Friday, August 17, 2001 11:43:53 AM
Did anyone else noticed that ITCN filled yesterday
their 10-QSB?
Hope its a beginning here for that potential FS.
Would be nice at these prices.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Intrac, Inc.
(A Development Stage Company)
Balance Sheet
as of
June 30, 2001
and December 31, 2000
and
Statement of Operations
for the Three and Six Months
ended June 30, 2001 and 2000
and for the period
September 6, 2000 (Date of Inception)
through
June 30, 2001
and
Statement of Cash Flows
for the Six Months
ended June 30, 2001 and 2000
and for the period
September 6, 2000 (Date of Inception)
through
June 30, 2001
/3/
G. BRAD BECKSTEAD
Certified Public Accountant
330 E. Warm Springs
Las Vegas, NV 89119
702.528.1984
425.928.2877efax
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
Board of Directors
Intrac, Inc.
(a Development Stage Company)
Las Vegas, NV
I have reviewed the accompanying balance sheet of Intrac, Inc. (a Nevada corporation) (a development stage company) as of June 30, 2001 and the related statements of operations for the six-months ended June 30, 2001 and 2000 and for the period September 6, 2000 (Inception) to June 30, 2001, and statements of cash flows for the six-month period ending June 30, 2001 and 2000 and for the period September 6, 2000 (Inception) to June 30, 2001. These financial statements are the responsibility of the Company's management.
I conducted my reviews in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, which will be performed for the full year with the objective of expressing an opinion regarding the financial statements taken as a whole. Accordingly, I do not express such an opinion.
Based on my reviews, I am not aware of any material modifications that should be made to the accompanying financial statements referred to above for them to be in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has had limited operations and has not commenced planned principal operations. This raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
I have previously audited, in accordance with generally accepted auditing standards, the balance sheet of Intrac, Inc. (a development stage company) as of December 31, 2000, and the related statements of operations, stockholders' equity, and cash flows for the year then ended (not presented herein) and in my report dated March 9, 2001, I expressed an unqualified opinion on those financial statements.
/s/ G. Brad Beckstead, CPA
August 10, 2001
/4/
Intrac, Inc.
(a Development Stage Company)
Balance Sheet
(unaudited)
June 30, December 31,
2001 2000
---------- ----------
Assets
Current assets:
Cash $ 38,899 $ 69
---------- ----------
Total current assets 38,899 69
Acquired technology, net 10,259 11,465
---------- ----------
$ 49,158 $ 11,534
Liabilities and Stockholders' Equity ========== ==========
Current liabilities: $ -- $ --
---------- ----------
Total current liabilities $ -- $ --
---------- ----------
Stockholders' equity:
Common stock, $0.001 par value; 20,000,000 9,997 7,000
shares authorized, 9,997,000 and 7,000,000
shares issued and outstanding at 6/30/01
and 12/31/00, respectively
Additional paid-in capital 307,396 10,693
(Deficit) accumulated during development stage (268,235) (6,159)
---------- ----------
49,158 11,534
---------- ----------
$ 49,158 $ 11,534
========== ==========
The accompanying notes are an integral part of these financial statements.
/5/
Intrac, Inc.
(a Development Stage Company)
Statement of Operations
(unaudited)
September 6, 2000
Three months ended Six months ended (Inception)
June 30, June 30, to
---------------------- ---------------------- June 30,
2001 2000 2001 2000 2001
---------- ---------- ---------- ---------- ----------
Revenue $ 400 $ -- $ 600 $ -- $ 600
---------- ---------- ---------- ---------- ----------
Expenses:
General and administrative 37,715 -- 261,695 -- 267,251
expenses
Amortization 603 -- 1,206 -- 1,809
---------- ---------- ---------- ---------- ----------
Total expenses 38,318 -- 262,901 -- 269,060
---------- ---------- ---------- ---------- ----------
Other income/expense:
Interest income 124 -- 225 -- 225
---------- ---------- ---------- ---------- ----------
Net (loss) $ (37,794) $ -- $ (262,076) $ -- $ (268,235)
========== ========== ========== ========== ==========
Weighted average number of
common shares outstanding 9,997,000 -- 9,249,742 -- 8,378,630
========== ========== ========== ========== ==========
Net (loss) per share $ (0.00) $ -- $ (0.03) $ -- $ (0.03)
========== ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
/6/
Intrac, Inc.
