UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
December 1, 1999
Date of Report (Date of earliest reported)
AmeriNet Group.com, Inc.
(Exact name of registrant as specified in its chapter)
Delaware
(State or other jurisdiction of incorporation
000-03718
(Commission File Number)
11-2050317
(IRS Employer Identification No.)
2500 North Military Trail, Suite 225; Boca Raton, Florida 33431
(Address of principal executive offices) (Zip Code)
(561) 998-3435
Registrant's telephone number, including area code
902 Clint Moore Road, Suite 136-C; Boca Raton, Florida 33487
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
As previously disclosed in the Registrant's Form 8-K filed on December 16,
1999, for all operating, financial, tax and accounting purposes, Trilogy
International, Inc. ("Trilogy"), a Florida-corporation, an Internet based
company currently selling wholesome, non-toxic and proven effective pet care
products and human nutritional products, was merged into Trilogy Acquisition
Corporation, a wholly owned subsidiary of the Registrant in a privately
negotiated, arms-length transaction in consideration for 1,817,273 shares of the
Registrant's common stock.
The financial statements of Trilogy and the pro forma financial information
required to be filed in accordance with Item 7 of Form 8-K are filed herewith.
Item 7. Financial Statements and Exhibits.
(a)Financial Statements
Audited Financial Statements of Trilogy for the years ended December 31, 1998
and Unaudited Financial Statements for the nine months ended September 30, 1999.
(b)Pro forma financial information.
AmeriNet Group.com, Inc. Pro Forma Combined Balance Sheets at December 31, 1998;
Pro Forma Combined Statements of Operations for the six months ended June 30,
1999 and three months ended September 30, 1999.
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 hereunto duly authorized.
AmeriNet Group.com, Inc
Dated: February 7,2000
/s/ Michael H. Jordan
---------------------------------
Michael Harris Jordan
President
Index to Financial Statements
The following financial statements, pro forma financial information and exhibits
are filed as part of this Form 8-K/A:
Independent Auditor's Report
Balance Sheet
Statement of Operations
Statement of Changes in Stockholders' Deficit
Statement of Cash Flows
Notes to Financial Statements
Page 2
<PAGE>
AmeriNet Group.com, Inc.
(b) Pro financial information.
On December 1, 1999, AmeriNet Group.com, Inc., through its wholly owned
subsidiary, Trilogy Acquisition Corporation, acquired 100% of the outstanding
common stock of Trilogy International, Inc. ("Trilogy"). As consideration the
registrant issued 1,817,273 shares of its common stock to the shareholders of
Trilogy. Under the terms of the acquisition agreement, the registrant will
invest up to $ 900,000 in Trilogy within 180 days after the completion of the
merger and the filing of the required reports with the United States Securities
and Exchange Commission.
On November 12, 1999, AmeriNet Group.com, Inc., through its wholly owned
subsidiary, American Internet Technical Center, Inc., merged with WRIwebs.com,
Inc. ("WRI"). As consideration the registrant issued 531,000 shares of its
common stock to the shareholders of WRI. The Pro Forma Combined Balance Sheets
and Statements of Operations give effect to this merger.
The following Pro Forma Combined Balance Sheet of the Registrant has been
prepared by management of the Registrant based upon the balance sheets of the
Registrant as of December 31, 1998, June 30, 1999 and September 30, 1999. The
Pro Forma Balance Sheets also includes Trilogy's Balance Sheets as of December
31, 1998, June 30, 1999, and September 30, 1999. The Pro Forma Combined
Statement of Operations was prepared based upon the statement of operations for
the Registrant for the twelve months ended December 31, 1998, the six months
ended June 30,1999, and the three months ended September 30, 1999. The Pro Forma
Statement of Operations also includes Trilogy's statement of operations for the
twelve months ended December 31, 1998, the six months ended June 30, 1999, and
the three months ended September 30, 1999. The pro forma statements give effect
to the transaction under the purchase method of accounting and the assumptions
and adjustments in the accompanying notes to pro forma combined financial
statements. The pro forma combined balance sheet as of December 31, 1998 gives
effect to the acquisition as if it had occurred as of December 31, 1998. The pro
forma combined balance sheet as of June 30, 1999 gives effect to the acquisition
as if it had occurred as of June 30, 1999. The pro forma combined balance sheet
as of September 30, 1999 gives effect to the acquisition as if it had occurred
as of September 30, 1999. The pro forma combined statement of operations for the
year ended December 31, 1998, gives effect to the acquisition as if it had
occurred as of January 1, 1998. The pro forma combined statement of operations
for the six months ended June 30, 1999, gives effect to the acquisition as if it
had occurred as of January 1, 1999. The pro forma combined statement of
operations for the three months ended September 30, 1999, gives effect to the
acquisition as if had occurred as of July 1, 1999.
