Oh...but THIS doesn't shock you??::
Form 10QSB for ZKID NETWORK CO
19-Nov-2004
Quarterly Report
Item 2. Management's Discussion and Analysis or Plan of Operation
Plan of Operation
Zkid Network is a progressive family-oriented corporation with offices in Northbrook, IL and Denver, CO. Founded in 2002, Zkid Network set out to provide families with an Internet environment that is safe, fun, and educational. To get a jump-start on this mission, Zkid Network purchased technologies for Internet security from companies such as Children's Technology Group/USURF America and Mozart from Web Safe Technologies, Inc., and then quickly deployed the Zkid Browser.
Zkid Network launched the Zkid Kid-safe browser and is pursuing marketing campaigns to target families directly and also wholesale relationships with B2B partners to get the Zkid Browser in front of millions of potential subscribers. ZKid Network will continue to develop additional content and technology offerings for its internet-based media content site with a focus on increasing the educational and entertainment value to children. This includes, but is not limited to, additional games, cartoons, books in the library and video streaming children's activities for children. In addition, the company will develop additional browsers and themes to accommodate teenagers as well as parents, and provide additional tools to ensure child safety on the internet.
We believe that the Zkid products can be introduced to the public by utilizing co-packaging or co-bundling with other child-oriented products as well as marketing and distribution arrangements through Internet Service Providers (ISPs). The ISP channel provides an internet-enabled audience to distribute our offering. To date, we have signed an agreement with Net Option Inc, based in Milford, IL to provide user support as well as a non-exclusive channel for marketing to additional ISPs, as well as a letter of intent with IVI Communications, Inc of Los Angeles, California. These agreements have an incentive component that shares subscriber revenue. Presently, we have not entered into any other co-marketing or co-packaging agreements. We are currently marketing our KidsKeep product. We believe that our subscriber base will grow in direct proportion to our co-marketing and ISP channel programs. Potential users/subscribers will be directed to the zkidnetwork.com website for registration
Currently, all technology, bandwidth and network capacity is located at secure facilities near Denver, Colorado, with capability to handle 100,000 users/subscribers. If rapid growth were to occur, we would need to purchase additional hardware and hire customer support personnel. We anticipate charging a maximum monthly fee of $9.95 per subscriber. We expect that initial marketing campaigns will offer a free 30-day trial period for potential subscribers. Currently, all technology is designed, tested and deployed by three individuals from the Children's Technology Group/USURF America acquisition who are not under a long term employment agreement with the company. All have signed confidentiality and non-compete agreements.
In the second quarter, we purchased the software rights to the MomsandDads.com software from USurf America, which served as the underlying technology for the Zkid browser software suite and will continue to serve as the platform for future development. The exception to this exclusivity is that one other party has the rights to the source code and may in the future create a similar offering. Although this is a risk, the market is already highly completive and will require a high degree of funding and execution.
There were additional marketing opportunities created to increase corporate visibility, as well as efforts to raise our subscriber base during this quarter. We entered into marketing and sales agreements with IVI Communications, Air Rover Wi-Fi and Deca. We also offered a free trial of our products to Google, Yahoo and Earthlink.
Our short-term cash requirements are approximately $12,000 per month. Our long-term cash requirements will include our continuing fixed operational expenses and marketing expenses associated with responding to subscriber inquiries. The marketing costs will be in direct proportion to the subscriber response generated from co-marketing. The money needed to finance our operational overhead expenses will come from new investors. We may offer common stock on a private stock offering basis.
We are in need of additional cash. We may seek additional capital in order finance our proposed operations. We have not identified any specific future financing sources. Our efforts to finance Zkid and its operations may result in the issuance of equity and debt instruments. This and other future financing activity may result in the dilution of shareholder equity. We expect to incur financial losses for the foreseeable future.
***************************************************************
You sleep well with this plastered all over your truck?
Don't forget to add the quarter-million dollar debt they just took on. This stock is a joke and you are a shameles tout, pumping this trash all over the internet. Shame on you.
jc