(a Development Stage Company)
Statement of Cash Flows
(unaudited)
Six months ended September 6, 2000
June 30, (Inception) to
---------------------- June 30,
2001 2000 2001
---------- ---------- ----------
Cash flows from operating activities
Net (loss) $ (262,076) $ -- $ (268,235)
Amortization 1,206 -- 1,809
Shares issued for services 151,100 -- (4,614)
---------- ---------- ----------
Net cash (used) by operating activities (109,770) -- (115,326)
---------- ---------- ----------
Cash flows from investing activities
Net cash used by investing activities -- -- --
---------- ---------- ----------
Cash flows from financing activities
Common stock 148,600 -- 148,600
Contributed capital -- -- 5,625
Net cash provided by financing 148,600 -- 154,225
activities ---------- ---------- ----------
Net increase in cash 38,830 -- 38,899
Cash - beginning 69 -- --
---------- ---------- ----------
Cash - ending $ 38,899 $ -- $ 38,899
========== ========== ==========
Supplemental disclosures:
Interest paid $ -- $ -- $ --
========== ========== ==========
Income taxes paid $ -- $ -- $ --
========== ========== ==========
Non-cash investing and financing
activities:
Common stock issued for
acquired technology $ 12,068 $ -- $ 12,068
========== ========== ==========
Number of shares issued for
technology 7,000,000 -- 7,000,000
========== ========== ==========
The accompanying notes are an integral part of these financial statements.
/7/
Intrac, Inc.
(a Development Stage Company)
Notes
Note 1 - Summary of significant accounting policies
Organization
The Company was organized September 6, 2000 (Date of Inception) under the laws of the State of Nevada, as Intrac, Inc. The Company has insignificant operations and in accordance with SFAS #7, the Company is considered a development stage company.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.
Cash and cash equivalents
For the purpose of the statements of cash flows, all highly liquid investments with the maturity of three months or less are considered to be cash equivalents.
Revenue recognition
The Company recognizes revenue on the accrual basis.
Advertising Costs
The Company expenses all costs of advertising as incurred. There were no advertising costs included in general and administrative expenses as of June 30, 2001.
Fair value of financial instruments
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2001. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.
Impairment of long lived assets
Long lived assets held and used by the Company are reviewed for possible impairment whenever events or circumstances indicate the carrying amount of an asset may not be recoverable or is impaired. No such impairments have been identified by management at June 30, 2001.
Earnings per share
The Company follows Statement of Financial Accounting Standards No. 128. "Earnings Per Share" ("SFAS No. 128"). Basic earning per common share ("EPS") calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earning per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti- dilutive they are not considered in the computation.
Segment reporting
The Company follows Statement of Financial Accounting Standards No. 130, "Disclosures About Segments of an Enterprise and Related Information". The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.
Income taxes
The Company follows Statement of Financial Accounting Standard No. 109, "Accounting for Income Taxes" ("SFAS No. 109") for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence
/8/
Intrac, Inc.
(a Development Stage Company)
Notes
suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.
Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non- current depending on the periods in which the temporary differences are expected to reverse.
Recent pronouncements
The FASB recently issued Statement No. 137, "Accounting for Derivative Instruments and Hedging Activities-Deferral of Effective Date of FASB Statement No. 133". The Statement defers for one year the effective date of FASB Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities". The rule now will apply to all fiscal quarters of all fiscal years beginning after June 15, 2000. In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." The Statement will require the company to recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income, if the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value will be immediately recognized in earnings. The company does not expect SFAS No. 133 to have a material impact on earning s and financial position.
In December 1999, the Securities and Exchange Commission released Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements (SAB No. 101), which provides guidance on the recognition, presentation and disclosure of revenue in financial statements. SAB No. 101 did not impact the company's revenue recognition policies.
Note 2 - Acquired technology
The Company acquired technology from its director valued at $12,068 and recorded amortization expense in the amount of $1206 during the period ended June 30, 2001.
