U.S. SECURITIES AND 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 March 31, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 025908
SICLONE INDUSTRIES, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 87-0429748
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
6269 Jamestown Court, Salt Lake City, Utah 84121
(Address of principal executive offices)
801-566-6627
(Issuer's telephone number)
Not Applicable
(Former name, address and fiscal year, if changed since last report)
Check whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the issuer
was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [ X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13, or 15(d) of the
Exchange Act subsequent to the distribution of securities under
a plan confirmed by a court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's
classes of common equity, as of March 31, 2000: 23,810,000
shares of common stock.
Transitional Small Business Format: Yes [ ] No [ X ]
<PAGE>
FORM 10-QSB
PATRIOT INVESTMENT CORPORATION
INDEX
Page
PART I. Financial Information
Item I. Financial Statements (unaudited) 3
Condensed Balance Sheets - March 31, 2000 4
(unaudited) and December 31, 1999
Condensed Statements of Operations
(unaudited) for the Three Months Ended
March 31, 2000 and 1999, and for the
Period from November 1, 1985 (Inception) 5
to March 31, 2000
Statements of Cash Flows (unaudited) for
the Three Months Ended March 31, 2000 and
1999, and from the Period from November 6
1, 1985 (Inception) to March 31, 2000
Notes to Consolidated Financial
Statements 7
Item 2. Management's Discussion and
Analysis of Financial Condition 9
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K 10
Signatures 11
(Inapplicable items have been omitted)
2
<PAGE>
PART I.
Financial Information
Item 1. Financial Statements (unaudited)
In the opinion of management, the accompanying unaudited
financial statements included in this Form 10-QSB reflect all
adjustments (consisting only of normal recurring accruals)
necessary for a fair presentation of the results of operations
for the periods presented. The results of operations for the
periods presented are not necessarily indicative of the results
to be expected for the full year.
3
<PAGE>
SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Balance Sheets
ASSETS
March 31, December 31,
2000 1999
CURRENT ASSETS
Cash $ 368 $ 178
Total Current Assets 368 178
TOTAL ASSETS $ 368 $ 178
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 1,600 $ 280
Accounts payable - related party (Note 2) 5,500 5,000
Total Liabilities 7,100 5,280
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock: 5,000,000 shares
authorized at $0.001 par value;
-0- shares issued and outstanding - -
Common stock: 30,000,000 shares authorized
at $0.001 par value; 23,810,000 shares
issued and outstanding 23,810 23,810
Additional paid-in capital 583,693 583,693
Deficit accumulated during the
development stage (614,235) (612,605)
Total Stockholders' Equity (Deficit) (6,732) (5,102)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 368 $ 178
See Accountants' Review Report and the accompanying notes to the
reviewed financial statements.
4
<PAGE>
SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Statements of Operations
From
Inception on
November 1,
For the Three Months Ended 1985 through
March 31, March 31,
2000 1999 2000
REVENUES $ - $ - $ -
EXPENSES (1,630) (3,040) (18,732)
LOSS FROM DISCONTINUED
OPERATIONS - - (595,503)
NET LOSS $(1,630) $ (3,040) $ (614,235)
BASIC LOSS PER SHARE $(0.00) $(0.00)
See Accountants' Review Report and the accompanying notes to the
reviewed financial statements.
5
<PAGE>
SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Statements of Cash Flows
From
Inception on
November 1,
For the Three Months 1985 through
Ended March 31, March 31,
2000 1999 2000
OPERATING ACTIVITIES:
Net loss $ (1,630) $ (3,040) $ (614,235)
Adjustments to reconcile net loss to net
cash (used) by operating activities:
Shares issued for services - - 50
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable
and accounts payable - related party 1,820 - 7,100
Net Cash Provided (Used) by
Operating Activities 190 (3,040) (607,085)
INVESTING ACTIVITIES: - - -
FINANCING ACTIVITIES:
Additional capital contributed - - 10,180
Stock offering costs - - (18,678)
Issuance of common stock - - 615,951
Net Cash Provided by
Financing Activities - - 607,453
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 190 (3,040) 368
CASH AT BEGINNING OF
PERIOD 178 4,241 -
CASH AT END OF PERIOD $ 368 $ 1,201 $ 368
CASH PAID FOR
Interest $ - $ - $ -
Income taxes $ - $ - $ -
See Accountants' Review Report and the accompanying notes to the
reviewed financial statements.
6
<PAGE>
SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2000 and December 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Organization
The Company was incorporated in the State of Delaware on
November 1, 1985 under the name McKinnely Investments,
Inc. In November 1986, the Company changed its name to
Acculine Industries, Incorporated and in May 1988 to
Siclone Industries, Inc.
