UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C., 20549
FORM 10 QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE
ACT OF 1934.
For the period ended September 30, 2000
OR
[ ] 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: 0-18049
E*twoMEDIA.com
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(Exact name of registrant as specified in its charter)
Nevada 91-1317131
------------------------------- ------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
67 Brompton Road
London, SW31DB
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(Address of principal executive offices) (Zip Code)
Issuer's Telephone Number: 011-44-207-225-3300
Check whether the issuer (1) filed all reports required to be filed by Section13
or 15(d) of the Exchange Act during the past 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]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: There were 29,671,840 shares of the
Registrants Common Stock issued and outstanding as of April 30, 2000.
1
<PAGE>
Index
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
1. Balance Sheet (unaudited) at September 30, 2000 3
2. Statements of Operations (unaudited) for the Three
months ended September 30, 2000 and 1999 4
3. Statements of Cash Flows (unaudited) for the Three
months ended September 30, 2000 and 1999 5
4. Notes to Financial Statements (unaudited) 6
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 7
PART II. OTHER INFORMATION 7
PART III. SIGNATURES 8
2
<PAGE> ETMD
CONSOLIDATED BALANCE SHEET (UNAUDITED) $
at 30/09/00
-----------
Assets
Current Assets
Cash .......................................................... 176
Trade Accounts Receivable ..................................... 39,913
Other Receivables ............................................. 37,500
-----------
Total Current Assets .......................................... 77,589
Fixed Assets (Net of Depreciation of $21,612) ................. 11,025
Other Assets
Investment .................................................... 641,706
Work In Progress .............................................. 0
-----------
Total Other Assets ............................................ 641,706
Total Assets .................................................. 730,320
===========
Liabilities and Stockholders' Equity
Current Liabilities
Trade Payables ................................................ 696,957
Accrued Expenses .............................................. 7,300
Other Payables ................................................ 10,345
-----------
Total Current Liabilities ..................................... 714,603
Other Liabilities
Deferred Income ............................................... 0
Loans Payable ................................................. 355,425
Total Other Liabilities ....................................... 355,425
-----------
Stockholders' Equity
Common stock,par value $.004167
shares authorized 50,000,000
issued and outstanding 29,501,840 (net of 4,507
treasury shares) .............................................. 22,703
Additional paid-in capital .................................... 14,994,327
Accumulated deficit ........................................... -15,356,739
-----------
Net Stockholders' equity ...................................... -339,708
Total Liabilities and Stockholders' Equity .................... 730,320
3
<PAGE>
ETMD
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
$ $
9 months 9 months
to Sept 30, to Sept 30,
2000 1999
---------- ---------
<S> <C> <C>
Revenues
Oil and gas sales ............................................................ 0
On-Line Publishing Sales ..................................................... 730,937 86,918
Total Sales .................................................................. 730,937 86,918
---------- ---------
Costs and expenses
Oil and gas costs ............................................................ 0
Coal mine costs .............................................................. 0
General and administrative ................................................... 856,410 294,827
Interest ..................................................................... 12,371 267
Depletion .................................................................... 0 0
Depreciation ................................................................. 6,096 823
---------- ---------
874,877 295,917
Extinguishment of Debt ....................................................... 234,520 0
---------- ---------
Net Profit/(Loss) ............................................................ 90,580 -295,917
========== =========
Basic and diluted net profit/(loss) per common share ......................... 0 0
========== =========
Basic and diluted weighted average number
of common shares outstanding ................................................. 28,505,489 5,556,664
========== =========
</TABLE>
4
<PAGE>
ETMD
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
$ $
Three months Three months
to Sept 30, to Sept 30,
2000 1999
---------- ---------
<S> <C> <C>
Oil and gas sales ............................................................ 0
On-Line Publishing Sales ..................................................... 77,963 86,918
---------- ---------
Total Sales .................................................................. 77,963 86,918
Costs and expenses
Oil and gas costs ............................................................ 0
Coal mine costs .............................................................. 0
General and administrative ................................................... 30,066 36,306
Interest ..................................................................... -13 267
Depletion .................................................................... 0 0
Depreciation ................................................................. 1,893 823
---------- ---------
31,946 37,396
Extinguishment of Debt ....................................................... 234,520 0
---------- ---------
Net Profit/(Loss) ............................................................ 280,537 -37,396
========== =========
Basic and diluted net profit/(loss) per common share ......................... 0 0
========== =========
Basic and diluted weighted average number
of common shares outstanding ................................................. 28,505,489 5,556,664
</TABLE>
5
<PAGE>
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
$ $
Nine months Nine months
to Sept 30, to Sept 30,
2000 1999
---------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net Profit/(Loss) .................................................................. 90,580 -208,999
Adjustments to reconcile net loss to net cash
used by operating activities
Exchange Movements ................................................................. -153,972 0