Note 3 - Income taxes
The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS No. 109"), which requires use of the liability method. SFAS No. 109 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized.
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences are as follows:
U.S federal statutory rate (34.0%)
Valuation reserve 34.0%
------
Total -%
------
As of June 30, 2001, the Company has a net operating loss carryforward of approximately $268,000 for tax purposes, which will be available to offset future taxable income. If not used, this carryforward will expire in 2021. The deferred tax asset relating to the operating loss carryforward of approximately $91,000 has been fully reserved at June 30, 2001.
/9/
Intrac, Inc.
(a Development Stage Company)
Notes
Note 4 - Stockholder's equity
The Company is authorized to issue 5,000,000 shares of it $0.001 par value preferred stock and 20,000,000 shares of its $0.001 par value common stock.
On September 6, 2000, contributed capital was received by the Company in the amount of $5,625.
On September 8, 2000, the Company issued 7,000,000 shares of its $0.001 par value common stock to its director in exchange for acquired technology in the amount of $12,068.
During February 2001, the Company issued 1,511,000 shares of its $0.001 par value common stock for consulting services valued at $151,100. (See Note 7.)
On March 26, 2001, the Company completed an offering that was registered with the State of Nevada pursuant to NRS 90.490 and was exempt from federal registration pursuant to Regulation D, Rule 504 of the Securities Act of 1933, as amended. The Company sold 1,486,000 shares of its $0.001 par value common stock at a price of $0.10 per share for total cash of $148,600
There have been no other issuances of common stock.
Note 5 - Going concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. As noted above, the Company is in the development stage and, accordingly, has not yet generated revenues from operations. Since its inception, the Company has been engaged substantially in financing activities and developing its product line, incurring substantial costs and expenses. As a result, the Company incurred a net loss during the period ended June 30, 2001 of $268,235. In addition, the Company's development activities since inception have been financially sustained by capital contributions.
The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to recover the value of its assets or satisfy its liabilities.
Note 6 - Warrants and options
There are no warrants or options outstanding to acquire any additional shares of common stock.
Note 7 - Related party transactions
The Company does not lease or rent any property. Office services are provided without charge by the Company's director. Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein.
The Company entered into an "Asset Purchase and License Agreement" dated September 8, 2000, whereby the Company purchased a working prototype of a vision training technology developed by the Company's president. The Company also acquired an exclusive license for use of certain patents relating to the acquired technology that are currently held by its president. The licensing agreement will remain in effect until either party provides a thirty days' written termination notice via certified mail. In exchange for the acquired technology and exclusive license, the Company issued to its president 7,000,000 shares of its $0.001 par value common stock.
The Company paid its president a salary of $30,000 during the six months ended June 30, 2001.
The Company paid Corporate Regulatory Services, a shareholder of the Company, $32,030 in consulting fees during the six months ended June 30, 2001.
/10/
Intrac, Inc.
(a Development Stage Company)
Notes
The Company paid Chaim Drizin, a shareholder of the Company, $22,500 in consulting fees during the six months ended June 30, 2001.
The Company paid Menada Financial, Inc., a shareholder of the Company, $3,000 in consulting fees during the six months ended June 30, 2001.
/11/
Item 2. Management's Discussion and Plan of Operation
Forward-Looking Statements
This Quarterly Report contains forward-looking statements about our business, financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. If any of our assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, our actual results may differ materially from those indicated by the forward-looking statements. The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, our ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.
There may be other risks and circumstances that we are unable to predict. When used in this Quarterly Report, words such as, "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward- looking statements not accompanied by such expressions. All forward-looking statements are intended to be covered by the safe harbor created by Section 21E of the Securities Exchange Act of 1934.
General
We were formed as a Nevada Corporation on September 6, 2000 under the name Intrac, Inc. We are a development stage company that intends to manufacture and market the mini-Accommotrac Vision Trainer ("AVT). The mini-AVT is a patented electro- optical device that uses the scientific principle of biofeedback to teach people how to voluntarily control the ciliary, or focusing, muscle of the eye. This type of medical instrument has been used to:
1. Help reduce nearsightedness;
2. Enhance athletic performance; and
3. Aid children with learning disabilities.
Dr. Joseph N. Trachtman, president of Intrac, Inc., is a pioneer in the area of vision and biofeedback research. Biofeedback does not belong to a particular field of healthcare, but is used in disciplines ranging from internal medicine to dentistry to physical therapy and rehabilitation. He has over 25 years of experience in the fields of research and development, marketing and sales.
