<PAGE>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Amendment No. 3
FORM SB-2/A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
FIRST CYPRESS TECHNOLOGIES, INC.
(Name of small business issuer in its charter)
NEVADA 98-0218688
------ ----------
(State or jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
Robert Rosner, President
Suite 910, 510 Burrard Street
Vancouver, British Columbia V6C 3A8 SEC File No.: 333-36942
----------------------------------------
(Name and address of principal executive
offices, principal place of business)
Registrant's telephone number, including area code: (604) 817-1441
Approximate date of proposed sale to the public: As soon as
practicable after the effective date of this Registration Statement.
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the same
offering. |__|
If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. |__|
If this Form is a post-effective amendment filed pursuant to Rule
462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. |__|
If delivery of the prospectus is expected to be made pursuant to Rule
434, check the following box. |__|
CALCULATION OF REGISTRATION FEE
--------------------------------------------------------------------------
TITLE OF EACH PROPOSED PROPOSED
CLASS OF MAXIMUM MAXIMUM
SECURITIES OFFERING AGGREGATE AMOUNT OF
TO BE AMOUNT TO BE PRICE PER OFFERING REGISTRATION
REGISTERED REGISTERED UNIT (1) PRICE (2) FEE (2)
--------------------------------------------------------------------------
Common Stock 2,057,500 shares $0.10 $205,750 $54.94
--------------------------------------------------------------------------
(1) Based on last sales price on December 31, 1999
(2) Estimated solely for the purpose of calculating the registration
fee in accordance with Rule 457 under the Securities Act.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE
OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE
REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES
THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN
ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL
THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE
COMMISSION, ACTING PURSUANT TO SECTION 8(a), MAY DETERMINE.
COPIES OF COMMUNICATIONS TO:
Michael A. Cane, Esq.
2300 W. Sahara Blvd., Suite 500
Las Vegas, NV 89102
(702) 312-6255
Agent for service of process
<PAGE>
PROSPECTUS
FIRST CYPRESS TECHNOLOGIES, INC.
2,057,500 SHARES
COMMON STOCK
----------------
The selling shareholders named in this prospectus are offering all of
our shares of common stock offered through this prospectus. The
shares were acquired by the selling shareholders directly from us in
two private offerings that were exempt from registration under the US
securities laws.
Our common stock is presently not traded on any market or securities
exchange.
----------------
The purchase of the securities offered through this prospectus
involves a high degree of risk. See section entitled "Risk Factors"
on pages 4 - 6.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities
or passed upon the adequacy or accuracy of this prospectus. Any
representation to the contrary is a criminal offense.
----------------
The Date Of This Prospectus Is: January 2, 2001
<PAGE>
TABLE OF CONTENTS
PAGE
----
Summary ............................................................ 3
Risk Factors ....................................................... 4
If We Do Not Obtain Additional Financing, Our Business
Will Fail ................................................... 4
Because We Have Only Recently Commenced Business Operations,
We Face A High Risk of Business Failure ..................... 4
Because We Have Only Recently Commenced Business Operations,
We Expect to Incur Operating Losses For The Foreseeable
Future ...................................................... 5
If We Are Unable to Develop A Marketable Product Then Our
Business Will Fail .......................................... 5
If Major Search Engines Change Their Search Format, Then Our
EngineMax Software May Not Be Able Operate Properly and Our
Business May Fail ........................................... 5
If A Market For Our Common Stock Does Develop, Our Stock
Price May Be Volatile ....................................... 5
Use of Proceeds .................................................... 6
Determination of Offering Price .................................... 6
Dilution ........................................................... 6
Selling Shareholders ............................................... 6
Plan of Distribution ............................................... 11
Legal Proceedings .................................................. 12
Directors, Executive Officers, Promoters and Control Persons ....... 12
Security Ownership of Certain Beneficial Owners and Management ..... 13
Description of Securities .......................................... 14
Interest of Named Experts and Counsel .............................. 14
Disclosure of Commission Position of Indemnification for
Securities Act Liabilities ....................................... 15
Organization Within Last Five Years ................................ 15
Description of Business ............................................ 15
Plan of Operations ................................................. 20
Description of Property ............................................ 22
Certain Relationships and Related Transactions ..................... 22
Market for Common Equity and Related Stockholder Matters ........... 22
Executive Compensation ............................................. 24
Financial Statements ............................................... 25
Changes in and Disagreements with Accountants ...................... 26
Available Information .............................................. 26
Until ______, all dealers that effect transactions in these
securities whether or not participating in this offering, may be
required to deliver a prospectus. This is in addition to the dealer'
obligation to deliver a prospectus when acting as underwriters and
with respect to their unsold allotments or subscriptions.
2
<PAGE>
SUMMARY
First Cypress Technologies, Inc.
We were incorporated on September 14, 1999 under the laws of the
state of Nevada. Our principal offices are located at Suite 910, 510
Burrard Street, Vancouver, British Columbia V6C 3A8.
Our Business and Business Strategy
Our business plan is to develop and market an Internet computer
software program known as EngineMax through our www.enginemax.com
Internet web site. The EngineMax computer software program will be
designed to automate the process of submission of Internet web page
information to major Internet search engines. Upon completion of
the development process, we plan to market our EngineMax software to
Internet web page owners and designers who are trying to maximize
their visibility to Internet users on major Internet search engines.
Our plan is to earn revenue from sales of EngineMax software licenses
once development of this software is complete.
We acquired the rights to develop our EngineMax software and the
www.EngineMax.com web site address on October 5, 1999 from Mr. Lance
Morgan.
We have only recently commenced the development of the EngineMax
software and we have yet to earn any revenues. The EngineMax
software is still in the conceptual stage of development and is not
ready for commercial use or sale. We have also not started
operations of our web site. Accordingly, our business operations are
in the start-up phase.
3
<PAGE>
RISK FACTORS
An investment in our common stock involves a high degree of risk.
You should carefully consider the risks described below and the other
information in this prospectus and any other filings we may make with
the United States Securities and Exchange Commission in the future
before investing in our common stock. If any of the following risks
occur, our business, operating results and financial condition could
be seriously harmed. The trading price of our common stock could
decline due to any of these risks, and you could lose all or part of
your investment.
If We Do Not Obtain Additional Financing, Our Business Will Fail
As of September 30, 2000, we had cash in the amount of $478. Our
business plan calls for significant expenses in connection with the
development of our EngineMax software. In addition, we anticipate
that revenues from operations will not be realized until sometime
after development of our EngineMax software is complete.
Accordingly, we will require additional financing in order to finance
this development expense. We do not have any arrangements for
financing and we can provide no assurance that we will be able to
obtain the required financing when needed. Obtaining additional
financing will be subject to a number of factors, including:
* Market conditions;
* Investor acceptance of our business plan; and
* Investor sentiment.
These factors may make the timing, amount, terms and conditions of
additional financing unattractive or unavailable to us. If we are not
successful in achieving financing in the amount necessary to develop
and market our EngineMax software, then we will not be able to
achieve revenues and our business will fail.
Because We Have Only Recently Commenced Business Operations, We Face
A High Risk of Business Failure
We were incorporated in September 1999. We acquired the rights to
develop our EngineMax software and the www.EngineMax.com web site
address in October 1999. We are presently in the process of
commencing development of our EngineMax software product. We have
not yet earned any revenues. Accordingly, we have no operating
history from which investors can evaluate our business. An investor
should consider the risks, expenses and uncertainties that an early
stage company like ours faces. These risks include our ability to:
* Develop a functioning and marketable software product;
* Develop a web site to market our EngineMax software once
development is complete;
* Successfully market our EngineMax software once development
is complete;
* Convince potential customers to purchase licenses of our
EngineMax software;
* Respond effectively to competitive pressures;
* Continue to develop and upgrade our EngineMax software once
development is complete.
As noted in our financial statements that are included with this
prospectus, we are a development stage company that is currently
developing a computer software product. These conditions, as
indicated in the audit report of BDO Dunwoody, LLP, Chartered
Accountants, raise substantial doubt as to our
4
<PAGE>
continuance as a going concern. To date, we have not completed the
development of a viable software product and we can provide no
assurance that the product we are currently developing will have a
commercial application. The success of our business operations will
depend upon our ability to obtain further financing to complete
successful development of the program and to attain profitable operations.
It is not possible at this time for us to predict with assurance the
outcome of these matters. If we are not able to complete successful
development of the program and attain profitable operations, then our
business will fail.
Because We Have Only Recently Commenced Business Operations, We
Expect to Incur Operating Losses For The Foreseeable Future
We have never been profitable or made any income whatsoever. As of
December 31, 1999, we had an accumulated deficit of approximately
$33,298. Prior to completion of our EngineMax software, we anticipate
that we will incur increased operating expenses without realizing any
revenues from sales. We therefore expect to incur significant losses
into the foreseeable future and recognize that if we are unable to
generate significant revenues from sales of licenses for our
EngineMax software, we will not be able to achieve profitability or
continue operations.
If We Are Unable to Develop A Marketable Product Then Our Business
Will Fail
The EngineMax software is currently in the development stage. In
order to develop the EngineMax software into a commercial product, we
will have to complete programming of the computer code required for
the EngineMax software. In addition, we will have to finish
development of the EngineMax website which we will use for marketing
and servicing the EngineMax software. Prior to commencing commercial
sales, we will have to complete testing of both the EngineMax
software and our website to ensure that the software and the website
are functioning properly and are capable of being marketed to the
public. If we are unable to develop a final software product that is
capable of commercial sale and market acceptance, we will not be able
to earn any revenues. Our failure to earn revenues will cause our
business to fail.
