UNITED STATES
SECURITIES EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
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[X] Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended April 30, 1999
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EUROPEAN TECHNOLOGY ENTERPRISES INC.
(Exact name of registrant as specified in its charter)
Delaware 13-4044714
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State of Incorporation IRS Employer ID No.
2500 City West Boulevard
Destec Tower, Suite 300
Houston, Texas 77042
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number (713) 267-2348
Check here whether the issuer (1) has filed all reports required
to be filed by Sections 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_______
As of April 30, 1999, the following shares of the
Registrant's common stock were issued and outstanding:
Voting common stock 6,000,000
Traditional Small Business Disclosure (check one): Yes X No
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INDEX
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements . . . . . . . . . . . . . . . . .3
CONDENSED CONSOLIDATED BALANCE SHEET . . . . . . . . .4
CONDENSED CONSOLIDATED INCOME STATEMENT. . . . . . . .5
STATEMENT OF CASH FLOWS. . . . . . . . . . . . . . . .6
Note 1. NATURE OF BUSINESS AND SIGNIFICANT
ACCOUNTING POLICIES. . . . . . . . . . . . .8
Note 2. USE OF OFFICE SPACE. . . . . . . . . . . . .8
Note 3. EARNINGS PER SHARE. . . . . . . . . . . . . 8
Note 4. LIQUIDITY . . . . . . . . . .. . . . . . . .9
Item 2. Management's Discussion And Analysis or Plan of
Operations. . . . . . . . . . . . . . . . . . . . . .10
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . 13
Item 2. Changes in Securities. . . . . . . . . . . . . . . . 13
Item 3. Defaults upon Senior Securities. . . . . . . . . . . 13
Item 4. Submission of Matters to a Vote of
Security Holders . . . . . . . . . . . . . . . . . . 13
Item 5. Other information. . . . . . . . . . . . . . . . . . 13
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . 13
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
To the Board of Directors of EUROPEAN TECHNOLOGY ENTERPRISES INC.
Houston, Texas
We have reviewed the accompanying balance sheet of European
Technology Enterprises Inc., (a development stage company) as of
April 30, 1999 and the related statements of loss and accumulated
deficit, and cash flows for the three months then ended, in
accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public
Accountants. All information included in these financial
statements is the representation of the management of European
Technology Enterprises Inc.
A review consists principally of inquiries of Company personnel
and analytical procedures applied to financial data. It is
substantially less in scope than an audit 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 in order for them to be in conformity with generally
accepted accounting principles.
Graf Repetti & Co., LLP
Dated: New York, New York
June 10, 1999
EUROPEAN TECHNOLOGY ENTERPRISES INC.
CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
As Of As Of
April 30, 1998 Jan. 31, 1999
(Unaudited) (Audited)
--------------------------------
<S> <C> <C>
ASSETS
Current Assets
Cash $0 $0
Other Current Assets 0 0
_________ ________
Total Current Assets 0 0
Other Assets 0 0
_________ ________
TOTAL ASSETS $0 $0
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $0 $0
Accrued Expenses 4,013 12,450
_________ ________
Total Current Liabilities 4,013 12,450
Loan Payable 12,450 0
_________ ________
Total Liabilities 16,463 12,450
Stockholders' Equity
Common Stock, $.001 par value,
Authorized 25,000.000 Shares;
Issued and Outstanding
6,000,000 Shares 6,000 6,000
Additional Paid in Capital 59,650 59,050
Deficit Accumulated During the
Development Stage (82,113) (77,500)
_________ ________
Total Stockholders' Equity (16,463) (12,450)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $0 $0
</TABLE>
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EUROPEAN TECHNOLOGY ENTERPRISES INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS)
<TABLE>
For the 3 Mos Ended For the 3 Mos Ended From
April 30 January 30 Inception to
1999 1998 1999 1998 Apr. 30, 1999
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<S> <C> <C> <C> <C> <C>
TOTAL REVENUES: $ 0 N/A 0 N/A 0
OPERATING EXPENSES:
Accounting 1,500 N/A 2,400 N/A 3,900
Legal 2,500 10,000 12,500
Rent Expense (Note 2) 600 600 5,600
Filing Fee 13 13 113
Other Start Up Costs 0 0 6,000
Other Income 0 0 0
________ _______ ________ ________ __________
NET LOSS (4,613) N/A (13,013) N/A (82,113)
NET LOSS PER SHARE (.00) (.00) (.02)
Weighted Average
Number of Shares
Outstanding 6,000,000 6,000,000 3,775,294
</TABLE>
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EUROPEAN TECHNOLOGY ENTERPRISES INC.
