U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2000
Commission File No: 0-30583
CASTPRO.COM. INC.
-----------------
(Exact Name of small business issuer as Specified in its Charter)
Nevada 95-4774766
-------------------------------- ------------------------------------
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation)
11300 West Olympic Boulevard, Suite 730, Los Angeles, Ca. 90064
----------------------------------------------------------------
(Address of Principal Executive Office) (Zip Code)
(310) 231-7066
----------------------------------------------
Issuer's Telephone Number, Including Area Code
Indicate by check mark whether the issuer (1) filed all reports required to be
filed by Section 13 or 15 (d) of the Exchange Act during the past twelve months
(or for such shorter periods that the registrant was required to file such
reports) and (2) has been subject to such filing requirements for the past
ninety days.
Yes X No
-------------- --------------
The number of shares of issuers Common Stock, par value .001, outstanding as of
September 30, 2000 was 29,645,500 shares.
<PAGE>
PART I
FINANCIAL INFORMATION
Item 1 Financial Statements.
CASTPRO.COM, INC. AND SUBSIDIARY
(A Development Stage Company)
INDEPENDENT ACCOUNTANT'S INTERIM REVIEW REPORT
And
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2000 and September 30, 1999
<PAGE>
CASTPRO.COM, INC. AND SUBSIDIARY
(A Development Stage Company)
TABLE OF CONTENTS
September 30, 2000 and September 30, 1999
-----------------------------------------
Page
----
Independent Accountant's Review Report F-1
Consolidated Balance Sheet F-2
Consolidated Statement of Operations and Accumulated Deficit F-3 - F-4
Consolidated Statement of Stockholders' Equity F-5 - F-6
Consolidated Statement of Cash Flows F-7 - F-8
Notes to Consolidated Financial Statements F-9 - F-12
<PAGE>
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
--------------------------------------
To The Stockholders' and Board of Directors
CASTPRO.COM, Inc. and Subsidiary
Los Angeles, CA 90064
We have reviewed the accompanying consolidated balance sheet of Castpro.com,
Inc. and Subsidiary (a development stage company) as of September 30, 2000, and
the related consolidated statements of operations and accumulated deficit, and
consolidated cash flows for the nine months ended September 30, 2000 and three
months ended September 30, 1999, as well as the quarter ended September 30, 2000
and the quarter ended September 30, 1999, in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. All information included in these financial
statements is the representation of the management of Castpro.com, Inc.
A review consists principally of inquiries of company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements in order for them to be in
conformity with generally accepted accounting principles.
/s/Brad B. Haynes
-----------------
Brad B. Haynes
Los Angeles, California
November 8, 2000
F-1
<PAGE>
CASTPRO.COM, INC. and Subsidiary
(A Development Stage Company)
CONSOLIDATED BALANCE SHEET
--------------------------
September 30, 2000
------------------
ASSETS
------
CURRENT ASSETS
Cash $ 20,224
Accounts receivable 42,937
Prepaid expenses 167
-----------
Total Current Assets $ 63,328
===========
PROPERTY AND EQUIPMENT
(Net of $116,897 depreciation) 558,269
OTHER ASSETS
Deposits 34,217
-----------
TOTAL ASSETS $655,814
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Accounts payable 28,846
Accrued expenses payable 59,869
Payroll taxes payable 42,190
Related party notes payable 77,250
Income tax payable 800
-----------
Total Current Liabilities 208,955
===========
STOCKHOLDERS' EQUITY
Capital Stock, authorized; 100,000,000
shares of Common Stock @ .001,
issued and outstanding 29,695,500 29,696
Additional paid-in capital 1,493,204
Accumulated deficit during development stage (1,076,041)
------------
Total Stockholders' Equity 446,859
============
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 655,814
-----------
See accountant's review report and accompanying notes
F-2
<PAGE>
<TABLE>
<CAPTION>
CASTPRO.COM, INC. and Subsidiary
(A Development Stage Company)
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
------------------------------------------------------------
For the Periods
---------------
January 12, 1999
Nine Months Ended Nine Months Ended (Date of Inception)
September 30, 2000 September 30, 1999 to September 30, 2000
------------------ ------------------ ---------------------
