et3.com Inc. TM
Ó
Note: This executive summary makes mention of shares, stock, and
private placement and compensatory stock offerings associated with current
business plans of interest to prospective licensees. No shares are being offered to the
public. A Stock-offering prospectus
discloses risk factors that are beyond the scope of this document. This document is not to be construed as an
offering of shares, or a solicitation to invest. SEC regulations forbid the offering of shares
to the public without filing a registration statement.
Summary of The
Company
Vision
We believe
that a new field of transportation technology is ready for commercial
exploitation. This field is known as "Evacuated Tube Transport"
or ETT. ETT seeks to use evacuated tubes for the components of
transportation infrastructure. The evacuated tube transport structures promise to allow
transportation that is hundreds of times more efficient than is possible with
aircraft, boats, automotive, and rail transportation systems now in use.
We further believe that ETT utilization will fuel much of the worldwide
technological and economic advance that will occur over the next thirty
years. Management will attempt to position ET3.COM INC. so as to be the beneficiary
of this technological and economic advance. For this reason, Management
believes that Evacuated Tube Transport will grow to supplant the transportation
industry that is in place today. There can, however, be no assurances
that this will be the case.
Aim
Our aim is to
generate returns for our shareholders by acting now to acquire control of
important blocks of intellectual property (patents and trade secrets) in the
ETT field. We currently own the patent and trade secret rights to
Evacuated Tube Transport, the first practical evacuated tube transport
technology. We believe that these ultra efficient and environmentally
benign systems, will become key components of numerous
future worldwide transport systems. ET3.COM INC. intends to take full
advantage of the generic nature of this unique technology by securing the
intellectual property rights on the lion's share of all specific applications,
new devices, and novel systems issuing from it. Management also believes
that we are well positioned to gain control of other major intellectual
property by developing new patents and trade secrets through our own internal
efforts and by developing patent-exploitation agreements for the patents and
trade secrets belonging to others.
Customers
Our patent and
IP portfolio will form the basis for constructing a network of collaborative
joint venture activities, aimed at product creation, with industrial partners
from the vehicle transportation, electric power, and civil engineering, and
manufacturing industries. This network is intended to provide both
short-term revenues from the licensing of our intellectual properties and
long-term revenues from the royalties from successful products.
Financial
Strategy
Our financial
strategy is to grow the Company's value through expanding licensing and royalty
revenues. We believe that early revenues will come primarily from up
front fees paid to the Company by our industrial partners under licensing
agreements for the use of pieces of Company intellectual property for product
development and sales. In addition, we expect to receive payment for
activities supporting these partnerships during product development. We
further believe that long-term revenues will flow from royalties received from
successful products developed by our customers.
Products
The product
of et3.com Inc. is mainly intellectual property (IP) relating to evacuated Tube
Transport (ETT). This IP is leased, non-exclusively for an initial license fee
of $100 and a 6 percent use royalty. The ETT IP is used by licensees desiring
to participate in the ETT market with their goods, services, or assets. The
Licensee agrees to license any improvements they may make to ETT to et3.com
Inc. The ETT license includes license to use (for ETT related use only) any such
contributions that a participating licensee shall make. A portion of the
royalty income is earmarked for distribution to participating Licensees
according to their degree of participation, thus the license gains value, the
licensee leverages their contribution, and the company maintains market
dominance.
Under the
terms of the ETT license, a Licensee may sub-license new licensees under
substantially identical license terms. A commission on any sub-license royalty
income is paid to the underwriting licensee. In addition, and as incentive to
sub-license the ETT technology, the licensee is granted a share of stock for
every sub-license underwritten. A portion of the royalty is distributed to
shareholders as a dividend.
Licensees are
given access to the ever-expanding ETT technology pool and database, over the
internet. A marketplace is planned whereby licensees may collaborate, submit
ETT proposals, vote on proposals, and bid on accepted proposals. This
marketplace is implemented at low cost over the internet.
Management
believes that this licensing arrangement will result in rapid development of
ETT systems by Licensees. Licensees can
leverage existing goods, services or IP at very low cost to participate in a
new and expanding market. As more
licensees participate, the license will become more valuable and this will
attract additional licensees, leading to a “snow ball effect”. Similar IP License pools,
and collaborative efforts are revolutionizing growth in the electronics and
computer software and hardware markets. To management’s knowledge no companies
in the transportation field are promoting such IP licensing strategy. There can
be no assurance that the company can attract sufficient licensees in key fields
to spark the growth rates of the electronics industry.
We believe
that the development of ETT technology by licensees, will lead to a steady and
rapid product progression from specific route and cargo applications to
sophisticated world transport networks. This progress can be predicted as
a direct result of our unique ability to substantially eliminate aerodynamic
and rolling resistance, and to recycle energy normally wasted when a vehicle
decelerates.
In the near
term (two to five years), we expect ETT technology to be immediately applicable
to high priority mail and bulk cargo transport technologies.
In the
mid-term (five to eight years), By fine-tuning the
performance of these first devices, Management expects further applications in
advanced, low cost, local, regional, and international transportation systems
for humans and cargo. Management
believes that the capacity of the ETT system to function as a super efficient
energy and water transport device that will be exploitable to approximately double
the amount of energy a electric utility company can sell without consuming
additional fuel.
In the long
term, by tailoring the ETT system to satisfy even more stringent performance,
alignment, and strength standards, we anticipate the future possibility of
space launch and retrieval systems.
Market
The current
worldwide market for transportation is around 5 trillion dollars. The demand for transportation is 13% of the
world economy. In developed countries it is 20%. In the
Very closely
related to the transportation of people and cargo is the transportation of
energy; and taking off from it, is the use of the ETT system to enable high
efficiency energy transportation. The electrical energy market in the
Competitive
Position
To the best
of our knowledge, we are the first company organized to make a business and a
profit from capturing and exploiting the intellectual property of Evacuated
Tube Transport Technology. Marketing experts claim that being first is
better than being better. As a matter of corporate policy, Management
intends to energetically exploit the Company's position of being first.
Et3.com Inc. intends to be everywhere in the field: in the universities, in the
government research labs, in the technology partnership offices of its future
partnership corporations, and in the U.S. Patent and Trademark Office.
Patents
We own the
worldwide rights to the economic exploitation of United States Patent Number
5,950,543 (the "Patent") issued
Cash
Requirements
In order to
conserve resources, the Company's executive officers have agreed to work
without pay until such date as the Board of Directors decides that the Company
has attained capital sufficient to pay their salaries. The Company can continue in its present mode of
operations for at least a year, and possibly indefinitely, without any
proceeds. Any and all proceeds will be used to accelerate
the Company's progress and amplify the Company's influence on Evacuated
Tube Transport.