Results of Operations
For the period from January 1, 2001 through June 30, 2001, we generated $600 in revenues derived from an advertising arrangement from a number of doctors that allows their listings on our website, www.accommotrac.com. On June 4, 2001, Intrac, Inc. obtained listing status on the Over the Counter Bulletin Board ("OTC-BB") under the symbol "ITCN".
We incurred expenses for the operating period January 1, 2001 through June 30, 2001, totaling $262,901. Expenditures were primarily due to costs incurred for professional fees, services and general and administrative expenses. Our professional and service expenses were incurred from our public listing process on the NASD's OTC-BB which included the process of the public offering in the State of Nevada and the State of New York, state Blue Sky registrations, attorneys' fees, escrow and EDGARization costs related to the offering, and audits and public filing costs.
/12/
Future Business
Our priorities for the next 3 to 12 months of operations are:
1. Contracting a sub-manufacturer for the mini-Accommotrac Vision Trainer;
2. The continued Development of our corporate Internet site (www.accommotrac.com);
3. Organizing and hiring a sales and management team;
4. Sending out press releases announcing our accomplishments; and
5. Forming strategic alliances to increase our customer base and to build our brand equity.
To further our business plan we have:
1. Created a software package of vision tests that are currently in the final stages of development. The tests include visual acuity, depth perception, color vision, and contrast sensitivity. They will be marketed to professionals via direct mail and telephone follow-up, and the general public via our website www.accommotrac.com.
2. Enhanced our website to include Dr. Trachtman's book "Open Your Eyes and See" a layman's guide to better vision, health and performance. In addition, an on-line brochure on A.D.D./A.D.H.D. is now up and running.
3. Entered into preliminary discussions with a group from Singapore for distribution and/or a joint venture.
4. Compiled the theory and practice of our training program into a course that will be given this fall by Dr. Trachtman at Wagner College, Staten Island, New York. The title of the course is Sports Management and is part of the M.B.A. program.
Liquidity and Capital Resources
Based on the $148,600 raised through the public offering of our common stock we believe that the company has sufficient liquidity to continue its current operations for at least the next 12 to 24 months, however, it would be unlikely for us to continue as a going concern without generating revenues or raising funds through a subsequent sale of our common stock.
All investor inquiries should be directed to Dr. Joseph N. Trachtman, President, Intrac, Inc., 26 Schermerhorn Street, Brooklyn, New York 11201, phone 718-852-7856 or via his web address tracht@accommotrac.com.
/13/
PART II - OTHER INFORMATION
Item 6. Exhibits
Exhibit Name and/or Identification of Exhibit Number
3 Articles of Incorporation & By-Laws
(a) Articles of Incorporation of the Company filed September 6, 2000. Incorporated by reference to the exhibits to the Company's General Form For Registration Of Securities Of Small Business Issuers on Form 10-SB, previously filed with the Commission.
(b) By-Laws of the Company adopted September 8, 2000. Incorporated by reference to the exhibits to the Company's General Form For Registration Of Securities Of Small Business Issuers on Form 10-SB, previously filed with the Commission.
/14/
SIGNATURES
Pursuant to the requirements of the Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Intrac, Inc.
--------------------------------------------------------------------------------
(Registrant)
Date: August 13, 2001
By: /s/ Dr. Joseph N. Trachtman
-----------------------------------------------
Dr. Joseph N. Trachtman, President and Director
/15/
--------------------------------------------------------------------------------
End of Filing
© 2001 / EDGAR Online, Inc.
their 10-QSB?
Hope its a beginning here for that potential FS.
Would be nice at these prices.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Intrac, Inc.
