SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FORM 10QSB
FOR THE QUARTER ENDED JUNE 30, 2002
COMMISSION FILE NUMBER 333-51058
EMAIL MORTGAGE.COM, INC.
(Exact name of Registrant as specified in its charter)
Colorado 84-1565820
(State or other jurisdiction of (I.R.S. Employer I.D.)
incorporation or organization)
5650 Greenwood Plaza Boulevard, Suite 201,
Greenwood Village, CO 80111
Registrant's Telephone Number, including area code
(303) 575-1155
Indicate by check mark whether the Registrant (1)
has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding twelve months,
and (2) has been subject to such filing
requirements for the past 90 days.
Yes__x___ No______
Indicate the number of shares outstanding of each
of the issuer's classes of common stock, as of the
close of the period covered by this report:
2,250,000 shares.
2
Email Mortgage.com, Inc.
Index
Part I Financial Information Page
Number
Item 1.
Balance Sheet 3
Statements of Loss and Accumulated Deficit 4
Statements of Cash Flows 5
Footnotes 6
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations 7
Part II None
Signatures 10
3
Email Mortgage.com, Inc.
(A Development Stage Company)
Balance Sheet
June 30, 2002
(Unaudited)
ASSETS
Current assets: 2002
Cash $ 123,449
Advances to shareholder and affiliate 27,000
-----------
Total current assets 150,449
-----------
$ 150,449
===========
STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,276
-----------
Total current liabilities 2,276
Loans from related parties 2,580
Stockholders' equity:
Preferred stock, $.01 par value,
10,000,000 shares authorized, no shares
issued and outstanding -
Common stock, $.001 par value,
100,000,000 shares authorized, 2,500,500
shares issued and outstanding 2,501
Additional paid in capital 255,649
(Deficit) accumulated during
development stage (112,557)
-----------
145,593
-----------
$ 150,449
===========
See accompanying notes to financial statements.
4
Email Mortgage.com, Inc.
(A Development Stage Company)
Statements of Operations
Three Months Ended June 30, 2002 and 2001 and
For the Period From Inception (March 28, 2000)
to June 30, 2002
(Unaudited)
Period From
Three Months Ended Inception To
June 30, June 30,
2002 2001 2002
---------------------- -------------
Revenue:
Loan processing fees $ 1,100 $ 1,100 $ 4,350
Interest income 1,065 - 2,632
--------- --------- ---------
2,165 1,100 6,982
Operating expenses:
Loan processing costs 500 - 7,050
Professional fees 1,275 7,550 58,174
Consulting services - 400 10,000
Web site design expenses - - 23,500
Rent 475 1,950 7,175
Other expenses 830 129 13,640
--------- --------- ---------
3,080 10,029 119,539
--------- --------- ---------
(Loss from operations) and net (loss) $ (915) $ (8,929) $(112,557)
========= ========= =========
Per share information:
Basic and diluted (loss) per
common share $ (0.00) $ (0.00) $ (0.05)
========= ========= =========
Weighted average shares outstanding 2,500,500 2,250,000 2,303,833
========= ========= =========
See accompanying notes to financial statements.
5
Email Mortgage.com, Inc.
(A Development Stage Company)
Statements of Cash Flows
Three Months Ended June 30, 2002 and 2001 and
For the Period From Inception (March 28, 2000)
to June 30, 2002
(Unaudited)
Period From
Three Months Ended Inception To
June 30, June 30,
2002 2001 2002
---------------------- -------------
Net income (loss) $ (915) $ (8,929) $(112,557)
Adjustments to reconcile net income to net
cash provided by operating activities:
Services provided for common stock - - 5,000
Expenses contributed to capital by shareholder - - 8,500
Changes in assets and liabilities:
Increase in accounts payable 1,250 - 2,276
-------- --------- --------
Total adjustments 1,250 - 15,776
-------- --------- --------
Net cash provided by (used in)
operating activities 335 (8,929) (96,781)
Cash flows from financing activities:
Common stock sold for cash - - 253,150
Repayment of related party loans - - (67,745)
Advances to shareholder & affiliate (20,000) - (42,000)
Repayment of affiliated company advances - - 15,000
Loans from related party - 8,200 61,825
------- --------- --------
Net cash provided by (used in)
financing activities (20,000) 8,200 220,230
------- --------- --------
Increase (decrease) in cash (19,665) (729) 123,449
Cash and cash equivalents,
beginning of period 143,114 969 -
------- --------- --------
Cash and cash equivalents,
end of period $ 123,449 $ 240 $ 123,449
See accompanying notes to financial statements.
6
Email Mortgage.com, Inc.
Notes to Unaudited Financial Statements
Basis of presentation
The accompanying unaudited financial statements
have been prepared in accordance with generally
accepted accounting principles for interim
financial information and with the instructions
incorporated in Regulation SB of the Securities and
Exchange Commission. Accordingly, they do not
include all of the information and footnotes
required by generally accepted accounting
principles for complete financial statements. In
the opinion of management, all adjustments
(consisting of normal recurring adjustments and
accruals) considered necessary for a fair
presentation have been included.
