<PAGE>
U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File No. 0-16665
THE INTERNET ADVISORY CORPORATION
---------------------------------
(Name of Small Business Issuer in its Charter)
UTAH 87-0426358
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(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
2455 East Sunrise Blvd., Suite 401
Ft. Lauderdale, Florida 33304
-----------------------------
(Address of Principal Executive Offices)
Issuer's Telephone Number: (888) 522-0958
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 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.
(1) Yes X No (2) Yes X No
--- --- --- ---
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APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date:
September 30, 1998
7,202,017
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
The Financial Statements of the Internet Advisory Corporation, a
Utah corporation (the "Company"), required to be filed with this 10-QSB
Quarterly Report were prepared by management, and commence on the following
page, together with Related Notes. In the opinion of management, the
Financial Statements fairly present the financial condition of the Company.
<PAGE>
<PAGE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Financial Statements
September 30, 1998
Independent Accountants' Report
<PAGE>
<TABLE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Balance Sheet
(Unaudited)
<CAPTION>
ASSETS
September 30, 1998
<S> <C>
Current Assets
Cash $ 3,267
Total Current Assets 3,267
Equipment, net 24,422
Other Assets 7,002
TOTAL ASSETS $ 34,691
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable $ 14,568
Unearned income 98,002
Total Current Liabilities 112,570
Stockholders' Deficit
Common stock 7,202
Additional paid in capital 3,068,838
Accumulated deficit (3,153,919)
Total Stockholders' Deficit (77,879)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 34,691
</TABLE>
See accompanying notes and Independent Accountants' report
<TABLE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Statements of Operations
(Unaudited)
<CAPTION>
For the Three For the Three
Months Ended Months Ended
September 30, 1998 September 30, 1997
<S> <C> <C>
Revenues $ 108,982 $ 1,439
Sales, general and
administrative expense 130,290 5,084
Net Loss $ (21,308) $ (3,645)
Net Loss per Share $ (0.01) $ (0.01)
Weighted Average
Number of Shares
Outstanding 7,202,017 7,202,017
</TABLE>
See accompanying notes and Independent Accountants' report
<TABLE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Statements of Operations
(Unaudited)
<CAPTION>
For the Nine For the Nine
Months Ended Months Ended
September 30, 1998 September 30, 1997
<S> <C> <C>
Revenues $ 291,576 $ 1,439
Sales, general and
administrative expense 336,010 5,084
Net Loss $ (44,434) $ (3,645)
Net Loss per Share $ (0.01) $ (0.01)
Weighted Average
Number of Shares
Outstanding 7,202,017 7,202,017
</TABLE>
See accompanying notes and Independent Accountants' report
<TABLE> <PAGE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Statements of Cash Flows
(Unaudited)
<CAPTION>
For the Three For the Three
Months Ended Months Ended
September 30, 1998 September 30, 1997
<S> <C> <C>
Cash Flows Used for Operating
Activities:
Net Loss $ (21,038) $ (3,645)
Adjustments to reconcile net
loss to net cash used for
operating activities:
Depreciation 1,225 -
Increase in current liabilities 10,447 5,000
Net Cash Flows Used for Operating
Activities (9,366) 1,355
Cash Flows Used for Investing
Activities:
Purchase of equipment (2,758) -
Net Cash Flows Used for Investing
Activities (2,758) -
Net Increase (Decrease) in Cash (12,124) 1,355
Beginning Cash Balance 15,391 -
Ending Cash Balance $ 3,267 $ 1,355
</TABLE>
See accompanying notes and Independent Accountants' report
<TABLE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Statements of Cash Flows
(Unaudited)
<CAPTION>
For the Nine For the Nine
Months Ended Months Ended
September 30, 1998 September 30, 1997
<S> <C> <C>
Cash Flows Used for Operating
Activities:
Net Loss $ (44,434) $ (3,645)
Adjustments to reconcile
net loss to net cash used
for operating activities:
Depreciation 3,673 -
Increase in current
liabilities 3,615 5,000
Net Cash Flows Used for
Operating Activities (37,146) 1,355
Cash Flows Used for Investing
Activities:
Purchase of equipment (14,708) -
Increase in deposits (7,002) -
Net Cash Flows Used for
Investing Activities (21,710) -
Net Increase (Decrease) in
Cash (58,856) 1,355
Beginning Cash Balance 62,123 -
Ending Cash Balance $ 3,267 $ 1,355
</TABLE>
See accompanying notes and Independent Accountants' report
<PAGE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Notes to Condensed Financial Statements
September 30, 1998
PRELIMINARY NOTE
The accompanying condensed consolidated financial statements have been
prepared without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted. It is suggested that these condensed financial
statements be read in conjunction with the financial statements and
notes thereto included in the Company's Annual Report on Form 10-KSB for
the year ended December 31, 1997, and Form 8-K, dated June 22, 1998, as
amended.
