22-Nov-2000 Old NESS Press Release Management`s Discussions: 10QSB, NESS ENERGY INTERNATIONAL INC
WEDNESDAY, NOVEMBER 22, 2000 5:21 PM
- Edgar Online
(Edgar Online via COMTEX)
Company Name: NESS ENERGY INTERNATIONAL INC
(SYMBOL:NESS)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
This Quarterly Report on Form 10-QSB includes "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), which can be identified by the use of forward-looking terminology such as, "may", "believe", "expect", "intend", "anticipate", "estimate" or "continue" or the negative thereof or other variations thereon or comparable terminology. All statements other than statements of historical fact included in this Form 10-QSB, are forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Important factors with respect to any such forward-looking statements, including certain risks and uncertainties that could cause actual results to differ materially from the Company's expectations ("Cautionary Statements") are disclosed in this Form 10-QSB, including, without limitation, in conjunction with the forward-looking statements included in this Form 10-QSB, and in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1999. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, the newness of the Company, the need for additional capital and additional financing, government regulation and the ability of the Company to meet its stated business goals. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements.
The following discussion of the results of operations and financial condition should be read in conjunction with the Financial Statements and related Notes thereto included herein.
Liquidity and Capital Resources
In the year 2000, the Company has utilized funds from common stock sales in 1999 and has borrowed $415,000 to use for operations. During the developmental stage, the Company is dependent on stock sales, direct investment in the wells and acquiring loans to fund operations.
Results of Operations
Comparison of the nine-month period ended September 30, 1999 and September 30, 2000.
Revenues. Operating revenues for nine month period ended September 30, 1999 were $15,309 with an operating loss of 87,263.
Operating revenues for nine month period ended September 30, 2000 were $17,320 a 13% increase from 1999, with an operating loss of $945, 859. The 13% increase in revenues over 1999 is attributed to higher prices for natural gas.
Costs and Expenses. Costs and expenses for the nine month period ended September 30, 2000 increased by $8,032 or 65% to $20,413 as compared to $12,381 for the corresponding period ended September 30, 1999. This was primarily due to higher equipment depreciation expense. General and Administrative Costs in 2000 increased by 945% to $942,766 as compared to $90,191 for the same nine month period in 1999 due primarily to costs associated with the Israeli project.
Net Income (Loss). The Company had a net loss for the three month period ended September 30, 2000 of $392,483 compared to net loss of $41, 945 for the same period in 1999, representing ($.01) and ($.00) per share, respectively.
Recent Accounting Pronouncements
In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard No. 133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS 133). This statement standardized the accounting for derivative instruments, including certain derivative instruments embedded in other contracts, requiring that an entity recognize those items as assets or liabilities in the statement of financial position and measure them at fair value. The statement generally provides for matching the timing of gain or loss recognition on the hedging instrument with the recognition of (a) the changes in fair value of the hedged assets or liabilities that are attributable to the hedged risk, or (b) the earnings effect of the hedged transaction. The statement is effective for all fiscal quarters of all fiscal years beginning after June 15, 1999, with earlier application encouraged, and shall be applied retroactively to financial statements of prior periods. Adoption of SFAS 133 had no effect on the Company's financial statements.
(c) 1995-1999 Cybernet Data Systems, Inc. All Rights Reserved.
Received by Edgar Online: Nov. 22, 2000
CIK Code: 0000353634
SEC Accession Number: 0001010549-00-000655
bigcharts.com |
