<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15 (d) of
Securities Exchange Act of 1934
For Period ended June 30, 1999
Commission File Number 0-25671
SACIO, INC.
---------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 88-0414076
------------------ ---------------
(State of Incorporation) (I.R.S. Employer Identification No.)
8320 O'CONNELL ROAD, EL CAJON, CA 92021
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(619) 699-1721
-------------------
(Registrant's telephone number, including area code)
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.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock at the latest practicable date.
As of June 30, 1999, the registrant had 10,935,000 shares of common stock, $.001
par value, issued and outstanding.
<PAGE> 2
PART 1 FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
SACIO, INC.
(a Development Stage Company)
BALANCE SHEETS
UNAUDITED
ASSETS
<TABLE>
<CAPTION>
June 30 June 30
1999 1998
<S> <C> <C>
CURRENT ASSETS
CASH 395.10 4,300.00
--------------------------
TOTAL CURRENT ASSETS 395.10 4,300.00
FIXED ASSETS
--------------------------
NET FIXED ASSETS 0.00 0.00
OTHER ASSETS
ORGANIZATION COSTS 0.00 0.00
LESS AMORTIZATION 0.00 0.00
--------------------------
TOTAL OTHER ASSETS 0.00 0.00
--------------------------
TOTAL ASSETS 395.10 4,300.00
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
--------------------------
TOTAL CURRENT LIABILITIES 0.00 0.00
LONG TERM LIABILITIES
--------------------------
TOTAL LONG TERM LIABILITIES 0.00 0.00
--------------------------
TOTAL LIABILITIES 0.00 0.00
STOCKHOLDERS' EQUITY
COMMON STOCK - $.001 par value 10,935.00 2.00
20,000,000 shares authorized, 10,935,000 issued
and outstanding
ADDITIONAL PAID IN CAPITAL -6,633.00 4,299.00
BEGINNING RETAINED EARNINGS -3,862.90 -1.00
NET LOSS -44.00
--------------------------
ENDING RETAINED DEFICIT -3,906.90 -1.00
--------------------------
TOTAL STOCKHOLDERS' EQUITY 395.10 4,300.00
--------------------------
TOTAL LIAB & STOCKHOLDERS' EQUITY 395.10 4,300.00
==========================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 3
FINANCIAL STATEMENTS (continued)
SACIO, INC.
STATEMENTS OF OPERATIONS
(a Development Stage Company)
For The Three Months Ended
UNAUDITED
<TABLE>
<CAPTION>
June 30 June 30
1999 1998
<S> <C> <C>
REVENUE
----------------------------------
TOTAL REVENUE 0.00 0.00
DIRECT COSTS
----------------------------------
TOTAL COST OF GOODS SOLD 0.00 0.00
----------------------------------
GROSS PROFIT 0.00 0.00
OPERATING EXPENSES
GENERAL, SELLING & ADMINISTRATIVE 44.00 0.00
LICENSES AND FEES 0.00 0.00
ACCOUNTING & AUDIT FEES 0.00 0.00
----------------------------------
TOTAL OPERATING EXPENSES 44.00 0.00
----------------------------------
LOSS FROM OPERATIONS -44.00 0.00
OTHER INCOME & EXPENSE
----------------------------------
TOTAL OTHER INCOME & EXPENSE 0.00 0.00
----------------------------------
LOSS BEFORE TAXES -44.00 0.00
----------------------------------
NET LOSS -44.00 0.00
==================================
NET LOSS PER SHARE NIL 0.00
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 10,935,000 10,935,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 4
FINANCIAL STATEMENTS (continued)
SACIO, INC.
(a Development Stage Company)
STATEMENTS OF CASH FLOWS
For The Three Months Ended
UNAUDITED
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME (LOSS) -44 0
ADJ TO RECONCILE NET INCOME (LOSS) TO NET
CASH USED IN OPERATING ACTIVITIES:
AMORTIZATION 0 0
CHANGES IN ASSETS AND
LIABILITIES 0 0
------------------------
NET CASH FLOWS FROM OPERATING ACTIVITIES -44 0
CASH FLOWS FROM INVESTING ACTIVITIES:
ORGANIZATION COSTS 0 0
------------------------
NET CASH FLOWS FROM INVESTING ACTIVITIES 0 0
CASH FLOWS FROM FINANCING ACTIVITIES:
ISSUANCE OF COMMON
STOCK FOR CASH 0 0
------------------------
NET CASH FLOWS FROM FINANCING ACTIVITIES 0 0
NET INCREASE (DECREASE) IN CASH -44 0
CASH AT BEGINNING OF PERIOD 439 4,300
------------------------
CASH AT END OF PERIOD 395 4,300
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
<PAGE> 5
FINANCIAL STATEMENTS (continued)
NOTES TO FINANCIAL STATEMENTS
1. MANAGEMENT'S OPINION
In the opinion of management, the accompanying financial statements contain all
adjustments necessary to present fairly the financial position of the company as
of June 30, 1999 and 1998, and the results of operations for the three months
ended June 30, 1999 and 1998, and the changes in cash for the three months ended
June 30, 1999 and 1998.
