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EX-32 - EXHIBIT 32 - Regional Brands Inc.ex32.txt
EX-31 - EXHIBIT 31 - Regional Brands Inc.ex31.txt

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                 ---------------


                                    Form 10-Q


      [X]       QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934.

                 For the quarterly period ended March 31, 2011.

                                       or

      [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT.

            For the transition period from             to
                                           -----------     ----------

                       Commission File No. -- 33-131110-NY


                               4net Software, Inc.
        -----------------------------------------------------------------
        (Exact Name of Small Business Issuer as Specified in its Charter)


          DELAWARE                                       22-1895668
-------------------------------                     ----------------------
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                      Identification Number)



         225 N.E. Mizner Boulevard, Suite 400 Boca Raton, Florida 33432
         --------------------------------------------------------------
               (Address of Principal Executive Office) (Zip Code)


                                 (561) 362-5385
               --------------------------------------------------
               (Registrant's telephone number including area code)



     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 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.
                                               [X] Yes  [ ] No

     Indicate by check mark whether the registrant has submitted electronically
and posted on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S-T
(Section 232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).

                                               [X] Yes  [ ] No


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [X] Yes [ ] No As of May 9, 2011, the issuer had 9,261,017 outstanding shares of common stock.
4net Software, Inc. TABLE OF CONTENTS Page No. -------- PART I - FINANCIAL INFORMATION............................................ 3 Item 1. Financial Statements............................................. 3 Balance Sheets as of March 31, 2011 (unaudited) and September 30, 2010 (audited)................................. 3 Statements of Operations (three-months and six-months ended March 31, 2011) ................................................. 4 Statements of Cash Flows (six-months ended March 31, 2011 and 2010)....... 5 Notes to Condensed Financial Statements................................... 6 Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations ....................................... 8 Item 4T. Controls and Procedures ......................................... 10 PART II - OTHER INFORMATION 10 Item 1. Legal Proceedings ............................................... 10 Item 5. Other Information................................................ 10 Item 6. Exhibits ........................................................ 11 SIGNATURES................................................................ 13 2
PART I - FINANCIAL INFORMATION Item 1. Financial Statements 4NET SOFTWARE, INC. BALANCE SHEETS March 31, September 30, 2010 2010 (Unaudited) ----------- ----------- ASSETS CURRENT ASSETS Cash $ 588 $ 7,995 ----------- ----------- TOTAL ASSETS $ 588 $ 7,995 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES Accounts payable and accrued expenses $ 8,804 $ 13,405 Related party note payable 48,584 39,539 ----------- ----------- TOTAL CURRENT LIABILITIES $ 57,388 $ 52,944 ----------- ----------- COMMITMENTS AND CONTINGENCIES -- -- STOCKHOLDERS' EQUITY (DEFICIT) Preferred stock, $.01 par value; authorized - 5,000,000 shares - issued and outstanding - none -- -- Common stock $.00001 par value; authorized - 100,000,000 shares - issued and outstanding - 9,261,017 on March 31, 2011 and on September 30, 2010 93 93 Capital in excess of par value 3,198,255 3,198,255 Accumulated deficit (3,255,148) (3,243,297) ----------- ----------- TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (56,800) (44,949) ----------- ----------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) $ 588 $ 7,995 =========== =========== See accompanying notes to these financial statements. 3
4NET SOFTWARE, INC. STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended March 31, March 31, 2011 2010 2011 2010 ----------- ----------- ----------- ----------- REVENUES $ -- $ -- $ -- $ -- ----------- ----------- ----------- ----------- OPERATING EXPENSES General and Administrative 3,022 6,090 9,807 8,969 ----------- ----------- ----------- ----------- TOTAL OPERATING EXPENSES (3,022) (6,090) (9,807) (8,969) ----------- ----------- ----------- ----------- LOSS FROM OPERATIONS (3,022) (6,090) (9,807) (8,969) ----------- ----------- ----------- ----------- OTHER INCOME/(EXPENSE) (1,077) (810) (2,044) (1,327) ----------- ----------- ----------- ----------- NET LOSS $ (4,099) $ (6,900) (11,851) (10,296) =========== =========== =========== =========== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING-Basic and Dilutive 9,261,017 9,261,017 9,261,017 9,261,017 =========== =========== =========== =========== NET LOSS PER COMMON SHARE - Basic and Dilutive $ (.00) $ (.00) (.00) (.00) =========== =========== =========== =========== See accompanying notes to these financial statements. 4
