<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, 2000.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 for the transition period from _______ to _______.
Commission File No. 33-55254-39
SKYNET TELEMATICS.COM, INC.
(Exact name of Small Business Issuer as specified in its charter)
NEVADA 87-0485315
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Link House, 259 City Road
London, England EC1V 1JE
(Address of principal executive offices)
44 207 490 7900
(Issuer's telephone number)
Check whether the issuer: (1) has filed all reports required to be filed by
Section 13 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 X No
--- ---
The number of shares outstanding of the issuer's common stock, $.001 par value,
as of November 17, 2000, were 27,916,271 shares.
Transitional Small Business Disclosure Format: Yes No X
--- ---
<PAGE>
SKYNET TELEMATICS.COM, INC.
FORM 10-QSB FOR QUARTER ENDED
SEPTEMBER 30, 2000
INDEX
PART I - FINANCIAL INFORMATION Page
Item 1 Financial Statements
Balance Sheet as of September 30, 2000 3
Statement of Operations for the three months and nine months
ended September 30, 2000 and 1999 4
Statement of Cash Flows for the nine months ended
September 30, 2000 and 1999 5
Notes to Financial Statements 6
Item 2 Management's Discussion and Analysis 7
PART II - OTHER INFORMATION
Item 1 Legal Proceedings 12
Item 2 Changes in Securities 12
Item 3 Defaults Upon Senior Securities 12
Item 4 Submission of Matters to a Vote of Security Holders 12
Item 5 Other Information 12
Item 6 Exhibits and Reports on Form 8-K 12
SIGNATURES 12
-2-
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
SKYNET TELEMATICS.COM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2000
ASSETS
CURRENT ASSETS
Cash $ 34,308
Accounts receivable 80,212
Inventory 335,029
Prepaid expenses and other current assets 825,870
----------
TOTAL CURRENT ASSETS 1,275,419
Furniture and equipment 477,540
Software and intellectual property rights 3,935,375
----------
TOTAL ASSETS $5,688,334
==========
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $1,788,236
Capitalized lease obligations 62,595
Note payable 64,081
----------
TOTAL CURRENT LIABILITIES 1,914,912
Loans payable 347,337
----------
TOTAL LIABILITIES 2,262,249
----------
STOCKHOLDERS' EQUITY
Preferred stock - $.001 par value; authorized: 20,000,000 shares;
issued and outstanding: none
Common stock - $.001 par value; authorized: 75,000,000 shares;
issued and outstanding: 27,916,271 shares 27,916
Additional paid-in capital 15,106,973
Deficit (11,795,813)
Accumulated other comprehensive income 87,009
----------
TOTAL STOCKHOLDERS' EQUITY 3,426,085
----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $5,688,334
==========
See notes to consolidated financial statements
-3-
<PAGE>
SKYNET TELEMATICS.COM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
Three months Nine months
Ended September 30, Ended September 30,
------------------- -------------------
2000 1999 2000 1999
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales ($ 86,344) $ 83,506 $ 475,640 $ 147,442
Cost of sales ( 226,447) ( 190,690) ( 1,306,871) ( 419,239)
------------ ----------- ---------- ------------
GROSS LOSS ( 312,791) ( 107,184) ( 831,231) ( 271,797)
Depreciation and amortization ( 466,478) ( 221,307) ( 1,417,339) ( 621,551)
Research and development ( 66,185) ( 53,730) ( 214,990) ( 150,860)
General and administrative expenses ( 663,913) ( 514,642) ( 2,078,328) ( 1 ,461,846)
Interest expense - net ( 8,949) ( 20,465) ( 27,430) ( 73,117)
Settlement of liabilities 0 0 ( 118,241) ( 113,858)
------------ ----------- ---------- ------------
NET LOSS ( 1,518,316) ( 917,328) ( 4,687,549) ( 2,693,029)
Foreign currency translation adjustments 28,150 13,592 1,106 ( 9,684)
------------ ----------- ---------- ------------
TOTAL COMPREHENSIVE LOSS ($1,490,166) ($ 903,736) ($4,686,443) ($ 2,702,713)
============ ============ ========== ===========
Basic net loss per common share ($.05) ($.04) ($.18) ($.12)
==== ==== ==== ====