The Company was incorporated for the purpose of providing
a vehicle, which could be used to raise capital and seek
business opportunities.
b. Accounting Method
The Company's financial statements are prepared using the
accrual method of accounting. The Company has elected a
calendar year end.
c. Cash and Cash Equivalents
Cash equivalents include short-term, highly liquid
investments with maturities of three months or less at
the time of acquisition.
d. Basic Loss Per Share
The computations of basic loss per share of common stock
are based on the weighted average number of shares
outstanding during the period.
For the Three Months Ended
March 31, 2000
Loss Shares Per Share
(Numerator) (Denominator) Amount
$ 1,630 23,810,000 $ (0.00)
For the Three Months Ended
March 31, 1999
Loss Shares Per Share
(Numerator) (Denominator) Amount
$ 3,040 23,810,000 $ (0.00)
7
<PAGE>
SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2000 and December 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
e. Provision for Taxes
The Company has net operating loss carryforwards totaling
approximately $600,000 that may be offset against future
taxable income through 2019. No tax benefit has been
reported in the financial statements, because the Company
believes there is a 50% or greater chance the loss
carryforwards will expire unused. Accordingly, the
potential tax benefits of the loss carryforwards are
offset by a valuation allowance of the same amount.
f. Use of Estimates
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 the reported amounts
of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 2 - RELATED PARTY TRANSACTIONS
During 1993, the Company's president purchased 1,000,000
shares of common stock for $1,000. During 1995, the
Company's president purchased an additional 11,000,000
shares of common stock for $11,000.
During 1999 and 2000, the Company=s president loaned
$5,000 and $500, respectively, to cover operating
expenses. The amount is non-interest bearing and due on
demand.
NOTE 3 - GOING CONCERN
The Company's financial statements are prepared using
generally accepted accounting principles applicable to a
going concern which contemplates the realization of
assets and liquidation of liabilities in the normal
course of business. However, the Company has little cash
and has experienced losses from inception. Without
realization of additional adequate financing, it would be
unlikely for the Company to pursue and realize its
objectives. The Company intends to seek a merger with an
existing operating company. In the interim, an officer
of the Company has committed to meeting its operating
expenses.
8
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION OR PLAN OF OPERATION
Forward-Looking Statement Notice
When used in this report, the words "may," "will," "expect,"
"anticipate," "continue," "estimate," "project," "intend," and
similar expressions are intended to identify forward-looking
statements within the meaning of Section 27a of the Securities
Act of 1933 and Section 21e of the Securities Exchange Act of
1934 regarding events, conditions, and financial trends that may
affect the Company's future plans of operations, business
strategy, operating results, and financial position. Persons
reviewing this report are cautioned that any forward-looking
statements are not guarantees of future performance and are
subject to risks and uncertainties and that actual results may
differ materially from those included within the forward-looking
statements as a result of various factors. Such factors are
discussed under the "Item 6. Management's Discussion and
Analysis of Financial Condition or Plan of Operations," and also
include general economic factors and conditions that may directly
or indirectly impact the Company's financial condition or results
of operations.
Three Month periods Ended March 31, 2000 and 1999
The Company had no revenue from continuing operations for the
three-month periods ended March 31, 2000 and 1999.
General and administrative expenses for the three month periods
ended March 31, 2000 and 1999, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs. These expenses were $1,630 and $3,040 for
the three-month periods ended March 31, 2000 and 1999,
respectively.
As a result of the foregoing factors, the Company realized a net
loss of $1,630 for the three months ended March 31, 2000, as
compared to a net loss of $3,040 for the same period in 1999.
Liquidity and Capital Resources
At March 31, 2000, the Company had working capital deficit of
approximately $368, as compared to a working capital of
approximately $178 at December 31, 1999.
Management believes that the Company has sufficient cash and
short-term investments to meet the anticipated needs of the
Company's operations through at least the next 12 months.
However, there can be no assurances to that effect, as the
Company has no significant revenues and the Company's need for
capital may change dramatically if it acquires an interest in a
business opportunity during that period. The Company's current
operating plan is to (i) handle the administrative and reporting
requirements of a pubic company, and (ii) search for potential
businesses, products, technologies and companies for acquisition.
At present, the Company has no understandings, commitments or
agreements with respect to the acquisition of any business
venture, and there can be no assurance that the Company will
identify a business venture suitable for acquisition I the
future. Further, there can be no assurance that the Company
would be successful in consummating any acquisition on favorable
terms or that it will be able to profitably manage any business
venture it acquires.
9
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
Reports on Form 8-K: No reports on Form 8-K were filed by the
Company during the quarter ended March 31, 2000.
Exhibits: Included only with the electronic filing of this report
is the Financial Data Schedule for the three month period ended
March 31, 2000 (Exhibit ref. No. 27).
10
<PAGE>
SIGNATURES
In accordance with the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned thereunto
duly authorized.
PATRIOT INVESTMENT CORPORATION
Date: 5/11/00 By: /s/ Bradley S. Shepherd,
President, Secretary and Treasurer
11
<PAGE>
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<PERIOD-END> MAR-31-2000
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0
0
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<CHANGES> 0
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