If Major Search Engines Change Their Search Format, Then Our
EngineMax Software May Not Be Able Operate Properly and Our Business
May Fail
Our business plan is based on our ability to develop a computer
software program that is able to access major search engines and
directly submit web pages. If these major search engines restrict
this access or change the manner in which they gather information on
Internet web sites, then our EngineMax software product could be
redundant or may not work properly, and we may not be able to produce
a viable product. In such a case, our business will most likely
fail.
If A Market For Our Common Stock Does Develop, Our Stock Price May Be
Volatile
There is currently no market for our common stock and there is no
assurance that a market will develop. If a market develops, we
anticipate that the market price of our common stock will be subject
to wide fluctuations in response to several factors including:
* Our ability to complete the development of the EngineMax
software and the EngineMax website;
* Our ability to generate revenues from sales of the EngineMax
software;
5
<PAGE>
* Our ability to generate brand recognition of the EngineMax
software and acceptance by consumers;
* Increased competition from competitors who offer competing
products; and
* Our financial condition and results of our operations.
We can provide no assurance to investors that our common stock will
be traded on any exchange or electronic quotation service.
Forward-Looking Statements
This prospectus contains forward-looking statements that involve
risks and uncertainties. We use words such as "anticipate,"
"believe," "plan," "expect," "future," "intend" and similar
expressions to identify such forward-looking statements. You should
not place too much reliance on these forward-looking statements. Our
actual results are most likely to differ materially from those
anticipated in these forward-looking statements for many reasons,
including the risks faced by us described in the this Risk Factors
section and elsewhere in this prospectus.
USE OF PROCEEDS
We will not receive any proceeds from the sale of the common stock
offered through this prospectus by the selling shareholders.
DETERMINATION OF OFFERING PRICE
We will not determine the offering price of the common stock. The
offering price will be determined by market factors and the
independent decisions of the selling shareholders.
DILUTION
The common stock to be sold by the selling shareholders is common
stock that is currently issued and outstanding. Accordingly, there
will be no dilution to our existing shareholders.
SELLING SHAREHOLDERS
The selling shareholders named in this prospectus are offering all of
the 2,057,500 shares of common stock offered through this prospectus.
The shares include the following:
1. 1,990,000 shares of our common stock that the selling
shareholders acquired from us in an offering that was exempt
from registration under Regulation S of the Securities Act of
1933 and completed on November 15, 1999;
2. 67,500 shares of our common stock that the selling shareholders
acquired from us in an offering that was exempt from
registration under Regulation S of the Securities Act of 1933
and completed on December 31, 1999;
6
<PAGE>
The following table provides as of November 30, 2000, information
regarding the beneficial ownership of our common stock held by each
of the selling shareholders, including:
1. the number of shares owned by each prior to this offering;
2. the total number of shares that are to be offered for each;
3. the total number of shares that will be owned by each upon
completion of the offering;
4. the percentage owned by each; and
5. the identity of the beneficial holder of any entity that owns
the shares.
7
<PAGE>
Total
Shares Total Number Shares To
Owned Of Shares To Be Owned Percent
Prior Be Offered Upon Com- Owned Upon
Name Of To This For Selling Pletion Of Completion
Selling Offer- Shareholders This Of This
Stockholder Ing Account Offering Offering
-------------------------------------------------------------------------
Abbey Investment
Management Ltd. 175,000 175,000 NIL NIL
P.O. Box 2973,
11 Old Parham Road
St. John's, Antigua
Beneficial owner:
Ian Woods
Mike Arnott 1,000 1,000 NIL NIL
242 Mobrae Ave.
Salt Spring
Island, BC
Mary Arnott 500 500 NIL NIL
242 Mobrae Ave.
Salt Spring Island, BC
Bruno Benedet, Jr. 1,000 1,000 NIL NIL
414 N. Boundary Rd.
Burnaby, BC
Victor Benedet 1,000 1,000 NIL NIL
414 N. Boundary Rd.
Burnaby, BC
J. Boguski 5,000 5,000 NIL NIL
107 Skeena St.
Kitimat, BC
Wally Boguski 6,000 6,000 NIL NIL
3887 Cartier St.
Vancouver, BC
Rhonda Canaday 4,500 4,500 NIL NIL
167 Kirkpatrick Ave.
Penticton, BC
William Chang 1,000 1,000 NIL NIL
4275 Lancelot Dr.
Richmond, BC
Albert Charron 7,500 7,500 NIL NIL
13-23387 - 70A Ave.
Langley, BC
8
<PAGE>
TABLE IS CONTINUED FROM PAGE 8
Total
Shares Total Number Shares To
Owned Of Shares To Be Owned Percent
Prior Be Offered Upon Com- Owned Upon
Name Of To This For Selling Pletion Of Completion
Selling Offer- Shareholders This Of This
Stockholder Ing Account Offering Offering
-------------------------------------------------------------------------
Brian Cole 200,000 200,000 NIL NIL
405-1680 Balsam St.
Vancouver, BC
Edward Dowse 200,000 200,000 NIL NIL
109-1770 128th St.
Surrey, BC
Francois MacKay 5,000 5,000 NIL NIL
3636 W. 14th Ave.
Vancouver, BC
Mampr, Minci 305,000 305,000 NIL NIL
3520 River Road
Richmond, BC
Bill C. Robertson 1,000 1,000 NIL NIL
828 W. 7th Ave.
Vancouver, BC
Graeme Rowland 275,000 275,000 NIL NIL
Orchard Barn
1 Peaches Farm
Crackstone
Minchimhanston
Glos., England
Michael Soloniuk 6,500 6,500 NIL NIL
3248 Adanac St.
Vancouver, BC
Laurence
Sookochoff 5,000 5,000 NIL NIL
4463 W. 1st Avenue
Vancouver, BC
Barb St. Eloi 7,500 7,500 NIL NIL
3887 Cartier St.
Vancouver, BC
9
<PAGE>
TABLE CONTINUED FROM PAGE 9
Total
Shares Total Number Shares To
Owned Of Shares To Be Owned Percent
Prior Be Offered Upon Com- Owned Upon
Name Of To This For Selling Pletion Of Completion
Selling Offer- Shareholders This Of This
Stockholder Ing Account Offering Offering
-------------------------------------------------------------------------
Carey Swales 6,000 6,000 NIL NIL
3-2880 W. 33rd Ave.
Vancouver, BC
Dawana Taylor 300,000 300,000 NIL NIL
1250 Saturna Dr.
Parksville, BC
Torcastle
Investments Inc. 285,000 285,000 NIL NIL
5 Columbus Centre
Pelican Drive
Road Town, BVI
Beneficial owner:
Janice Wehner
Gino Varnier 1,000 1,000 NIL NIL
5470 Meadfeild Lane
W. Vancouver, BC
Sandra Varnier 1,000 1,000 NIL NIL
5470 Meadfeild Lane
W. Vancouver, BC
Raul Verzosa 7,000 7,000 NIL NIL
23064-50th Ave.
Langley, BC
Woodcrest
Enterprises S.A. 250,000 250,000 NIL NIL
P.O. Box HM 2006
Hamilton, Bermuda
Beneficial owner:
Peter Leighton
-------------------------------------------------------------------------
Except as otherwise noted in the above list, the named party
beneficially owns and has sole voting and investment power over all
shares or rights to these shares. The numbers in this table assume
that none of the selling shareholders sells shares of common stock
not being offered in this prospectus or purchases additional shares
of common stock, and assumes that all shares offered are sold. The
percentages are based on 7,057,500 shares of common stock outstanding
on November 30, 2000.
10
<PAGE>
None of the selling shareholders or their beneficial owners:
* has had a material relationship with the company other than
as a shareholder at any time within the past three years; or
* has ever been an officer or directors of the company or any
of its predecessors or affiliates.
PLAN OF DISTRIBUTION
The selling shareholders may sell some or all of their common stock
in one or more transactions, including block transactions:
1. On such public markets or exchanges as the common stock may
from time to time be trading;
2. In privately negotiated transactions;
3. Through the writing of options on the common stock;
4. In short sales; or
5. In any combination of these methods of distribution.
The sales price to the public may be:
1. The market price prevailing at the time of sale;
2. A price related to such prevailing market price; or
3. Such other price as the selling shareholders determine from
time to time.
The shares may also be sold in compliance with the Securities and
Exchange Commission's Rule 144.
The selling shareholders may also sell their shares directly to
market makers acting as principals or brokers or dealers, who may act
as agent or acquire the common stock as a principal. Any broker or
dealer participating in such transactions as agent may receive a
commission from the selling shareholders, or, if they act as agent
for the purchaser of such common stock, from such purchaser. The
selling shareholders will likely pay the usual and customary
brokerage fees for such services. Brokers or dealers may agree with
the selling shareholders to sell a specified number of shares at a
stipulated price per share and, to the extent such broker or dealer
is unable to do so acting as agent for the selling shareholders, to
purchase, as principal, any unsold shares at the price required to
fulfill the respective broker's or dealer's commitment to the selling
shareholders. Brokers or dealers who acquire shares as principals may
thereafter resell such shares from time to time in transactions in a
market or on an exchange, in negotiated transactions or otherwise, at
market prices prevailing at the time of sale or at negotiated prices,
and in connection with such re-sales may pay or receive commissions
to or from the purchasers of such shares. These transactions may
involve cross and block transactions that may involve sales to and
through other brokers or dealers. If applicable, the selling
shareholders may distribute shares to one or more of their partners
who are unaffiliated with us. Such partners may, in turn, distribute
such shares as described above. We can provide no assurance that all
or any of the common stock offered will be sold by the selling
shareholders.