Weighted average number of common shares 27,363,388 23,834,157 26,152,686 22,985,902
========== =========== ========== ===========
</TABLE>
See notes to consolidated financial statements
-4-
<PAGE>
SKYNET TELEMATICS.COM, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine months,
Ended September 30,
-------------------
2000 1999
---- ----
<S> <C> <C>
OPERATING ACTIVITIES
Net loss ($4,687,549) ($2,693,029)
Adjustments to reconcile net loss to cash
used in operating activities
Depreciation and amortization 1,404,743 621,551
Stock issued for expenses 133,378 356,535
Settlement of liabilities 118,241 113.858
Other 19,885
Changes in assets and liabilities:
Accounts receivable 82,756 ( 71,960)
Inventory ( 63,817) ( 238,489)
Prepaid expenses and other current assets ( 615,725) ( 81,885)
Deferred expenses 47,762
Accounts payable and accrued expenses 610,487 54,516
---------- ----------
NET CASH USED IN OPERATING ACTIVITIES ( 2,949,839) ( 1.938.903)
---------- ----------
INVESTING ACTIVITIES
Proceeds from sale of fixed assets 30,799
Purchases of fixed assets ( 87,111) ( 312,322)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES ( 56,312) ( 312,322)
---------- ----------
FINANCING ACTIVITIES
Proceeds from sales of common stock 3,184,094 2,251.090
Payments of capitalized lease obligations ( 69,952)
Decrease in bank overdraft ( 66,608) ( 14,372)
Payments of note payable ( 8,181) ( 83,891)
Loans from shareholders 132,007
---------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 3,039,353 2,284,834
---------- ----------
EFFECT OF FOREIGN CURRENCY ADJUSTMENTS 1,106 ( 9,684)
---------- ----------
INCREASE IN CASH 34,308 23,925
CASH - beginning of year 0 20
---------- ----------
CASH - end of period $ 34,308 $ 23,945
========== ==========
</TABLE>
See notes to consolidated financial statements
-5-
<PAGE>
SKYNET TELEMATICS.COM, INC. AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. NATURE OF OPERATIONS
Skynet Telematics.com, Inc. and Subsidiaries (Company) develop, market, license
and monitor tracking and anti-theft systems for automobiles and trucks.
In February 2000, the Company changed its name from Skynet Telematics, Inc. to
Skynet Telematics.com, Inc.
2. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by annual financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation of the financial statements have been included.
These unaudited consolidated financial statements should be read in conjunction
with the audited consolidated financial statements and footnotes thereto,
included in Form 10-KSB of Skynet Telematics.com Inc., as of and for the year
ended December 31, 1999, as filed with the Securities and Exchange Commission.
The results of operations for the three and nine months ended September 30, 2000
are not necessarily indicative of the results to be expected for the full year.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
3. NET LOSS PER SHARE
Basic net loss per share was computed based upon the weighted average number of
common shares outstanding during the year. Dilutive net loss per common share
has not been presented because it was anti-dilutive.
4. COMMON STOCK
On July 14, 2000, the Company issued 40,000 shares of common stock to
directors for an aggregate value of $40,000.
5. SKAMP International Limited
On September 8, 2000, Skamp International Limited: (1) authorized a
10,000 for 1 stock split, which increased their authorized shares from 1,000
shares to 10,000,000 shares and decreased their par value from $1.46 to
$.000146; (2) authorized an additional 20,000,000 shares of common stock;
(3) issued 1,700,000 shares to directors; and (4) authorized a private placement
of up to 4,000,000 shares of common stock at $.09, per share, through
October 27, 2000. For each share sold by October 16, 2000, Skamp will also issue
one warrant exercisable to purchase one share of Skamp common stock at
$.09 through October 27, 2002. The private placement has been extended
indefinitely. Through November 14, 2000, 575,000 shares of Skamp common stock
have been sold for an aggregate of $50,370.
