UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10QSB
(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.
( ) Transition report pursuant of Section 13 or 15(d) of the
Securities Exchange Act of 1939 for the transition period ____
to______
COMMISSION FILE NUMBER 000-1084047
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INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
------------------------------------------
(Exact name of registrant as specified in its charter)
California 95-4691878
---------------------------------- -------------------
(State or other jurisdiction of IRS EMPLOYER ID NO.
incorporation or organization)
827 State Street, Suite 26
Santa Barbara, CA 95682 805 899 1299
-----------------------------------------------------------------
(Address of Principal Executive Offices, including Registrant's
zip code and telephone number)
NONE
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Former name, former address and former fiscal year, if changed
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
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The number of shares of the registrant's common stock as of June
30, 2000: 4,309,320 shares.
Transitional Small Business Disclosure Format (check one):
Yes No X
--- ---
TABLE OF CONTENTS
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
(a) Balance Sheet
(b) Statement of Operations
(c) Statement of Changes in Financial Position
(d) Statement of Shareholders' Equity
(e) Notes to Financial Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations
Item 3. Risks
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults On Senior Securities
Item 4. Submission of Items to a Vote
Item 5. Other Information
Item 6
(a) Exhibits
(b) Reports on Form 8K
SIGNATURES
FINANCIAL DATA SCHEDULE
<TABLE>
<CAPTION>
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(A Development Stage Company)
BALANCE SHEET
AS OF JUNE 30, 2000 AND MARCH 31, 1999
(unaudited)
<S> <C> <C>
June 30, 2000 March 31, 1999
------------------ -----------------
ASSETS
Current assets
Cash $ 1,000 $ 1,000
----------------- -----------------
Total current assets $ 1,000 $ 1,000
----------------- -----------------
Total assets $ 1,000 $ 1,000
================= =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities: $ 991 $ 991
----------------- ------------------
Shareholders' equity
Common stock (no par value)
20,000,000 shares authorized
3,492,520 outstanding at
June 30, 2000 $ 3,492 $ 3,492
Paid in capital 14,401 14,401
Deficit accumulated during
development stage (17,893) ( 17,502)
-------- --------
Total shareholders' equity $ 9 $ 9
Total liabilities and
shareholders' equity $ 1,000 $ 1,000
================ ================
</TABLE>
<TABLE>
<CAPTION>
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
AND THE SIX MONTHS ENDED MARCH 31, 1999
AND FOR THE PERIOD FROM INCEPTION MAY 27, 1998 TO JUNE 30, 2000
(unaudited)
<S> <C> <C> <C>
From inception
Six months ended Six months ended May 27, 1998 to
June 30, 2000 March 31, 1999 June 30, 2000
------------------ ------------------- -----------------
Sales $ -0- $ -0- $ -0-
------------------ ------------------- ------------------
Total income: $ -0- $ -0- $ -0-
Expenses
Administrative (391) $ (391) $ (17,502)
------------------ ------------------ -------------------
Total expenses (391) $ (391) $ (17,502)
Loss from operations (391) $ (391) $ (17,502)
------------------ ------------------ -------------------
Net loss $ (391) $ (391) $ (17,502)
================== =================== ==================
</TABLE>
<TABLE>
<CAPTION>
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(a development stage company)
STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE THREE MONETHS ENDED June 30, 2000
AND THE PERIOD FROM INCEPTION MAY 27 TO June 30, 2000
(unaudited)
<S> <C> <C>
From inception
Six months ended May 27, 1998 to
September 30, 1999 June 30, 2000
------------------ ------------------
Funds provided from (used for)operations
Net (loss) during development stage $ ( 391) $ (34,925)
Accounts payable 391 600
Stocks issued for services - 34,925
Funds provided by (used for) operating activities - 237
Funds provided from (used for) financing activities
Proceeds from sale of stock 2,200 -
------------------ -----------------
-
Net funds provided from (used for) all activities 7,500 $ 215,012
Cash balance at beginning of year 1,000 -
------------------ -----------------
Cash balance at end of period $ 1,000 $ 1,000
================== ==================
</TABLE>
<TABLE>
<CAPTION>
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(unaudited)
<S> <C> <C> <C>
Common stock
-------------------------------------------
Number
of shares Amount Deficiency
---------- ------ ----------
Balance December 31, 1998 1,077,100 17,902 ( 17,502)
Net (loss) during development stage (34,592)
---------- ------ ----------
Balance June 30, 2000 3,492,520 34,925 (391)
============ ========= =============
</TABLE>
[CAPTION]
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
FOR THE Six months ENDED June 30, 2000
(unaudited)
1. GENERAL
The financial statements have been prepared by management without
audit and should be read in conjunction with the financial
statements and notes thereto for the the months ended June 30,
2000. The Company is still in the development stage and the
results of interim periods are not indicative of the results for
the year. The accompanying financial statements reflect, in the
opinion of management, all adjustments necessary for the fair
presentation of the interim financial statements. In the opinion
of management, all such adjustments are of a normal and recurring
nature.
