UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1998
-------------------
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
--- ---
Commission File No. 0-25107
L.P.R. CYBERTEK, INCORPORATED
-----------------------------
(Exact name of registrant as specified in its charter)
Colorado 84-1316284
-------- ---------------------------------------
State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization
19000 E. Mansfield Drive
Aurora, CO 80013
--------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (303) 680-1593
--------------
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. [X]Yes [ ]No
The number of shares outstanding of the issuer's classes of common shares,
as of the latest practicable date:
Class Outstanding at December 31, 1998
Common Stock, $.0001 10,000,000 shares
par value -----------------
Outstanding Securities
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
L.P.R. CYBERTEK, INCORPORATED
(A Development Stage Company)
BALANCE SHEET
(Unaudited)
ASSETS
DECEMBER 31,
1998
------------
CURRENT ASSETS:
Cash $ 1,963
----------
PROPERTY AND EQUIPMENT:
Computer equipment 2,099
Accumulated depreciation (1,328)
----------
771
----------
$ 2,734
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ --
Stockholder advance 2,000
----------
Total current liabilities 2,000
----------
CONTINGENCIES:
STOCKHOLDERS' EQUITY:
Preferred stock, $.0001 par value, 20,000,000 shares
authorized, no shares issued --
Common stock, $.0001 par value, 100,000,000 shares
authorized, 10,000,000 shares issued and outstanding 1,000
Additional paid-in-capital 19,200
Contributed capital 10,000
Deficit accumulated during development stage (29,466)
----------
Total stockholder's equity 734
----------
$ 2,734
==========
See accompanying notes to financial statements.
2
<PAGE>
L.P.R. CYBERTEK, INCORPORATED
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
Period from
Three Months January 30, 1995
Ended (inception)
December 31, through
---------------- December 31,
1997 1998 1998
---- ---- ----
REVENUES $ - $ - $ -
---------- ---------- ----------
GENERAL AND ADMINISTRATIVE
EXPENSES 321 3,074 29,466
---------- ---------- ----------
NET (LOSS) $ (321) $ (3,074) $ (29,466)
========== ========== ==========
BASIC EARNINGS (LOSS) PER
SHARE $ * $ *
========== ==========
Basic Weighted Average Number of
Shares Outstanding 10,000,000 10,000,000
========== ==========
* Amount is less than $.01 per share.
See accompanying notes to financial statements.
3
<PAGE>
L.P.R. CYBERTEK, INCORPORATED
(A Development Stage Company)
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
DEFICIT
ACCUMULATED
COMMON STOCK ADDITIONAL DURING
------------------ PAID-IN CONTRIBUTED DEVELOPMENT
SHARES AMOUNT CAPITAL CAPITAL STAGE TOTAL
------ ------ ------- ------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Common stock issued
to founders for services
on January 30, 1995
$.000025 per share 8,000,000 $ 800 $ (600) $ - $ - $ 200
Common stock issued for
cash on August 1, 1995,
$.01 per share 1,000,000 100 9,900 - - 10,000
Common stock issued for
cash on December 15, 1995,
$.01 per share 500,000 50 4,950 - - 5,000
Net (loss) - - - - (8,606) (8,606)
---------- ------ ------- ------- ------- --------
BALANCES, December 31, 1995 9,500,000 950 14,250 - (8,606) 6,594
Common stock issued for
services on February 10,
1996, $.01 per share 500,000 50 4,950 - - 5,000
Net (loss) - - - - (10,202) (10,202)
---------- ------ ------ ------- -------- --------
BALANCES, December 31, 1996 10,000,000 1,000 19,200 - (18,808) 1,392
Net (loss) - - - - (824) (824)
---------- ------ ------- ------- -------- --------
BALANCES, December 31, 1997 10,000,000 1,000 19,200 - (19,632) 568
Capital contribution - - - 10,000 - 10,000
Net (loss) - - - - (6,760) (6,760)
---------- ------ ------- ------- -------- --------
BALANCES, September 30, 1998 10,000,000 1,000 19,200 10,000 (26,392) 3,808
Unaudited)
- ----------
Net (loss) - - - - (3,074) (3,074)
---------- ------ ------- ------- -------- --------
BALANCES, December 31, 1998 10,000,000 $1,000 $19,200 $10,000 $(29,466) $ 734
========== ====== ======= ======= ======== ========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
L.P.R. CYBERTEK, INCORPORATED
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
Period from
Three Months January 30, 1995
Ended (inception)
December 31, through
---------------- December 31,
1997 1998 1998
---- ---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $ (321) $ (3,074) $ (29,466)
Adjustments to reconcile net
(loss) to net cash provided
(used) by operating activities:
Depreciation 110 110 1,328
