10QSB/A 1 pp10qaq1.htm 10QSB/A FOR PEOPLENET INTERNATIONAL 03-31-2005

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB/A

(Mark One)

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

FOR THE QUARTER ENDED MARCH 31, 2005

OR

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

FOR THE TRANSITION PERIOD FROM ___________ TO _____________

Commission file number 000-33033

PEOPLENET INTERNATIONAL CORPORATION
(Name of small business issuer in its charter)

Delaware	02-0575232
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

5201 Great America Parkway, Suite 239
Santa Clara, California 95054
(Address of Principal Executive Offices including Zip Code)

(408) 988-1888
(Registrant's Telephone Number, Including Area Code)

(Former Name, Former Address and Former Fiscal Year, 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 [ ]

Applicable only to issuers involved in bankruptcy proceedings during the past five years:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ]

Applicable only to corporate issuers:

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.

Number of shares of common stock, par value $0.0001, outstanding as of May 15, 2005 is 16,337,499.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]

PEOPLENET INTERNATIONAL CORPORATION

FORM 10-QSB/A

For March 31, 2005

TABLE OF CONTENTS


Part I.	Financial Information
Item 1.	Financial Statements
	Balance Sheet as of March 31, 2005	3
	Statements of Operations for the three-month periods ended March 31, 2005 and 2004	4
	Statements of Cash Flows for the three-month periods ended March 31, 2005 and 2004	5
	Notes to Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Controls and Procedures	12

Part II.	Other Information
Item 1.	Legal Proceedings	13
Item 2.	Changes in Securities and Use of Proceeds	13
Item 3.	Defaults Under Senior Securities	13
Item 4.	Submission of Matters to a Vote of Security Holders	13
Item 5.	Other Information	13
Item 6.	Reports on Form 8-K	13

Signatures		14
Certifications		14

PART I

Item 1. Financial Information - (unaudited)

PEOPLENET INTERNATIONAL CORPORATION
BALANCE SHEET (RESTATED)

                                                     March 31
                                                       2005
                                                   ------------
                                                    (unaudited)
                                                     (restated)
ASSETS
  Current Assets
    Cash & cash equivalents                        $   192,102
    Advances from related party                          4,668
    Other current asset                                102,624
                                                   ------------
    Total Assets                                   $   299,394

  Property & Equipment - net                            43,751

  Deposit - rent                                        23,061
                                                   ------------
                                                   $   366,206
                                                   ============

LIABILITIES AND STOCKHOLDERS' DEFICIT
  Current liabilities
    Accounts payable & accrued expenses            $   426,353

  Stockholders' Deficit
    Preferred stock, $0.0001 par value;
      10,000,000 shares authorized                 $       -
    Common stock, $0.0001 par value;
      100,000,000 shares authorized;
      16,337,499 shares issued and
      outstanding at March 31, 2005                      1,634
    Additional paid-in capital                      20,255,312
    Subscription receivable                            (64,000)
    Deferred compensation charges                     (293,533)
    Accumulated deficit                            (19,959,560)
                                                   ------------
      Total Stockholders' Deficit                      (60,147)
                                                   ------------
                                                   $   366,206
                                                   ============

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

PEOPLENET INTERNATIONAL CORPORATION
STATEMENTS OF OPERATIONS

                                        Three-month Periods Ended
                                       ---------------------------
                                         March 31       March 31
                                           2005           2004
                                       ------------   ------------
                                        (unaudited)    (unaudited)
REVENUES

  Hosting & other                      $     3,891    $     3,049
                                       ------------   ------------
    Total revenues                           3,891          3,049
                                       ------------   ------------

COSTS AND EXPENSES
  Depreciation & amortization                1,234            -
  Rent                                      34,376            -
  Salaries and payroll taxes                16,929            -
  Professional fees                        150,625          5,739
  General and administrative                80,122         71,211
                                       ------------   ------------
    Total costs and expenses               283,286         76,950
                                       ------------   ------------

LOSS FROM OPERATIONS                      (279,395)       (73,901)


