United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended June 30, 2001
Commission File Number: 0-29803
Safe ID Corporation
Nevada 88-0407078
(Jurisdiction of Incorporation) (I.R.S. Employer Identification No.)
Suite B3, 1700 Varsity Estates Drive NW Calgary, Alberta Canada T3B-2W9
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (403) 247-4630
Shares Registered Section 12(g): Common Stock
As of June 30, 2001, 22,584,000 shares of Common Stock were issued and
outstanding.
Transitional Small Business Disclosure Format (check one): yes [ ] no [X]
1
PART I: FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
The financial statements, for the three months and six months ended June
30, 2001, included herein have been prepared by the Company, without audit
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnotes disclosure normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations, although
the Company believes that the disclosures are adequate to make the information
not misleading.
The Remainder of this Page is Intentionally left Blank
2
SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
(UNAUDITED)
(U.S. DOLLARS)
JUNE 30, DECEMBER 31
2001 2000
--------------------------------------------------------------------------------
ASSETS
CURRENT
Cash $6,452 $844
----------------------------------------
LIABILITIES
CURRENT
Accounts payable $38,798 $39,939
----------------------------------------
DUE TO STOCKHOLDERS 25,977 7,333
----------------------------------------
TOTAL LIABILITIES 64,775 47,272
----------------------------------------
STOCKHOLDERS' DEFICIENCY
COMMON STOCK, 25,000,000
shares authorized, par value of
$0.001, 22,584,000 (2000 - 24,000,000)
shares issued and outstanding 22,584 24,000
----------------------------------------
ADDITIONAL PAID-IN CAPITAL 33,416 32,000
----------------------------------------
DEFICIT ACCUMULATED DURING
THE DEVELOPMENT STAGE (114,323) (102,428)
----------------------------------------
TOTAL STOCKHOLDERS' DEFICIENCY (58,323) (46,428)
----------------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIENCY $6,452 $844
========================================
3
SAFE ID CORPORATION
A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(UNAUDITED)
(U.S. DOLLARS)
JUNE 27, 1996
(INCEPTION)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, TO
2001 2000 2001 2000 JUNE 30, 2001
----------------------------------------------------------------------------------------------------------
SALES $11,740 $0 $11,740 $0 $11,740
COST OF SALES 9,180 0 9,180 0 9,180
----------------------------------------------------------------------------
GROSS PROFIT 2,560 0 2,560 0 2,560
----------------------------------------------------------------------------
OPERATING EXPENSES
Professional
fees 10,504 8,537 10,504 16,967 60,139
Consulting 973 0 973 688 37,827
Rent 958 748 1,441 1,510 6,093
Selling and
administrative 670 1,605 770 4,438 6,875
Travel 652 0 652 0 5,628
Bank charges 101 18 115 107 321
----------------------------------------------------------------------------
13,858 10,908 14,455 23,710 116,883
----------------------------------------------------------------------------
NET LOSS FOR
PERIOD $(11,298) $(10,908) $(11,895) $(23,710) $(114,323)
============================================================================
NET LOSS PER
SHARE $ 0.00 $ 0.00 $ 0.00 $ 0.00
============================================================================
WEIGHTED AVERAGE
NUMBER OF
SHARES
OUTSTANDING 22,584,000 24,000,000 22,787,403 24,000,000
============================================================================
4
SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF STOCKHOLDERS' DEFICIENCY
(U.S. DOLLARS)
DEFICIT
ACCUMULATED
COMMON COMMON ADDITIONAL DURING THE TOTAL
STOCK STOCK PAID-IN DEVELOPMENT STOCKHOLDERS'
NUMBER AMOUNT CAPITAL STAGE DEFICIENCY
-------------------------------------------------------------------------------------
BALANCE, JUNE 27, 1996 0 $0 $0 $0 $0
COMMON STOCK ISSUED
FOR SERVICES 6,000,000 6,000 (5,000) 0 1,000
NET LOSS, JUNE 27, 1996
TO DECEMBER 31, 1996 0 0 0 (1,000) (1,000)
---------------------------------------------------------------
BALANCE, DECEMBER 31, 1996 6,000,000 6,000 (5,000) (1,000) 0
NET LOSS, YEAR ENDED
DECEMBER 31, 1997 0 0 0 0 0
BALANCE, DECEMBER 31, 1997 6,000,000 6,000 (5,000) (1,000) 0
---------------------------------------------------------------
NET LOSS, YEAR ENDED
DECEMBER 31, 1998 0 0 0 (350) (350)
BALANCE, DECEMBER 31, 1998 6,000,000 6,000 (5,000) (1,350) (350)
COMMON STOCK ISSUED
For services 9,000,000 9,000 21,000 0 30,000
For cash 9,000,000 9,000 21,000 0 30,000
NET LOSS, YEAR ENDED
DECEMBER 31, 1999 0 0 0 (51,861) (51,861)
SHARE ISSUE COSTS 0 0 (5,000) 0 (5,000)
---------------------------------------------------------------
BALANCE, DECEMBER 31, 1999 24,000,000 24,000 32,000 (53,211) 2,789
NET LOSS, YEAR ENDED
DECEMBER 31, 2000 0 0 0 (49,217) (49,217)
---------------------------------------------------------------
BALANCE, DECEMBER 31, 2000 24,000,000 24,000 32,000 (102,428) (46,428)
SHARE CANCELLATION (1,416,000) (1,416) 1,416 0 0
NET LOSS, PERIOD ENDED
JUNE 30, 2001 0 0 0 (11,895) (11,895)
----------------------------------------------------------------
BALANCE, JUNE 30, 2001 22,584,000 $22,584 $33,416 $(114,323) $(58,323)
================================================================
5
SAFE ID CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(U.S. DOLLARS)
PERIOD FROM
JUNE 27,1996
(INCEPTION)
SIX MONTHS ENDED JUNE 30, TO
2001 2000 JUNE 30, 2001
--------------------------------------------------------------------------------
OPERATING ACTIVITIES
Net loss $(11,895) $(23,710) $(114,323)