STATEMENT OF CASH FLOWS (unaudited)
<TABLE>
For the 3 mos For the period
Ended From Inception
to to
April 30, 1999 April 30, 1999
________________________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Loss $ (4,613) $(82,113)
Adjustments to Reconcile Net Loss
to Net Cash Used in operating
Activities:
Changes in Assets and Liabilities
Increase in Accounts Payable and
Accrued Expenses (8,437) 4,013
________ __________
Total Adjustments (8,437) 4,013
Net Cash Used in
Operating Activities (13,050) (78,100)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase in Loan Payable 12,450 12,450
Additional Paid in Capital
Contributed by Shareholder 600 59,650
Proceeds from Issuance of
Capital Stock 0 6,000
________ __________
Net Cash Provided
by Financing Activities 13,050 78,100
Net Change in Cash 0 0
Cash at Beginning of Period 0 0
Cash at End of Period $ 0 0
Supplemental Disclosure of
Cash Flow Information
Cash Paid During the Period for
Interest Expense 0 0
Corporate Taxes $ 0 0
</TABLE>
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EUROPEAN TECHNOLOGY ENTERPRISES INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999
NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
A. Description of Company
EUROPEAN TECHNOLOGY ENTERPRISES INC., ("the Company") is a for-
profit corporation, incorporated under the laws of the State of
Delaware on December 31, 1996. European Technology Enterprises
Inc.'s principal objective is to provide low-cost international
telephone service.
B. Basis of Presentation
Financial statements are prepared on the accrual basis of
accounting. Accordingly, revenue is recognized when earned and
expenses when incurred.
C. Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect certain reported
amounts ind disclosures. Accordingly, actual results could
differ from these estimates. Significant estimates in the
financial statements include the assumption that the Company will
continue as a going concern. See Note 4.
NOTE 2 - USE OF OFFICE SPACE
The Company uses 100 square feet of space for its executive
offices at Destec Tower, 2500 City West Boulevard, Houston, Texas
which it receives from one of its shareholders at no cost. The
fair market value of this office is $200 per month, which is
reflected as an expense with a corresponding credit to additional
paid-in capital.
NOTE 3 - EARNINGS PER SHARE
FOR THE THREE MONTHS ENDED
APRIL 30, 1999
Net Loss Per Share $ (0.00)
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NOTE 4 - LIQUIDITY
The Company's viability as a going concern is dependent upon
raising additional capital, and ultimately, having net income.
The Company's limited operating history, including its losses and
no revenues, primarily reflect the operations of its early stage.
As a result, the Company had from time of inception to April 30,
1999 no revenue and a net loss from operations of $82,113. As of
April 30, 1998, the Company had a net capital deficiency of
$16,463.
The Company requires additional capital principally to meet its
costs for the implementation of its business plan, for general
and administrative expenses and to fund costs associated with the
start up of its telecommunications operations. It is not
anticipated that the Company will be able to meet its financial
obligations through internal net revenue in the foreseeable
future. European Technology Enterprises, Inc. does not have a
working capital line of credit with any financial institution.
Therefore, future sources of liquidity will be limited to the
Company's ability to obtain additional debt or equity funding.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION
RESULTS OF OPERATIONS
The Company has been researching the development of prospects in
the various markets associated with the telecommunications
industry. Management has been carefully exploring acquisitions
that may be available once the Company's filings have cleared.
Additionally, management has been seeking to raise funds for the
Company and to consolidate the niche areas of the industry.
The Company's initial product focus will be on providing call re-
routing services to business's with international call traffic.
In addition to this the Company intend to operate a charge card
facility for corporate clients and individuals. The card is aimed
at the business traveler and can be used to make substantial
savings on calls back to the UK.
Once the Company initiates its business plan, the Company will be
subject to the rules and regulations of OFTEL, the
telecommunications regulatory body in the United Kingdom.
Management will takes all steps necessary to insure that the
Company is in compliance with all rules and regulations of OFTEL
and that the Company's operations will remain in compliance with
those regulations.
The Company requires additional capital principally to meet its
costs for the implementation of its business plan, for general
and administrative expenses and to fund costs associated with
start up and trading of retail outlets. It is not anticipated
that the Company will be able to meet its financial obligations
through internal net revenue in the foreseeable future. The
Company does not have a working capital line of credit with
any financial institution. Therefore, future sources of
liquidity will be limited to the Company's ability to obtain
additional debt or equity funding. The Company anticipates that
its existing capital resources will enable it to maintain its
current implemented operations for at least 12 months, however,
full implementation of its business plan is dependent upon its
ability to raise substantial funding. Management's plan is to
find and consummate a merger or business acquisition in order to
maximize the benefit of ownership by shareholders in the Company.
