UNITED STATES
SECURITIES 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 July 31, 2000
-----------------------------------------------------------------
EUROPEAN TECHNOLOGY ENTERPRISES INC.
(Exact name of registrant as specified in its charter)
Delaware 13-4044714
--------------- -------------------
State of Incorporation IRS Employer ID No.
2500 City West Boulevard
Destec Tower, Suite 300
Houston, Texas 77042
---------------------------------- -----
(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 July 31, 2000, 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
<PAGE>
<PAGE>
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
<PAGE>
<PAGE>
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
July 31, 2000 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
October 31, 2000
<PAGE>
<PAGE>
EUROPEAN TECHNOLOGY ENTERPRISES INC.
CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
As Of As Of
July 31, 2000 January 21, 2000
(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
Accrued Expenses $20,825 $12,550
_________ ________
Total Current Liabilities 20,825 12,550
Loan Payable - Warren Investments
Note 5 24,450 24,450
_________ ________
Total Liabilities 45,275 37,000
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 62,050 61,450
Deficit Accumulated During the
Development Stage (113,925) (104,450)
_________ ________
Total Stockholders' Equity (45,275) (37,000)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $0 $0
</TABLE>
<PAGE>
<PAGE>
EUROPEAN TECHNOLOGY ENTERPRISES INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS)
<TABLE>
For the 3 Mos Ended For the 3 Mos Ended
April 30 July 31
2000 1999 2000 1999
<S> <C> <C> <C> <C>
--------------------------------------------------
TOTAL REVENUES: $ 0 0 0 0
OPERATING EXPENSES:
Accounting 1,500 1,500 1,750 1,500
Legal 2,500 2,500 2,500 2,500
Rent Expense (Note 2) 600 600 600 600
Filing Fee 13 13 12 12
________ _______ ________ ________
NET LOSS (4,613) (4,613) ( 4,862) ( 4,612)
NET LOSS PER SHARE (.00) (.00) (.00) ( .00)
Weighted Average
Number of Shares
Outstanding 6,000,000 6,000,000 6,000,000 6,000,000
</TABLE>
<PAGE>
PAGE>
EUROPEAN TECHNOLOGY ENTERPRISES INC.
STATEMENT OF CASH FLOWS (unaudited)
<TABLE>
For the three For the three
Months Ended Months Ended
to to
July 31, 2000 July 31, 1999
________________________________________
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Loss $ (4,862) $( 4,612)
Adjustments to Reconcile Net Loss
to Net Cash Used in operating
Activities:
Changes in Assets and Liabilities:
Increase in Accounts Payable and
Accrued Expenses 4,262 1,512
Additional Paid in Capital:
Contributed by shareholders 600 600
________ __________
Total Adjustments 4,862 2,112
Net Cash Used in
Operating Activities 0 ( 2,500)
CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase in Loan Payable 0 2,500
________ __________
Net Cash Provided
by Financing Activities 0 2,500
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>
<PAGE>
<PAGE>
EUROPEAN TECHNOLOGY ENTERPRISES INC.
NOTES TO FINANCIAL STATEMENTS
July 31, 2000
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
Net Loss Per Share $ (0.00)
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 July 31,
2000 no revenue and a net loss from operations of $(113,925).
As of July 31, 2000, the Company had a net capital deficiency
of $(45,275).
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.
See Note 5.
NOTE 5 - LOAN PAYABLE - WARREN CAPITAL AND RELATED PARTY
TRANSACTIONS
During the year ended January 31, 2000, Warren Capital
Ltd., paid $24,450 of liabilities on behalf of European
Technology Enterprises Inc. The balance outstanding at July
31, 2000 is $24.450. Warren Capital Ltd., is owned by one
of the officers of ETE. The loan is not evidenced by a note.
The informal agreement calls for no payment of interest. ETE
intends to repay the loan out of any fund raising that it may
carry out or when the company achieves sustainable revenue.
NOTE 6 - NON-CASH FINANCIAL TRANSACTIONS
Non-cash financing transactions consisting of the cost of
contributed rent and the related additional paid in capital
contributed by shareholders have been included in expenses and
additional paid in capital, respectively, in the accompanying
financial statements at a value of $600.
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION
RESULTS OF OPERATIONS
During the last quarter, the Company has continued researching
the cellular telephone industry and market for the purpose of
determining opportunities which are available and have not been
exploited by other entities. The Company believes that this
industry has experienced substantial growth and which has
significant potential for further growth in the next five to ten
years.
The result of the Company's research has been that there is
currently no company offering call routing for cheaper cellular
telephone calls in an arrangement where bulk calls would be
purchased by a company from existing cellular telephone companies
and then discounted and re-sold to the public. Particular
interest has been raised in developing a calling plan for
international telephone calls made from wireless cellular
telephones which currently are very expensive and which have
not been beneficial to consumers. Management believes that a
solution to consumers which would reduce the cost of making an
international call from a cellular telephone would be ground
breaking and allow the Company to enter an area of the
communications industry which has not yet been exploited.
Additional research has been conducted into the long distance
telephone market through the internet. The Company is exploring
the possibility of making a long distance call through the
internet for the price of a local call. The result of this
research is that there exists difficulties with interference
noise and the lack of a sufficient bandwidth. Management expects
to conduct further research into this for the purpose of
exploiting this concept and eliminating the difficulties it has
discovered.
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.
Further research will also be conducted on the potential of
developing an all encompassing communications device. Such a
device would serve the purpose of a palm held computer, cellular
telephone, microphone and ear piece and a tiny web camera. At
this stage, the Company has not conducted any meaningful research
for such a concept and therefore is unable to draw any
conclusions on the feasibility of developing and marketing such a
device.
The Company's research has also sought 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.
Additionally, management has been seeking to identify potential
suitable acquisitions that may be available to the Company to
assist it in developing its operations. The Company at this time
has not located or identified any acquisition and the Company
does not expect to undertake any acquisition until such time as
it has secured sufficient funds to implement both its operations
and any acquisition.
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 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.
<PAGE>
<PAGE>
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.
<PAGE>
<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.
EUROPEAN TECHNOLOGY ENTERPRISES INC.
(Registrant)
Date: November 8, 2000
/s/ Andrew Turner
President