The pro forma adjustments are based upon available information and certain
assumptions that management believes are reasonable. The pro forma combined
financial statements do not purport to represent what the combined companies'
financial position or results of operations would actually have been had the
acquisition occurred on such date or as of the beginning of the period
indicated, or to project the combined companies' financial position or results
of operations for any future period.
Page 3
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
AUGUST 7, 1998 (INCEPTION)
THROUGH DECEMBER 31, 1998
TABLE OF CONTENTS
Independent Auditor's
Report.........................................................5
Financial Statements:
Balance Sheets as of December 31, 1998 and unaudited as of
June 30, 1999 and September 30,1999.........................6
Statements of Operation for the period from August 7,
1998 (Inception)through December 31, 1998 and unaudited for
the six months ended June 30, 1999 and for the three months
ended September 30, 1999....................................7
Statements of Changes in Stockholders'Equity (Deficit)for
the period from August 7, 1998 (Inception) through
December 31, 1998 and unaudited for the six months ended
June 30, 1999 and for the three months ended September 30,
1999 .....................................................8-9
Statements of Cash Flows for the period from August 7, 1998
(Inception) through December 31, 1998 and unaudited for the
six months ended June 30, 1999 and for the three months ended
September 30, 1999 ........................................10
Notes to Financial
Statements...................................................11-13
Page 4
<PAGE>
DASZKAL, BOLTON, MANELA, DEVLIN & CO.
CERTIFIED PUBLIC ACCOUNTANTS
A PARTNERSHIP OF PROFESSIONAL ASSOCIATIONS
2401 N. W. BOCA RATON BOULEVARD, SUITE #100, BOCA RATON, FL 33431
TELEPHONE (561)367-1040 FAX (561)750-3236
JEFFREY A. BOLTON, CPA, P.A. MEMBER OF THE AMERICAN INSTITUTE
MICHAEL I. DASZKAL, CPA, P.A. OF CERTIFIED PUBLIC ACCOUNTANTS
ROBERT A. MANELA, CPA, P.A.
TIMOTHY R. DEVLIN, CPA. P.A.
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors and Stockholders
Trilogy International, Inc.
We have audited the accompanying balance sheet of Trilogy International, Inc.,
(a development stage company) as of December 31, 1998, and the related
statements of operation, changes in stockholders' equity (deficit) and cash
flows for the period ended, from August 7, 1998 (inception) to December 31,
1998. 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 generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about 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.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Trilogy International, Inc., as
of December 31, 1998, and the results of its operations and its cash flows for
the period from August 7, 1998 (inception) to December 31, 1998, in conformity
with generally accepted accounting principles.
/s/ Daszkal Bolton Manela Devlin & Co.
Boca Raton, Florida
January 14, 2000
Page 5
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
ASSETS
<TABLE>
<S> <C> <C> <C>
June 30, 1999 September 30, 1999
December 31, 1998 (Unaudited) (Unaudited)
Current assets:
Cash $ - $229,339 $ 5,778
Accounts receivable - - 2,132
Inventory - 33,415 143,339
------------------- --------------- ------------
Total current assets - 262,754 151,249
------------------- ---------------- ------------
Property and equipment, net - 109,993 138,420
------------------- ---------------- ------------
Other assets:
Deposits - 18,648 15,675
Loan costs - - 5,000
------------------- ---------------- ------------
Total other assets - 18,648 20,675
------------------- ---------------- ------------
Total assets $ - $ 391,395 $ 310,344
=================== ================ ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ - $ - $ 138,815
Loans payable - - 34,858
Accrued expenses 63,406 307,962 365,755
------------------- ------------ -------------
Total current liabilities 63,406 307,962 539,428
------------------- ------------- -------------
Stockholders' equity (deficit):
Preferred stock, $0.50 stated value;
2,500,000 693,000 shares issued and
outstanding at December 31, 1998,
