-----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, UiOwZpv51963K8ztI7ttnLZKizy3iS8LqcZUz2mS/mNnMVIjQzoAgjpURQROiopj k46lxOQyeh3IKL8vnABB1w== 0000950148-99-002094.txt : 19990921 0000950148-99-002094.hdr.sgml : 19990921 ACCESSION NUMBER: 0000950148-99-002094 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990731 FILED AS OF DATE: 19990920 FILER: COMPANY DATA: COMPANY CONFORMED NAME: E NET FINANCIAL CORP CENTRAL INDEX KEY: 0000926844 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 841273503 STATE OF INCORPORATION: NV FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-24512 FILM NUMBER: 99714057 BUSINESS ADDRESS: STREET 1: 10497 TOWN & COUNTRY WAY STREET 2: SUITE 460 CITY: HOUSTON STATE: TX ZIP: 77024 BUSINESS PHONE: 7134677281 MAIL ADDRESS: STREET 1: 2102 BUSINESS CENTER DRIVE CITY: IRVINE STATE: CA ZIP: 92612 FORMER COMPANY: FORMER CONFORMED NAME: E NET CORP/NV DATE OF NAME CHANGE: 19990513 FORMER COMPANY: FORMER CONFORMED NAME: COMTECH CONSOLIDATION GROUP INC DATE OF NAME CHANGE: 19970624 FORMER COMPANY: FORMER CONFORMED NAME: SUARRO COMMUNICATIONS INC DATE OF NAME CHANGE: 19970319 10QSB 1 FORM 10-QSB 1 U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-QSB Quarterly Report Under the Securities Exchange Act of 1934 For Quarter Ended: July 31, 1999 Commission File Number: 0-24590 E-NET FINANCIAL CORPORATION (f/k/a E-NET CORPORATION) (Exact name of small business issuer as specified in its charter) Nevada (State or other jurisdiction of incorporation or organization) 84-1273503 (IRS Employer Identification No.) 2102 Business Cent. Dr. Irvine, CA (Address of principal executive offices) 92612 (Zip Code) (949) 253-4633 (Issuer's Telephone Number) (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes [ ] No [X]. The number of shares of the registrant's only class of common stock issued and outstanding, as of JULY 31, 1999 was 4,500,000 shares. 2 PART I ITEM 1. FINANCIAL STATEMENTS. E-NET FINANCIAL CORPORATION AND SUBSIDIARIES (A Development Stage Company) CONSOLIDATED BALANCE SHEETS
July 31 April 30 1999 1999 --------- --------- ASSETS CURRENT ASSETS Cash and equivalents $ 2,774 $ 4,282 Accounts receivable 1,464 0 Note receivable 92,825 87,500 Other current assets 21,821 14,418 --------- --------- TOTAL CURRENT ASSETS 118,884 106,200 EQUIPMENT, net 38,757 40,030 INVESTMENT IN MARKETABLE EQUITY SECURITIES 175,000 175,000 OTHER ASSETS 74,270 18,800 --------- --------- $ 406,911 $ 340,030 ========= ========= LIABILITIES AND SHAREHOLDERS' DEFICIT CURRENT LIABILITIES Current portion of deferred revenue $ 87,500 $ 87,500 Notes payable 178,663 38,606 Accounts payable and accrued expenses 120,023 56,754 Income tax liability 17,700 17,700 --------- --------- TOTAL CURRENT LIABILITIES 403,886 200,560 DEFERRED REVENUE 34,376 80,208 --------- --------- TOTAL LIABILITIES 438,262 280,768 --------- --------- SHAREHOLDERS' EQUITY Preferred stock, 1,000,000 shares authorized, no par value, none issued and outstanding Common stock, 20,000,000 shares authorized, $.001 par value, 4,500,000 shares issued and outstanding 4,500 4,500 Additional paid-in capital 45,175 45,175 Retained earnings (81,026) 9,587 --------- --------- TOTAL SHAREHOLDERS' EQUITY (31,351) 59,262 --------- --------- $ 406,911 $ 340,030 ========= =========
3 E-NET FINANCIAL CORPORATION AND SUBSIDIARIES (A Development Stage Company) CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended July 31, ------------------------------ 1999 1998 REVENUES Consulting fee revenue $ 11,459 $ 11,459 Other revenue 3,092 0 ----------- ----------- TOTAL REVENUES 14,551 11,459 OPERATING EXPENSES General and administrative 111,994 0 ----------- ----------- TOTAL OPERATING EXPENSES 111,994 0 ----------- ----------- INCOME (LOSS) FROM OPERATIONS (97,443) 11,459 OTHER INCOME (EXPENSE) Interest expense (2,695) 0 Interest income 9,525 0 ----------- ----------- TOTAL OTHER INCOME (EXPENSE) 6,830 0 INCOME (LOSS) BEFORE INCOME TAXES (90,613) 11,459 Income Taxes 0 4,000 ----------- ----------- NET INCOME (LOSS) $ (90,613) $ 7,459 =========== =========== BASIC AND DILUTED NET LOSS PER SHARE $ 0.00 $ 0.00 BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 2,417,808 2,417,808 =========== ===========