We are bearing all costs relating to the registration of the common
stock. The selling shareholders, however, will pay any commissions
or other fees payable to brokers or dealers in connection with any
sale of the common stock.
11
<PAGE>
The selling shareholders must comply with the requirements of the
Securities Act and the Securities Exchange Act in the offer and sale
of the common stock. In particular, during such times as the selling
shareholders may be deemed to be engaged in a distribution of the
common stock, and therefore be considered to be an underwriter, they
must comply with applicable law and may, among other things:
1. Not engage in any stabilization activities in connection with
our common stock;
2. Furnish each broker or dealer through which common stock may be
offered, such copies of this prospectus, as amended from time to
time, as may be required by such broker or dealer; and
3. Not bid for or purchase any of our securities or attempt to
induce any person to purchase any of our securities other than
as permitted under the Securities Exchange Act.
LEGAL PROCEEDINGS
We are not currently a party to any legal proceedings. First
Cypress' agent for service of process in Nevada is Michael A. Cane,
2300 West Sahara Avenue, Suite 500, Box 18, Las Vegas, Nevada 89102.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
Our executive officers and directors and their respective ages as of
November 30, 2000 are as follows:
Directors:
Name of Director Age
---------------- -----
Robert Rosner 36
Carl Chow 30
Executive Officers:
Name of Officer Age Office
----------------- ----- -------
Robert Rosner 35 President and Chief
Executive Officer
Carl Chow 30 Secretary, Treasurer and
Chief Financial Officer
Set forth below is a brief description of the background and business
experience of each of our executive officers and directors for the
past five years.
Mr. Robert Rosner is our president and chief executive officer and is
a member of our board of directors. Mr. Rosner was appointed to our
board of directors on September 15, 1999. Mr. Rosner was appointed
as our president on September 15, 1999. Mr. Rosner has been the
owner and the president of Rosner Communications Inc. since July
1985. Rosner Communications Inc. provides consulting services to
public companies. Mr. Rosner has been the president and a director
of Moreno Ventures Inc., a company listed on the Canadian Venture
Exchange, since July 1994. Mr. Rosner has been the president and a
director of Fortuna Ventures Inc., a company listed on the Canadian
Venture Exchange, since June 1996. Mr. Rosner was a director of
Global Tree Technologies, Inc., a company currently
12
<PAGE>
listed on the Canadian Venture Exchange, from May 1993 to February
1998. Moreno Ventures, Inc. and Fortuna Ventures, Inc. are both
companies engaged in the business of mineral exploration. Global Tree
Technologies, Inc. is a company engaged in the business of marketing of
a fast growing tree for production of wood products. Mr. Rosner has
been a member of the Independent Order of Foresters since 1989, and a
member of its executive committee since 1994. Mr. Rosner spends
approximately 50% of his time on our business.
Mr. Carl Chow is our secretary, treasurer and chief financial officer
and a member of our board of directors. Mr. Chow was appointed to
our board of directors on September 15, 1999. Mr. Chow was appointed
our secretary and treasurer on September 15, 1999. Mr. Chow is the
general manager of Viva Club, a restaurant located in Richmond,
British Columbia, Canada. Mr. Chow has been the general manager of
Viva Club from April 1999 to present where his principal duties are
overseeing daily operations and serving as Director of Promotions and
Marketing. Mr. Chow is also presently an assistant manager with
Rogers Cable Systems where he attends to customer needs and
complaints in regards to cable related problems, ensures employee
quality control for customer care services and trains employees for
operational systems of network and computers. Mr. Chow joined Rogers
Cable Systems in May 1995. Mr. Chow was the general manager of Neway
Holding and Trading, a company in the automotive parts and
accessories business, from February 1994 to October 1996. His duties
included performing marketing and sales training. Mr. Chow was a
special events coordinator for Equity Magazine from October 1991 to
April 1993. He principally marketed and organized motivational
speakers for small business and entrepreneurs. Mr. Chow received his
diploma in business education from the British Columbia Institute of
Technology in 1991. Mr. Chow spends approximately 50% of his time on
our business.
Term of Office
Our Directors are appointed for a one year term to hold office until
the next annual general meeting of our shareholders or until removed
from office in accordance with our bylaws. Our officers are
appointed by our board of directors and hold office until removed by
the board.
Significant Employees
We have no significant employees other than the officers and
directors described above.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table provides the names and addresses of each person
known to us to own more than 5% of our outstanding common stock as of
November 30, 2000, and by the officers and directors, individually
and as a group. Except as otherwise indicated, all shares are owned
directly.
Name and address Amount of Percent
Title of class of beneficial owner beneficial ownership of class
-------------- ------------------- -------------------- --------
Common Stock Robert Rosner 2,500,000 shares 35.4%
Director, President &
Chief Executive Officer
Suite 910, 510 Burrard Street,
Vancouver, British Columbia V6C 3A8
13
<PAGE>
Common Stock Carl Chow 2,500,000 shares 35.4%
Director, Secretary,
Treasurer & Chief
Financial Officer
6142 Beatrice St.
Vancouver, BC V5P 3R2
Common Stock All Officers and
Directors 5,000,000 shares 70.8%
as a Group that
consists of 2 persons.
-------------------------------------------------------------------------
The percent of class is based on 7,057,500 shares of common stock
issued and outstanding as of November 30, 2000.
DESCRIPTION OF SECURITIES
General
Our authorized capital stock consists of 25,000,000 shares of common
stock at a par value of $0.001 per share.
Common Stock
As of November 30, 2000, there were 7,057,500 shares of our common
stock issued and outstanding that were held by approximately 28
stockholders of record.
Holders of our common stock are entitled to one vote for each share
on all matters submitted to a stockholder vote. Holders of common
stock do not have cumulative voting rights. Therefore, holders of a
majority of the shares of common stock voting for the election of
directors can elect all of the directors. Holders of our common
stock representing a majority of the voting power of our capital
stock issued and outstanding and entitled to vote, represented in
person or by proxy, are necessary to constitute a quorum at any
meeting of our stockholders. A vote by the holders of a majority of
our outstanding shares is required to effectuate certain fundamental
corporate changes such as liquidation, merger or an amendment to our
Articles of Incorporation.
Holders of common stock are entitled to share in all dividends that
the board of directors, in its discretion, declares from legally
available funds. In the event of a liquidation, dissolution or
winding up, each outstanding share entitles its holder to participate
pro rata in all assets that remain after payment of liabilities and
after providing for each class of stock, if any, having preference
over the common stock. Holders of our common stock have no pre-
emptive rights, no conversion rights and there are no redemption
provisions applicable to our common stock.
INTERESTS OF NAMED EXPERTS AND COUNSEL
No expert or counsel named in this prospectus as having prepared or
certified any part of this prospectus or having given an opinion upon
the validity of the securities being registered or upon other legal
matters in connection with the registration or offering of the common
stock was employed on a contingency basis, or had, or is to receive,
in connection with the offering, a substantial interest, direct
14
<PAGE>
or indirect, in the registrant or any of its parents or subsidiaries.
Nor was any such person connected with the registrant or any of its
parents or subsidiaries as a promoter, managing or principal
underwriter, voting trustee, director, officer, or employee.
Michael A. Cane of Cane & Company, LLC, our independent legal
counsel, has provided an opinion on the validity of our common stock.
The financial statements included in this prospectus and in the
registration statement have been audited by BDO Dunwoody, LLP,
chartered accountants, to the extent and for the period set forth in
their report appearing elsewhere herein and in the Registration
Statement, and are included in reliance upon such report given upon
the authority of said firm as experts in auditing and accounting.
DISCLOSURE OF COMMISSION POSITION OF INDEMNIFICATION FOR SECURITIES
ACT LIABILITIES
Our directors and officers are indemnified as provided by the Nevada
Revised Statutes and our Bylaws. We have been advised that in the
opinion of the Securities and Exchange Commission indemnification for
liabilities arising under the Securities Act is against public policy
as expressed in the Securities Act, and is, therefore, unenforceable.
In the event that a claim for indemnification against such
liabilities is asserted by one of our directors, officers, or
controlling persons in connection with the securities being
registered, we will, unless in the opinion of our legal counsel the
matter has been settled by controlling precedent, submit the question
of whether such indemnification is against public policy to a court
of appropriate jurisdiction. We will then be governed by the court's
decision.
ORGANIZATION WITHIN LAST FIVE YEARS
We were incorporated on September 14, 1999 under the laws of the
state of Nevada. We acquired the rights to develop our EngineMax
software and the www.EngineMax.com web site on October 5, 1999 from
Mr. Lance Morgan in consideration for a purchase price of $15,000.
Mr. Morgan is not, and has never been one of our officers, directors
or shareholders.
Our president, Robert Rosner, was also the company's sole promoter
upon its inception. Other than the purchase of his stock, Mr. Rosner
has not entered into any agreement with the company in which he is to
receive from the company or provide to the company any thing of
value. Mr. Rosner paid a price of $0.001 US per share for each of
the 2,500,000 shares he acquired. Mr. Rosner paid a total purchase
price of $2,500 for his shares. These shares were purchased
effective September 24, 1999 by Mr. Rosner.
