ISMR filed their 10QSB with the SEC today. I found the following section of the 10Q interesting.
On June 30, 1999, a letter of intent was signed by Internet Stock Market Resources and Delcor Industries, Inc. (Delcor) to acquire 100% of Delcor for cash and debt. The letter of intent has since expired, and Internet Stock Market Resources is not currently in discussions with Delcor.
GOING CONCERN The accompanying financial statements have been prepared assuming Internet Stock Market Resources will continue as a going concern. Internet Stock Market Resources has suffered recurring losses from operations and at February 29, 2000, had a working capital deficit and a deficiency in assets. These and other factors raise substantial doubt about Internet Stock Market Resources' ability to continue as a going concern, without additional capitalization. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
MANAGEMENT'S PLANS Management has decided to address Internet Stock Market Resources' financial situation by the following:
* The proceeds from sale of 133,333 additional shares of common stock for $54,960 as part of its foreign private placement, was received in July 1999.
* The note payable stockholder has been restructured and will not be satisfied until Internet Stock Market Resources has an acceptable working capital.
* On February 11, 2000, a public offering of the Company's securities was declared effective by the United States Securities and Exchange Commission; this offering provides for Internet Stock Market Resources to raise as much as approximately $8,333,330 from the general public.
* Purchase of the operating assets of at least two, possibly four, additional companies in the computer and Internet fields for a better vertical integration and to spread general and administrative costs over a broader base. The procurement of such assets would be significant to Internet Stock Market Resources but would be improbable if Internet Stock Market Resources is unable to fund the purchases.
* Increase promotional expenditures in an effort to increase revenues.
8. OTHER EVENTS
REVERSE STOCK SPLIT During the first half of calendar year 1999, the common stock of Internet Stock Market Resources experienced a significant decline in the trading per share price. In addition to the detrimental effect the lower trading price had to the shareholders, it diminished Internet Stock Market Resources' ability to make acquisitions or asset purchases using Internet Stock Market Resources' common stock. As a result of the above, effective on June 30, 1999, Internet Stock Market Resources reverse split its common stock at a ratio of one new share for each nine old shares issued and outstanding. Retroactive recognition of the reverse stock split has been given to all share amounts reported in the February 29, 2000 financial statements.
SALE OF COMMON STOCK On June 14, 1999, Internet Stock Market Resources sold the remaining 133,333 shares of its common stock from its private placement for $54,960; payment was received in July of 1999.
9. SUBSEQUENT EVENTS
Pursuant to a current public offering of the Company's securities (see Notes 5 and 7, above), from March 1 through March 31, 2000, the Company sold 83,000 Units of its securities, resulting in the issuance of 332,000 shares of the Company's Common Stock and 83,000 shares of its Class A Preferred Stock. Proceeds from these sales totaled $830,000. |