June 30, 1999 and September 30, 1999,
respectively - 330,000 346,500
Common stock, $0.001 par value;
30,000,000 authorized shares;
3,240,000 and 4,650,000 and
4,655,184 shares issued and
outstanding at December 31,
1998, June 30, 1999 and September
30, 1999 respectively 3,240 4,560 4,655
Additional paid-in capital 86,466 392,758 425,065
Outstanding stock options 17,270 17,270 17,270
Deficit accumulated during the
development stage (170,382) (661,155) (1,022,574)
----------------- ------------ --------------
Total stockholders'equity (deficit) (63,406) 83,433 (229,084)
----------------- ------------- ---------------
Total liabilities and
stockholders' equity (deficit) $ - $ 391,395 $ 310,344
==================== ============= =============
</TABLE>
See accompanying notes to financial statements
Page 6
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATION
<TABLE>
<S> <C> <C> <C>
August 7, 1998
(Inception) Six Months Ended Three Months Ended
through June 30, 1999 September 30, 1999
December 31, 1998 (Unaudited) (Unaudited)
Sales $ - $ - $ 38,571
Cost of sales - - 18,375
---------------- ---------------- ----------------
Gross profit - - 20,196
Selling, general and
administrative expenses 170,382 490,773 381,615
---------------- ---------------- ---------------
Loss from operations (170,382) (490,773) (361,419)
---------------- ---------------- ---------------
Provision (benefit) for income taxes - - -
---------------- ---------------- ---------------
Net loss $ (170,382) $ (490,773) $ (361,419)
================ ================ ===============
Net loss per share (basic and diluted) $ (0.05) $ (0.13) $ (0.08)
================ ================ ===============
Weighted average common shares
outstanding $ 3,240,000 $ 3,903,646 $ 4,595,770
================ ================ ================
</TABLE>
See accompanying notes to financial statements.
Page 7
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Accumulated
Additional Deficit
Common Stock Preferred Stock Paid-In Outstanding Development
Shares Amount Shares Amount Capital Stock Options Stage Total
Balance, August 7, 1998 - $ - - $ - $ - $ - $ - $ -
Common stock issued 324,000 3,240 - - 86,466 - - 89,706
Stock split, 10 for 1 2,916,000 - - - - - - -
Stock options issued - - - - - 17,270 - 17,270
Net loss -
December 31, 1998 - - - - - - (170,382) (170,382)
--------------- ------------- ------------- -------------- ------------- ----------
Balance,
December 31, 1998 3,240,000 3,240 - - 86,466 17,270 (170,382) (63,406)
Common stock issued 1,320,000 1,320 - - 328,680 - - 330,000
Preferred stock issued - - 660,000 330,000 - - - 330,000
Contribution to capital - - - - 2,350 - - 2,350
Costs of issuance - - - - (24,738) - - (24,738)
Net loss - June 30, 1999
(Unaudited) - - - - - - (490,773) (490,773)
---------------- --------------- ------------ -------------- -------------- -----------
Balance, June 30, 1999
(Unaudited) 4,560,000 $4,560 660,000 $330,000 $392,758 $ 17,270 $ (661,155) $83,433
================ =============== ============ ============== ============== ===========
</TABLE>
See accompanying notes to financial statements.
Page 8
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Accumulated
Additional Deficit
Common Stock Preferred Stock Paid-In Outstanding Development
Shares Amount Shares Amount Capital Stock Options Stage Total
Balance, July 1, 1999
(Unaudited) 4,560,000 $ 4,560 $ 660,000 $ 330,000 $ 392,758 $ 17,270 $ (661,155) $ 83,433
Treasury stock purchased (33,000) (33) - - 33 - - -
Treasury stock re-issued 33,000 33 - - 8,217 - - 8,250
Common stock issued 33,000 33 - - 8,217 - - 8,250
Preferred stock issued - - 33,000 16,500 - - - 16,500
Contribution to capital - - - - 355 - - 355
Stock issued for services 62,184 62 - - 15,485 - - 15,547
Net loss -
September 30, 1999
(Unaudited) - - - - - - (361,419) (361,419)
------------------- ---------------------- -------------- ------------- -------------- ------------
Balance,
September 30, 1999
(Unaudited) 4,655,184 $ 4,655 693,000 $346,500 $ 425,065 $ 17,270 $ (1,022,574) $(229,084)
==================== ======================= =============== =============== ============== ===========
</TABLE>
See accompanying notes to financial statements.
