S.E.C. FILE # 333-6388
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT 1934
For the Second Quarter ending September 30, 1999
GREEN MACHINE DEVELOPMENT CORP,
(Name of small business issuer in its charter)
FLORIDA 65-0594832
(State of incorporation ) I.R.S. Employer Identification Number)
200 MacFarlane Dr., Ste 405, Delray Beach, FL 33483
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (561) 276-8226
Check whether issuer (1) filed all reports required to be filed by Section 13
or 15 (d) Of the Exchange Act during the past 12 months (or for such shorter
period that the Registrant was required to file such reports), and (2) has
been subject to such filing Requirement for the past 90 days. Yes (X) No ( )
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 11,700,000 common shares 10/31/99,
: no preferred shares issued
Transitional Small business Disclosure Format (Check one): Yes X_ No ___
MANAGEMENT'S DISCUSSION AND ANALYSIS
AND PLAN OR OPERATION
The contribution to capital of the assets of Green Machine Management, Corp.
(GMMC) for stock in Green Machine Development, Corp. (GMDC) as outlined in the
June 17th 1999 "Letter of Intent" was completed in July. Mr. James T. Martin
joined June-Ann Fox and Ralph Woolbright as members of the Board of Directors.
Mr. Martin is an experienced and licensed General Contractor and also holds
Mechanical and Electrical Licenses in Florida.
GMMC will operate as a wholly owned subsidiary since it holds title to two real
estate parcels and contracts to purchase 26 Hudson Avenue, Ocean Ridge,
Florida. This older dwelling has additionally, two vacant lots on the
Intracoastal Waterway (ICW) across (north) Hudson Avenue from 25/27 Hudson
Avenue which is owned free from encumbrance. The Company is negotiating
for two more parcels which it expects to replat into a total of 8 to 9
building lots.
The Company holds title to a 2/3 acre parcel in Delray Beach, Florida, subject
to a mortgage recently reduced to $30,000. An application for abandonment of
the City's interest in the terminus of Florida Blvd. is being prepared. The
vacated street portion will increase the lot size to allow a maximum of 8
townhouses to be developed. The Company is presently seeking the cooperation
of two owners adjacent to the street for the abandonment. City planning
officials have indicated a preliminary approval recommendation to City
Council for final action. If the abandonment is not completed the Company
expects to build (2) triplex dwellings or a 7 unit townhouse.
The Company recently received approval for plans to construct an on site sewer
facility which was requisite to the application for building permits for the
two luxury homes to be constructed on the owned parcel. The Health Department
made several revisions and took about 7 months to approve the innovative
system. The required easements have been surveyed and put into legal form
and the documents are being recorded.
Preliminary architectural designs and elevations indicate that the 2 luxury
homes facing the Intracoastal waterway (ICW) will contain over 4,000 square
feet. The Company expects to sell each for over $1 million. The large lot
is being divided to accommodate the two dwellings and the division into two
building lots has further increased the land value and could provide
additional profits from the construction and sale of the first two homes.
The Company settled a minor dispute with the Florida D.E.P. arising from the
construction of a "Rip-Rap" wall to contain erosion along the ICW. The job
is almost complete and is expected to be completed as soon as additional
"Natural Florida Rock" can be delivered for final facing. The completion of
filling which raised the elevation between 3 and 4 feet and the wall
installation increased this property's value to 3 times the book cost of
approximately $300,000. GMDC may consider the sale of these two lots in
the event a verbal offer of $1,000,000 is formulized in writing with a suitable
deposit. This transaction will be a third party tax free exchange whereby
the Company will obtain title to contracted parcel at 26 Hudson Avenue, along
with the additional property being negotiated. Obviously this transaction
will not only provide a tax free substantial profit but would eliminate the
need for financing the land acquisition either by loan or equity sale.
GMDC has made advance rent and security payment and executed a "Letter of
Intent" for a lease to relocate administration operation closer to the field
operations. The legal form of lease is being reviewed and the company expects
to function at the new office before year's end.
GREEN MACHINE DEVELOPMENT, CORP.
