FDKP earnings and future revenues.
86% of the outstanding shares is owned by an insider.20% to 30% increase in revenues for 2001.
Finders Keepers, Inc.
Results of Operation
Shares Beneficially Percentage of Shares
Name and Address Owned Outstanding
------------------ --------------------- ----------------------
Devorah Zirkind1 70,000,000 86.55%
------------------ --------------------- ----------------------
Total ownership by our 70,000,000 86.55%
officers and directors
(one individual)
We continue to experience approximately 9,000 to 11,000 hits on our website on a monthly basis, however, our main focus is on locating lost, unclaimed, or escheated property and then locating the rightful owner of the property ourselves. This is where we believe we will experience the greatest revenue growth. It is for this reason that we enlisted the services of TeleMasters, Inc. on November 27, 2000. As discussed in Item 1. Distribution, Marketing and Customer Relations, this relationship will allows us to increase our footprint in this market.
Our revenues for the year ended December 31, 2000 totalled $107,782. This represents an increase of $103,490 from the year ended December 31, 1999, when we reported revenue of $4,292. All revenue is attributable to the realization of the collection of our fees related to the collection of claims previously filed with various state agencies. As stated previously, it takes anywhere from 3 months to 2 years to complete the collection process, we are seeing our revenues increase as many of our earlier claims begin to close. We expect to increase our claims for the year 2001 by 20% to 30% from year 2000 levels. This percentage may even be greater depending upon the success of our arrangement with TeleMasters, Inc.
General and administrative (G&A) expenses for the year ended December 31, 2000 were $117,087 compared to $73,142 for the year ended December 31, 1999. Although this represents an increase of 60%,the $73,142 represents G&A expenses from inception (May 28, 1999) to December 31, 1999 or approximately seven months. Annualized these expenses come to $125,386, or roughly equal to the $117,087 of G&A expenses incurred
/11/
in 2000.
Future Business
Due to the length of time to realize claims, Finders Keepers believes that prudent management of its current cash flow is necessary to ensure coverage of salaries and expenses. Management believes that this can be done without borrowing money or issuing more securities which would dilute shareholder value. It is our intent to continue our efforts to reduce variable overhead expenses in response to the significant lagtime we experience upon realizing claimed properties. Though we may deem it necessary in the future to seek to raise additional funds in a private placement or obtain debt financing.
Statement Of Operations
Year Ended December 31, 2000, and the Period from Inception (May 28, 1999) to December 31, 1999
2000 1999
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Revenue, net $ 107,782 $ 4,292
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Expenses:
General and administrative 117,087 73,142
Depreciation 204 -
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Total expenses 117,291 73,142
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Operating (loss) (9,509) (68,850)
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Other income
Interest income 46 150
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Net (loss) $ (9,643) $ (68,700)
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Weighted average number of
common shares outstanding - basic and fully
diluted 80,880,912 76,089,318
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Net (loss) per share - basic and fully diluted $ (0.00) $ (0.00)
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Liquidity and Capital Resources
We have achieved operating profitability as of December 31, 2000. It is anticipated that we will realize pending claims during the next 12 months although we cannot guarantee with any certainty the resolution of these claims. We believe that we will be able to continue existing operations for the next 12 to 24 months based solely on our projected revenues, however, the use of bank, personal, or other loans obtained through private and or public sources by Finders Keepers may be necessary to offset capital requirements in the next 12 months. From inception through the second quarter of the year 2000, we have financed our cash flow requirements through the issuance of common stock. During our normal course of business, we may experience net negative cash flows from operations caused by the pending receipt of sales revenues. Further, we may be required to obtain additional financing to fund operations through further common stock offerings and bank borrowings, to the extent available, or to obtain additional financing to the extent necessary to augment our working capital. |