DESCRIPTION OF BUSINESS
Our Business Plan is to develop and market an Internet computer
software program known as EngineMax through our www.enginemax.com
Internet web site. The EngineMax computer software program will be
designed to automate the process of submission of Internet web page
information to major Internet search engines. Upon completion, we
plan to market this software to Internet web page owners and
designers who are trying to maximize their visibility to Internet
users. Our plan is to earn revenue from sales of licenses from our
EngineMax software once development of this software is complete.
15
<PAGE>
We have only recently commenced the development of the EngineMax
software and we have yet to earn any revenues. The EngineMax
software is still in its conceptual stage of development and is not
ready for commercial use or sale. We have also not started
operations of our web site.
Industry Background
1. Growth of the Internet and the World Wide Web
The Internet and the World Wide Web are experiencing dramatic growth
in terms of the number of users. The growth in the number of web
users and the amount of time users spend on the web is being driven
by the increasing importance of the Internet as a communications
medium and an information resource and a sales and distribution
channel. As Internet usage continues to grow, advertisers and
electronic commerce marketers are increasingly using the web to
locate customers, advertise and facilitate transactions.
2. Locating Information on the Internet
The proliferation of content is making it increasingly difficult and
time-consuming for users to navigate the Internet and to locate
useful and relevant information. One of the principal methods of
finding information on the Internet is through Internet search
engines. Internet search engines capture, store and index web site
information in order to retrieve web site listings in response to a
user's query. These search engines have a limited ability to
determine quality or relevance of the web site they retrieve.
Further, as the nature of the available content has become more
difficult to classify, many companies who offer search engines are
being forced to employ significant editorial staff to ensure that
responses to queries are satisfactory. Search engines based on
natural language have the added difficulty of accurately determining
sentence syntax and nuances.
3. Marketing Web Sites on the Internet
The explosive growth of Internet web pages and the reliance by
Internet users on Internet search engines creates a marketing
difficulty for businesses that are promoting their web sites on the
Internet. A component of a successful marketing campaign of a web
site is to design a web page such that major search engines recognize
the web page when applicable key word searches are performed. The
ability of a business to ensure that its web page appears on major
search engines when appropriate keyword searches are performed can
have a material impact on the visibility of the company's web site
and the Internet traffic that the web site receives. Accordingly,
there is a demand from Internet-based businesses to ensure that their
web pages are appropriately positioned in the databases of major
search engines such that the web pages are frequently cited when
keyword searches are performed.
Development Of The EngineMax Software
Our business plan is to develop the EngineMax software as an Internet
software package that will be designed to enable users to
automatically submit web pages to major search engines. We are
planning to design the EngineMax software to access links that are
currently incorporated into major search engines. These access links
enable users to submit web pages directly to the search engine. The
EngineMax software will be designed with the objective of automating
this submission process and maximizing the ability of the user to
have their web page cited by major search engines when Internet users
enter appropriate key words.
16
<PAGE>
Our plan is to design the EngineMax software with the following
capabilities:
* The EngineMax software will operate on both Windows 95 and
Windows 98 operating systems.
* The EngineMax software will be designed to submit domain
names directly to major search engines through a
comprehensive submission program.
* The EngineMax software will be designed for the submission of
initial web pages as well as the submission of web page
updates.
* The EngineMax software will be designed to configure
submissions to major search engines in order to maximize
exposure of customer's web sites on major search engines.
We also plan to develop our EngineMax web site at "www.enginemax.com"
in order to market our EngineMax software. We will design our web
site to provide our customers with useful tips and strategies for
positioning their web sites for maximum recognition by major search
engines.
We anticipate that upon development, we will have to continually
upgrade and refine the EngineMax software in order that the software:
* remains compliant with any modifications to the web page
submission requirements of major search engines;
* is able to operate on upgraded operating systems, such as
Windows 2000;
* is competitive with products introduced by competitors.
Market for the EngineMax Software
Our objective is to earn revenues from sales of licenses for the use
of the EngineMax software.
We believe that the customers for our software will consist of web
page owners and web page developers who are trying to maximize the
visibility of their web sites on major Internet search engines.
Visibility on major search engines is a principal component of the
business plans of many companies who are trying to conduct electronic
commerce or other business via the Internet. We anticipate that web
page businesses and designers in the following areas may purchase our
software:
* Internet marketing;
* Electronic commerce;
* Generating web traffic;
* Customer support services;
* Special events;
* Corporate web pages;
* Personal web pages;
* Online identity and development.
17
<PAGE>
Marketing
Our objective will be to commence marketing of the EngineMax software
upon completion of it's development. Our marketing strategy is
proposed to include the following elements:
(A) A banner-advertising program in which we would pay for
advertising of the EngineMax software on Internet web sites
where we feel exposure would help to increase sales of the
EngineMax software.
(B) An e-mail program whereby advertisements for our EngineMax
software would be delivered to potential customers, including
Internet service providers, advertising companies, web site
development firms and computer programmers.
Operations
The development of our EngineMax software is currently in the
conceptual stage of its development. We have not commenced
operations or development in any form. We plan to commence
development of the EngineMax software once financing is obtained. We
have not completed the development of our www.EngineMax.com web site
that will be used to market our EngineMax software. Our plan is to
complete development of our web site once the development of the
EngineMax software has been completed and we are ready to market the
EngineMax software.
Competition
We will compete with other software developed by competitors, which
includes:
* A software product known as Submit-it marketed by Software
Design;
* A software product known as Web Position Gold marketed by
First Place Software;
* A software product known as Submission Wizard marketed by GRP
Main Agencies.
We will compete with existing competitors both on the basis of price
and brand recognition. Existing competitors who have already
completed development of their software products may be able to
market their competing products at lower prices than we are able to
market the EngineMax software. In addition, existing competitors may
have developed brand recognition with consumers, thereby making it
more difficult for our product to gain consumer acceptance. The
presence of these and other established competitors could adversely
affect our ability to successfully implement our business plan and
achieve sales of our software. If we are not successful in
implementing our business plan, then our business will fail.
We have limited financial, marketing, technical and other resources
that are necessary to implement our business plan. Many of our
current and potential competitors have significantly greater
financial, marketing, technical and other resources than we do. Our
competitors may be able to devote greater resources to the
development, promotion and sale of competing software and web sites.
In addition, our competitors may be able to offer the software we are
planning to develop at prices that are below the prices offered by us
or which may even be free.
18
<PAGE>
Government Regulation
Due to the increasing popularity and use of the Internet, it is
possible that a number of laws and regulations may be adopted with
respect to the Internet generally, covering issues such as user
privacy, pricing, and characteristics and quality of products and
services. Similarly, the growth and development of the market for
Internet commerce may prompt calls for more stringent consumer
protection laws that may impose additional burdens on those companies
conducting business over the Internet. The adoption of any such laws
or regulations may decrease the growth of commerce over the Internet,
increase our cost of doing business or otherwise have a harmful
effect on our business.
To date, governmental regulations have not materially restricted the
use or expansion of the Internet. However, the legal and regulatory
environment that pertains to the Internet is uncertain and may
change. New and existing laws may cover issues that include:
* Sales and other taxes;
* User privacy;
* Pricing controls;
* Characteristics and quality of products and services;
* Consumer protection;
* Cross-border commerce;
* Libel and defamation;
* Copyright, trademark and patent infringement; and
* Other claims based on the nature and content of Internet
materials.
These new laws may impact our ability to market and sell EngineMax
software in accordance with our business plans.
We may have to qualify to do business in other jurisdictions. If we
make sales of our EngineMax software, we anticipate that sales and
our customers will be in multiple states and foreign countries. As
our customers may be resident in such states and foreign countries,
such jurisdictions may claim that we are required to qualify to do
business as a foreign company in each such state and foreign country.
Failure to qualify as a foreign company in a jurisdiction where
required to do so could subject us to taxes and penalties.
We are not aware of any environmental laws that will be applicable to
the operation of our business.
Research and Development Expenditures
We have not expended any money on research and development. We have
spent $15,000 on expenses associated with the acquisition of the
rights to develop our EngineMax software and the www.EngineMax.com
web site address.
19
<PAGE>
Employees
We have no full-time employees and two part-time employees. Our
part-time employees include Mr. Robert Rosner, our president and
chief executive officer, and Mr. Carl Chow, our secretary, treasurer
and chief financial officer. We plan to conduct our business
primarily through agreements with consultants and arms-length third
parties.
PLAN OF OPERATIONS
Our plan of operations for the twelve months following the date of
this registration statement is to complete the following objectives
within the time period specified, subject to our obtaining financing
for the development and marketing of our EngineMax software:
* Build an internal administrative and managerial organization
to oversee all areas of development and long-term operations.
* Develop a functional and marketable piece of software
* Create a cost-effective and internet-based marketing campaign
* Develop a website to market the software
In building our internal administrative and managerial organization,
we will seek to minimize the hiring of fulltime employees. Fulltime
positions will be limited to the president/CEO, CFO, a software
development project manger, an office manager and a marketing
manager. Other part-time and contract people are expected to be
required to provide assistance to these roles. We project that the
cost of these employees will total approximately $200,000 for the
first year.
We also anticipate building an internal enhancement, support and
marketing infrastructure for the business, spending approximately
$50,000 on the purchase of necessary equipment and supplies.
The most important and difficult goal is to complete the development
of the EngineMax software. We plan to hire an external software
development firm to build the software rather than handle this
process ourselves.
We anticipate that this development will be completed by February 1,
2001. We anticipate that the development costs will be approximately
$250,000 and will consist primarily of payments to consultants for
programming and software development services. Therefore the
independent third party consultants will conduct all research and
development.
The development of our EngineMax software is currently in the
conceptual stage and further development of the EngineMax software
will commence once financing is obtained.
