0000950144-01-508216.txt : 20011101 0000950144-01-508216.hdr.sgml : 20011101 ACCESSION NUMBER: 0000950144-01-508216 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010331 FILED AS OF DATE: 20011030 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RAINWIRE PARTNERS INC /DE/ CENTRAL INDEX KEY: 0000917253 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 570941152 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-23892 FILM NUMBER: 1770924 BUSINESS ADDRESS: STREET 1: 9229 UNIVERSITY BLVD STREET 2: STE 201 CITY: CHARLESTON STATE: SC ZIP: 29406 BUSINESS PHONE: 8435539456 MAIL ADDRESS: STREET 1: 9229 UNIVERSITY BLVD STREET 2: STE 201 CITY: CHARLESTON STATE: SC ZIP: 29406 FORMER COMPANY: FORMER CONFORMED NAME: ENVIROMETRICS INC /DE/ DATE OF NAME CHANGE: 19940107 10QSB 1 g72375e10qsb.txt RAINWIRE PARTNERS, INC. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20459 FORM 10-QSB QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended: March 31, 2001 Commission File Number: 0-23892 Rainwire Partners, Inc. --------------------------------------------------------- (Exact Name of Registrant as specified in its charter Delaware 57-0941152 --------------------------------------------------------- ------------------- (State or other jurisdiction of incorporation or (I.R.S. Employer organization Identification No.) Monteith Commons, First Floor 2931 Piedmont Road, N.E., Atlanta, Georgia 30305 --------------------------------------------------------- ------------------- Address of Principal executive offices of Incorporation Zip Code or organization 404-842-1510 --------------------------------------------------------- Registrants telephone number, including area code 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 and 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 last 90 days. YES [ ] NO [X] APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding of each of the issuer's classes of common stock, as to the latest practical date. CLASS No. of shares Outstanding on March 31, 2001 Common Stock 7,609,886 Par Value $.001 Per share RAINWIRE PARTNERS, INC. TABLE OF CONTENTS
Page Part I Financial Information Item 1. Financial Statements: Condensed Consolidated Balance Sheets at March 31, 2001 (unaudited) and December 31, 2000....................................1 Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2001 and 2000..................................2 Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2001 and 2000..................................3 Statement of Changes in Stockholders' equity for the period from December 31, 1999 to March 31, 2001 (unaudited)................................4 Notes to Condensed Consolidated Financial Statements................................5 Item 2. Plan of operation...................................................................5
Page Part II Other Information Item 1. Legal Proceedings...................................................................5 Item 2. Changes in Securities and Use of Proceeds...........................................6 Item 3. Defaults Upon Senior Securities.....................................................6 Item 4. Submission of Matters to a Vote of Security Holders.................................6 Item 5. Other Information...................................................................6 Item 6. Exhibits and Reports on Form 8-K....................................................7
RAINWIRE PARTNERS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, December 31, 2001 2000 ------------ ------------ (unaudited) ASSETS OF DISCONTINUED BUSINESS CURRENT ASSETS Cash $ 898 $ 2,043 Accounts receivable, net of allowance for doubtful accounts of $29,575 21,962 Related party advance, unsecured 12,700 ------------ ------------ TOTAL CURRENT ASSETS 898 36,705 ------------ ------------ OTHER ASSETS Deposits 6,257 ------------ ------------ $ 898 $ 42,962 ============ ============ LIABILITIES OF DISCONTINUED BUSINESS CURRENT LIABILITIES Shareholder loan $ 60,000 $ 60,000 Accounts payable 475,104 469,517 Accrued business disposal costs and expenses 511,731 513,016 Other accrued liabilities 63,995 110,361 ------------ ------------ TOTAL CURRENT LIABILITIES 1,110,830 1,152,894 ------------ ------------ REDEEMABLE PREFERRED STOCK Par value $.01; authorized 2,500,00 shares issued 1999 - 24,959 shares 52,913 52,913 ------------ ------------ COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY (DEFICIT) Common stock, $0.001 par value; authorized, 20,000,000 shares outstanding, 7,609,886 shares 7,610 7,610 Paid-in capital 1,321,472 1,321,472 Deficit accumulated since inception (2,491,927) (2,491,927) ------------ ------------ TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (1,162,845) (1,162,845) ------------ ------------ $ 898 42,962 ============ ============