4NET SOFTWARE, INC. STATEMENTS OF CASH FLOWS SIX MONTHS ENDED MARCH 31, 2011 AND 2010 (Unaudited) 2011 2010 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES Net loss $(11,851) $(10,296) Adjustments to reconcile net loss to net cash used in operating activities: Changes in assets and liabilities: Decrease in accounts payable and Accrued expenses (2,556) (7,269) -------- -------- Net Cash Used in Operating Activities (14,407) (17,565) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from related party note payable 7,000 19,000 -------- -------- Net Cash Provided by Financing Activities 7,000 19,000 -------- -------- Net (Decrease)/Increase in Cash (7,407) 1,435 CASH - BEGINNING OF PERIOD 7,995 124 -------- -------- CASH - END OF PERIOD $ 588 $ 1,559 ======== ======== See accompanying notes to these financial statements. 5
4NET SOFTWARE, INC. NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying condensed interim financial statements of 4net Software, Inc. (the "Company") are unaudited. In the opinion of management, the interim data includes all normally recurring adjustments, necessary for a fair presentation of the results for the interim period. The results of operations for the three month period ended March 31, 2011 are not necessarily indicative of the operating results for the entire year. The condensed interim financial statements included herein are prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosure normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America has been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the disclosures made are adequate to make the information not misleading. These condensed interim financial statements should be read in conjunction with the financial statements and notes included in the Company's Form 10-K for the year ended September 30, 2010. USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. CASH EQUIVALENTS - For purposes of reporting cash flows, management considers as cash equivalents all highly liquid investments with a maturity of three months or less at the time of purchase. At March 31, 2011, the Company had no cash equivalents. NOTE 2 - GOING CONCERN The accompanying condensed interim financial statements have been prepared on the basis of accounting principles applicable to a going concern which contemplates the realization of assets and extinguishment of liabilities in the normal course of business. As shown in the accompanying condensed interim financial statements, the Company has an accumulated deficit of approximately $3.26 million through March 31, 2011. As of March 31, 2011, the Company has no principal operations or significant revenue producing activities, which raises substantial doubt about its ability to continue as a going concern. The Company's condensed interim financial statements do not include any adjustments related to the carrying value of assets or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company's ability to establish itself as a going concern is dependent on its ability to merge with another entity. The outcome of this matter cannot be determined at this time. 6
4NET SOFTWARE, INC. NOTES TO CONDENSED INTERIM FINANCIAL STATEMENTS NOTE 3 - CONTROL As of March 31, 2011 Mr. Bronson beneficially owns 5,560,210 shares of the Company's common stock. Mr. Bronson's beneficial ownership represents approximately 60% of the Company's issued and outstanding shares of common stock. Accordingly, Mr. Bronson has effective control of the Company. In the election of directors, stockholders are not entitled to cumulate their votes for nominees. Accordingly, as a practical matter, Mr. Bronson may be able to elect all of the Company's directors and otherwise direct the affairs of the Company. NOTE 4 - DUE TO RELATED PARTY Since February 3, 2009, the Company's president and principal executive officer has loaned the Company money to fund working capital needs to pay operating expenses. The loans are repayable upon demand and accrue interest at the rate of 10% per annum. As of March 31, 2011, the aggregate principal loan balance amounted to $43,696 and such loans have accrued interest of $4,886 through March 31, 2011. Note 5 - RELATED PARTY TRANSACTION The Company occupies a portion of the premises occupied by BKF Capital Group, Inc. at 225 N.E. Mizner Boulevard, Suite 400 Boca Raton, Florida 33432 on a month to month basis for a fee of $100 per month paid to BKF Capital Group, Inc. Steven N. Bronson, the Company's president, is the president of BKF Capital Group, Inc. Note 6 - SUBSEQUENT EVENTS. On April 27, 2011, Steven N. Bronson loaned the Company $15,000 to fund working capital needs to pay operating expenses. The additional loan is repayable upon demand and shall accrue interest at the rate of 10% per annum. 7