(A Development Stage Company)
Balance Sheet
as of
June 30, 2001
and December 31, 2000
and
Statement of Operations
for the Three and Six Months
ended June 30, 2001 and 2000
and for the period
September 6, 2000 (Date of Inception)
through
June 30, 2001
and
Statement of Cash Flows
for the Six Months
ended June 30, 2001 and 2000
and for the period
September 6, 2000 (Date of Inception)
through
June 30, 2001
/3/
G. BRAD BECKSTEAD
Certified Public Accountant
330 E. Warm Springs
Las Vegas, NV 89119
702.528.1984
425.928.2877efax
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
Board of Directors
Intrac, Inc.
(a Development Stage Company)
Las Vegas, NV
I have reviewed the accompanying balance sheet of Intrac, Inc. (a Nevada corporation) (a development stage company) as of June 30, 2001 and the related statements of operations for the six-months ended June 30, 2001 and 2000 and for the period September 6, 2000 (Inception) to June 30, 2001, and statements of cash flows for the six-month period ending June 30, 2001 and 2000 and for the period September 6, 2000 (Inception) to June 30, 2001. These financial statements are the responsibility of the Company's management.
I conducted my reviews in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of applying analytical procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with generally accepted auditing standards, which will be performed for the full year with the objective of expressing an opinion regarding the financial statements taken as a whole. Accordingly, I do not express such an opinion.
Based on my reviews, I am not aware of any material modifications that should be made to the accompanying financial statements referred to above for them to be in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has had limited operations and has not commenced planned principal operations. This raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
I have previously audited, in accordance with generally accepted auditing standards, the balance sheet of Intrac, Inc. (a development stage company) as of December 31, 2000, and the related statements of operations, stockholders' equity, and cash flows for the year then ended (not presented herein) and in my report dated March 9, 2001, I expressed an unqualified opinion on those financial statements.
/s/ G. Brad Beckstead, CPA
August 10, 2001
/4/
Intrac, Inc.
(a Development Stage Company)
Balance Sheet
(unaudited)
June 30, December 31,
2001 2000
---------- ----------
Assets
Current assets:
Cash $ 38,899 $ 69
---------- ----------
Total current assets 38,899 69
Acquired technology, net 10,259 11,465
---------- ----------
$ 49,158 $ 11,534
Liabilities and Stockholders' Equity ========== ==========
Current liabilities: $ -- $ --
---------- ----------
Total current liabilities $ -- $ --
---------- ----------
Stockholders' equity:
Common stock, $0.001 par value; 20,000,000 9,997 7,000
shares authorized, 9,997,000 and 7,000,000
shares issued and outstanding at 6/30/01
and 12/31/00, respectively
Additional paid-in capital 307,396 10,693
(Deficit) accumulated during development stage (268,235) (6,159)
---------- ----------
49,158 11,534
---------- ----------
$ 49,158 $ 11,534
========== ==========
The accompanying notes are an integral part of these financial statements.
/5/
Intrac, Inc.
(a Development Stage Company)
Statement of Operations
(unaudited)
September 6, 2000
Three months ended Six months ended (Inception)
June 30, June 30, to
---------------------- ---------------------- June 30,
2001 2000 2001 2000 2001
---------- ---------- ---------- ---------- ----------
Revenue $ 400 $ -- $ 600 $ -- $ 600
---------- ---------- ---------- ---------- ----------
Expenses:
General and administrative 37,715 -- 261,695 -- 267,251
expenses
Amortization 603 -- 1,206 -- 1,809
---------- ---------- ---------- ---------- ----------
Total expenses 38,318 -- 262,901 -- 269,060
---------- ---------- ---------- ---------- ----------
Other income/expense:
Interest income 124 -- 225 -- 225
---------- ---------- ---------- ---------- ----------
Net (loss) $ (37,794) $ -- $ (262,076) $ -- $ (268,235)
========== ========== ========== ========== ==========
Weighted average number of
common shares outstanding 9,997,000 -- 9,249,742 -- 8,378,630
========== ========== ========== ========== ==========
Net (loss) per share $ (0.00) $ -- $ (0.03) $ -- $ (0.03)
========== ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
/6/
Intrac, Inc.