We plan to commence development of our web site slightly before
completion of the EngineMax software. We anticipate that our web
site will be fully operational by April 30, 2001. We anticipate that
the development expenses for this web site will be approximately
$50,000.
20
<PAGE>
We plan to undertake an advertising and marketing campaign once the
development of our EngineMax software is complete. We anticipate
that initial marketing expenses for the first year will be
approximately $100,000. This campaign will be designed and the
majority of the work will be completed by a third party marketing
consulting firm. We anticipate that this will minimize start up
expenses and optimize results in the ever-changing world of Internet
marketing.
We anticipate we will first achieve revenues in May 2001.
Our actual expenditures and business plan may differ from this plan
of operations. Our board of directors may decide not to pursue this
plan, or may decide to modify it based on new information or limits
in the amount of available financing.
We thus anticipate that we will be spending approximately $650,000
over the next twelve month period in pursuing this plan of
operations. Of these expenditures, we anticipate that $250,000 will
be spent in the next six months. Our cash position as of June 30,
2000 was $511. Accordingly, we will require additional financing in
order to pursue this business plan. We anticipate that if we are
successful in completing a financing, that the financing would be an
equity financing raised through the sale of our common stock. We do
not have any arrangement in place for any debt or equity financing.
If we are successful in completing an equity financing, existing
shareholders will experience dilution of their interest in First
Cypress.
In the event we are not successful in raising additional financing,
we anticipate that we will not be able to proceed with our business
plan for the development and marketing of the EngineMax software.
Due to our lack of operating history and present inability to
generate revenues, there currently exists substantial doubt about our
ability to continue as a going concern.
We anticipate incurring continuing operating losses for the
foreseeable future. We base this expectation, in part, on the fact
that we will incur substantial operating expenses in completing the
development of our software and website and do not anticipate earning
any revenues until sometime next year. Our future financial results
are also uncertain due to a number of factors, some of which are
outside our control. These factors include, but are not limited to:
* our ability to develop a commercially marketable computer
software program with the features and functionality sought
by potential customers;
* our ability to successfully market our EngineMax computer
software to potential customers;
* our ability to charge customers a license fee that will
enable us to generate revenues exceeding operating costs;
* the introduction and availability of competing products by
competitors.
We believe the above discussion contains a number of forward-looking
statements. Our actual results and our actual plan of operations may
differ materially from what is stated above. Factors which may cause
our actual results or our actual plan of operations to vary include,
among other things, decisions of our board of directors not to pursue
a specific course of action based on its re-assessment of the facts
or new facts, changes in the Internet business or general economic
conditions and those other factors identified in this prospectus.
21
<PAGE>
DESCRIPTION OF PROPERTY
We do not own or lease any real property. Our principal executive
offices are located in property rented by Mr. Robert Rosner, our
president and a director, at Suite 910, 510 Burrard Street,
Vancouver, British Columbia V6C 3A8. Our telephone number is (604)
817-1441. We pay only for our office expenses at this location at a
rate of US$1000 per month.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.
None of the following parties has, since our date of incorporation,
had any material interest, direct or indirect, in any transaction
with us or in any presently proposed transaction that has or will
materially affect us:
* Any of our directors or officers;
* Any person proposed as a nominee for election as a director;
* Any person who beneficially owns, directly or indirectly, shares
carrying more than 10% of the voting rights attached to our
outstanding shares of common stock;
* Any of our promoters;
* Any relative or spouse of any of the foregoing persons who has
the same house as such person.
We have agreed to reimburse Mr. Rosner at a rate of US$1,000 per
month for office expenses incurred in the operation of the business.
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
No Public Market for Common Stock
There is presently no public market for our common stock. We
anticipate applying for trading of our common stock on the over the
counter bulletin board upon the effectiveness of the registration
statement of which this prospectus forms a part. However, we can
provide no assurance that our shares will be traded on the bulletin
board or, if traded, that a public market will materialize.
Holders of Our Common Stock
As of the date of this registration statement, we had 28 registered
shareholders.
Rule 144 Shares
A total of 5,000,000 shares of our common stock will be available for
resale to the public after September 24, 2000 in accordance with the
volume and trading limitations of Rule 144 of the Act. In general,
under Rule 144 as currently in effect, a person who has beneficially
owned shares of a company's common stock for at least one year is
entitled to sell within any three month period a number of shares
that does not exceed the greater of:
1. 1% of the number of shares of the company's common stock then
outstanding which, in our case, will equal approximately 70,575
shares as of the date of this prospectus; or
22
<PAGE>
2. the average weekly trading volume of the company's common stock
during the four calendar weeks preceding the filing of a notice on
form 144 with respect to the sale.
Sales under Rule 144 are also subject to manner of sale provisions
and notice requirements and to the availability of current public
information about the company.
Under Rule 144(k), a person who is not one of the company's
affiliates at any time during the three months preceding a sale, and
who has beneficially owned the shares proposed to be sold for at
least 2
years, is entitled to sell shares without complying with the manner
of sale, public information, volume limitation or notice provisions
of Rule 144.
As of the date of this prospectus, all of the 5,000,000 shares which
may be sold pursuant to Rule 144 after September 24, 2000 are held by
persons who are our affiliates.
Stock Option Grants
To date, we have not granted any stock options.
Registration Rights
We have not granted registration rights to the selling shareholders
or to any other persons.
Dividends
There are no restrictions in our articles of incorporation or bylaws
that prevent us from declaring dividends. The Nevada Revised
Statutes, however, do prohibit us from declaring dividends where,
after giving effect to the distribution of the dividend:
1. we would not be able to pay our debts as they become due in the
usual course of business; or
2. our total assets would be less than the sum of our total
liabilities plus the amount that would be needed to satisfy the
rights of shareholders who have preferential rights superior to
those receiving the distribution.
We have not declared any dividends, and we do not plan to declare any
dividends in the foreseeable future.
23
<PAGE>
EXECUTIVE COMPENSATION
Summary Compensation Table
The table below summarizes all compensation awarded to, earned by,
or paid to our executive officers by any person for all services
rendered in all capacities to us for the fiscal year ended December
31, 1999
Annual Compensation Long Term Compensation
------------------- ----------------------
Other All
Annual Other
Com- Com-
pen- Restricted pen-
sa- Stock Options/* LTIP sa-
Name Title Year Salary Bonus tion Awarded SARs (#)payouts($)tion
---- ----- ---- ------ ----- ------ ------- ------- --------- ----
Robert President, 1999 $0 0 0 0 0 0 0
Rosner CEO and
Director
Carl Secretary, 1999 $0 0 0 0 0 0 0
Chow Treasurer,
CFO and
Director
Stock Option Grants
We did not grant any stock options to the executive officers during
our most recent fiscal year ended December 31,1999. We have also not
granted any stock options to the executive officers since December
31, 1999.
Employment Agreements
We do not have an employment or consultant agreement with Mr. Robert
Rosner, our president and a director. Mr. Rosner provides his
services to us on a part-time basis. We do not pay any to Mr.
Rosner. Effective June 1, 2000, First Cypress began paying Mr.
Rosner a management fee in the amount of $1,000 per month.
We do not have an employment or consultant agreement with Mr. Carl
Chow, our secretary, treasurer and chief financial officer and a
director. We do not pay any salary or consulting fees to Mr. Chow.
24
<PAGE>
FINANCIAL STATEMENTS
Index to Financial Statements:
1. Auditors' Report;
2. Comments by Auditors for US Readers;
3. Audited Financial Statements for the period ending December 31,
1999, including:
a. Balance Sheet
b. Statement of Changes in Shareholder Deficiency
c. Statement of Operations
d. Statement of Cash Flow
e. Summary of Significant Accounting Policies
f. Notes to Financial Statements
4. Un-Audited Financial Statements for the nine months ending September 30,
2000, including:
a. Balance Sheet
b. Statement of Changes in Shareholders' Deficiency
c. Statement of Operations
d. Statement of Cash Flow
e. Notes to Financial Statements
25
<PAGE>
FIRST CYPRESS TECHNOLOGIES, INC.
(A Development Stage Company)
Financial Statements
For the period from September 14, 1999 (inception) to
December 31, 1999
Contents
___________________________________________________________________
Auditors' Report 1
Comments by Auditors for U.S. Readers on Canada-U.S.
Reporting Differences 2
Financial Statements
Balance Sheet 3
Statement of Changes in Shareholder's Deficiency 4
Statement of Operations 5
Statement of Cash Flow 6
Summary of Significant Accounting Policies 7 - 8
Notes to Financial Statements 9 - 10
<PAGE>
BDO BDO Dunwoody LLP 102 - 100 Front Street
Chartered Accountants Penticton, B.C. V2A 1H1
Phone: (250) 492-6020
Fax: (250) 492-8110
___________________________________________________________________
Auditors' Report
___________________________________________________________________
To the Directors and Stockholders of
First Cypress Technologies, Inc.
(A Development Stage Company)
We have audited the balance sheet of First Cypress Technologies,
Inc. (a development stage company) as at December 31, 1999 and
the statement of changes in shareholders' deficiency, the
statements of operations and cash flows for the period from
September 14, 1999 (inception) to December 31, 1999. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards
generally accepted in the Canada. Those standards require that we
plan and perform an audit to obtain reasonable assurance 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 estimates made by management, as well as evaluating
the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all
material respects, the financial position of the Company as at
December 31, 1999 and the results of its operations and its cash
flows for the period from September 14, 1999 (inception) to
December 31, 1999 in accordance with accounting principles
generally accepted in the United States.
