Historical Overview from the 10-12G SEC filing on 11/17/99:
The Company initially focused its efforts on hosting web-sites as an Internet
service provider (ISP) and providing related services. Prior to 1999, management
determined it favorable to eliminate all ISP activity and focus efforts on
development of its Castnet.com(TM) web-site, which integrates motion picture,
television and theatrical talent casting and agent submission services for the
entertainment industry. When management eliminated all ISP activity, it also
abandoned the Company's then-most significant revenue stream, leaving it unable
to function without repeated infusions of capital. The Company, at present, has
significant debt from debt instruments, expenses, leases, and exorbitant
salaries paid, all of which were incurred under prior management.
In May, 1998, significant capital was obtained through the efforts of Mr. Paul
Kessler and Bristol Asset Management, LLC, which funded critical operations
through use of a convertible debt instrument; the Board of Directors and certain
key officers were permitted to fund the Corporation on the same (or pari passu)
basis as Bristol Asset Management. Mr. Kessler sought alliances with several
entertainment industry representatives and successfully elected Marion Dougherty
and Roland Joffe to the Company's Board of Directors. Mr. Kessler allowed the
Company's management to continue operations for some time after conversion of
the Bristol debt, but learned, after the first quarter of 1999, that key
employees did not meet objectives and were not operating the Company in a manner
which would allow it to prosper. Shortly thereafter, Mr. Kessler sought a
management team capable of analyzing the Corporation's difficulties, resolving
the morass of claims threatened or levied against it and restructuring
operations.
During June, 1999, Mr. Kessler engaged Mr. Mohamed Hadid as the Company's
Chairman of the Board of Directors. During the second and third quarters of
1999, Mr. Hadid and Mr. Kessler worked together on a plan to manage the
Company's immediate financial and business needs, including the infusion of
additional capital. Mr. Hadid sought strategic alliances with Jean Claude Van
Damme and Tony Cataldo and was successful in obtaining their commitments to
assist the Corporation with further development and expansion of its
Castnet.com(TM) services. Mr. Hadid and Mr. Kessler obtained a renewal of the
commitment of Thom Mount to serve on the Company's Board of Directors and as the
Company's liaison with the Producers Guild of America. Mr. Hadid also
internalized the Corporation's legal affairs, which were formerly administered
by a number of outside counsel at great expense to the company.
Third quarter efforts focused on restoration of financial integrity of the
corporation, management of the corporation's legal affairs, implementation of
financial and human resource controls, restructuring of Castnet.com(TM)
services, expansion of service areas, design, implementation, and rollout of new
services, formation of strategic alliances, review of year 2000 compliance
issues, design, evaluation, and programming of new relational databases, and
general programs calculated to increase sales revenue and market share. During
the period extending from July through October, 1999, several employees were
dismissed.
As the company entered the fourth quarter of 1999, efforts focused on
introduction of two new services, CastnetBabies.com and CastnetExtras.com, which
the Company believes will significantly increase its market share and allow for
growth of its current subscriber base. The company redesigned and reprogrammed
its Castnet.com(TM) "front page" and continued to develop a series of relational
databases with technological advances intended to increase efficiency and ease
of use of the services provided through Castnet.com.(TM) The company continues
to develop strategic alliances in domestic and foreign markets upon which it can
capitalize as it moves into the new millennium. |