(a Development Stage Company)
Statement of Cash Flows
(unaudited)
Six months ended September 6, 2000
June 30, (Inception) to
---------------------- June 30,
2001 2000 2001
---------- ---------- ----------
Cash flows from operating activities
Net (loss) $ (262,076) $ -- $ (268,235)
Amortization 1,206 -- 1,809
Shares issued for services 151,100 -- (4,614)
---------- ---------- ----------
Net cash (used) by operating activities (109,770) -- (115,326)
---------- ---------- ----------
Cash flows from investing activities
Net cash used by investing activities -- -- --
---------- ---------- ----------
Cash flows from financing activities
Common stock 148,600 -- 148,600
Contributed capital -- -- 5,625
Net cash provided by financing 148,600 -- 154,225
activities ---------- ---------- ----------
Net increase in cash 38,830 -- 38,899
Cash - beginning 69 -- --
---------- ---------- ----------
Cash - ending $ 38,899 $ -- $ 38,899
========== ========== ==========
Supplemental disclosures:
Interest paid $ -- $ -- $ --
========== ========== ==========
Income taxes paid $ -- $ -- $ --
========== ========== ==========
Non-cash investing and financing
activities:
Common stock issued for
acquired technology $ 12,068 $ -- $ 12,068
========== ========== ==========
Number of shares issued for
technology 7,000,000 -- 7,000,000
========== ========== ==========
The accompanying notes are an integral part of these financial statements.
/7/
Intrac, Inc.
(a Development Stage Company)
Notes
Note 1 - Summary of significant accounting policies
Organization
The Company was organized September 6, 2000 (Date of Inception) under the laws of the State of Nevada, as Intrac, Inc. The Company has insignificant operations and in accordance with SFAS #7, the Company is considered a development stage company.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.
Cash and cash equivalents
For the purpose of the statements of cash flows, all highly liquid investments with the maturity of three months or less are considered to be cash equivalents.
Revenue recognition
The Company recognizes revenue on the accrual basis.
Advertising Costs
The Company expenses all costs of advertising as incurred. There were no advertising costs included in general and administrative expenses as of June 30, 2001.
Fair value of financial instruments
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2001. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.
Impairment of long lived assets
Long lived assets held and used by the Company are reviewed for possible impairment whenever events or circumstances indicate the carrying amount of an asset may not be recoverable or is impaired. No such impairments have been identified by management at June 30, 2001.
Earnings per share
The Company follows Statement of Financial Accounting Standards No. 128. "Earnings Per Share" ("SFAS No. 128"). Basic earning per common share ("EPS") calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earning per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti- dilutive they are not considered in the computation.
Segment reporting
The Company follows Statement of Financial Accounting Standards No. 130, "Disclosures About Segments of an Enterprise and Related Information". The Company operates as a single segment and will evaluate additional segment disclosure requirements as it expands its operations.
Income taxes
The Company follows Statement of Financial Accounting Standard No. 109, "Accounting for Income Taxes" ("SFAS No. 109") for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence
/8/
Intrac, Inc.
(a Development Stage Company)
Notes
suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change.
Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non- current depending on the periods in which the temporary differences are expected to reverse.
Recent pronouncements
The FASB recently issued Statement No. 137, "Accounting for Derivative Instruments and Hedging Activities-Deferral of Effective Date of FASB Statement No. 133". The Statement defers for one year the effective date of FASB Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities". The rule now will apply to all fiscal quarters of all fiscal years beginning after June 15, 2000. In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." The Statement will require the company to recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income, if the derivative is a hedge, depending on the nature of the hedge, changes in the fair value of derivatives will either be offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value will be immediately recognized in earnings. The company does not expect SFAS No. 133 to have a material impact on earning s and financial position.
In December 1999, the Securities and Exchange Commission released Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements (SAB No. 101), which provides guidance on the recognition, presentation and disclosure of revenue in financial statements. SAB No. 101 did not impact the company's revenue recognition policies.
Note 2 - Acquired technology
The Company acquired technology from its director valued at $12,068 and recorded amortization expense in the amount of $1206 during the period ended June 30, 2001.
