<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, 1999
[ ] 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, 1999
9,005,018
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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.
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The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Balance Sheet
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
Sept 30, 1999
<S> <C>
Current Assets
Cash $ -42,315
Marketable securities held for 52,312
Total Current Assets 9,997
Equipment, net 482,722
Other Assets 7,002
TOTAL ASSETS 499,721
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts liabilities 62,869
Unearned income 84,556
Total Current Liabilities 147,425
Stockholders' Equity
Common stock 8,249
Additional paid in capital 1,367,210
Accumulated deficit (1,023,163)
Total Stockholders' Equity 352,296
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 499,721
</TABLE>
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The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
For the Three For the Three For the Nine For the Nine
Months Ended Months Ended Months Ended Months Ended
Sept 30, 1999 Sept 30, 1998 Sept 30, 1999 Sept 30, 1998
<S> <C> <C> <C> <C>
Revenues $ 112,584 $ 105,487 $ 332,665 $ 288,082
Sales, general
and administrative
expense 384,572 129,842 1,224,126 332,610
Net Loss From
Operations (271,988) (24,355) (891,461) (44,528)
Other Income 6,136 642 6,732 642
Net Loss $ (265,852) $ (23,713) $ (884,729) $ (43,886)
Net Loss
per Share $ (0.03) $ (0.01) $ (0.11) $ (0.01)
Weighted Average
Number of Shares
Outstanding 8,249,017 7,202,017 8,010,350 3,035,350
</TABLE>
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The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
For the Three For the Three
Months Ended Months Ended
Sept 30, 1999 Sept 30, 1998
<S> <C> <C>
Cash Flows Used for Operating Activities:
Net Loss $ (265,852) $ (23,713)
Adjustments to reconcile net loss to
net cash used for operating activities:
Depreciation 24,311 1,225
Increase in other current assets (250) -0-
Increase (decrease) in current liabilities (17,932) 16,338
Net Cash Flows Used for Operating Activities (259,723) (6,150)
Cash Flows Used for Investing Activities:
Purchase of equipment (5,047) (3,369)
Sale of investments 54,697
Net Cash Flows Used for Investing Activities 49,650 (3,369)
Cash Flows Provided by Financing Activities
Change in Loans Principle 20,000 (5,890)
Proceeds from sale of securities 52,500 -0-
Net Cash Flows Provided by Financing
Activities 72,500 (5,890)
Net Increase (Decrease) in Cash (137,573) (15,409)
Beginning Cash Balance 95,258 15,391
Ending Cash Balance (42,315) $ (18)
</TABLE>
<PAGE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Condensed Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
For the Nine For the Nine
Months Ended Months Ended
Sept 30, 1999 Sept 30, 1998
<S> <C> <C>
Cash Flows Used for Operating Activities:
Net Loss $ (884,729) $ (43,886)
Adjustments to reconcile net loss to
net cash used for operating activities:
Depreciation 68,228 3,673
Increase in other current assets (250) (7,002)
Increase (decrease) in current liabilities (13,273) 7,541
Net Cash Flows Used for Operating Activities (830,024) (39,674)
Cash Flows Used for Investing Activities:
Purchase of equipment (512,663) (16,577)
Purchase of investments (52,062) 0
Net Cash Flows Used for Investing Activities (564,725) ($16,577)
Cash Flows Provided by Financing Activities
Change in Loans Principle 20,000 (5,890)
Proceeds from sale of securities 947,500 -0-
Net Cash Flows Provided by Financing Activities 967,500 (5,890)
Net Increase (Decrease) in Cash (427,249) (62,141)
Beginning Cash Balance 384,934 62,123
Ending Cash Balance (42,315) $ (18)
</TABLE>
<PAGE>
The Internet Advisory Corporation
Formerly
Olympus M.T.M. Corporation
Notes to Condensed Financial Statements
September 30, 1999
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, 1998.
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 then 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. See the heading
"Liquidity" of this caption.
Results of Operations.
- ----------------------
During the quarterly period ended September 30, 1999, the Company
received revenues of $112,584, and incurred expenses totaling $384,572. Net
loss during the period was $(271,988), equaling $(0.03) per share. During the
quarterly period ended September 30, 1998, the Company received revenues of
$105,487, with expenses of $129,842, for a net loss of $(23,713), or ($0.01)
per share.
Liquidity.
- ----------
As of September 30, 1999, the Company had total assets of
$499,721, of which $9,997 consisted of cash and marketable securities.
"Year 2000".
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Management believes that the Company's operations are Year 2000
compliant. All of its hardware systems use the full four-digit format for
defining years. All of the Company's software systems, both purchased and
internally developed, use the full four-digit date format. The Company has
tested its systems by advancing its computer clocks to the year 2000 and
beyond; the systems have passed these tests.
The Company can give no assurance that third parties with whom it
does business (e.g., banks and utilities) will ensure Year 2000 compliance in
a timely manner or that, if they do not, their computer systems will not have
an adverse effect on the Company. However, management does not believe that
Year 2000 compliance issues of such third parties will result in a material
adverse effect on the Company's financial condition or results of operations.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
- ----------------------------
None; not applicable.
Item 2. Changes in Securities and Use of Proceeds.
- ----------------------------------------------------
There were no material changes in the Company's securities during
the quarterly period ended September 30, 1999. Nor were there any issuances
of "unregistered" and "restricted" securities of the Company during that
period.
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: 11/11/99 By /s/ Jeffrey A. Olweean
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Jeffrey A. Olweean
President and Director
Date: 11/11/99 By /s/ Nicole Leigh
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Nicole Leigh
Vice President and Director
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<ARTICLE> 5
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<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> (42315)
<SECURITIES> 52312
<RECEIVABLES> 0
<ALLOWANCES> 0
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<OTHER-EXPENSES> 1224126
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<EPS-BASIC> (0.11)
<EPS-DILUTED> (0.11)
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