OTHER INCOME (EXPENSES)
  Interest expense                             -           (1,160)
  Interest income                              564            -
                                       ------------   ------------
  Total other income (expenses)                564         (1,160)


LOSS FROM OPERATIONS BEFORE
  PROVISION FOR INCOME TAXES              (278,831)       (75,061)

PROVISION FOR INCOME TAXES                     800            800
                                       ------------   ------------
NET LOSS                               $  (279,631)   $   (75,861)
                                       ============   ============
Basic and diluted weighted average
  number of shares outstanding          16,148,210     15,749,999
                                       ============   ============
Basic and diluted loss per share            $(0.02)        $(0.00)
                                       ============   ============

Weighted average number of shares used to compute basic and diluted loss per share is the same since the effect of dilutive securities is anti-dilutive.

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

PEOPLENET INTERNATIONAL CORPORATION
STATEMENTS OF CASH FLOWS

                                                  Three Months    Three Months
                                                     Ended            Ended
                                                  ------------    ------------
                                                  Mar 31, 2005    Mar 31, 2004
                                                  ------------    ------------
                                                   (unaudited)     (unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES
 Net loss                                         $  (279,631)    $   (75,861)
  Adjustments to reconcile net loss:
    to net cash used for operating activities
      Depreciation and amortization                     1,234             -
      Amortization of deferred compensation charges    67,739          67,739
      (Increase) decrease in assets:
         Other current assets                        (102,624)            -
         Other assets                                 (23,061)            -
      Increase (decrease) in current liabilities:
         Accrued expenses                             (25,273)         (5,404)
         Other                                            -               (38)
                                                  ------------    ------------
      Net cash used for operating activities         (361,616)        (13,564)
                                                  ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of property & equipment                    (31,958)            -
                                                  ------------    ------------
    Net cash provided by investing activities         (31,958)            -
                                                  ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from sale of common stock                  326,000             -
  Payment for notes from related parties             (129,500)            -
  Proceeds of loans from related parties               67,500          12,900
                                                  ------------    ------------
    Net cash provided by financing activities         264,000          12,900
                                                  ------------    ------------

NET DECREASE IN CASH & CASH EQUIVALENTS              (129,574)           (664)

CASH & CASH EQUIVALENTS, Beginning Balance            321,676             771
                                                  ------------    ------------
CASH & CASH EQUIVALENTS, Ending Balance           $   192,102             107
                                                  ============    ============

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

NOTES TO FINANCIAL STATEMENTS

Note 1 - Nature of Operations

PeopleNet International Corporation (the "Company") was incorporated on February 5, 1997 in the state of Delaware. The Company focuses on development and sales of communication software solutions and management of media-related programs. The software solutions include a controlled and safe Internet browser for children and a multiple-module web-based email and office automation bundle.

Note 2 - Basis of presentation

The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the interim periods are not necessarily indicative of the results for any future period. These statements should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended December 31, 2004.

Note 3 - Recent pronouncements

In December 2004, the FASB issued FASB Statement No. 123R, "Share-Based Payment, an Amendment of FASB Statement No. 123" ("FAS No. 123R"). FAS No. 123R requires companies to recognize in the statement of operations the grant- date fair value of stock options and other equity-based compensation issued to employees. FAS No. 123R is effective beginning in the Company's second quarter of fiscal 2006. The adoption of FASB Statement No. 123R may have a significant impact on the Company's financial position or results of operations.

In December 2004, the FASB issued SFAS Statement No. 153, "Exchanges of Nonmonetary Assets." The Statement is an amendment of APB Opinion No. 29 to eliminate the exception for nonmonetary exchanges of similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that do not have commercial substance. The adoption of SFAS Statement No. 153 does not have a significant impact on the Company's financial position or results of operations.

In April of 2004, the EITF reached consensus on the guidance provided in EITF Issue No. 03-6, "Participating Securities and the Two-Class Method under SFAS No. 128 Earnings Per Share" ("EITF 03-6"). EITF 03-6 clarifies whether a security should be considered a "participating security" for purposes of computing earnings per share ("EPS") and how earnings should be allocated to a "participating security" when using the two-class method for computing basic EPS. The adoption of EITF 03-6 does not have a significant impact on the Company's financial position or results of operations.