<S> <C> <C> <C>
REVENUES $ 152,301 $ 0 $ 152,301
EXPENSES
General, Sales and
Administrative Expenses 929,292 59,920 1,226,742
------------ ------------ ------------
(LOSS) FROM OPERATIONS (776,991) (59,920) (1,074,441)
PROVISION FOR INCOME TAXES 800 800 1,600
------------ ------------ ------------
NET LOSS (777,791) (60,720) (1,076,041)
ACCUMULATED LOSS
DURING THE DEVELOPMENT STAGE -
beginning (298,250) 0 0
------------ ------------ ------------
ACCUMULATED LOSS
DURING THE DEVELOPMENT STAGE - end $ (1,076,041) $ (60,720) $ (1,076,041)
------------ ------------ ------------
BASIC AND DILUTED WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING 14,957,734 0 14,957,734
------------ ------------ ------------
BASIC LOSS PER COMMON SHARE $ (.05) $ 0 $ (.07)
------------ ------------ ------------
DILUTED LOSS PER COMMON SHARE $ (.05) $ 0 $ (.07)
------------ ------------ ------------
</TABLE>
See accountant's review report and accompanying notes
F-3
<PAGE>
<TABLE>
<CAPTION>
CASTPRO.COM, INC. and Subsidiary
(A Development Stage Company)
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
------------------------------------------------------------
For the Periods
---------------
Three Months Ended Three Months Ended
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
REVENUES $ 92,816 $ 0
EXPENSES
General, Sales and Administrative Expenses 331,160 59,920
------------ ------------
(LOSS) FROM OPERATIONS (238,344) (59,920)
PROVISION FOR INCOME TAXES 800 800
NET LOSS (239,144) (60,720)
ACCUMULATED LOSS DURING THE DEVELOPMENT STAGE - beginning
(836,897) 0
------------ ------------
ACCUMULATED LOSS DURING THE DEVELOPMENT STAGE - end
$ (1,076,041) $ (60,720)
------------ ------------
BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING 25,076,200 0
------------ ------------
BASIC LOSS PER COMMON SHARE $ (.01) $ 0
------------ ------------
DILUTED LOSS PER COMMON SHARE $ (.01) $ 0
------------ ------------
</TABLE>
See accountant's review report and accompanying notes
F-4
<PAGE>
<TABLE>
<CAPTION>
CASTPRO.COM, INC. and Subsidiary
(A Development Stage Company)
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
----------------------------------------------
For The Period January 12, 1999 (Date of Inception) to September 30, 2000
-------------------------------------------------------------------------
Accumulated
Common Stock Additional Deficit During Total
-------------- Paid-In Development Stockholders'
Shares Par Value Amount Capital Stage Equity
------ --------- ------ ------- ----- ------
<S> <C> <C> <C> <C> <C> <C>
January 12, 1999 -- -- -- -- -- --
December 31, 1999
Issuance of Common Shares 8,000,000 .001 $8,000 -- -- $ 8,000
April 4, 1999
Contribution by LLC
principal of fixed assets 4,900 4,900
December 31, 1999
Recapitalization/reorganization 388,500 .001 389 (389) --
December 31, 1999
Conversion of debt to Common Stock 825,000 .001 825 824,175 825,000
December 31, 1999
Accumulated deficit
during development stage (298,250) (298,250)
---------- ---------- ---------- ---------- ---------- ----------
Balance December 31, 1999 9,213,500 .001 $9,214 $828,686 $(298,250) $539,650
</TABLE>
See accountant's review report and accompanying notes
F-5
<PAGE>
<TABLE>
<CAPTION>
CASTPRO.COM, INC. and Subsidiary
(A Development Stage Company)
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
----------------------------------------------
For The Period January 12, 1999 (Date of Inception) to September 30, 2000
continued
------------------------------------------------------------------------------
Accumulated
Common Stock Additional Deficit During Total
-------------- Paid-In Development Stockholders'
Shares Par Value Amount Capital Stage Equity
------ --------- ------ ------- ----- ------
<S> <C> <C> <C> <C> <C>
March 31, 2000
Conversion of debt
to Common Stock 635,000 .001 635 634,365 635,000
March 31, 2000
Accumulated deficit during
development stage (274,031) (274,031)
---------- ---------- ---------- ---------- ---------- ----------
Balance March 31, 2000 9,848,500 001 $ 9,849 $1,463,051 $(572,281) $ 900,619
June 30, 2000
Conversion of debt
to Common Stock 50,000 .001 50 49,950 50,000
June 30, 2000
Accumulated deficit
during development stage (264,616) (264,616)
---------- ---------- ---------- ---------- ---------- ----------
Balance June 30, 2000 9,898,500 001 $ 9,899 $1,523,001 $(836,897) $ 686,003
July 21, 2000
Forward split of 3 shares for
each share increases number of