The results of operations for the periods presented
are not necessarily indicative of the results to be
expected for the full year. The accompanying
financial statements should be read in conjunction
with the Company's financial statements for the
year ended March 31, 2002.
Basic loss per share was computed using the
weighted average number of common shares
outstanding.
During the quarter ended June 30, 2002, the Company
loaned $20,000 to a shareholder.
The Company had an outstanding advance balance due
to a related party of $2,580 and an outstanding
advance to an affiliated company of $7,000 at June
30, 2002.
7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Trends and Uncertainties. Demand for Email
Mortgage's project will be dependent on, among
other things, market acceptance of the Email
Mortgage.com concept, the quality of its services,
and general economic conditions, which are cyclical
in nature. Inasmuch as a major portion of Email
Mortgage's activities will be the receipt of
revenues from our services, Email Mortgage's
business operations may be adversely affected by
Email Mortgage's competitors and prolonged
recessionary periods.
Capital and Source of Liquidity. Prior to the
recent offering, all of the initial working capital
was obtained from the sale of common shares to the
current officers, directors and principal
shareholder ($2,650) and loans from a related party
of ($70,325). We raised $251,400 through the
sale of common stock in our recent public offering.
Email Mortgage may require additional loans to
expand our current and strategic business plans.
We do not have any funding arrangements with any
third party or any affiliates, including the
Clarkson Trust.
For the three months ended June 30, 2002, we made
advances to a shareholder and affiliate of $20,000
resulting in net cash used in financing activities
of $20,000.
For the three months ended June 30, 2001, we
received loans from a related party of $8,200
resulting in net cash provided by financing
activities of $8,200.
For the year ended March 31, 2002, we received
proceeds from the sale of common stock of $250,500,
loans from a related party of $10,400 and repaid
$67,745 in related party loans, made advances to
affiliated company of $22,000 and repaid affiliate
advance of $15,0000 resulting in net cash provided
by financing activities of $186,155.
For the year ended March 31, 2001, we received
loans from a related party of $51,425 and sold
common stock for cash of $2,650 resulting in net
cash provided by financing activities of $54,075.
For the three months ended June 30, 2002 and 2001
and the year ended March 31, 2002 and 2001, we did
not pursue any investing activities.
8
On a long-term basis, liquidity is dependent on
continuation and expansion of operation and receipt
of revenues, additional infusions of capital, and
debt financing. Email Mortgage believes that
The proceeds received from its recent public
offering will allow Email Mortgage to increase its
marketing and sales efforts and thereafter result
in revenue and greater liquidity in the long term.
However, there can be no assurance that Email
Mortgage will be able to obtain additional equity
or debt financing in the future, if at all.
Results of Operations. Since inception, Email
Mortgage has not received any significant revenues
from operations. For the three months ended
June 30, 2002, we received revenue of only $1,100
from loan processing fees. We had a net loss of
$915 for the three months ended June 30, 2002.
Operating expenses for that same period were $3,080
consisting of loan processing costs of $500,
professional fees of $1,275, rent of $475 and other
expenses of $830.
For the three months ended June 30, 2001, we
received revenue of only $1,100 from loan
processing fees. We had a net loss of $9,008 for
the three months ended June 30, 2001. Operating
expenses for that same period were $10,108
consisting of loan processing costs of $400,
professional fees of $7,550, rent of $1,950 and
other expenses of $208.
For the year ended March 31, 2002, we received
revenue of only $1,750 from loan processing fees.
We had a net loss of $45,036 for the year ended
March 31, 2002. Operating expenses for that same
period were $33,353 consisting of loan processing
costs of $750, professional fees of $43,349, rent
of $3,250 and other expenses of $1,004.
For the year ended March 31, 2001, we received
revenue of $1,500. We had a net loss of $68,106
for the year ended March 31, 2001. Operating
expenses for that same period were loan processing
costs of $5,800, professional fees of $13,550,
consulting services of $10,000, web site design
expenses of $23,500, rent of $3,450 and other
expenses of $11,806.
Plan of Operation. Email Mortgage is in the
development stage and has not conducted any
significant operations to date or received
significant operating revenues. Email Mortgage can
satisfy our cash requirements in the next twelve
9
months with the proceeds from the current offering.
We will not need to conduct any research and
development regarding our business plan.
We do not expect to purchase any plant or
significant equipment.
We agreed to pay Email RealEstate, an affiliate,
beginning January 1, 2001, $20 per month per
realtor that has a website on Email RealEstate that
includes a hotlink to EmailMortgage. If we do not
have sufficient funds to cover these payments, we
may have to use some of the proceeds of the current
offering or obtain additional financing through
debt or equity.
Email Mortgage may experience problems; delays,
expenses, and difficulties sometimes encountered by
an enterprise in Email Mortgage's stage of
development, many of which are beyond Email
Mortgage's control. These include, but are not
limited to, unanticipated problems relating to the
development of the system, manufacturing costs,
production and marketing problems, additional costs
and expenses that may exceed current estimates, and
competition.
10
Signatures
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date: August 22, 2002
By: /s/ Dianne VandenBurg
------------------------
Dianne VandenBurg
President