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS 1 RAINWIRE PARTNERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, ---------------------------------- 2001 2000 ------------ ------------ Revenues $ -- $ -- Expenses ------------ ------------ Income (loss) from continuing operations -- -- Discontinued Operations: Income from discontinued operations 28,879 ------------ ------------ Net Income $ -- $ 28,879 ------------ ------------ WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING $ 7,609,886 5,555,064 ============ ============ Basic And Diluted Net Income Per Common Share $ -- $ -- Income From Discontinued Operations -- 0.01 ------------ ------------ Basic And Diluted Net Income Per Common Share $ -- $ 0.01 ============ ============
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 2 RAINWIRE PARTNERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, ------------------------------- 2001 2000 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES Continuing Operations $ -- $ -- Discontinued Operations Adjustments to reconcile net loss to net cash flows used by discontinued activities Income (loss) from operations of discontinued business -- 28,879 Depreciation and amortization 11,418 Changes in current assets and liabilities: Accounts receivable 34,662 (104,972) Other current assets 17,000 Deposits 6,257 Accrued liabilities (46,366) Accounts payable 4,302 87,820 ---------- ---------- Net Cash Flow Used by discontinued activities (1,145) 40,145 ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of equipment -- (27,597) ---------- ---------- Net cash flow from (to) investing -- (27,597) activities ---------- ---------- NET CHANGE IN CASH FLOWS FOR THE PERIOD (1,145) 12,548 CASH, AT BEGINNING OF PERIOD 2,043 2,294 ---------- ---------- CASH, AT END OF PERIOD $ 898 $ 14,842 ========== ==========
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 3 RAINWIRE PARTNERS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
COMMON STOCK ------------------------- PAID-IN ACCUMULATED SHARES AMOUNT CAPITAL (DEFICIT) TOTAL --------- ------ ----------- ----------- ----------- BALANCE, DECEMBER 31, 1999 5,555,064 $5,555 $ 609,375 $ (419,028) $ 195,902 Recapitalization, July 26, 2000 554,822 555 (188,329) (187,774) Issuance of stock for: Services at $.11 per share 480,000 480 52,320 52,800 Reduction in note payable at $1.25 per share 120,000 120 149,880 150,000 Cash at $.78 per share 900,000 900 699,100 700,000 Dividends accrued on redeemable preferred stock (874) (874) Net (loss) for the year (2,072,899) (2,072,899) --------- ------ ----------- ----------- ----------- BALANCE, DECEMBER 31, 2000 7,609,886 7,610 1,321,472 (2,491,927) (1,162,845) Net income (loss) for the three months ended March 31, 2001 -- -- --------- ------ ----------- ----------- ----------- BALANCE, MARCH 31, 2001 7,609,886 $7,610 $ 1,321,472 $(2,491,927) $(1,162,845) ========= ====== =========== =========== ===========
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4 RAINWIRE PARTNERS, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS Three Months Ended March 31, 2001 Note 1. Basis of Presentation In the opinion of management, the accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's financial position as of March 31, 2001 and the results of its operations and cash flows for the three months ended March 31, 2001 and 2000 have been made. Operating results for the three months ended March 31, 2001 are not necessarily indicative of the results that may be expected for the year ended December 31, 2001. These condensed financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company's Form 10-KSB for the year ended December 31, 2000. Item 2. Plan of Operation For the near term, the Company continues to work towards finalizing its stock exchange agreement with Oasis Group, Inc. It is financially dependent on its shareholders, who have financed its existence since closing down its operations in February, 2001. Management of the Company believes that its shareholders will continue to provide the finances the Company requires. PART II OTHER INFORMATION Item 1. Legal Proceedings The Company is involved with several legal actions, principally as defendant. These actions involve outstanding liabilities of the Company including those of subsidiaries. Following are four such actions: Azimuth Laboratory, Inc., a subsidiary of EVRM, generated hazardous waste during the time of its operations which ceased in April, 2000. According to a former landlord, Azimuth was responsible for a hazardous waste cleanup on the leased premises, and he is seeking recovery of approximately $130,000, including the cleanup and remaining payments due under the terms of the lease agreement which is to expire in December, 2001. A motion for summary judgment is expected to be heard by the end of 2001. Only the remaining lease obligation of $66, 271 has been recorded as of December 31, 2000. 