8-K 1 d8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 12, 2002 Eonnet Media, Inc. (Exact name of registrant as specified in its charter) Florida 0-28097 59-3569844 (State or other jurisdiction of (File Number) (IRS Employer incorporation) Identification No.) 6925 112th Circle North, Suite 101 Largo, Florida 33773 (Address of principal executive offices) Registrant's telephone number, including area code (727) 546-6473 Item 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANTS. On March 12, 2002, Brimmer, Burek & Keelan LLP ("BBK") declined to stand for reappointment as the Company's independent auditors because BBK determined it was not independent with respect to the 2001 year-end audit, due to the nonpayment of prior year fees. BBK's audit report on the financial statements of the Company as of December 31, 2000 and for the period from May 14, 1999 (date of inception) to December 31, 2000 expressed an unqualified opinion and included an explanatory paragraph related to the Company's ability to continue as a going concern. The Company believes there were no disagreements with BBK within the meaning of Instruction 4 to Item 304 of Regulation S-K on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure in connection with the audit of the Company's financial statements for the period from May 14, 1999 (date of inception) to December 31, 2000 or for any subsequent interim period, which disagreements if not resolved to their satisfaction would have caused BBK to make reference to the subject matter of the disagreements in connection with its report. During the period from May 14, 1999 (date of inception) to December 31, 2000 and through the present, there have been no reportable events (as defined in Item 304(a)(1)(v) of Regulation S-K) of the type required to be disclosed by that section. The Company has not consulted with any other independent auditors regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed; or the type of audit opinion that might be rendered on the Company's financial statements; or (ii) any matter that was either the subject matter of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) or a reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K). On March 13, 2002, the Company engaged Stark Winter Schenkein & Co., LLP as the Company's independent auditors for the year ended December 31, 2001, replacing the firm of BBK. The change was approved by the Company's audit committee. A letter of BBK addressed to the Securities and Exchange Commission is included as Exhibit 16 to this Form 8-K. Such letter states that such firm agrees with the statements made by the Company in this Item 4. Item 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits: 16 Letter of BBK to the Securities and Exchange Commission included herein pursuant to the requirements of Item 304(a)(3) of Regulation S-K. 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 here unto duly authorized. EONNET MEDIA, INC. March 13, 2002 By: /s/ Vikrant Sharma -------------------------- Vikrant Sharma Chief Executive Officer

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) 2000 1999 --------------- ------------------- Current liabilities Bank overdraft $ 9,032 $ - Accounts payable 340,330 293,105 Customer deposits 281,453 139,447 Other current liabilities 5,409 16,123 Current portion of long term debt 5,673 5,184 Current portion of capital lease 8,876 - Due to related party 99,294 74,970 --------------- ------------------- Total current liabilities 750,067 528,829 Long-term debt 17,260 22,933 Capital lease obligations 17,094 - --------------- ------------------- Total liabilities 784,421 551,762 --------------- ------------------- Stockholders' equity (deficit) Common stock - 1,000,000 no par shares authorized. 1,000,000 and 997,000 shares issued and outstanding as of 2000 and 1999, respectively - - Additional paid-in capital 164,000 - Accumulated deficit (631,191) (144,018) --------------- ------------------- Total stockholders' equity (deficit) (467,191) (144,018) --------------- ------------------- Total liabilities and stockholders' equity (deficit) $ 317,230 $ 407,744 =============== ===================

