-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, F+ZtZJs23vZbHQee4c7IEkjz0IuJNGSCmo2a84iVJQRX3zt4TsXTsAHkiw2EgM+I DsFykxIpXOEeVtRuKXTiNw== 0001078782-03-000196.txt : 20030911 0001078782-03-000196.hdr.sgml : 20030911 20030911151013 ACCESSION NUMBER: 0001078782-03-000196 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030911 FILER: COMPANY DATA: COMPANY CONFORMED NAME: US WIRELESS ONLINE INC CENTRAL INDEX KEY: 0001135264 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-GROCERIES & RELATED PRODUCTS [5140] IRS NUMBER: 820404220 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB/A SEC ACT: 1934 Act SEC FILE NUMBER: 333-61424 FILM NUMBER: 03891857 BUSINESS ADDRESS: STREET 1: 745 WEST MAIN STREET STREET 2: SUITE 100 CITY: LOUISVILLE STATE: KY ZIP: 40202 BUSINESS PHONE: 5022133700 MAIL ADDRESS: STREET 1: 745 WEST MAIN STREET STREET 2: SUITE 100 CITY: LOUISVILLE STATE: KY ZIP: 40202 FORMER COMPANY: FORMER CONFORMED NAME: CACH FOODS INC DATE OF NAME CHANGE: 20010220 10QSB/A 1 uswire603qsba.htm AMENDED JUNE 30, 2003 10-QSB U

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549


FORM 10-QSB/A


     [ X ]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


     For the quarterly period ended June 30, 2003


     [   ]     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. 333-61424


US WIRELESS ONLINE, INC.

 (Exact name of small business issuer as specified in its charter)


Nevada

(State or other jurisdiction of incorporation or organization)

82-0505220

 (IRS Employer Identification No.)

745 West Main Street, Suite 100

Louisville, Kentucky 40202

 (Address of principal executive offices)


(502) 213-3700

(Issuer’s telephone number)


CACH FOODS, INC.

5555 North Star Ridge Way  Star, ID  83669

 (Former name, address and fiscal year, if changed since last report)


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 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 [   ]


APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:


Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Exchange Act subsequent to the distribution of securities under a plan confirmed by a 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 June 30, 2003: 15,485,806 shares of common stock, par value $0.001


Transitional Small Business Format:  Yes [   ]  No [ X ]



#




FORM 10-QSB

US WIRELESS ONLINE, INC.

(A Development Stage Company)

 

INDEX


  

Page

PART I.

Financial Information


   Item 1.













   Item 2.



   Item 3.

Unaudited Condensed Financial Statements


Unaudited Condensed Balance Sheets, June 30, 2003 and December 31, 2002


Unaudited Condensed Statements of Operations, for the three and six months ended June 30, 2003 and 2002


Unaudited Condensed Statements of Cash Flows, for the six months ended June 30, 2003 and 2002


Notes to Unaudited Condensed Financial Statements


Management’s Discussion and Analysis of Financial Condition or Plan of Operation


Controls and Procedures

3



4-5



6



7-8


9



11


13


PART II.


   Item 2.


   Item 5.


   Item 5.


   Item 6.


Other Information


Changes in Securities and Use of Proceeds


Related Party Transactions


Subsequent Event, Legal Proceeding


Exhibits and Reports on Form 8-K




13


13


14


14



Signatures


15


(Inapplicable items have been omitted)



#




PART I.


Financial Information


Item 1.  Unaudited Condensed Financial Statements

 

In the opinion of management, the accompanying unaudited financial statements included in this Form 10-QSB reflect all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for the periods presented.  The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year.





#



US WIRELESS ONLINE, INC.


UNAUDITED CONDENSED BALANCE SHEETS



ASSETS


       

June 30,

 

December 31,

       

2003

 

2002

       

(Unaudited)

  

Current Assets

        

  Cash

      

 $               -   

 

 $          3,961

  Accounts Receivables(Net of Allowance of $4,784)

 

        78,776

 

           80,858

  Prepaid Expenses

    

        15,443

 

           27,273

          

    Total Current Assets

    

        94,218

 

         112,092

          

Property & Equipment (Net)

    

      602,585

 

         694,966

          

Other Assets

        

    Client Base (Net)

    

      150,000

 

         180,000

    Deposits

     

          2,439

 

                269

          

    Total Other Assets

    

     152,439

 

         180,269

          

    Total Assets

     

 $   849,242

 

 $      987,327




The accompanying notes are an integral part of these financial statements.