Stock issued for services -- -- 5,200
Changes in:
Accounts payable -- -- --
Stockholder advances -- 2,000 2,000
---------- ---------- ----------
Net cash (used) by operating
activities (211) (964) (20,938)
---------- ---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and
equipment -- -- (2,099)
---------- ---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital contribution- -- -- 10,000
Proceeds from sale of stock -- -- 15,000
---------- ---------- ----------
Net cash provided by financing
activities -- -- 25,000
---------- ---------- ----------
NET INCREASE (DECREASE) IN CASH (211) (964) 1,963
CASH, beginning of period 851 2,927 --
---------- ---------- ----------
CASH, end of period $ 640 $ 1,963 $ 1,963
========== ========== ==========
See accompanying notes to financial statements.
5
<PAGE>
L.P.R. CYBERTEK, INCORPORATED
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
L.P.R. Cybertek, Incorporated (the Company) was organized January 30,
1995 under the laws of the State of Colorado for the purpose of
providing a vehicle to raise capital and seek business opportunities.
Between 1995 and 1996, the Company was unsuccessful in developing a
business to create and manage computer web sites. Since 1997, the
Company has been substantially inactive. The Company is in the
development stage as defined in Statement of Financial Accounting
Standards No. 7.
Prior to 1998, the Company's fiscal year end was December 31. During
1998, the Company changed its fiscal year end to September 30.
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial statements, and pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and note
disclosures normally included in annual financial statements prepared
in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to those rules and regulations, although
the Company believes that the disclosures made herein are adequate to
make the information presented not misleading. These financial
statements should be read in conjunction with the financial statements
for the year ended September 30, 1998 included in the Company's Form
10-SB.
The unaudited financial statements as of December 31, 1998 and for the
three month periods ended December 31, 1997 and 1998, reflect all
adjustments, consisting only of normal recurring adjustments, that, in
the opinion of management, are necessary to present fairly the
financial position and results of operations of the Company for these
interim periods. Results of operations for the interim periods
presented are not necessarily indicative of the results of operations
for the full fiscal year.
2. INCOME TAXES
The Company accounts for income taxes in accordance with Statement of
Financial Accounting Standards No. 109, "ACCOUNTING FOR INCOME TAXES."
Under this method, deferred tax assets and liabilities are recognized
for the estimated future tax effects of temporary differences between
the tax basis of assets and liabilities and amounts reported in the
accompanying financial statements. Valuation allowances are
established when necessary to reduce deferred tax assets to the amount
expected to be realized. Income tax expense consists of the tax
payable or refundable for the current period and the change during the
period in net deferred tax assets and liabilities.
The Company has no operations at this time. The $29,466 in losses
incurred by the Company since its inception represents a deferred tax
asset of $5,800 as of December 31, 1998. The Company has provided a
valuation allowance in the full amount of the deferred tax asset since
there is no assurance of future taxable income.
6
<PAGE>
L.P.R. CYBERTEK, INCORPORATED
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
3. EARNINGS (LOSS) PER SHARE
The Company has adopted Statement of Financial Accounting Standards
No. 128, "EARNINGS PER SHARE." This standard requires the Company to
present basic and diluted earnings per share. Basic earnings per
share is computed by dividing net income (loss) by the weighted
average number of common shares outstanding during the period. The
Company has no diluted earnings (loss) per share.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
GENERAL
L.P.R. Cybertek, Incorporated (the Company) was organized January 30,
1995 under the laws of the State of Colorado for the purpose of providing
a vehicle to raise capital and seek business opportunities. Between 1995
and 1996, the Company was unsuccessful in developing a business to create
and manage computer web sites. Since 1997, the Company has been
substantially inactive. The Company is in the development stage as defined
in Statement of Financial Accounting Standards No. 7.
