------- --------------- ---------------- ---------------
LOSS FROM CONTINUING
OPERATIONS (89,236) (30,054) (430,251) (1,415,897) (1,926,932)
-------------- --------------- --------------- ---------------- ---------------
LOSS ON DISCONTINUED
OPERATIONS - - - - (1,774,612)
-------------- --------------- --------------- ---------------- ---------------
OTHER INCOME (EXPENSE)
Interest expense - - (2,552) (2,600) (12,964)
Interest income 1,123 - 1,882 4 1,887
-------------- --------------- --------------- ---------------- ---------------
Total Other Income (Expense) 1,123 - (670) (2,596) (11,077)
-------------- --------------- --------------- ---------------- ---------------
NET LOSS $ (88,113) $ (30,054) $ (430,921) $ (1,418,493) $ (3,712,621)
============== =============== =============== ================ ===============
BASIC LOSS PER COMMON SHARE $ (0.01) $ (0.00) $ (0.05) $ (0.19)
============== =============== =============== ================
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Statements of Stockholders Equity (Deficit)
<TABLE>
<CAPTION>
Deficit
Accumulated
Capital in During the
Common Stock Excess of Development
Shares Amount Par Value Stage
------ ------ ---------- -----------
<S> <C> <C> <C> <C>
Balance at inception of
development stage on
January 1, 1993 722,167 $ 722 $ 2,251,680 $ (716,629)
Common stock issued for
services at $0.58 per share 253,868 254 146,990 -
Net loss for the year ended
December 31, 1993 - - - (1,740,571)
--------------- ------------------ ------------------ -----------------
Balance, December 31, 1993 976,035 976 2,398,670 (2,457,200)
Net loss for the year ended
December 31, 1994 - - - (1,289)
--------------- ------------------ ------------------ -----------------
Balance, December 31, 1994 976,035 976 2,398,670 (2,458,489)
Net loss for the year ended
December 31, 1995 - - - (6,594)
--------------- ------------------ ------------------ -----------------
Balance, December 31, 1995 976,035 976 2,398,670 (2,465,083)
Net loss for the year ended
December 31, 1996 - - - (7,381)
--------------- ------------------ ------------------ -----------------
Balance, December 31, 1996 976,035 976 2,398,670 (2,472,464)
Net loss for the year ended
December 31, 1997 - - - (9,373)
--------------- ------------------ ------------------ -----------------
Balance, December 31, 1997 976,035 976 2,398,670 (2,481,837)
Net loss for the year ended
December 31, 1998 - - - (9,404)
--------------- ------------------ ------------------ -----------------
Balance, December 31, 1998 976,035 $ 976 $ 2,398,670 $ (2,491,241)
--------------- ------------------ ------------------ -----------------
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Statements of Stockholders Equity (Deficit) (Continued)
<TABLE>
<CAPTION>
Deficit
Accumulated
Capital in During the
Common Stock Excess of Development
Shares Amount Par Value Stage
------ ------ ---------- -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1998 976,035 $ 976 $ 2,398,670 $ (2,491,241)
Common stock issued for
services at $0.22 per share,
January 2, 1999 6,173,400 6,173 1,335,923 -
Common stock issued for
cash at $0.21 per share,
January 2, 1999 72,000 72 14,928 -
Common stock issued for
cash at $0.25 per share,
January 2, 1999 20,000 20 4,980 -
Common shares issued for debt
at $0.50 per share, January 8,
1999 1,736 2 866 -
Common shares issued for
services at $5.00 per share,
March 10, 1999 1,000 1 4,999 -
Common shares issued for
equipment at $5.00 per share,
March 18, 1999 290 1 1,449 -
Common shares issued for
services at $5.00 per share,
March 20, 1999 1,170 1 5,849 -
Common shares issued for
cash at $5.00 per share,
April 7, 1999 300 1 1,499 -
Common shares issued for
cash at $5.00 per share,
April 29, 1999 3,000 3 14,997 -
Common shares issued for
cash at $5.00 per share,
May 15, 1999 200 - 1,000 -
Common shares issued for