Company
Contact
Daryl Oster, CEO;
Et3.com Inc.; P.O. Box 1423;
Crystal River Florida 34423-1423 (physical address is: 222 NE 2nd
Court in Crystal River)
Telephone: (352) 795-5415
E-mail: et3@et3.com
RISK FACTORS
Purchase of
a license to use the ETT technology involves a high degree of risk.
Prospective licensees should carefully consider all of the information in this
summary, including the following risk factors.
We are a
Startup Company in Advanced Technology
We are a startup
company seeking to exploit an advanced technology, Evacuated Tube Transport.
The individual components of the system are, by themselves well understood, but
to date have not been tested together, and remain theoretical. Because a
working ETT system has not yet been built, progress in the field is being
driven by research and invention, not by products and sales. To the best
of our knowledge, no proven products based on ETT currently exist anywhere in
the world. There can be no assurance given that we will ever be
successful in our aim to revolutionize the transportation industry by
exploiting the technology of ETT and to profit from the development of
products, product sales, licensing fees, and royalty streams.
Our
Intellectual Property Protection May Not be Adequate
Our strategy
is to expand our intellectual property (i.e., our existing patent license and
trade secrets in ETT) and to use this intellectual property to deter
competitive encroachment, as well as to develop products, product sales, license
fees, and royalty streams based on this intellectual property. There is
no assurance that the intellectual property, as currently controlled by us or
as expanded in the future, will be adequate either to protect us from
competitive encroachment from existing or future companies in such fields as
Transportation, vehicle manufacture, energy production, etc.; or to generate
significant products, product sales, license fees,
and/or royalty streams based on this intellectual property.
License
Fee is non-refundable
The $100
license fee is non-refundable, and may be lost if the plans to implement ETT
fail.
We Have No
Operating History
We
incorporated in
We are
Dependent Upon Key Persons
The vision
and persistence, and technical skills of Daryl Oster, are currently and in the
foreseeable future, the major driving force of the company. Additional Management, organizational and
selling skills are essential to our success. We do not carry key person life
insurance on any of our key persons. The loss of the services of any of
our executive officers or other key personal could have a material adverse
effect on the business, results of operation, and financial condition of the
Company.
Our future
success also depends on our ability to attract and retain highly qualified
technical and managerial personnel. Competition for such personnel is intense
and there can be no assurance that we will be able to retain our key technical
and managerial employees or that we will be able to attract and retain
additional highly qualified technical and managerial personnel in the future.
The inability to attract and retain the necessary technical and
managerial personnel could have a material and adverse effect on our business,
results of operations, and financial condition. The ability of the company to
attract needed key persons is limited by lack of financing. The incentive of stock may not be sufficient
to attract and hold key persons.
Voting
Control is in the Hands of a Single Shareholder
Our
stockholders are not entitled to cumulative voting rights. Consequently,
the election of directors and all other matters requiring stockholder approval
will be decided by majority vote except as otherwise provided by law.
Mr. Daryl Oster currently owns 77 percent of the outstanding common stock. Mr. Oster has an option to at all times be
issued stock to maintain at least 51 percent of the outstanding shares. and, assuming all of the Shares offered hereby are sold,
after the Offering , Mr. Oster will own 51 percent of the outstanding common
stock. Thus, Mr. Oster is, and will be in a position to control the election
of our Board of Directors and our management and policies. (See
"Security Ownership").
We May
Have a Need for Additional Financing
Based on
current projections, we may decide to raise additional capital in the future in
order to fully achieve our goals. There can, however, be no assurance
that such funds will be available, or if available, on terms acceptable to
us. If we are unable to obtain such funds, our business operations could
be adversely affected which, in turn, could cause a deterioration of our
financial condition and our ability to generate revenue.
There May
be Competition in the Future
If the
technology of ETT becomes a viable method for Transportation, the competition
to control the intellectual property of this technology and to develop and
market the products based on this technology will be substantial. We
believe our future competitors could include existing companies engaged in the
field of transportation, virtually all of which have greater financial,
engineering, R&D, production, marketing, and distribution resources than
the Company (see "Business").
We are Subject to Government Regulation
Transportation
products are regulated in many ways by the government at various levels.
Products and activities based on ETT may likewise become subject to future
governmental regulation. It is possible that such regulation would come
to affect our business in ways that are difficult or impossible to predict.
There are
a Limited Number of Outside Directors
The Company
has one director. None is an outside director. (See
"Management - Directors and Executive Officers").
Our
Articles of Incorporation Provide for Indemnification of Officers, Directors,
Employees and Agents
The Articles
of Incorporation of the Company, as required by law in the state of
incorporation, provide that the Company shall indemnify any person who incurs
expense by reason of such person acting as an officer, director, employee, or
agent of the Company and that this indemnification is mandatory in all cases in
which indemnification is permitted by law.
Summary of Financial Information
|
Summary of Pre-Operations Expense |
||
|
|
Inception through
11-30-99 |
|
|
Income |
$1400 |
|
|
Pre Operating Expense |
($900) |
|
|
Net Income |
$500 |
|
|
Net Income Per Share |
3.8 Cents |
|
As of December 31, 1999
|
ASSETS |
|
|
Current Assets: |
|
|
Cash Deposits |
$1400 |
|
Participating Licensee contributions |
$20,321 |
|
|
|
|
Organization Costs |
$280 |
|
Patent assignment and IP |
$50,000 |
|
|
|
|
Total Assets |
$72,001 |
|
LIABILITIES &
STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
Current Liabilities: |
|
|
Accounts Payable |
($620) |
|
|
|
|
Total Current Liabilities |
($620) |
|
Stockholders' Equity: |
|
|
Common Stock Issued |
$70,321 |
|
Stock Issuance Expense |
0 |
|
Retained Earnings |
$900 |
|
Net Income |
$500 |
|
Total Stockholders' Equity |
$71,381 |
|
|
$72,001 |
LEGAL COUNSEL
Jennifer
Hampton represents the company in licensing, trademark, unfair competition,
copyright, advertising, internet and other legal matters. Ms. Hampton is an intellectual
property/internet attorney at one of the top ten law firms in the country,
where she counts numerous internet companies among her clients. She received her J.D. from Fordham
University School of Law, her M.A. from Fordham Graduate School of Arts and
Sciences, and her B.A. from Hamilton College.
Ms. Hampton provides legal services to the company in exchange for
stock valued at ten shares per one hundred dollars worth of services normally
billed at the rate of $250/hr (see Compensatory Stock Program).
LEGAL PROCEEDINGS
Neither the
Company nor its property is the subject of any current or pending adverse legal
proceedings.
