10QSB 1 ibonqsep.htm

FORM 10-QSB

SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549

Quarterly Report Under Section 13 or 15 (d)
Of the Securities Exchange Act of 1934

For Quarter Ended September 30, 2001

Commission File Number 33-26787-D

iBonZai.com, Inc.
(Exact name of registrant as specified in its charter)

                                                  DELAWARE                                                                                      87-0403828
                              (State or other jurisdiction of                                                                   (IRS Employer
                               incorporation or organization)                                                                Identification No.)

6975 South Union Park Center, Suite 600, Midvale, Utah 84047
(Address of principal executive offices)

Registrant's telephone number
including area code (801) 256-9600

Former Address, if changed since last report
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 12 months (or such shorter period that the registrant was required to file such reports)

Yes X No

and (2) has been subject to such filing requirements for the past 90 days.

Yes X No
14,282,997
(Number of shares of common stock the registrant had
outstanding as of November 20, 2001)

PART 1

ITEM 1 - FINANCIAL STATEMENTS

The condensed financial statements 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 footnote disclosures 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 presented not misleading.

In the opinion of the Company, all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the financial position of the Company as of September 30, 2001 and the results of its operations and changes in its financial position from December 31, 2000 through September 30, 2001 have been made. The results of its operations for such interim period is not necessarily indicative of the results to be expected for the entire year.

BonZai.com, Inc.
(A Development Stage Enterprise)
Consolidated Balance Sheets

                                                                                                 September 30,                   December 31,
                                                                                                     2001                                         2000
                                                                                                  (Unaudited)

Assets

Current Assets:

Receivables $ - $ 1,305

Inventory 26,553 26,553

Total current assets 26,553 27,858

Property and Equipment:

Leasehold improvements 10,234 10,234

Equipment 103,864 103,864

Vehicles 17,929 17,929

Accumulated depreciation (23,836) (13,621)

Net property and equipment 108,191 118,406

Total assets $ 134,744 $ 146,264

Liabilities and Stockholders' Equity

Current Liabilities:

Accounts payable $ 114,511 $ 111,853

Accrued expenses 348,534 269,624

Cash drawn against future deposits 24,546 24,546

iBonZai bucks 25,519 25,519

Short-term loans 274,775 274,775

Shareholder loans 20,000 20,000

Total current liabilities 807,885 726,317

Long Term Liabilities:

Vehicle loan 14,891 14,891

Total long term liabilities 14,891 14,891

Total liabilities 822,776 741,208

Stockholders's Equity:

Common stock                                                                              14,283                         14,175
Contributed Capital                                                                   1,016,811                     1,016,811
Retained earnings (deficit) accumulated
during development stage                                                         (1,719,126)                   (1,625,930)
Total equity                                                                                (688,632)                       (594,944)
Total liabilities and equity                                                           $ 134,744                      $ 146,264

iBonZai.com, Inc.
(A Development Stage Enterprise)
Consolidated Statements of Operations
(Unaudited)

                                                                                                    Three Months        Nine Months
                                                                                                    September 30,      September 30,
                                                                                                                                Since
                                                                                                            2001             2001 Inception

Revenues

Sales $ - $ - $ 404,898

- - 404,898

Cost of Goods Sold - - 258,533

Gross Profit (Loss) - - 146,365

Operating Expenses
General & Administrative 491 49,071 1,777,943

Depreciation & amortization 3,405 6,810 23,836

3,896 55,881 1,801,779

Net Operating Income (Loss) (3,896) (55,881) (1,655,414)

Other Revenue (Expense)

Interest (12,694) (20,725) (63,712)

(12,694) (20,725) (63,712)

Net Income $ (16,590) $ (76,606) $ (1,719,126)

Basic and Diluted Income
(Loss) per Share $ 0.00 $ 0.00 $ (0.12)

Common Shares Used in
Per Share Calculation 14,282,997 14,282,997 14,282,997

iBonZai.com, Inc.
(A Development Stage Enterprise)
Consolidated Statement of Cash Flows
(Unaudited)

                                                                              For the                                          For the
                                                                          Three Months                                Nine Months
                                                                           September 30,                             September 30                   Since                                                                     2001                                                2000             Inception

Cash flows from operating activities:

Net Income (Loss) $ (16,590) $ (70,606) $ (1,719,126)

Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating Activities:

Depreciation Expense 3,405 6,810 23,836

Changes in Current Assets and Liabilities:
(Increase) Decrease in Inventory - - (21,553)

Increase (Decrease) in Accounts Payable - - 98,182

Increase (Decrease in Accrued Expenses 13,185 65,725 296,018

Increase (Decrease) in Bank Overdraft - - 24,546

Stock for Services 108 108 108

Increase (Decrease) in Ibonzai Bucks - - 25,519

Increase (Decrease) in Short Term Loans - - 327,291

Net Cash Provided (Used) by
Operating Activities - - (945,179)

Cash Flows from Investing Activities:
Capital Expenditures - - (120,290)

Purchase/Reverse Merger - - (9,086)

Net Cash Provided (Used) by
Investing Activities - - (129,376)

iBonZai.com, Inc.
(A Development Stage Enterprise)
Consolidated Statement of Cash Flows
(Unaudited)

                                                                                    For the                          For the
                                                                                 Three Months                Nine Months
                                                                                 September 30,                 September 30, Since
                                                                                       2001                               2000          Inception

Cash Flows from Financing Activities:

Proceeds from Long-term Loans - - 15,425

Payments on Long-term Loans - - (534)

Proceeds from Issuance of Common Stock - - 530,996

Proceeds from Issuance of Convertible Debenture - - 250,000

Shareholder Contributions - - 249,990

Shareholder Loans - - 108,975

Shareholder Loan Repayments - - (98,070)

Net Cash Provided (Used) from
Financing Activities - - (1,056,782)

Increase (Decrease) in Cash - - (17,773)

Cash at Beginning of Period - - 17,773

Cash at End of Period $ - $ - $ -

Noncash Transactions:

Convert Shareholder Loan to Contributed Capital $ - $ - $ 142,012

Convert Debentures into Common Stock - - 250,000

Stock for Services 108 108 108

iBonZai.com, Inc.
(A Development Stage Enterprise)
Notes to the Financial Statements

September 30, 2001

NOTE 1 - INTERIM FINANCIAL STATEMENTS

Management has elected to omit all of the disclosures for the interim financial statements ended September 30, 2001 but has made all the necessary adjustments to present an accurate financial statements for the three months and the six months presented.

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

During 1999 and 2000 iBonZai.com was in the business of developing solutions for business to business Internet Service Provider (ISP) problems. The company provided broadband backbone, billing services and technical support to ISPs and worked on developing other markets including media, vertical integration through affinity groups and the acquisition of small ISPs. As an interactive communications link between the user and the internet, the company provided versatile, moment-by-moment access to personalized information through a remote interface.

The Company has minimized operations in the ISP service industry and is currently in the process of looking for other business opportunities to develop, acquire or merge with. There can be no guarantee that the Company will succeed in further development of ISP services, or in developing, acquiring, or merging with other business opportunities or entities.

Since the acquisition of Virtual Market Solutions.Com as a wholly owned subsidiary in June of 2000, the company has primarily focused on establishing name recognition, building its primary business as an ISP and expanding its customer base.

Results of Operations

In the period ended September 30, 2001, the Company had no revenues to report. The net loss for the second quarter was $(16,590) compared to a net loss for the year 2000 of $(1,628,516). The Company has currently shut down operations, laid off all of its employees except for the president. It is currently in negotiation to sell all of its assets. The Company is currently investigating other business ventures and opportunities which may be more likely to receive market support, new funding, and improve shareholder value. There can be no guarantee that such opportunities, support, funding, or improved shareholder value will be achieved.

Liquidity and Capital Resources

The Company had an accumulated deficit of $(1,719,126) as of September 30, 2001. The Company currently has no operating capital to continue the same type of operations as in the year 2000. The Company is currently seeking to raise other capital through loans or equity financing and/or joint ventures with other Internet related businesses.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings None

Item 2. Changes in Securities None

Item 3. Defaults Upon Senior Securities None

Item 4. Submission of Matters to a Vote of Security Holders None

Item 5. Other Information None

Item 6. Exhibits and Reports on Form 8-K None

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Ibonzai.com, INC.

Dated: November 20, 2001 By /s/ Scott R. Hosking

Scot R. Hosinkg
President