Page 9
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
<TABLE>
<S> <C> <C> <C>
August 7, 1998 Six Months Ended Three Months Ended
(Inception) through June 30, 1999 September 30, 1999
December 31, 1998 (Unaudited) (Unaudited)
Cash flows from operating activities:
Net loss $ (170,382) $(490,773) $ (361,419)
Adjustments to reconcile net loss to net
cash used by operating activities:
Depreciation and amortization - 5,500 3,146
Common stock issued for services - - 15,547
Stock options outstanding 17,270 - -
(Increase) decrease
Accounts receivable - - (2,132)
Inventory - (33,415) (109,924)
Deposits - (18,648) 2,973
Loan costs - - (5,000)
Increase (decrease) in:
Accounts payable - - 138,815
Accrued expenses 63,406 244,556 57,793
-------------------- ------------------- ---------------
Net cash used by operating activities (89,706) (292,780) (260,201)
--------------------- ------------------- ---------------
Cash flows from investing activities:
Purchase of property and equipment - (115,493) (31,573)
--------------------- ------------------- ---------------
Cash flows from financing activities:
Issuance of common stock, net 89,706 317,631 16,500
Issuance of preferred stock, net - 317,631 16,500
Contributions to capital 2,350 355
Increase in loans payable - - 34,858
--------------------- ------------------- -----------------
Net cash provided by financing activities 89,706 637,612 68,213
---------------------- ------------------- -----------------
Net increase (decrease) in cash - 229,339 (223,561)
Cash at beginning of period - - 229,339
---------------------- ------------------- -----------------
Cash at end of period $ - $ 229,339 $ 5,778
====================== =================== =================
Supplementary information:
Cash paid for:
Interest $ - $ 213 $ 888
======================= ================== =================
Income taxes $ - $ - $ -
======================= ================== =================
Non-cash transactions:
Common stock issued for services - - 62,184
======================= ================== =================
</TABLE>
See accompanying notes to financial statements.
Page 10
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - DESCRIPTION OF BUSINESS AND DEVELOPMENT STAGE RISK
The company is a Florida corporation organized in August 1998. The Company
intends to distribute its products through an Internet based network-marketing
plan (also known as multi-level marketing). The company intends to offer both a
line of pure healthy pet foods including supplements, vitamins, antioxidants and
biscuits, and also to provide a line of environmentally friendly cleaning
products.
The Company has made no significant product sales to date. Since its inception,
the Company has been dependent upon the receipt of capital investment or other
financing to fund its continuing activities. In addition to the normal risks
associated with a new business venture, there can be no assurance that the
Company's product development will be successfully completed or that it will be
a commercial success. Further, the Company is dependent upon certain related
parties to provide continued funding and capital resources.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash Equivalents
The Company considers all highly-liquid debt instruments with original
maturities of three months or less to be cash equivalents. As of December 31,
1998, the Company has no cash or cash equivalents.
Use of Estimates
The preparation of financial statements in conformity with general accepted
accounting principles requires management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
Stock Compensation
The Company has adopted Statement of Financial Accounting Standards No. 123
("SFAS 123"), "Accounting for Stock-Based Compensation." SFAS 123 encourages the
use of a fair-value-based method of accounting for stock-based awards under
which the fair value of stock options is determined on the date of grant and
expensed over the vesting period. Under SFAS 123, companies may, however,
measure compensation costs for those plans using the method prescribed by
Accounting Principles Board Opinion No. 25 ("APB No. 25"), "Accounting for Stock
Issued to Employees." Companies that apply APB No. 25 are required to include
pro forma disclosures of net earnings and earnings per share as if the
fair-value-based method of accounting had been applied. The Company elected to
account for such plans under the provisions of APB No. 25.
Unaudited Interim Information
The information presented as of June 30, 1999 and September 30, 1999, and for
the six-month period ended June 30, 1999 and the three-month period ended
September 30, 1999, has not been audited. In the opinion of management, the
unaudited interim financial statements include all adjustments, consisting only
of normal recurring adjustments, necessary to present fairly the Company's
financial position as of June 30, 1999 and September 30, 1999, and the results
of its operations and its cash flows for the six months ended June 30, 1999 and
the three months ended September 30, 1999, and the stockholders' equity for the
six months ended June 30, 1999 and for the three months ended September 30,
1999.
Page 11
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Inventory
Inventory is stated at the lower of cost or market on a First-In, First-Out
basis, and consists primarily of merchandise held for resale.
NOTE 3 - INCOME TAXES
The company has elected to capitalize the start up cost incurred during 1998 of
$170,382. The start up cost will be amortized over sixty (60) months in
accordance with the internal revenue code. The Company's evaluation of the tax
benefit of its carry forward is presented in the following table. The tax
amounts have been calculated using the 34% federal and 5.5% state income tax
rates.