Item 2. Management's Discussion and Analysis or Plan of Operation. Forward Looking Statements Disclosure ------------------------------------- This report on Form 10-Q contains, in addition to historical information, Forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). You can identify these forward-looking statements when you see words such as "expect," "anticipate," "estimate," "may," "plans," "believe," and other similar expressions. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those projected in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those discussed in the section entitled "Factors Affecting Operating Results and Market Price of Stock," contained in the Company's Annual Report on Form 10-K for the year ended September 30, 2010. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update any forward -looking statements. The following discussion and analysis provides information which management of 4net Software, Inc. (the "Company" or "4net Software") believes to be relevant to an assessment and understanding of the Company's results of operations and financial condition. This discussion should be read together with the Company's financial statements and the notes to financial statements, which are included in this report as well as the Company's Annual Report on Form 10-K for the year ended September 30, 2010 which is incorporated herein by reference. 4net Software's Acquisition Strategy The Company is engaged in pursuing an acquisition strategy, whereby 4net Software is seeking to enter into an acquisition, merger or other business combination transaction (a "Transaction") with an undervalued business (a "Target Company") with a history of operating revenues in markets that provide opportunities for growth. 4net Software is currently engaged in identifying, investigating and, if investigation warrants, entering into a Transaction with a Target Company that will enhance 4net Software's revenues and increase shareholder value. The Company utilizes several criteria to evaluate Target Companies including whether the Target Company: (1) is an established business with viable services or products, (2) has an experienced and qualified management team, (3) has opportunities for growth and/or expansion into other markets, (4) is accretive to earnings, (5) offers the opportunity to achieve and/or enhance profitability, and (6) increases shareholder value. In some cases, management of the Company will have the authority to effect acquisitions without submitting the proposal to the stockholders for their consideration. In some instances, however, a proposed Transaction may be submitted to the stockholders for their consideration, either voluntarily by the Board of Directors to seek the stockholders' advice and consent, or because of a requirement of applicable law to do so. Management believes that the successful implementation of the Company's Acquisition Strategy will allow 4net Software to increase revenues and earnings and achieve profitability. There can be no assurances, however, that 4net Software will successfully complete any additional acquisitions or that 4net Software will achieve profitability. 8
On September 9, 2010, 4net Software announced that it had signed a Letter of Intent to acquire all of the issued and outstanding capital stock of EnSA Holdings, LLC ("EnSA"), a privately-held Florida limited liability company with offices located in Fort Lauderdale, Florida (the "EnSA LOI"). EnSA is a privately held company engaged in the business of agricultural production and development in the Dominican Republic. Under the terms of the EnSA LOI, the Company would acquire all of the outstanding shares of EnSA in exchange for shares of the Company pursuant to a contemplated share exchange agreement (the "Acquisition"). The Acquisition is subject to a number of conditions, including, among other things, the execution of a definitive share exchange agreement, stockholder approval, the Company effecting a reverse stock split, the completion of certain financing arrangements, and further due diligence by the parties. Additionally, pursuant to the Acquisition, the directors and officers of the Company would resign and be replaced by directors and officers designated by EnSA, with the exception that Steven N. Bronson, will continue as a director of the Company. Pursuant to the Letter of Intent, EnSA is required to pay the Company an aggregate amount of $60,000 to reimburse the Company for its legal and other expenses associated with the Acquisition payable in four (4) non-refundable installments as follows: (i) $15,000 upon the execution and delivery of the Letter of Intent; (ii) $15,000 upon the execution and delivery of a definitive agreement for the