U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
X...Quarterly report under section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended May 31, 1999.
....Transition report under section 13 or 15(d) of the Securities
Exchange Act of 1934 [No Fee Required] for the transition period
from _________ to _________.
Commission File No: __000-23561__
SUNBURST ACQUISITIONS IV, INC.
---------------------------------------
(Name of small business in its charter)
Colorado 84-1431797
- ---------------------- -----------------------
(State or other (IRS Employer Id. No.)
jurisdiction of Incorporation)
4807 South Zang Way Morrison, Colorado 80465
- -------------------------------------------------------------------
(Address of Principal Office) Zip Code
Issuer's telephone number: (303) 979-2404
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 12
months (or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes __X__ No _____
At 5/31/99 the following shares were outstanding: Common Stock,
no par value, 2,435,000 shares.
Transitional Small Business Disclosure
Format (Check one):
Yes _____ No __X__
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS AND EXHIBITS
(a) The unaudited financial statements of registrant for the
three months ended May 31, 1999, follow. The financial statements
reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim period
presented.
SUNBURST ACQUISITIONS IV, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
Quarter Ended May 31, 1999
(Unaudited)
<PAGE>
CONTENTS
Accountants' report 1
Balance Sheet 2
Statements of Operartions 3
Statements of Cash Flows 4
Notes to Financial Statements 5
<PAGE>
The Board of Directors and Stockholder's of
Sunburst Acquisitions IV, Inc.
The accompanying balance sheet of the Sunburst Acquisitions IV, Inc. (a
development stage company) as of May 31, 1999, and the related statements
of operations and cash flows for the period then ended were not audited by us
and according we do not express an opinion on them.
Denver, Colorado
June 18, 1999
COMISKEY & COMPANY
PROFESSIONAL CORPORATION
1
<PAGE>
Sunburst Acquisitions IV, Inc.
(A Development Stage Company)
BALANCE SHEET
May 31, 1999
(Unaudited)
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ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,424
---------
Total current assets 1,424
OTHER ASSETS:
Organizational costs (net) 195
---------
TOTAL ASSETS $ 1,619
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 300
---------
Total current liabilities 300
---------
STOCKHOLDERS' EQUITY
Preferred stock, no par value
20,000,000 shares authorized;
no shares issued and outstanding -
Common stock, no par value;
100,000,000 shares authorized;
2,435,000 shares issued and
outstanding 18,935
Additional paid-in capital 1,050
Deficit accumulated
during the
development stage (18,666)
---------
1,319
---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 1,619
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
Sunburst Acquisitions IV, Inc.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
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<S> <C> <C> <C> <C> <C>
For the
period from
inception
(August 27,
1997) to For the three months For the nine months
May 31, ended May 31, ended May 31,
1999 1999 1998 1999 1998
----------- --------- --------- --------- ---------
REVENUES $ - $ - $ - $ - $ -
----------- --------- --------- --------- ---------
EXPENSES
Legal fees 6,010 (256) - 1,823 4,200
General office 328 - 113 - 390
Bank charges - - - (21) -
Consulting fees 4,935 - - - -
Professional fees 4,027 380 748 1,910 1,748
Amortization 105 15 15 45 45
Transfer agent 1,827 430 - 1,117 -
Taxes and licenses 107 - - - -
Travel 277 - - - -
Rent 1,050 150 150 450 450
----------- --------- --------- --------- ---------
Total expense 18,666 719 1,026 5,324 6,833
----------- --------- --------- --------- ---------
NET LOSS (18,666) (719) (1,026) (5,324) (6,833)
Accumulated deficit
Balance, Beginning
of period - (17,947) (7,742) (13,342) (1,935)
----------- --------- --------- --------- ---------
Balance, End of period $ (18,666) $ (18,666) $ (8,768) (18,666) (8,768)
=========== ========= ========= ========= =========
NET LOSS PER SHARE $ (.01) $ (NIL) $ (NIL) $ (NIL) $ (NIL)
=========== ========= ========= ========= =========
WEIGHTED AVERAGE NUMBER
OF SHARES OF COMMON
STOCK AND COMMON STOCK
EQUIVALENTS OUTSTANDING 2,189,049 2,435,000 2,095,000 2,302,253 2,095,000
=========== ========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
Sunburst Acquisitions IV, Inc.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
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For the period
from inception
(August 27, For the nine For the nine
1997) to months ended months ended
May 31, May 31, May 31,
1999 1999 1998
--------------- ------------- -------------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net Loss $ (18,666) $ (5,324) $ (6,833)
Adjustments to reconcile
net loss to net cash used
by operating activities:
Amortization expense 105 45 45
Rent expense 1050 450 450
Stock issued for
consulting fees 4,935 - -
Decrease in prepaid expenses - 23 -
Increase (decrease) in accounts
payable 300 (160) (300)
-------------- ------------- -------------
Net cash used by
operating activities (12,276) (4,966) (6,638)
CASH FLOWS FROM
INVESTING ACTIVITIES
Increase in organization costs (300) - -
-------------- ------------- -------------
Net cash used by
investing activities (300) - -
CASH FLOWS FROM
FINANCING ACTIVITIES
Issuance of common stock 6,000 6,000 -
Issuance of preferred stock
converted to common stock 8,000 - -
-------------- ------------- -------------
Net cash provided by
financing activities 14,000 6,000 -
-------------- ------------- -------------
Net increase (decrease)
in cash and cash
equivalents 1,424 1,034 (6,638)
CASH AND CASH EQUIVALENTS,
Beginning of Period - 390 8,000
-------------- ------------- -------------
CASH AND CASH EQUIVALENTS,
End of Period $ 1,424 $ 1,424 $ 1,362
============== ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Sunburst Acquisitions IV, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
May 31, 1999
(Unaudited)
1. Management's Representation of Interim Financial Information
------------------------------------------------------------
The accompanying financial statements have been prepared by Sunburst
Acquisitions IV, Inc. without audit pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
as allowed by such rules and regulations, and management believes that the
disclosures are adequate to make the information presented not misleading.