Note 3 - Income taxes
The Company accounts for income taxes under Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes" ("SFAS No. 109"), which requires use of the liability method. SFAS No. 109 provides that deferred tax assets and liabilities are recorded based on the differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, referred to as temporary differences. Deferred tax assets and liabilities at the end of each period are determined using the currently enacted tax rates applied to taxable income in the periods in which the deferred tax assets and liabilities are expected to be settled or realized.
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences are as follows:
U.S federal statutory rate (34.0%)
Valuation reserve 34.0%
------
Total -%
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As of June 30, 2001, the Company has a net operating loss carryforward of approximately $268,000 for tax purposes, which will be available to offset future taxable income. If not used, this carryforward will expire in 2021. The deferred tax asset relating to the operating loss carryforward of approximately $91,000 has been fully reserved at June 30, 2001.
/9/
Intrac, Inc.
(a Development Stage Company)
Notes
Note 4 - Stockholder's equity
The Company is authorized to issue 5,000,000 shares of it $0.001 par value preferred stock and 20,000,000 shares of its $0.001 par value common stock.
On September 6, 2000, contributed capital was received by the Company in the amount of $5,625.
On September 8, 2000, the Company issued 7,000,000 shares of its $0.001 par value common stock to its director in exchange for acquired technology in the amount of $12,068.
During February 2001, the Company issued 1,511,000 shares of its $0.001 par value common stock for consulting services valued at $151,100. (See Note 7.)
On March 26, 2001, the Company completed an offering that was registered with the State of Nevada pursuant to NRS 90.490 and was exempt from federal registration pursuant to Regulation D, Rule 504 of the Securities Act of 1933, as amended. The Company sold 1,486,000 shares of its $0.001 par value common stock at a price of $0.10 per share for total cash of $148,600
There have been no other issuances of common stock.
Note 5 - Going concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. As noted above, the Company is in the development stage and, accordingly, has not yet generated revenues from operations. Since its inception, the Company has been engaged substantially in financing activities and developing its product line, incurring substantial costs and expenses. As a result, the Company incurred a net loss during the period ended June 30, 2001 of $268,235. In addition, the Company's development activities since inception have been financially sustained by capital contributions.
The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to recover the value of its assets or satisfy its liabilities.
Note 6 - Warrants and options
There are no warrants or options outstanding to acquire any additional shares of common stock.
Note 7 - Related party transactions
The Company does not lease or rent any property. Office services are provided without charge by the Company's director. Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein.
The Company entered into an "Asset Purchase and License Agreement" dated September 8, 2000, whereby the Company purchased a working prototype of a vision training technology developed by the Company's president. The Company also acquired an exclusive license for use of certain patents relating to the acquired technology that are currently held by its president. The licensing agreement will remain in effect until either party provides a thirty days' written termination notice via certified mail. In exchange for the acquired technology and exclusive license, the Company issued to its president 7,000,000 shares of its $0.001 par value common stock.
The Company paid its president a salary of $30,000 during the six months ended June 30, 2001.
The Company paid Corporate Regulatory Services, a shareholder of the Company, $32,030 in consulting fees during the six months ended June 30, 2001.
/10/
Intrac, Inc.
(a Development Stage Company)
Notes
The Company paid Chaim Drizin, a shareholder of the Company, $22,500 in consulting fees during the six months ended June 30, 2001.
The Company paid Menada Financial, Inc., a shareholder of the Company, $3,000 in consulting fees during the six months ended June 30, 2001.
/11/
Item 2. Management's Discussion and Plan of Operation
Forward-Looking Statements
This Quarterly Report contains forward-looking statements about our business, financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. If any of our assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, our actual results may differ materially from those indicated by the forward-looking statements. The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of our services, our ability to expand our customer base, our ability to raise capital in the future, the retention of key employees and changes in the regulation of our industry.
There may be other risks and circumstances that we are unable to predict. When used in this Quarterly Report, words such as, "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements, although there may be certain forward- looking statements not accompanied by such expressions. All forward-looking statements are intended to be covered by the safe harbor created by Section 21E of the Securities Exchange Act of 1934.