The Company has engaged in research to identify the most
profitable markets to develop its plan. The findings of that
research indicate that the telecommunications industry, although
dominated by big name players, is ripe for further growth. The
Company has also researched competition in the industry and
evaluated the costs involved with setting up its technology
infrastructure. The Company has also been identifying the
particular areas of the telecommunications industry which it
feels there is the best growth prospects, call routing and most
feasible to establish and operate. Management has also been
addressing and researching the immense competition coming from
the cellular telephone industry which threaten the use of land
phones. Management has also been exploring possible acquisition
targets that could be carried out once the requisite funding is
in place. At this time however, no such discussions or
negotiations have commenced with any such entity.
The Company has not used any notices or advertisements in its
search for any business opportunities.
The Company has had no discussions, understandings or agreements
with any consultant in regard to the Company's business
activities.
The Company's officers in the past have not used any particular
consultants or advisers on a regular basis.
In the event the Company is required or needs to hire independent
consultants, the Company will consider as criteria for hiring
such consultant the area of expertise which it will require the
consultant to be knowledgeable with, the experience of the
consultant in the particular field, the education of the
consultant, the cost to the Company to retain such consultant and
the availability of the consultant for the purpose of devoting
its time and effort to the Company.
Because the Company lacks funds, it may be necessary for the
officers and directors to either advance funds to the Company or
to accrue expenses until such time as the Company begins to
generate sufficient income to cover such expenses. Management
intends to hold expenses to a minimum and to obtain services on a
contingency basis when possible. Further, the Company's
directors will forego any compensation until such time as the
Company begins to generate sufficient income to cover such
expenses. However, if the Company engages outside advisors or
consultants in search for business opportunities, it may be
necessary for the Company to attempt to raise additional funds.
There is no assurance that the Company will be able to obtain
additional funding when and if needed, or that such funding, if
available, can be obtained on terms acceptable to the Company.
There is no assurance that the Company will be able to obtain
additional funding when and if needed, or that such funding, if
available, can be obtained on terms acceptable to the Company.
In the opinion of management, inflation has not and will not have
a material effect on the operations of the Company until such
time as the Company successfully completes an acquisition or
merger. At that time, management will evaluate the possible
effects of inflation on the Company as it relates to its business
and operations following a successful acquisition or merger.
The Company has no recent operating history and no representation
is made, nor is any intended, that the Company will be able to
carry on future business activities successfully. Further, there
can be no assurance that the Company will have the ability to
acquire or merge with an operating business, develop sustaining
business opportunities or acquire property that will be of
material value to the Company. In the opinion of management,
inflation has not and will not have a material affect on the
operations of the Company as it does not currently have any
significant assets, debt or income.
YEAR 2000 DISCLOSURE
The Company has not yet commenced any material active operation
systems which will be affected by the Year 2000 problem. The
Company is still carrying out market research into the
telecommunications industry and has not set up any technical
operations. Therefore new systems which the Company expects to
set up this year will be implemented with software addressing or
correcting the year 2000 problem. This will prevent any
potential disruptions to the Company's operations. However, as
there is a wide uncertainty as to the effects of the Year 2000
problem on the entire business community, there is no guarantee
that the Company's operations will not be affected by the Year
2000 problem. This disclosure complies with the directives of
the Securities and Exchange Commission, specifically Staff Legal
Bulletin No. 5 (CF/IM), regarding Year 2000 issues.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are currently no pending legal proceedings against the
company.
Item 2. Changes in Securities
The instruments defining the rights of the holders of any class
of registered securities have not ben modified.
Item 3. Defaults upon Senior Securities
There has been no default in the payment of principal, interest,
sinking or purchase fund installment.
Item 4. Submission of Matters to a Vote of Security Holders
No matter has been submitted to a vote of security holders during
the period covered by this report.
Item 5. Other information
There is no other information to report which is material to the
company's financial condition not previously reported.
Item 6. Exhibits and Reports on Form 8-K
There are no exhibits attached and no reports on Form 8-K were
filed during the quarter for which this report is filed.
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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.
EUROPEAN TECHNOLOGY ENTERPRISES INC.
(Registrant)
Date: July 28, 1999
/s/ Andrew Turner
President
