IS THIS THE SAME GERALD YOUNG OF OTCDIGEST.COM? IF IT IS AFRAYEM YOU SURLY WILL ROT IN HELL SOME DAY.
1ST NET TECHNOLOGIES, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1998 AND 1997
In 1998, the Company had sales to related parties amounting to $622,156. In
addition, the accounts receivable balance of $134,467 is all due from related
parties, with approximately $119,000 attributable to SSP, which was acquired
subsequent to December 31, 1998. (See also Note 2).
The Company issued 265,000 shares of common stock to employees during 1998
as bonuses for the 1997 year. Since the stock is restricted for a one year
period and there is no established market for the shares, the issuance of shares
was recorded at par for a total of $265. The Company issued 595,300 additional
shares of common stock to management and key employees during 1999, as
incentives and bonuses for the 1998 year. These shares issued are likewise
restricted for a one year period, with no established market for trading and,
accordingly, the issuance of such shares were recorded at par.
EI is the largest percentage owner in the Company (see Note 4) and also
owns a majority interest in Probook, Inc. EI also has 1,500,000 options in the
stock of Mariah and the sole shareholder of EI serves on the board of Mariah.
The Company and/or EI also has officers or directors in common with various
other entities.
In 1998, sales to one customer, SSP, which was subsequently acquired,
accounted for approximately 42% of the Company's total revenues. In 1997, sales
to one customer amounted to 53% of the Company's total revenues. Further, in
1998 and 1997, approximately 31% and 67%, respectively, of the Company's revenue
was in the form of common stock received as payment for services. During the
year ended December 31, 1997, the Company received approximately $109,243 in
cash for the sale of the securities. The excess of the proceeds received for the
stock, over the Company's recognized revenue originally recorded for such stock,
totaled $13,875, and is included as a gain in sale of marketable securities.
During the year ended December 31, 1998, the Company received approximately
$410,140 in cash for the sale of securities. The excess of proceeds received for
the stock over the Company's recognized revenue for which stock was the payment,
totaled $28,177 and is listed separately under revenues on the statement of
operations.
(4) CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following is a list of the officers and directors of the Company, along
with all other shareholders owning directly or indirectly at least 5% of the
Company's shares as of December 31, 1998. There were no salaries greater than
$100,000 paid to any one employee during the 1998 year.
SHAREHOLDER/POSITION/TITLE SHARES HELD OWNERSHIP
-------------------------- ----------- ---------
Gregory D. Writer Jr. -- CEO and Chairman of the Board...... -0- 0.0%
Clifford J. Smith -- President.............................. 50,000 1.4
Grey Mare, Inc./Mary E. Writer -- Secretary and Treasurer... 163,000 4.6
Jeffrey Chatfield -- V.P. Investor Relations................ -0- 0.0
Gerald Young -- V.P. Sales and Marketing.................... -0- 0.0
Alex Ramia -- V.P. Network and Systems Operations........... -0- 0.0
EI/James H. Watson Jr. -- Director.......................... 1,600,000 45.5
Cede & Co. -- Investor...................................... 778,200 22.2
Mark Lair -- Investor....................................... 400,000 11.4
--------- -----
Total listed...................................... 2,991,200 85.1%
========= =====
Total shares authorized, issued and outstanding... 3,513,000 100.0%
========= =====
=====================================
Cybertouts often have a way of stretching the truth
DON BAUDER
02/14/99
The San Diego Union-Tribune
Page I-2
(Copyright 1999)
Late in December, the online tout service, www.superstockpick.com, boasted that its best selection of the year was Virtual Gaming Technologies of San Diego.
The online Internet tout had recommended Virtual's stock at $3.50 in March, and it had soared to $11 in June. In late December, however, superstockpick.com (from now on to be called SSP.com) did not point out that at that very time, the stock was down to $3.75.
SSP.com had a juicy motive to make its original recommendation highly bullish: Virtual Gaming, which operates online gambling, had forked over 36,000 shares of its own common stock to SSP.com in return for the plug. "We have no relationship with them (SSP.com) now," says Bruce Merati, chief financial officer of Virtual Gaming. "We are now hosting our own Web site." Merati thinks it was somewhat misleading for SSP.com to boast of its March pick in December without mentioning that the stock had come back down. SSP.com is one of many similar operations in the world of cybertouts, or Web sites that promote shares of companies in return for some of those shares and other considerations.
