SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
[X] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1998
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[ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ___________ to ___________
Commission file number 0-25276
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QUIKBIZ INTERNET GROUP, INC.
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Exact name of small business issuer as specified in its charter
Nevada 88-0320364
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(State or other jurisdiction I.R.S. Employer Identification No.
of incorporation)
5310 NW 33rd Drive, Suite 212, Ft. Lauderdale, FL 33309
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(Address of principal executive offices and Zip code)
(954) 739-7005
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(Issuer's telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) 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.
[x] Yes [ ] No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by Court. Yes___ No ___
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date: July 31, 1998: 13,935,240
shares of common stock
Transitional Small Business Disclosure Format (check one): Yes __ No x
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<PAGE>
INDEX
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Page
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Part I
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Condensed Balance Sheets 3
Statement of Operations 4
Statement of Cash Flows 5
Management's Discussion and Analysis or Plan of Operations 6
Part II
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Item 1. Legal Proceedings 7
Item 2. Changes in Securities 7
Item 3. Defaults Upon Senior Securities 7
Item 4. Submission of Matters to a Vote of Security Holders 7
Item 5. Other Information 7
Item 6. Exhibits and Reports on Form 8-K 7
Signatures 9
<PAGE>
QuikBIZ Internet Group, Inc.
Condensed Balance Sheets
<TABLE>
<CAPTION>
Current Year Prior Yr
June 30,1998 Dec. 31, 1997
Current Assets
<S> <C> <C>
Cash 51,367 40,498
A/R 204,178 92,018
Other Receivables 151,167 151,167
Total Current Assets 406,712 283,683
Fixed Assets
Net Property & Equipment 14,291 12,291
Copyright 32,236 32,236
Accum Amort (6,447) (6,447)
Total Fixed Assets 40,080 38,080
Other Assets
Org Cost 62,811 52,668
Accum Amort (31,602) (31,602)
Security 5,761 5,761
Goodwill 218,326 218,326
Franchise Rights 225,000 225,000
Other Investments 21,595 21,595
Total Other Assets 501,891 491,748
Total Assets 948,683 813,511
Liabilities
A/P 309,949 246,074
Notes Payable 225,000 225,000
Accrued Expenses 32,699 34,261
Notes Payable 50,000
Notes Payable-off 12,143
Line Credit 99,713 95,082
Total Liabilities 729,504 600,417
Shareholders' Equity
Preferred Stock 17,248 17,248
Common Stock 21,533 21,533
Additional Paid In Capital 1,706,549 1,706,549
Retained Earnings (1,526,151) (1,532,236)
Total Equity 219,179 213,094
Total Liabilities & Equity 948,683 813,511
</TABLE>
See Accountants Compilation Report
3
<PAGE>
<TABLE>
<CAPTION>
QuikBIZ Internet Group, Inc.
Statement of Operations
3 Months Ended 6 Months Ended
30-Jun 30-Jun
(Unaudited) (Unaudited)
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C>
Revenues 427,439 - 708,135 -
CofGS 254,253 - 430,871 -
Gross Profit 173,186 - 277,264 -
Operating Expenses
General & Administrative 174,207 28,449 265,767 56,952
Interest 4,130 - 5,411 -
Total Operating Expenses 178,337 28,449 271,178 56,952
Net Profit/(Loss) (5,151) (28,449) 6,088 (56,952)
</TABLE>
See Accountants' Compilation Report
4
<PAGE>
QuikBIZ Internet Group, Inc.
Statement of Cash Flows
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
30-Jun 30-Jun
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Cash Flows From Operations (5,151) (28,449) 10,074 (56,952)
(Increase)Decrease in Accounts Receivable (71,018) - (112,160) -
(Increase)Decrease inOther Assets (10,143) - (10,143) -
Increase(Decrease)in Accounts Payable 55,622 - 44,385 -
Increase(Decrease) in Accrued Liab. (1,562) - (1,562) -
Total Adjustments (27,101) - (79,480) -
Cash Flows From Investing Activities:
Purchase of Property and Equipment (2,365) - (2,000) -
Increase(Decrease) Other Liabilities 12,143 - 12,143 -
Net Cash Provided By Investing Activties 9,778 - 10,143 -
Cash Flows From Financing Activities:
Receipt of Proceeds from Stock Sales 9,888 46,500 16,600 46,500
Net Borrowing on Line of Credit 63,503 - 54,632
Net Cash Provided by Financing Activities 73,391 46,500 71,232 46,500
Net Increase(Decrease) in Cash 50,917 18,051 11,969 (10,452)
Cash at Beginning 450 3,576 40,498 32,079
Cash at the End 51,367 21,627 52,467 21,627
</TABLE>
See Accountants' Compilation Report
5
<PAGE>
Item 2. Management Discussion and Analysis or Plan of Operations
Results of Operations
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During the three month and six month period ended June 30, 1998 the
Company had revenues of $427,439 and $708,135 respectively as against no
revenues during the three month and six month period ended June 30, 1997. The
Company's gross profit was 40.5% and 39.1% of revenue for the three and six
month periods ended June 30, 1998. This was due to the operations of the
Company's subsidiary, ADS Advertising Corp. ("The Smith Agency"), which was
acquired in November 1997. During the three month and six month period ended
June 30, 1998 the Company had general and administrative expenses of $174,207
and $265,767 respectively as against $28,449 and $56,952 during the three month
and six month period ended June 30, 1997. This was predominately due to the
operations of The Smith Agency. That as a result the Company had a net loss of
$5,151 for the three month period ended June 30, and a net profit of $6,088 for
the six month period ended June 30, 1998, as against a loss of $28,449 and a
loss of $56,952 respectively for the three month and six month period ended June
30, 1997.