Acquisition; (iii) $15,000 on or before the fifteenth day after the execution and delivery of a definitive agreement for the Acquisition; and (iv) $15,000 upon the Company's receipt from its printer for copying and/or mailing out its information statement to its shareholders in connection with the Acquisition. As of March 31, 2011, the Company has received $15,000 from EnSA in accordance with the EnSA LOI. The Acquisition is subject to numerous risks and conditions, accordingly there can be no assurance that the Acquisition will be completed. Results of Operations For the three month periods ended March 31, 2011 and 2010, the Company had no revenue. Operating expenses for the three month periods ended March 31, 2011 and 2010 were $3,022 and $6,090, respectively. Other expenses consist of interest expense for the periods presented. For the six month periods ended March 31, 2011 and 2010, the Company had no revenue. Operating expenses for the six month periods ended March 31, 2011 and 2010 were $9,807 and $8,969, respectively. Other expenses consist of interest expense for the periods presented. Liquidity and Capital Resources During the three months ended March 31, 2011, the Company satisfied its working capital needs from cash on hand and the loans extended by the Company's president and principal executive officer to enable the Company to pay its expenses. As of March 31, 2011, the Company had cash on hand of $588. The Company will need additional funds in order to satisfy its financial obligations and to finance any transaction or acquisition by the Company. There can be no assurances that the Company will be able to obtain additional funds if and when needed. Subsequent Event On April 28, 2011, the Company and EnSA agreed to terminate the Letter of Intent. EnSA agreed to pay the Company $10,000 upon execution the agreement terminating the Letter of Intent and an additional $7,500 upon EnSA's closing of a private offering of its preferred stock. The Company previously disclosed the termination of the Letter of Intent in a Current Report on Form 8-K filed on May 2, 2011. 9
Item 4T. Controls and Procedures Disclosure controls and procedures are controls and other procedures that are designed to provide reasonable assurances that information required to be disclosed by the Company in its periodic reports filed or submitted by the Company under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurances that information required to be disclosed by the Company in its periodic reports that are filed under the Exchange Act is accumulated and communicated to our Principal Executive Officer, as appropriate to allow timely decisions regarding required disclosure. Evaluation of disclosure and controls and procedures. As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of management including our Principal Executive Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on the evaluation, the Company's Principal Executive Officer has concluded that the Company's disclosure controls and procedures are designed to provide reasonable assurances that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and are operating in an effective manner. Changes in internal controls over financial reporting. There were no changes in the Company's internal controls over financial reporting or in other factors that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. PART II - OTHER INFORMATION Item 1. Legal Proceedings. During the quarter ended March 31, 2011, the Company was not a party to any material legal proceedings. Item 5. Other Information. Since February 3, 2009, the Company's president and principal executive officer has loaned the Company money at various times to fund working capital needs to pay operating expenses. The loans ("Loans") are repayable upon demand and accrue interest at the rate of 10% per annum. As of March 31, 2011, the aggregate principal loan balance amounted to $43,696 and such loans have accrued interest of $4,886 through March 31, 2011. The Loans are evidenced by an Amended Consolidated Loan Agreement, dated February 12, 2010, which is attached to the Company's Form 10-Q for the quarter ended December 31, 2009 as Exhibit 10.20. Subsequent Event On April 27, 2011, Steven N. Bronson loaned the Company money $15,000 to fund working capital needs to pay operating expenses. The additional loan is repayable upon demand and shall accrue interest at the rate of 10% per annum. 10