shares 19,797,000 001 19,797 (19,797)
September 30, 2000
Accumulated deficit
during development stage (239,144) (239,144)
---------- ---------- ---------- ---------- ---------- ----------
Balance September 30, 2000 29,695,500 .001 $ 29,696 $1,493,204 $(1,076,041) $ 446,859
---------- ---------- ---------- ---------- ---------- ----------
</TABLE>
See accountant's review report and accompanying notes
F-6
<PAGE>
<TABLE>
<CAPTION>
CASTPRO.COM, INC. And Subsidiary
(A Development Stage Company)
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
For the Periods
---------------
January 12, 1999
Nine Months Ended Nine Months Ended (Date of Inception)
September 30, 2000 September 30, 1999 to September 30, 2000
------------------ ------------------ ---------------------
CASH FLOW FROM OPERATING ACTIVITIES
<S> <C> <C> <C>
Net Loss $ (777,791) $ (60,720) $(1,076,041)
Adjustments to reconcile Net Loss:
To Net Cash Used By
Operating Activities
Depreciation 84,600 0 116,897
Stock Issued for Services 0 0 8,000
----------- ----------- -----------
Total Adjustments 84,600 0 124,897
(INCREASE) DECREASE IN ASSETS
Accounts Receivable (42,937) 0 (42,937)
Prepaid Expenses 15,817 0 (167)
Deposits 97,167 (29,274) (34,217)
Other Assets 1,433 0 (0)
INCREASE (DECREASE) IN LIABILITIES
Accounts Payable 28,846 0 28,846
Accrued Expenses 43,077 0 59,869
Payroll Taxes Payable 37,982 0 42,190
Income Taxes Payable 0 0 800
----------- ----------- -----------
NET CASH USED BY OPERATING ACTIVITIES (511,806) (89,994) (896,760)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (361,163) (48,327) (670,266)
CASH FLOWS FROM FINANCING ACTIVITIES
Funds Received by Issuing Note Payable
(Converted to Equity) 685,000 250,060 1,510,000
Increase in Related Party Note Payable 77,250 0 77,250
----------- ----------- -----------
NET CASH (USED BY) ALL ACTIVITIES (110,719) 111,739 20,224
CASH - Beginning 130,943 0 0
----------- ----------- -----------
CASH - End $ 20,224 $ 111,739 $ 20,224
----------- ----------- -----------
SUPPLEMENTAL CONSOLIDATED
CASH FLOWS INFORMATION
Income Tax $ 0 $ 0 $ 0
----------- ----------- -----------
Interest $ 198 $ 0 $ 198
----------- ----------- -----------
</TABLE>
See accountant's review report and accompanying notes
F-7
<PAGE>
<TABLE>
<CAPTION>
CASTPRO.COM, INC. And Subsidiary
(A Development Stage Company)
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Periods
Three Months Ended Three Months Ended
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES
Net Loss $(239,144) $ (60,720)
Adjustments to reconcile Net Loss:
To Net Cash Used By Operating
Activities
Depreciation 33,895 0
--------- ---------
Total Adjustments 33,895 0
(INCREASE) DECREASE IN ASSETS
Accounts Receivable (4,627) 0
Prepaid Expenses 2,265 0
Deposits (895) (29,274)
Other Assets 1,194 0
INCREASE (DECREASE) IN LIABILITIES
Accounts payable 28,846 0
Accrued expenses 38,309 0
Payroll taxes payable 27,911 0
--------- ---------
NET CASH USED BY OPERATING ACTIVITIES (112,246) (89,994)
---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (11,893) (48,327)
CASH FLOWS FROM FINANCING ACTIVITIES
Funds Received by Issuing Note Payable (Converted to
Equity) 0 250,060
Increase in Related Party Note Payable 77,250 0
--------- ---------
NET CASH (USED BY) ALL ACTIVITIES (46,889) 111,739
--------- ---------
CASH - Beginning 67,113 0
--------- ---------
CASH - End $ 20,224 $ 111,739
--------- ---------
SUPPLEMENTAL CONSOLIDATED
CASH FLOWS INFORMATION
Income Tax $ 0 $ 0
--------- ---------
Interest $ 66 $ 0
--------- ---------
NON-CASH FINANCING TRANSACTION
A three to one forward stock split resulted in an increase to capital stock
19,797,000 x $.001 par values of $19,97 and a decrease of $19,797 to additional
paid in capital
</TABLE>
See accountant's review report and accompanying notes
F-8
<PAGE>
CASTPRO.COM, INC. And Subsidiary
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
September 30, 2000 and September 30, 1999
-----------------------------------------
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Formation and Description of Business
Quinntal, International, LLC (California Incorporated) was formed on
January 12, 1999. The LLC changed its name to CASTPRO.COM, LLC on August
6, 1999. Effective December 31, 1999 the shareholders of LLC exchange
400 shares of LLC (representing 100% of all shares) for 8,000,000 shares
of Deep Earth, Inc. formerly Engineering Services, Inc. (a Nevada
corporation). At the time of the business combination Deep Earth, Inc.
