FORM 10 QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 2000
Or
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period____________to_______________
Commission file number 0-27175
ADVANCE TECHNOLOGIES, INC.
(Exact name or registrant as specified in its charter)
Nevada 95-475536
(State or other jurisdiction (I.R.S. Employer
Incorporation or organization) Identification No.)
716 Yarmouth Rd Suite 215
Palos Verdes Estates, CA 90274
(Address of principal executive offices)
Registrant's telephone number,
including area code: (310) 265-7776
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 that the registrant was required to file such
reports), and (2) has shorter period been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO ISSUES INVOLVED IN BANKRUPTCY.
Indicate by check whether the registrant has filed all documents
and report required to be filed by Sections 12, 13 or 15(d) of
the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes [ ] 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 latest practicable date.
As of June 30, 2000, approximately 2,572,923 shares of the
Registrant's Common Stock, $0.001 par value were outstanding.
As of June 30, 2000, approximately 50,204,102 shares of the
Registrant's Class A Preferred Non-voting Stock par value $0.001
were outstanding.
SIGNATURES
Pursuant to the requirement 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.
Date: August 19, 2000 Advance Technologies, Inc.
(Registrant)
By: /s/ Gary E. Ball
Gary E. Ball
President and Director
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Financial Statements
June 30, 2000
CONTENTS
Accountant's Report 3
Consolidated Balance Sheet 4
Consolidated Statements of Operation 5
Consolidated Statements of Cash Flows 6
Notes to the Consolidated Financial Statements 7
David L Johnson
CERTIFIED PUBLIC ACCOUNTANT
231 D Street. Suite D
Davis, California 95616
-
(530) 758-4260
FAX (530) 758-4113
To the Board of Directors
Advanced Technologies, Inc.
I have compiled the accompanying balance sheet of Advanced
Technologies, Inc. as of June 30, 2000 and related statements of
income and retained earnings and cash flows for nine months then
ended, in accordance with standards established by the American
institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial
statements information that is the representation of management.
I have not audited or reviewed the accompanying financial
statements and accordingly, do not express an opinion or any
other form of assurance on them.
/s/ David J. Johnson
Certified Public Accountant
Davis, California
August 18, 2000
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Advanced Technologies, Inc.
(a Development Stage Company)
Consolidated Balance Sheets
Assets
June30
2000
Current assets ------
Cash $22693
Prepaid License (Note 4 25000
Prepaid Auto Lease 2180
------
Total Current Assets $49873
------
Liabilities and Stockholders' Equity
Other Assets
Patent $11250
------
Total Assets $61123
------
Current Liabilities
Accounts Payable 0
Accounts Payable - Officer 4846
Note Payable - Officer (Note 7) 104500
Advance Royalties (Note 5) 25000
------
Total Current Liabilities $ 134346
Stockholders' Equity
Common Stock, authorized 100,000,000 shares of $.001
par value, issued and outstanding 2,572,923 share $ 2,573
Preferred Stock, Series A authorized 100,000,000
shares of $.001 par value, issued and outstanding
50,204,102 shares 50,204
Additional Paid in Capital 446,496
Deficit Accumulated During the Development Stage (572,496)
-------
Total Stockholders' Equity (73223)
Total liabilities and Stockholders' Equity $ 61123
--------
This accompany notes are an integral part of these
financial statements
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Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Statement of Operations
Nine months ended Six Months Ended
June 30, 2000 June 30, 2000
Revenues: 0 0
Expenses:
Organization, Costs 0 0
General and administrative 21896 21648
------ ------
Total Expenses 21896 21648
------ ------
Net (Loss) (21896) (21648)
0 0
Beginning Retained earnings (550,600) (550,850)
--------- ---------
Ending Retained earnings (572,496) (572,496)
--------- ---------
The accompanying notes are an integral part of these
financial statements
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Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Statement of Cash Flows
Nine Months ended Six Months Ended
June 30, 2000 June 30, 2000
Cash flows from Operating Activities
Net loss (21894) (21648)
Adjustments to reconcile
net income to Net cash provided
by operating activities:
Decrease in accounts payable (1218) (1218)
Net Cash flow provided (used)
by operating activities (23112) (22864)
Cash flow from Investing Activities
Purchase of Patent Rights (11250) (11250)
Cash flows from Financing Activities
Loans from Shareholders 56500 56500
------ ------
Net Increase in Cash 22138 22386
Cash at the Beginning of Year 555 307
------ ------
Cash end of Period 22693 22693
------ ------
The accompanying notes are an integral part of these
financial statements
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Advance Technologies, Inc.