US WIRELESS ONLINE, INC.


UNAUDITED CONDENSED BALANCE SHEETS (CONTINUED)


LIABILITIES AND STOCKHOLDERS’ EQUITY




       

June 30,

 

December 31,

       

2003

 

2002

 

Current Liabilities

    

(Unaudited)

  
          
 

  Cash Overdraft

    

 $            54,804

 

 $                  -

 

  Accounts Payable

   

             716,592

 

          726,127

 

  Accrued Expenses

   

               81,899

 

            42,208

 

  Deffered Revenue

   

                      -   

 

            17,394

 

  Current Portion of Long term debt

  

             740,649

 

          490,649

          
 

    Total Current Liabilities

   

          1,593,945

 

       1,276,378

          
 

Long-Term Debt

       
 

  Convertible Debentures

   

             316,844

 

          316,844

 

  Notes Payable

    

             980,417

 

          514,438

 

  Note Payable - related party

   

               76,635

 

            76,635

 

  Lease Obligation

    

               30,992

 

            72,620

 

  Current Portion of Long Term Debt

  

           (740,649)

 

        (490,649)

          
 

    Total Long Term Debt

   

             664,239

 

          489,888

          
 

    Total Liabilities

    

          2,258,184

 

       1,766,266

          
 

Stockholders' Equity

      
 

  Common Stock, Authorized 100,000,000

  Shares, $.001 Par Value,

    
 

    Issued and Outstanding 15,485,806 shares

 

               15,486

 

            49,482

 

  Additional Paid in Capital

   

          3,315,071

 

       3,281,075

 

  Subscription Receivable

   

           (198,500)

 

        (210,500)

 

  Retained Earnings (Deficit)

   

        (4,540,999)

 

     (3,898,995)

          
 

Total Stockholders' Equity

   

        (1,408,942)

 

        (778,938)

          
 

    Total Liabilities and Stockholders' Equity

 

 $          849,242

 

 $       987,327


The accompanying notes are an integral part of these financial statements



US WIRELESS ONLINE, INC.


UNAUDITED STATEMENT OF OPERATIONS


    

     For the three months ended

     For the six months ended

    

                   June 30,

 

                   June 30,

    

2003

 

2002

 

2003

 

2002

           
           

Revenues

  

       428,550

 

       477,356

 

        840,532

 

     1,003,729

           

Cost of Sales

  

       229,565

 

       291,634

 

        444,747

 

        523,816

           

Gross Profit (Loss)

 

       198,985

 

       185,722

 

        395,785

 

        479,913

           

Operating Expenses

        

  General & Administrative

 

       464,010

 

       350,253

 

        761,797

 

        889,260

           

    Total Operating Expenses

 

       464,010

 

       350,253

 

        761,797

 

        889,260

           

Net Operating Income (Loss)

     (265,025)

 

     (164,531)

 

      (366,012)

 

      (409,347)

           

Other Income(Expense)

        

  Interest Income

  

                 -   

 

                 -   

 

                    -   

 

                   -   

  Acquisition Expense

 

     (250,000)

 

                 -   

 

      (250,000)

 

                   -   

  Interest Expense

  

       (13,738)

 

       (41,293)

 

        (25,991)

 

        (44,149)

           

    Total Other Income(Expense)

     (263,738)

 

       (41,293)

 

      (275,991)

 

        (44,149)

           

Net Income (Loss)

  

 $  (528,763)

 

 $  (205,824)

 

 $   (642,003)

 

 $   (453,496)

           

Net Income (Loss) Per Share

 $        (0.03)

 

 $        (0.01)

 

 $         (0.04)

 

 $         (0.03)

           

Weighted Average Shares Outstanding

  15,485,806

 

   15,151,827

 

   15,485,806

 

   15,151,827





The accompanying notes are an integral part of these financial statements



US WIRELESS ONLINE, INC.


UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS


     

            For the six months ended

     

June 30,

        
     

2003

 

2002

        
        

CASH FLOWS FROM OPERATING ACTIVITIES:

   
        

  Net Income (Loss)

   

 $      (642,003)

 

 $    (453,496)

  Adjustments to Reconcile Net Loss to Net Cash

   

    Provided by Operations:

     

     Depreciation & Amortization

  

          139,823

 

                   -

     Shares issued for Services

  

            24,282

 

                   -

     Shares issued for subscription Receivable

 

                     -

 

          85,000

     Bad Debt Expense

   

              2,112

 

         (24,203)

  Change in Assets and Liabilities

    

                   -

     Increase (Decrease) in  Cash Overdraft

 

            54,804

 

                   -

     (Increase) Decrease in Accounts Receivable

              3,792

 

        (29,276)

     (Increase) Decrease in Deferred Revenue

 

           (17,394)

 

            1,108

     Increase (Decrease) in Deposits and Prepaids

              9,661

 

         (78,804)

     Increase (Decrease) in Accounts Payable/ Accrued Expenses

            30,156

 

        100,104

        

  Net Cash Provided(Used) by Operating Activities

         (394,767)

 

       (399,569)

        
        

CASH FLOWS FROM INVESTING ACTIVITIES:

   
        

  Proceeds from Sale Property and Equipment

 

                     -

 

                   -

  Purchases of Property and Equipment

 

           (17,443)

 

        (85,578)

        

  Net Cash Provided (Used) by Investing Activities

           (17,443)

 

        (85,578)

        
        

CASH FLOWS FROM FINANCING ACTIVITIES:

   
        

  Procceds from Line of Credit

  

                     -

 

          50,000

  Payment on Long Term Debt

  

         (103,751)

 

                    -

  Proceeds from Debt Financing

  

          500,000

 

         (47,664)

  Proceeds from Stock issuance

  

            12,000

 

        206,136

        
        

  Net Cash Provided(Used) by Financing Activities

          408,249

 

          208,472




US WIRELESS ONLINE, INC.


UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS

(CONTINUED)


     

            For the six months ended

     

 

June 30,

 

        
     

2003

 

2002

        
        

NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS

             (3,961)

 

       (276,675)

        

CASH AND EQUIVALENTS AT BEGINNING OF PERIOD

              3,961

 

         253,447

        

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 $                 0

 

 $     (23,228)

        

Cash Paid For:

      

  Interest

    

 $                  -

 

 $                -

  Income Taxes

   

 $                  -

 

 $                -

        

Non-Cash Activities:

      
        

Shares issued for Services

  

 $          24,282

 

 $                 -   

Options issued for Services

  

                      -   

 

                    -   

Cancellation of shares for consulting fees

 

                      -   

 

                    -   








The accompanying notes are an integral part of these financial statements








U.S. Wireless Online, Inc.


Notes to the Consolidated Financial Statements

June 30, 2003




GENERAL


U.S. Wireless Online, Inc. (the Company) has elected to omit substantially all footnotes to the financial statements for the three and six months ended June 30, 2003 since there have been no material changes (other than indicated in other footnotes) to the information previously reported by the Company in the audited financial statements for the fiscal year ended December 31, 2002 filed with the Current Report on Form 8-K/A dated July 28, 2003.


UNAUDITED INFORMATION


The information furnished herein was taken from the books and records of the Company without audit.  However, such information reflects all adjustments which are, in the opinion of management, necessary to properly reflect the results of the interim period presented.  The information presented is not necessarily indicative of the results from operations expected for the full fiscal year.


SUMMARY OF TRANSACTION


On May 12, 2003, the Company completed an Agreement and Plan of Reorganization between U.S. Wireless Online, Inc. (formerly Cach Foods, Inc.) a public Nevada corporation (USWO) (the Company) and U.S. Wireless Online, Inc. a private Georgia corporation (Wireless).  Pursuant to the plan, the Company effected a .48 for 1 reverse stock split and agreed to exchange up to 13,472,846 shares of common stock for all of the outstanding common stock of Wireless.  The Company also changed its name to U.S. Wireless Online, Inc.  The reorganization was recorded as a reverse acquisition using the purchase method of accounting.    