MANAGEMENT
Directors
and Executive Officers
The Company's
directors and executive officers, who will hold office until removal or
resignation, are as follows:
|
Name |
Age |
Position |
Date of
Election/Appointment |
|
Daryl Oster |
37 |
CEO |
May 21, 1999 |
|
|
|
|
|
|
|
|
|
|
Director and
Executive Officer Compensation
We currently
do not pay monetary compensation to our directors and executive officers for
their services. In the future, after we have completed our startup phase
of business (see "Business - Startup Phase"), executive officers may
be compensated for their services as executive officers or directors.
Presently, all executive officers of the Company are serving without
compensation. This is one of the reasons that we are able to function for
a year with or without proceeds.
Biographical
Sketches of Management
Daryl
Oster was born in Washington DC in 1962, He studied Mechanical
Engineering from ‘80 to ’84 At Walla Walla College
Washington. His
experience includes Mechanical design, in marine, aerospace, and
commercial fields. Mr. Oster has served
as an elected City Council member, and on a 5 county planning board. He has held series 7, 63, and 24 securities
broker and principal licenses. Mr. Oster
is an avid inventor; his farm heritage and work ethic are evident in his common
sense approach, steadfast determination, and respect for the environment. His wide skill set has been refined into an
innovative, simple, low cost solution to the transportation dilemma.
TECHNICAL ADVISORS
Technical
Advisory Committee
The Company
has formed a Technical Advisory Committee (TAC) which serves to advise on legal, technical and scientific matters relating
to exploiting the field of ETT for economic gain. The Committee is
composed of individuals with exceptional backgrounds in their fields.
Each member is an expert in an area critical to the success of et3.com
Inc. All members serve on the Technical
Advisory Committee in exchange for Company stock or stock options. A few vacancies exist on this Committee, preference is given to licensees, and
shareholders.
Biographical
Sketches of Technical Advisors
John
Alger – Sales VP, Ormond Beach FL
Max
Barnes – CPA, Crystal River FL
Ronald
Cohen. – CPA, Crystal River FL
Hansel Escobal – Virtual Reality Expert, Ft. Lauderdale FL
John Hambel. – Internet Service
Provider, Crystal River FL
Jennifer
Hampton- Attorney, New York NY
Edmond McKean - Civil Engineer, Inverness FL
Douglas
Miner - Virtual Reality Expert, Inverness FL
Nick
Nicholson – Civil Engineer, Brooksville FL
Brenda
Schneidereit, - Consultant, Crystal River FL
Clark
Stillwell – Attorney, Inverness FL
BUSINESS
Our
Vision
We believe
that the field of Evacuated Tube Transport will power much of the worldwide
technological, social, and economic advancement that will occur over the next
thirty years. Evacuated Tube Transport (ETT) is the technology of
eliminating resistance to travel by the use of evacuated tubes. ETT could lead to transportation systems
hundreds of times more efficient than the best current systems in public
use. Management believes that this enormous efficiency potential will
allow Evacuated Tube Transport to create an industry that could supplant the
transportation systems that are in place today.
et3.com's mission is to provide the world with technology enabling
low cost, non-polluting, 4-hour transportation between any major cities by the
year 2032 using the ETT transport system.
Humans are by nature mobile; increase a person’s mobility and you
increase their power to accomplish. Transportation advances chronicle human
history: Domestication of the horse, shoes, the wheel, canals and barges, the
roman road, the Viking boat, the sailing ship, the locomotive, the steam ship,
the motor car, the airplane, the jetliner, the rocket. With
every transportation advance comes a jump in the standard of living. ETT
is human kind’s future. ETT technology is so revolutionary that it compares to
the improvement the steam locomotive was over horse and wagon; or the airplane
over the train or ship. Imagine the world of the future with a fully mature ETT
transportation system;
* Every home, business and public building has access to 15 minutes; travel to
any other location in the local area, 30 minutes; to any location in the state,
2 hours to any location in the country; and 4 hours to any mainland location in
the world.
* Travel when and where you want at any time, no schedules to check.
* Blizzards, hurricanes, and ice storms never slow down the ETT.
* The Air in any city is fresh, clean and clear.
* The cost to travel is so low that advertisers pay for most trips.
* Accidental traffic death and property loss is 1/10th what it is now.
* Reduced demand for petroleum, results in a wide variety of low cost plastics.
* Place an order for exotic fruits, clothing, or bicycle, and have it delivered
in hours.
* Market to anyone in the world, transportation cost is no longer a barrier.
* New York to Washington DC in 10 min.
* A few will still ride horses or motorcycles, fly airplanes or race boats for
entertainment.
* Noise levels are dramatically less.
* Less vigilance necessary to avoid being run over by a car.
This is our vision;
It sounds incredible but we believe it will happen.
Just like the transcontinental rail project in the 1800s, ETT will take
unprecedented effort to bring it to fruition.
In less than a generation the telephone replaced the telegraph,
electricity replaced the kerosene lamp. Many of us remember black and white
television and witnessed the first moonwalk. Some cling to the old, but most
welcome superior ways. We believe ETT will spark unprecedented creativity and
human potential. With cheap fast
reliable transportation available, the world’s petroleum resources can be used
for more lasting endeavors. Cleaner, faster, safer, cheaper, and enduring for
generations, we believe that ETT is the future of transportation.
The Company’s
aim is to generate long-term returns for our shareholders by acting now to
capture a rewarding portion of the future of the Evacuated Tube Transport
industry. Management believes that now is the right time to gain control
of important blocks of intellectual property (patents and trade secrets) in the
Evacuated Tube Transport field. ET3.COM INC. already controls the patent
and licensing rights to the ETT patent by Daryl Oster, a technology that
Management believes will be a key component of future Evacuated Tube Transport
Systems. The Company is positioned to attempt to gain control of other
prime intellectual property by developing new patents and trade secrets through
its own internal efforts, and by developing patent-exploitation agreements for
the patents and trade secrets belonging to others.
Management's
strategy for generating favorable returns for the Company's shareholders
combines a technical strategy for exploiting the field of Evacuated Tube
Transport with a financial strategy for building revenues and stock value.
Our technical
strategy is to capture and exploit crucial Evacuated Tube Transport
intellectual property in order to drive the development of the field. An
important beginning is our ownership of rights to the patented ETT technology.
Management intends, through additional patent development, to further enlarge
et3.com Inc.'s patent portfolio. We have
also targeted technology exploitation agreements with universities and
government labs that are leaders in technologies relating to Evacuated Tube
Transport.
The Company’s
intellectual property will form the basis for constructing a network of joint
venture activities with industrial customers from the transportation,
manufacturing, and construction industries aimed at the creation of advanced
products based on Evacuated Tube Transport. Such a customer network is
intended to provide two kinds of revenues: short-term revenues from the
licensing of the Company's intellectual properties, and long-term revenues from
the royalties payable to the Company that result from successful
products. Management believes that our customer network, together with
our intellectual property position, will provide us with the business
foundation to develop and or acquire related key Intellectual Properties, and
right of ways.