EONNET TECHNOLOGIES, INC. STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999 2000 1999 ----------------- --------------- Sales ( including related party $ 1,811,813 $ 1,410,881 sales of 2% and 12%) Cost of sales (1,213,504) (726,475) ----------------- --------------- Gross profit 598,309 684,406 Operating expenses Compensation and related benefits 588,865 340,962 Contract labor 130,022 61,678 Auto expense 72,931 40,776 Utilities 49,725 24,550 Depreciation and amortization 41,176 21,152 Selling, general and administrative 200,942 333,364 ----------------- --------------- Total operating expense 1,083,661 822,482 ----------------- --------------- Net operating loss (485,352) (138,076) Other income (expense) Miscellaneous income 15,669 2,959 Interest expense (17,490) (8,901) ----------------- --------------- Total other income (expense) (1,821) (5,942) ----------------- --------------- Net loss $ (487,173) $ (144,018) ================= =============== Basic and diluted net loss per share $ (0.49) $ (0.15) ================= =============== Weighted average shares outstanding 997,738 988,004 ================= =============== Please read accompanying notes. 3

EONNET TECHNOLOGIES, INC. STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) YEARS ENDED DECEMBER 31, 2000 AND 1999 Shares of Total Common Common Additional Accumulated Stockholders' Stock Stock Paid-in Capital Deficit Equity (Deficit) ------------------- ---------------- ------------------ ---------------- ------------------- January 1, 1999 870,000 $ - $ - $ - $ - Stock issued 127,000 Net loss - (144,018) (144,018) - ------------------- ---------------- ------------------ ---------------- ------------------- December 31, 1999 997,000 - (144,018) (144,018) - Stock issued 3,000 Capital contribution - 164,000 164,000 - Net loss (487,173) (487,173) ------------------- ---------------- ------------------ ---------------- ------------------- December 31, 2000 1,000,000 $ - $ 164,000 $(631,191) $ (467,191) =================== ================ ================== ================ ===================

EONNET TECHNOLOGIES, INC. STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999 2000 1999 ------------------- ----------------- CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (487,173) $ (144,018) Adjustments to reconcile net loss to net cash provided (used) by operating activities Depreciation and amortization 41,176 21,152 (Increase) decrease in: Accounts receivable 113,388 (213,089) Other current assets 187 (187) Inventory (12,626) (2,240) Other assets (3,540) (4,342) Increase (decrease) in: Bank overdraft 9,032 - Accounts payable 75,868 293,105 Customer deposits 161,274 19,447 Accrued expenses (10,714) 16,123 ------------------- ----------------- Net cash provided (used) by operating activities (113,128) (14,049) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (38,768) (55,617) ------------------- ----------------- Net cash provided (used) by investing activities (38,768) (55,617) CASH FLOWS FROM FINANCING ACTIVITIES Shareholder capital contribution 164,000 - Payments on long-term debt (5,184) (2,025) Payments on capital lease obligations (5,880) - Payments on advances from related parties (4,319) - Proceeds on advances from related parties - 74,970 ------------------- ----------------- Net cash provided (used) by financing activities 148,617 72,945 ------------------- ----------------- Net increase (decrease) in cash for the year (3,279) 3,279 Cash at beginning of year 3,279 - ------------------- ----------------- Cash at end of year $ - $ 3,279 =================== =================

EONNET MEDIA, INC. UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2000 ASSETS Eonnet Media Pro forma Eonnet Eonnet Consolidated Media Technologies Total Adjustments Total ---------------- ---------------- ---------------- ------------------ ------------------ Current assets Cash $ 332,291 $ - $ 332,291 $ 332,291 Accounts receivable, net (including related party receivables of $26,500 and $0) - 80,433 80,433 80,433 Inventory - 37,366 37,366 37,366 Other current assets 11,256 - 11,256 11,256 ---------------- ---------------- ---------------- ------------------ ------------------ Total current assets 343,547 117,799 461,346 461,346 ---------------- ---------------- ---------------- ------------------ ------------------ Property and equipment (net) 256,292 120,921 135,371 256,292 Goodwill - 64,060 64,060 b 773,000 837,060 Other assets 2,458 - 2,458 2,458 ---------------- ---------------- ---------------- ------------------ ------------------ Total other assets 2,458 64,060 66,518 773,000 839,518 ---------------- ---------------- ---------------- ------------------ ------------------ Total Assets $ 466,926 $ 317,230 $ 784,156 $ 773,000 $ 1,557,156 ================ ================ ================ ================== ==================