Item 2.  Management’s Discussion and Analysis of Financial Condition or Plan of Operation


Forward-Looking Statement Notice


When used in this report, the words “may,” “will,” “expect,” “anticipate,” “continue,” “estimate,” “project,” “intend,” and similar expressions are intended to identify forward-looking statements within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934 regarding events, conditions, and financial trends that may affect the Company’s future plans of operations, business strategy, operating results, and financial position.  Persons reviewing this report are cautioned that any forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties and that actual results may differ materially from those included within the forward-looking statements as a result of various factors.  These factors include general economic factors and cond itions that may directly or indirectly impact the Company’s financial condition or results of operations.  Such factors are discussed under Part I, Item 2, Management’s Discussion and Analysis of Financial Condition or Plan of Operations.


Our History and Business


We were formed as a Nevada corporation under the name Llebpmac, Inc. on May 4, 1998.  We originally incorporated to open and operate a restaurant.  From 1998 through early 2000 we conducted initial research but ultimately did not open the restaurant.  On October 2, 2000, our shareholders approved a two for one forward split of our outstanding common stock and we changed our purpose to be a wholesale snack food merchandiser.  On October 10, 2000, we entered into a license agreement with the owner of the Idaho Chips trademark and began efforts to market potato chips in Japan and other Asian markets.  On November 1, 2000, we changed our name to Cach Foods, Inc. to reflect our change in purpose.  


Cach Foods, Inc. became a public company on October 17, 2001.  From 2001 through April of 2003 we conducted research on producing, manufacturing and distributing potato chips in Japan and China.  In April of 2003, our license agreement to market Idaho Chips expired and we ceased our snack food marketing activities.


On May 12, 2003 we entered an agreement and plan of reorganization with US Wireless Online, Inc.  The transaction closed on May 19, 2003.  Pursuant to the agreement, the Company effected a 0.48 to one reverse split of the then 12,152,000 currently issued and outstanding shares causing 5,832,960 shares to be issued and outstanding at closing.  Cornelius A. Hoffman, II, former President and director of Cach Foods then cancelled 3,820,000 post-split shares leaving 2,012,960 shares of common stock outstanding for the existing Cach shareholders.  Cach then agreed to exchange up to 13,472,846 shares of previously authorized but unissued common stock for up to 49,442,170 shares of U.S. Wireless common stock which represented all of the issued and outstanding shares of U.S. Wireless, making U.S. Wireless a subsidiary of Cach.  At the date of this report, approximately 98% of the U.S. Wireless shares had been exchanged for post-split shares and subsequently cancelled, making U.S. Wireless a majority-owned subsidiary of Cach.  Management anticipates that the remaining U.S. Wireless shares will be exchanged and cancelled in the coming weeks, making U.S. Wireless a wholly-owned subsidiary.  As a result of this transaction, the Company changed its name to U.S. Wireless Online, Inc.  Following completion of the transaction, the Company had 15,485,806 shares of common stock issued and outstanding.   


The transaction also created a change in control of the Company.  Pursuant to the agreement, Cornelius A. Hofman, II, Brian J. Kramer and Kelly O. McBride resigned.  David M. Ragland, Doug Keeney, Dan Burke, Sr., and James D. Murphy became directors of the Company.  Doug Keeney was also named as Chief Executive Officer and Dan Burke, Sr. became President and Chief Financial Officer.


US Wireless Online, Inc. incorporated in Georgia in 2000 as a privately held corporation to offer high-speed, low cost Internet access to small and medium sized businesses.  After six months of development and beta testing, US Wireless Online inaugurated commercial service in Atlanta, Georgia on January 1, 2001.  In February 2001, US Wireless Online successfully bid for certain operating assets of SENETS, a Multiple Dwelling Unit (“MDU”) operator then undertaking reorganization under Chapter 11 of the US Bankruptcy Code.  US Wireless Online used these assets to upgrade the Atlanta network.  In May 2001, US Wireless Online successfully acquired the wireless operations of Darwin, Inc., a hybrid MDU/wireless operator in Kentucky then also undertaking reorganization under Chapter 11. Through the Darwin acquisition, US Wireless Online acquired markets in Kentucky and Ohio and acquired a carrier-grade Network Operations Center.


Products

US Wireless Online’s core service is high-speed, wireless Internet access for business. Services are provided to businesses in Louisville, Kentucky; Cincinnati, Columbus and Dayton, Ohio; and Atlanta, Georgia.