When used in this Form 10-QSB, the words "anticipate", "estimate",
"except", "project", and similar expressions are intended to identify
forward-looking statements. Such statements are subject to certain risks,
uncertainties and assumptions including the possibility that the Company's
Internet backbone will fail to generate projected revenues or the Company
will be unable to satisfy certain settlement agreements. Should one or
more of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those
anticipated, estimated or projected.
LIQUIDITY AND CAPITAL RESOURCES
The Company is 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 services valued in the
amount of $5,200, the sale of its Common Stock to one (1) individual for
$15,000 and the additional contributed capital from two (2) shareholders.
No additional shares were issued in connection with this contribution. The
Company's balance sheet as of December 31, 1998, reflects limited assets
and limited liabilities. Further, there exists no agreements or
understandings with regard to loan agreements by or with the Officers,
Directors, principals, affiliates or shareholders of the Company.
The Company will attempt to carry out its plan of business as
discussed above. The Company cannot predict to what extent its lack of
liquidity and capital resources will hinder its business plan prior to the
consummation of a business combination.
7
<PAGE>
RESULTS OF OPERATIONS
During the period from January 1995 (inception) through December 31,
1998, the Company has engaged in limited operations and the preparation for
registration of its securities under the Securities Exchange Act of 1934,
as amended. No revenues have been received by the Company during this
period.
The Company anticipates that until a business combination is completed
with an acquisition candidate, it will not generate revenues and may
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 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. Once a business combination is completed, the Company's
needs for additional financing are likely to increase substantially,
however, there currently exists no plan or understanding by which the
Company will raise capital, either debt or equity, over the next twelve
(12) months.
No commitments to provide additional funds have been made by
management or other stockholders. Accordingly, there can be no assurance
that any funds will be available to the Company to allow it to cover its
expenses.
The Company might seek to compensate providers of services by
issuances of stock in lieu of cash.
IMPACT OF THE YEAR 2000 ISSUE
The Year 2000 Issue is the result of computer programs being written
using two digits rather than four to define the applicable year. Any of
the Company's computer programs that have date-sensitive software may
recognize a date using "00" as the year 1900 rather than the year 2000.
This could result in a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary
inability to process transactions, send invoices, or engage in similar
normal business activities.
Based on a recent assessment, the Company, in its present status,
determined that it will not be required to modify or replace significant
portions of its software so that its computer systems will properly utilize
dates beyond December 31, 1999.
8
<PAGE>
PART II
Item No. 1 - Legal Proceedings
-----------------
Not Applicable.
Item No. 2 - Changes in Securities
---------------------
Not Applicable.
Item No. 3 - Defaults upon Senior Securities
-------------------------------
Not Applicable.
Item No. 4 - Submission of Matter to a Vote of Securities Holders
----------------------------------------------------
Not Applicable
Item No. 5 - Other Information
-----------------
Not Applicable.
Item No. 6 - Exhibits and Reports on Form 8-K
--------------------------------
(a) No reports on Form 8-K were filed during the three months
ended December 31, 1998.
(b) Exhibits
27 Financial Data Schedule
9
<PAGE>
SIGNATURES
----------
In accordance with 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 thereunto duly authorized.
L.P.R. CYBERTEK, INCORPORATED
By: /s/ PATRICK R. LALANDE
-------------------------------
Patrick R. Lalande
President
Date: March 11, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 1,963
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,963
<PP&E> 2,099
<DEPRECIATION> 1,328
<TOTAL-ASSETS> 2,734
<CURRENT-LIABILITIES> 2,000
<BONDS> 0
0
0
<COMMON> 1,000
<OTHER-SE> (266)
<TOTAL-LIABILITY-AND-EQUITY> 2,734
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 3,074
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,074)
<EPS-PRIMARY> 0<F1>
<EPS-DILUTED> 0
<FN>
<F1>Amount is less than $.01 per share.
</FN>
</TABLE>
