UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-QSB

(Mark One)

(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2001

 

Commission File Number: 0-25463

 

NETWORK INVESTOR COMMUNICATIONS INC.

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(Name of Small Business Issuer in its Charter)

Nevada 88-0367792

--------------------------- -------------------

(State or other jurisdiction of (I.R.S. Employer

incorporation or organization) Identification No.)

4905 Pine Springs Drive, Reno, Nevada 89509

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(Address of principal executive offices)

Issuer's telephone number, including area code: (775) 852-9100

 

Check whether the issuer (1) filed all reports required

to be filed by Section 13 or 15(d) of the Exchange Act during the

past 12 months (or for such shorter period that the registrant

was required to file such reports), and (2) has been subject to

such filing requirements during the past 90 days. Yes (x) No ( ).

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APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's

classes of common equity, as of the latest practicable date:

As of May 15, 2001, 1,500,000 shares of common stock were outstanding.

Transitional Small Business Disclosure Format

(Check one): Yes ( ) No (X)

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NETWORK INVESTOR COMMUNICATIONS INC.

TABLE OF CONTENTS

Page

----

PART I - FINANCIAL INFORMATION............................................. 4

Item 1. Financial Statements

Condensed Balance Sheets as of March 31, 2001 and

June 30, 2000................................................... 4

Condensed Statements of Operations for the Nine and Three

Months Ended March 31, 2001 and 2000............................ 5

Condensed Statements of Cash Flows for the Nine and Three

Months Ended March 31, 2000 and 2000............................ 6

Condensed Statements of Stockholder's Equity (Deficit)

for the Nine Months Ended March 31, 2001 and

July 1, 1999 through June 30, 2000.............................. 7

Notes to Condensed Financial Statements......................... 8

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

And Results Of Operations....................................... 8

PART II - OTHER INFORMATION................................................11

Item 5. Other Information................................................ 11

SIGNATURES.................................................................11

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NETWORK INVESTOR COMMUNICATIONS INC.

BALANCE SHEETS

MARCH 31, 2001 AND JUNE 30, 2000

(Unaudited)

ASSETS

<TABLE>

<CAPTION>

March 31, June 30,

2001 2000

------------- ------------

<S> <C> <C>

CURRENT ASSETS

Cash $ - $ -

------------- ------------

Total Current Assets - -

------------- ------------

TOTAL ASSETS $ - $ -

============= ============

LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT)

CURRENT LIABILITIES:

Accounts payable $ 7,194 $ -

Payroll and other accrued liabilities 8,500 7,261

------------- ------------

Total Current Liabilities 15,694 7,261

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STOCKHOLDERS' EQUITY/(DEFICIT):

Capital stock, $.001 par value;

50,000,000 shares authorized; 1,500,000

shares issued and outstanding 1,500 1,500

Additional paid-in capital 322,567 321,067

Retained earnings (deficit) (339,761) (329,828)

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Total Stockholders' Equity(Deficit) (15,694) (7,261)

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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ - $ -

============= ============

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NETWORK INVESTOR COMMUNICATIONS INC.

STATEMENT OF OPERATIONS

(Unaudited)

<TABLE>

<CAPTION>

For the For the For the For the

Nine Months Nine Months Three Months Three Months

Ended Ended Ended Ended

March 31, March 31, March 31, March 31,

2001 2000 2001 2000

------------ ------------ ------------ ------------

<S> <C> <C> <C> <C>

SALES $ - $ 40,984 $ - $ -

------------ ------------ ------------ ------------

EXPENSES:

General and administrative 9,933 69,143 1,000 400

Depreciation and amortization - 2,643 - -

------------ ------------ ------------ ------------

TOTAL OPERATING EXPENSES 9,933 71,786 1,000 400

------------ ------------ ------------ ------------

Net (loss) before other items (9,933) (30,802) (1,000) (400)

OTHER INCOME (EXPENSE)

Interest expense - 8,942 - -

------------ ------------ ------------ ------------

NET (LOSS) BEFORE INCOME TAXES (9,933) (39,744) (1,000) (400)

PROVISIONS FOR INCOME TAXES - - - -

------------ ------------ ------------ ------------

NET INCOME/(LOSS) $ (9,933) $ (39,744) $ (1,000) $ (400)

============ ============ ============ ============

EARNINGS (LOSS) PER SHARE $ (0.01) $ (0.03) $ 0.00 $ 0.00

============ ============ ============ ============

WEIGHTED AVERAGE SHARES

OUTSTANDING 1,500,000 1,500,000 1,500,000 1,500,000

============ ============ ============ ============

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NETWORK INVESTOR COMMUNICATIONS INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