Note 4 - Reclassifications

Certain comparative amounts have been reclassified to conform to the three month periods ended March 31, 2005 and 2004.

Note 5 - Loss per share

Earnings per share for the three month periods ended March 31, 2005 and 2004 were determined by dividing net income for the periods by the weighted average number of both basic and diluted shares of common stock and common stock equivalents outstanding. Weighted average number of shares used to compute basic and diluted loss per share is the same since the effect of dilutive securities is anti-dilutive.

Note 6 - Property and Equipment

The property & equipment comprised of the following at March 31, 2005:

          Equipment                                      $    73,276
          Furniture                                           21,530
          Production equipment                               290,389
                                                         ------------
                                                             385,195

          Less accumulated depreciation & amortization       341,444
                                                         ------------
                                                         $    43,751
                                                         ============

Depreciation expense was $ 1,234 and $-0- for the three month periods ended March 31, 2005 and 2004, respectively.

Note 7 - Related Party Transactions

On January 1, 2005, the Company, entered into a consulting agreement with ECapital Group, Inc., a party related through CEO of the Company, to manage its programming and setting up of Peoplenet.com for $125,000. This amount was included in the professional fees in the accompanying financial statements.

Note 8 - Advances from Related Parties

The advances from related parties are due on demand, non-interest bearing and unsecured.

Note 9 - Commitments and Contingencies

On December 27, 2000, the Company entered into a worldwide distribution agreement with respect to The Adventures with Kanga Roddy television program with World Channel, Inc. Under the agreement, World Channel will have the exclusive rights for exhibition, distribution, process and reproduction and all commercial exploitation of the program for a period of five years. The agreement requires World Channel to make five annual installments of $600,000 on or before the end of each of the years 2001 through 2005. For the year ended December 31, 2001, the Company recognized $450,000 film income in relation to this distribution agreement, $193,000 of which was collected before year-end. The Company did not earn any revenue from the films in 2002. A 100% reserve on the remaining receivable was also established as of June 30, 2002. Because collection activity through December 31, 2001 raises substantial doubt with respect to amounts due in future years under this agreement and because there are currently no other agreements in place, the Company has reserved the remaining unamortized film costs for "The Adventures With Kanga Roddy" television program.

In June 2001 the Company signed an agreement with ECapital Group, Inc. ("ECapital") to purchase the exclusive licensing and marketing rights to ChiBrow, a safe web browser software for children. Under the terms of the agreement and upon the effectiveness of the spin-off of the Company from PSCT, the Company issued 374,587 shares of common stock, with registration rights, to ECapital in exchange for the worldwide exclusive rights to market and distribute ChiBrow for three years (see Note 1). The Company intends to file a registration statement for such shares immediately after the effectiveness of the spin-off transaction. Pursuant to the terms of the agreement, the Company shall retain 35% of all revenues generated from such marketing efforts and the balance shall be paid to ECapital. The registration for the 374,587 shares of PeopleNet common stock issued to ECapital has not yet been filed as of March 31, 2005.

Through December 31, 2001, the Company was still a subsidiary of Pacific Systems Control Technology, the following cases were either filed against Pacific Systems naming all of its subsidiaries including PeopleNet as the defendants, or Pacific Systems' initiated complaint resulted in a cross-complaint by the defendant naming Pacific Systems and all of its subsidiaries including PeopleNet as the defendants in the cross-complaint. Pacific Systems has agreed to indemnify all of its subsidiaries including PeopleNet from the liabilities of the following cases including expenses, fees or judgment.

