February 12, 1999
JVWEB INC (JVWB)
Quarterly Report (SEC form 10QSB)
MANAGEMENT'S DISCUSSION AND ANALYSIS
SUMMARY
In general, JVWeb is structured to pursue two main business activities: 1) the joint venturing of
Brands that have strong on-line commerce potential, and 2) the building of a strong fee for service
division to deepen our capabilities. In this past quarter, management refined its focus on building a
strong fee for service division. A significant percentage of the resources of the company were
devoted to developing a well-defined marketing campaign around very specific consulting services
that emphasized the strengths of the company. At the present time, JVWEb has no significant
contracts signed as a result of these efforts. Management anticipates seeing the benefits of this effort
in the quarter ending March 31, 1999.
We have established three profit centers within our fee for service division. The first is a web-hosting
service, based in Phoenix, Arizona. The second is the web development capabilities of Lernout &
Hauspie that we market in the U.S. The third is the strategic internet services consulting that is the
core expertise of JVWEb.
Among the resources that have been established to initiate the marketing of a fee for service division
are the previously announced web-hosting facility (co-located with GTE), as well as the offices being
established in New York and San Francisco. The company continues to build on its relationship with
Lernout & Hauspie (L&H). Management, for example, is exploring opportunities to leverage the
capabilities of L&H in the U.S., while offering its web-hosting and other services to L&H in Europe.
We are hopeful that these efforts will produce significant revenue growth for us. However, at this
time, we have not signed any significant contracts as a result of these efforts.
INCOME STATEMENT
Revenue. Management had previously announced its first web-hosting customer at the end of this
quarter. Revenue for web-hosting will initiate in January, 1999, and we are hopeful it will grow as
new customers are added. Management also is hopeful consulting revenue will initiate in the quarter
ending March 31, 1999.
General and Administrative Expenses. Out of the total G&A expenditures for the quarter, 44%, or
$55,000 was due to the write-off of accumulated expenditures related to the aborted acquisition of
Wall Street Whispers. Management is continuing to have discussions with the owners of Whispers
for a joint marketing relationship around the Whispers newsletter, however, no agreement has been
reached at this time on that possibility.
A material percentage of the remaining G&A expenditures represented travel and organizational
costs associated with the establishment of a presence in New York and California, as well as the
pursuit of development with L&H in their Ipswich (London) office. Additional expenditures were
incurred in establishing the web hosting capability in Phoenix, Arizona.
Remaining G&A expenditures were related to the costs of being a public company, including the
associated costs of maintaining a fully reporting status with the
S.E.C.
BALANCE SHEET
Cash. The principal shareholder and related parties, continue to fund the minimal operations of the
company on an as-needed basis.
Inventory. Inventory of $8,946 represents merchandise related to the Dadandme and Frogletz
product lines. Management continues to explore relationships and joint venture opportunities that will
support a marketing campaign to build these on-line brands. At this time, no such talks are in serious
discussion stages.
Accounts Payable. As of February 15, 1999, a majority of the costs, which were associated with
the establishment of JVWeb as a public company, have been paid.
Notes Payable to Related Parties. We anticipate paying off these notes in 1999.
Recent Filings: Jun 1998 (Qtrly Rpt) | Sep 1998 (Annual Rpt) | Nov 1998 (Qtrly Rpt) | Feb 1999 (Qtrly Rpt)
More filings for JVWB available from EDGAR Online
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