UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2000
[ ] 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 0-7619
Asia SuperNet Corporation
----------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Colorado 93-0636333
------------------------------ ------------------
(State or other jurisdiction of (I.R.S. Employer
corporation or organization) Identification No.
1700 Lincoln St. Suite 3200 Denver, Co 80203
--------------------------------------------
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code: (303) 860-1700
--------------
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.
Yes [ ] No [X]
As of May 20, 2000, 1,185,209 shares of common stock, $.001 par value, were
issued and outstanding.
<PAGE>
ASIA SUPERNET CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Page No.
Item 1. Financial Statements
Condensed Balance Sheets as of March 31, 2000 (Unaudited)
and December 31, 1999 3
Condensed Statements of Operations for the three months ended
March 31, 2000 and 1999 (Unaudited) 4
Condensed Statements of Cash Flows for the three months ended
March 31, 2000 and 1999 (Unaudited) 5
Notes to the Condensed Financial Statements 6
Item 2. Management Discussion and Analysis of Financial Condition and
Results of Operations 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 7
Item 2. Changes in Securities 7
Item 3. Defaults Upon Senior Securities 7
Item 4. Submission of Matters to a Vote of Security Holders 8
Item 5. Other Information 8
Item 6. Exhibits and Reports on Form 8-K 8
Signatures 8
2
<PAGE>
ASIA SUPERNET CORPORATION
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CONDENSED BALANCE SHEETS
(United States Dollars)
As of March 31, As of December 31,
ASSETS 2000 1999
- ------ -------------- -----------------
<S> <C> <C>
Current assets:
Cash and cash equivalents ........................................ $ 9,131 $ 9,176
Prepaid and other current assets ................................. 21,301 21,301
----------- -----------
Total current assets ................................................ 30,432 30,477
PROPERTY, PLANT AND EQUIPMENT, NET .................................. 2,795 3,194
----------- -----------
Total assets ........................................................ $ 33,227 $ 33,671
=========== ===========
LIABILITIES AND SHAREHOLDERS' DEFICIT
- -------------------------------------
Current liabilities:
Accounts payable ................................................. $ 144,560 $ 123,821
Margin loan payable (Note 3) ..................................... 2,472,722 2,472,722
Accrued expenses and other liabilities ........................... 83,577 82,182
Amounts payable to related parties ............................... 72,738 72,738
----------- -----------
Total current liabilities ........................................... 2,773,597 2,751,463
----------- -----------
Commitments and Contingencies
Shareholders' (deficit) equity:
Preferred stock, $5 par value, 25,000,000 shares
authorized, unissued ........................................... -- --
Common stock, $.001 par value, 900,000,000 shares
authorized; issued and outstanding 1,189,005 shares ............ 1,189 1,189
Paid in capital .................................................. 6,539,702 6,539,702
Accumulated deficit .............................................. (9,281,261) (9,258,683)
----------- -----------
Total shareholders' (deficit) equity ................................ (2,740,370) (2,717,792)
----------- -----------
Total liabilities and shareholders' (deficit) equity ................ $ 33,227 $ 33,671
=========== ===========
</TABLE>
See the accompanying notes to the condensed financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
ASIA SUPERNET CORPORATION
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
(United States Dollars)
Three months ended March 31,
2000 1999
---- ----
<S> <C> <C>
Revenues:
Rental income .................................................... $ 15 $ 84,166
Investment income ................................................ -- 563
Other income ..................................................... -- 1,580
----------- -----------
Total revenues ...................................................... 15 83,309
----------- -----------
Expenses:
Depreciation ..................................................... 399 8,797
Legal and professional fees ...................................... 22,134 17,544
Consulting fees paid to a related company ........................ -- 125,000
Interest expense ................................................. -- 111,939
Foreign exchange (gain) loss ..................................... -- (18,827)
Land lease ....................................................... -- 18,224
Rental real estate management fees ............................... -- 5,169
Salaries ......................................................... -- 9,233
Other operating and administrative fees .......................... 60 32,144
----------- -----------
Total expenses ................................................. 22,593 328,050
----------- -----------
Net loss ............................................................ $ (22,578) $ (222,914)
=========== ===========
Earnings (loss) per share (basic and diluted)
Net loss per share ............................................. $ (0.02) $ (0.43)
=========== ===========
Weighted average number of shares of common stock outstanding ....... 1,189,005 518,652
=========== ===========
</TABLE>
See the accompanying notes to the condensed financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
ASIA SUPERNET CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(United States Dollars)
Three months ended March 31,
2000 1999