Adjustment to reconcile net loss
to net cash used by operating
Activities
Issuance of common stock for payment
of services 0 0 31,000
CHANGES IN NON-CASH WORKING CAPITAL
Prepaid expense 0 5,600 0
Accounts payable (1,141) 11,367 38,798
----------------------------------------------------
NET CASH USED IN
OPERATING ACTIVITIES (13,036) (6,743) (44,525)
----------------------------------------------------
FINANCING ACTIVITIES
Advances from stockholders 18,644 6,000 25,977
Issuance of common stock 0 0 25,000
----------------------------------------------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 18,644 6,000 0,977
----------------------------------------------------
CASH INFLOW (OUTFLOW) 5,608 (743) 6,452
CASH, BEGINNING OF PERIOD 844 2,778 0
----------------------------------------------------
CASH, END OF PERIOD $6,452 $2,035 $6,452
====================================================
6
SAFE ID CORPORATION
A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(U.S. DOLLARS)
1. BASIS OF PRESENTATION
These unaudited consolidated financial statements have been prepared in
accordance with generally accepted accounting principles in the United States
for interim financial information. These financial statements are condensed and
do not include all disclosures required for annual financial statements. The
organization and business of the Company, accounting policies followed by the
Company and other information are contained in the notes to the Company's
audited financial statements filed as part of the Company's December 31, 2000
Form 10-SB-12G.
In the opinion of the Company's management, these financial statements reflect
all adjustments necessary to present fairly the Company's financial position at
June 30, 2001 and December 31, 2000 and the results of operations and cash
flows for the six months ended June 30, 2001 and 2000. The results of
operations for the six months ended June 30, 2001 are not necessarily indicative
of the results to be expected for the entire fiscal year.
7
ITEM 2. DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
(A) PLAN OF OPERATION FOR THE NEXT TWELVE MONTHS.
(1) CASH REQUIREMENTS AND OF NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS. We
have estimated and still do, that we would require about $250,000 in the next
twelve month to meet overhead (rent, salaries, and operational expenses) and
also expenses connected with marketing (cost of goods sold, buying chips,
mainly,) and also general working capital. These necessary funds must be raised
by offering additional shares of stock in one or a combination of the following:
a public offering pursuant to the Securities Act of 1933; and/or, one or more
private placements of restricted securities. We have not determined yet what
plan or plans of capital formation we will pursue. We would require about
$50,000 to launch fully, to establish our dynamic link relationships with major
markets, and to produce and circulate brochures and initial advertising
announcements. The term "dynamic link" refers to the common commercial practice
by which one web site features a direct link to another web site. We would
require about $200,000 in initial working capital to insure liquidity for the
first twelve months following our launch.
We have begun to make sales, even without the funding to enable us to make
a full-scale launch. It is our hope that by starting our business operations we
can become more attractive to potential investors. In our present posture, we
cannot build inventory, but must acquire products as we receive orders. With
proper funding we could consummate favorable supply arrangements and triple our
profit margins enjoyed at present.
It is apparent that our cash on hand is insufficient for any material
purpose, other than to fill orders as they come in, with relatively low volume
of sales. Accordingly, expenses incurred which exceed our available cash on hand
must be and will be advanced by management.
We do not anticipate any contingency upon which we would voluntarily cease
filing reports with the SEC, even though we might cease to be required to do so.
It is in our compelling interest to report our affairs quarterly, annually and
currently, as the case may be, generally to provide accessible public
information to interested parties, and also specifically to maintain our
qualification for the OTCBB.
(2) SUMMARY OF PRODUCT RESEARCH AND DEVELOPMENT. We do not have any new
products in development. We do not develop new products. We may re-sell products
developed by others in the future, when and if they are demonstrated to be
marketable and properly warranted by their manufacturers.
(3) EXPECTED PURCHASE OR SALE OF PLANT AND SIGNIFICANT EQUIPMENT. None.
(4) EXPECTED SIGNIFICANT CHANGE IN THE NUMBER OF EMPLOYEES. We have no
firm expectations. We hope to grow. Growth would be accompanied by additional
employees.
(B) MANAGEMENT DISCURSION AND ANALYSIS. We have enjoyed only minimal revenues
since inception January 27, 1996. These represent our first sales.
8
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS. None
ITEM 2. CHANGE IN SECURITIES. None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS. None
ITEM 5. OTHER INFORMATION.None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. None
9
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-QSB Report for the Quarter ended June 30, 2001, has been signed below by
the following person on behalf of the Registrant and in the capacity and on the
date indicated.
SAFE ID CORPORATION
Dated: August 15, 2001
by
/s/Maurizio Forigo /s/Lance Morginn
Maurizio Forigo Lance Morginn
president/director secretary/director
10