-6-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OVERVIEW
The business of the Company and its subsidiaries is the development, marketing,
and distribution of integrated modular automotive telematic systems and
providing of monitoring services to users of those products. Through its
subsidiary, Skynet Telematics, Ltd., the Company distributes its own proprietary
products and products developed and manufactured by third parties, generally
ComROAD AG (ComROAD), in a number of countries around the world. Skynet entered
into a written distribution agreement with ComROAD in March 1999. Skynet
develops its own software and hardware solutions to provide for customer
specific requirements. These development projects are either patented or are
registered as intellectual properties and add significant value to the project.
Automotive telematic systems combine the technology for mobile phones (GSM),
global positioning satellite systems (GPS) and the Internet, to enable customers
to identify the exact location and status information about automotive vehicles
and to receive a variety of information through communication with the Company's
monitoring station. These devices can be used by businesses to assist in the
management of their respective fleets of vehicles of various kinds and by
individuals for use in their automobiles for security purposes, emergencies and
to access information available from the Company's monitoring station. These
devices are available with in-car vehicle computers operating with the Windows
CE(R) operating system that provide the user with an array of usage options
typically available on a personal digital assistant (PDA), including Internet
connections and e-mail capabilities.
Through the second quarter of 2000, the Company has entered into a number of
strategic alliances and joint ventures and is currently negotiating further
joint ventures and strategic alliances. The Company's strategic alliance with
Casio announced on May 3, 2000 resulted in the development of the DT-800 Unit
which is designed to further increase Casio and Skynet's sales in the UK and
European express delivery and freight industry.
Casio and Skynet have developed a cost-effective solution for proof-of-delivery
(POD) applications for express parcel delivery companies using the DT-800. The
DT-800 confirms delivery by the customer's electronic signature and scanning of
a bar code. This vital tracking reference data is sent immediately from the
truck, together with an automatic time and date stamp through Skynet's "Skamp"
telematics product, via a low cost SMS (short message service) to the customers'
accounting department. In the event of any query, the customer can ascertain who
signed to accept delivery via an Internet website. This solution can also
re-route the driver, select the most cost-effective route and alert the
authorities to any stolen vehicle movements.
The third quarter was a period of consolidation and some senior staff and
director changes. Telematics is a new industry and as such technical development
and change go hand in hand as the market tries to find the most marketable, most
profitable ground. Our marketing and sales efforts over the last six months have
been geared towards establishing the "market." However, management believes that
the "market" is fragmented country by country and market sector by market
sector. The Company further believes that in early days of telematics, vehicle
security and hands free communication were seen to be the way forward and the
first generation of end-users bought the product on this basis. However, with
more players entering the market and strong marketing by General Motors, the
Company believes that General Motors' "On Star" product is leading the market
toward real time service, with fast emergency response as the major service that
encourages buyers. The Company anticipates profit potential from down loading
videos, DVD's, CDs and games as bandwidth potential expands, with additional
profit potential for marketing/advertising being triggered by invisible
geo-fences. Although tailored telematic solutions will have their place in fleet
management, the Company believes that clear and easily understandable reports
are still essential in selling the Company's concept to cost conscious fleet
managers.
During the Company's second quarter and continuing into the third quarter of
2000, Skynet has concentrated on further development of its service
capabilities, bringing up to date its monitoring station technologies and speed
of response. The Skamp range of telematic products provides easy to fit,
comprehensive, tailored telematic systems, incorporating Skynet's cutting edge
tilt and motion sensors. Skynet's telematic solutions are available in Europe at
less than US$500. Despite this relatively low cost, significant sales revenues
have yet to materialize. Skynet, having recognized that its sales side is weak,
has taken action to replace senior personnel to allow the speedy refocusing of
the sales side of the business. This will be accompanied by telesales and
aggressive marketing.
