UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 2005 |
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OR |
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TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to |
COMMISSION FILE NUMBER 000-32621
INTAC INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
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NEVADA |
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98-0336945 |
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(State or other jurisdiction of |
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(IRS Employer Identification No.) |
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Unit 6-7, 32/F., Laws Commercial Plaza |
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N/A |
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(Address of principal executive offices) |
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(Zip Code) |
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011 (852) 2385.8789 |
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(Registrant’s telephone number, including area code) |
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N/A |
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(Former name, former address and former |
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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 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. ý Yes o No.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date: 22,121,455 shares of $0.001 par value common stock outstanding as of May 10, 2005.
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
INTAC INTERNATIONAL, INC. AND
SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(expressed in U.S. Dollars)
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March 31, |
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December 31, |
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2005 |
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2004 |
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(Unaudited) |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
1,907,146 |
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$ |
5,532,928 |
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Trade accounts receivable (net of allowance for doubtful accounts of $0 in 2005 and 2004) |
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17,205,722 |
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17,549,905 |
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Inventories |
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8,454,515 |
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317,390 |
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Foreign sales tax receivable |
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47,726 |
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— |
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Short term note receivable |
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— |
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365,370 |
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Deposits paid |
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65,974 |
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150,270 |
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Total current assets |
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27,681,083 |
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23,915,863 |
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Property and equipment, net |
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1,809,052 |
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1,667,709 |
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Other assets |
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802,705 |
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968,387 |
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Advances to officers of subsidiaries and employees |
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62,082 |
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32,932 |
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Internet portal database gateway, net |
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335,545 |
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350,769 |
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Acquired software, net |
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1,787,368 |
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1,976,322 |
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Goodwill |
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12,831,790 |
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12,777,790 |
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Total assets |
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$ |
45,309,625 |
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$ |
41,689,772 |
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Liabilities and Stockholders’ Equity |
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Current liabilities |
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Trade accounts payable |
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$ |
5,038,484 |
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$ |
1,316,597 |
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Accrued expenses |
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414,066 |
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452,484 |
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Income taxes payable |
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983,165 |
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974,699 |
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Other liabilities |
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627,245 |
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627,243 |
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Deferred revenue |
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198,931 |
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302,457 |
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Due to officer of subsidiary |
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316,057 |
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315,448 |
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Due to shareholder |
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115,664 |
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115,664 |
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Deposits received |
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157,753 |
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— |
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Total current liabilities |
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7,851,365 |
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4,104,592 |
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Commitments and contingencies |
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Stockholders’ equity |
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Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding |
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— |
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— |
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Common stock, $0.001 par value, 100,000,000 shares authorized; 22,121,455 shares issued and outstanding for both periods |
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22,121 |
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22,121 |
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Additional paid-in capital |
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33,321,722 |
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33,263,389 |
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Retained earnings |
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4,077,863 |
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4,252,992 |
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Accumulated other comprehensive income |
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36,554 |
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46,678 |
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Total stockholders’ equity |
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37,458,260 |
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37,585,180 |
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Total liabilities and stockholders’ equity |
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$ |
45,309,625 |
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$ |
41,689,772 |
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The accompanying notes are an integral part of these consolidated financial statements.
2
INTAC INTERNATIONAL, INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed
in U.S. Dollars)
(Unaudited)
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Three Months Ended March 31, |
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2005 |
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2004 |
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Revenues |
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Distribution business |
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$ |
12,973,988 |
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$ |
8,435,170 |
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Career development services |
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1,685,145 |
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— |
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Total revenues |
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14,659,133 |
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8,435,170 |
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Cost of revenue |
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Distribution business |
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12,058,359 |
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8,075,767 |
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Career development services |
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335,480 |
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— |
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Total cost of revenue |
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12,393,839 |
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8,075,767 |
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Total gross profit |
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2,265,294 |
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359,403 |
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Operating expenses |
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Product development |
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872,126 |
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169,767 |
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Distribution expenses |
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133,908 |
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130,412 |
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Selling, general and administrative expenses |
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1,488,699 |
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701,320 |
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Total operating expenses |
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2,494,733 |
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1,001,499 |
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