SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2002
___ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File No.: 33-63474
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WEBTRONICS, INC.
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(Name of small business issuer in its charter)
Florida 65-1106840
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Suite 620, 420 Lexington Avenue,
New York, New York 10170
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number: 212-672-9190
____________________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No ____
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The number of shares of stock outstanding at August 13, 2002: 1,054,500 shares
of Common Stock; par value $.0001 per share.
WEBTRONICS, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
JUNE 30, 2002 AND DECEMBER 31, 2001
ASSETS
2002 2001
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Current Assets: (audited)
Cash $ 337 $ 2,385
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Total Assets $ 337 $ 2,385
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Account payable $ -0- $ -0-
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Total Liabilities -0- -0-
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Stockholders' Equity:
Common Stock $.0001 par value, 50,000,000 authorized;
1,054,500 shares issued and outstanding $ 105 $ 105
Additional paid in capital 2,720 2,720
Accumulated Deficit during development stage (2,488) (440)
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Total Stockholders' Equity (deficiency) 337 (2,385)
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Total Liabilities and Stockholders' Equity $ 337 $ 1,829
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See accompanying notes to financial statements
WEBTRONICS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
six months ended Feb 2,2001 (Inception)
June 30, 2002 June 30,2001 to June 30, 2002
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Revenue $ -0- $ -0- $ -0-
Expenses 2,048 -0- 2,448
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Net income (loss) before provision
for income taxes $ (2048) $ -0- $ (2,488)
Provisions for income taxes -0- -0- -0-
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Net income (loss) $ (2,048) $ -0- $ (2,488)
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Net (Loss) per weighted average of shares $ (.002) $ (0.00) $ (.002)
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Weighted average of shares 1,054,500 1,054,500 1,054,500
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See accompanying notes to financial statements
WEBTRONICS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
three months ended Feb 2,2001 (Inception)
June 30, 2002 June 30,2001 to June 30, 2002
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Revenue $ -0- $ -0- $ -0-
Expenses 2,048 -0- 2,448
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Net income (loss) before provision
for income taxes $ (2048) $ -0- $ (2,488)
Provisions for income taxes -0- -0- -0-
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Net income (loss) $ (2,048) $ -0- $ (2,488)
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Net (Loss) per weighted average of shares $ (.002) $ (0.00) $ (.002)
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Weighted average of shares 1,054,500 1,054,500 1,054,500
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See accompanying notes to financial statements
WEBTRONICS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
For the For the
six months six months February 2, 2001
ended June 30, ended June 30, (Inception) to June
2002 2001 30, 2002
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Cash Flows from operations:
Net income (loss) $(2,048) $ -0- $(2,488)
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Net cash used for operations (2,048) -0- (2,488)
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Net (decrease) in cash (2,048) -0- (2,488)
Cash -- beginning 2,385 -0- 2,825
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Cash -- ending $ 337 $ -0- $ 337
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See accompanying notes to financial statements
WEBTRONICS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Organization and Operations
The Company was incorporated under the laws of the State of
Florida on February 2, 2001.
The Company is in the development stage. The Company plans to
develop a website where individuals can obtain foreclosure of
real estate and related mortgage information. The Company
currently has no operations.
Basis of Accounting
The Company's policy is to prepare its financial statements
using the accrual basis of accounting in accordance with
generally accepted accounting principles. The Company has
elected December 31 at its annual year-end.
Interim Financial Information
The condensed unaudited interim financial statements included
herein have been prepared without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission. The
condensed financial statements and notes are presented as
permitted on Form 10-SB and do not contain information included
in the Company's annual statements and notes. Certain
information and footnote disclosures normally included in
financial statements prepared in accordance with accounting
principles generally accepted in the United States of America
have been condensed or omitted pursuant to such rules and
regulation, although the Company believes that the disclosures
are adequate to make the information presented not misleading.
It is suggested that these condensed financial statements be
read in conjunction with the December 31, 2001 audited financial
statements and the accompanying notes thereto. While management
believes the procedures followed in preparing these condensed
financial statements are reasonable, the accuracy of the amounts
are in some respect dependent upon the facts that will exist,
and procedures that will be accomplished by the Company later in
the year.
