Caveat Emptor! Let the buyer beware!
This is none other than Duro Enzyme (Thermo Tech) Folks.
Some Investors have got their money back from this outfit. Thanks to the British Columbia Securities Commission (BCSC).
Wonder who the new Perks are that will run this Entrap?
Also, who were the Honchos that took a hike?
Please read the following carefully and don’t get sucked in. This is more Dilution with a different company name.
Cayman
HOME WEB INC (HMWB.OB) = Duro Enzyme = Thermo Tech
November 20, 2000
Quarterly Report (SEC form 10QSB)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Form 10-QSB contains forward-looking statements. The words "anticipate", "believe", "expect", "plan", "intend", "estimate", "project", "could", "may", "foresee", and similar expressions identify forward-looking statements that involve risks and uncertainties.
You should not place undue reliance on forward- looking statements in this Form 10-QSB because of their inherent uncertainty.
The following discussion and analysis should be read in conjunction with the Financial Statements and Notes thereto and other financial information included in this Form 10-QSB that involve risks and uncertainties.
Actual results could differ materially from the results discussed in the forward-looking statements.
BUSINESS
On October 16, 2000, the Company conducted a voluntary share exchange with the shareholders of Duro Enzyme Products Inc. ("Duro Enzyme") to exchange all of the issued and outstanding shares of Duro Enzyme for 28,800,000 shares of Common Stock of the Company.
The effect of the share exchange was to transfer control of the Company to the shareholders of Duro Enzyme.
The Company effectively took control of all of the assets of Duro Enzyme, including its subsidiaries.
The majority of shares of the Company are now held by former shareholders of Duro Enzyme.
Following the share exchange, the Company has offices in both Canada and the United States and has changed the focus of its business from gourmet and specialty cheeses to recycling technology.
Its Canadian office is located adjacent to the site of its prototype DuroZyme Plant and Technology Development Center in Langley, British Columbia.
Duro Enzyme has the license to utilize and exploit the DuroZyme Plant and 3SF Technology anywhere in the world.
Through application of the technology, the Company can manufacture unique, stable and natural enzymes and specialty end products.
This technology solves a major environmental problem and provides the world with unique, stable and natural enzyme products.
Duro Enzyme has two subsidiaries:
Duro Enzyme Solutions Inc. ("Duro Solutions USA"), a Nevada corporation, holds all the licenses and rights to the 3SF Technology and service as the sole sublicensor of the technology. Duro Solutions USA provides technical support to the DuroZyme Plants, including quality control and assurance functions and training in the United States.
Duro Enzyme Solutions Inc. ("Duro Solutions Canada"), a Canadian corporation, is responsible for managing and operating the Company's Technology Development Center, for carrying out and managing the corporate research and new product development, for protection of intellectual property, and for bringing new ideas to commercialization, through research and development contracts with Thermo Enzyme Products Inc.
STATUS OF OPERATIONS
During the nine months ended September 30, 2000 the operations of the Company were suspended.
On October 16, 2000, the Company acquired Duro Enzyme Products Inc. The operations of the Company after October 16, 2000 consist entirely of the business of Duro Enzyme Products Inc.
PLAN OF OPERATIONS
With the acquisition of Duro Enzyme, the Company has shifted its business operations away from gourmet and specialty cheeses to recycling technologies.
The new business is in the early stages of operations and is focused on implementing and developing its business plan to meet its growth objectives.
The majority of the current resources of the Company will focus on developing the recycling technologies of Duro Enzyme.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Nine Months Ended September 30, 2000 Compared to the Nine Months Ended September 30, 1999.
This information has been derived from unaudited interim financial statements for the periods ended September 30, 2000 and 1999. Results of operations for any interim period are not necessarily indicative of results to be expected from the full fiscal year.
During the third quarter, there was no significant change in the Company's financial condition or operations. The Company had no sales revenue for the nine months ended September 30, 2000. During the third quarter of 1999, the Company did not have any sales revenue. The operations of the business had been suspended to allow management to review and refocus its direction.
As reported in the report on Form 8-K dated October 16, 2000 and filed November 1, 2000, the members of the Board of Directors and executive officers were replaced on September 29, 2000. The new directors and officers will focus their efforts on the newly acquired business of Duro Enzyme.
LIQUIDITY AND CAPITAL RESOURCES
No material commitments for capital expenditures were made during the third quarter and the expenditures during the fourth quarter are not presently determinable based on the change in management.
