UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934.
For the quarterly period ended: October 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: 33-10456
NETWORK USA, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 76-0192477
-------------------------------- ---------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization identification No.)
5617 Bissonnet, Suite 215, Houston, Texas 77081
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(Address of principal executive officer) (Zip Code)
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
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The number of shares of common stock, $0.01 par value, outstanding as of October
31, 2000: 10,635,000 shares
Transitional Small Business Disclosure Format (check one): Yes No X
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NETWORK USA, INC.
QUARTER ENDED October 31, 2000
PART 1.
Item 1. Financial Statements
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<CAPTION>
NETWORK USA, INC.
BALANCE SHEETS
As of October 31, 2000
& April 30, 2000
10/31/00 4/30/00
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[Unaudited] [Audited]
<S> <C> <C>
ASSETS
Total Current Assets $ 0 $ 0
----------------- ----------------
TOTAL ASSETS $ 0 $ 0
================= ================
LIABILITIES & STOCKHOLDERS DEFICIT
LIABILITIES
Current Liabilities 0 $ 0
Loans from Stockholders $ 8823 $ 1830
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Total Current Liabilities 8823 1830
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TOTAL LIABILITIES 8823 1830
STOCKHOLDERS' DEFECIT
Preferred stock, $.01 par, 1,000,000 shares authorized,
none issued and outstanding - -
Common stock, $.01 par value, 50,000,000 shares
authorized, 10,635,000 issued and outstanding
Paid-in Capital 106,350 106,350
Accumulated Deficit (115,173) 108,180
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TOTAL STOCKHOLDERS' DEFECIT (8823) (1830)
----------------- ----------------
TOTAL LIABILITIES & STOCKHOLDERS DEFECIT $ 0 $ 0
================= ================
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<CAPTION>
NETWORK USA, INC.
STATEMENTS OF OPERATIONS
For the Three and Six Month Periods Ended October 31, 2000 and 1999
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
10/31/00 10/31/99 10/31/00 10/31/99
------------- ------------- ------------- -------------
[Unaudited] [Unaudited]
<S> <C> <C> <C> <C>
REVENUE
Income 0 0 0
-------------- --------------- -------------- --------------
NET REVENUE 0 0 0
OPERATING EXPENSES
Office Expenses 904 0 1244 0
Professional Fees 2584 0 5749 0
-------------- --------------- -------------- --------------
TOTAL OPERATING EXPENSES 3,488 0 6993 0
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NET INCOME/(LOSS) $ (3,488) 0 (6993) 0
============== ============== ============== ==============
NET LOSS PER SHARE $ (0.00) (0.0) (0.00) (0.00)
============== ============== ============== ==============
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 10,635,000 10,635,000 10,635,000 10,635,000
============== ============== ============== ==============
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<CAPTION>
NETWORK USA, INC.
STATEMENTS OF CASH FLOWS
For the Six Month Periods Ended October 31, 2000 and 1999
Six Months Six Months
Ended Ended
10/31/00 10/31/99
---------------- ----------------
<S> <C> <C>
[Unaudited] [Unaudited]
Cash Flows Used For Operating Activities
----------------------------------------
Net Loss $ (6,993) $ 0
Adjustments to reconcile net loss to net cash
used in operating activities:
Increase/(Decrease) in loans from shareholder 0 0
Increase/(Decrease) in current liabilities (1,830)
---------------- ----------------
Net Cash Used For Operating Activities 0 0
================ ================
Cash Flows Provided by Financing Activities 8,823 0
------------------------------------------- ---------------- ----------------
Net Increase In Cash 0 0
Beginning Cash Balance 0 0
Ending Cash Balance 0 0
================ ================
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NETWORK USA, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited interim financial statements of Network USA, Inc., a
Nevada corporation, have been prepared in accordance with generally accepted
accounting principles and the rules of the Securities and Exchange Commission
("SEC"), and should be read in conjunction with the audited financial statements
and notes thereto contained in the Company's latest Annual Report filed with the
SEC on Form 10-KSB. In the opinion of management, all adjustments, consisting
of normal recurring adjustments, necessary for a fair presentation of financial
position and the results of operations for the interim periods presented have
been reflected herein. The results of operations for interim periods are not
necessarily indicative of the results to be expected for the full year. Notes
to the financial statements which would substantially duplicate the disclosure
contained in the audited financial statements for the most recent fiscal year,
2000, as reported in Form 10-KSB, have been omitted.