1998
Deferred Tax Asset:
Tax benefit of net operating loss $67,301
Less valuation allowance (67,031)
----------
Deferred Tax Asset $ -
==========
NOTE 4 - STOCK OPTIONS
At December 31, 1998, the Company has granted 222,001 stock options to certain
employees and consultants at an exercise price of $0.25 per share.
The Company has elected to account for the stock options under Accounting
Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees", and
related interpretations. Accordingly, no compensation expensehas been recognized
on the employee stock options. The company accounts for stock options granted to
consultants under financial Accounting Standards Board Statement No. 123,
"Accounting for Stock-Based Compensation". The Company recognized $17,220 in
compensation expense for the period ended December 31, 1998.
The fair value of each option is estimated on the date of grant using the fair
market value option pricing model with the assumption:
Risk-free interest rate 6.0%
Expected life (years) 10
Expected volatility N/A
Expected dividends None
Page 12
<PAGE>
TRILOGY INTERNATIONAL, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
A summary of option transactions during the six months ended December 31, 1998
is shown below:
Number Weighted Average
of Shares Exercise Price
Outstanding at January 1, 1998 - -
Granted 222,001 0.25
Exercised -
Forfeited -
----------
Outstanding at December 31, 1998 222,001
----------
Exercisable at December 31, 1998 222,001
----------
Available for issuance at
December 31, 1998 26,760,000
==========
NOTE 5 - SUBSEQUENT EVENTS
In April 1999, the Company completed a private placement offering. The offering
was for 11 units consisting of 120,000 shares of common stock and 60,000 shares
of series a participating preferred stock. The company issued 1,320,000 shares
of common stock and 660,000 of preferred stock for a total of $660,000, net of
$24,739 issuance cost.
In September 1999, the Board of Directors authorized the Company to sell four
(4) additional units consisting of 480,000 shares of common stock and 240,00
shares of preferred stock. In addition, the majority shareholders agreed to
return up to 240,000 shares of common stock to the treasurer. In September 1999,
the company sold approximately 33,000 shares of preferred stock and 66,000
shares of common stock (33,000 new shares plus 33,000 shares returned by the
shareholders). The amount obtained for the issuance of these shares was $33,000.
On November 17, 1999, all of the outstanding preferred stock was converted to
common stock. The company issued a total of 744,818 shares of common stock in
exchange for 744,818 shares of preferred stock.
On December 1, 1999, through a wholly owned subsidiary, AmeriNet Group.com, Inc.
(AmeriNet) acquired 100% of the outstanding common stock of the Company. As
consideration, AmeriNet issued 1,817,273 shares of common stock to the
stockholders of the Company. Under the terms of the acquisition agreement,
AmeriNet will invest up to $900,000 in the Company within 180 days after the
completion of the merger and filing of the required reports with the United
States Securities and Exchange Commission. At the date of acquisition, all of
the outstanding stock options and warrants were converted into options and
warrants to purchase 1/3 shares of AmeriNet Group.com, Inc., common stock and an
exercise price of $0.75 per share.
Page 13
<PAGE>
AmeriNet Group.com, Inc.
