FORM 10-Q
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 December 31, 1999
Or
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
For the transition period from ________________ to __________________
Commission file number 0-27175
ADVANCED 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
(Former Address, if changed since last report)
304 South Elm Drive, Penthouse
Beverly Hills, CA 90212
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 month 2 (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 ISSUERS INVOLVED IN BANKRUPTCY.
Indicate by check mark 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 December 31, 1999, approximately 2,572,923 shares of the Registrant's
Common Stock, $0.001 par value, were outstanding.
As of December 31, 1999, 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 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.
Advance Technologies, Inc
(Registrant)
Date: January 28, 2000 By:/S/ Wendy Ball
Wendy Ball
Secretary and Director
Exhibit: Advance Technologies, Inc.
Financial Statements
December 31, 1999
Independent Auditor's Report
<PAGE>
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Financial Statements
December31, 1999
[Letterhead - David L Johnson, CERTIFIED PUBLIC ACCOUNTANT]
To the Board of Directors
Advanced Technologies, Inc.
I have compiled the accompanying balance sheet of Advance Technologies, Inc.
as of December 31, 1999 and related statements of income and retained
earnings and cash flows for three 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 L. Johnson
Certified Public Accountant
Davis, California
January 24, 2000
<PAGE>
CONTENTS
Independent Auditor'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
<PAGE>
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Financial Statements
December 31, 1999
Assets
December 31
1999
-------------------
Current assets
Cash $ 331
Prepaid License (Note 4) 25,000
Prepaid Auto Lease 2180
-------------------
Total Assets $27,511
-------------------
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 1,218
Accounts Payable - Officer 4,846
Note payable - Officer (Note 7) 48,000
Advance Royalties (Note 5) 25,000
-------------------
Total Current Liabilities $ 79,064
Stockholders' Equity
Common Stock, authorized 100,000,000
shared 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 50,205,102 shares $ 50,204
Additional Paid in Capital $446,496
Deficit Accumulated During the Development
State (550,826)
-------------------
Total Stockholders' Equity (51,553)
Total Liabilities and Stockholders' Equity $ 27,511
-------------------
The accompanying notes are an integral part of these financial statements
Advance Technologies, Inc. page 4
Consolidated Financial Statements
<PAGE>
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Financial Statements
December31, 1999
Three Months Ended
December 31, 1999
---------------------------
Revenues: 0
Expenses:
Organization Costs 0
General and administrative 224
-------------------
Total Expenses 224
-------------------
Net (Loss) (224)
Net Loss Per Share 0
Weighted average shares outstanding 1,322,920
The accompanying notes are an integral part of these statements
Advance Technologies, Inc page 5
Consolidated Financial Statements
<PAGE>
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Financial Statements
December31, 1999
December 31, 1999
---------------------------
Cash Flows from Operating Activities
Net Loss (224)
---------------------------
Net cash flow provided (used)
By operating activities (224)
---------------------------
Net Increase (decrease) in cash
Cash, beginning of year 555
---------------------------
Cash, end of year 331
The accompanying notes are an integral part of these financial statements
Advance Technologies, Inc. page 6
Consolidated Financial Statements
<PAGE>
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Financial Statements
December31, 1999
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.
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 $(550,602) that will be offset 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.
Advance Technologies, Inc. page 7
Consolidated Financial Statements
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Financial Statements
December31, 1999
Deferred tax assets and the valuation account is as follows:
September 30,
1999
Deferred tax asset:
NOL carryforward $189,584
Valuation allowance (189,584)
-------------------
$ -
-------------------
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.
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 unit 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.
Advance Technologies, Inc. page 8
Consolidated Financial Statements
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Financial Statements
December31, 1999
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, an officer of the Company advanced $60,000 to cover expenses.
$12,000 was subsequently paid back leaving a note payable of $48,000 at
September 30, 1999. The note payable officer is considered a current
liability with no provisions provisions for interest.
During 1999, the officers of the Company paid their own travel expenses.
The amount payable to the officers at September 30, 1999 is $4,846.
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