U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______ to ______
Commission File Number: 0-28773
Tutornet.com Group, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 65-0910071
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
14120 Newbrook Drive, Suite 101
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(Address of principal executive offices) (Zip Code)
(703) 961-9666
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(Registrant's telephone number, including area code)
N/A
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(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
[x] Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at June 30, 2000
Common stock, par value $.00001 4,750 million
Part I - Financial Information
Item 1. Financial Statements
<TABLE>
<CAPTION>
Consolidated Condensed Statements of Income
Unaudited Unaudited Unaudited Audited
3-Months Ended 6-Months Ended 3-Months Ended Year Ended
June 30, 2000 June 30, 2000 March 31, 2000 31-Dec-99
<S> <C> <C> <C> <C>
Net Consulting Fees & Sales 88 27,464 27,376 132,126
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Cost Of Fees:
Consultants & Subcontractors 267,583 772,228 504,645 1,665,868
Computer Systems Support 2,644 6,603 3,959 76,361
Customer Service Expenses 0 0 0 0
Amortization of Software Costs 66,468 132,936 66,468 247,091
Depreciation of Computer Equipment 11,784 11,784 0 47,136
Factoring Expense 0 0 0 0
Gross Margin Expense 0 0 0 0
Printing & Reproduction 1,905 1,954 49 176,478
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Total Costs Of Fees 350,385 925,506 575,121 2,212,934
Gross Profit 350,298 898,043 547,745 2,080,808
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Selling, General & Administrative Expenses 838,880 3,713,903 2,875,023 9,873,218
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Income (Loss) From Operations 1,189,177 4,611,945 3,422,768 11,954,026
Discontinued Operations 0 0 0 0
Loss on Disposal of Subsidiary 0 0 0 0
Abacus II of Colorado 0 0 0 0
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1,189,177 4,611,945 3,422,768 11,954,026
Other Income (Expenses):
Interest & Dividend Income 535 5,347 4,812 44,035
Interest Expense 26,454 52,908 26,454 110,043
Loss on Investment in Tutornet UK 0 39,375 39,375 680,000
Loss on Foreign Currency Exchange 0 98 98 1,503
Realized Gains on Sales of Marketable Securities 0 0 0 754,908
Miscellaneous (Expense) 0 745 745 8,717
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25,919 87,779 61,860 1,320
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Net Loss Before Extraordinary Item 1,215,096 4,699,724 3,484,628 11,955,346
Extraordinary Item 0 0 0 0
Gain From Extinguishment of Debt 0 0 0 0
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Loss/Gain Before Income Taxes 1,215,096 4,699,724 3,484,628 11,955,346
Income Taxes 0 0 0 190,589
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Net Loss 1,215,096 4,699,724 3,484,628 11,764,757
Minority Interest in Net Loss/Gain 595,154 2,302,051 1,706,897 5,762,378
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Net Loss 619,942 2,397,673 1,777,731 6,002,379
============= ============= ============= ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Consolidated Condensed Balance Sheets
Assets
Unaudited Unaudited Audited
6-Months Ended 3-Months Ended Year Ended
June 30, 2000 June 30, 2000 March 31, 2000
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<S> <C> <C> <C>
Current Assets:
Cash 60,424 208,559 115,220
Accounts Receivable, Net of Allowance for Doubtful Accou 147,176 13,424 15,785
Marketable Securities, At Market Value 570,963 570,963 570,963
Prepaid Expenses 529,447 473,329 631,105
Deferred Taxes 336,130 336,130 336,130
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Total Current Assets 1,644,141 1,602,405 1,669,203
Fixed Assets:
Office Furniture & Fixtures 11,687 16,031 16,031
Office Equipment 127,717 127,717 127,717
Computer Hardware & Peripherals 959,702 829,798 829,738
Computer Network 12,873 13,248 12,873
Leasehold Improvements (Net of Accumulated Amortization) 10,804 32,663 33,531
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1,122,782 1,019,457 1,019,890
Less: Accumulated Depreciation 133,929 101,396 54,287
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Total Fixed Assets 1,256,711 918,061 965,603
Other Assets:
Computer Software, Net of Accumulated Amortization 900,030 1,006,298 1,071,365
Software Development Costs 0 0 0
Goodwill, Net of Accumulated Amortization 330,066 424,196 424,196
Deposits 89,106 171,182 171,182
Other 0 0 0
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Total Other Assets 1,319,203 1,601,676 1,666,743
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Total Assets 4,220,055 4,122,142 4,301,549
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Liabilities
Unaudited Unaudited Audited
6-Months Ended 3-Months Ended Year Ended
June 30, 2000 June 30, 2000 March 31, 2000
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<S> <C> <C> <C>
Current Liabilities:
Accounts Payable 3,619,940 4,138,596 2,617,495
Notes Payable CSR Stockholders 52,500 52,500 52,500
Accrued Gross Margin on Contract 0 0 0
Accrued Salaries & Wages 364,402 490,392 0
Accrued Interest 48,025 5,422 5,422
Accrued & Withheld Payroll Taxes 496,922 136,211 39,187
Income Taxes Payable 5,637 29,691 29,691
Officer Loan Payable 0 0 0
Shareholder Loan Payable 5,625,340 5,625,340 5,625,340
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Total Current Liabilities 10,212,766 10,478,152 8,369,635
Long Term Liabilities:
Subordinated Shareholder Loans Payable 832,029 977,703 947,028
Deferred Income Taxes 29,450 29,450 29,450
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Total Liabilities 11,074,246 11,485,305 9,346,113
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Minority Interest In Net Assets 2,397,673 3,776,767 2,477,750
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SHAREHOLDER'S EQUITY
Common Stock,
Class A, ($ 0.00001 Par Value; 950,000,000 Authorized 16306356
Issued and Outstanding as of June 30, 2000 and
28,307,050 outstanding in 1999) 163 163 163
Class B, ($0.00001 Par Value; 50,000,000 Authorized
4,750,000 Outstanding as of June 30, 2000 ) 48 48 48
Preferred Stock
(10,000,0000 Authorized with a Par Value of $ 0.00001
and none iissued at June 30, 2000) 0 0 0
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211 211 211
Additional Paid In Capital 7,353,524 6,230,641 3,708,691
Retained Earnings (Deficit) 11,810,253 9,817,248 6,275,716
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Total Shareholders' Equity (Deficit) 4,456,518 3,586,396 2,566,814
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Total Liabilities & Shareholder's Equity 4,220,055 4,122,142 4,301,549
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</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The accompanying comparative financial statements have been prepared assuming
the Company will continue to operate as a going concern. The Company's
accumulated accumulated deficit continues to increase and together with
insufficient working capital, management has expressed doubt about the
Company's ability to continue as a going concern beyond the next 60 days.
The Company is in discussion with several entities seeking
alternate sources of capital to satisfy these deficiencies.
Item 3. Quantitative and Qualitative Disclosures About Market Risk - N/A
Part II - Other Information
Item 1. Legal Proceedings - N/A
Item 2. Changes in Securities and Use of Proceeds - N/A
Item 3. Defaults Upon Senior Securities - N/A
Item 4. Submission of Matters to a Vote of Security Holders - N/A
Item 5. Other Information - N/A
Item 6. Some Exhibits and Reports on Form 8-K - N/A
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.
Euburn R. A. Forde
___________________________________
(Registrant)
August 21, 2000 Euburn R. A. Forde
__________________________________ ___________________________________
Date (Signature)**
___________________________________ ___________________________________
Date (Signature)**
Tutornet.com Group, Inc.