Our financial
strategy is to grow the Company's stock value through expanding technology
licensing and product royalty revenues. The goal is to own, through
intellectual property development, a meaningful portion of the entire revenues
generated in the field of Evacuated Tube Transport. It is the goal of
owning a meaningful portion of the entire revenues generated in the field of
Evacuated Tube Transport, that the Company was formed to pursue. It is
our firm belief in the reality of that goal that has kept our executive
officers working full time without pay for an extended period of time, in the
pursuit of it.
We believe
that early revenues will come from up-front fees paid to the Company by
industrial customers under licensing agreements for the use of pieces of the Company’s
intellectual property for product development. The Company believes that
long-term revenues will flow from royalties received from successful products
developed by our customers and from sales of expanding product families.
All three revenue sources:
licensing fees, royalty payments, and related product sales will enhance the
Company's stock value. Early revenues from licensing fees will be used to
grow our technology base. Longer-term revenues from royalty streams and
Company products will be used with the intent to dominate the field of
Evacuated Tube Transport with the aim to maximally grow our stock value.
Why
Evacuated Tube Transport?
It is fair to
say that the enormous economic boom of the last 225 years in the United States;
and since recorded history in the world; has been driven largely by
transportation advances. The never-ending quest to move products and
people as fast, safe and inexpensively as possible is universal. The roman road
and water transport aqueducts doubled the world standard of living 2000 years
ago. The development of the ocean sailing ship doubled the standard of living
during the 16th century. The railroads and trains doubled it again
in the 1800s. In the first part of this
century the automobile and airplane did it again. The long, stable exponential
growth curve of the world transportation market is undeniable.
Management
estimates that the world transportation market (vehicles, fuel, roads, etc.)
will exceed 5 Trillion dollars annually by the close of 2000.
Much of this
5 trillion dollar annual market depends upon the continued growth of the
average speed and efficiency of transportation. Without continued
improvements, this growth cannot be sustained.
It is clear to
many observers that the end to the continuously faster and more efficient
vehicle is here. The road infrastructure is crumbling faster than it can
be built. The average speed on most interstates is less than it was in
the 50s because of inadequate capacity.
It is clear that the entire world population cannot enjoy the same
standard of transportation that we enjoy in the
It is our
view as well. The end of the ever-more expensive transportation is the
beginning of Evacuated Tube Transport. The automobile and airplane are
reaching their limitations. The best alternative is EET. Evacuated
transport the way nature maintains stable travel of the planets, solar system,
and universe for that matter. Let’s
mimic the perpetual motion of the heavenly bodies and get back in tune with nature.
ET3.COM
INC.'s Evacuated Tube Transport
The Patented Evacuated Tube Transport Technology ultimately offers:
·
Speeds faster than one mile per second.
·
·
·
Much lower cost.
·
Almost no pollution.
·
Enduring for generations
·
Immune to bad weather.
·
No schedules to conform to.
·
For a given speed, safer than any other
mode of transportation.
A car traveling at 70 miles per hour will
quickly coast to a stop if the engine is turned off. A satellite in orbit will coast at speeds of
25 thousand miles per hour, for years with no energy input. The difference is
aerodynamic drag and rolling resistance. In space there is no drag or
resistance Since it is impractical to put vehicles up
in space, let’s bring space conditions down to earth, in a tube that is, an Evacuated Tube. et3.com
(Evacuated Tube Transport Technologies) is dedicated to bringing ETT (Evacuated
Tube Transport) to the world.
Abstract of the invention:
An evacuated tube transport (ETT) system
comprises:
Evacuated
tubes constructed along a travel route for both directions; Capsules to
transport occupants or cargo within the tubes; Equipment providing continuous
transfer to tube while preserving vacuum; Capsule suspension that substantially
eliminates drag; Coordinated capsule acceleration means; Energy recovery
capsule braking; Vibration control structures; Tube alignment devices;
Automatic capsule switching and synchronization; Automated operation,
inspection, and maintenance; Methods of construction; and Redundant data,
safety, and security systems.
Low and high
technology embodiments are comprehensively disclosed in the ETT patent. Possibilities include replacement or
augmentation of: vehicles, power lines,
energy storage devices, power plants, heaters, air conditioning, water and
sewer pipes, and communication cables and satellites. ETT provides continuous, environmentally
benign, sustainable, local and international travel. Aerodynamic limitations, weather exposure,
and obstacles are essentially eliminated. The system enables a quantum improvement in
safety, speed and efficiency.
ETT systems can be
divided into three basic categories according to design speed. 1) Low speed up
to 300 MPH, to compete with current ground transport. 2) Medium speed up to 1200 MPH, to compete
with air transport. 3) High speed to 24,000 mph, without any current
competition.
Maglev, and Linear Motor technologies are
preferred to rolling contact elements as a suspending and powering means to
conduct a capsule through an evacuated tube. This fully exploits the high-speed
potential of ETT. With the elimination of aerodynamic forces, magnetic
suspension systems are better for ETT systems with a design speed greater than
about 300 mph. Conventional rolling elements are cost effective for ETT systems
having a design speed less than about 300 mph.
Challenges of ETT are mainly economic, or related to travel at ultra high
speed or in an evacuated environment, they include: High capital requirements with long
amortization periods (for a given speed and capacity, capital cost can be much
less for ETT). As with roads and tracks, the speed potential is limited by
economic considerations over difficult topography, or oceans, however for a
given cost and capacity speed potential is much greater than other forms of
ground transport. At hyper velocities any malfunction of seals or compromise of
the integrity of the tube could destroy capsules because of extreme kinetic
energy, thus security of the tube gains importance as speed increases. Reliance
on life support systems is a small price to pay for the many advantages
produced by an evacuated environment. Once the trip has started there is no
stopping or turning back (unless an emergency occurs) so human needs must be
taken into consideration according to the length of the trip. Limiting inflow
to the capacity of the system can minimize congestion at busy terminals. Some passengers may experience
claustrophobia, this can be mitigated by drugs, or preferably, suitable sensory
stimulation. Prolonged accelerations can
cause discomfort; proper seat design can reduce this. An earth quake, mud slide, flash flood or
tidal wave could damage the tube killing many of the occupants and releasing
tremendous destructive energy; prudent design precautions mitigate this as
known to those versed in the construction and civil engineering arts.
Geological movements of the earth are mitigated by an alignment system. Failure of one of the capsules could cause
the failure of many, so reliability is paramount. Failure of the braking system
could result in the destruction of the terminal and all occupants of the tube,
redundant systems prevent this. Any air leaking into the system must be removed, this results in an energy overhead that can be
significant under low use or short trip conditions. Management believes that the challenges are
surmountable with a collaborative development effort.
Advantages of ETT over traditional transportation methods are
many; safety, efficiency, speed, convenience and ecology are the main
advantages.