4 Consolidated Statements of Shareholders' Deficit From inception (November 20, 1996) to July 31, 1999
Preferred Stock Common Stock ------------------------------- ------------------------------------- Amount Amount -------------------- ------------------------ Number Per Number Per of Shares Share Total of Shares Share Total --------- --------- --------- ---------- --------- --------- Initial capitalization, as restated (1) - $ - $ - 2,000,000 $ .001 $ 2,000 Net loss for 1997 - - - - - - ========= ========= ========= ========= Balance, April 30, 1997 - - - 2,000,000 2,000 Unrealized losses on available for sale securities - - - - - - Net loss for 1998 - - - - - - ========= ========= ========= ========= Balance, April 30, 1998 - - - 2,000,000 2,000 Unrealized losses on available for sale securities - - - - - - Contributed capital - - - - - - E-net reorganization - - - 2,500,000 .023 2,500 Net loss for 1999 - - - - - - --------- --------- --------- --------- Balance, July 31, 1999 - - - 4,500,000 - $ 4,500 ========= ========= ========= =========
Accumulated Additional Additional Unrealized Deficit Paid-in Paid-in losses on During the Net Capital- Capital- Available for Development Shareholders' Common Preferred Sale Securities Stage Deficit ---------- --------- --------------- ----------- ------------- Initial capitalization, as restated (1) $ - $ - $ - $ 2,000 Net loss for 1997 - - - (2,000) (2,000) ========= ========= ========= ========= ========= Balance, April 30, 1997 - - - (2,000) - Unrealized losses on available for sale securities - - $ (46,860) - (46,860) Net loss for 1998 - - - (98,542) (98,542) ========= ========= ========= ========= ========= Balance, April 30, 1998 - - (46,860) (100,542) (145,402) Unrealized losses on available for sale securities - - $ (78,140) - (78,140) Contributed capital 10,000 - - - 10,000 E-net reorganization 35,175 - - - 37,675 Net loss for 1999 - - - (3,005) (3,005) --------- --------- --------- --------- --------- Balance, July 31, 1999 $ 45,175 $ - $(125,000) $(103,547) $(178,872) ========= ========= ========= ========= =========
(1) Share capital and additional paid in capital have been retroactively restated to give effect to the E-net reorganization. 5 E-NET FINANCIAL CORPORATION AND SUBSIDIARIES (A Development Stage Company) CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended July 31, -------------------------- 1999 1998 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) (90,613) $ 7,459 Adjustments to reconcile net income (loss) to net cash used by operating activities: (Increase) in accounts receivable (1,462) (Increase) in accrued receivables (11,781) Decrease in notes receivable 94,675 (Increase) in deferred tax asset (6,075) (Increase) in deposits (5,190) (Increase) in prepaid expenses (4,850) Depreciation 3,268 (Increase) in other assets (70) Increase in accounts payable 4,963 Increase in accrued expenses 109,685 (Decrease) in deferred revenue (87,500) Investment received as payment on consulting agreement (114,389) (7,459) --------- --------- Net cash used by operating activities (109,339) 0 --------- --------- Cash flows from investing activities: Purchases of equipment (42,025) Joint venture investments (74,200) --------- --------- Net cash used by investing activities (116,225) 0 --------- --------- Cash flows from financing activities: Proceeds from borrowings on short-term loans 178,663 Proceeds from issuance of common stock 4,500 Proceeds received from stockholders 45,175 --------- --------- Net cash provided by financing activities 228,338 0 --------- --------- Net increase in cash 2,774 0 Cash, beginning of period 0 0 --------- --------- Cash, end of period $ 2,774 $ 0 ========= =========