These condensed unaudited financial statements reflect all
adjustments, including normal recurring adjustments which, in
the opinion of management, are necessary to present fairly the
consolidated operations and cash flows for the periods
presented.
WEBTRONICS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
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, the disclosure of contingent assets
and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Cash and Equivalent
Cash and cash equivalents include cash and cash in banks. The
Company maintains cash and cash equivalent balances at a
financial institution that is insured by the Federal Deposit
Insurance Corporation up to $100,000.
Organization Costs
The Company has incurred various expenditures in the formation
of its corporate and organizational structure. In accordance
with SOP98-5 these costs will be expenses as incurred.
Revenue Recognition
The Company will recognize revenue upon completion of its
services to be rendered or delivery of products to its
customers. The Company has not generated revenues since
inception
Development Stage
The Company is in its development stage. The Company since
inception has not commenced its operations, nor has generated
sufficient working capital to pursue its business objectives.
The accumulated deficit during its development stage is $2,488.
Net Earnings (Losses) Per Share
The Company reports its net earnings (losses) per share in
accordance with SFAS No. 128 "Earnings Per Share". Basic net
earnings (losses) per share is computed by dividing net income
(loss) available to common stockholders by the weighted averaged
number of common shares outstanding.
WEBTRONICS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2002
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Diluted earnings (losses) per share is computed similar to basic
earnings (losses) per share except that the denominator is
increased to include the number of additional common shares that
would have been outstanding. As of June 30, 2002, there are no
outstanding stock options or stock warrants that would have
affected our computation.
NOTE 2 - INCOME TAX
In February 1992, the Financial Standards Board issued Statement
of Financial Accounting Standards No. 109, "Accounting for
Income Taxes." Under SFAS No. 109, deferred assets and
liabilities are recognized for the estimated future tax
consequences between the financial statement carrying amounts of
the existing assets and their respective basis.
Deferred assets and liabilities are measured using enacted tax
rates in effect for the year in which temporary differences are
expected to be recovered or settled. Under SFAS No. 109, the
effect on deferred assets and liabilities of a change in tax
rates is recognized in the period that includes the enactment
date.
NOTE 3 - CAPITAL TRANSACTIONS
On March 15, 2002, certain shareholders entered into a Stock
Purchase Agreement with Callisto Pharmaceuticals, Inc. In
agreement, "Callisto" purchased approximately 99.7% of its
issued and outstanding stock. A Form 8-K was filed on March 19,
2002 reporting the change in control of the registrant. No
change to the capital position of the Company occurred due to
this transaction.
NOTE 4 - PUBLIC REGISTRATION
The Company SB-2 registration was accepted by the Securities and
Exchange Commission on September 24, 2001. It is listed on the
OTC bulletin board under the symbol WEBR. Management paid for
all expenses of registering the securities.
PART 1
ITEM 2 - Management's Discussion and Analysis or Plan of Operation.
Plan of Operation
We anticipate that we will meet our cash requirements for the foreseeable future
with current cash and through the financial support of our current shareholders.
However, during the next twelve months, we plan to satisfy our cash requirement
by additional equity financing.
In order to conserve available cash, the Company has removed its temporary
website. Additional website construction is needed and will include but not be
limited to indexing with numerous search engines, addition of mortgage payment
calculators, mortgage amortization calculators and other related mortgage
analysis tools. Our plan to focus on developing and executing our interactive e
commerce website that will offer our visitors a 24 hour access to mortgage and
foreclosure information.
The Company plans on contacting mortgage broker, mortgage bankers, and other
lenders to provide referrals to consumers accessing the Company's website.
PART II
ITEM 1 - Legal Proceedings.
None.
ITEM 2 - Changes in Securities and Use of Proceeds.
None.
ITEM 3 - Defaults on 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.
a. Exhibits.
Exhibit 99.1 Certification of President.
b. Reports on Form 8-K.
None.
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
WEBTRONICS, INC.
DATED: August 13, 2002 By: /s/ Yanina Wachtfogel
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Yanina Wachtfogel
President and Director