<PAGE>
SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Annual Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File No.
- --------------------- ---------------------
October 31, 1999 0-5304
CUSTOMER SPORTS, INC.
----------------------
(Exact Name of Registrant)
UTAH 87-0282745
- -------------------------------- -------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
2591 Pioneer Avenue, #B, Vista, California 92083
------------------------------------------------
(Address of Principal Executive Offices)
Registrant's telephone number including area code: (760) 597-5770
---------------
Former name, former address, and former fiscal 1023 Reliance Way
year end, if changed since last report. Del Mar, CA. 92014
(619) 481-2400
(1) Name and Telephone Number of persons to contact in regard to this
notification.
Ted Irvine (760) 597-5770
---------- ---------- -----------------
(Name) (Area Code) (Telephone Number)
(2) Have all other periodic reports required under Section 13 of 15 (b) of
the Securities and Exchange Act of 1934 or Section 30 or the Investments
Act of 1940 during the preceding 12 months (or for such shorter) period
that the Registrant was required to file such reports been filed? If
answer is no, identify report(s).
X Yes No
----- ------
(3) Is it anticipated that any significant change in result of operations
from the corresponding period for the last fiscal year will be reflected by
the earnings statements to be included in the subject report or portion
thereof?
X Yes No
------ ------
If so, attach an explanation of the anticipated change, both narratively
and quantitatively, and, if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.
Indicate the number of shares outstanding for each of the issuer's classes
of Common Stock as of the last practical date:
Common Stock, Par Value $0.01 Per Share, 32,407,703 Shares Issued &
Outstanding at October 31, 1999.
<PAGE>
CUSTOMER SPORTS, INC.
TABLE OF CONTENTS
PART I FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Balance Sheets. . . . . . . . . . . . . . . . . . . . . . .3
Statement of Operations . . . . . . . . . . . . . . . . . .4
Statement of Cash Flows . . . . . . . . . . . . . . . . . .5
Note to Financial Statements. . . . . . . . . . . . . . . .6
ITEM 2 MANAGEMENT DISCUSSION AND FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
PART II OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . .7
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . .8
<PAGE>
Customer Sports, Inc.
Balance Sheets (Unaudited)
October 31, 1999 & July 31, 1999
<TABLE>
<CAPTION>
October July
31, 1999 31, 1999
----------- -----------
<S> <C> <C>
Assets
------
Current Assets
- --------------
Cash $ 181,212 $ -0-
Inventory 87,332 -0-
----------- -----------
Total Current Assets 268,544 -0-
Other Assets
- ------------
Refundable Deposit 5,892 -0-
Equipment - Net 16,663 729
Oil & Gas Properties
(Successful Efforts Method) 732,901 732,901
Less Accumulated Depreciation ( 728,375) ( 724,961)
----------- -----------
Total Other Assets 27,081 8,669
----------- -----------
Total Assets $ 295,625 $ 8,669
=========== ===========
Liabilities & Stockholders' Equity
----------------------------------
Current Liabilities
- -------------------
Cash in Bank - Overdraft $ -0- $ 10,060
Accounts Payable & Accrued Expenses 133,169 126,590
Notes Payable 475,614 380,564
----------- -----------
Total Current Liabilities 608,783 517,214
Long Term Liabilities
- ---------------------
Notes Payable 330,000 -0-
Stockholders' Equity
- --------------------
Capital Stock 50,000,000 Shares at
$0.01 Par Value; 32,407,703 Shares
Issued & Outstanding Respectively 324,077 324,077
Paid In Capital 6,758,403 6,758,403
Deficit in Retained Earnings (7,725,638) (7,591,025)
----------- -----------
Total Stockholders' Equity ( 643,158) ( 508,454)
----------- -----------
Total Liabilities & Stockholders' Equity $ 295,625 $ 8,669
=========== ===========
</TABLE>
See Accompanying Notes
3
<PAGE>
Customer Sports, Inc.
Statements of Operations (Unaudited)
For the Periods August 1, 1999 to October 31, 1999
and August 1, 1998 to October 31, 1998
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
Revenues
- --------
Golf Sales & Fees $ 17,368 $ 39,103
----------- -----------
Total Revenues 17,368 39,103
Cost of Sales
- -------------
Cost of Golf Sales -0- 3,782
----------- -----------
Gross Profit 17,368 35,321
Operating Expenses
- ------------------
Consulting Fees 34,575 5,000
General & Administrative Expenses 110,970 53,865
Interest Expenses 8,304 9,196
Depreciation & Amortization 4,019 2,712
----------- -----------
Total Costs & Expenses 157,868 70,773
----------- -----------
Loss from Operations ( 140,500) ( 35,452)
- --------------------
Other Income (Expenses)
- -----------------------
Oil & Gas Revenues 5,886 4,993
----------- -----------
Total Other Income (Expenses) 5,886 4,993
----------- -----------
Net Loss ($ 134,614) ($ 30,459)
=========== ===========
Net Loss Per Share
Of Common Stock ( .00) ( .00)
Weighted Average Number Of
Shares Outstanding During Period 32,407,703 19,866,253
</TABLE>
See Accompanying Notes
4
<PAGE>
Customer Sports, Inc.