Pro Forma Combined Balance Sheets
September 30, 1999
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
AmeriNet WRI Combined Trilogy Int'l Pro forma
Sept. 30, 1999 Sept. 30, 1999 Total Sept. 30, 1999 Adjustments Combined
Current assets:
Cash $ 32,718 $ 7,598 $ 40,316 $ 5,778 $ 46,094
Accounts receivable, net 49,093 71,896 120,989 2,132 123,121
Inventory - - - 143,339 143,339
Prepaid and other assets - 510 510 - 510
-------------------------------------------------------------------------------------------------
Total current assets 81,811 80,004 161,815 151,249 - 313,064
Property and equipment, net 53,326 67,094 120,420 138,420 - 258,840
-------------------------------------------------------------------------------------------------
Other assets:
Goodwill, net 639,589 725,989 1,365,578 -(e) 3,522,892 4,888,470
Loan costs - - - 5,000 5,000
Deposits 14,492 - 14,492 15,675 30,167
-------------------------------------------------------------------------------------------------
Total other assets 654,081 725,989 1,380,070 20,675 3,522,892 4,923,637
-------------------------------------------------------------------------------------------------
Total assets $789,218 $873,087 $1,662,305 $310,344 $3,522,892 $5,495,541
=================================================================================================
Current liabilities:
Accounts payable $ 65,370 $ 78,797 $144,167 $ 138,815 $ 282,982
Accrued expenses 15,010 9,646 24,656 365,756 390,412
Deferred revenue 39,970 69,838 109,808 - 109,808
Loan to stockholders 29,333 77,755 107,088 34,858 141,946
Loan payable - others 75,000 34,000 109,000 - 109,000
Cash overdraft - - - - -
------------------------------------------------------------------------------------------------
Total current liabilities 224,683 270,036 494,719 539,429 - 1,034,148
Stockholders' equity (deficit):
Preferred stock - - - 346,500 (346,500) -
Common stock 81,924 7,500 89,424 4,655 13,518 107,597
Common stock to be retired (9,328) - (9,328) - (9,328)
Outstanding stock options - - - 17,270 17,270
Additional paid in capital 4,254,223 739,593 4,993,816 425,064 2,833,300 8,252,180
Accumulated deficit (3,762,284) (144,042) (3,906,326) - (3,906,326)
Accumulated deficit from inception
of Development stage - (1,022,574) 1,022,574 -
------------------------------------------------------------------------------------------------
Total stockholders'
equity (deficit) 564,535 603,051 1,167,586 (229,085) 3,522,892 4,461,393
------------------------------------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 789,218 $873,087 $1,662,305 $ 310,344 $3,522,892 $5,495,541
===============================================================================================
</TABLE>
1. The Pro Forma Balance Sheet at Sept. 30, 1999, is based upon the balance
sheets of the Registrant and Trilogy International, Inc., as of Sept. 30,
1999.
(e) The purchase price for the acquisition of all the common stock of Trilogy
International, Inc., was 1,817,273 shares at $1.8125 per share. Goodwill of
$ 3,522,892 would have been recorded if the acquisition had taken place on
Sept. 30, 1999.
Page 14
<PAGE>
AmeriNet Group.com, Inc.
Pro Forma Combined Statement of Income
For the three months ended Sept 30, 1999
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
AmeriNet WRI Trilogy Int'l
Three months ended Three months ended Combined Three months ended Pro Forma
Sept. 30, 1999 Sept. 30, 1999 Total Sept. 30, 1999 Adjustments Combined
Revenues earned $ 168,169 $ 252,083 $420,252 $ 38,571 $ 420,252
Cost of revenues earned 69,109 161,348 230,457 18,375 230,457
----------------------------------------------------------------------------------------------------
Gross profit 99,060 90,735 189,795 20,196 - 189,795
Operating expenses:
Selling, general and
administrative expense 476,341 193,600 669,941 381,615(f) 53,506 1,105,062
----------------------------------------------------------------------------------------------------
Total operating expenses 476,341 193,600 669,941 381,615 53,506 1,105,062
----------------------------------------------------------------------------------------------------
Net income (loss) $ (377,281) $(102,865) $(480,146) $ (361,419) $(53,506) $(915,267)
====================================================================================================
Basic net loss per share $ (0.05) $ (0.06) $ (0.11)
================================================== ============
Weighted average shares
outstanding 8,148,308 8,679,308 8,439,839
================================================== ============
Fully diluted net loss
per share $ (0.05) $ (0.06) $ (0.11)
================================================== ============
Fully diluted average shares
outstanding 8,148,308 8,679,308 8,439,839
================================================== ===========
</TABLE>
1. The Pro Forma Statement of Operations for the three months ended Sept. 30,
1999 is based upon the three months ended Sept. 30, 1999 for the Registrant
and Trilogy International, Inc. and gives effect to the acquisition as if
it had occured on July 1, 1999.
(f) Amount represents the amortization of the goodwill of $ 3,210,373 over 15
years using the straight line method.
Page 15
<PAGE>
AmeriNet Group.com, Inc.