6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF OPERATIONS PLAN OF OPERATIONS The Company's business plan provides for the Company to develop and deliver through the internet and through other means, mortgage loan brokerage services and telecommunications (voice and data) services and other related services. The Company does this through developing, acquiring and joint venturing with appropriate organizations and businesses. Activities of E-Net Mortgage Corp. The Company's wholly owned subsidiary, E-NET MORTGAGE CORP, provides Mortgage loan brokerage services. E-NET MORTGAGE CORP. conducts business on the Internet and through conventional methods. It has at present three offices: San Jose, Costa Mesa and Las Vegas. These offices are in the process of being staffed. Revenue has begun in the San Jose office. Revenue has not yet been generated in the Las Vegas or Costa Mesa offices. E-NET MORTGAGE CORP has established a web site on the internet. At present it is informational only. It is the Company's intention to make the site interactive: potential clients will be able to complete applications on line, and will be able to check progress of their loan applications through the Web Site. Six additional satellite office facilities are planned during the remainder of this year. As a retail mortgage broker, E-Net Mortgage has developed relationships with many of the key mortgage lenders in the State of California. This subsidiary is in the process of putting similar relationships in place nationwide. With these relationships in place the Company will be able to offer a wide range of mortgage loan products and services. Activities of City Pacific International, U.S.A., Inc. Through City Pacific International U.S.A., Inc., the Company intends to provide products and interconnectivity to telecommunications companies by purchase of essential equipment and/or lease of communication lines or satellite pathways to enable the carriers to transport voice and date information. On the retail level, through joint ventures with other providers, this subsidiary will offer debit cards for corporate customers, calling card services, long distance services and international termination. This entity will also provide switch co-location and billing services. Activities of the Parent Company On July 1, 1999, the company entered into a joint venture with Genesis Residential Healthcare Inc. for the purpose of developing residential healthcare facilities under a limited partnership. Genesis will be providing in-depth planning and study for a highly innovative national program for the 21st century by creating well planned communities that provide the best services in healthcare, social, spiritual, and financial benefits at an affordable cost. The result of this cost-effective program will generate a substantial return on investment while still providing the best in senior care. 7 The company engaged Atlantic Union Distribution Ltd. as an investment-banking consultant to access $20,000,000 from foreign sources under an investment banking agreement. The purpose of this agreement is to finance the Genesis project. Funds will go to the Limited Partnership. Under this partnership agreement, the Company will act as the general partner and pledge its preferred stock as security for investors. The terms and conditions of this class of preferred stock have not yet been determined. Effective July 1, 1999 D. Weckstein & Co., Inc. was retained to raise funds through public or private offerings, of debt or equity securities. Under terms of this agreement D. Weckstein & Co., Inc. will also seek merger and acquisition candidates and serve as a financial consultant to The Company. The project is currently in the developmental stage; operations have not yet started. 8 PART II ITEM 1. LEGAL PROCEEDINGS - NONE ITEM 2. CHANGES IN SECURITIES - NONE ITEM 3. DEFAULTS UPON SENIOR SECURITIES - NONE ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - NONE ITEM 5. OTHER INFORMATION - NONE. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K EX-27 Financial Data Schedule 9 SIGNATURES Pursuant to the requirements of Section 12 of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. e-Net Financial Corporation. (Registrant) Dated: September 20, 1999 By: /s/Michael Roth Michael Roth President 10 e-Net Financial Corporation Exhibit Index to Quarterly Report on Form 10-QSB For the Quarter Ended July 31, 1999
EXHIBITS Page No. EX-27 Financial Data Schedule . . . . . . . . . . . . . . . . . . . .11
EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS APR-30-2000 MAY-01-1999 JUL-31-1999 2,774 0 94,289 0 0 118,884 42,025 3,268 406,911 403,886 0 0 0 4,500 35,851 406,911 0 14,551 0 0 111,994 0 2,695 (90,613) 0 (90,613) 0 0 0 (90,613) 0 0
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