Liquidity and Capital Resources
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The Company had cash on hand of $51,367 and accounts receiveable,
attributable to The Smith Agency, of $204,178 at the end of the six month period
ended June 30, 1998 an increase of $112,160 or 122%, $71,018 or 77% of such
increase occured during the three month period ended June 30, 1998. The Company
at the end of the six month period ended June 30, 1998 had accounts payable of
$309,949 an increase of $55,522 during the six month period and notes payable of
$12,143 for expenses paid by the officers of the Company's subsidiary Capital
Network of America, Corp. for the subsidiary.
The Company believes that it will be able to meet its obligations
through the cash flow of its subsidiaries including QuikLab Multimedia Centers
which it acquired in July 1998. In the event it cannot meet its through this
avenue it will seek to raise capital, though there is no assurance that the
Company will be successful in obtaining capital. In regard to the Company's
subsidiaries, it is expected that The Smith Agency will be able to meet its
obligations from its revenue; and that the officers of Capital Network of
America Corp., pursuant to agreement, will provide for the expenses of that
subsidiary for the first year or until it has sufficient revenue. It is
anticipated, though there is no assurance, that the recent acquisition of
QuikLab Multimedia Centers in July 1998 will further enhance the Company's sales
and profitability for the second half of 1998. The Company will continue to seek
out additional opportunities through acquisitions and mergers.
6
<PAGE>
Part II
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
(c) 1. The Registrant sold the following non-registered shares of its
common stock in a private placement pursuant to Rule 506 of Regulation D and
Sec. 4(2) of the Securities Act of 1933, as amended (the "Act") at a price of
$.10 per share:
April 3, 1998 - 20,000 shares, $2,000.00;
2. June 1, 1998, 100,000 shares of common stock for $5,000.00 ($.05 per
share) pursuant to Sec. 4(2) of the Act.
3. In April 1998 the Registrant issued a total of 1,525,000 shares of
its common stock pursuant to 4(2) of the Act in accordance with employment
agreements of its subsidiary Capital Network of America, Corp.
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
On May 20, 1998, the change of name of the Registrant to QuikBIZ
Internet Group, Inc., was approved by consent of a majority of the shareholders
entitled to vote thereon.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
A. Exhibit 2.1 - Agreement and Plan of Meger Between DigiMedia USA,
Inc. and Nitros Franchise Corporation, dated May 14, 1997, incorporated by
reference to the Registrant's 10-QSB for the period ended June 30, 1997.
Exhibit 2.2 - Acquisition Agreement Between Algorhythm
Technologies Corporation and ADS Advertising Corporation, dated October 30,
1997, incorporated by reference to the Registrant's 10-QSB for the period ended
September 20, 1997.
Exhibit 2.3 - Acquisition Agreement between the Registrant and
QuikLab Multimedia Centers, Inc., dated June 25, 1998, incorporated by reference
to the Registrant's 8-K dated July 23, 1998.
7
<PAGE>
Exhibit 3.1 - Registrant's Articles of Incorporation as amended,
incorporated by reference to the Registrant's 10-QSB for the period ended March
31, 1998 and 10-KSB for the period ended December 31, 1997.
Exhibit 3.2 - Registrant's Bylaws, incorporated by reference
to the Registrant's 10-QSB for the period ended March 31, 1998.
Exhibit 10.1 - Employment agreement between ADS Advertising
Corporation and Andrew Smith, dated October 30, 1997, incorporated by reference
to the Registrant's 10-QSB for the period ended September 30, 1997.
Exhibit 10.2 - Employment agreement between Capital Network of
America, Corp. and Kirk J. Girrbach, dated April 13, 1998, incorporated by
reference to the Registrants's 10-QSB for the period ended March 31, 1998.
Exhibit 10.3 - Employment agreement between Capital Network of
America, Corp. and Douglas A. Stepelton, dated April 13, 1998, incorporated by
reference to the Registrants's 10-QSB for the period ended March 31, 1998.
Exhibit 10.4 - Employment agreement between Capital Network of
America, Corp. and Anthony J. Ard, dated April 13, 1998, incorporated by
reference to the Registrants's 10-QSB for the period ended March 31, 1998.
Exhibit 10.5 - Amended employment agreement between Capital
Network of America, Corp. and Kirk J. Girrbach, dated July 6, 1998, incorporated
by reference to the Registrant's 10-QSB for the period ended June 30, 1998.
Exhibit 10.6 - Addendum to Employment Contract for Kirk J.
Girrbach, Douglas A. Stepelton and Anthony J. Ard dated July 7, 1998,
incorporated by reference to the Registrant's 10-QSB for the period ended June
30, 1998..
B. During the period ended June 30, 1998, the Registrant filed the
following 8Ks:
8K dated June 11, 1998: reporting the change in independent accountants
by the resignation of M.A. Cabrera & Co. PA.
8K dated June 24, 1998, reporting the change of independent accountants
by the retaining of Want & Ender CPA.
8
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
QUIKBIZ INTERNET GROUP, INC.
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Registrant
Date: December 8, 1998 s/ANDREW SMITH
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ANDREW SMITH, President
Date: December 8, 1998 s/KIRK J. GIRRBACH
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KIRK J. GIRRBACH, Treasurer
9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1998
<CASH> 51,367
<SECURITIES> 0
<RECEIVABLES> 204,178
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 151,167
<PP&E> 46,227
<DEPRECIATION> (6,447)
<TOTAL-ASSETS> 948,683
<CURRENT-LIABILITIES> 309,949
<BONDS> 0
0
17,248
<COMMON> 21,533
<OTHER-SE> 1,706,549
<TOTAL-LIABILITY-AND-EQUITY> 948,683
<SALES> 427,439
<TOTAL-REVENUES> 0
<CGS> 254,253
<TOTAL-COSTS> 178,337
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (5,151)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