-7-
<PAGE>
RESULTS OF OPERATIONS
CONSOLIDATED RESULT OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended September 30,
--------------------------------
2000 1999 CHANGE %
---- ---- ------- -
<S> <C> <C> <C> <C>
NET SALES ($86,344) $83,506 ($169,850) (203%)
COST OF SALES (226,447) (190,690) (35,757) 19%
GROSS LOSS (312,791) (107,184) (205,607) 192%
DEPRECIATION AND AMORTIZATION (466,478) (221,307) (245,171) 111%
RESEARCH AND DEVELOPMENT (66,185) (53,730) (12,455) 23%
GENERAL AND ADMINISTRATIVE (663,913) (514,642) (149,271) 29%
INTEREST EXPENSE-NET (8,949) (20,465) 11,516 (56%)
NET LOSS (1,518,316) (917,328) (600,988) 66%
<CAPTION>
Nine Months Ended September 30,
-------------------------------
2000 1999 CHANGE %
---- ---- ------ -
<S> <C> <C> <C> <C>
NET SALES $475,640 $147,442 $328,198 223%
COST OF SALES (1,306,871) (419,239) (887,632) 212%
GROSS LOSS (831,231) (271,797) (559,434) 206%
DEPRECIATION AND AMORTIZATION (1,417,329) (621,551) (795,778) 128%
RESEARCH AND DEVELOPMENT (214,990) (150,860) (64,130) 43%
GENERAL AND ADMINISTRATIVE (2,078,328) (1,461,846) (616,482) 42%
INTEREST EXPENSE-NET (27,430) ( 73,117) 45,687 (62%)
SETTLEMENT OF LIABILITIES (118,241) ( 113,858) (4,383) 4%
NET LOSS (4,687,549) (2,693,029) (1,994,520) 74%
</TABLE>
The above tables represent an analysis of the increases and decreases of the
components of consolidated results of operations as derived from the Company's
consolidated statement of operations for the three and nine months ended
September 30, 2000 and 1999. In general, 2000 is not comparable to 1999 because
the Company has been in an early growth stage of organizing and acquiring
subsidiaries and joint ventures. Only recently has the Company begun a greater
effort to market the Company's products.
-8-
<PAGE>
Net Sales
As mentioned above, sales during the third quarter were disappointing, exclusive
of the sale of 400 units to Euro Trade AS in the second quarter which were
cancelled in September 2000 when Euro Trade's customer requirements changed.
This has led to a negative sales figure for the third quarter.
Joint Ventures and Strategic Alliances
Joint venture arrangements between Risk Consultants Lebanon SARL, Gestion
Development & Financement S.A. Lancry Protection Securites S.A, Skamp
International Ltd. and Forefront International (HK) Ltd., will cover 42
countries and are expected to increase sales in the fourth quarter of the year
2000. Negotiations for joint ventures in India, Pakistan and Malaysia are
expected to be concluded and announced during the fourth quarter of 2000.
Lancry Protection Securites S.A. and the Company (Joint Venture and exclusive
head franchise for France, Spain and Russia, announced May 22, 2000), together
with our other joint venture partners, intend to create a corridor of safety
between the French coastline and Central Russia, enabling vehicles to be
monitored and tracked through the "corridor of safety" in the knowledge that if
there is a problem, or an attack on the vehicle, accident or other emergency,
the nearest Skamp monitoring station will immediately alert the correct
emergency, police or private security services and direct them to the vehicle.
Communication with these emergency services will be in the language of the
region/country, so that there is no confusion or misunderstanding. "Intervention
Team" will be positioned at strategic points along the corridor to provide
immediate response. This unique service is expected to dramatically reduce
hi-jack incidents leading to significant insurance discounts.
The anticipated Joint Venture and exclusive head franchise agreement for China,
Hong Kong, Taiwan and Thailand with Forefront International (HK) Ltd. is
Skynet's route to market in the potentially highly profitable Asian market. The
fitting of SKAMP Pro-active units in July 2000 in Beijing, China and Hong Kong
to Scania vehicles is expected to lead to substantial orders with the Joint
Venture company setting up a Monitoring Service Center in Beijing, China and
Hong Kong.