SSP.com's parent, 1st Net Technologies, is based in Rancho Bernardo and has three other online newsletters. Like many of the stocks it recommends, 1st Net is on the Bulletin Board. The stock has climbed from $1.50 in late December to the recent $4 level.
The Denver company that publishes SSP.com merged into 1st Net last year. The chief executive of 1st Net, Gregory D. Writer Jr., who spent most of his career in the Denver speculative stock snake pit, has quite a record. It's available from the National Association of Securities Dealers, or NASD, and the Colorado Division of Securities.
Among many things, Writer was barred from the securities business by the NASD in 1990 for quarterbacking the upward manipulation of a stock, selling stocks through unregistered accounts, failing to inform customers of material facts and making "false, inaccurate and misleading
statements to the staff of the NASD," according to the NASD. Writer was censured and fined $200,000 as well.
Three years later, despite that ban, Writer was prohibited from any further solicitation or violation of Idaho securities laws.
Before the 1990 ban, Writer had been suspended by the NASD for distributing a misleading fund solicitation letter and, earlier, for failing to keep accurate books and records.
His license was also revoked in Kansas, and he was slapped by the NASD for advertising a brokerage while the application was pending.
Before that, he had pleaded guilty to charges of possession of marijuana. According to Colorado records, he was growing plants on his balcony in 1981.
Writer and his wife, Mary E. Writer, who is 1st Net's registered agent, filed for Chapter 7 bankruptcy in Colorado Springs in 1987.
1st Net's attorney, R. Blair Krueger II, correctly points out that SSP.com reveals its financial ties to companies it promotes and was not included in the Securities and Exchange Commission's enforcement actions against cybertouts last fall.
Gregory Writer denies that he made false statements to the NASD and manipulated the stock in the incident that got him banned. He says the Idaho misadventure actually happened before he forfeited his NASD license. He also denies falsifying loan information and making excessive markups that got him in trouble in Kansas. He blames the poor bookkeeping on an employee.
And, he says he no longer smokes marijuana and regrets the incident, adding that the bankruptcy was a result of medical bills.
How does 1st Net rake in all those shares of stocks it plugs? For enthusing that Engineering Power Systems Group, a builder of barge-mounted power plants, is working on "the most exciting and far-reaching business project of any we have ever encountered," SSP.com received 150,000 options on the stock, exercisable at $1 and $2. For lauding the "unparalleled" management of AXYN, a Y2K fix-it company, SSP.com got 16,000 shares. For plugging LDDI, a reseller of long distance service, the cybertout got 200,000 shares.
Last month, SSP.com gave a rave review to San Diego-based Laforza Automobiles, which assembles an Italian sports car here, and is selling four cars a month for $45,000 to $60,000, says president David Hops. SSP.com got 300,000 shares of Laforza at 50 cents a share and five Laforza cars. It's also getting $5,000 a month. "They raised $700,000 for us, did our Web page, handled our investor relations. We have a great relationship," Hops says..
Gregory Writer "told me up-front about the bad times in Denver," Hops says. In the bullish reports, SSP.com takes pains to sprinkle a few caveats among the plaudits. "They package their featured stocks to make them look like independent recommendations," says columnist Susan
Antilla of Bloomberg News.
She hoots at claims that followers of the reports can make 100 to 300 percent in 12 to 18 months.
Just recently, 1st Net put on what it billed as "the first live, Internet video/audio multimedia presentation" using software provided by InterVu of San Diego.
Also, 1st Net has a radio show on KCEO AM 1000, but it doesn't plug stocks. "It's an educational show," says Jeffrey Chatfield , 1st Net's vice president of investor relations and a former San Diego broker. The new radio show is called the "Angel Network Radio Hour."
Don Bauder's e-mail address is don.bauder@uniontrib.com
=============================
Name: EQUITY MEDIA LTD. Dean Heller
Nevada Secretary of State
Corporate Information
Name: EQUITY MEDIA LTD.