US Wireless Online sells three products within these areas– high-speed Internet access (priced in four tiers from 128 kilobits to 2 megabits); Wi-Fi (wireless broadband) networks; and broadband connections in two convention centers.


Market Size

Based upon various industry data, which are periodically updated, fewer than 15% of the approximately 14 million small, medium and large firms in America have high-speed Internet access.  However, approximately 91% of the users indicate that the value of high-speed access far exceeds the cost and approximately 50% indicate that they expect to add high-speed access in the next 12 months.  The Federal Communications Commission estimates that there were 1.8 million business broadband connections as of June 2001.  This number is expected to grow to 6.9 million connections by 2004 for a growth rate of 383%.


Upon completion of US Wireless Online’s metro-wide overbuilds, the first of which the Company anticipates in 2004, the number of business and residences “passed” will increase in any given market from approximately 15% penetration to approximately 85% penetration in each of the Company’s metro markets.


Target markets include small, medium and large business and residential customers.  


Locations and Facilities

US Wireless Online is headquartered in Louisville, Kentucky at 745 W. Main Street, Suite 100. The national Network Operations Center (NOC) is located less than a mile from the management offices on the 23rd floor of the PNC Plaza building also in Louisville, Kentucky. US Wireless Online has a regional office in Atlanta.


The Company’s NOC has a Kidde/Grinell oxygen-depletion fire suppression system, filtered air, Liebert battery-based 12-hour Uninterruptible Power Supply back-up, Liebert conditioned air, triple redundant power grids, over 2,000 square feet of raised floor and over 15 displays continuously monitoring each IP-addressable device in the network. US Wireless Online acquired the NOC in the Darwin acquisition at a discount to its actual cost. The NOC is staffed from 7AM to 7PM with on-call paging available 24 hours a day, seven days a week.  


Results of Operations for the Three and Six Months Ended June 30, 2003 and 2002


The following information should be read in conjunction with the unaudited condensed financial statements attached herein.  


Revenues for US Wireless during the three months ended June 30, 2003 were $428,550 with cost of sales of $229,565 resulting in gross profit of $198,985.  Operating expenses and general and administrative expenses during this period were $464,010 resulting in a net operating loss of $265,025.  Other expenses included $250,000 in acquisition expense and interest expense of $13,738.  As a result of the foregoing, we realized a net loss of $528,763 during the fiscal quarter ended June 30, 2003.


Revenues for US Wireless during the three months ended June 30, 2002 were $477,356 with cost of sales of $291,634 resulting in gross profit of $185,722.  Operating expenses and general and administrative expenses during this period were $350,253 resulting in a net operating loss of $164,531.  We also had interest expense of $41,293 during this period.  As a result of the foregoing, we realized a net loss of $205,824 during the three months ended June 30, 2002.


During the six months ended June 30, 2003, US Wireless generated $840,532 in revenues from continuing operations.  Cost of sales was $444,747 resulting in gross profit of $395,785.  Operating and general and administrative expenses were $761,797 resulting in a net operating loss of $366,012.  Other expenses during the first six months of 2003 consisted of acquisition expense of $250,000 and interest expense of $25,991 resulting in a net loss of $642,043.


Revenues for US Wireless during the six months ended June 30, 2002 were $1,003,729 with cost of sales of $523,816 resulting in gross profit of $479,913.  Operating expenses and general and administrative expenses during this period were $889,260 resulting in a net operating loss of $409,347.  We also had interest expense of $44,149 during this period.  As a result of the foregoing, we realized a net loss of $453,496 during the six months ended June 30, 2002.


Decreased revenue during the three and six month periods ended June 30, 2003 were the result of closing and/or selling unprofitable operations.  As a result, although our revenues have declined during 2003, our cost of sales have also decreased significantly, from 61% for the three months ended June 30, 2002 to 46% during the comparable period in 2003.  Increased operating expenses in 2003 are primarily due to costs associated with acquiring our subsidiary and restructuring operations.


All revenues in 2002 and 2003 derived from US Wireless’ Internet service activities.  Cach Foods did not generate any revenue from inception through May of 2003.  Expenses during all periods consisted of salaries, office rentals, system operating and acquisition costs, legal, accounting and other professional fees.  