ORGANIZATION AND MERGER
Olympus M.T.M. Corporation ("Olympus" or the "Company") was incorporated
in the State of Utah on September 21, 1981. The Company was formed for
the primary purpose of acquiring and investing in energy resources. The
Company was not successful in its endeavors and ceased operations in or
before April, 1990. The Company was then dormant until it acquired all
of the assets and liabilities of The Internet Advisory Corporation
("IAC") on June 22, 1998, pursuant to an Agreement and Plan of Merger.
The Internet Advisory Corporation is a Florida corporation incorporated
on August 8, 1997 for the purpose of providing access to the Internet
for its customers, and Web design. Subsequent to the Agreement and Plan
of Merger, the name of Olympus M.T.M. Corporation was changed to The
Internet Advisory Corporation.
The Agreement and Plan of Merger set forth that Olympus would issue
6,000,000 shares to IAC's shareholders. At the time of said issuance,
Olympus had 1,202,017 shares outstanding. Immediately after this
issuance, IAC's shareholders owned 6,000,000 of the total outstanding of
7,202,017 shares, or 83 %.
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
- --------------------------------------------------------------------
Plan of Operation.
- ------------------
The Company's plan of operation for the next 12 months is
to continue with its present business of web site programing and web hosting.
The Company will concentrate on web site programs for various targeted
industries, which include the travel, automotive, insurance and other e-
commerce industries. The Company advertises the availability of its services
to these businesses through various means, including print, radio and
leafletting. Upgrades and renewals for existing customers will also be a
significant part of the Company's plan of operation for the next 12 months.
Management is exploring the possibility of creating new divisions
within the Company and/or acquiring existing businesses. Because of its
presently limited cash on hand, the Company expects that any such expansion
during the next 12 months will have to be funded through private placements of
"unregistered" and "restricted" shares of its common stock. There can be no
assurance that the Company will be able to obtain sufficient funding to
exploit any expansion opportunity that is presented or that, if such funding
is obtained, any expansion activities will be profitable. At present, the
Company has not identified any expansion opportunity. See the heading
"Liquidity" of this caption.
Results of Operations.
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During the quarterly period ended September 30, 1998, the Company
received revenues of $108,982, and incurred expenses totaling $130,290. Net
loss during the period was $21,308, equaling $0.01 per share.
Liquidity.
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As of September 30, 1998, the Company had total assets of
$34,691, of which $3,267 consisted of cash and cash equivalents.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
- ----------------------------
None; not applicable.
Item 2. Changes in Securities.
- --------------------------------
None; not applicable.
Item 3. Defaults Upon Senior Securities.
- ------------------------------------------
None; not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
- --------------------------------------------------------------
None; not applicable.
Item 5. Other Information.
- ----------------------------
None; not applicable.
Item 6. Exhibits and Reports on Form 8-K.
- -------------------------------------------
(a) Exhibits.
27 Financial Data Schedule.
(b) Reports on Form 8-K.
None.
<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.
THE INTERNET ADVISORY CORPORATION
Date: 11/12/98 By/s/Jeffrey A. Olweean
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Jeffrey A. Olweean
President and Director
Date: 11/12/98 By/s/Nicole Leigh
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Nicole Leigh
Vice President and Director
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 3267
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