services at $5.00 per share,
September 5, 1999 4,000 4 19,996 -
Common shares issued for
cash at $5.00 per share,
September 9, 1999 1,600 2 7,998 -
Common shares issued for
cash at $5.00 per share,
September 16, 1999 1,500 2 7,498 -
--------------- ------------------ ------------------ -----------------
Balance forward 7,256,231 $ 7,258 $ 3,820,652 $ (2,491,241)
--------------- ------------------ ------------------ -----------------
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Statements of Stockholders Equity (Deficit) (Continued)
<TABLE>
<CAPTION>
Deficit
Accumulated
Capital in During the
Common Stock Excess of Development
Shares Amount Par Value Stage
------ ------ ---------- -----------
<S> <C> <C> <C> <C>
Balance forward 7,256,231 $ 7,258 $ 3,820,652 $ (2,491,241)
Common shares issued for
cash at $5.00 per share,
September 24, 1999 1,000 1 4,999 -
Common shares issued for
services at $5.00 per share,
September 24, 1999 340 - 1,700 -
Common shares issued for
cash at $5.00 per share,
September 27, 1999 400 - 2,000 -
Common shares issued for
cash at $5.00 per share,
September 29, 1999 1,000 1 4,999 -
Common shares issued for
cash at $5.00 per share,
October 1, 1999 1,000 1 4,999 -
Common shares issued for
cash at $5.00 per share,
October 4, 1999 1,000 1 4,999 -
Common shares issued for
cash at $5.00 per share,
October 12, 1999 3,400 3 16,997 -
Common shares issued for
cash at $5.00 per share,
October 18, 1999 1,000 1 4,999 -
Common shares issued for
cash at $5.00 per share,
October 20, 1999 1,000 1 4,999 -
Common shares issued for
services at $5.00 per share,
October 22, 1999 1,000 1 4,999 -
Common shares issued for
debt/services at $0.50 per
share, October 27, 1999 1,264 1 631 -
Common shares issued for
services at $5.00 per share,
October 30, 1999 1,280 1 6,399 -
Capitalization contribution,
November 12, 1999 - - 5,000 -
Net loss for the year ended
December 31, 1999 - - - (1,507,090)
--------------- ------------------ ------------------ -----------------
Balance, December 31, 1999 7,269,915 $ 7,270 $ 3,888,372 $ (3,998,331)
--------------- ------------------ ------------------ -----------------
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Statements of Stockholders Equity (Deficit) (Continued)
<TABLE>
<CAPTION>
Deficit
Accumulated
Capital in During the
Common Stock Excess of Development
Shares Amount Par Value Stage
------ ------ ---------- -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1999 7,269,915 $ 7,270 $ 3,888,372 $ (3,998,331)
Common shares issued for
cash at $5.00 per share,
January 12, 2000 (unaudited) 2,300 2 11,498 -
Common shares issued for
services at $5.00 per share,
January 12, 2000 (unaudited) 17,700 18 88,482 -
Common shares issued for
assets at $5.00 per share,
January 12, 2000 (unaudited) 100 - 500 -
Common shares issued for
software at $5.00 per share,
January 15, 2000 (unaudited) 200,000 200 999,800 -
Common shares issued for
software at $5.00 per share,
January 15, 2000 (unaudited) 8,000 8 39,992 -
Common shares issued for
cash at $5.00 per share,
January 15, 2000 (unaudited) 20,000 20 99,980 -
Common shares issued for
cash at $5.00 per share,
March 19, 2000 (unaudited) 8,700 9 43,491 -
Common shares issued for
services at $5.00 per share,
March 19, 2000 (unaudited) 10,000 10 49,990 -
Common shares issued for
software at $5.00 per share,
March 19, 2000 (unaudited) 1,000 1 4,999 -
Common shares issued
for cash at $5.00 per share,
March 19, 2000 (unaudited) 15,500 15 77,485 -
Common shares issued for
prepaid expenses at $5.00
per share, March 19, 2000
(unaudited) 2,000 2 9,998 -
--------------- ------------------ ------------------ -----------------
Balance Forward 7,555,215 $ 7,555 $ 5,314,587 $ (3,998,331)
--------------- ------------------ ------------------ -----------------
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Statements of Stockholders Equity (Deficit) (Continued)