Type: Limited Liability Company File Number: LLC484-2000 State: NEVADA Incorporated On: January 19, 2000
Status: Current list of officers on file Corp Type: Limited Liability Company
Resident Agent: NEVADA FIRST HOLDINGS, INC. (Accepted)
Address: 4535 W. SAHARA AVE
SUITE 100 A
LAS VEGAS NV 89102
Manager or Member: GERALD C YOUNG III
Address: 4535 W SAHARA AVE S-100A-535
MANAGER
LAS VEGAS NV 89102
=========================
GENEMAX UPDATE
The OTC Digest has received quite a bit of positive feedback over our August 2002 profile on GeneMax (OTC BB: GMXX.) OTC Digest Readers had ample opportunity to jump on board in late August and early September under $6 per share. From the time we released the profile to its' climax at $20.40 on November 14th, GMXX generated a 500% return. It's nice to know that even us "little guys" can outsmart the "big boys" every once in awhile.
After such a spectacular run, we haven't been surprised the stock has pulled all the way back to the prior breakout. As we said in our early November update, stocks go up and stocks go down. Little did we know that 'Business Week' was planning to run a briefing on the Company that helped push the shares higher than anyone could have imagined setting up the inevitable profit taking fall.
We continue to believe in the fine scientific research GeneMax is responsible for. For the long-term, volatility notwithstanding, we are very pleased with the excellent progress they are making. Please allow us to take this opportunity to acknowledge those of you who have written us expressing your thanks.
--------------------------------------------------------------------------------
Disclaimer
The OTC Digest Newsletter is owned and operated by Equity Media Ltd (EML). EML maintains the newsletter as a service to its subscribers and customers who may or may not have paid for the publication of the materials regarding their respective company, business or product (See "Compensation" section below). By viewing these materials or using the OTC Digest.com web site, you agree to the following terms of use.
The publications and advertisements are not endorsements, recommendations, analysis or advisories of any nature by the Publisher. EML does not give tax or investment advice or advocate the purchase or sale of any security or investment. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser or broker prior to completing any such purchase or sale decision. We are not registered investment advisers, or broker-dealers, or members of any financial regulatory bodies. Readers are cautioned that small and micro-cap stocks are high-risk investments and that they may lose all or a portion of their investment if they make a purchase in our advertised stocks. Since we receive compensation from some of the advertised companies there is an inherent conflict of interest in our statements and opinion s and such statements and opinions cannot be considered independent.
Compensation: In keeping with Section 17b of the Securities Act of 1933 EML received $4,500 from Investor Communications, Inc. for database systems management, copywriting services, and the dissemination of information on GMXX in the OTC Digest.
Please click here to view our disclaimer representing all companies who have paid a fee to EML, or visit the following web address: otcdigest.com.
These materials may contain forward-thinking statements. Actual results may vary due to a variety of risk factors, including, but not limited to, execution of definitive agreements, completion of due diligence, availability of substantial additional financing, dependence on management, government regulations, dependence on outside contractors and other risks generally associated with a start-up development ventures. EML suggests that our readers visit the Securities and Exchange Commission web site at sec.gov, the National Association of Securities Dealers at nasd.com. And the SEC's advisory to investors concerning Internet Stock Fraud found at sec.gov.
Subj: 2002 Year End Market Commentary
Date: 12/23/2002 4:19:46 PM Eastern Standard Time
From: OTC Digest <otc@news.otcdigest.com>
To: xxxxxxxxxxxxxxxxxxxxx
Sent from the Internet (Details)
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URL: www.otcdigest.com
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OTC DIGEST 2002 YEAR END MARKET COMMENTARY
U.S. equity markets are coming off their second big rally of the year, but have generated woeful returns for the average buy and hold investor for the third year in a row. The OTC Digest would not be surprised if equity markets staged a third pullback between mid-December and mid-late January. This could set the stage for what we believe will be a better-performing market in 2003 regardless.
Since January 1, 2002, the Dow Jones Industrial Average is down 15.8%, the S&P 500 is off 22.5%, and the tech-driven NASDAQ has been sliced and diced 30.1%. In between these precipitous drops, there have been two significant bear market rallies that have helped stave off even more disastrous annual performances.