2. INTERIM REPORTING
The results of operations for the three months ended June 30, 1999 and 1998 are
not necessarily indicative of the results to be expected for the remainder of
the year.
3. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Organization and Nature of Operations
The Company was incorporated in Delaware on May 31, 1994. The Company is a
development stage company and has not conducted any business activities to date.
4. Basis of Accounting
The Company's policy is to use the accrual method of accounting and to prepare
and present financial statements which conform to generally accepted accounting
principles. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the reporting
periods. Actual results could differ from those estimates.
5. Cash and equivalents
For purpose of the statements of cash flows, all highly liquid investments with
a maturity of three months or less are considered to be cash equivalents. There
were no cash equivalents as of June 30, 1999.
<PAGE> 6
FINANCIAL STATEMENTS (continued)
6. Income Taxes
Income taxes are provided for using the liability method of accounting in
accordance with Statement of Financial Accounting Standards No. 109 (SFAS 109),
"Accounting for Income Taxes." A deferred tax asset or liability is recorded for
all temporary differences between financial and tax reporting. Deferred tax
expense (benefit) results from the net change during the year of deferred tax
assets and liabilities.
PART 1 FINANCIAL INFORMATION
Management's Plan of Operations
The Company maintains a cash balance sufficient to sustain corporate operations
until such time as Management can raise the funding necessary to advance its
business plan. The losses through June 1999 were due to operating expenses.
Sales of the Company's equity securities have allowed the Company to maintain a
positive cash flow balance.
During the next twelve months, the Company plans to raise additional funds in
order to implement its business plan to include design and construction
build-out of its first facility, securing all inventory, supplies, licenses,
permits, insurance, and hiring of Pub staff. There are no current plans for
research and development. There are no current plans to purchase or sell any
significant amount of fixed assets. The Company will face considerable risk in
each of its business plan steps, such as difficulty of securing adequate
facilities within its budget, difficulty of hiring competent personnel within
its budget, difficulty in completing necessary personnel training within time
limits, and a shortfall of funding due to the Company's inability to raise
capital in the equity securities market. If no funding is received during the
next twelve months, the Company will be forced to rely on its existing cash in
the bank and funds loaned by the directors and officers.
<PAGE> 7
PART II OTHER INFORMATION
ITEM 1 Not applicable.
ITEMS 2-4: Not applicable
ITEM 5: Information required in lieu of Form 8-K: None
ITEM 6: Exhibits and Reports on 8-K:
a) Exhibit # 27.1, "Financial Data Schedule"
b) No reports on Form 8-K were filed during the fiscal
quarter ended June 30, 1999
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.
Sacio, Inc.
Dated: August 11, 1999 /s/ NANCY J. DAVIS
----------------------------------------
Nancy J. Davis
President and Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM INTERIM
FINANCIAL STATEMENTS FOR FIRST QUARTER 1999 AND FIRST QUARTER 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH SACIO, INC. 10-QSB.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> MAR-31-2000 MAR-31-1999
<PERIOD-START> APR-01-1999 APR-01-1998
<PERIOD-END> JUN-30-1999 JUN-30-1998
<CASH> 395 4,300
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 395 4,300
<PP&E> 0 0
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 395 4,300
<CURRENT-LIABILITIES> 0 0
<BONDS> 0 0
0 0
0 0
<COMMON> 10,935 2
<OTHER-SE> (6,633) 4,299
<TOTAL-LIABILITY-AND-EQUITY> 395 4,300
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 44 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (44) 0
<INCOME-TAX> 0 0
<INCOME-CONTINUING> (44) 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (44) 0
<EPS-BASIC> .00 .00
<EPS-DILUTED> .00 .00
</TABLE>
