CONFORMED COPY
FORM 10-Q SB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended November 30, 1998
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number: __0-23561__
SUNBURST ACQUISITIONS IV, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Colorado 84-1431797
_______________________________ _________________________________
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4807 South Zang Way, Morrison, Colorado 80465
________________________________________________________________________________
(Address of principal executive offices) (Zip Code)
(303) 979-2404
_______________________________________________________________________________
(Registrant's telephone number, including area code)
Not Applicable
_______________________________________________________________________
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes X No
___ ___
Indicate the number of shares outstanding of each of the issuer's classes of
stock, as of the latest practicable date.
Shares Outstanding
Class of Securities at January 4, 1999
___________________ ___________________
Common Stock, no par value 2,035,000
Preferred Stock, no par value 80,000
Transitional Small Business Disclosure Format
Yes No X
___ ___
<PAGE>
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements.
Accountants' Disclaimer of Opinion ....................... 3
Balance Sheet ............................................ 4
Statements of Loss and Accumulated Deficit ............... 5
Statements of Cash Flows ................................. 6
Notes to Financial Statements ............................ 7
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations ............ 8
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K. ....................... 9
Signatures .............................................. 10
<PAGE>
To the Board of Directors and Stockholders
of Sunburst Acquisitions IV, Inc.
The accompanying balance sheet of Sunburst Acquisitions IV, Inc.
(a development stage company), as of November 30, 1998, and the
related statements of loss and accumulated deficit and cash
flows for the period then ended were not audited by us and,
accordingly, we do not express an opinion on them.
Denver, Colorado
January 4, 1999
/s/ COMISKEY & COMPANY
PROFESSIONAL CORPORATION
3
<PAGE>
Sunburst Acquisitions IV, Inc.
(A Development Stage Company)
BALANCE SHEET
November 30, 1998
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 173
--------
Total current assets 173
OTHER ASSETS
Restricted cash -
Organization costs (net) 225
--------
Total other assets 225
TOTAL ASSETS $ 398
========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 109
Accounts payable - related party 393
--------
Total current liabilities 502
STOCKHOLDERS' EQUITY
Preferred stock, no par value; 20,000,000
shares authorized; 80,000 shares issued and
outstanding 8,000
Common stock, no par value; 100,000,000
shares authorized; 2,035,000 shares issued
and outstanding 4,935
Additional paid-in capital 750
Deficit accumulated during the
development stage (13,789)
---------
Total stockholders' equity (104)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 398
========
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Sunburst Acquisitions IV, Inc.
(A Development Stage Company)
STATEMENTS OF LOSS AND ACCUMULATED DEFICIT
<TABLE>
<S> <C> <C> <C>
Period
August 27, Three Three
1997 Months Months
(Inception) ended ended
to November November November
30, 1998 30, 1998 30, 1997
---------- ---------- ---------
REVENUES
Investment income $ - $ - $ -
EXPENSES
Legal fees 4,322 136 3,200
General office 328 - -
Bank charges - (21) -
Consulting fees 4,935 - -
Professional fees 2,118 - -
Amortization 75 15 15
Transfer agent 877 167 -
Taxes and licenses 107 - -
Travel 277 - -
Rent 750 150 150
-------- -------- --------
Total expenses 13,789 447 3,365
-------- -------- --------
NET LOSS (13,789) (447) (3,365)
Accumulated deficit
Balance, beginning of period - (13,342) -
-------- -------- --------
Balance, end of period $ (13,789) $ (13,789) $ (3,365)
======== ======== ========
NET LOSS PER SHARE $ (NIL) $ (NIL) $ (NIL)
======== ======== ========
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 2,123,043 2,195,000 2,095,000
========== ========== =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
Sunburst Acquisitions IV, Inc.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<S> <C> <C> <C>
Period
August 27, Three Three
1997 Months Months
(Inception) ended ended
to November November November
30, 1998 30, 1998 30, 1997
---------- ---------- --------
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $ (13,789) $ (447) $ (3,365)
Adjustments to reconcile
net loss to net cash used
by operating activities:
Amortization Expense 75 15 15
Rent expense 750 150 150
Stock issued for consulting fees 4,935 - -
Decrease in prepaid expenses - 23 -
Decrease in accounts
payable 109 (351) -
Increase in accounts
payable - related party 393 393 -
--------- --------- ---------
Net cash used by operating
activities (7,527) (217) (3,200)
CASH FLOWS FROM INVESTING
ACTIVITIES
Increase in organization
costs (300) - (300)
--------- --------- ---------
Net cash used by
investing activities (300) - (300)
CASH FLOWS FROM FINANCING
ACTIVITIES
Issuance of preferred stock 8,000 - -
--------- --------- ---------
Net cash provided
by financing activities 8,000 - -
--------- --------- ---------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS 173 (217) (3,500)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD - 390 8,000
--------- --------- ---------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 173 $ 173 $ 4,500
========= ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
6
[FN]
<PAGE>
Sunburst Acquisitions IV, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
November 30, 1998
(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.
7
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results 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 stockholders' equity other than the receipt of net proceeds
in the amount of $8,000 from its inside capitalization funds.
Consequently, the Company's balance sheet for the period ending November
30, 1998, reflects a current asset value of $173 and a total asset value
of $398, current assets are in the form of cash, while total assets
includes organizational costs, net of amortization.
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
November 30, 1998, the Company has engaged in no significant operations
other than organizational activities, acquisition of capital, preparation
for registration of its securities under the Securities Exchange Act of
1934, as amended, and compliance with disclosure requirements of the
integrated disclosure system. No revenues were received by the
Company during this period.
For the current fiscal year, the Company anticipates incurring a
loss as a result of organizational expenses, expenses associated with
compliance 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.
For the quarters ended November 30, 1998 and 1997, the Company
showed net losses of $447 and $3,365, respectively. The decrease in
loss is due primarily to the additional costs associated with a new
venture and incurred during the quarter ended November 30, 1997.
NEED FOR ADDITIONAL FINANCING
The Company believes that its existing capital will not 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, the Company intends to
secure additional capital from its existing shareholders to
pursue its business plan.
CONSIDERATION OF YEAR 2000 EFFECTS RELEVANT TO THE COMPANY
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 that event, the company will be required to adopt a plan
and a budget for addressing such issues.
PART II - OTHER INFORMATION
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
November 30, 1998.
<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: January 12, 1999
/s/
Michael R. Quinn, President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AND STATEMENTS OF LOSS AND ACCUMULATED DEFICIT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH 10QSB FOR THE QUARTER ENDED
NOVEMBER 30, 1998.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-END> NOV-30-1998
<CASH> 173
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 173
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 398
<CURRENT-LIABILITIES> 502
<BONDS> 0
0
8000
<COMMON> 4935
<OTHER-SE> (13039)
<TOTAL-LIABILITY-AND-EQUITY> 398
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 447
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (447)
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (447)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (447)
<EPS-PRIMARY> (0.001)
<EPS-DILUTED> (0.001)
</TABLE>