These financial statements include all of the adjustments which, in the opinion
of management, are necessary to a fair presentation of financial position and
results of operations. All such adjustments are of a normal and recurring
nature. These financial statements should be read in conjunction with the
audited financial statements at August 31, 1998.
2. Stockholder's Equity
--------------------
For the nine months ended May 31, 1999, the company sold 240,000 shares of
common stock to four existing shareholders for $0.025 per share.
For the quarter and nine months ended May 31, 1999 eight existing shareholders
converted 80,000 shares of preferred stock into 160,000 shares of common stock.
5
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR
PLAN OF OPERATIONS.
Liquidity and Capital Resources
The Company remains in the development stage and, since
inception, has experienced no significant change in liquidity or capital
resources or stockholder's equity other than the receipt of net proceeds
in the amount of $14,000 from its inside capitalization funds.
Consequently, the Company's balance sheet for the period ending May 31,
1999, reflects a current asset value of $1,424 and a total asset value of
$1,619, primarily in the form of cash, as compared to $1,362 and $1,617
in current and total assets as of May 31, 1998.
The Company's business plan is to seek, investigate, and, if
warranted, acquire one or more properties or businesses, and to pursue
other related activities intended to enhance shareholder value. The
acquisition of a business opportunity may be made by purchase, merger,
exchange of stock, or otherwise, and may encompass assets or a business
entity, such as a corporation, joint venture, or partnership. The
Company has very limited capital, and it is unlikely that the Company
will be able to take advantage of more than one such business
opportunity.
The Company will carry out its plan of business as discussed
above. The Company cannot predict to what extent its liquidity and
capital resources will be diminished prior to the consummation of a
business combination or whether its capital will be further depleted by
the operating losses (if any) of the business entity which the Company
may eventually acquire.
Results of Operations
During the period from August 27, 1997 (inception) through
May 31,1999, the Company has engaged in no significant operations
other than organizational activities, acquisition of capital and preparation
for registration of its securities under the Securities Exchange Act of
1934, as amended. No revenues were received by the Company during
this period.
For the quarter and nine months ended May 31, 1999, the Company
experienced losses of $719 and $5,324, as compared to the quarter and
nine months ended May 31, 1998 of $1,026 and $6,833. The
differences with losses for the quarter and nine months ended May 31,
1999 and 1998 are mainly attributable to timing differences of incurred
expenses relating to compliance and reporting requirements.
For the current fiscal year, the Company anticipates incurring
additional losses as a result of organizational expenses, expenses
associated with registration under the Securities Exchange Act of 1934,
and expenses associated with locating and evaluating acquisition
candidates. The Company anticipates that until a business combination is
completed with an acquisition candidate, it will not generate revenues and
may continue to operate at a loss after completing a business combination,
depending upon the performance of the acquired business.
Need for Additional Financing
The Company believes that its existing capital will be sufficient
to meet the Company's cash needs, including the costs of compliance
with the continuing reporting requirements of the Securities Exchange
Act of 1934, as amended, for a period of approximately one year.
Accordingly, in the event the Company is able to complete a business
combination during this period, it anticipates that its existing capital will
be sufficient to allow it to accomplish the goal of completing a business
combination. There is no assurance, however, that the available funds
will ultimately prove to be adequate to allow it to complete a business
combination, and once a business combination is completed, the
Company's needs for additional financing are likely to increase
substantially.
No commitments to provide additional funds have been made by
management or other stockholders. Accordingly, there can be no
assurance that any additional funds will be available to the Company to
allow it to cover its expenses.
Irrespective of whether the Company's cash assets prove to be
inadequate to meet the Company's operational needs, the Company
might seek to compensate providers of services by issuances of stock in
lieu of cash.
Year 2000 issues are not currently material to the Company's business,
operations or financial condition, and the Company does not currently anticipate
that it will incur any material expenses to remediate Year 2000 issues it may
encounter. However, Year 2000 issues may become material to the Company
following its completion of a business combination transaction. In the event,
the Company will be required to adopt a plan and a budget for addressing such
issues.
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBIT 27 - FINANCIAL DATA SCHEDULE
There have been no reports on Form 8-K for the quarter ending
May 31, 1999.
<PAGE>
Signatures
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SUNBURST ACQUISITIONS IV, INC.
(Registrant)
Date: June 25, 1999
/s/
Michael R. Quinn, President
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<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AND STATEMENTS OF OPERATIONS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH 10QSB FOR THE QUARTER ENDED May 31, 1999.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Aug-31-1999
<PERIOD-END> May-31-1999
<CASH> 1424
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1424
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1619
<CURRENT-LIABILITIES> 300
<BONDS> 0
0
0
<COMMON> 18935
<OTHER-SE> (17616)
<TOTAL-LIABILITY-AND-EQUITY> 1619
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 719
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (719)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (719)
<EPS-BASIC> (.000)
<EPS-DILUTED> (.000)
</TABLE>
