United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(MarkOne)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1999
Or
[ ] Transition report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from to
Commission file number: 33-55254-08
silverzipper.com, Inc.
(Exact name of registrant as specified in its charter)
NEVADA 87-0434286
(State or other jurisdiction (IRS Employer
of incorporation) Identification Number)
350 FIFTH AVENUE, SUITE 1222, NEW YORK, NEW YORK 10118
(Address of principal executive offices) (Zip code)
(212) 563-7040
(Registrant's telephone number, including area code)
Not Applicable
(Former name or address, if changed since last report)
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 [X] NO [ ]
The number of shares of Class A Common Stock, $.001 par value, outstanding at
November 12, 1999 was 3,476,080.
<PAGE>
silverzipper.com, Inc.
Index
PART 1 - Financial Information
ITEM 1. Financial Statements
Consolidated Balance Sheets - September 30, 1999 and December 31, 1998.
Consolidated Statements of Operations - Nine Months and Three Months Ended
September 30, 1999.
Consolidated Statements of Cash Flows - Nine Months Ended September 30,
1999.
Notes To Consolidated Interim Financial Statements - September 30, 1999.
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
PART II - Other Information
ITEM 6. Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. Financial Statements
silverzipper.com, Inc. (formerly Saber Capital, Inc.) and Subsidiaries
Consolidated Balance Sheets
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
------------ -----------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash ........................................................................ $ 158,207 $ 93,081
Accounts receivable, net .................................................... 54,596 101,408
Inventory ................................................................... 1,989,240 768,804
Prepaid expenses and other current assets ................................... 108,074 78,073
----------- -----------
Total current assets ..................................................... 2,310,117 1,041,366
----------- -----------
PROPERTY AND EQUIPMENT, NET .................................................... 24,021 22,566
----------- -----------
OTHER ASSETS:
Intangible assets, net ...................................................... 842,436 916,786
Deposits .................................................................... 4,767 4,767
----------- -----------
847,203 921,553
----------- -----------
$ 3,181,341 $ 1,985,485
=========== ===========
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ............................................................ $ 403,244 $ 261,639
Accounts payable-Factor ..................................................... 3,312,570 2,060,558
Accrued expenses ............................................................ 454,403 125,201
Notes payable ............................................................... 125,000 1,000,000
----------- -----------
Total current liabilities ................................................ 4,295,217 3,447,398
----------- -----------
LONG-TERM LIABILITIES:
Notes payable-Stockholders .................................................. -- 1,834,018
----------- -----------
Total liabilities .............................................................. 4,295,217 5,281,416
=========== ===========
STOCKHOLDERS EQUITY:
Class A Common Stock, $0.001 par value Authorized - 100,000,000 shares, issued and
outstanding, 3,476,080 shares at September 30,1999 and 2,870,000 shares at
December 31, 1998 ........................................................... 3,476 2,870
Additional paid-in capital ................................................... 3,901,220 499,130
Retained earnings/(deficit) .................................................. (5,018,573) (3,797,931)
----------- -----------
Total Stockholders' Equity/(deficit) ..................................... (1,113,877) (3,295,931)
----------- -----------
$ 3,181,341 $ 1,985,485
=========== ===========
See Notes to Consolidated Interim financial Statements
</TABLE>
<PAGE>
silverzipper.com, Inc. (formerly Saber Capital, Inc.) and Subsidiary
Consolidated Statements Of Operations
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30, September 30,
------------- -------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales, net .............................. $ 2,948,523 $ 2,694,675 $ 2,242,325 $ 2,277,544
