UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549 FORM 10-QSB
(X )QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
( )TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
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COMMISSION FILE NUMBER 000-25579
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HADRO RESOURCES, INC.
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
NEVADA 87-0571853
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(STATE OR OTHER JURISDICTION OF (I.R.S.EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
145 TYEE ROAD #1526, POINT ROBERTS, WA 98281
- ----------------------------------------------- -----------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
604-943-9414
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
(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), YES [ X ] NO [ ] AND (2) HAS BEEN SUBJECT TO
SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES [X ] NO [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LAST PRACTICABLE DATE.
CLASS OUTSTANDING AS OF MARCH 31, 2000
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COMMON STOCK, $0.001 13,054,200
<PAGE>
INDEX
<TABLE>
<CAPTION>
Page
Number
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PART I.
<S> <C>
ITEM 1. . Review report 3
Balance Sheets . . . . . . . . . . . . . . . . 4
March 31, 2000 and December 31, 1999
Statements of Operations
For the three months ended March 31, 2000 and 1999. 5
and the period from December 3, 1997 to March 31, 2000
Statements of Cash Flows
For the three months ended March 31, 2000 and 1999 . 6
and the period from December 3, 1997 to March 31, 2000
Notes to Financial Statements.. . . . . . . . . 7
ITEM 2.. Plan of Operations 10
PART II. . . . . . . Signatures 11
</TABLE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ANDERSEN ANDERSEN & STRONG, L.C.
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS
Salt Lake City, Utah 84106
Telephone 801 486-0096
Fax 801 486-0098
REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
Hadro Resources, Inc.
We have reviewed the condensed balance sheet of Hadro Resources, Inc.
(development stage company) as of March 31, 2000 and the related condensed
statement of operations and the condensed statement of cash flows for the
three-months ended March 31, 2000 and 1999 and the periods December 3, 1997
(date of inception) to March 31. 2000. These financial statements are the
responsibility of the company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.
Andersen Andersen and Strong
Salt Lake City, Utah
May 10, 2000
<PAGE>
HADRO RESOURCES, INC.
( DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
MARCH 31, 2000 AND DECEMBER 31, 1999
<TABLE>
<CAPTION>
MAR 31, DEC 31,
2000 1999
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $3,127 $9,197
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Total Current Assets $3,127 $9,197
========== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable - related parties $1,651 $1,651
Accounts payable 3,835 4,097
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Total Current Liabilities 5,486 5,748
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STOCKHOLDERS' EQUITY
Common stock
100,000,000 shares authorized, at $0.001 par
valu; 13,054,2000 shares issued and outstanding 13,054 13,054
Capital in excess of par value 138,945 126,795
Deficit accumulated during the development stage (154,358) (136,400)
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Total Stockholders' Equity (deficiency) (2,359) 3,449
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$3,127 $ 9,197
========= ========
The accompanying notes are an integral part of these financial statements.
</TABLE>
HADRO RESOURCES, INC.
( DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 AND THE
PERIOD DECEMBER 3, 1997 (DATE OF INCEPTION) TO MARCH 31, 2000
<TABLE>
<CAPTION>
THREE MONTHS ENDED
--------------------
<S> <C> <C> <C>
MAR 31 MAR 31 DEC 3, 1997
2000 1999 TO MAR 31, 2000
--------------- --------- -----------------
CASH FLOWS FROM
OPERATING ACTIVITIES
Net loss $(17,958) $(23,698) $(154,358)
Adjustments to reconcile net loss to
net cash provided by operating
activities
Contribution to capital - expenses 12,150 8,750 61,950
Changes in accounts payable (262) 8,144 5,485
Net (decrease) in Cash From Operations (6,070) (6,804) (86,923)
--------- --------- ----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of mineral lease - - -
----------- --------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of common stock - - 90,050
----------- --------- -----------
Net Increase (Decrease) in Cash (6,070) (6,804) 3,127
Cash at Beginning of Period 9,197 59,139 -
----------- --------- ------------
Cash at End of Period $3,127 $52,335 $ 3,127
=========== ========= ============
NON CASH FLOWS FROM OPERATING
ACTIVITIES
Contributions to capital by officers - 1999 $61,950
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</TABLE>
The accompanying notes are an integral part of these financial statements.