The Skamp Telematics service is expected to reduce hi-jack incidents, improve
driver productivity and reassure the driver and employer that vehicle and driver
are never alone. Skamp multilingual, monitoring, security, telematics, routing
and concierge services are available 24 hours a day 365 days a year. This
service is expected to result in substantial reductions in insurance premiums.
Forefront International (HK) Ltd. (a private Company), is the sole distributor
of Scania vehicles (Buses and Trucks) in China, Hong Kong, Taiwan and Thailand.
Over 12,000 units of Scania trucks and buses have been sold in these areas by
Forefront. Average annual sales exceed 1,000 units. As China has now become a
member of the World Trade Organization (WTO), Forefront believes demand for
Scania vehicles will increase dramatically.
-9-
<PAGE>
Best in Class
The Institute of Transport Management has awarded the Skamp range of products
its "In-vehicle communications, Security and Tracking Company 2000"
accreditation, making Skynet one of their "Best in Class" organizations for the
year 2000. The Institute of Transport management was formed in 1977 to highlight
and promote the fleet management profession through research into all aspects of
fleet management.
The Institute of Transport Management issued the following statement:
"Following a rigorous research and selection process conducted over the past 12
months, the Awards Committee at the Institute of Transport Management has
decided to accredit Skamp with its "In-Vehicle communications, security and
tracking company 2000" accreditation in recognition of its exemplary role as a
major player in the provision of state of the art integrated, modular automotive
Telematics equipment".
Connections
Telematics and GSM companies are currently valued by the number of "connections"
they have on an annual basis. Large airtime providers such as Vodaphone, Orange,
etc., are particularly interested in acquiring companies with 100,000+
connections. Each rental car connection by Skynet is based on a 3 year contract
and is both a GSM connection and an Internet connection to a dedicated Internet
service provider.
Cost of Sales
Although cost of sales has increased in 2000, the gross profit percentage is not
indicative of what it will be at higher sales levels. Purchases and salaries are
the largest components of cost of sales.
Depreciation and Amortization
Depreciation and amortization has increased in 2000 primarily due to the
Company's change in the estimated future lives of the software and intellectual
properties from ten to five years and the acquisition of additional fixed
assets.
Research and Development
Research and development has increased and will increase substantially as
cutting edge technological solutions are designed to meet specific customer
requirements. Telematics systems require software and hardware development to
ensure full customer utilization and demand. In the same way that computers will
not function without software, Telematics requires software, hardware, sensors,
looms and monitoring service center development. The Company is seeking
additional financing to further such development.
General and Administrative Expenses
General and administrative expenses increased substantially in 2000 due to the
growth of the Company, its increased marketing effort and substantial additional
costs incurred in reaching the "Avis Solution". The Company has a program to
keep general and administrative expenses as low as possible. Salaries,
professional fees and marketing are the most significant components of general
and administrative.
Interest Expense
Interest expense decreased in 2000 as the notes payable have been reduced.
-10-
<PAGE>
Settlements of Liabilities
Settlements of liabilities in 2000 include continued settlements with certain of
the sellers of SSCC.
Net Loss
Consolidated net loss has increased due to the nature of the Company's plan of
operations rather than declining profitability.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
During the nine months ended September 30, 2000, the Company raised $3,184,094,
net of expenses, as compared to $2,364,948, for the nine months ended September
30, 1999, from private sales of shares of its common stock. The Company does not
have any significant capital commitments; however, it is committed to maintain
the infrastructure it has developed, the expenses of which consist primarily of
wages and salaries of Skynet personnel. For the nine months ended September 30,
2000, the Company's operating activities used cash of $2,949,839 as compared to
$2,052,761 in 1999.
As of September 30, 2000, working capital increased by $162,718 to ($639,493),
from ($802,211), as of December 31, 1999.
The Company believes it has built an infrastructure sufficient to support a
substantial increase in the size of the operations of the Company and its
subsidiaries over the next few years and intends to focus its efforts on revenue
growth. Skynet intends to substantially increase its marketing and distribution
efforts over the next year, and will focus its marketing efforts primarily on
the distribution of the ComROAD Skamp range of products. Such activities will
require additional funds either in the form of additional capital or financing
to permit Skynet to purchase the products from ComROAD that it in turn sells to
others. There can be no assurance that the Company and its subsidiaries will be
able to obtain the financing they need to implement their growth strategy.