Item 2. Management's Discussion and Analysis or Plan of Operation.
This Management's Discussion and Analysis as of October 31, 2000 and for
the three-month period ended October 31, 2000 and 1999 should be read in
conjunction with the unaudited financial statements and notes thereto set forth
in Item 1 of this report.
The information in this discussion contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended; including,
without limitation, statements concerning the Company's commencement of a new
business plan, and its ability to raise funds in connection with such plan.
Such statements are based upon current expectations that involve risks and
uncertainties. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking statements. For example,
words such as, "may," "will," "should," "estimates," "predicts," "potential,"
"continue," "strategy," "believes," "anticipates," "plans," "expects,"
"intends," and similar expressions are intended to identify forward-looking
statements. The Company's actual results and the timing of certain events may
differ significantly from the results discussed in the forward-looking
statement. Factors that might cause or contribute to such a discrepancy
include, but are not limited to the risks discussed in the Company's other SEC
filings, including those in the annual report on Form 10-KSB for the year ended
April 30, 2000. These forward-looking statements speak only as of the date
hereof. The Company expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in its expectations with regard thereto
or any change in events, conditions or circumstances on which any such statement
is based.
<PAGE>
The Company has not engaged in any material operations since approximately
1988. During the quarterly period covered by this quarterly report, the Company
received no revenue and had minimal expenses.
The Company's financial statements have been presented on the basis that it
is a going concern, which contemplates the realization of assets and the
satisfaction of liabilities in the normal course of business. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
Plan of Operation.
Management is presently reviewing business opportunities and is advertising
the Company in its new business consulting capacity. The Company is generally
directed toward the financial, industrial and Internet technology industries.
As the Company is in the early stages of developing and implementing its
new business plan, and it does not know what level of funding will be required
to execute such plan. The Company intends to raise additional funding to
execute its business plan, although it has no present commitments for capital
and there is no assurance that it will receive any such commitments. The
Company will be dependent on best-efforts sources of financing for the near
future. During the quarter ended October 31, 2000, the Company borrowed $3,488
from an officer and shareholder of the Company. It should not be assumed that
such loans will be available in the future.
The Company's level of new business operations will be dependent on the
amount of funds it is able to raise. Due to the lack of monthly operating
expenditure currently incurred, the Company believes it can continue to operate
the Company for an indefinite period of time at its present level. However, as
the Company begins to pursue increased business activity, it expects its monthly
operating expenses to substantially increase.
<PAGE>
PART II - OTHER INFORMATION
In accordance with the instructions for filing Form 10-QSB, Items 1, 2, 3, 4,
and 5 are omitted.
Item 6. Exhibits and Reports on Form 8-K.
(a) The following exhibits are filed as part of the quarterly report:
EXHIBIT NO. IDENTIFICATION OF EXHIBIT
Exhibit 3.1 Articles of Incorporation of Network USA, Inc. (previously filed
on Form 10-KSB for the year ended April 30, 2000)
Exhibit 3.2 Bylaws of Network USA, Inc. (previously filed on Form 10-KSB for
the year ended April 30, 2000)
Exhibit 4.1 Common Stock Certificate of Network USA, Inc. (previously filed
on Form 10-KSB for the year ended April 30, 2000)
Exhibit 27.1 Financial Data Schedule
(b) There were no reports filed on Form 8-K during the quarter ended October
31, 2000.
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.
Network USA, Inc.
Date: 12-14-00 By/S/ Michael L. Mead
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Michael L. Mead, Director and Co-President
Date: 12-14-00 By/S/ Richard J. Church
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Richard J. Church, Director and Co-President
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