SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For the quarter ended November 30, 2000
AYOTTE MUSIC INC. 000-30683
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(Translation of Registrant's name into English) SEC File No.
2060 Pine Street, Vancouver, BC, Canada V6J 4P8
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(Address of principal executive offices)
[Indicate by check mark whether the Registrant files or will file annual reports
under cover of forms 20-F or Form 40-F.]
Form 20-F X Form 40-F
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[Indicate by check mark whether the Registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act 1934.]
Yes No X
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AYOTTE MUSIC INC. JANUARY 2, 2001
TO THE SHAREHOLDERS:
Ayotte Music Inc. has successfully added two new product lines to the retail
website. The new lines are Paiste Cymbals and AXIS Hardware.
Paiste Cymbals are manufactured in Switzerland and are world renown for their
high quality and unique sound characteristics. AXIS Hardware is manufactured in
Carson, California using structural grade aluminum and incorporate unique design
elements. These product additions will expand the product offered on our retail
website and enhance the Ayotte brand name. Management will continue to search
out other complementary products to add to the retail website.
We are experiencing positive results following the launch of our redesigned web
site and advertising campaign. We have experienced increased web traffic and
higher sales. Web traffic (as measured by user- sessions) has increased 32% and
sales have increased 38% from the previous quarter.
Ayotte Music Inc. was awarded the Marshall McLuhan Award for the Best Retail
Website presented at the inaugural eWorld Exhibition during Western Canada's
first ever Internet Awards ceremony held on October 25th, 2000.
Management is continuing to actively seek out other web-based business to merge
into the company.
Sincerely,
Louis Eisman
Acting President and CEO
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AYOTTE MUSIC INC.
Balance Sheet
November 30, 2000
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2000 1999
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ASSETS
CURRENT
Cash and term deposits $ 842,108 $ 257,898
Accounts receivable 148,795 300,602
Inventories 240,865 252,932
Prepaid expenses 24,880 5,007
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1,256,648 816,439
CAPITAL 206,818 255,322
PATENT 1,016 1,016
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$ 1,464,482 $ 1,072,777
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LIABILITIES
CURRENT
Accounts payable and accrued liabilities $ 110,087 $ 204,647
OBLIGATIONS UNDER CAPITAL LEASES - 11,641
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110,087 216,288
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SHAREHOLDERS' EQUITY
SHARE CAPITAL 3,019,737 2,525,737
DEFICIT (1,665,342) (1,669,248)
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1,354,395 856,489
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$ 1,464,482 $ 1,072,777
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AYOTTE MUSIC INC.
Statement of Operations and Deficit
Nine Months period ended November 30, 2000
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2000 1999
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SALES $ 1,098,340 $ 1,624,404
COST OF GOODS SOLD 674,940 1,173,829
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GROSS MARGIN 423,400 450,575
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EXPENSES
Advertising and promotion 71,282 158,670
Amortization 45,000 44,936
Auto 422 934
Bad debts 2,670 63,943
Bank charges and interest 24,940 20,327
Computer 3,480 9,875
Insurance 10,226 15,660
Internet and Website 28,995 -
Legal and accounting 23,567 42,151
Management fees 36,000 36,000
Office 9,615 18,052
Rent 6,639 79,407
Repairs and maintenance 1,900 9,103
Salaries and employee benefits 145,280 219,657
Telephone and fax 18,306 11,396
Utilities 2,165 17,596
*One Time Corporate expenses 97,097 -
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527,584 747,707
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INCOME (LOSS) FROM OPERATIONS (104,184) (297,132)
OTHER
Expense Recovery 44,049 -
Other income 20,939 483
Gain (loss) on foreign exchange 27,226 (7,484)
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NET INCOME (LOSS) FOR THE PERIOD (11,970) (304,133)
DEFICIT, beginning of period (1,653,372) (1365,115)
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DEFICIT, end of period $ (1,665,342) $ (1,669,248)
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Note: *Corporate Expenses are those expenses that relate to the SEC listing
and the search for other web based businesses.
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AYOTTE MUSIC INC.
Statement of Changes in Financial Position
Three Quarters ended November 30, 2000
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2000 1999
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CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES
Net Income (loss) for the period $ (11,970) $ (304,133)
Item not involving cash:
Amortization 45,000 44,936
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33,030 (259,197)
Net change in non-cash working capital 68,821 475,451
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101,851 216,254
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CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
Issuance of share capital 494,000 -
Capital leases (11,641) (2,965)
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482,359 (2,965)
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CASH USED FOR INVESTING ACTIVITIES
Purchase of capital assets - 984
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INCREASE (DECREASE) IN CASH POSITION 584,210 214,273
CASH POSITION, beginning of period 257,898 43,625
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CASH POSITION, end of period $ 842,108 $ 257,898
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AYOTTE MUSIC INC.
(Registrant)
Date: January 8, 2001 By: /s/ Don Mazankowski
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Don Mazankowski, General Manager
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