Sources of Opportunities From 10-12G SEC Filing on 11/17/99:
The Company does not currently have any material commitments for capital
expenditures other than a line of credit restricted for expansion and future
growth. The Company anticipates, however, that it will experience a substantial
increase in capital expenditures and lease commitments consistent with its
anticipated growth in operations and infrastructure, including various capital
expenditures associated with the expansion of operations into foreign markets.
The Entertainment Internet, Inc. anticipates that it will continue to experience
significant growth in its operating expenses for the foreseeable future and that
these expenses will be a material use of cash resources. The Company believes
that its existing cash will not be sufficient to meet its anticipated cash needs
for working capital and capital expenditures for the coming months.
The Company derives revenue in two ways: Through its Castnet.com(TM) web-sites,
the company charges actors an annual fee for inclusion of photographs, resumes,
and other career-related material on its Internet-based service; the company
also derives revenue from advertisements placed on the Castnet.com(TM) web-site.
The company is currently evaluating plans to isolate several services offered,
such as print communications routing and computer technical support, and to
transform them into profit centers for the company.
The successful execution of the Company's initial interactive system,
Castnet.com,(TM) brought the Company a strong cash flow system which charges an
all-inclusive annual fee for participation in EINI's proprietary database. The
Castnet.com(TM) product is currently being used by casting directors and talent
agents in Hollywood to submit actors and actresses for a wide variety of roles
in movies and television. The Castnet.com(TM) service is set up so that it may
be tailored for the actor/actress, through inclusion of a variety of elements
including, but not limited to, audio tracks and video segments. The Company
feels its real-time submission and review services represent the future of
casting and believes the results of its actions are rapidly being felt in the
industry.
The Castnet.com(TM) system allows aspiring actors, actors, agents and casting
directors to communicate with each other on a confidential basis on a moment's
notice. An enormously important part of the Castnet.com(TM) environment is the
efficient facilitation of unrecognized talent.
Further, the Company has established industry recognition by acting as the
Actor's Advocate. Two industry unions have praised the Company for its efforts
in expanding the visibility of the personnel portion of the industry. The
Castnet.com(TM) system has further refinements and offerings planned, including,
but not limited to, integrated Castnet.com(TM) sites and services for managers,
producers, production crew, location scouts, property owners, and voice talent.
By expanding services to all strata of the industry, the Company feels it will
impact the industry in ways which will greatly expand revenues. The Company
feels that the design, depth and sophistication of its products provides it with
the ability to expand into all areas of the entertainment industry.
In addition to this market penetration, the Company will seek a potential
business opportunity from all known sources, but will rely principally on
personal contacts of its officers and directors as well as indirect associations
between them and other business and professional people. It is not presently
anticipated that the Company will engage professional firms specializing in
business acquisitions or reorganizations. Management, while not especially
experienced in matters relating to the new business of the Company, will rely
upon their own efforts and, to a much lesser extent, the efforts of the
Company's shareholders, in accomplishing the business purposes of the Company.
It is not anticipated that any outside consultants or advisors, other than the
Company's legal counsel and accountants, will be utilized by the Company to
effectuate its business purposes described herein. However, if the Company does
retain such an outside consultant or advisor, any cash fee earned by such party
will need to be paid by the prospective merger/acquisition candidate, as the
Company has no cash assets with which to pay such obligation. There have been no
discussions, understandings, contract or agreements with any outside consultants
and none are anticipated in the future. In the past, the Company's management
has never used outside consultants or advisors in connection with a merger or
acquisition.
As is customary in the industry, the Company may pay a finder's fee for locating
an acquisition prospect. If any such fee is paid, it will be approved by the
Company's Board of Directors and will be in accordance with the industry
standards. Such fees are customarily between 1% and 5% of the size of the
transaction, based upon a sliding scale of the amount involved. Such fees are
typically in the range of 5% on a $1,000,000 transaction ratably down to 1% in a
$4,000,000 or more transaction. Management has adopted a policy that such a
finder's fee or real estate brokerage fee could, in certain circumstances, be
paid to any employee, officer, director or 5% shareholder of the Company, if
such person plays a material role in bringing a transaction to the Company.
The Company will not have sufficient funds to undertake any significant
development, marketing, and manufacturing of any product which may be acquired.
Accordingly, if it acquires the rights to a product, rather than entering into a
merger or acquisition, it most likely would need to seek debt or equity
financing or obtain funding from third parties, in exchange for which the
Company would probably be required to give up a substantial portion of its
interest in any acquired product. There is no assurance that the Company will be
able either to obtain additional financing or to interest third parties in
providing funding for the further development, marketing and manufacturing of
any products acquired. |