Pro Forma Combined Balance Sheets
June 30, 1999
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
AmeriNet WRI Combined Trilogy Int'l Pro forma
June 30, 1999 June 30, 1999 Total June 30, 1999 Adjustments Combined
Current assets:
Cash $ 79,021 $ 13,832 $ 92,853 $ 229,339 $ 322,192
Accounts receivable, net 76,662 49,250 125,912 - 125,912
Inventory - - - 33,415 33,415
Prepaid and other assets - - - - -
------------------------------------------------------------------------------------------------
Total current assets 155,683 63,082 218,765 262,754 - 481,519
Property and equipment, net 33,656 35,054 68,710 109,993 - 178,703
------------------------------------------------------------------------------------------------
Other assets:
Goodwill, net 1,470,559 763,646 2,234,205 - (c) 3,210,373 5,444,578
Deposits 14,492 14,492 18,648 33,140
------------------------------------------------------------------------------------------------
Total other assets 1,485,051 763,646 2,248,697 18,648 3,210,373 5,477,718
-----------------------------------------------------------------------------------------------
Total assets $1,674,390 $ 861,782 $2,536,172 $ 391,395 3,210,373 $6,137,940
================================================================================================
Current liabilities:
Accounts payable $ 10,648 $ 51,475 $ 62,123 $ - $ 62,123
Accrued expenses 16,901 9,646 26,547 307,962 334,509
Deferred revenue 80,558 68,191 148,749 - 148,749
Loan to stockholders 29,333 14,601 43,934 - 43,934
Cash overdraft - - - - -
------------------------------------------------------------------------------------------------
Total current liabilities 137,440 143,913 281,353 307,962 - 589,315
Stockholders' equity (deficit):
Preferred stock - - - 330,000 (330,000) -
Common stock 80,948 5,310 86,258 4,560 13,613 104,431
Outstanding stock options - - 17,270 - 17,270
Additional paid in capital 4,841,005 791,291 5,632,296 392,758 2,865,605 8,890,659
Accumulated deficit (3,128,785) (78,732) (3,207,517) - - (3,207,517)
Accumulated deficit from inception of
development stage (256,218) - (256,218) (661,155) 661,155 (256,218)
------------------------------------------------------------------------------------------------
Total stockholders'
equity (deficit) 1,536,950 717,869 2,254,819 83,433 3,210,373 5,548,625
-------------------------------------------------------------------------------------------------
Total liabilities and
stockholders' equity $1,674,390 $ 861,782 $ 2,536,172 $ 391,395 $ 3,210,373 $6,137,940
=================================================================================================
</TABLE>
1. The Pro Forma Balance Sheet at June 30, 1999, is based upon the balance
sheets of the Registrant and Trilogy International, Inc., as of June 30,
1999.
(c) The purchase price for the acquisition of all the common stock of Trilogy
International, Inc., was 1,817,273 shares at $1.8125 per share. Goodwill of
$ 3,210,373 would have been recorded if the acquisition had taken place on
June 30, 1999.
Page 16
<PAGE>
AmeriNet Group.com, Inc.
Pro Forma Combined Statement of Income
For the six months ended June 30, 1999
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
AmeriNet WRI Trilogy Int'l
Six months ended Six months ended Combined Six months ended Pro Forma
June 30, 1999 June 30, 1999 Total June 30, 1999 Adjustments Combined
Revenues earned $ - $ 692,390 $692,390 $ - $ 692,390
Cost of revenues earned - 235,339 235,339 - 235,339
----------------------------------------------------------------------------------------------------
Gross profit - 457,051 457,051 - - 457,051
Operating expenses:
Selling, general and
administrative expense 256,218 444,848 701,066 490,773(d) 109,794 1,301,633
----------------------------------------------------------------------------------------------------
Total operating expenses 256,218 444,848 701,066 490,773 109,794 1,301,633
----------------------------------------------------------------------------------------------------
Net income (loss) $ (256,218) $ 12,203 $(244,015) $ (490,773) $ 109,794) $ (844,582)
====================================================================================================
Basic net loss per share $ (0.04) $ (0.04) $ (0.10)
================================================ ============
Weighted average shares
outstanding 6,091,566 6,622,566 8,439,839
================================================ ============
Fully diluted net loss per share $ (0.04) $(0.04) $ (0.10)
================================================ ============
Fully diluted average shares
outstanding 6,091,566 6,622,566 8,439,839
================================================ ============
</TABLE>
1. The Pro Forma Statement of Operations for the six months ended June 30,
1999 is based upon the six months ended June 30, 1999 for the Registrant
and Trilogy International, Inc. and gives effect to the acquisition as if
it had occured on January 1, 1999.
(d) Amount represents the amortization of the goodwill of $ 3,293,807 over 15
years using the straight line method.
Page 17
<PAGE>
AmeriNet Group.com, Inc.