Safety: Potential for destruction varies as the
square of velocity and linearly with mass.
For a given speed the object with lighter mass is the safer. The ETT system minimizes moving mass, thus
safety is greater. ETT enables hyper velocities, hence more potential for destruction exists due
to that velocity. For any given speed
over about 20 mph and distances over about 10 miles ETT is the safest method of
travel. Safer than walking because while in the tube it is
improbable to be hit by a motor vehicle, bullet or bolt of lightning. Safer than motor vehicles because the path of
travel is always under control; no collisions with a fixed object or another
motor vehicle, less mechanical failure to worry about, not subject to adverse
weather. Safer than trains because most
train accidents are caused by something on or wrong with the track, with ETT
this is virtually impossible. ETT is
safer than marine travel because of no weather exposure; and because chance of
collision is mostly eliminated. Safer than flying because
most plane crashes are due to; bad weather, human error, or mechanical failure,
all of which are drastically reduced by ETT. It is impossible for children, pets, or
animals to wander into the way to be run over. No fuel is carried and the
materials used can be fire resistant. The major causes of accidents of classic
transport are either eliminated or drastically reduced by ETT.
Efficiency: ETT is the most cost efficient method of
travel for many reasons: At a given
speed the energy usage is the lowest possible. With few moving parts, and
minimal contact, the operating life is longer and wear is less than other forms
of transportation. Long amortization
periods are possible. For a given
capacity, the fixed and dynamic loads for an ETT bridge or span are much lower
than rail or road, leading to lower costs.
The separate technologies needed for the implementation of the system
are already in use and well proven. The
ETT does not rely on super conductor technology, but greater, capacity and
efficiency are possible when superconductors become cost effective. ETT can use electricity that can be derived
from renewable sources. Most of the
materials used are low cost and can be recycled. Existing manufacturing capacity and methods
can be used, lowering cost. Worn out
roads that need replacing anyway is an ideal location for ETT. Many identical components result in economies
of production. Low speed ETT systems
require much less right of way because the path of travel is protected, this
results in greater land use efficiency, and lower construction and maintenance
cost. ETT is compatible with many existing right of ways. For a given speed and
for long distances the energy used per person or ton is less than one percent
of the most efficient form of classic transport (99% + energy savings).
Speed:
ETT is the fastest possible method of travel between two points on earth
greater than about 2 miles apart. The speed is limited by human limits of
acceleration tolerance. The curvature of the tube determines the acceleration
due to centripetal motion. Thus the minimum radius to be traveled limits the
speed. For a straight tube, the linear
acceleration that can be produced, and the distance, determines the top speed
limit. As speed increases so does the
energy requirement to maintain the maximum acceleration that an occupant can
tolerate. The maximum speed is limited by waste heat build up in the capsule,
and the amount of power that the acceleration device is rated for. Sandia National Labs have developed linear motor technology
capable of speeds of over 2 kilometers per second. Speeds to 8 kilometers per second are considered to be possible
by experts in the field.
Capacity: the theoretical
capacity of a single 5 foot dia. tube is about 1
capsule per second at 35 mph, 2 capsules per second at 70 mph, 4 capsules per
second at 140mph, 8/sec at 280mph, 16 at 560, 32 at 1120, and 64 capsules per
second at 2240 miles per hour. 64 capsules per second equates to 640 persons
per second or 38,000 persons per min. or a whopping 2.3 million people per
hour. (This assumes the tube’s ability
to reject waste heat). It is not likely
that this capacity potential will be fully exploited. Capacity can be added, as demand increases.
Ecology: If renewable, non-fossil
electricity is used the ETT is non-polluting, yielding lower
environmental costs. ETT is
ideally suited to non-polluting energy sources like; wind turbine, solar,
hydroelectric. ETT can be used to transport energy, thus reducing the need for
electric power transmission lines. Extremely long useful life minimizes the
waste of materials associated with other forms of transport. The ETT is quiet. The impact to the environment is minimal
compared to a road that animals can't cross without danger. There is minimal
storm water runoff impact. ETT is less
than 5 percent as disruptive to wetlands than a road.
ETT utilization results in a sustainable world transport system.
Other advantages: The transport market is
huge, with favorable trends toward faster and more efficient travel. The need
of transport is basic, resulting in low market dependence. Obsolescence of ETT is unlikely in the
foreseeable future. Less reliance on oil
will result in cheap plastics. Low risk
proof of concept for non-life-support versions can minimize initial product
liability. Virtually continuous,
non-intermittent operation results in no
scheduling required. No advance booking
or ticket needed. ETT is weather
independent, no storm delays. Travel
from any city, to any city on earth within 4 hours (after the system is built).
No driver license required. Minimal training required. No fueling required. No
odors or fumes produced. Servicing and operation can be automated. Lightweight
simplifies repair and construction.
Convenience and social interaction enhanced by mechanization. Can use existing production
facilities with minimal tooling cost. Travel imbalances can be used to transport waste.
Aerodynamic instabilities and supersonic heating are virtually eliminated. ETT does not rely on, or improve directly
upon superconductor technology. It is
believed that superconductor technology will advance much faster as a result of
ETT utilization. ETT can fully exploit the advantages of super conductors. There will be much more incentive to develop
cost effective superconductors when ETT becomes utilized.
Products and Services
The Company
intends to produce or acquire and pool intellectual property relating to ETT.
The license to use this ever-expanding pool is the main product. The Secondary
product / service relates to establishing an Internet based marketplace for the
collaboration, and trade of licensee’s products, materials, and services.
Thirdly, other long-term products are advertising, logo licensing, and
development of additional related technologies, etc.
The first
product class is a near-term; with some products currently being sold. The
second will be implemented within in the first year of operation. The
third is a longer-term product family; the early members of which management
hopes to begin selling within the first four years of operation.
The
intellectual properties that the Company has, and intends to produce - its
patents and trade secrets - are sellable products. They will be licensed
and supported in exchange for the payment of fees. As such, they will be
a continuous and major output of the Company. The potential customers for
these intellectual property products will be individuals and companies
interested in exploiting ETT, the same companies we envision will make up our
network of future joint venture partners. We believe that this network
will need initial and ongoing access to ETT intellectual property and we intend
to provide it to them.
The Company
also intends to facilitate the marketing of goods and technical services
relating to ETT: Contract R&D and product development support.