General
We were formed as a Nevada Corporation on September 6, 2000 under the name Intrac, Inc. We are a development stage company that intends to manufacture and market the mini-Accommotrac Vision Trainer ("AVT). The mini-AVT is a patented electro- optical device that uses the scientific principle of biofeedback to teach people how to voluntarily control the ciliary, or focusing, muscle of the eye. This type of medical instrument has been used to:
1. Help reduce nearsightedness;
2. Enhance athletic performance; and
3. Aid children with learning disabilities.
Dr. Joseph N. Trachtman, president of Intrac, Inc., is a pioneer in the area of vision and biofeedback research. Biofeedback does not belong to a particular field of healthcare, but is used in disciplines ranging from internal medicine to dentistry to physical therapy and rehabilitation. He has over 25 years of experience in the fields of research and development, marketing and sales.
Results of Operations
For the period from January 1, 2001 through June 30, 2001, we generated $600 in revenues derived from an advertising arrangement from a number of doctors that allows their listings on our website, www.accommotrac.com. On June 4, 2001, Intrac, Inc. obtained listing status on the Over the Counter Bulletin Board ("OTC-BB") under the symbol "ITCN".
We incurred expenses for the operating period January 1, 2001 through June 30, 2001, totaling $262,901. Expenditures were primarily due to costs incurred for professional fees, services and general and administrative expenses. Our professional and service expenses were incurred from our public listing process on the NASD's OTC-BB which included the process of the public offering in the State of Nevada and the State of New York, state Blue Sky registrations, attorneys' fees, escrow and EDGARization costs related to the offering, and audits and public filing costs.
/12/
Future Business
Our priorities for the next 3 to 12 months of operations are:
1. Contracting a sub-manufacturer for the mini-Accommotrac Vision Trainer;
2. The continued Development of our corporate Internet site (www.accommotrac.com);
3. Organizing and hiring a sales and management team;
4. Sending out press releases announcing our accomplishments; and
5. Forming strategic alliances to increase our customer base and to build our brand equity.
To further our business plan we have:
1. Created a software package of vision tests that are currently in the final stages of development. The tests include visual acuity, depth perception, color vision, and contrast sensitivity. They will be marketed to professionals via direct mail and telephone follow-up, and the general public via our website www.accommotrac.com.
2. Enhanced our website to include Dr. Trachtman's book "Open Your Eyes and See" a layman's guide to better vision, health and performance. In addition, an on-line brochure on A.D.D./A.D.H.D. is now up and running.
3. Entered into preliminary discussions with a group from Singapore for distribution and/or a joint venture.
4. Compiled the theory and practice of our training program into a course that will be given this fall by Dr. Trachtman at Wagner College, Staten Island, New York. The title of the course is Sports Management and is part of the M.B.A. program.
Liquidity and Capital Resources
Based on the $148,600 raised through the public offering of our common stock we believe that the company has sufficient liquidity to continue its current operations for at least the next 12 to 24 months, however, it would be unlikely for us to continue as a going concern without generating revenues or raising funds through a subsequent sale of our common stock.
All investor inquiries should be directed to Dr. Joseph N. Trachtman, President, Intrac, Inc., 26 Schermerhorn Street, Brooklyn, New York 11201, phone 718-852-7856 or via his web address tracht@accommotrac.com.
/13/
PART II - OTHER INFORMATION
Item 6. Exhibits
Exhibit Name and/or Identification of Exhibit Number
3 Articles of Incorporation & By-Laws
(a) Articles of Incorporation of the Company filed September 6, 2000. Incorporated by reference to the exhibits to the Company's General Form For Registration Of Securities Of Small Business Issuers on Form 10-SB, previously filed with the Commission.
(b) By-Laws of the Company adopted September 8, 2000. Incorporated by reference to the exhibits to the Company's General Form For Registration Of Securities Of Small Business Issuers on Form 10-SB, previously filed with the Commission.
/14/
SIGNATURES
Pursuant to the requirements of the Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Intrac, Inc.
--------------------------------------------------------------------------------
(Registrant)
Date: August 13, 2001
By: /s/ Dr. Joseph N. Trachtman
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Dr. Joseph N. Trachtman, President and Director
/15/
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End of Filing
© 2001 / EDGAR Online, Inc.
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