UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1999
-----------------
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________________ to _______________
Commission File No. 33-55254-11
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FORLINK SOFTWARE CORPORATION, INC.
(Exact name of Small Business Issuer as specified in its charter)
NEVADA 87-0438458
- -------------------------------------------- -------------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification Number)
P.O. Box 60, Collex/Geneva, Switzerland CH1239
- -----------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code 011-41-22-900-0000
----------------------
Indicate by check mark whether the Issuer (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 Issuer
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. [] Yes [X] No
Indicate the number of shares outstanding of each of the Issuer's
classes of common stock, as of the latest practicable date.
Class Outstanding as of November 21, 1999
- ------------------------------------ -----------------------------------
$.001 PAR VALUE CLASS A COMMON STOCK 25,000,000 SHARES
1
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements.
BASIS OF REPRESENTATION
General
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-QSB and, therefore, do not include
all information and footnotes necessary for a complete presentation of financial
position, results of operations, cash flows and stockholders' equity (deficit)
in conformity with generally accepted accounting principles. In the opinion of
management, all adjustments considered necessary for a fair presentation of the
results of operations and financial position have been included and all such
adjustments are of a normal recurring nature. Operating results for the quarter
ended March 31, 1999, are not necessarily indicative of the results that can be
expected for the year ending December 31, 1999.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The Company has had no operational history and has yet to engage in
business of any kind through March 31, 1999. The Company is currently operating
a new line of business as disclosed in its 8-K filing of November 24, 1999 which
is incorporated herein by this reference.
Year 2000 Disclosure
The Company does not anticipate any problem in dealing with computer
entries in the year 2000 or thereafter, with any computers currently used at any
of their facilities. All of the Company's computer systems are new and have been
year 2000 compliant from their acquisition. The Company keeps current with all
updates and revisions with all software the Company currently uses. It is
anticipated that the software updates reflect required revisions to accommodate
transactions in the year 2000 and thereafter. Though it is not anticipated that
the Company will have a problem at the turn of the century, the Company intends
to coordinate the resolution of any year 2000 problems with the vendors of the
software the Company utilizes.
State of Readiness
The Company does not anticipate any problems in dealing with year 2000
issues. All of the Company's computer systems have been acquired within the last
year and are year 2000 compliant. In this regard, the Company uses computers
(PCs) owned by management. All such systems have computer processors capable of
properly recognizing dates past 1999. The Company's computer systems are used
primarily for word processing, bookkeeping and Internet communications. The
Company keeps current with all updates and revisions of all software used in
connection with the Company's business. The Company's current word processing,
accounting and Internet communications software is year 2000 compliant. From an
internal standpoint, the Company is year 2000 ready. Indeed, the Company has
made the year 2000 transition without any problems.
The Company's business may be impacted by the year 2000 readiness of
third parties with whom the Company has a material relationship. Such parties
include banks, telephone companies, attorneys, accountants and transfer agents.
The Company has made inquiry of its transfer agent, Nevada Agency and Trust
Company, its attorneys and its accountant regarding their year 2000 readiness.
All of the Company's attorneys, its accountant and its transfer agent are year
2000
2
<PAGE>
compliant. Larger vendors, such as banks and telecommunications companies, have
represented themselves as year 2000 compliant. However, the Company has
experienced no year 2000 related problems since the turn of the new year.
Costs of Year 2000 Issues
The Company's costs of remediating any year 2000 issues has been
inconsequential. Such costs total no more than a few thousand dollars and have
been borne by the members of the Company's management which own the computer
systems the Company uses. Indeed, the general need to upgrade and replace
computer systems was more of a factor in recent computer hardware and software
acquisitions than the year 2000 was in connection with the computer systems the
Company uses.