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ............................................................. $ (22,578) $(222,914)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization ..................................... 399 8,797
Changes in working capital components:
Accounts receivable ............................................... -- (896)
Prepaid and other current assets .................................. -- (20,220)
Amounts receivable form related parties ........................... -- (4,273)
Accounts payable and accrued expenses ............................. 22,134 (40,685)
Amounts due to related parties .................................... -- 230,703
Exchange difference ............................................... -- (15,485)
--------- ---------
Net cash used in operating activities ........................... (45) (64,973)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment ........................ -- (16,346)
--------- ---------
Net cash used in investing activities ............................. -- (16,346)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in margin loan payable ................................... -- 32,811
Mortgage loan repaid .............................................. -- 12,465
--------- ---------
Net cash provided by (used in) financing activities ............... -- 45,276
--------- ---------
NET INCREASE IN CASH AND CASH EQUIVALENTS ............................ (45) (36,043)
CASH AND CASH EQUIVALENTS, BEGINNING OF
PERIOD ............................................................ 9,176 66,249
--------- ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD ............................. $ 9,131 $ 30,206
========= =========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
ASIA SUPERNET CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1999 (UNAUDITED)
NOTE 1. BASIS OF PRESENTATION
The condensed financial statements included herein have been prepared by the
Company, 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. The condensed financial
statements and the notes thereto should be read in conjunction with the
financial statements included in the Company's Annual Report on Form 10-K for
the year ended December 31, 1999. In the opinion of the management of the
Company, the accompanying condensed financial statements contain all necessary
adjustments to present fairly the financial position, the results of operations
and cash flows for the periods reported. All adjustments are a normal recurring
nature.
The results of operations for the three-month periods ended March 31, 2000 and
March 31, 1999 are not necessarily indicative of the results to be expected for
the full year.
The condensed statements of operations for the three-month period ended March
31, 1999, have been reclassified to conform to the 1999 presentation.
NOTE 2. CONTINUING OPERATIONS
These condensed financial statements have been prepared on the going concern
basis of accounting which assumes the Company will realize its assets and
discharge its liabilities in the normal course of business. The Company is
currently operating at a loss, has negative working capital and stockholders'
deficit. Should the Company be unable to continue as a going concern it may be
required to realize its assets and settle its liabilities at amounts
substantially different from the current carrying values.
The Company's ability to continue as a going concern is dependent on continued
financial support from its principal shareholder, Mr. Fai H. Chan, who has
signed a letter of financial support to the Company.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Annual Report on
Form 10-K for the year ended December 31, 1999, the Condensed Financial
Statements of the Company and the related notes thereto, and other financial
information that is included elsewhere herein or incorporated by reference.
Introduction
During 1999, the Company sold all of its interests in all of its subsidiaries.
For the three months ended March 31, 2000, the Company had no operations.
RESULTS OF OPERATIONS
THE THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THE THREE MONTHS ENDED
MARCH 31, 1999
During the three months ended March 31, 2000, revenues consisted of interest
income on the cash and cash equivalents and expenses primarily consisted of
legal and accounting fees. The prior year revenues and expenses related to the
operations existing at that time which included rental real estate and other
investments.
LIQUIDITY AND CAPITAL RESOURCES
The net cash used in operating activities for the three months ended March 31,
2000 amounted to $45. This is primarily due to the payment of bank fees, net of
interest income. There was no cash provided by or used in investing or financing
activities.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS IN SENIOR SECURITIES
None
7
<PAGE>
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 27: Financial Data Schedule.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: May 25, 2000 Asia SuperNet Corporation
A Colorado Corporation
By: /s/ Robert H. Trapp
----------------------------------
Robert H. Trapp
Secretary and Treasurer
8
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 9,131
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 30,432
<PP&E> 7,984
<DEPRECIATION> (5,189)
<TOTAL-ASSETS> 33,227
<CURRENT-LIABILITIES> 2,773,597
<BONDS> 0
0
0
<COMMON> 1,189
<OTHER-SE> (2,741,559)
<TOTAL-LIABILITY-AND-EQUITY> 33,227
<SALES> 0
<TOTAL-REVENUES> 15
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 22,593
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (22,578)
<INCOME-TAX> 0
<INCOME-CONTINUING> (22,578)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (22,578)
<EPS-BASIC> (.02)
<EPS-DILUTED> (.02)
</TABLE>