Depreciation ....................................................................... 6,096 823
Issuance of common stock for services .............................................. 150,000 0
Extinguishment of Debt ............................................................. 234,520 0
Debt discharged by stockholders .................................................... 1,084,993 0
Purchase of Fixed Assets ........................................................... 0 -23,525
Disposal of Investments ............................................................ 428,976 0
Decrease/(Increase) in Accounts receivable ......................................... 105,625 -372,742
Decrease/(Increase) in Other receivables ........................................... 119,087 -45,346
Decrease/(Increase) in Accounts payable ............................................ 221,794 348,465
(Decrease)/Increase in Accrued expenses ............................................ -278,810 -26,558
Decrease/(Increase) in Work in progress ............................................ 62,832 0
(Decrease)/Increase in Other payables .............................................. -65,986 757,327
(Decrease)/Increase in Deferred Income ............................................. -375,123 0
(Decrease)/Increase in Loans Payable ............................................... -1,575,906 0
---------- ---------
Net cash used by operating activities .............................................. 54,706 429,445
---------- ---------
Cash flows from financing activities
Proceeds from notes payable ........................................................ 10,000
Issuance of common stock ........................................................... 19,036
Additional Paid In Capital ......................................................... -510,007
---------- ---------
Net cash provided by financing activities .......................................... 0 -480,971
---------- ---------
Net increase (decrease) in cash .................................................... 54,706 -51,526
---------- ---------
Cash, and cash equivalents , beginning of period ................................... -54,530 0
---------- ---------
Cash, and cash equivalents , end of period ......................................... 176 -51,526
========== =========
Supplemental disclosure of cash flow activities:
Cash paid for interest ............................................................. 0 267
========== =========
Non-cash investing and financing transactions
Dividends in arrears ............................................................... 0 0
========== =========
</TABLE>
6
<PAGE>
Note A - Basis of presentation
The accompanying unaudited financial statements of E*twoMEDIA.com
(Formerly Nerox Energy Corporation) (the "Company") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB.
Accordingly, they do not include all of the information required by
generally accepted accounting principles for complete Financial statements. In
the opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation have been included.
Operating results for the Nine Months ended September 30, 2000 are not
necessarily indicative of the results for any future period. These statements
should be read in conjunction with the consolidated financial statements and
notes thereto included in the Company's Form 10-KSB for the year ended December
31, 1999.
Certain prior year amounts have been reclassified to conform to the
current year presentation.
Note B - Organization and Business
E*twoMedia.com was incorporated on September 26, 1985 as Gemini Energy
Corporation under the laws of the State of Nevada. On January 28,1994, the
Company's name was changed to Nerox Energy Corporation. On April 26,1998 the
company name was changed to Nerox Holding Corporation. On December 7, 1998 the
company name was changed to E*twoMedia.com.
E*twoMedia.com is constantly seeking business opportunities in the
online publishing industry and other means of financing to enable it to complete
its business plan.
As of August 31, 1999, E*twoMedia.com acquired all of the issued and
outstanding shares of common stock of Free Publishing Services Limited in
exchange for an aggregate of 17,000,000 authorized but unissued shares of the
common stock, $.001 par value, of E*twomedia.com. Free Publishing Services
Limited engages in the activity of organizing the production of advertising
brochures for companies in newspapers.
Note C - Income Taxes:
Income taxes are provided for the tax effects of transactions reported
in the financial statements and consist of taxes currently due plus deferred
taxes related primarily to differences between the recorded book basis and tax
basis of assets and liabilities for financial and income tax reporting. The
deferred tax assets and liabilities represent the future tax return consequences
of those differences, which will either be taxable or deductible then the assets
and liabilities are recovered or settled. Deferred taxes are also recognized for
operating losses that are available to offset future taxable income and tax
credits that are available to offset federal income taxes.
Due to recurring losses the company currently has no income taxes due.
As of September 30, 2000 the Company has a deferred tax asset of $ 0. Due to
recurring losses the company has a zero valuation allowance.
7
<PAGE>
ITEM 2 MANAGENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Management's Discussion and Analysis of Financial Condition
Management's plan is to seek an acquisition candidate.
Results of Operations
The Company has ceased operations and is seeking an acquisition candidate.
PART II
OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS
The Company has no contingent liabilities resulting from litigation and claims
incident to the ordinary course of business.
ITEM 2 CORPORATE NAME CHANGE
On December 14, 1998 the Board of Directors approved the Amendment to Articles
of incorporation to change the name of the Company from Nerox Energy Corporation
to E*twoMEDIA.com.
ITEM 3 CHANGES IN SECURITIES
Not applicable
ITEM 4 DEFAULTS UPON SENIOR SECURITIES
Not applicable
ITEM 5 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable
ITEM 6 OTHER INFORMATION
Not applicable
ITEM 7 EXHIBITS AND REPORTS ON FORM 8-K
Not applicable
8
<PAGE>
PART III. SIGNATURES
The information set forth herein reflects all adjustments which are, in the
opinion of management, necessary to a fair statement of the results for the
interim period.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Dated: November 14, 2000 e*twoMedia.com
By: S/Daniel Jefferies
--------------------------------
Daniel Jefferies, President
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the date indicated.
Dated: November 14, 2000 By: S/Daniel Jefferies
--------------------------------
Daniel Jefferies, President
9