Customers for these services will again be the companies in our future customer
network. We believe that ETT support infrastructure will be of value to
licensees as they collaborate to develop ETT products. This expertise
will be sold as product development support and as contract R&D. The
Company’s customers will be drawn from transportation, materials supply,
manufacturing, and construction industries. We will choose our customers
on the basis of their interests in ecology, technology innovation, and new
product development. While the actual products undertaken for development
will be determined by customer companies and not by us, Management would expect
these products to include: 1) route selection, environmental impact, survey,
acquisition and development; 2) tube design, and construction, including tube
support and alignment structures, vibration control, etc. 3) capsule design and
construction, including life support equipment, cooling, suspension, and
powering apparatus; 4) merge and divide capsule switching; 5) terminal
building, airlock, capsule and people handling equipment, life-support recharge
systems; 6) automated capsule control systems, capsule and tube position
sensors, accelerometers, software, and computation devices; 7)safety and
security equipment; 8)power grid interface, transformers, capacitors, etc.;
9)maintenance services; 10)Governmental and regulatory consulting, lobby;
11)education and training; 12)management; 13) Financing; ETC.
Every device,
product, service, material, and intellectual property relating to ETT will be
classified and have a specified niche to facilitate collaboration among
licensees. The internet is the vehicle to implement the collaborative efforts
of licensees. Forums open to licensees create a competitive, efficient market
for the selection of the best components, materials, and services, based on a
propose/vote/bid cycle. Advertising on
the web site is another possible product.
Management
also sees key route rite-of-ways (ROW) as a high profit long-term
product. The Company expects that key ROW to be of two types: key geographic ROW, and key population ROW.
The attractive locations to secure ROW agreements will be in low cost key
geographic points between widely separated population centers.
Markets
We believe
that 3 families of ETT systems will be the major product areas flowing from the
field of ETT technology. 1) low-speed / low-tech systems for developing
markets and local use at less than 350mph; 2)medium-tech / medium-speed for
regional use, and in stronger markets; 3) High-tech / high-speed for
intercontinental / international transport and developed markets. The markets for these products may be an
expanded version of today’s markets for automobiles, roadways, and aircraft.
The Company
expects ETT systems to serve the same markets as today’s transport
infrastructures. However, since we believe that successful ETT technology
will provide much greater performance at a much lower price, our Management
further believes that ETT systems will find their way into many new and
developing markets like
Competition
Transportation
innovations occur daily, there are several competitors in the rapidly expanding
field of proposed innovative fixed guide way transportation systems. The new systems for the most part, seek to exploit
the advances in electronic sensing and control technology, and automation; they
fall into 2 main categories: minimally sized PRT (Personal Rapid Transit); and
larger DM (Dual Mode) systems. ETT has applications for both PRT, and DM
solutions. The primary ETT advantage is
for longer trips, and high speed operation, in this respect, main competition
is from the heavily entrenched air transport industry.
The field of
ETT is in the development stage, it has recently come to managements
attention that there are at least 3, and possibly more companies engaged in
promoting travel in reduced pressure tubes, or tubes at atmospheric pressure.
One of these companies declares that they have a patent pending. In the estimation of management, the
existence of these companies will assists in establishing credibility for the
scientific validity of ETT. To the best
of our knowledge, no one is selling products based on, or competing directly
with ETT technology. We believe that at this stage, competition is for intellectual
property that will enable the control of future markets and not yet competition
for the products for these markets.
Patents have
been and are being granted for innovations in the field or innovations that
will impact the field. It is our opinion, however, that overall, the
intellectual property of the field is largely underdeveloped. Moreover,
an essential part of the Company's business strategy is to exploit, under
exploitation agreements, existing and future intellectual property belonging to
others for the mutual benefit of the Company and such others. By virtue
of these strategies, we hope to control and minimize the impact of the
competition that will be seen.
The Company
believes that the competition for this intellectual property will come from two
sources: Those who will seek to imitate our customer-building strategy and
those who will develop and exploit intellectual property on their own.
Currently, Management knows of no companies interested in imitating its
customer-building strategy. Only time will tell whether or not there will
be many or few intellectual property developers who have the time, resources,
and commitment to undertake exploitation on their own without ET3.COM INC.'s or others’ involvement.
Management
believes that the Company's ultimate competitors in the markets for ETT
technology will be companies within ET3.COM INC.'s
own product-development customer network. Our customers will have the
knowledge, expertise and experience to engage this new market in part because
of the Company's work with them. While Management intends to work its
customer agreements to the Company's benefit, we recognize that it will be
impossible and perhaps even unwise to prevent our customers from being our
competitors in various niches of the market.
These
customer-based competitors will probably be the earliest specific competitors
that we will be able to identify. Management expects to know them in more
intimate detail than other future competitors.
Competitive
Position
Management
believes that the Company's competitive position is strong. We are
first. We are the first company organized to make a business and a profit
from capturing and exploiting the intellectual property of ETT. et3.com
Inc. intends to be everywhere in the field: in the universities, in the
government research labs, in the technology partnership offices of future
customers, and in the U.S. Patent & Trademark Office. There is a maxim that
says: Being first is better than being better. As a matter of corporate
policy, we intend to exploit the Company's position of being first. It is
believed by being first, keeping price low, and by building the largest pool, that a dominant position may be maintained. We intend to
make it cheaper to license the technology than to steal it! We intend on setting the standards, and
dominating the market for Evacuated Tube Transport Technologies.
Patents
The Company
has executed an exclusive license and patent assignment agreement ("Patent
Agreement") for the worldwide rights to the economic exploitation of
United States Patent Number 5,950,543 (the "Patent") issued
In addition,
we will work to developing patent exploitation agreements with universities and
government labs that are leaders in the field of targeted technologies, and
that own important intellectual property in fields relating to ETT.
The ET3 logo
is a trademark belonging to the Company that refers to the Evacuated Tube
Transport Technology defined in and covered by the Patent (one
“E” and 3 “T”s hence the name et3). The dot com
designation points to the key infrastructure in the plan to implement ETT,- the internet. The
company is taking steps to register the trademark.
The Use of
the Internet
As a startup,
our primary assets are our vision and the intellectual means we have in our
possession to achieve that vision. The Company's primary task is the same
as that of every startup: financing its activities in order to succeed.
We have chosen to finance our activities with a combination of income from
licensing the ETT patent and technology database, together with offering of
private placement compensatory shares. In both the Licensing effort, and
the offering, the Company is using the Internet as the primary avenue for
distributing Shares. The Company is focusing on the Internet for this
purpose due to its power to reach great numbers of people, its ability to quickly
and interactively provide information to people about the Company, and its
futuristic effectiveness in the execution of on-the-spot transactions.
Startup
Phase
In order to
conserve resources, our executive officers have agreed to work without pay
until such date as the Board of Directors decides that we have attained capital
sufficient for normal operations. At that time, which is referred to in this
document as the "Actual Startup Date", these officers will begin
receiving pay for their services. The time period prior to the Actual
Startup Date is referred to as the Company’s "Startup Phase".