In October 2001, Pacific Systems filed a complaint against a former employee in licensing and marketing activities for breach of contract, breach of fiduciary duty and unjust enrichment, among other causes of action, seeking declaratory relief from the court. A counter claim from the employee was filed in April 2002 against Pacific Systems and its subsidiaries. On April 15, 2002, judgment was entered against Pacific Systems and its subsidiaries in the amount of $70,527. As of December 31, 2002, $56,727 was still outstanding on the judgment. On February 11, 2003, Pacific Systems and its subsidiaries entered into a global settlement and mutual release of all claims with the former employee. Under the agreement, the defendants, including the Company, will pay to the former employee a total sum of $100,000 plus interest at the rate of 10% per year, payable in installments at the rate of $3,000 per month. As of March 31, 2005, the outstanding balance under the settlement agreement was $72,000. The Company has accrued $72,000 on its financial statements for the year ended December 31, 2004.

On April 9, 2002, the Company entered into a stock exchange agreement with MarketRoot Corporation where the Company intends to acquire all of the outstanding shares of MarketRoot for 1,740,000 shares of the Company's common stock. MarketRoot has developed and owned an e-commerce software product. The agreement is subject to the submission of audited financial statements of MarketRoot for the years ended December 31, 2001 and 2000 and the acceptance of such financial statements by the Company. As of December 31, 2004, audited financial statements of MarketRoot have not yet been submitted to the Company. The Company's Board of Directors have decided to cancel the stock exchange agreement due to MarketRoot's default and nullify a total of 1,620,621 shares of the Company's stock options granted in the year 2002 to owners of MarketRoot Corporation.

On January 27, 2005, the Company entered into a 16-month sublease agreement with Teknion LLC. The Company paid the full amount of $115,000 for the entire sublease period. Rent expense for the three month period ended March 31, 2005 was $14,376.

On February 16, 2005, the Company entered into a 3-year lease agreement with CarrAmerica Techmart. Monthly payments amounts to $10,604.

Note 10 - Common Stock / Options

During the three month period ended March 31, 2005, the Company issued 195,000 shares of common stock for cash amounting to $326,000 and subscription receivable for $64,000. The Company did not have any issuance of its stock in the three month period ended March 31, 2004.

Between April and May 2002, the Company issued a total of 6,680,620 stock options with exercise prices ranging from $0.08 to $0.12 per share and with gradual vesting arrangements, amount totaling $3,915,930. Due to the difference in valuation between certain intangible assets the Company acquired in March 2002 with the Company's common stock at $0.08 per share and common stock the Company sold to an investor in June 2002 at the price of $1.00 per share, the Company valued these options at a total of approximately $4.5 million.. The remaining unvested options are deferred and will be amortized over the vesting period.

During the three month periods ended March 31, 2005 and 2004, the Company amortized deferred compensation of $67,739 and $67,739 respectively.

Stock Options

The following summary presents the incentive and non-qualified options under the plan granted, exercised, expired and outstanding at March 31, 2005:

                                                 Weighted
                                                  Average
                                                 Exercise
                                  Under Plan        Price
                                 ------------   ----------
Balance, December 31, 2003         6,680,620        $0.10
  Granted                                -             -
  Exercised or lapsed                    -             -
                                 ------------   ----------
Balance, December 31, 2004         6,680,620        $0.10
  Granted                                -             -
  Exercised or lapsed                    -             -
                                 ------------   ----------
Balance, March 31, 2005            6,680,620        $0.10
                                 ============   ==========

The Company did not grant any options during the three month periods ended March 31, 2005 and 2004.

Note 11 - Going concern

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has accumulated deficit of $19,887,560 at March 31, 2005.The Company incurred a net loss of $279,631 and $75,861 for the three month periods ended March 31, 2005 and 2004, respectively. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which in turn is dependent upon the Company's ability to raise additional capital, obtain financing and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Management's plans and the ongoing operations of the Company are expected to require additional working capital in the next twelve months. The Company is marketing its software and communication products and is expected to generate revenues in future periods. The Company is also looking at several software companies to acquire. However, there can be no assurance that these plans could be successfully executed due to current adverse investment climate. The management believes that the Company needs to bring in at least $2M with in the next quarter to market the Company's new products.

Note 12 - Restatement

Subsequent to the issuance of the Company's financial statements for the three months ended March 31, 2005, the Company determined that certain transactions and presentation in the financial statements had not been accounted for properly in the Company's financial statements. Specifically, the Company did not recognize an accrual of $72,000 for the settlement agreement with a former employee of PSCT as disclosed in Note 9.