was an active public shell and had no assets or liabilities. Since the
former controlling shareholders of the LLC controlled Deep Earth, Inc.
after the business combination, the transaction has been accounted for
as a reverse acquisition. Immediately prior to the business combination,
Deep Earth, Inc. had 388,500 shares outstanding. Simultaneous with the
closing of the business combination, $825,000 of related party debt was
exchanged for 825,000 shares of common stock of CASTPRO.COM, INC. Deep
Earth, Inc. changed its name to CASTPRO.COM, INC. on December 31, 1999.
CASTPRO.COM, INC. is a provider of live, on-location digital webcast
productions for corporations and major event marketeers. The Company
specializes in streaming media production of concerts, tradeshows,
interviews, sporting events and movie premiers. The Company also
produces streaming media for key business-related events such as
shareholders meetings, press release and earnings announcements, product
launches and training sessions. The Company is a development stage
company and has not as yet generated any significant revenues.
Principles of Consolidation
---------------------------
The Consolidated Financial Statements include the accounts of
CASTPRO.COM, INC. and its wholly owned subsidiary CASTPRO.COM, LLC. All
significant intercompany transactions and balances have been eliminated
for the quarter ended June 30, 2000 and the quarter ended June 30, 1999.
The year end selected was December 31st.
Cash Equivalents
Cash equivalents consist of funds invested in money market accounts and
investments with a maturity of three months or less when purchased.
There were no cash equivalents for the quarter ended September 30, 2000
and for the quarter ended September 30, 1999.
Use of Estimates
----------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in financial statements and
accompanying notes. Actual results could differ from those estimates.
F-9
<PAGE>
CASTPRO.COM, INC. And Subsidiary
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
----------------------------------------------------
September 30, 2000 and September 30, 1999
-----------------------------------------
Issuance of Shares for Service
Valuation of shares for services is based on the estimated fair market
value of the services performed.
Loss Per Share
In February 1997, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 128 "Earnings Per Share." The statement replaced primary
EPS with basic EPS which is computed by dividing reported earnings
available to common shareholders by weighted average shares outstanding.
The provision requires the calculation of diluted EPS. The company uses
the method specified by the statement.
Income Taxes
The Company's uses the liability method of accounting for income taxes
specified by SFAS No. 109, "Accounting for Income Taxes", whereby
deferred tax liabilities and assets are determined based on the
difference between financial statements and tax bases of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse. Deferred tax assets are recognized
and measured based on the likelihood of realization of the related tax
benefit in the future. The Company had no material net deferred tax
assets or liabilities at September 30, 2000 and September 30, 1999.
2. PROPERTY AND EQUIPMENT
Property and Equipment are stated at cost or fair values at the date of
acquisition and, in the case of equipment under capital lease, the
present value of minimum lease payments. Depreciation and amortization
of property and equipment are computed using the straight-line method
over the following estimated useful lives:
Equipment and Computers 5 years
Leasehold Improvements 5 years (term of lease)
Furniture, Fixtures and Equipment 5 years
Depreciation expense for the quarter ended September 30, 2000 was 33,895
and for the quarter ended September 30, 1999 was zero.