PLAN OF OPERATIONS
The Company
is currently in its Startup Phase of existence. In this phase, our
officers are working without pay and our office is a virtual office utilizing
telecommunication interactions (Internet, phone, and faxes) but with no leased
office space expense. The
Company can continue indefinitely in this mode. This is
not a "stand still" mode. Intellectual property, technology
exploitation agreements, and R&D plans are under active development in this
phase.
We have
never, and do not plan to ever have employees, or pay salaries. All operations
are “farmed out” to licensees on a competitive bid basis. For instance
the Company’s ISP (internet service provider) is a Licensee. The Company presently has sufficient cash on hand
to support all of these activities for the next year. No funds from the
offering are required to support these activities.
The Company
will transition from the Startup Phase of its existence to the Operational
Phase when it has accumulated sufficient Key licensees / or capital to do so.
At that time, the Company's executive officers,
may receive salaries, additional space may be leased, capital equipment may be
purchased, and other business operating expenses may be incurred. Prior
to that time, activities will be restricted to low cost activities so as to
keep the Company within its cash resources. The continuing priority will be to
minimize overhead by contracting all possible aspects of operation to
licensees.
The sale of
the Shares is intended to facilitate getting the Company’s financing steps done
quickly and thereby accomplishing a quick Startup Phase. However, even if
no Shares are sold pursuant to the offering, we will still be able to proceed
in the development of our intellectual property, continue putting technology
exploitation agreements into place, and continue the sale of licenses of our
technology and contract R&D services in support of technology development.
In this way, the Company will be able to transition to operational status at a
future point in time, regardless of the extent to which Shares are sold under
the offering. The sale of shares will shorten the time required to achieve a
critical mass of key licensees.
Our
operational plans are designed for financial safety. In our current
Startup Phase, we are able to continue indefinitely our process of intellectual
property development and exploitation without additional funds. It is
our intention to continue to pace the growth of operations to the availability
of cash so as to minimize the likelihood of damage to the Company caused by
operational requirements that exceed the Company’s financial abilities. No debt
is to be incurred other than short term, for the normal time of credit card
float 25-30 days. The companies operations are currently profitable, it is
anticipated that with the offering that the licensing operation may be scaled
up to the critical mass point of sustained growth fueled by the sub-licensing
efforts of licensees alone.
For this
reason, our operational plans do not require cash from the offering to
succeed. Cash from the offering will be used to accelerate our
operational plans. Management believes that the faster we can grow, the
greater will be our participation in the economic potential of the field of
ETT; and the greater the likely hood that competition will be unsuccessful.
Activities
The Company’s
business currently consists of two major areas of activity: 1.) Research and
Development, and 2.) Sales and Corporate Development.
Research
and Development
The purpose
of our R&D is to capture as large a portion of the intellectual property in
the field of ETT as possible and to develop our capability to create products that
exploit this intellectual property. To this end, the Company’s R&D consists
of the following segments: Research; Intellectual Property Development; Product
Technology Development.
These three segments work together. Research develops the Company’s knowledge
by answering the questions that the other two segments need answered.
Intellectual Property Development fashions the Company’s knowledge into patent-protectable or trade-secret-protectable
units that can be licensed and otherwise exploited for business. Finally,
Product Technology Development puts in place those technical processes and
technology arrangements necessary for the Company to produce, or support the
production of, saleable products. All three research segments are
functioning now at a low but valuable level. We believe that the power
and effectiveness of these segments will be amplified as we grow.
Approximately 25 percent of our annual expenditures are expected to be for
R&D.
Sales and
Corporate Development
The purpose
of this area of activity is to exploit the Company’s R&D results in order
to generate revenue. This area of activity is responsible for selling
products and for developing our business arrangements so as to foster these
sales. The Company’s early "products" will be licenses to third
parties of its intellectual property and contract research in the
development-support of third party products based on these licenses. (See
"Business - Products and Services"). We are selling these
products now, but there can be no assurances of this continuing, or reaching a
self-propagating status. The Company’s later products are expected to be
key ETT services / and goods with the earliest versions of such products
available within four years from now. Approximately 25 percent of our
annual expenditures in the early years are expected to be for Sales and
Corporate Development.
Cash
Requirements
As stated
above, the Company’s operational plans are constructed so that we can continue
in our present status for a year and longer even without any proceeds from the
offering. Any and all proceeds from the offering will be used to
accelerate the Company’s progress in both its technical and its financing
activities and to amplify the Company’s influence in ETT.
Management believes that cash from the offering is not a requirement for the
Company’s eventual success but it is an advantage to be able to effectively
accelerate and amplify our progress and its impact on ETT.
Capital
Equipment
Over the next
year, the Company expects to expend up to 20% of its expenditures on the
purchase of capital equipment, primarily for use in internet technology and
licensee database development and management. In accordance with our
operational planning, which is designed to be flexible, the actual percentage
will depend upon the availability of cash. It is possible that no
expenditures will be made on capital equipment if the cash availability were
too limited, or if licensees currently possessing underutilized assets in this
field can be found to bid for the work. In that case, the Company’s work
will be focused on licensee sales development of the type that does not depend
upon the use of capital equipment; this is the preferred mode of operation.
Hiring
Employees
As stated
previously, the only time employees will be hired is when critical work is
needed that existing licensees do not successfully bid on. In the case where
the work may be done at lower cost by employees they will be hired- with
preference toward temporary staffing. It may be required to offer added
inducement or incentive in the form of stock bonuses to licensees who
successfully fill these positions. The Company believes that minimal
hiring results in a substantial margin of financial safety, and concentrates on
developing quality licensees. The benefits are two fold, more licensees, and
less overhead.
EXECUTIVE COMPENSATION
To date, and
other than stock, no compensation has been paid to any officer, or
director. All officers and directors of the Company have agreed to serve
and are serving without pay during the Startup Phase of the Company (See
"Business - Startup Phase"). This phase will end at such date
that the shareholders, and majority of licensees, determines that the Company
has attained capital sufficient for expanded operations. In any case, total pay
shall not exceed 5% of license fee and royalty revenues. Funds from any
offering shall not be used to compensate any officer, or director of the
company.
Compensatory Stock Program
The Company
has adopted a compensatory stock plan (the "Plan"). It is
intended that under this Plan, key licensees and consultants will be eligible
to receive shares that qualify as incentive stock (within the meaning of
Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code")) or which are non-qualified shares. The shares are
exempt and restricted under SEC rule 701.