/s/ BDO Dunwoody LLP
Chartered Accountants
Penticton, British Columbia
January 21, 2000
1
<PAGE>
BDO BDO Dunwoody LLP 102 - 100 Front Street
Chartered Accountants Penticton, B.C. V2A 1H1
Phone: (250) 492-6020
Fax: (250) 492-8110
___________________________________________________________________
Comments by Auditors for U.S. Readers
On Canada-U.S. Reporting Differences
___________________________________________________________________
To the Directors and Stockholders of
First Cypress Technologies, Inc.
(A Development Stage Company)
In the United States, reporting standards for auditors require
the addition of an explanatory paragraph (following the opinion
paragraph) when the financial statements are affected by
conditions and events that cast substantial doubt on the
Company's ability to continue as a going concern, such as those
described in Note 1 to the financial statements. Our report to
the stockholders dated January 21, 2000 is expressed in
accordance with Canadian reporting standards which do not permit
a reference to such events and conditions in the auditors' report
when these are adequately disclosed in the financial statements.
/s/ BDO Dunwoody LLP
Chartered Accountants
Penticton, British Columbia
January 21, 2000
2
<PAGE>
=======================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Balance Sheet
December 31 1999
(U.S. Dollars)
_______________________________________________________________________
Assets
Current
Cash $ 15,352
------------
$ 15,352
=======================================================================
Liabilities and Shareholders' Deficiency
Current
Accounts payable and accrued liabilities $ 17,000
------------
Shareholders' deficiency
Share capital (Note 2)
Authorized - 25,000,000 common shares
with par value $0.001
Issued and fully paid - 7,057,500 common shares 7,058
Additional paid-in capital 24,592
Deficit accumulated during the development stage (33,298)
------------
(1,648)
------------
$ 15,352
=======================================================================
The accompanying summary of significant accounting policies and
notes form an integral part of these financial statements
3
<PAGE>
=======================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Statement of Changes in Shareholders' Deficiency
For the period from September 14, 1999 (inception)
to December 31, 1999
_________________________________________________________________________
Additional Total Share-
Number Per Carrying Paid in Accumulated holder's
of Common share Value Capital Deficit Deficiency
Shares price (U.S. (U.S. (U.S. (U.S.
Dollars) Dollars) Dollars) Dollars)
_________________________________________________________________________
Incorporation,
September 24,
1999 5,000,000 $0.001 $5,000 $ - $ - $ 5,000
Sale of common
shares,
November 15,
1999 1,990,000 $0.010 1,990 17,910 - 19,900
Sale of common
shares,
December 31,
1999 67,500 $0.100 68 6,682 - 6,750
Net loss to
December 31,
1999 - - - (33,298) (33,298)
___________________________________________________________
Balance,
December 31,
1999 7,057,500 $7,058 $24,592 $ (33,298) $ (1,648)
===========================================================
The accompanying summary of significant accounting policies and
notes form an integral part of these financial statements
4
<PAGE>
=======================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Statement of Operations
For the period from September 14, 1999 (inception) 1999
To December 31 (U.S. Dollars)
_______________________________________________________________________
Expenses
Office and administration $ 71
Professional fees 18,227
Software development 15,000
-------------
Net loss for the period $ (33,298)
_______________________________________________________________________
Basic loss per share $ (0.006)
_______________________________________________________________________
Weighted average shares outstanding 5,858,693
_______________________________________________________________________
The accompanying summary of significant accounting policies and
notes form an integral part of these financial statements
5
<PAGE>
=======================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Statement of Cash Flow
For the period from September 14, 1999 (inception) 1999
To December 31, 1999 (U.S. Dollars)
_______________________________________________________________________
Cash provided by (used in)
Cash flows from operating activities
Net loss for the year $ (33,298)
Changes in assets and liabilities
Accounts payable and accrued liabilities 17,000
-------------
(16,298)
-------------
Cash flows from financing activities
Proceeds from issuance of share capital 31,650
-------------
Increase in cash during the period and cash,
end of period $ 15,352
=======================================================================
The accompanying summary of significant accounting policies and
notes form an integral part of these financial statements
6
<PAGE>
=======================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Summary of Significant Accounting Policies
December 31, 1999
-----------------------------------------------------------------------
Software Development Costs
Under the provisions of Statement of Financial
Accounting Standards No. 86, "Accounting for the
Costs of Computer Software to be Sold, Leased or
Otherwise Marketed", issued by the Financial
Accounting Standards Board, certain costs
incurred in the internal development of computer
software which is to be licensed to customers
are capitalized. Amortization of capitalized
software costs is provided upon commercial
release of the products at the greater of the
amount using (i) the ratio that current gross
revenues for a product bear to the total of
current and anticipated future gross revenues of
that product or, (ii) the straight-line method
over the remaining estimated economic life of
the product including the period being reported
on. Costs that are capitalized as part of
internally developed software primarily include
direct and indirect costs associated with
payroll, computer time and allocable
depreciation and other direct allocable costs,
among others. All costs incurred prior to the
establishment of technological feasibility are
expensed as research and development costs
during the periods in which they were incurred.
Capitalization stops when the product is
available for general release. The amount by
which unamortized software costs exceeds the net
realizable value, if any, is recognized as
expense in the period it is determined. The
Company will evaluate the net realizable value
of capitalized computer software costs and
intangible assets on an ongoing basis relying on
a number of factors including operating results,
business plans, budgets and economic
projections.
Physical assets that are acquired for
development activities that have an alternate
future use will be capitalized.
Use of Estimates
The preparation of financial statements in
accordance 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 management's best estimates as additional
information becomes available in the future.
Income Taxes
The Company follows the provisions of Statement
of Financial Accounting Standards ("SFAS") No.
109, "Accounting for Income Taxes", which
requires the Company to recognize deferred tax
liabilities and assets for the expected future
tax consequences of events that have been
recognized in the Company's financial statements
or tax returns using the liability method. Under
this method, deferred tax liabilities and assets
are determined based on the temporary
differences between the financial statement
carrying amounts and tax bases of assets and
liabilities using enacted rates in effect in the
years in which the differences are expected to
reverse.
7
<PAGE>
=======================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Summary of Significant Accounting Policies
December 31, 1999
-----------------------------------------------------------------------
Revenue Recognition
Since inception the Company has not generated
any revenues and has not completed development
of its software to the stage of determining how
revenues will be generated from the software.
The Company will recognize revenue related to
software licenses and software maintenance in
compliance with the American Institute of
Certified Public Accountants Statement of
Position No. 97-2, "Software Revenue
Recognition".
It is anticipated that the Company will license
software under noncancellable license agreements
and provide maintenance services, consisting of
product support services and periodic updates.
License fee revenues will generally be
recognized when a noncancellable license
agreement has been signed, the software product
has been shipped, there are no uncertainties
surrounding product acceptance, there are no
significant vendor obligations, the fees are
fixed and determinable, and collection is
considered probably. Revenues from maintenance
agreements will be recognized ratably over the
maintenance period.
Financial Instruments
The Company's financial instruments consist of
cash and accounts payable and accrued
liabilities. Unless otherwise noted, 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,
unless otherwise noted.
New Accounting Pronouncements
In June 1998, SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities",
was issued. SFAS No. 133 requires companies to
recognize all derivative contracts as either
assets or liabilities on the balance sheet and
to measure them at fair value. If certain
conditions are met, a derivative may be
specifically designated as a hedge, the
objective of which is to match the timing of
gain or loss recognition on the hedging
derivative with the recognition of (i) the
changes in the fair value of the hedged asset or
liability that are attributable to the hedged
risk or (ii) the earnings effect of the hedged
forecasted transaction. For a derivative not
designated as a hedging instrument, the gain or
loss is recognized in income in the period of
change. SFAS No. 133 is effective for all fiscal
quarters of fiscal years beginning after June
15, 2000.
Historically, the Company has not entered into
derivative contracts either to hedge existing
risks or for speculative purposes. Accordingly,
the Company does not expect adoption of the new
standards on January 1, 2000 to affect its
financial statements.
Loss Per Share
Loss per share is computed in accordance with
SFAS No. 128, "Earnings Per Share". Basic loss
per share is calculated by dividing the net loss
available to common stockholders by the weighted
average number of common shares outstanding for
the period. There is no diluted loss per share
because there are no common stock equivalents.
8
<PAGE>
=======================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 1999
-----------------------------------------------------------------------
1. Nature of Business and Continued Operations
All financial information presented in these financial
statements is expressed in U.S. dollars and prepared in
accordance with accounting principles generally accepted in
the United States.
First Cypress Technologies, Inc. was incorporated on
September 14, 1999 under the laws of the State of Nevada. The
Company is a development stage company that is currently
developing an Internet computer software program known as
EngineMax. The EngineMax computer software program will be
designed to automate the process of submission of Internet
web page information to major Internet search engines.
These accompanying financial statements have been prepared on
a going concern basis, which contemplates the realization of
assets and the satisfaction of liabilities and commitments in
the normal course of business. As at December 31, 1999, the
Company has recognized no revenue and has accumulated
operating losses of $33,298 since its inception, has a
working capital deficiency of $1,648 and has a shareholders'
deficiency of $1,648. The continuation of the Company is
dependent upon the continuing financial support of creditors
and stockholders and obtaining long-term financing as well as
achieving a profitable level of operations. Management plans
to raise equity capital to finance the operations and capital
requirements of the Company. It is management's intention to
raise new equity financing of approximately $500,000 within
the upcoming year. Amounts raised will be used to complete
the development of the EngineMax software, commence
development of the Company's web site, undertake an
advertising and marketing campaign and purchase of necessary
equipment and supplies for the operation of the business.
