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 October 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: __000-24483__
SUNBURST ACQUISITIONS VI, INC.
---------------------------------------
(Name of small business in its charter)
Colorado 84-1461805
- ---------------------- -----------------------
(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 _____
Applicable only to issuers involved in bankruptcy proceedings during
the past five years
Check whether the issuer has filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court.
Yes _____ 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. At 10/31/99 the
following shares of common were outstanding: Preferred Stock, no par value,
100,000 shares; Common Stock, no par value, 1,935,000 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 October 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 VI, INC.
(A Development Stage Company)
FINANCIAL STATEMENTS
Quarter Ended October 31, 1999
(Unaudited)
<PAGE>
CONTENTS
Accountants' report F-1
Balance Sheet F-2
Statements of Operations F-3
Statements of Cash Flows F-4
Notes to Financial Statements F-5
<PAGE>
The Board of Directors and Stockholders of
Sunburst Acquisitions VI, Inc.
The accompanying balance sheet of the Sunburst Acquisitions VI, Inc. (a
development stage company) as of October 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
December 9, 1999
COMISKEY & COMPANY
PROFESSIONAL CORPORATION
F-1
<PAGE>
Sunburst Acquisitions VI, Inc.
(A Development Stage Company)
BALANCE SHEET
October 31, 1999
(Unaudited)
<TABLE>
<S> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 63
---------
Total current assets 63
TOTAL ASSETS $ 63
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 50
---------
Total current liabilities 50
STOCKHOLDERS' EQUITY
Preferred stock, no par value
20,000,000 shares authorized;
100,000 shares issued and outstanding 10,000
Common stock, no par value;
100,000,000 shares authorized;
1,935,000 shares issued and
outstanding 1,935
Additional paid-in capital 1,300
Deficit accumulated
during the
development stage (13,222)
---------
13
---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 63
=========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-2
<PAGE>
Sunburst Acquisitions VI, Inc.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C>
For the
period from
inception
(April 30,
1998) to For the three months For the six months
October 31, ended October 31, ended October 31,
1999 1999 1998 1999 1998
----------- --------- --------- --------- ---------
REVENUES $ - $ - $ - $ - $ -
----------- --------- --------- --------- ---------
EXPENSES
Amortization 300 225 15 240 30
Bank service charge 21 21 - 21 -
Consulting fees 1,935 - - - -
General office 709 4 - 389 49
Legal fees 4,862 908 2,353 1,003 3,849
Professional fees 3,490 - 470 1,200 1,470
Rent 900 150 150 300 300
Transfer agent 1,005 190 - 335 -
----------- --------- --------- --------- ---------
Total expense 13,222 1,498 2,988 3,508 5,698
----------- --------- --------- --------- ---------
NET LOSS (13,222) (1,498) (2,988) (3,508) (5,698)
Accumulated deficit
Balance, Beginning
of period - (11,724) (4,645) (9,714) (1,935)
----------- --------- --------- --------- ---------
Balance,
end of period $ (13,222) $ (13,222) $ (7,633) $ (13,222) $ (7,633)
=========== ========= ========= ========= =========
NET LOSS PER SHARE $ (0.01) $ (NIL) $ (NIL) $ (NIL) $ (NIL)
=========== ========= ========= ========= =========
WEIGHTED AVERAGE NUMBER
OF SHARES OF COMMON
STOCK AND COMMON STOCK
EQUIVALENTS
OUTSTANDING 2,135,000 2,135,000 2,135,000 2,135,000 2,135,000
=========== ========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-3
<PAGE>
Sunburst Acquisitions VI, Inc.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<S> <C> <C> <C>
For the period
from inception
(April 30, For the six For the six
1998) to months ended months ended
October 31, October 31, October 31,
1999 1999 1998
--------------- ------------- -------------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net Loss $ (13,222) $ (3,508) $ (5,698)
Adjustments to reconcile
net loss to net cash used
by operating activities:
Amortization 300 240 30
Rent expense 900 300 300
Stock issued for
consulting fees 1,935 - -
Decrease (increase)
in prepaid expenses - 319 (319)
Increase (decrease) in
accounts payable 50 (599) -
-------------- ------------- -------------
Net cash used by
operating activities (10,037) (3,248) (5,687)
CASH FLOWS FROM
INVESTING ACTIVITIES
Increase in organization costs (300) - (300)
-------------- ------------- -------------
Net cash used by
investing activities (300) - (300)
CASH FLOWS FROM
FINANCING ACTIVITIES
Capital contribution by
shareholder 400 400 -
Issuance of preferred
stock 10,000 - -
-------------- ------------- -------------
Net cash provided
financing activities 10,400 400 -
-------------- ------------- -------------
Net increase (decrease)
in cash and cash
equivalents 63 (2,848) (5,987)
CASH AND CASH EQUIVALENTS,
Beginning of Period - 2,911 10,000
-------------- ------------- -------------
CASH AND CASH EQUIVALENTS,
End of Period $ 63 $ 63 $ 4,013
============== ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
F-4
<PAGE>
Sunburst Acquisitions VI, Inc.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
(Unaudited)
1. Management's Representation of Interim Financial Information
------------------------------------------------------------
The accompanying financial statements have been prepared by Sunburst
Acquisitions VI, 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 April 30, 1999.
F-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 $10,400 from its inside capitalization funds.
Consequently, the Company's balance sheet for the period ending October 31,
1999 reflects a current asset value of $63 and a total asset value
of $63, entirely in the form of cash, as compared to $4,013 and $4,602
in current and total assets as of October 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 April 30, 1998 (inception) through
October 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 current fiscal year, the Company anticipates incurring a
loss as a result of expenses associated with registration under the Securities
Exchange Act of 1934, and expense 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 October 31, 1999 and 1998, the Company
showed net losses of $1,498 and $2,988, respectively. The decrease in
loss is due primarily to the timing differences related to expenses
incurred in relation to reporting requirements, and general and
administrative expenses.
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.
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
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
October 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 VI, INC.
(Registrant)
Date: December 9, 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 October
31, 1999.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Apr-30-2000
<PERIOD-END> Oct-31-1999
<CASH> 63
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 63
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 63
<CURRENT-LIABILITIES> 50
<BONDS> 0
0
10000
<COMMON> 1935
<OTHER-SE> (11922)
<TOTAL-LIABILITY-AND-EQUITY> 63
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 1498
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1498)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1498)
<EPS-BASIC> (0.00)
<EPS-DILUTED> (0.00)
</TABLE>