The Company has restated its financial statements for the year ended December 31, 2004 to recognize the accrual. The Company has restated its financial statements for the three months ended March 31, 2005 to reflect this change.

The effect of the correction of the error is as follows:

                                             As
                                         Previously          As
                                          Reported        Restated
                                        ------------    ------------

BALANCE SHEET ITEMS                         As of March 31, 2005
                                        ----------------------------

Liabilities:
  Account payables & accrued expenses   $    354,353    $    426,353

Stockholder's equity (deficit):
  Accumulated deficit                   $(19,887,560)   $(19,959,560)
  Total stockholder's equity (deficit)  $     11,853    $    (60,147)

Item 2. Management's Discussion And Analysis Of Financial Condition And Results Of Operations

Forward Looking Information

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" from liability for forward-looking statements. Certain information included in this Form 10-QSB and other materials filed or to be filed by the Company with the Securities and Exchange Commission (as well as information included in oral statements or other written statements made or to be made by or on behalf of the Company) are forward-looking, such as statements relating to operational and financing plans, capital uses and resources, competition, and demands for the Company's products and services. Such forward-looking statements involve important risks and uncertainties, many of which will be beyond the control of the Company. These risks and uncertainties could significantly affect anticipated results in the future, both short-term and long-term, and accordingly, such results may differ from those expressed in forward-looking statements made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, changes in external competitive market factors or in the Company's internal budgeting process which might impact trends in the Company's results of operations, unanticipated working capital or other cash requirements, changes in the Company's business strategy or an inability to execute its strategy due to unanticipated change in the industries in which it operates, and various competitive factors that may prevent the Company from competing successfully in the marketplace. The following discussion may contain forward-looking statements that are subject to risks and uncertainties. For a discussion of factors that could cause actual results to differ, please see the discussion contained herein. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequence events or circumstances. Readers are also encouraged to review the Company's publicly available filings with the Securities and Exchange Commission.

The following section discusses the significant operating changes, business trends, financial condition, earnings and liquidity that have occurred in the three-month period ended March 31, 2005. This discussion should be read in conjunction with the Company's financial statements and notes appearing elsewhere in this report.

Critical Accounting Policies

In the ordinary course of business, the company has made a number of estimates and assumptions relating to the reporting of results of operations and financial condition in the preparation of its financial statements in conformity with accounting principles generally accepted in the United States of America. Actual results could differ significantly from those estimates under different assumptions and conditions. The Company believes that the following discussion addresses the Company's most critical accounting policies, which are those that are most important to the portrayal of the Company's financial condition and results. The Company constantly re-evaluates these significant factors and makes adjustments where facts and circumstances dictate. Although historically, actual results have not significantly deviated from those determined using the necessary estimates inherent in the preparation of financial statements, future actual results may vary significantly. Estimates and assumptions include, but are not limited to, customer receivables, long-term asset lives, contingencies and litigation. The Company has also chosen certain accounting policies when options were available, including:

The intrinsic value method, or APB Opinion No. 25, to account for our common stock incentive awards; and

We record an allowance for credit losses based on estimates of customers' ability to pay. If the financial condition of our customers were to deteriorate, additional allowances may be required.

We adopt SFAS 142, Goodwill and Other Intangible Assets, in fiscal year 2002 to account for the carrying amount of the intangible assets.

The Company expects to apply the provisions of Statement of Position 97-2 and 98-4 as well as SAB 101, to account for the sales of software and related services that may be bundled with the software license.

These accounting policies are applied consistently for all years presented. Our operating results would be affected if other alternatives were used. Information about the impact on our operating results is included in the footnotes to our consolidated financial statements.

Results of Operation

PeopleNet was formed in February 1997, under the name American Champion Media, as a wholly owned subsidiary of Pacific Systems Control Technology ("PSCT"), formerly known as American Champion Entertainment. On February 8, 2002, the Company completed the spin-off from PSCT and became its own entity independent of PSCT. The shareholders of PSCT received one share of the Company's common stock for every 17 shares of PSCT stock held as of the record date of January 16, 2002.

