<PAGE>
SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Annual Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File No.
- ---------------------- ---------------------
January 31, 2000 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
year end, if changed since last report.
(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 January 31, 2000.
</Page>
<PAGE>
CUSTOMER SPORTS, INC.
TABLE OF CONTENTS
PART I FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . .3
Statement of Operations. . . . . . . . . . . . . . . . . . . . .5
Statement of Cash Flows. . . . . . . . . . . . . . . . . . . . .6
Note to Financial Statements . . . . . . . . . . . . . . . . . .7
ITEM 2 MANAGEMENT DISCUSSION AND FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
PART II OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . .8
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . .9
</Page>
<PAGE>
Customer Sports, Inc.
Balance Sheet
January 31, 2000 (Unaudited) and July 31, 1999
<TABLE>
<CAPTION>
2000 1999
----------- -----------
<S> <C> <C>
Assets
Current Assets
- --------------
Cash $ 49,860 $ -0-
Receivables 2,500 -0-
Inventory 105,860 -0-
----------- -----------
Total Current Assets 158,220 -0-
Property & Equipment
- --------------------
Office Equipment - Net 5,256 729
Store Fixtures - Net 15,830 -0-
Warehouse Fixtures - Net 19,319 -0-
----------- -----------
Total Property & Equipment 40,405 729
Other Assets
- ------------
Refundable Deposit 5,892 -0-
Oil & Gas Properties
(Successful Efforts Method) 732,901 732,901
Less Accumulated Depreciation ( 732,901) ( 724,961)
----------- -----------
Total Other Assets 5,892 7,940
----------- -----------
Total Assets $ 204,517 $ 8,669
=========== ===========
</TABLE>
See Accompanying Notes
F-3
</Page>
<PAGE>
Customer Sports, Inc.
Balance Sheet -Continued-
January 31, 2000 (Unaudited) and July 31, 1999
<TABLE>
2000 1999
----------- -----------
<S> <C> <C>
Liabilities & Stockholders' Equity
Current Liabilities
- -------------------
Cash in Bank - Overdraft $ -0- $ 10,060
Accounts Payable & Accrued Expenses 247,945 126,590
Notes Payable 841,337 380,564
----------- -----------
Total Current Liabilities 1,089,282 517,214
Long Term Liabilities
- ---------------------
Notes Payable -0- -0-
Stockholders' Equity
- --------------------
Capital Stock, 50,000,000 Shares at $0.01
Par Value; 32,407,703 Shares Issued and
Outstanding Restated 324,077 324,077
Paid In Capital 6,758,403 6,758,403
Deficit in Retained Earnings (7,967,245) (7,591,025)
----------- -----------
Total Stockholders' Equity ( 884,765) ( 508,545)
----------- -----------
Total Liabilities &
Stockholders' Equity $ 204,517 $ 8,669
=========== ===========
</TABLE>
See Accompanying Notes
F-4
</Page>
<PAGE>
Customer Sports, Inc.
Statement of Operations (Unaudited)
For the Three Months Period Ended January 31, 2000 & 1999
and the Six Months Ended January 31, 2000 & 1999
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
January January January January
31, 2000 31, 1999 31, 2000 31, 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues
- --------
Golf Sales & Fees $ 72,444 $ 60,297 $ 89,812 $ 99,400
----------- ----------- ----------- -----------
Total Revenues 72,444 60,297 89,812 99,400
Cost & Expenses
- ---------------
Cost of Golf Sales 11,740 -0- 11,740 3,782
----------- ----------- ----------- -----------
Gross Profit 60,704 60,297 78,072 95,618
Operating Expenses
- ------------------
General & Administrative
Expenses 302,781 71,752 456,630 139,815
Depreciation & Amortization 7,619 2,199 11,638 4,911
----------- ----------- ----------- -----------
Total Cost & Expenses 310,400 73,951 468,268 144,726
----------- ----------- ----------- -----------
Loss from Operations ( 249,696) ( 13,654) ( 390,196) ( 49,108)
Other Income (Expenses)
- -----------------------
Oil & Gas Revenues 8,090 2,748 13,976 7,741
----------- ----------- ----------- -----------
Total Other Income (Loss) 8,090 2,748 13,976 7,741
----------- ----------- ----------- -----------
Net Loss ($ 241,606) ($ 10,906) ($ 356,220) ($ 41,367)
=========== =========== =========== ===========
Net Loss Per Share of
Common Stock ($ 0.01) ($ 0.00) ($ 0.01) ($ 0.00)
Weighted Average Number
Of Shares Outstanding
During Period 32,407,703 19,866,253 32,407,703 19,866,253
</TABLE>
See Accompanying Notes
F-5
</Page>
<PAGE>
Customer Sports, Inc.