The Company has been in the development stage since inception.
The Company's activities have consisted of developing its plan of
operations.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. The Company uses the accrual method of accounting.
B. Revenues and directly related expenses are recognized in the
period when the goods are shipped to the customers.
C. The Company considers all short term, highly liquid
investments that are readily convertible, within three
months, to known amounts as cash equivalents. The Company
currently has no cash equivalents.
D. Primary Earnings Per Share amounts are based on the weighted
average number of shares outstanding at the dates of the
financial statements. Fully Diluted Earnings Per Shares shall be
shown on stock options and other convertible issues that may be
exercised within ten years of the financial statement dates.
E. Depreciation: The cost of property and equipment is
depreciated over the estimated useful lives of the related
assets. The cost of leasehold improvements is depreciated
(amortized) over the lesser of the length of the related assets
or the estimated lives of the assets. Depreciation is computed on
the straight-line method for reporting purposes and for tax
purposes.
F. Estimates: The preparation of the financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect
the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates.
3. OTHER MATTERS
AMENDMENT TO ARTICLES OF INCORPORATION: The Company originally
issued 1,077,000 common shares of stock, when the Company was
acting as its own transfer agent. However, the Company's new
transfer agent refused to recognize the issue of 77,000 of the
1,077,000 common shares of stock, due to the fact that the
Company's articles of incorporation had not been amended to
provide for an increase in capital. On March 1, 1999, the Company
amended its articles of incorporation to authorize capital of
20,000,000 common shares. Since the filing of this amendment was
delayed, this resulted in a a difference between the shares
outstanding on June 30, 2000 as shown on the official share
register of the transfer agent and the Company's audited
financial statements.
On November 26, 1999, the Company effected an 8-1 forward
split of its common shares of stock, resulting in outstanding
shares of 8,332,520.
SUBSEQUENT EVENTS: On June 30, 2000, the Company redeemed
4,840,000 common shares from Officer/Director Agata Gotova, at
par value.
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
THIS ANALYSIS CONTAINS FORWARD-LOOKING COMMENTS WHICH ARE BASED
ON CURRENT INFORMATION. ACTUAL RESULTS IN THE FUTURE MAY DIFFER
MATERIALLY.
The Company is engaged in the business of providing sales of
computer related software and related services. The Company has
only commenced operations on its web site at www.software-
software-software.com.
PART II. OTHER INFORMATION
Item 1. Legal proceedings NONE
Item 2. Changes in securities and use of proceeds NONE
Item 3. Defaults on senior securities NONE
Item 4. Submission of items to a vote NONE
Item 5. Other information NONE
Item 6.
a) Exhibits NONE
b) Reports on 8K NONE
SIGNATURES
In accordance with the requirements of the Securities and
Exchange Act of 1934, the registrant caused this report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
Innovative Software Technologies, Inc.
Dated: June 30, 2000 By: Jeffrey Volpe
---------------------------
Jeffrey Volpe, President
Dated: June 30, 2000 By: Agata Gotova
---------------------------------
Agata Gotova, Chief
Financial Officer
[TYPE]EX-27
<SEQUENCE>2
[DESCRIPTION]FINANCIAL DATA SCHEDULE
[ARTICLE] 5
[MULTIPLIER] 1
[PERIOD-TYPE] 6-MOS
[FISCAL-YEAR-END] DEC-31-1999
[PERIOD-START] JUN-30-2000
[CASH] 0
[SECURITIES] 0
[RECEIVABLES] 0
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 1000
[PP&E] 1000
[DEPRECIATION] 0
[TOTAL-ASSETS] 1000
[CURRENT-LIABILITIES] 1000
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 2084
[OTHER-SE] (34592)
[TOTAL-LIABILITY-AND-EQUITY] 1000
[SALES] 0
[TOTAL-REVENUES] 0
[CGS] 0
[TOTAL-COSTS] 0
[OTHER-EXPENSES] 0
[LOSS-PROVISION] (391)
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] (391)
[INCOME-TAX] 0
[INCOME-CONTINUING] (391)
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (391)
[EPS-BASIC] (.00)
[EPS-DILUTED] (.00)