(a Development Stage Company)
Notes to the consolidated Financial Statements
June 30, 2000
NOTE 1-Summary of Significant Accounting Policies
a. Organization
The Company was organized under the laws of the state of Delaware
on June 16, 1969 as PWB industries, Inc. On November 10,1975,
the Company changed its name to Sun Energy, Inc. At that time the
Company began operation in the oil and gas lease industry. By
1985 the Company discontinued its operation and became dormant.
On March 6, 1996 the Company attempted a merger that eventually
failed. On August 23, 1997 the Company changed its name to
Advance Technologies, Inc. and moved its state of domicile to the
state of Nevada.
On September 27, 1999 pursuant to a plan of acquisition, the
Company exchanged 50,204,102 shares of its Series "A" preferred
stock for SeaCrest Industries Corporation's 50,204,102 share of
common stock. This acquisition has been accounted for using the
purchase method of a business combination.
b. Accounting Method
The Company recognizes Income and expense on the accrual basis of
accounting.
c. Consolidation
The consolidated financial statements include the accounts of
Advanced Technologies, Inc. and SeaCrest Industries Corporation,
a wholly owned subsidiary. Intercompany transactions have been
eliminated.
d. Earning (Loss) Per Share
The computation of earning per share of common stock is based on
the weighted average number of shares outstanding at the date of
the financial statements.
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Advance Technologies, Inc.
(a Development Stage Company)
Notes to the consolidated Financial Statements
June 30, 2000
e. Cash and Cash Equivalents
The Company considers all highly liquid investment with
maturities of three months or less to be cash equivalents.
f. Provision for Income Taxes
No provision for income taxes has been recorded due to net
operating loss carryforwards totaling approximately $(572,496)
that will be oftset against future taxable income. These NOL
carryforwards begin to expire in the year 2004. No tax benefit
has been reported in the financial statements because the Company
believes there is a 50% or greater chance the carryforward will
expire unused.
Deferred tax assets and the valuation account is as follows:
June 30,
2000
Deferred tax asset
NOL carryforward $211,222
Valuation allowance (211,222)
----------
$ -
-----------
NOTE 2-Going Concern
The accompanying financial statements have been prepared assuming
that the Company will continue as a going concern. The Company
has few assets and has had recurring operating losses and is
dependent upon financing to continue operations. The financial
statements do not include any adjustments that might result from
the outcome of this uncertainty. It is management's plan to find
an operating company to merge with, thus creating necessary
operating revenue.
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Advance Technologies, Inc.
(a Development Stage Company)
Notes to the consolidated Financial Statements
June 30, 2000
NOTE 3-Development Stage Company
The company is a development state company as defined In
Financial Accounting Standards Board Statement No.7. It is
concentrating substantially all of its efforts in raising capital
and developing its business operations in order to generate
significant revenues.
NOTE 4-Prepaid License Agreement
SeaCrest Industries Corporation, formerly Infrared Systems
International, Inc., entered into a licensing agreement with
Hughes Aircraft Company for an infrared landing aid system.
Hughes Aircraft Company was paid $25,000 on October 25, 1995 upon
commencement of the agreement. There Is also a $1,000 royalty
payment due to Hughes Aircraft Company for each writ sold. The
first twenty units sold, $20,000, will be deducted from the
original $25,000 deposit. This royalty agreement will be
renegotiated on October 25, 2000.
NOTE 5-Advanced Royalties
SeaCrest Industries Corporation, formerly Infrared Systems
international, Inc., entered into a licensing agreement for
marketing and distributing of infrared aircraft landing systems.
Seacrest received $25,000 in advances.
NOTE 6-Stock Transactions
On December 2, 1998 and August 23, 1997, the Company's board of
directors authorized a reverse stock split, 1 share for 35 shares
and 1 share for 10 shares, respectively. The financial statements
have been retroactively restated to show the effects of the
reverse stock split.
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Advance Technologies, Inc.
(a Development Stage Company)
Notes to the consolidated Financial Statements
June 30, 2000
NOTE 7-Related Party Transactions
Since the Company does not have the necessary operating revenue
to sustain operations, stock has been issued for service. Some of
the parties receiving stock are related parties, including
officers of the Company.
During 1999 and 2000, an officer of the Company advanced $116,500
to cover expenses. $12,000 was subsequently paid bath leaving
snot. payable of $48,000 at March 31,2000. The note payable
officer is considered a current liability with no provisions for
Interest.
During 1999, the officers of the Company paid their own travel
expenses. The amount payable to the officers at June 30, 2000 is
$4,846.
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