BALANCE SHEET
As of September 30, 1999
Sep 30, 1999__ May 31, 1999___
ASSETS
Current Assets
Checking/Savings
103 Rep checking 112.16 2,445.45
105 Rep Money Market 23,116.01 55,953.14
111 YDB Cash 335.43 2,324.49
Total Checking/Savings 3,563.60 60,713.08
Other Current assets
121 YDB Investment 0.00 3,909.27
Total Other Current Assets 0.00 3,909.27
Total Current Assets 23,563.60 64,622.35
Fixed Assets
185 Land 342,056.91 342,056.91
186 Land Expenses 15,835.00 15,835.00
187 Property Taxes 936 66 936.66
191 Audit Conform 30,235.43 30,235.43
Total Fixed Assets 389,066.00 389,066.00
Other Assets
197 Deposit Rent 2,496.00 0.00
198 Deposit on Real Estate 15,000.00 15,000.00
Total Other Assets 17,496.00 15,000.00
TOTAL ASSETS 430,125.60 468,688.35
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Other Current Liabilities
321 Mortgage Payable 30,000.00 40,000.00
316 Shareholder Loan 443,140.73 447,050.00
325 Loan Payable 25,000.00 25,000.00
327 Accrued Expenses 12,000.00 12,000.00
Total Other Current Liabilities 510,140.73 524,050.00
Total Current Liabilities 510,140.73 524,050.00
Total Liabilities 510,140.73 524,050.00
Equity
Capital Stock
371 Common Stk Par $.001 1,000.00 1,000.00
Total Capital Stock 1,000.00 1,000.00
3900 Retained Earnings -56,361.65 -17,902.89
Net Income -24.653.48 -38,456.76
Total Equity -80,015.13 -55.361.65
TOTAL LIABILITIES & EQUITY 430,125.80 468,688.35
GREEN MACHINE DEVELOPMENT CORP.
PROFIT AND LOSS
June through September 1999
June - Sept 1999____________
Ordinary Income/Expenses
Income
436 Investments Income 488.81
Total Income 488.81
Expense
661 Construction Services
564 Construction Contractor 3,000.00
573 Engineer Consultant 1,000.00
581 Equipment 302.10
631 Labor 3,100.00
651 Land Clearing 570.00
691 Supplies 633.88
695 Survey & Engineering 550.00
Total 561 Construction Service 9,155.98
749 Office/Building
762 Architect Fees 162.50
751 Building Repairs 68.41
763 Cleaning 20.25
771 Telephone 220.00
781 Utility Electric 200.74
Total 749 Office/Building 671.90
801 Office Administrative
805 Director Fees 1,000.00
803 Bank Service Charges 25.00
811 Filing Fees 435.00
821 Insurance
6530 Liability Insurance 1,557.18
Total 821 Insurance 1,557.18
841 Licenses and Permits 161.33
867 Postage & Delivery 33.00
Total 801 Office Administration 3,211.51
901 Professional Fees
906 Audit 3,000.00
909 Legal Fees 3,000.00
Total 901 Professional Fees 6,000.00
921 Automobile Expenses
927 Auto Insurance 791.27
941 Auto Repairs 528.90
Total 921 Automobile Expenses 1,320.17
961 Travel & Ent
961 Travel & Ent 2,650.00
Total 961 Travel & Ent 2,650.00
981 Consultant 2,132.73
Total Expenses 25,142.29
Net Ordinary Income -24,653.48
Net Income ---------------------------------- -24653.48
GREEN MACHINE DEVELOPMENT CORP.
STATEMENT OF CASH FLOWS
June through September, 1999
OPERATING ACTIVITIES
Net Income -24,653.48
Adjustments to reconcile Net Income
to net cash provided by operations:
121 YDB Investment 3,909.27
321 Mortgage Payable -10,000.00
316 Shareholder Loan -3,909.27
Net cash provided by Operating Activities -34.653.48
INVESTING ACTIVITIES
197 Deposit Rent -2,496.00
Net cash provided by investing Activities -2,496.00
Net cash increase for period -37,149.48
Cash at beginning of period 60,713.08
Cash at end of period 23,563.60