<TABLE>

<CAPTION>

For the For the For the For the

Nine Months Nine Months Three Months Three Months

Ended Ended Ended Ended

March 31, March 31, March 31, March 31,

2001 2000 2001 2000

------------ ------------ ------------ ------------

<S> <C> <C> <C> <C>

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss $ (9,933) $ (39,744) $ (1,000) $ (400)

Adjustments to reconcile net loss to

net cash used in operating activities:

Depreciation and amortization - 2,643 - -

Contribution of additional paid-in capital 1,500 - - -

Changes in assets and liabilities:

(Increase) decrease in

accounts receivable - 181 - -

(Increase) decrease in employee advances - (2,026) - -

Increase in accounts payable

and accrued Liabilities 8,433 33,577 1,000 -

------------ ------------ ------------ ------------

Net cash used in operating activities - (5,369) - (400)

------------ ------------ ------------ ------------

CASH FLOWS FROM INVESTING ACTIVITIES:

Cash assumed by officer and director - (66) - -

------------ ------------ ------------ ------------

Net cash used in investing activities - (66) - -

------------ ------------ ------------ ------------

CASH FLOWS FROM FINANCING ACTIVITIES:

Shareholder loan-net - 3,965 - 400

------------ ------------ ------------ ------------

Net cash provided by financing activities - 3,965 - 400

------------ ------------ ------------ ------------

Net increase (decrease) in Cash - (1,470) - -

CASH AT BEGINNING PERIOD $ - $ 1,470 $ - $ -

============ ============ ============ ============

CASH AT END OF PERIOD $ - $ - $ - $ -

============ ============ ============ ============

SUPPLEMENTAL CASH FLOW INFORMATION:

Interest expense $ - $ 8,942 $ - $ -

============ ============ ============ ============

SUPPLEMENTAL NON-MONETARY TRANSACTION $ - $ 8,942 $ - $ -

============ ============ ============ ============

Officer and Director

assets and liabilities assumptions

and debt forgiveness $ - $ 217,532 $ - $ -

============ ============ ============ ============

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NETWORK INVESTOR COMMUNICATIONS INC.

STATEMENT OF STOCKHOLDERS' EQUITY/(DEFICIT)

FOR THE NINE MONTHS ENDED MARCH 31, 2001

AND JULY 1, 1999 THROUGH JUNE 30, 2000

(Unaudited)

<TABLE>

<CAPTION>

Capital Stock Accumulated

--------------------------- Deficit Total

Shares Amount

------------ ------------ ------------ ------------

<S> <C> <C> <C> <C>

BALANCE, July 1, 1999 1,500,000 $ 104,301 $ (294,150) $ (189,849)

Contribution of paid-in capital - 218,266 - 218,266

Net loss for the year ended

June 30, 2000 - - (35,678) (35,678)

---------- ---------- ------------ -----------

BALANCE, June 30, 2000 1,500,000 322,567 (329,828) (7,261)

Contribution of paid-in capital - 1,500 - 1,500

Net loss for the nine months

ended March 31, 2001 - - (9,933) (9,933)

---------- ---------- ------------ -----------

BALANCE, March 31, 2001 1,500,000 $ 324,067 $ (339,761) $ (15,694)

========== ========== ============ ===========

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NETWORK INVESTOR COMMUNICATIONS INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2000

(UNAUDITED)

1. The unaudited condensed financial statements printed herein have

been prepared in accordance with the instructions to Form 10-QSB and do

not include all of the information and disclosures required by generally

accepted accounting principles. Therefore, these financial statements

should be read in conjunction with the financial statements and related

footnotes included in the Company's Form 1O-KSB for the year ended

June 30, 2000. These financial statements reflect all adjustments that

are, in the opinion of management, necessary to fairly state the results

for the interim periods reported.

2. The results of operations for the three months ended

March 31, 2001 are not necessarily indicative of the results to be

expected for the full year.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

The character and holdings of the Company has changed substantially

since the preceding fiscal year. During the second quarter of

the prior fiscal year the Company had sought to expand its business

by obtaining and securing clients in the investor relations market.

This was the primary business and focus of the Company. However,

due to the lack of revenues and the costs associated with the

operation of the Company, the Company ceased operations in the

second quarter of the Company's prior fiscal year. The Company

transferred all of the assets including fixed assets, customer

contracts and other intangibles for the moneys owed to the principal

officer and director of the Company, plus the assumption of any

other liabilities and commitments the Company had contracted for in its

operations. The resulting effect was a $218,266 contribution of

capital from the disposition of such assets. The readers of the

current unaudited statements are referred to the Company's Annual

Report as filed for the fiscal year ended June 30, 2000, for a more

in-depth view of the Company's financial position, results of

operations and changes in cash flows. Accordingly, management's

discussion as set forth below focuses primarily on the quarter

ended March 31, 2001.