<TABLE>
<CAPTION>
Deficit
Accumulated
Capital in During the
Common Stock Excess of Development
Shares Amount Par Value Stage
------ ------ ---------- -----------
<S> <C> <C> <C> <C>
Balance Forward 7,555,215 $ 7,555 $ 5,314,587 $ (3,998,331)
Common shares issued for
cash at $5.00 per share,
March 29, 2000 (unaudited) 7,000 7 34,993 -
Common shares issued for
cash at $5.00 per share,
March 30, 2000 (unaudited) 2,000 2 9,998 -
Common shares issued for
cash at $5.00 per share,
April 18, 2000 (unaudited) 8,500 9 42,492 -
Common shares issued for
services at $5.00 per share,
April 20, 2000 (unaudited) 5,000 5 24,995 -
Common shares issued for
cash at $5.00 per share,
April 20, 2000 (unaudited) 6,460 6 32,294 -
Common shares issued for
services at $5.00 per share,
April 20, 2000 (unaudited) 2,970 3 14,847 -
Common shares issued for
cash at $5.00 per share,
April 27, 2000 (unaudited) 12,600 13 62,987 -
Common stock issued for
services at $5.00 per share,
April 27, 2000 (unaudited) 2,775 3 13,872 -
Net loss for the nine months
ended September 30, 2000
(unaudited) - - - (430,921)
--------------- ------------------ ------------------ -----------------
Balance, September 30, 2000
(unaudited) 7,602,520 $ 7,603 $ 5,551,065 $ (4,429,252)
=============== ================== ================== =================
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
From
Inception of
Development
Stage on
For the For the January 1,
Three Months Ended Nine Months Ended 1993 Through
September 30, September 30, September 30.
2000 1999 2000 1999 2000
-------------- --------------- -------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $ (88,113) $ (30,054) $ (430,921) $ (1,418,493) $ (3,712,621)
Adjustments to reconcile net loss
to net cash used by operating
activities:
Common stock issued for services - - 192,225 1,347,947 1,725,782
Loss on disposition of assets - - - - 1,535,773
Depreciation expense 1,218 - 1,586 - 2,019
Changes in operating assets and liabilities:
(Increase) in advances to related parties - (4,915) - (18,801) -
Decrease in prepaid expense - 500 8,710 969 10,829
Increase (decrease) in cash overdraft - (5,000) - - -
Increase (decrease) in accounts
payable and accrued expenses (777) (209) (1,335) 3,592 110,432
------------- --------------- -------------- --------------- ---------------
Net Cash Used by Operating Activities (87,672) (39,678) (229,735) (84,786) (327,786)
------------- --------------- -------------- --------------- ---------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of fixed assets (2,045) (99) (7,461) (2,491) (10,865)
Purchase of software - - (149,830) - (149,830)
------------- --------------- -------------- --------------- ---------------
Net Cash Used by Investing Activities (2,045) (99) (157,291) (2,491) (160,695)
------------- --------------- -------------- --------------- ---------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Common stock issued for cash - 49,200 415,301 96,706 517,301
------------- --------------- -------------- --------------- ---------------
Net Cash Provided by Financing
Activities - 49,200 415,301 96,706 517,301
------------- --------------- -------------- --------------- ---------------
INCREASE IN CASH AND CASH
EQUIVALENTS (89,717) 9,423 28,275 9,429 28,820
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 118,537 6 545 - -
------------- --------------- -------------- --------------- ---------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 28,820 $ 9,429 $ 28,820 $ 9,429 $ 28,820
============= =============== ============== =============== ===============
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Statements of Cash Flows (Continued)
(Unaudited)
<TABLE>
<CAPTION>
From
Inception of
Development
Stage on
For the For the January 1,
Three Months Ended Nine Months Ended 1993 Through
September 30, September 30, September 30.