Statement of Cash Flows (Unaudited)
For the Periods August 1, 1999 to October 31, 1999
& August 1, 1998 to October 31, 1998
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
Cash Flows from Operating Activities
- ------------------------------------
Net (Loss) from Operations ($ 134,614) ($ 30,459)
Adjustments to Reconcile Net Income
(Loss) to Net Cash Provided by
Operating Activities
Rounding -0- ( 1)
Depreciation 4,019 2,712
Changes in Operating Assets & Liabilities
Increase (Decrease) in Accounts Payable 6,579 3,196
(Increase) Decrease in Inventory ( 87,332) -0-
(Increase) Decrease in Refundable Deposits ( 5,892) -0-
----------- -----------
Net Cash Provided (Used) by
Operating Activities ( 217,240) ( 24,552)
Cash Flows from Investing Activities
- ------------------------------------
Purchase of Equipment ( 16,538) -0-
----------- -----------
Net Cash Provided (Used) by
Investing Activities ( 16,538) -0-
Cash Flows from Financing Activities
- ------------------------------------
Increase in Notes Payable 430,000 6,000
Payments on Notes Payable ( 4,950) -0-
----------- -----------
Net Cash Provided (Used) by
Financing Activities 425,050 6,000
----------- -----------
Increase (Decrease) in Cash 191,272 ( 18,552)
Cash at Beginning of Period ( 10,060) 20,927
----------- -----------
Cash at End of Period $ 181,212 $ 2,375
=========== ===========
Disclosures from Operating Activities
- -------------------------------------
Interest $ 8,304 $ 9,196
Taxes -0- -0-
</TABLE>
See Accompanying Notes
5
<PAGE>
Customer Sports, Inc.
ITEM 1.
- -------
Summarized Financial Information (Continued)
Notes to Condensed Financial Statements (Unaudited) October 31, 1999
Note #1 - Basis of Presentation
- -------------------------------
The accompanying un-audited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of
management, adjustments (consisting or normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three and three months periods ending October 31, 1999 are
not necessarily indicative of the results that may be expected for the year
ended July 31, 2000. For further information, refer to the financial
statements and footnotes thereto included in the Company's annual report on
Form 10-K for the year ended July 31, 1999.
ITEM 2.
- --------
Management's Discussion and Analysis of Financial Condition and Results of
Operation
Total Operating revenues for the quarter ended October 31, 1999 were
$23,253 compared to $46,367 for the quarter ended October 31, 1998.
Total operating expenses for the quarter ended October 31, 1999 were
$261,982 compared to $64,918 for the quarter ended October 31, 1998 due to
expenses related to establishment of the Company's twin golf businesses.
Net oil and gas revenues of $5,885 continued their orderly decline during
the period and Registrant wrote down the value of the oil and gas holdings
by an additional $25,000.
During the period, Registrant received $430,000 in funding from Citadel
Capital Management for its two operating subsidiaries, Bigtopgolf.com and
Community Golf Centers. Registrant issued 2,000,000 shares in the
transaction.
Registrant entered into a four-lease for its current offices/warehouse
located at 2591 Pioneer Avenue in Vista, California, adjacent to Carlsbad,
California, home of many golf companies. The lease covered 5,500 square
feet at a total cost over its life of $184,800. In addition, Registrant
obtained an option for 5,500 contiguous square feet of warehouse/office
space at similar terms. Registrant expects to exercise the option in its
second fiscal quarter.
6
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . None
Item 2. Changes in the Rights of the
Registrant's Security Holders. . . . . . . . . . . . . . . . None
Item 3. Defaults by the Company on its Senior Securities . . . . . . None
Item 4. Results of Votes of Security Holders . . . . . . . . . . . . None
Item 5. Other Information. . . . . . . . . . . . . . . . . . . . . . None
7
<PAGE>
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.
Customer Sports, Inc. (Registrant)
/S/ Edmund J. Irvine, Jr.
Date: December 22, 1999 By:---------------------------
Edmund J. Irvine, Jr.
President
8
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000051853
<NAME> CUSTOMER SPORTS, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-START> AUG-01-1999
<PERIOD-END> OCT-31-1999
<CASH> 18,212
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 87,332
<INVENTORY> 0
<CURRENT-ASSETS> 268,544
<PP&E> 749,564
<DEPRECIATION> 728,375
<TOTAL-ASSETS> 295,625
<CURRENT-LIABILITIES> 608,783
<BONDS> 0
0
0
<COMMON> 324,077
<OTHER-SE> (967,235)
<TOTAL-LIABILITY-AND-EQUITY> 295,625
<SALES> 17,368
<TOTAL-REVENUES> 23,254
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 157,868
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,304
<INCOME-PRETAX> (134,614)
<INCOME-TAX> 0
<INCOME-CONTINUING> (134,614)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (134,614)
<EPS-BASIC> .00
<EPS-DILUTED> .00
</TABLE>