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Eonnet Media Pro forma Eonnet Eonnet Consolidated Media Technologies Total Adjustments Total --------------- --------------- ---------------- ---------------- ---------------- Current liabilities Accounts payable and other current liabilities $ 396,167 $ 636,224 $1,032,391 $ - $ 1,032,391 Loans and due to purchasers of common stock 317,375 - 317,375 e 317,375 Current portion of long term debt 41,313 14,549 55,862 55,862 Due to related party - 99,294 99,294 99,294 --------------- --------------- ---------------- ---------------- ---------------- Total current liabilities 754,855 750,067 1,504,922 1,504,922 Long term debt 225,000 34,354 259,354 259,354 --------------- --------------- ---------------- ---------------- ---------------- Total liabilities 979,855 784,421 1,764,276 1,764,276 --------------- --------------- ---------------- ---------------- ---------------- Shareholders' deficit Preferred stock - - - - Common stock 17,957 - 17,957 b 10,000 27,957 Additional paid-in capital 1,731,322 164,000 1,895,322 a (164,000) 2,494,322 b 763,000 Stock subscription receivable (79,525) - (79,525) (79,525) Accumulated deficit (2,182,683) (631,191) (2,813,874)a 164,000 (2,649,874) --------------- --------------- ---------------- ---------------- ---------------- Total stockholders' equity (deficit) (512,929) (467,191) (980,120) 773,000 (207,120) --------------- --------------- ---------------- ---------------- ---------------- Total liabilities and shareholders' equity (deficit) $ 466,926 $ 317,230 $ 784,156 $773,000 $ 1,557,156 =============== =============== ================ ================ ================

EONNET MEDIA, INC. UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2000 Eonnet Media Pro forma Eonnet Eonnet Pro Forma Consolidated Media Technologies Total Adjustments Totals ------------------ --------------- -------------------- ----------------- ------------------ Sales $ 20,670 $1,811,813 $ 1,832,483 $ 1,832,483 Cost of sales - (1,213,504) (1,213,504) (1,213,504) ------------------ --------------- -------------------- ----------------- ------------------ Gross profit 618,979 20,670 598,309 - 618,979 Operating expenses Depreciation and amortization 35,690 41,176 76,866 a 257,667 334,533 Advertising and promotion 117,903 - 117,903 117,903 Payroll and related taxes 768,890 588,865 1,357,755 b 120,000 1,477,755 Contract labor - 130,022 130,022 130,022 Auto expense - 72,931 72,931 72,931 Utilities - 49,725 49,725 49,725 Website expense 139,284 - 139,284 139,284 Legal and professional fees 287,181 - 287,181 287,181 Other operating expenses 232,991 200,942 433,933 433,933 ------------------ --------------- -------------------- ----------------- ------------------ Total operating expense 1,581,939 1,083,661 2,665,600 377,667 3,043,267 ------------------ --------------- -------------------- ----------------- ------------------ Net operating loss (1,561,269) (485,352) (2,046,621) (377,667) (2,424,288) Other income (expense) Interest income 24,202 - 24,202 24,202 Miscellaneous income - 15,669 15,669 15,669 Interest expense 28,254) (17,490) (45,744) (45,744) ------------------ --------------- -------------------- ----------------- ------------------ Total other income(expense) (4,052) (1,821) (5,873) (5,873) ------------------ --------------- -------------------- ----------------- ------------------ Net loss $(1,565,321) $ (487,173) $ (2,052,494) $ (377,667) $ (2,430,161) ================== =============== ==================== ================= ================== Basic and diluted loss per share (1.22) (0.49) (0.19) (0.74) ================== =============== ==================== ================= ================== Weighted average common shares outstanding 1,280,549 997,738 2,000,000 3,280,549 ================== =============== ==================== ================= ==================

Filing Compare · EONNET MEDIA INC