Pro Forma Combined Balance Sheets
December 31, 1998
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
AmeriNet WRI Combined Trilogy Int'l Pro forma
Dec. 30, 1998 Dec. 31, 1998 Total Dec. 31, 1998 Adjustments Combined
Current assets:
Cash $ 13,182 $ 4,002 $ 17,184 $ - $ - $ 17,184
Accounts receivable - 23,633 23,633 - - 23,633
Prepaid and other assets - 8,406 8,406 - - -
-------------------------------------------------------------------------------------------------
Total current assets 13,182 36,041 49,223 - - 40,817
Property and equipment, net - 30,162 30,162 - - 30,162
-------------------------------------------------------------------------------------------------
Other assets:
Goodwill, net - 763,646 763,646 - 3,293,807 4,057,453
-------------------------------------------------------------------------------------------------
Total other assets - 763,646 763,646 - 3,293,807 4,057,453
-------------------------------------------------------------------------------------------------
Total assets $ 13,182 $ 829,849 $ 843,031 $ - $ 3,293,807 $4,128,432
=================================================================================================
Current liabilities:
Accounts payable $ 4,661 $ 42,602 $ 47,263 $ - $ - $ 47,263
Accrued expenses 147,000 19,187 166,187 63,406 - 229,593
Deferred revenue - 74,823 74,823 - - 74,823
Cash overdraft - 13,026 13,026 - - 13,026
-------------------------------------------------------------------------------------------------
Total current liabilities 151,661 149,638 301,299 63,406 - 364,705
Stockholders' equity (deficit):
Common stock 59,911 5,310 65,221 3,240 14,933 83,394
Outstanding stock options 17,270 - 17,270
Additional paid in capital 2,930,395 674,901 3,605,296 86,466 3,111,492 6,803,254
Retained earnings(deficit) (3,128,785) - (3,128,785) (170,382) 170,382 (3,128,785)
--------------------------------------------------------------------------------------------------
Total stockholders'
equity (deficit) (138,479) 680,211 541,732 (63,406) 3,296,807 3,775,133
-------------------------------------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 13,182 $ 829,849 $ 843,031 $ - $ 3,296,807 $4,139,838
=================================================================================================
</TABLE>
1. The Pro Forma Balance Sheet at December 31, 1998, is based upon the balance
sheets of the Registrant and Trilogy International, Inc., as of December
31, 1998.
(a) The purchase price for the acquisition of all the common stock of Trilogy
International, Inc., was 1,817,273 shares at $1.8125 per share. Goodwill of
$3,293,807 would have been recorded if the acquisition had taken place on
December 31, 1998.
Page 18
<PAGE>
AmeriNet Group.com, Inc.
Pro Forma Combined Statement of Income
For the twelve months ended December 31, 1998
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
AmeriNet WRI Trilogy Int'l
Twelve months ended Twelve months ended Combined Five months ended Pro Forma
December 31, 1998 December 31, 1998 Total December 31, 1998 Adjustments Combined
Revenues earned $ - $1,037,212 $1,037,212 $ - $ - $1,037,212
Cost of revenues earned - 339,713 339,713 - - 339,713
----------------------------------------------------------------------------------------------------
Gross profit - 697,499 697,499 - - 697,499
Operating expense:
Selling, General and Administrative - 839,344 839,344 170,382 219,587 1,229,313
----------------------------------------------------------------------------------------------------
Total operating expense - 839,344 839,344 170,382 219,587 1,229,313
Loss from operations - (141,845) (141,845) (170,382) (219,587) (531,814)
Other expense:
Loss from discontinued operations (562,415) - (562,415) - - (562,415)
----------------------------------------------------------------------------------------------------
Total other expense (562,415) - (562,415) - - (562,415)
----------------------------------------------------------------------------------------------------
Net loss $ (562,415) $ (141,845) $(704,260) $(170,382) $(219,587) $(1,094,229)
====================================================================================================
Basic net loss per share $ (0.13) $ (0.15) $ (0.17)
================ ============ ============
Weighted average shares
outstanding 4,174,778 4,705,778 6,523,051
================ ============ ============
Fully diluted net loss per share $ (0.13) $ (0.15) $ (0.17)
================ ============ ============
Fully diluted average shares
outstanding 4,174,778 4,705,778 6,523,051
================ ============ ============
</TABLE>
1. The Pro Forma Statement of Operations for the year ended December 31, 1998
is based upon the twelve months ended December 31, 1998 for the Registrant
and Trilogy International, Inc., and gives effect to the acquisition as if
it had occured on January 1, 1998.
(b) Amount represents the amortization of goodwill of $ 3,293,807 over 15 years
using the straight line method.
Page 19