5 As of December 31, 2000, a judgment against the Company was obtained by the holder of the remaining Series C redeemable preferred stock for $21,666 relating to the failure by the Company to redeem 8,333 of those shares and to pay dividends when due. Substantially all of that amount was recorded as of December 31, 2000. IOS Capital, Inc. has made a demand to Rainwire for sums defaulted upon as a result of an equipment lease signed by Rainwire in February, 1997. IOS Capital indicated that they would compromise the amounts owed for the sum of $15,479.20 in full satisfaction of the claim; however, Rainwire failed to make the payment by the required date. An action has been filed and reduced to a judgment against Rainwire Partners, Inc. by H.E. Igoe in the amount of $21,665.96 filed on June 25, 2001. This matter involved a share purchase agreement between Rainwire and Igoe. Item 2. Changes in Securities and Use of Proceeds None Item 3. Defaults Upon Senior Securities As of March 31, 2001, 24,959 shares of Series C preferred stock remain outstanding. Dividends on theses shares total $2,621 and are still unpaid. Item 4. Submission of Matters to a Vote of Security Holders On March 5, 2001, the Company filed a Preliminary Information Statement on Schedule 14C in connection with a proposed amendment to its Certificate of Incorporation. On October 17, 2001, the Company reported on Form 8-K that because the transaction contemplated by the Preliminary Information Statement will no longer occur on the terms and conditions indicated in the Preliminary Information Statement, the Company abandoned its Preliminary Information Statement. Item 5. Other Information In February, 2001, Rainwire Partners, Inc. ("Rainwire" or the "Company") and Oasis Group, Inc., a Georgia corporation ("Oasis"), began discussions concerning the use of Rainwire as a reverse merger vehicle to position Oasis in the public market. These initial discussions did not result in any agreements. After exploring similar agreements with other parties, the Company re-entered discussions with Oasis in July, 2001. On August 29, 2001, Rainwire and Oasis completed negotiations and the Oasis Share Exchange Agreement was signed. It is a non-binding agreement subject to the completion of due diligence and exchange of Schedules outlined in the Oasis Share Exchange Agreement. Prior to the Closing, Rainwire plans to increase its authorized common stock and reverse split its present outstanding shares. The Company is seeking shareholder approval of the Oasis Share Exchange Agreement and the transactions contemplated by it. The consent of persons holding a simple majority (over 6 50%) of the outstanding Company common stock is needed to approve the closing of the transaction and authorization of the other transactions identified. Because current management owns greater than 50% of the outstanding Company common stock, the Company expects to receive the necessary shareholder approval and intends to prepare an Information Statement on Form 14C to inform the remaining shareholders of the majority's decision. The Company expects to mail the Information Statement to its shareholders on or about November 25, 2001, and believes that the transaction will close on or about December 15, 2001. Upon execution of the Oasis Share Exchange Agreement, Walter H. Elliott, the President and a director of the Company resigned, and Ronald A. Potts was elected to the Board of Directors of the Company and was appointed President and Chief Executive Officer of the Company. Additionally, Mike McLaughlin and John Hill were elected to the Board of Directors and Peggy Evans was appointed Chief Financial Officer. Furthermore, upon execution of the Share Exchange Agreement, the Company issued 12,000,000 shares of its common stock to Osprey Investments, LLC (of which Lyne Marchessault is the sole member) in satisfaction of loans in the principal amount of $60,000. Item 6. Exhibits and Reports on Form 8-K: During the first quarter of 2001, the Company filed no reports on From 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized. RAINWIRE PARTNERS, INC. October 30, 2001 /s/ Ronald A. Potts --------------------------------------------- President and Chief Executive Officer 7