At the present time, the Company's consolidated revenues cannot support the
expenses of the operations of the Company and its subsidiaries. The Company
intends to raise additional capital to fund such operations until its
consolidated revenues are sufficient to support all of the costs and expenses of
its operations. The Company will remain dependent upon infusions of capital from
investors and/or loans from its stockholders until such time. There can be no
assurance that the Company can continue to raise capital from the sale of its
securities.
Seasonality
The Company does not deem its sales to be seasonal and any effect would be
immaterial.
American Markets
"Americans collectively spend 700 million hours a week going somewhere in a car"
(Fortune Magazine, October 9, 2000)
". . . The National Highway Traffic and Safety Administration data indicate that
(in the USA) although 24% of (vehicle) crashes occur on rural roads, 59% of
crash deaths occur on rural roads". (Telematics Industry Report, Raymond James &
Associates, Inc.). Therefore, fast emergency and position information through
telematics will save lives.
Given the importance of the above quotations and the huge potential for
telematics in the American markets, Skynet is actively pursuing opportunities
in both North and South America to market telematic products.
FORWARD LOOKING INFORMATION
This Form 10-QSB contains forward looking statements regarding the Company's
business strategy and future plans of operation. Forward looking statements
involve known and unknown risks and uncertainties. These and other important
factors, including those mentioned in various filings with the Securities and
Exchange Commission made periodically by the Company and in various press
releases of the Company, may cause the actual results and performance to differ
materially from the future results expressed in or implied by such forward
looking statements. The forward looking statements contained herein are only as
of the date hereof and the Company disclaims any obligation to provide public
updates, revisions or amendments to any forward looking statements made herein
to reflect changes in the Company's expectations or future events.
-11-
<PAGE>
PART II
Other Information
Item 1. Legal proceedings:
None
Item 2. Changes in Securities:
During the third quarter of 2000, the Company sold 485,544 shares of common
stock at prices between $0.50 and $4.50, per share, for aggregate proceeds of
$323,746. These shares were sold to a total of 59 non U.S. persons, pursuant to
Regulation S under the Securities Act of 1933.
During the third quarter of 2000, the Company sold 40,000 shares of common stock
to directors for aggregate of $40,000. These shares were sold pursuant to the
exemption from registration requirements under the Securities Act of 1933,
pursuant to Section 4(2) thereof.
There were no underwriters for any of the above offerings.
Item 3. Defaults Upon Senior Securities:
None
Item 4. Submission of Matters to a Vote of Security Holders:
None
Item 5. Other Information:
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: Exhibit 15 - Letter on unaudited financial information
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K:
None
SIGNATURES
In accordance with the requirements of the Securities and Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Skynet Telematics.com, Inc.
Dated: November 20, 2000 By: /s/ Tomas George Wilmot
---------------------------
Tomas George Wilmot, President
(Principal Executive Officer)
Dated: November 20, 2000 By: /s/ Mark Dingley
---------------------------
Mark Dingley, Finance Director
(Principal Financial
and Accounting Officer)
-12-
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
We have reviewed the accompanying consolidated financial statements of Skynet
Telematics.com, Inc. and Subsidiaries as of September 30, 2000 and for the three
months and nine months then ended. These financial statements are the
responsibility of the company's management.
Another accountant reviewed the interim consolidated financial information of
Netking Limited and Subsidiary and Skamp International Limited, subsidiaries of
the Company, whose combined total assets as of September 30, 2000 and whose
revenues for the nine months then ended which constituted substantially all of
the consolidated totals.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review and the report of the other accountant, we are not aware of
any material modifications that should be made to the accompanying consolidated
financial statements for them to be in conformity with generally accepted
accounting principles.
November 17, 2000
By: /s/ Most Horowitz & Company, LLP
Most Horowitz & Company, LLP
-13-