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LIQUIDITY

During the three months ended March 31, 2001, the Company's

working capital decreased by $1,000. This was due to certain

legal and administrative costs incurred to maintain its

books and records and other costs to seek a potential

acquisition of an operating entity. Other than these costs

the Company's working capital was substantially unchanged. This

was due to the ceasing of operations and the transfer of all

assets for the debts of the Company to the principal officer and

director of the Company in the second quarter of the Company's

prior fiscal year and the ceasing of operations. The Company

does not currently have sufficient capital in its accounts,

nor sufficient firm commitments for capital to assure its

ability to meet its current obligations or to continue its

planned operations. The Company is continuing to pursue working

capital and additional revenue through the seeking of a new

business activity for the Company, but there is no assurance

that any of the planned activities will be successful.

The Company had entered into an agreement to provide working capital

for the Company as further described in Part II, Item 5.

CAPITAL RESOURCES

As a result of its limited liquidity, the Company has limited access

to additional capital resources. The Company does not have

the capital to totally fund the obligations that have matured

or debts that remain currently payable or other debts incurred during

the most recent fiscal quarter.

The principle officer and director has committed to lending

any monies needed to continue operations until a new business

opportunity is obtained.

The Company was previously funded by the same officer and director

of the Company. This was by the deferral of the officer's

compensation and the lending of certain monies to the Company for

ten percent demand notes. These debts were offset against the

capital assets transferred to the principle officer and director

of the Company.

The Company had received additional capital through the expansion

of vendor financing during the quarter prior to the ceasing of

operations.

The officer and director of the Company has limited capital that

he can lend to the Company to meet its current obligations and

fund operating losses. The management of the Company is seeking

addition private financing from certain outside parties to continue

to pursue any future business activities of the Company. Though the

obtaining of the additional capital is not guaranteed, the management

of the Company believes it will be able to obtain the capital required

to meet its current obligations and pursue any future business activities.

The Company had entered into an agreement to provide working capital

For the Company as further described in Part II, Item 5.

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OPERATIONS

In the previous year ended June 30, 2000, the Company had been

seeking new clients and long term contracts with existing clients.

During the quarter ended December 31, 1999, the Company

ceased its prior operations, was released from all of its debt and

obligations for the transfer of all the assets of the Company and

is seeking a new operation for the Company. The Company has not

obtained or identified a new operation during the current quarter.

Until such time as the Company is able to obtain the revenues needed

from its operations to meet its obligations, the Company will be

dependent upon sources other than operating revenues to meet its

operating and capital needs. Operating revenues may never satisfy

these needs.

The Company believes it will obtain a new business activity

to generate the revenues needed to continue its business

plans. Until then, the Company will need additional capital other

than that provided through its operations.

YEAR 2000 COMPUTER PROBLEM

The Year 2000, or Y2K, problem concerns potential failure of certain

computer software to correctly process information because of the

software's inability to calculate dates. As the Company is service

based, the Company does not depend on inventory or the sale of goods

and did not anticipate any Y2K problems. The Company's computer

system is PC based and has been updated with the latest software.

Additionally, the Company had all of its material saved on

alternative media from that of the PC's hard drives in case of a

computer problem.

Even though the Company is in the Year 2000, speculation has

been made that other problems could occur during the year.

However, based on the above, the Company does not expect to have

any Y2K problems.

8-K DISCLOSURE

NONE

FORWARD-LOOKING STATEMENTS

The statements in this Form 10-QSB that are not historical facts or

statements of current status are forward-looking statements (as

defined in the Private Securities Litigation Reform Act of 1995)

that involve risks and uncertainties. Actual results may differ

materially.

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PART II - OTHER INFORMATION

Item 5. OTHER INFORMATION

The agreement with Mr. Frank DeLape was terminated during the

quarter ended December 31, 2000 by the Board of Directors,

as previously entered into.

The Company at this point continues to search for a business

opportunity that will provide profitable operations, liquidity,

and working capital for the Company.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the

Securities Exchange Act of 1934, the Registrant has duly caused

this report to be signed on its behalf by the undersigned,

thereunto duly authorized.

NETWORK INVESTOR COMMUNICATIONS INC.

Date: May 21, 2001

By: /S/ ROBERT R. DELLER

----------------

Robert R. Deller

President and Director

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