Item 6. Exhibits. a. Exhibits The following exhibits are hereby filed as part of this Quarterly Report on Form 10-Q or incorporated herein by reference. Exhibit Number Description of Document -------- -------------------------------------------------------------------- 2.1 Stock Purchase Agreement by and between Michael Park, Andrew Patros and Robert Park and MedTech Diagnostics, Inc. dated April 24, 2000. (Incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by the Company on May 3, 2000) 3.1 Certificate of Incorporation of the Company. (Incorporated by reference to Exhibit 3.1 to the Company's Annual Report on Form 10-KSB for the fiscal year ended September 30, 1999) 3.2 By-Laws of the Company. (Incorporated by reference to Exhibit 3.2 to the Company's Annual Report on Form 10-KSB for the fiscal year ended September 30, 1999) 3.3 Certificate of Amendment to the Certificate of Incorporation of the Company. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2000) 3.4 Amended and Restated By-Laws of the Company. (Incorporated by reference to Exhibit 3.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2000) 3.5 Certificate of Merger between the Company and its wholly owned subsidiary 4net Software, Inc. (Incorporated by reference to Exhibit 3.5 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001) 3.6 Amended Certificate of Designation of the Series A Convertible Preferred Stock of 4net Software, Inc. (Incorporated by reference to Exhibit 3.6 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001) 10.3 Employment Agreement dated as of August 1, 2000 by and between the Company and Steven N. Bronson. (Incorporated by reference to Exhibit 10.3 to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2000) 10.4 Employment Agreement dated as of August 1, 2000 by and between the Company and Robert Park. (Incorporated by reference to Exhibit 10.4 to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2000) 10.5 Sublease dated as of February 1, 2001 by and between the Company and Catalyst Operations, Inc. (Incorporated by reference to Exhibit 10.5 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001) 10.6 Management Consulting Agreement, dated as of February 1, 2001 by and between the Company and Catalyst Financial LLC. (Incorporated by reference to Exhibit 10.6 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001) 11
10.7 Mergers and Acquisitions Advisory Agreement, dated as of March 27, 2001 by and between the Company and Catalyst Financial LLC. (Incorporated by reference to Exhibit 10.7 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001) 10.8 Placement Agent Agreement, dated as of April 30, 2001, by and between the Company and Catalyst Financial LLC. (Incorporated by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2001) 10.9 Placement Agent Agreement, dated as of July 2, 2001, by and between the Company and Catalyst Financial LLC. (Incorporated by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2001) 10.10 Employment Agreement, dated as of July 1, 2001 by and between the Company and Steven N. Bronson. (Incorporated by reference to Exhibit 10.8 to the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2001) 10.11 Separation Agreement, dated as of September 21, 2001 by and between the Company and Michael Park. (Incorporated by reference to Exhibit 10.11 to the Company's Annual Report on Form 10-KSB for the fiscal year ended September 30, 2001) 10.12 Letter of Intent, dated December 19, 2002 by and between the Company and NWT, Inc. (Incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-KSB for the fiscal year ended September 30, 2002) 10.13 First Amendment to Sublease between Catalyst Operation, Inc. and 4networld.com, Inc. n/k/a 4net Software, Inc. made as of August 30, 2002. (Incorporated by reference to Exhibit 10.13 to the Company's Current Report on Form 8-K, dated September 27, 2002) 10.14 Assignment Agreement, dated as of September 18, 2002, between 4net Software, Inc. and New England Computer Group, Inc. (Incorporated by reference to Exhibit 10.14 to the Company's Current Report on Form 8-K, dated September 27, 2002) 10.15 Consulting Agreement, dated December 17, 2003 between the Company and ETN Financial Services, Inc. 10.16 Stock Purchase Agreement, dated September 13, 2005, between 4net Software, Inc. and RAM Capital Management Trust I 10.17 Stock Purchase Agreement, dated as of May 13, 2008, between 4net Software, Inc. and David Castaneda 10.18 Loan Agreement between Steven N. Bronson and 4net Software, Inc., dated May 13, 2009 10.19 Consolidated Loan Agreement between Steven N. Bronson and 4net Software, Inc., dated December 11, 2009 12
10.20 Amended Consolidated Loan Agreement between Steven N. Bronson and 4net Software, Inc., dated February 12, 2010 14 Code of Ethics 31* President's Written Certification Of Financial Statements Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 32* President's Written Certification Of Financial Statements Pursuant to 18 U.S.C. Statute 1350 -------------------------------- * Filed herewith 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 thereunto duly authorized. Dated: May 10, 2011 4net Software, Inc. By: /s/ Steven N. Bronson ----------------------------------- Steven N. Bronson, President Principle Executive Officer as Registrant's duly authorized officer 13
EXHIBIT INDEX The following Exhibits are filed herewith: Exhibit Number Description of Document ------ ----------------------- 31 President's Statement Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32 President's Written Certification Of Financial Statements Pursuant to 18 U.S.C. Statute 1350.