In the late July early August timeframe, the major averages staged their first significant bottom of 2002. A rally ensued that collectively pushed them about 20% higher by the end of summer. The second bottom came in early October erasing those gains and then some. Nearly every major index took out their mid-summer lows before a second rally kicked in. It was even more impressive than the first one, as technology stocks "rose from the dead" and led the way.
The Dow Jones Industrials and the S&P 500 gained about 25% each, from early October until the end of November. Just as NASDAQ leadership moved to reduce tech weightings in the NASDAQ 100, it led the major averages on the upside by tacking on 37%. In the meantime, Uncle Sam deliberates whether to make peace or war against the terrorist Saddam Hussein regime in Iraq. This seems to be leaving the rest of us breathing a little uneasily in a hawkish and more volatile post-9/11 world.
We are the last ones to advocate that our crystal ball is any clearer than the next. But as we alluded to at the top, a third dip would confirm our belief that (at least technically speaking) an "inverted head and shoulders bottom" might soon be confirmed. This would be very bullish! Until we see more clues whether this may be the case or not, we will cling to our "Rally Monkeys" and hope to avoid what looks more and more like an inevitable dip.
GENEMAX UPDATE
The OTC Digest has received quite a bit of positive feedback over our August 2002 profile on GeneMax (OTC BB: GMXX.) OTC Digest Readers had ample opportunity to jump on board in late August and early September under $6 per share. From the time we released the profile to its' climax at $20.40 on November 14th, GMXX generated a 500% return. It's nice to know that even us "little guys" can outsmart the "big boys" every once in awhile.
After such a spectacular run, we haven't been surprised the stock has pulled all the way back to the prior breakout. As we said in our early November update, stocks go up and stocks go down. Little did we know that 'Business Week' was planning to run a briefing on the Company that helped push the shares higher than anyone could have imagined setting up the inevitable profit taking fall.
We continue to believe in the fine scientific research GeneMax is responsible for. For the long-term, volatility notwithstanding, we are very pleased with the excellent progress they are making. Please allow us to take this opportunity to acknowledge those of you who have written us expressing your thanks.
--------------------------------------------------------------------------------
Disclaimer
The OTC Digest Newsletter is owned and operated by Equity Media Ltd (EML). EML maintains the newsletter as a service to its subscribers and customers who may or may not have paid for the publication of the materials regarding their respective company, business or product (See "Compensation" section below). By viewing these materials or using the OTC Digest.com web site, you agree to the following terms of use.
The publications and advertisements are not endorsements, recommendations, analysis or advisories of any nature by the Publisher. EML does not give tax or investment advice or advocate the purchase or sale of any security or investment. An offer to buy or sell can be made only with accompanying disclosure documents and only in the states and provinces for which they are approved. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser or broker prior to completing any such purchase or sale decision. We are not registered investment advisers, or broker-dealers, or members of any financial regulatory bodies. Readers are cautioned that small and micro-cap stocks are high-risk investments and that they may lose all or a portion of their investment if they make a purchase in our advertised stocks. Since we receive compensation from some of the advertised companies there is an inherent conflict of interest in our statements and opinion s and such statements and opinions cannot be considered independent.
Compensation: In keeping with Section 17b of the Securities Act of 1933 EML received $4,500 from Investor Communications, Inc. for database systems management, copywriting services, and the dissemination of information on GMXX in the OTC Digest.
Please click here to view our disclaimer representing all companies who have paid a fee to EML, or visit the following web address: otcdigest.com.
These materials may contain forward-thinking statements. Actual results may vary due to a variety of risk factors, including, but not limited to, execution of definitive agreements, completion of due diligence, availability of substantial additional financing, dependence on management, government regulations, dependence on outside contractors and other risks generally associated with a start-up development ventures. EML suggests that our readers visit the Securities and Exchange Commission web site at sec.gov, the National Association of Securities Dealers at nasd.com. And the SEC's advisory to investors concerning Internet Stock Fraud found at sec.gov.
ALL "MATERIALS" FOUND IN THIS ADVERTISEMENT ARE PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN CONSENT OF THE EDITORS OF OTC DIGEST.
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