2000 1999 2000 1999 2000
-------------- --------------- -------------- ---------------- ---------------
<S> <C> <C> <C> <C> <C>
Cash Paid For:
Interest $ - $ - $ - $ - $ -
Income taxes $ - $ - $ - $ - $ -
Non-Cash Financing Activities:
Issuance of common stock for services $ - $ - $ 192,225 $ 1,357,947 $ 1,725,782
Issuance of common stock for debt $ - $ - $ - $ 969 $ 1,233
Issuance of common stock for prepaid
expenses $ - $ - $ 10,000 $ 5,000 $ 15,000
Issuance of common stock for fixed assets $ - $ - $ 500 $ 1,450 $ 1,950
Issuance of common stock for software $ - $ - $ 1,045,000 $ - $ 1,045,000
</TABLE>
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Organization
Life Systems International, Inc. (the Company) was incorporated on
May 15, 1986 under the laws of the State of Delaware. On July 17,
1990, the Company changed its name to Mesquite Country, Inc. On
June 16, 1999, the Company changed its name to Gimmeabid.com, Inc.
The Company is considered a development stage enterprise whose
principal business activity will be to provide e-commerce services
to commercial enterprises, initially automobile dealers and parts
distributors.
The Company has not engaged in any business operations since 1992
and it was reclassified as a development stage company as of
January 1, 1993. The Company presently has only minimal assets.
b. Accounting Method
The Company's financial statements are prepared using the accrual
method of accounting. The Company has elected a calendar year end.
c. Cash Equivalents
The Company considers all highly liquid investments with a
maturity of three months or less when purchased to be cash
equivalents.
d. Property and Equipment
Property and equipment are recorded at cost. Major additions and
improvements are capitalized. The cost and related accumulated
depreciation of equipment retired or sold are removed from the
accounts and any differences between the undepreciated amount and
the proceeds from the sale are recorded as a gain or loss on sale
of equipment. Depreciation is computed using the straight-line
method over the estimated useful lives as follows:
Useful
Description Lives
----------- -----
Office equipment 5 to 7 years
Office furniture 7 years
The Company has contracted with various third parties to acquire
software developed by those parties to be used in the normal
course of its operations (See Note 3). When installed and
operational, this software will be amortized over a 5 year
period.
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
e. Income Taxes
No provision for income taxes has been accrued because the Company
has incurred losses from inception. The Company has elected a
December 31 year end and has a net operating loss carryover of
approximately $2,400,000 for tax purposes, which expires in 2020.
f. Basic Loss per Share
During the Company's fiscal year ended 1998, the Company
implemented Statement of Financial Accounting Standards ("SFAS")
No. 128, "Earnings Per Share." SFAS No. 128 provides for the
calculation of "Basic" and "Diluted" earnings per share. Basic
earnings per share includes no dilution and is computed by
dividing income available to common stockholders by the weighted
average number of common shares outstanding for the period.
Diluted earnings per share reflects the potential dilution of
securities that could share in the earnings of an entity that were
outstanding for the period, similar to fully diluted earnings per
share.
The computation of basic loss per share of common stock is based
on the weighted average number of shares outstanding during the
period of the financial statements.
<TABLE>
<CAPTION>
For the For the
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------------------------------------------------
2000 1999 2000 1999
---------------- --------------- --------------- ----------------
<S> <C> <C> <C> <C>
Numerator - loss $ (88,113) $ (30,054) $ (430,921) $ (1,418,493)
Denominator - weighted
average number of
shares outstanding 7,566,211 7,248,690 7,566,211 7,176,657
---------------- --------------- --------------- ----------------
Loss per share $ (0.01) $ (0.00) $ (0.05) $ (0.19)
================ =============== =============== ================
</TABLE>
g. Reverse Stock Split
In 1993, the Company reverse split its shares of common stock on a
1-for-20 basis. All references to shares outstanding and losses
per share have been adjusted to reflect the effect of the reverse
split on a retroactive basis.
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Continued)
h. 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 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.
i. Revenue Recognition
As the Company is in the development stage and has no sources of
revenue, such policies have not been established. The Company will
develop policies for revenue recognition when normal operations
and sales commence.
j. Long Lived Assets
All long lived assets are evaluated yearly for impairment per SFAS
121. Any impairment in value is recognized as an expense in the
period when the impairment occurs.
k. Unaudited Financial Statements
The accompanying unaudited financial statements include all of the
adjustments which, in the opinion of management, are necessary for
a fair presentation. Such adjustments are of a normal recurring
nature.