Liquidity and Capital Resources


At June 30, 2003 total assets were $849,249.  Current assets were $94,218 consisting of $78,776 in accounts receivable and $15,443 in prepaid expenses.  We also had property and equipment of $602,585.  Other assets consisted of our client base valued at $150,000 and $2,439 in deposits.  At December 31, 2002 total assets were $987,327 consisting of $112,092 in current assets, $694,966 in property and other assets of $180,269.  


Total liabilities at June 30, 2003 were $2,258,184.  Current liabilities were $1,593,945 consisting of a $54,804 cash overdraft, $716,592 in accounts payable, $81,899 in accrued expenses and $740,649 in the current portion of long term debt.  Other liabilities consisted of $316,844 in convertible notes payable, $980,417 in notes payable, $76,635 in notes payable to related parties and $30,992 in lease obligations. Total liabilities at December 31, 2002 were $1,766,266 consisting of $1,276,378 in current liabilities and $489,888 in long term debt.  The increase in total liabilities from December 31, 2002 through the first six months of 2003 is primarily due to increased accounts payable relating to the acquisition of our subsidiary.


Management believes that we have sufficient anticipated accounts receivable to meet our immediate operating needs.  However, we will require additional funding through the end of the year to reduce our liabilities and fully implement our business plan.  We propose to meet our liquidity needs through continuing operations and through the sale of common stock.   However, we cannot guarantee that we will generate sufficient proceeds to settle our debts and fund operations through the end of the year.  If we require additional capital, we may seek advances from officers or shareholders, or explore other debt financing strategies.  


Item 3.  Controls and Procedures


Within the 90-day period prior to the date of this report, we evaluated the effectiveness and operation of our disclosure controls and procedures pursuant to Rule 13a-14 of the Securities Exchange Act of 1934.  Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective.  There have been no significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date we carried out our evaluation.


PART II.  OTHER INFORMATION


Item 2.  Changes in Securities and Use of Proceeds


Pursuant to the Agreement and Plan of Reorganization between US Wireless, Inc. and Cach Foods, Inc., on May 19, 2003 the Company effected a 0.48 to one reverse split of the then 12,152,000 currently issued and outstanding shares of common stock into 5,832,960 shares.  The former President and director of Cach then cancelled 3,820,000 shares leaving 2,012,960 shares of common stock for the existing Cach shareholders.  Cach then agreed to exchange up to 13,472,846 previously authorized but unissued shares of common stock for up to 49,442,170 shares of U.S. Wireless common stock which represented all of the issued and outstanding shares of U.S. Wireless.  At the date of this report, approximately 98% of the U.S. Wireless shares had been exchanged and subsequently cancelled.  Following the completion of the transaction, the Company had 15,485,806 shares of common stock issued and outstanding.


From inception in 2000 through April of 2003, U.S. Wireless Online, a privately held Georgia corporation, issued 4,500,000 options to purchase common stock in the private corporation at $.001 per share.  On May 19, 2003, U.S. Wireless Online became a subsidiary of Cach Foods, Inc., a publicly held Nevada corporation.  Pursuant to this transaction, the 4,500,000 options to purchase the private subsidiary’s common stock were to be exchanged for 1,528,154 options to purchase the public company’s common stock.  At closing, the options in the private subsidiary had not been exchanged for options in the public company.  When the options are exercised, the company intends to convert the options in the private company to shares in the public company at a ratio of 3.14 subsidiary options to each public share.  At June 30, 2003, no options had been exercised and converted to public company common sto ck.  


Item 5.  Related Party Transactions


ISP Ventures LLC, a shareholder and entity controlled by the Company’s chief financial officer, has loaned money to the Company to help fund operations.  At June 30, 2003, the Company owed $76,635 to ISP Ventures, LLC.


In November of 2001, the Company secured a $50,000 line of credit from Mr. David Ragland.  In May of 2003, Mr. Ragland became the Company’s Chairman of the Board.  The line of credit carries 8% interest and is payable on demand.  At June 30, 2003, the Company owed Mr. Ragland $50,000 on the line of credit.