Statement of Cash Flows (Unaudited)
For the Six Month Period Ending January 31, 2000 & 1999
<TABLE>
<CAPTION>
Six Month Period Ending
January January
31, 2000 31, 1999
----------- -----------
<S> <C> <C>
Operating Expenses
- ------------------
Net (Loss) from Operations ($ 376,220) ($ 41,367)
Adjustments to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation 11,638 4,911
Changes in Operating Assets & Liabilities
(Increase) Decrease in Receivables ( 2,500) -0-
(Increase) Decrease in Inventory ( 105,860) -0-
Increase (Decrease) in Accounts Payable 121,355 9,393
----------- -----------
Net Cash Provided (Used) by Operating Activities ( 351,587) ( 27,063)
Cash Flows From Investing Activities
- ------------------------------------
(Increase) in Deposits ( 5,872) -0-
Purchase of Equipment ( 43,394) -0-
----------- -----------
Net Cash Provided (Used) by Investing Activities ( 49,266) -0-
Cash Flows from Financing Activities
- ------------------------------------
Increase in Notes Payable -0- 6,000
Payment on Notes Payment 460,773 -0-
(Decrease) in Cash in Bank Overdraft ( 10,060) -0-
----------- -----------
Net Cash Provided (Used) by Financing Activities 450,713 6,000
----------- -----------
Increase (Decrease) in Cash 49,860 ( 21,063)
Cash at Beginning of Period -0- 20,927
----------- -----------
Cash at End of Period ($ 49,860) ($ 136)
=========== ===========
Disclosures from Operating Activities
- -------------------------------------
Interest $ 7,270 $ 18,393
Taxes -0- -0-
</TABLE>
See Accompanying Notes
F-6
</Page>
<PAGE>
ITEM 1
Summarized Financial Information
- --------------------------------
Notes to Condensed Financial Statements (Unaudited) January 31, 2000
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 January 31, 2000 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 January 31, 2000 was $72,444
compared to $60,297 for the quarter ended January 31, 1999.
Total operating expenses for the quarter ended January 31, 2000 were
$310,400 compared to $73,951 for the quarter ended January 31, 1999 due to
expenses related to establishment of the Company's twin golf businesses.
</Page>
<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
8
</Page>
<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)
Date: April 17, 2000 By: /S/ Edmund J. Irvine, Jr.
---------------------------------
Edmund J. Irvine, Jr.
President
9
</Page>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000051853
<NAME> CUSTOMER SPORTS, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-END> JAN-31-2000
<CASH> 49,860
<SECURITIES> 0
<RECEIVABLES> 2,500
<ALLOWANCES> 0
<INVENTORY> 105,860
<CURRENT-ASSETS> 158,220
<PP&E> 55,486
<DEPRECIATION> (13,229)
<TOTAL-ASSETS> 204,517
<CURRENT-LIABILITIES> 1,089,282
<BONDS> 0
0
0
<COMMON> 324,077
<OTHER-SE> (1,208,842)
<TOTAL-LIABILITY-AND-EQUITY> 204,517
<SALES> 72,444
<TOTAL-REVENUES> 80,534
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 310,400
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (241,606)
<INCOME-TAX> 0
<INCOME-CONTINUING> (241,606)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (241,606)
<EPS-BASIC> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