While the Company is expending its best efforts to achieve
the above plans, there is no assurance that any such activity
will generate funds that will be available for operations.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern. These financial
statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts
or amounts and classification of liabilities that might arise
from this uncertainty.
_______________________________________________________________________
2. Share Capital
Authorized
25,000,000 common shares with par value of $0.001 per share
1999
-----------------------------
Number
of
Shares Amount
-----------------------------
Issued and fully paid
Balance, beginning of year - $ -
Issued for cash
Founders shares 5,000,000 5,000
Private placements, for details see
Statement of Changes in
Shareholders' Deficiency 2,057,500 2,058
----------------------------
Balance, end of year 7,057,500 $ 7,058
============================
9
<PAGE>
=======================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
December 31, 1999
-----------------------------------------------------------------------
3. Income Taxes
The tax effects of temporary differences that give rise to
the Company's deferred tax assets are as follows:
1999
(U.S. Dollars)
--------------------
Tax loss carry-forwards $ 11,300
Valuation allowance (11,300)
--------------------
$ -
====================
The provision for income taxes differs from the amount
computed using the federal statutory income tax rate as
follows:
1999
(U.S. Dollars)
--------------------
Benefit at federal statutory rate $ 11,300
Increase in valuation allowance (11,300)
--------------------
$ -
====================
The Company evaluates its valuation allowance requirements
based on projected future operations. Management has
recorded a valuation allowance because it believes it is more
likely than not that the future income tax benefits of the
current loss will not be realized. When circumstances change
and this causes a change in management's judgement about the
recoverability of deferred tax assets, the impact of the
change on the valuation allowance will be reflected in
current income.
At December 31, 1999, the Company had losses available for
income tax purposes of approximately $33,300, which will
expire in 2019.
10
<PAGE>
FIRST CYPRESS TECHNOLOGIES, INC.
(A Development Stage Company)
Financial Statements
(Unaudited)
For the nine month period ended September 30, 2000
Contents
=========================================================================
Financial Statements
Balance Sheet 2
Statement of Changes in Shareholders' Deficiency 3
Statement of Operations 4
Statement of Cash Flow 5
Notes to Financial Statements 6
1
<PAGE>
=========================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Balance Sheet
(Unaudited)
September 30 September 30
2000 1999
-------------------------------------------------------------------------
(US Dollars) (US Dollars)
Assets
Current
Cash $ 478 $ 5,000
=========================================================================
Liabilities and Shareholders' Deficiency
Current
Accounts payable and accrued liabilities $ 60,824 $ -
Due to shareholders (Note 2) 43,388 -
----------------------------
104,212 -
----------------------------
Shareholders' deficiency
Share capital
Authorized - 25,000,000 common shares
with par value $0.001
Issued and fully paid - 7,057,500 common
shares 7,058 5,000
Additional paid-in capital 24,592 -
Deficit accumulated during the
development stage (135,384) -
----------------------------
(103,734) 5,000
----------------------------
$ 478 $ 5,000
=========================================================================
Approved on behalf of the Board
-----------------------------
Director
-----------------------------
Director
2
<PAGE>
==========================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Statement of Changes in Shareholders' Deficiency
(Unaudited)
(U.S. Dollars)
--------------------------------------------------------------------------
Addi-
Number tional Total
of Per Car- Paid Accu- Share-
Common share rying in mulated holder's
Shares price Value Capital Deficit Deficiency
--------------------------------------------------------------------------
Incorporation,
September 14, 1999 5,000,000 $0.001 $5,000 $ - $ - $ 5,000
Sale of common
shares,
November 15,
1999 1,990,000 $0.010 1,990 17,910 - 19,900
Sale of common
shares,
December 31,
1999 67,500 $0.100 68 6,682 - 6,750
Net loss for
the period - - - (33,298) (33,298)
-----------------------------------------------------
Balance,
December 31,
1999 7,057,500 0.001 7,058 24,592 (33,298) (1,648)
Net loss for
the period - - - (102,086) (102,086)
-----------------------------------------------------
Balance,
September 30,
2000 7,057,500 $7,058 $24,592 $(135,384) $(103,734)
=====================================================
3
<PAGE>
=========================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Statement of Operations
(Unaudited)
Period
from
September 14
1999
September 30 (inception) to
2000 September 30
(Nine Months) 2000
-------------------------------------------------------------------------
(U.S. Dollars) (U.S. Dollars)
Expenses
Interest and bank charges $ 105 $ 105
Management fees 1,000 1,000
Office, administration and rent 5,670 5,741
Professional fees 95,311 113,538
Software development - 15,000
---------------------------
Net loss for the period (102,086) (135,384)
=========================================================================
Basic loss per share $ (0.01) $ (0.02)
=========================================================================
Weighted average shares outstanding 7,057,500 6,715,432
=========================================================================
4
<PAGE>
=========================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Statement of Cash Flow
(Unaudited)
Period
from
September 14
1999
For the nine month period ended September 30 (inception) to
September 30 2000 September 30
(Nine Months) 2000
-------------------------------------------------------------------------
(U.S. Dollars) (U.S. Dollars)
Cash flows from operating activities
Net loss for the period $ (102,086) $ (135,384)
Adjustment for changes in assets and
liabilities
Accounts payable and accrued liabilities 43,824 60,824
---------------------------
(58,262) (74,560)
---------------------------
Cash flows from financing activities
Issuance of share capital - 31,650
Increase in amounts due to shareholder 43,388 43,388
--------------------------
43,388 75,038
--------------------------
Increase (decrease) in cash during the period (14,847) 478
Cash, beginning of period - -
==========================
Cash, end of period $ 478 $ 478
=========================================================================
5
<PAGE>
=========================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
(Unaudited)
September 30, 2000
-------------------------------------------------------------------------
1. Basis of Presentation
These interim financial statements have been prepared by First
Cypress Technologies, Inc., without audit, pursuant to the
rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures
normally included in financial statements prepared in
accordance with generally accepted accounting principles have
been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the
disclosures are adequate to make the information presented not
misleading.
These financial statements reflect all adjustments, consisting
of normal recurring adjustments, which, in the opinion of
management, are necessary for fair presentation of the
information contained therein. The Company follows the same
accounting policies in preparation of interim reports.
The results of the interim period may not be indicative of
annual results.
These financial statements have been prepared on a going
concern basis, which contemplates the realization of assets
and the satisfaction of liabilities and commitments in the
normal course of business. As at September 30, 2000, the
Company has recognized no revenues and has accumulated
operating losses of approximately $135,384 since its
inception. The continuation of the Company is dependent upon
the continuing financial support of creditors and
stockholders and obtaining long-term financing as well as
achieving a profitable level of operations. Management plans
to raise equity capital to finance the operations and capital
requirements of the Company. It is management's intention to
raise new equity financing of approximately $500,000 within
the upcoming year. Amounts raised will be used to complete
the development of the EngineMax software, commence
development of the Company's web site, undertake an
advertising and marketing campaign and purchase of necessary
equipment and supplies for the operation of the business.
While the Company is expending its best efforts to achieve
the above plans, there is no assurance that any such activity
will generate funds that will be available for operations.
These conditions raise substantial doubt about the Company's
ability to continue as a going concern. These financial
statements do not include any adjustments that might arise
from this uncertainty.
2. Due to Shareholders
Amounts due to shareholders are due on demand and non-interest
bearing. Its is the intention of the shareholders not to demand
any of the outstanding balance within the current fiscal
period.
3. Commitments
During the period the Company has incurred rent and office
services in the amount of $4,500. These services are provided
to the Company on a month to month basis at $500 per month and
can be terminated by the Company without notice.
6
<PAGE>
=========================================================================
First Cypress Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements
(Unaudited)
September 30, 2000
-------------------------------------------------------------------------
4. Related Party Transactions
The following table summarizes the company's related party
transactions for the period:
Period
from
September 14
1999
September 30 (inception) to
2000 September 30
(Nine Months) 2000
Selling, general and administrative
expenses
Office, administration and rent
charged by the Company's President $ 3,500 $ 3,500
These transactions are in the normal course of operations and
are measured at the exchange value (the amount of consideration
established and agreed to by the related parties), which
approximates the arm's length equivalent value for sales of
product.
At the end of the year, the amounts due from related parties
are as follows:
September 30 December 31
2000 1999
Due to Shareholder / Officer (President) $ 43,388 $ -
These balances are interest-free, payable on demand and have
arisen from payment of operating expenses on behalf of the
Company and provision of services referred to above.
5. Comparative Figures
The Company was incorporated on September 14, 1999 and
commenced operations during October 1999. During the period
September 14, 1999 to September 30, 1999 the business
activities of the Company were nominal, and as such statements
of operations and cash flow have not been included.
7
<PAGE>
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
We have had no changes in or disagreements with our accountants.
AVAILABLE INFORMATION
We have filed a registration statement on form SB-2 under the
Securities Act of 1933 with the Securities and Exchange Commission
with respect to the shares of our common stock offered through this
prospectus. This prospectus is filed as a part of that registration
statement and does not contain all of the information contained in
the registration statement and exhibits. Statements made in the
registration statement are summaries of the material terms of the
referenced contracts, agreements or documents of the company and are
not necessarily complete. We refer you to our registration statement
and each exhibit attached to it for a more complete description of
matters involving the company, and the statements we have made in
this prospectus are qualified in their entirety by reference to these
additional materials. You may inspect the registration statement and
exhibits and schedules filed with the Securities and Exchange
Commission at the Commission's principle office in Washington, D.C.