NOTE 2 - PROPERTY AND EQUIPMENT
Property and equipment consists of the following:
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------------ ------------------
(Unaudited)
<S> <C> <C>
Office Equipment $ 3,604 $ 3,604
Office Furniture 6,666 1,250
Leasehold improvements 500 -
Software 1,196,875 -
------------------ ------------------
1,207,645 4,854
Accumulated depreciation (2,019) (435)
------------------ ------------------
Net Property and Equipment $ 1,205,626 $ 4,419
================== ==================
</TABLE>
Depreciation expense for the nine months ended September 30, 2000
and 1999 was $1,584 and $-0-, respectively.
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 2 - PROPERTY AND EQUIPMENT (Continued)
Software Capitalization Schedule
<TABLE>
<S> <C>
Issuance of common stock, 200,000 shares at $5.00 per share $ 1,000,000
Issuance of common stock, 8,000 shares at $5.00 per share 40,000
Issuance of common stock, 1,000 shares at $5.00 per share 5,000
Cash payments 151,875
------------------
$ 1,196,875
</TABLE>
NOTE 3 - COMMITMENTS AND CONTINGENCIES
The Company leases certain office equipment used in its operations
under a non-cancellable operating lease. The lease term expires in
June 2003. The monthly rental payment for the lease is $67.
The Company leases office space located in Dallas, Texas under a
non-cancellable operating lease. The lease term expires in July
2000. The monthly rental payment for the lease is $248.
Minimum future lease payments on the leases as of September 30,
2000 are as follows:
Year Ended
December 31, Amount
------------ ------
2000 $ 201
2001 801
2002 801
2003 400
2004 and thereafter -
-----------------
Total $ 2,203
=================
On January 15, 2000, the Company entered into an agreement with
Integrated Concepts, Inc. to develop a custom e-commerce internet
application for the Company for $1.5 million. The Company agreed
to pay $1.0 million in common stock at a price of $5.00 per share
totaling 200,000 shares. The remaining $500,000 is to be paid over
the development of the project. In accordance with the terms of
the agreement, the Company paid $100,000 to Integrated Concepts,
Inc. upon their acceptance of the contract.
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 4 - COMMON STOCK
In January 1999, the Company issued 6,173,400 shares of its common
stock to officers and other individuals for services rendered to
the Company, valued at $1,342,097 at a price of $0.22 per share.
In January 1999, the Company sold 72,000 shares of its common
stock for cash proceeds of $15,000 at a price of $0.25 per share.
In January 1999, the Company sold 20,000 shares of its common
stock for cash proceeds of $5,000 at a price of $0.25 per share.
In January 1999, the Company issued 3,000 shares of its common
stock in settlement of debt of $1,233 and for services rendered to
the Company valued at $267 at a price of $0.50 per share.
In March 1999, the Company issued 290 shares of its common stock
at $1,450 at a price of $5.00 per share and a payable in the
amount of $1,450 for equipment valued at $2,900.
In March 1999, the Company issued 1,000 shares of its common stock
at $5,000 at a price of $5.00 per share for services to be
rendered to the Company in future periods.
From March 1999 to October 1999, the Company issued 7,790 shares
of its common stock for services rendered to the Company valued at
$38,950 at a price of $5.00 per share.
From April 1999 to October 1999, the Company sold 16,400 shares of
its common stock for cash proceeds of $82,000 at a price of $5.00
per share.
On January 15, 2000, the Company issued 200,000 shares of its
common stock and made the initial payment of $100,000 to
Integrated Concepts, Inc. upon that company's acceptance of the
contract (see Note 3).
On January 15, 2000, the Company issued 8,000 shares of its common
stock for software development for a value of $40,000, at a price
of $5.00 per share
On March 19, 2000, the Company issued an additional 1,000 shares
of its common stock to Integrated Concepts, Inc., for a value of
$5,000 at a price of $5.00 per share.