HADRO RESOURCES, INC.
( DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on December
3, 1997 with authorized common stock of 100,000,000 shares at $0.001 par value
with the name "Hadrosaurus Resources, Inc". On January 12, 1998 the name was
changed to Hadro Resources Inc.
The Company was organized for the purpose of acquiring a business opportunity
which management believes can be profitable.
The Company is in the development stage.
Since its inception the Company has completed a Regulation D offering of
4,174,200 shares of its capital stock for cash.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
- -------------------
The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
- ----------------
The Company has not yet adopted a policy regarding payment of dividends.
Income Taxes
- -------------
At March 31, 2000, the Company had a net operating loss carry forward of
$154,358. The tax benefit from the loss carry forward has been fully offset by
a valuation reserve because the use of the future tax benefit is doubtful, since
the Company has no operations on which to project future net profits.
The loss carryover will expire starting in 2014 through 2021.
Basic and Diluted Net Income (Loss) Per Share
- ----------------------------------------------------
Basic net income (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding. Diluted net income (loss) per
share amounts are computed using the weighted average number of common shares
and common equivalent shares outstanding as if shares had been issued on the
exercise of the preferred share rights unless the exercise becomes antidilutive
and then only the basic per share amounts are shown in the report.
HADRO RESOURCES, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Financial Instruments
- ----------------------
The carrying amounts of financial instruments, including cash and accounts
payable, are considered by management to be their estimated fair values. These
values are not necessarily indicative of the amounts that the Company could
realize in a current market exchange.
Estimates and Assumptions
- ---------------------------
Management uses estimates and assumptions in preparing financial statements in
accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets
and liabilities, the disclosure of contingent assets and liabilities, and the
reported revenues and expenses. Actual results could vary from the estimates
that were assumed in preparing these financial statements.
Comprehensive Income
- ---------------------
The Company adopted Statement of Financial Accounting Standards No. 130. The
adoption of this standard had no impact on the total stockholder's equity on
December 31, 1999.
Recent Accounting Pronouncements
- ----------------------------------
The Company does not expect that the adoption of other recent accounting
pronouncements will
have a material impact on its financial statements.
3. RELATED PARTY TRANSACTIONS
Related parties have acquired 58% of the common stock issued.
4. GOING CONCERN
Management is currently seeking a business opportunity which it believes can
be profitable. To be successful in this effort the Company will need additional
working capital.
Continuation of the Company as a going concern is dependent upon obtaining
additional working capital and the management of the Company has developed a
strategy, which it believes will accomplish this objective through additional
equity funding, and long term financing, which will enable the Company to
operate in the coming year.
Management recognizes that, if it is unable to raise additional capital, the
Company cannot be successful in its efforts.
ITEM 2. PLAN OF OPERATIONS
The Company's management is seeking and intends to acquire interests in various
business opportunities which, in the opinion of management, will provide a
profit to the Company but it does not have the working capital to be successful
in this effort.
Continuation of the Company as a going concern is dependent upon obtaining the
working capital to provide working capital for its planned activity. The
management of the Company has developed a strategy, which they believe can
obtain the needed working capital through additional equity funding and long
term debt which will enable the Company to be successful in its planned efforts.
Liquidity and Capital Resources
- ----------------------------------
The Company will need additional working capital to to finance its planned
activity.
Results of Operations
- -----------------------
The Company has had no operations during this reporting period.
PART 2 - SIGNATURES
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 there unto duly authorized.
HADRO RESOURCES, INC.
[Registrant]
Dated May 9, 2000 By /s/ Frank Donis
-------------------------------
Frank Donis, President
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-1999
<CASH> 3127
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3127
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 5486
<BONDS> 0
0
0
<COMMON> 13054
<OTHER-SE> (15,413)
<TOTAL-LIABILITY-AND-EQUITY> 3127
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 17958
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (17958)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