An aggregate of 1,000,000 shares of Common Stock have been earmarked for
issuance under the Plan. Of the shares,
401,300 are to be issued as compensation for services rendered, or assets
tendered (shares). Ten shares are issued
for every one hundred US dollars of value received. The balance of 598,700 shares is to be issued
as incentive for licensees who underwrite sub-licensees. The sub-licensing
incentive shares are to be distributed as follows:
Sub-Licensing Incentive Shares
|
et3.com Inc. stock incentive plan for independent
contractor licensees |
|||||
|
Compensatory Shares offering plan; Exempt
and Restricted under SEC rule 701 |
|||||
|
|
Sub-Licensing
incentive portion 598,700 shares |
|
|||
|
|
NO |
NO |
NO |
|
SHARES |
|
|
** # OF |
SUB |
TOTAL |
SUB TOTAL |
OUT AFTER |
|
TOTAL |
SHARES |
TOTAL |
ISSUED |
SHARES |
|
|
licensees |
/NEW LIC |
|
|
|
|
|
10 |
100 |
1000 |
1,000 |
1000 |
1,000 |
|
100 |
25 |
2500 |
3,500 |
2500 |
3,500 |
|
1,000 |
8 |
7200 |
10700 |
7200 |
10,700 |
|
6,000 |
4 |
20,000 |
30700 |
20000 |
30,700 |
|
30,000 |
2 |
48,000 |
78700 |
48000 |
78,700 |
|
100,000 |
1 |
70,000 |
148700 |
70000 |
148,700 |
|
200,000 |
0.5 |
50,000 |
198700 |
100,000 |
248,700 |
|
400,000 |
0.25 |
50,000 |
248700 |
200,000 |
448,700 |
|
800,000 |
0.125 |
50,000 |
298700 |
400,000 |
848,700 |
|
1,600,000 |
0.0625 |
50,000 |
348700 |
800,000 |
1,648,700 |
|
3,200,000 |
0.03125 |
50,000 |
398700 |
1,600,000 |
3,248,700 |
|
6,400,000 |
0.015625 |
50,000 |
448700 |
3,200,000 |
6,448,700 |
|
12,800,000 |
0.0078125 |
50,000 |
498700 |
6,400,000 |
12,848,700 |
|
25,600,000 |
0.0039063 |
50,000 |
548700 |
12,800,000 |
25,648,700 |
|
51,200,000 |
0.0019531 |
50,000 |
598700 |
25,600,000 |
51,248,700 |
|
** AFTER 100,000
LICENSEES THERE IS A STOCK SPLIT PLANED FOR EACH |
|||||
|
DOUBLING OF LICENSEES THUS THE # OF SHARES
ISSUED TO |
|||||
|
EACH NEW LICENSEE ACTUALLY WILL BE ONE |
|
||||
A committee
of the Company’s Board of Directors, the members of which are designated by the
Board of Directors, administers the Plan. Currently, the committee is the
whole Board. The committee has the authority, subject to the terms of the
Plan, to determine the terms of shares granted under the Plan, including, among
other things, the individuals who shall receive shares, the times when they
shall receive them, whether incentive stock or non-qualified stock shall be
granted.
FINANCIAL STATEMENTS
ET3.COM INC.
(A Development Stage Company)
UNAUDITED INTERIM BALANCE SHEET
As of
|
ASSETS |
|
|
Current Assets: |
|
|
Cash Deposits |
$1400 |
|
Participating Licensee contributions |
$20,321 |
|
|
|
|
Organization Costs |
$280 |
|
Patent assignment and IP |
$50,000 |
|
|
|
|
Total Assets |
$72,001 |
|
LIABILITIES &
STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
Current Liabilities: |
|
|
Accounts Payable |
($620) |
|
|
|
|
Total Current Liabilities |
($620) |
|
Stockholders' Equity: |
|
|
Common Stock Issued |
$70,321 |
|
Stock Issuance Expense |
0 |
|
Retained Earnings |
$900 |
|
Net Income |
$500 |
|
Total Stockholders' Equity |
$71,381 |
|
|
$72,001 |
ET3.COM INC.
(A Development Stage Company)
UNAUDITED INTERIM STATEMENT OF OPERATIONS
|
|
|
Period from (date of
incorporation) to |
|
|
Revenue: |
|||
|
License Fee Income |
|
$1,400 |
|
|
Expenses: |
|||
|
Pre-Operating and Development |
|
$900 |
|
|
Gain Before Income Taxes |
|
$500 |
|
|
Provision for State Income Taxes |
|
$0 |
|
|
Net gain |
|
$500 |
|
|
Accumulated earnings at |
|
$0 |
|
|
Accumulated earnings at |
|
$500 |
|
ET3.COM INC.
(A Development Stage Company)
UNAUDITED INTERIM STATEMENT OF CASH FLOWS
|
|
|
Period from (date of
incorporation) to |
|
|
Operations: |
|||
|
Net Gain |
|
$500 |
|
|
Items Not Requiring Current Use |
|
|
|
|
|
|
|
|
|
Accounts
Payable and |
|
$620 |
|
|
Deposits |
|
$1400 |
|
|
Cash Used for Operating |
|
($900) |
|
|
Investments: |
|||
|
Organization Costs |
- |
- |
|
|
Licenses |
|
$280 |
|
|
|
|
|
|
|
Financing: |
|||
|
Advance from |
|
$900 |
|
|
|
|
|
|
|
Cash Provided by Financing |
|
$900 |
|
|
Increase in Cash |
|
$1,400 |
|
|
Cash at Beginning of Period |
|
$0 |
|
|
Cash at End of Period |
|
$1400 |
|
|
Supplemental Cash Flow Disclosures: |
|||
|
Taxes Paid |
|
- |
|
|
Interest Paid |
|
- |
|
ET3.COM INC.
(A Development Stage Company)
UNAUDITED INTERIM STATEMENT OF CHANGES IN
STOCKHOLDERS' EQUITY (DEFICIT)
For
the Period
to
|
|
Common Stock |
Accumulated Earnings |
|
|
Shares |
Amount |
||
|
Stock Issued |
10,000 |
- |
- |
|
Stock Issued in exchange for services |
3.150 |
- |
- |
|
Stock
Issuance Costs |
- |
- |
- |
|
Net Gain |
- |
- |
$500 |
|
Earnings per
share |
|
|
3.8 Cents |
ET3.COM INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
NOTE 1
- Operations and Summary of Significant Accounting Policies:
Et3.com
Inc. (the "Company" or "ET3.COM INC."), a
ET3.COM
INC. has entered into an exclusive license and patent assignment agreement with
an officer/director of the Company. The agreement provides the Company
with the assignment of exclusive rights to use the ETT patent, IP and any
future related patents that may issue. A summary of significant
accounting policies follows:
Organization
Costs
Organization
costs consist primarily of legal fees which have been capitalized and which
will be charged to expense over a five-year period commencing on the date ET3.COM
INC.'s operations begin.
Use of
Estimates
The
preparation of financial statements requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates. For
instance the value of the ETT patent and VR video production constitute most of
the assets of the company, the value assigned may not accurately reflect actual
market value.
Fair
Value of Financial Instruments
The
carrying values of financial instruments, such as accounts payable and debt
obligations, approximate their fair market value.