Copies of all or any part of the registration statement may be
obtained from the Public Reference Section of the Securities and
Exchange Commission, 450 Fifth Street, N.W., Washington, D.C. 20549
and at the regional offices of the Commission located at Seven World
Trade Center, 13th Floor, New York, NY 10048 and 500 West Madison
Street, Suite 1400, Chicago, IL 60661. Please call the Commission at
1-800-SEC-0330 for further information on the operation of the public
reference rooms. The Securities and Exchange Commission also
maintains a web site at http://www.sec.gov that contains reports,
proxy statements and information regarding registrants that file
electronically with the Commission. Our registration statement and
the referenced exhibits can also be found on this site.
26
<PAGE>
PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
ITEM 24. INDEMNIFICATION OF DIRECTORS AND OFFICERS
Our officers and directors are indemnified as provided by the Nevada
Revised Statutes and our bylaws.
Under the Nevada Revised Statutes, director immunity from liability
to a company or its shareholders for monetary liabilities applies
automatically unless it is specifically limited by a company's
Articles of Incorporation. Our Articles of Incorporation do not
specifically limit our directors immunity. Excepted from that
immunity are: (a) a willful failure to deal fairly with the company
or its shareholders in connection with a matter in which the director
has a material conflict of interest; (b) a violation of criminal law
,unless the director had reasonable cause to believe that his or her
conduct was lawful or no reasonable cause to believe that his or her
conduct was unlawful; (c) a transaction from which the director
derived an improper personal profit; and (d) willful misconduct.
Our bylaws provide that we will indemnify our directors and officers
to the fullest extent not prohibited by Nevada law; provided,
however, that we may modify the extent of such indemnification by
individual contracts with our directors and officers; and, provided,
further, that we shall not be required to indemnify any director or
officer in connection with any proceeding ,or part thereof, initiated
by such person unless such indemnification: (a) is expressly required
to be made by law, (b) the proceeding was authorized by our board of
directors, (c) is provided by us, in our sole discretion, pursuant to
the powers vested us under Nevada law or (d) is required to be made
pursuant to the bylaws.
Our bylaws provide that we will advance to any person who was or is a
party or is threatened to be made a party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of the fact that he is or
was a director or officer, of the company, or is or was serving at
the request of the company as a director or executive officer of
another company, partnership, joint venture, trust or other
enterprise, prior to the final disposition of the proceeding,
promptly following request therefor, all expenses incurred by any
director or officer in connection with such proceeding upon receipt
of an undertaking by or on behalf of such person to repay said
amounts if it should be determined ultimately that such person is not
entitled to be indemnified under our bylaws or otherwise.
Our bylaws provide that no advance shall be made by us to an officer
of the company ,except by reason of the fact that such officer is or
was a director of the company in which event this paragraph shall not
apply, in any action, suit or proceeding, whether civil, criminal,
administrative or investigative, if a determination is reasonably and
promptly made: (a) by the board of directors by a majority vote of a
quorum consisting of directors who were not parties to the
proceeding, or (b) if such quorum is not obtainable, or, even if
obtainable, a quorum of disinterested directors so directs, by
independent legal counsel in a written opinion, that the facts known
to the decision-making party at the time such determination is made
demonstrate clearly and convincingly that such person acted in bad
faith or in a manner that such person did not believe to be in or not
opposed to the best interests of the company.
27
<PAGE>
ITEM 25. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The estimated costs of this offering are as follows:
Securities and Exchange Commission registration fee $ 55
Federal Taxes $ NIL
State Taxes and Fees $ NIL
Transfer Agent Fees $ 1,000
Accounting fees and expenses $ 2,000
Legal fees and expenses $ 13,000
Blue Sky fees and expenses $ 2,000
Miscellaneous $ NIL
--------
Total $ 18,055
========
-------------------------------------------------------------------------
All amounts are estimates other than the Commission's registration fee.
We are paying all expenses of the offering listed above. No portion
of these expenses will be borne by the selling shareholders. The
selling shareholders, however, will pay any other expenses incurred
in selling their common stock, including any brokerage commissions or
costs of sale.
ITEM 26. RECENT SALES OF UNREGISTERED SECURITIES
We issued 5,000,000 shares of common stock on September 24, 1999 to
Mr. Robert Rosner and Mr. Carl Chow. Mr. Rosner and Mr. Chow are
both directors of our company. Mr. Rosner is our president and chief
executive officer. Mr. Chow is our secretary, treasurer. These
shares were issued pursuant to Section 4(2) of the Securities Act of
1933 at a price of $0.001 per share, for total proceeds of $5,000.
The 5,000,000 shares of common stock are restricted shares as defined
in the Securities Act.
We completed an offering of 1,990,000 shares of our common stock at a
price of $0.01 per share to a total of eight purchasers on November
15, 1999. The total amount received from this offering was $19,900.
We completed the offering pursuant to Regulation S of the Securities
Act. Each purchaser represented to us that he was a non-U.S. person
as defined in Regulation S. We did not engage in a distribution of
this offering in the United States. Each purchaser represented his
intention to acquire the securities for investment only and not with
a view toward distribution. Appropriate legends were affixed to the
stock certificate issued to each purchaser in accordance with
Regulation S. Each investor was given adequate access to sufficient
information about us to make an informed investment decision. None
of the securities were sold through an underwriter and accordingly,
there were no underwriting discounts or commissions involved. No
registration rights were granted to any of the purchasers.
We completed an offering of 67,500 common shares at a price of $0.10
per share to a total of eighteen purchasers pursuant to Regulation S
of the Securities Act on December 31, 1999. The total proceeds
realized from this offering were $6,750. Each purchaser represented
that he was a non-U.S. person as defined in Regulation S. We did not
engage in a distribution of this offering in the United States. Each
purchaser represented their intention to acquire the securities for
investment only and not with a view toward distribution. Appropriate
legends were affixed to the stock certificates issued in accordance
with Regulation S. All purchasers were given adequate access to
sufficient information about us to make an informed investment
decision. None of the securities were sold through an underwriter and
28
<PAGE>
accordingly, there were no underwriting discounts or commissions
involved. No registration rights were granted to any of the
purchasers.
ITEM 27. EXHIBITS.
EXHIBIT
NUMBER DESCRIPTION
-------- --------------------
3.1 Articles of Incorporation
3.2 By-Laws
4.1 Share Certificate
5.1 Opinion of Cane & Company, LLC, with consent to use
10.1 Acquisition Agreement dated October 5, 1999 between
the Company and Mr. Lance Morginn
23.1 Consent of BDO Dunwoody, LLP
27.1 Financial Data Schedule
ITEM 28. UNDERTAKINGS.
The undersigned registrant hereby undertakes:
1. To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(a) To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933;
(b) To reflect in the prospectus any facts or events arising
after the effective date of this registration statement, or
most recent post-effective amendment, which, individually
or in the aggregate, represent a fundamental change in the
information set forth in this registration statement; and
(c) To include any material information with respect to the
plan of distribution not previously disclosed in this
registration statement or any material change to such
information in the registration statement.
2. That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed
to be a new registration statement relating to the securities
offered herein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
3. To remove from registration by means of a post-effective amendment
any of the securities being registered hereby which remain unsold
at the termination of the offering.
Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to our directors, officers and
controlling persons pursuant to the provisions above, or otherwise,
we have been
29
<PAGE>
advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as
expressed in the Securities Act, and is, therefore, unenforceable.
In the event that a claim for indemnification against such
liabilities, other than the payment by us of expenses incurred or
paid by one of our directors, officers, or controlling persons in the
successful defense of any action, suit or proceeding, is asserted by
one of our directors, officers, or controlling person sin connection
with the securities being registered, we will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification is against public policy as expressed in the
Securities Act, and we will be governed by the final adjudication of
such issue.
30
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Act of 1933,
the registrant certifies that it has reasonable grounds to believe
that it meets all of the requirements for filing on Form SB-2 and
authorized this registration statement to be signed on its behalf by
the undersigned, in the City of Vancouver, Province of British
Columbia on January 2, 2001.
FIRST CYPRESS TECHNOLOGIES, INC.
/s/ Robert Rosner
By: ____________________________
Robert Rosner, President
POWER OF ATTORNEY
ALL MEN BY THESE PRESENT, that each person whose signature appears
below constitutes and appoints Robert Rosner, his true and lawful
attorney-in-fact and agent, with full power of substitution and re-
substitution, for him and in his name, place and stead, in any and
all capacities, to sign any and all pre- or post-effective amendments
to this registration statement, and to file the same with all
exhibits thereto, and other documents in connection therewith, with
the Securities and Exchange Commission, granting unto said attorneys-
in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite or necessary to be
done in and about the premises, as fully to all intents and purposes
as he might or could do in person, hereby ratifying and confirming
all that said attorneys-in-fact and agents, or any one of them, or
their or his substitutes, may lawfully do or cause to be done by
virtue hereof.
In accordance with the requirements of the Securities Act of 1933,
this registration statement was signed by the following persons in
the capacities and on the dates stated.
SIGNATURE CAPACITY IN WHICH SIGNED DATE
/s/ Robert Rosner President and Chief Executive January 2, 2001
------------------ Officer (Principal Executive
Robert Rosner Officer) and Director
/s/ Carl Chow Chief Financial Officer (Principal January 2, 2001
------------------ Financial/Accounting Officer),
Carl Chow Secretary, Treasurer and Director
31