During the three-month period ended March 31, 2005, the Company had insignificant operational activities and focused on seeking appropriate partners for merger.
Revenues

During the three-month period ended March 31, 2005, the Company had insignificant revenues.

Costs and Expenses

During the three-month period ended March 31, 2005, we had salaries and payroll taxes of $16,929 and office rental expenses of $34,376. We had professional fees in the amount of $150,625 and general and administrative costs of $80,122. Our weighted average number of shares increased to 16,148,210 and our net loss for the quarter was ($0.02) per share.

Liquidity and Capital Resources

Stockholders' equity, as of March 31, 2005, was a negative ($60,147) and operational cash was mainly provided for by the sale of common stock in the amount of $326,000.

The Company continues to seek appropriate partners for a merger.

Item 3. Controls and Procedures

Based on their most recent review, which was completed within 90 days of the filing of this report, the Company's principal executive officer and principal financial officer has concluded that the Company's disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the Company's management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure and are effective to ensure that such information is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. There were no significant changes in the Company's internal controls or in other factors that could significantly affect those controls subsequent to the date of their evaluation.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

As of December 31, 2001, while PeopleNet International Corporation was still a subsidiary of Pacific Systems Control Technology, the following cases were either filed against Pacific Systems naming all of its subsidiaries including PeopleNet as the defendants, or Pacific Systems' initiated complaint resulted in a cross-complaint by the defendant naming Pacific Systems and all of its subsidiaries including PeopleNet as the defendants in the cross-complaint. Pacific Systems has agreed to indemnify all of its subsidiaries including PeopleNet from the liabilities of the following cases including expenses, fees or judgment.

In October 2001, Pacific Systems filed a complaint against a former employee in licensing and marketing activities for breach of contract, breach of fiduciary duty and unjust enrichment, among other causes of action, seeking declaratory relief from the court. A counter claim from the employee was filed in April 2002 against Pacific Systems and its subsidiaries. On April 15, 2002, judgment was entered against Pacific Systems and its subsidiaries in the amount of $70,527. As of December 31, 2002, $56,727 was still outstanding on the judgment. On February 11, 2003, Pacific Systems and its subsidiaries entered into a global settlement and mutual release of all claims with the former employee. Under the agreement, the cross-defendants, including the Company, will pay to the former employee a total sum of $100,000 plus interest at the rate of 10% per year, payable in installments at the rate of $3,000 per month. As of March 31, 2005, the outstanding balance under the settlement agreement was $72,000. The Company has accrued $72,000 on its financial statements for the year ended December 31, 2004.

With the exception of the foregoing, no lawsuits or proceedings are currently pending against PeopleNet International Corporation.

Item 2. Changes in Securities and Use of Proceeds. None

Item 3. Defaults Under 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.

Exhibit 99.906 Certification pursuant to the Sarbanes-Oxley Act of 2002

Form 8-K None

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf on November 17, 2005 by the undersigned, thereunto duly authorized.

PEOPLENET INTERNATIONAL CORPORATION

(Registrant)

By: /s/ Benedict Van
------------------------------
Benedict Van
Chief Executive Officer

CERTIFICATIONS

I, Benedict Ban, Chief Executive Officer and Chief Financial Officer, of PeopleNet International Corporation, certify that:

1. I, have reviewed this amended quarterly report an Form 10-QSB/A of PeolpleNet International Corporation;

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 quarterly 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 pf 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.

Date: November 17, 2005

/s/ Benedict Van
Benedict Van
Chief Executive Officer and Chief Financial Officer

Exhibit 99.906

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Benedict Van, Chief Executive Officer and Chief Financial Officer of PeopleNet International Corporation (the "Company"), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to the best of my knowledge:

1. the Amended Quarterly Report on Form 10-QSB/A of the Company for the 3 months ended March 31, 2005 (the "Report") fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 17, 2005

/s/ Benedict Van
Benedict Van
Chief Executive Officer
and
Chief Financial Officer