From January 1 to March 31, 2000, the Company issued 29,800s of
its common stock for services rendered to the Company, prepaid
expenses and fixed assets valued at $149,000 at a price of $5.00
per share.
From January 1 to March 31, 2000, the Company sold 55,500 shares
of its common stock for cash proceeds of $277,500 at a price of
$5.00 per share.
From April 1 to June 30, 2000, the Company sold 27,560 shares of
its common stock for cash proceeds of $137,801 at a price of $5.00
per share.
From April 1 to June 30, 2000, the Company issued 10,745 shares of
its common stock for services rendered to the Company and prepaid
expenses valued at $53,725 at a price of $5.00 per share.
<PAGE>
GIMMEABID.COM, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 5 - GOING CONCERN
The accompanying financial statements have been prepared assuming
the Company will continue as a going concern. The Company has been
in the development stage since January 1, 1993 and does not have a
significant operating history. In order to carry out its operating
plans, the Company will need to obtain additional funding from
outside sources. The Company is pursuing new business
opportunities through merger or purchase of existing, operating
companies. Due to the extremely limited assets and resources of
the Company, no assurance can be given that the Company will be
successful in its pursuit of new business opportunities.
NOTE 6 - DISCONTINUED OPERATIONS
In 1992, the Company discontinued its operations and, in 1993,
sold all of its operating assets. The operating results for the
periods from 1993 through 1998 have been reclassified and reported
as discontinued operations.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
. The Company completed the development of the fundamental portion of
its Internet software application and actually launched the site today, November
14, 2000. We anticipate that the site will begin to produce revenues in the near
future. To date, GimmeaBid.com has not begun to recognize revenues from
operations since the past eighteen months have been spent solely on development.
Until the GimmeaBid.com begins to recognize adequate revenues to sustain
operations, the Company is relying on investment dollars to continue operations
and currently has adequate capital to meet its operating requirements for the
next sixty days, not including any revenues that may be recognized from the
operation of its web site. The Company is relying on its ability to raise
additional capital through a direct public offering in the near future in order
to continue operations and launch its marketing plan. The majority of the
proceeds from this proposed offering is slated to fund our marketing efforts. We
feel that it is imperative to fund an aggressive marketing effort in order to
capture an adequate market share for the Company to become profitable.
The Company continues to develop its software applications to add and
enhance the sites current offerings to include shipping logistics and other
features. We anticipate that these enhancements will be made available to our
users in the next release that is scheduled for early January of 2001. We
further anticipate that we will be investing additional capital into hardware so
that we will have the ability to host our own site without reliance on third
parties. With this development, we will be spending approximately $100,000 to
$150,000 for hardware, software, and connectivity. We will also be adding two to
three additional employees to help host, manage and continue to develop our
site, which will increase our monthly operating expenses. The Company is
currently continuing its marketing efforts to register dealers daily by a
combination of strategies that include in-person calls, telemarketing, e-mail
messages, and direct mail. The Company continues to realize success in
registering these dealers.
At the present time, GimmeaBid.com has filed a registration statement
to attempt a direct public offering of its securities in order to obtain the
necessary capital to continue the operations and development of the Company. To
date, the Company's capital continues to be consumed by the day-to-day operating
expenses and development costs of its Internet software application. If the
Company remains in registration for an extended period of time, it will become
imperative that we raise additional capital through borrowing or begin
recognizing adequate revenues to continue operations.
As of September 30, 2000, GimmeaBid.com's Total shareholder equity had
increased to $1,238,416 from a deficit of ($102,689) as of December 31, 1999.
For the three months ending September 30, 2000, the Company had a loss per share
of ($0.01). The Company realized a ($0.05) loss per share for the nine months
ending September 30, 2000 as compared to ($.19) loss per share in same
nine-month period of 1999. While the shareholder's equity has increased
significantly and the operating loss per share appears to be significantly less
than the prior years, cash flow is still a critical issue and the Company relies
on its ability to raise additional funds in order to continue operations and
development of the site.
PART II OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities and Use of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
<PAGE>
None
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
27. Financial Data Schedule
Dated: November 13, 2000
GimmeaBid.com, Inc.
By: /s/
---------------------------
Mike Wood