However, the Company believes it has sufficient cash resources to operate its business over the next twelve months. Depending on market acceptance of the Company's current business model, the Company will raise additional funds, either debt or equity, to augment future growth of the business.
Management believes that current cash balances and cash flows from operations, if any, will be sufficient to meet present growth strategies and related working capital and capital expenditure requirements. The current business plan proposes significant increases in spending when compared to historical expenditures.
Management may decide to raise additional capital through the issuance of additional debt or equity securities.
The Company plans to utilize a combination of internally generated funds from operations, potential debt and / or equity financings to fund its longer-term growth over a period of two to five years.
The availability of future financings will depend on market conditions. A portion of the funds will be needed to grow the business through acquisitions of other businesses.
The forecast of the period of time through which the Company's financial resources will be adequate to support operations is a forward-looking statement that involves risks and uncertainties. The actual funding requirements may differ materially from this as a result of a number of factors including plans to rapidly expand its new operations.
EFFECT OF FLUCTUATIONS IN FOREIGN EXCHANGE RATES
The Company's current operations are now located outside the United States. The functional currency for this foreign operation is the local currency. The carrying value of the Company's investments in Canada is subject to the risk of foreign currency fluctuations. Any revenues received from the Company's international operations will be subject to foreign exchange risk.
RISK FACTORS
THE COMPANY MAY REQUIRE ADDITIONAL EQUITY FINANCING, WHICH MAY NOT BE AVAILABLE AND MAY DILUTE THE OWNERSHIP INTERESTS OF INVESTORS.
The Company's ultimate success will depend on its ability to raise additional capital. No commitments to provide additional funds have been made by management or other shareholders. The Company has not investigated the availability, source or terms that might govern the acquisition of additional financing. When additional capital is needed, there is no assurance that funds will be available from any source or, if available, that they can be obtained on terms acceptable to the Company.
If not available, the Company's operations could be severely limited, and it may not be able to implement its business plan.
If equity financing is used to raise additional working capital, the ownership interests of existing shareholders may be diluted.
THE COMPANY'S OPERATING RESULTS ARE LIKELY TO FLUCTUATE SIGNIFICANTLY.
As a result of the Company's limited operating history following the acquisition of Duro Enzyme and the planned rapid expansion of its business operations, the Company's quarterly and annual revenues and operating results are likely to fluctuate from period to period.
For this reason, you should not rely on period-to-period comparisons of the Company's financial results as indications of future results. The Company's future operating results could fall below the expectations of public market analysts or investors and significantly reduce the market price of its common stock. Fluctuations in the Company's operating results will likely increase the volatility of its stock price.
THE COMPANY'S DEPENDENCE ON RELATIONSHIPS WITH BUSINESSES AND GOVERNMENTS OUTSIDE OF THE UNITED STATES INVOLVES RISKS.
The Company depends on its ability to establish and maintain successful relationships with businesses and governments located outside of the United States.
If the Company is unable to establish and maintain such relationships, it will not be able to implement the business plan in its current configuration, which will affect both its revenue stream and profit potential. In addition, the Company faces political sovereign risks of conducting international business, including risks of changing economic conditions, which may have a material adverse effect on its ability to expand its operations globally.
POTENTIAL BUSINESS COMBINATIONS COULD BE DIFFICULT TO INTEGRATE AND DISRUPT BUSINESS OPERATIONS.
Any acquisition of or business combination with another company could disrupt the Company's ongoing business, distract management and employees and increase the Company's expenses.
If another company acquires the Company, it could face difficulties in assimilating with that company's personnel and operations. Acquisitions also involve the need for integration into existing administration, services, marketing, and support efforts.
THE COMPANY DOES NOT ANTICIPATE PAYING DIVIDENDS TO COMMON SHAREHOLDERS IN THE FORESEEABLE FUTURE, WHICH MAKES INVESTMENT IN THE COMPANY SPECULATIVE OR RISKY.
The Company has not paid dividends on its common stock and does not anticipate paying dividends on its common stock in the foreseeable future.
The Board of Directors has sole authority to declare dividends payable to the Company's shareholders.
The fact that the Company has not and does not plan to pay dividends indicates that the Company must use all of its funds generated by operations for reinvestment in its operating activities and also emphasizes that the Company may not continue as a going concern. Investors also must evaluate an investment in the Company solely on the basis of anticipated capital gains. |