Cost of goods sold ...................... 2,064,380 2,206,006 1,434,138 1,615,787
----------- ----------- ----------- -----------
Gross Profit ............................ 884,143 488,669 808,187 661,757
Operating expenses ...................... 1,789,904 1,623,855 585,186 493,045
----------- ----------- ----------- -----------
Operating Income/(Loss) ................. (905,761) (1,135,186) 223,001 168,712
Interest expense (net) .................. 314,881 444,495 102,971 165,947
----------- ----------- ----------- -----------
Earnings/(Loss) Before Income Taxes ..... (1,220,642) (1,579,681) 120,030 2,765
Provision for income taxes .............. -- -- -- --
----------- ----------- ----------- -----------
Net Income/(Loss) ........................ $(1,220,642) $(1,579,681) $ 120,030 $ 2,765
=========== =========== =========== ===========
Income/(loss) per share-basic and diluted $ (0.42) $ (0.55) $ 0.04 $ 0.00
=========== =========== =========== ===========
Weighted Average Number
Of Shares Outstanding ............... 2,932,244 2,870,000 3,056,734 2,870,000
=========== =========== =========== ===========
See Notes to Consolidated Interim Financial Statements
</TABLE>
<PAGE>
silverzipper.com, Inc. (formerly Saber Capital, Inc.) and Subsidiary
Consolidated Statements Of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-------------
1999 1998
---- -----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income/(Loss) .................................... $(1,220,642) $(1,579,681)
Adjustments to reconcile net income/(loss) to
Cash used by operating activities:
Depreciation and amortization .................. 81,654 77,100
Decrease/(increase) in:
Accounts receivable, net ................. 46,812 73,539
Inventory ................................ (1,220,436) (2,005,386)
Prepaid expenses and other current assets (30,001) (12,936)
Increase/(decrease) in:
Accounts payable ......................... 141,605 186,129
Accrued expenses ......................... 329,202 (28,150)
----------- -----------
Net cash provided by/(used in) operating activities ..... (1,871,806) (3,289,385)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment .................. (8,759) (23,988)
----------- -----------
Net cash used in investing activities ................... (8,759) (23,988)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from private placement of common
stock, net of offering costs ................... 863,879 --
Merger expenses ................................... (225,000) --
Proceeds from private placement of promissory notes -- 1,000,000
Increase in accounts payable-Factor ............... 1,252,012 2,157,779
Repayment of acquisition note payable ............. -- (134,355)
Net repayment of notes payable-stockholders ....... (20,000) (99,209)
Advances from investors ........................... 75,000 --
----------- -----------
Net cash provided by financing activities ............. 1,945,691 2,924,215
----------- -----------
Net increase/(decrease) in cash ....................... 65,126 (389,158)
Cash at the beginning of the year ..................... 93,081 395,364
----------- -----------
Cash at the end of the period ......................... $ 158,207 $ 6,206
=========== ===========
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest .......................................... $ 300,913 $ 428,496
=========== ===========
Supplemental Disclosure of Non-Cash Investing Activities:
Conversion of notes payable into common stock ..... $ 950,000 $ --
=========== ===========
Conversion of notes payable-stockholders into
common stock ...................................... $ 1,814,018 $ --
=========== ===========
See Notes to Consolidated Interim Financial Statement
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000866491
<NAME> silverzipper.com, Inc.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 158,207
<SECURITIES> 0
<RECEIVABLES> 54,596
<ALLOWANCES> 0
<INVENTORY> 1,989,240
<CURRENT-ASSETS> 2,310,117
<PP&E> 24,021
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,181,341
<CURRENT-LIABILITIES> 4,295,217
<BONDS> 0
0
0
<COMMON> 3,476
<OTHER-SE> (1,117,353)
<TOTAL-LIABILITY-AND-EQUITY> 3,181,341
<SALES> 2,948,523
<TOTAL-REVENUES> 2,948,523
<CGS> 2,064,380
<TOTAL-COSTS> 2,064,380
<OTHER-EXPENSES> 1,789,904
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 314,881
<INCOME-PRETAX> (1,220,642)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,220,642)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,220,642)
<EPS-BASIC> (.42)
<EPS-DILUTED> (.42)
</TABLE>