Year 2000 Issues, Risks and Contingency Plans
The most reasonable worst case scenario the Company faces as a result
of year 2000 issues is the failure of third party service providers, such as
banks or telecommunications companies, failing as a result of their failure to
properly remediate any year 2000 problem they may have. If that happens, the
Company will deal with service providers who have not failed to remediate their
year 2000 issues. Management does not anticipate that the costs of changing such
third party service providers will be significant.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
99.1 Financial Statements as of March 31, 1999
27 Financial Data Schedule
(b) Reports on Form 8-K
None.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Issuer has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FORLINK SOFTWARE CORPORATION, INC.
Dated: January 21, 2000
Michael J.A. Harrop, Director
3
<PAGE>
FORLINK SOFTWARE CORPORATION, INC.
(A Development Stage Company)
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
(Unaudited) (Audited)
---------------------- ---------------------
ASSETS
CURRENT ASSETS
<S> <C> <C>
Cash in bank $ 0 $ 0
---------------------- ---------------------
TOTAL CURRENT ASSETS 0 0
OTHER ASSETS
Organization costs 0 0
---------------------- ---------------------
0 0
---------------------- ---------------------
$ 0 $ 0
====================== =====================
LIABILITIES & EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 0 $ 630
---------------------- ---------------------
TOTAL CURRENT LIABILITIES 0 630
STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock $.001 par value:
Authorized - 100,000,000 shares
Issued and outstanding 5,000,000 shares 5,000 5,000
Additional paid-in capital 272,630 272,000
Stock subscription receivable (275,000) (275,000)
Deficit accumulated during the development stage (2,630) (2,630)
---------------------- ---------------------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 0 (630)
---------------------- ---------------------
$ 0 $ 0
====================== =====================
</TABLE>
F-1
<PAGE>
FORLINK SOFTWARE CORPORATION, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
1/7/86
Three Months Ended (Date of
March 31, inception) to
1999 1998 3/31/99
----------------- ----------------- -----------------------
<S> <C> <C> <C>
Net sales $ 0 $ 0 $ 0
Cost of sales 0 0 0
----------------- ----------------- -----------------------
GROSS PROFIT 0 0 0
General and administrative expenses 0 0 2,630
----------------- ----------------- -----------------------
NET LOSS $ 0 $ 0 $ (2,630)
================= ================= =======================
Net income (loss) per weighted
average share $ .00 $ .00
================= =================
Weighted average number of common
shares used to compute net income
(loss) per weighted average share 5,000,000 1,000,000
================= =================
</TABLE>
F-2
<PAGE>
FORLINK SOFTWARE CORPORATION, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
1/7/86
(Date of
Three Months Ended March 31, Inception) to
1999 1998 3/31/99
--------------- --------------- ----------------
OPERATING ACTIVITIES
<S> <C> <C> <C>
Net (loss) $ 0 $ 0 $ (2,630)
Adjustments to reconcile net (loss) to cash used
by operating activities:
Amortization 0 0 50
Change in accounts payable (630) 0 0
--------------- --------------- ----------------
NET CASH USED
BY OPERATING ACTIVITIES (630) 0 (2,580)
INVESTING ACTIVITIES
Organization costs 0 0 (50)
--------------- --------------- ----------------
NET CASH PROVIDED (USED)
BY INVESTING ACTIVITIES 0 0 (50)
FINANCING ACTIVITIES
Proceeds from sale of common stock 0 0 2,000
Capital contributed 630 0 630
--------------- --------------- ----------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 630 0 2,630
--------------- --------------- ----------------
INCREASE IN CASH
AND CASH EQUIVALENTS 0 0 0
Cash and cash equivalents at beginning of year 0 0 0
--------------- --------------- ----------------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 0 $ 0 $ 0
=============== =============== ================
</TABLE>
F-3
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted
from Forlink Software Corporation, Inc. March 31, 1999
financial statements and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<CIK> 0000866458
<NAME> Forlink Software Corporation, Inc.
<CURRENCY> US
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1.00
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 5,000
<OTHER-SE> (5,000)
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-BASIC> .00
<EPS-DILUTED> .00
</TABLE>