Property and equipment consists primarily of computers and communication
equipment. The recorded amount of property and equipment capitalized and
the related accumulated depreciation is as follows:
Mobile production unit $357,198
Computer equipment 105,099
Production equipment 109,545
Office equipment 16,338
F-10
<PAGE>
CASTPRO.COM, INC. And Subsidiary
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
----------------------------------------------------
September 30, 2000 and September 30, 1999
-----------------------------------------
Software 14,554
Other equipment 35,759
Furniture and fixtures 22,138
Phone system 3,444
Security system 4,195
Truck 1,900
Leasehold improvements 4,996
--------
Total property and equipment $675,166
Less: accumulated depreciation 116,897
--------
PROPERTY AND EQUIPMENT (NET) $558,269
--------
3. RELATED PARTY NOTES PAYABLE
---------------------------
A related party corporation has loaned the Corporation $77,250 secured
by a demand note with interest at the lesser of 1% per month or the
maximum allowed under the laws of the State of California.
4. ADVERTISING
-----------
Advertising is expensed as incurred.
5. LEASE COMMITMENTS
-----------------
Operating Lease
---------------
The Company utilizes corporate office space in Los Angeles, California
currently under lease by CASTPRO.COM, a California LLC, from the lessor
M.P.I. LTD. The five year lease calls for minimum monthly payments of
$5,297.20 on 2,788 rental square feet and expires on September 14, 2004.
The Company has paid a security deposit of $29,274. Rent expense for the
quarter ended September 30, 2000 was $16,436 and for the quarter ended
September 30, 1999 was zero.
Future minimum lease payments associated with the lease described
herein, including rent increase of 2.6% per year:
Year Ended September 30
-----------------------
2000 $15,891
2001 65,727
2002 67,400
2003 69,073
2004 49,766
--------
TOTAL $267,857
--------
F-11
<PAGE>
CASTPRO.COM, INC. And Subsidiary
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued
September 30, 2000 and September 30, 1999
The Company utilized warehouse space in Los Angeles, California
currently under lease by CASTPRO.COM, INC., a California corporation.
From Off Broadway Partners, a California General Partnership, the three
year lease calls for minimum monthly payments of $1,761.40 on
approximately 2,985 square feet and expires on December 31, 2002. The
Company has paid a security deposit of $3,522.80. Rent expense for the
quarter ended September 30, 2000 was $5,284 and for the quarter ended
September 30, 1999 was zero.
Future minimum lease payments associated with the lease described
herein:
Year Ended September 30
2000 $5,284
2001 21,136
2002 21,136
-------
TOTAL $47,556
-------
6. STOCK SPLIT
-----------
On July 14, 2000, the Board of Directors of the Company declared a 3 for
1 forward stock split, effective July 21, 2000 for shareholders of
record on July 17, 2000. As of July 21, 2000, there were 29,695,500
shares outstanding.
7. SUBSEQUENT EVENTS
Castpro.com, Inc. subleased office and studio space (10,400 square feet)
from Overseas Investment Banking Alliance S.A. located at 1543 West
Olympic Boulevard, Los Angeles, California 90015 on October 1, 2000. The
sublease calls for a $12,400 monthly rent. Term of the sublease is five
years ended September 30, 2005. Subtenant has the right to sublet the
premises.
Future minimum lease payments associated with the lease described
herein, including rent increases of 7% per year:
Year Ended September 30
2000 $24,800
2001 150,536
2002 161,074
2003 172,352
2004 184,418
All other years 146,286
---------
TOTAL $839,466
---------
F-12
<PAGE>
Item 2 Management's Discussion and Analysis or Plan of Operations
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Management's discussion and analysis should be read in conjunction with the
Company's financial statements and the notes thereto.
The following table sets forth, for the periods indicated, certain statements of
operations and retained deficit data for the Company expressed as a percentage
of net sales:
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
2000 1999 2000 1999
--------- --------- --------- ---------
Net sales $ 92,816 $ 0 $ 152,301 $ 0
Cost of sales -- -- -- --
--------- --------- --------- ---------
Gross profit 92,816 0 152,301 0
Administrative and
general expenses 301,094 59,920 929,094 59,920
Development expense
Loss from operations (238,278) (59,920) (776,793) (59,920)
Interest expense 66 -- 198 --
--------- --------- --------- ---------
Income (loss) before
income taxes (238,341) (59,920) (776,991) (59,920)
Provision for
income taxes (800) (800) (800) (800)
--------- --------- --------- ---------
Net income (loss) $(239,141) (60,720) $(777,791) $ (60,720)
========= ========= ========= =========
2
<PAGE>
THREE MONTHS ENDED SEPTEMBER 30, 2000 VERSUS THREE MONTHS ENDED SEPTEMBER
30,1999.