Item 5.  Subsequent Event, Legal Proceeding


In May of 2001, the Company issued a convertible note payable of $181,844 to Enterasys Networks, Inc. to pay for certain radio equipment purchased from Enterasys.  At November 2002 the note was in default.  Subsequent to the date of this report, on July 2, 2003 Enterasys filed a complaint against the Company in the United States District Court for the Western District of Kentucky, Louisville Division.  The case caption is Enterasys Networks, Inc. v. U.S. Wireless Online, Inc., Civil Action No. 3:03CV-405-H.  Enterasys is seeking payment of $181,844.40 plus interest at 8% from November 30, 2001, along with court costs and attorney’s fees.  Based upon an agreed order entered into by the parties setting aside Enterasys’ motion for default judgment, U.S. Wireless has until September 9, 2003 to file an answer to the complaint.  U.S. Wireless intends to vigorously defend itself in this actio n.


Item 6.  Exhibits and Reports on Form 8-K.


Exhibit Number

Title

Location

31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002

Attached

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002

Attached

32.1

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002

Attached

32.2

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002

Attached


Reports on Form 8-K:  The following reports on Form 8-K relating to the Agreement and Plan of Organization between Cach Foods, Inc. and US Wireless Online, Inc. were filed by the Company during the quarter ended June 30, 2003:


Filing Date

Title of Report

Events Reported

May 20, 2003

8-K Current Report

Item 1.  Change in Control of the Company

Item 2.  Acquisition or Disposition of Assets

Item 7.  Financial Statements

Subsequent to the date of this report, on July 28, 2003, the Company filed the following report on Form 8-K/A relating to the Agreement and Plan of Organization between Cach Foods, Inc. and US Wireless Online, Inc.:


Filing Date

Title of Report

Events Reported

July 28, 2003

8-K/A Current Report

Item 7.  Financial Statements








SIGNATURES


In accordance with the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


US WIRELESS ONLINE, INC.



Date: September 9, 2003

/s/ L. Douglas Keeney

L. Douglas Keeney

Chief Executive Officer




Date: September 9, 2003

/s/ Daniel P. Burke, Sr.

Daniel P. Burke, Sr.

Chief Financial Officer








EX-31 3 uswire603qsbaex311.htm EX 31.1 302 CERTIFICATION OF CEO Exhibit 31

Exhibit 31.1


Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002


I, L. Douglas Keeney, the Chief Executive Officer of US Wireless Online, Inc. (the “Company”), certify that:


1. I have reviewed this quarterly report on Form 10-QSB/A of the Company;


2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;


4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:


a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;


b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and


c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;


5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):


a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and


b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls; and


6. The registrant’s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



September 9, 2003

/s/L. Douglas Keeney

L. Douglas Keeney

Chief Executive Officer


EX-31 4 uswire603qsbaex312.htm EX 31.2 302 CERTIFICATION OF CFO Exhibit 31

Exhibit 31.2


Certification Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 302 of The Sarbanes-Oxley Act of 2002


I, Daniel P. Burke, Sr., the Chief Financial Officer of US Wireless Online, Inc. (the “Company”), certify that:


1. I have reviewed this quarterly report on Form 10-QSB/A of the Company;


2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;


4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:


a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;


b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the “Evaluation Date”); and


c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;


5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):


a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and


b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and


6. The registrant’s other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.



September 9, 2003

/s/ Daniel P. Burke, Sr.

Daniel P. Burke, Sr.

Chief Financial Officer


EX-32 5 uswire603qsbaex321.htm EX 32.1 906 CERTIFICATION OF CEO Exhibit 32

Exhibit 32.1


CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of US Wireless Online, Inc. (the “Company”) on Form 10-QSB/A for the period ended June 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, L. Douglas Keeney, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:


(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.




/s/L. Douglas Keeney

L. Douglas Keeney

Chief Executive Officer

September 9, 2003



EX-32 6 uswire603qsbaex322.htm EX 32.2 906 CERTIFICATION OF CFO Exhibit 32

Exhibit 32.2


CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002



In connection with the Quarterly Report of US Wireless Online, Inc. (the “Company”) on Form 10-QSB/A for the period ended June 30, 2003 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Daniel P. Burke, Sr., Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:


(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.




/s/Daniel P. Burke, Sr.

Daniel P. Burke, Sr.

Chief Financial Officer

September 9, 2003


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