RESULTS OF OPERATIONS
The Company incurred a net loss of $(239,144) for the period ended September 30,
2000 as compared to a net loss of $(60,720) for the period ended September 30,
1999. This loss represents a loss from operations of $(239,144) and $(60,720)
for the period ended June 30, 2000 and 1999, respectively. The net loss also
includes interest expense and other finance charges totaling $66 and $0 for the
period ended September 30, 2000 and 1999, respectively.
Total revenues for the period ended September 30, 2000 were $92,816 as compared
to $0 for the period ended September 30, 1999. This represents an increase in
revenues of $92,816 over the same period in the prior year.
Total operating expenses consist primarily of development expenses and general
and administrative expenses. For the period ended September 30, 2000, total
operating expenses were $331,160. For the period ended September 30, 1999, total
operating expenses were $59,920. This represents a $271,740 increase over the
same period in the prior year.
General and administrative expenses for the period ended September 30, 2000 was
$331,094 as compared to $9,920 for the period ended September 30, 1999. This
represents an increase of $271,174 over the same period in the prior year. This
increase was caused by higher professional fees due to the various filings and
money-raising activities done by the Company, increases in salaries and wages
due to hiring of additional employees, increases in travel and trade show
expenses, and the amortization of costs relating to acquiring proprietary
software.
NINE MONTHS ENDED SEPTEMBER 30, 2000 VERSUS NINE MONTHS ENDED SEPTEMBER 30,
1999.
RESULTS OF OPERATIONS
The Company incurred a net loss of $(777,791) for the period ended September 30,
2000 as compared to a net loss of $(60,920) for the period ended September 30,
1999. This loss represents a loss from operations of $(776,991) and $(59,920)
for the period ended September 30, 2000 and 1999, respectively. The net loss
also includes interest expenses and other finance charges totaling $198 and $0
for the period ended September 30, 2000 and 1999, respectively.
Total revenues for the period ended September 30, 2000 were $52,301 as compared
to $0 for the period ended September 30, 1999. This represents an increase in
revenues of $152,301 over the same period in the prior year.
Total operating expenses consist primarily of development expenses and general
and administrative expenses. For the period ended September 30, 2000, total
operating expenses were $929,292. For the period ended September 30, 1999, total
operating expenses were $59,920. This represents a $869,372 increase over the
same period in the prior year.
3
<PAGE>
General and administrative expenses for the period ended September 30, 2000 was
$929,094 as compared to $59,920 for the period ended September 30, 1999. This
increase was caused by higher professional fees due to the various filings and
money-raising activities done by the Company, increases in salaries and wages
due to hiring of additional employees, increases in travel and trade show
expenses, and the amortization of costs relating to acquiring proprietary
software.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2000, the Company had cash and cash equivalents of $20,224
as compared to cash and cash equivalents of $0 as of September 30, 1999. At
September 30, 1999, the Company had a working capital periodically(total current
11,779 assets in excess of total current liabilities) of $138,261 as compared to
a working capital deficiency (10 billion total current liabilities in excess of
current assets) of $145,627 as of September 30, 2000. Net cash used in operating
activities was $112,246 for the period ended September 30, 2000 and $49,894 for
the period ended September 30, 1999. The principal use of cash for the period
ended September 30, 2000 was to fund the net loss from operations for the
period. The Company borrowed a total of $763,250 from June 30,1999 through
September 30, 2000. 685,000 of such, debt was converted into 685,000 shares of
the Company's common stock, and this was used to fund the net loss from
operations, as well as to purchase equipment.
Net cash from financing activities was $767,230 for the period ended September
30, 2000 as compared to $250,000 for the period ended September 30, 1999.
4
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities.
Not Applicable.
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None
Item 6. Exhibit and Reports on Form 8-K
A. Exhibits:
None.
B. Reports on Form 8-K:
None
5
<PAGE>
SIGNATURES
----------
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
CASTPRO.COM, INC.
-----------------
Registrant
Date: November 20, 2000 By: /s/ Jim Ocon
----------------------- ----------------
Jim Ocon, Vice President
6
