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 March 31, 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 000-1084133
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MERCURY SOFTWARE
------------------------------------------
(Exact name of registrant as specified in its charter)
California 52-1146119
----------------------------------
----------------------------------
(State or other jurisdiction of (IRS Employer Identification
No.)
incorporation or organization)
827 State Street, Suite 26, Santa Barbara, CA 93101 Telephone 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
--- ---
The number of shares of the registrant's common stock as of March 31, 2000:
3,492,520 shares.
Transitional Small Business Disclosure Format (check one): Yes No X
--- ---
[CAPTION]
TABLE OF CONTENTS
-----------------
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
[CAPTION]
MERCURY SOFTWARE
(a development stage company)
BALANCE SHEET
AS OF MARCH 31, 2000 AND MARCH 31, 1999
(unaudited)
March 31, 2000 March 31, 1999
------------------ -----------------
ASSETS
Current assets
Cash $ - $ -
----------------- -----------------
Total current assets $ - $ -
----------------- -----------------
Total assets $ - $ -
================= =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities $ 553 $ 185
----------------- -----------------
Shareholders' equity
Common stock (no par value)
20,000,000 shares authorized
708,648 outstanding at
March 31, 2000
and March 31, 1999 $ 709 $ 1,077
Paid in capital - -
Deficit accumulated during
development stage ( 1,262) ( 1,262)
--------
--------
Total shareholders' equity $ (553) $ ( 185)
Total liabilities and
shareholders' equity $ -- $ --
================ ================
[CAPTION]
MERCURY SOFTWARE
(A Development Stage Company)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
AND THE THREE MONTHS ENDED MARCH 31, 1999
AND FOR THE PERIOD FROM INCEPTION MAY 27, 1998 TO MARCH 31, 2000
(unaudited)
<TABLE>
<S> <C> <C> <C>
<C>
From inception
Three months ended Three months ended May 27, 1998 to
March 31, 2000 March 31, 1999 March 31, 2000
------------------ ------------------- -----------------
Sales $ -0- $ -0- $ -0-
------------------ ------------------- ------------------
Total income: $ -0- $ -0- $ -0-
Expenses
Administrative 102 $ 102 $ ( 894)
------------------ ------------------ -------------------
Total expenses (102) $ (102) $ ( 894)
Loss from operations (102) $ (102) $ ( 894)
------------------ ------------------ -------------------
Net loss $ (102) $ (102) $ ( 894)
================== =================== ==================
</TABLE>
[CAPTION]
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(a development stage company)
STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE THREE MONETHS ENDED MARCH 31, 2000
AND THE PERIOD FROM INCEPTION MAY 27, 1998 TO MARCH 31, 2000
(unaudited)
<TABLE>
<S> <C>
<C>
From inception
Three months ended
May 27, 1998 to
March 31, 2000
March 31, 2000
------------------
------------------
Funds provided from (used for)operations
Net (loss) during development stage $ ( 102) $
( 894)
Accounts payable --
--
Stocks issued for services -
709
Funds provided by (used for) operating activities -
-
Funds provided from (used for) financing activities
Proceeds from sale of stock 2,200
-
------------------
------------------
Net funds provided from (used for) all activities - $
-
Cash balance at beginning of period 1,000
-
------------------
------------------
Cash balance at end of period $ - $
-
==================
==================
</TABLE>
MERCURY SOFTWARE
(a development stage company)
STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2000
(unaudited)
<TABLE>
<S> <C> <C>
<C>
Common stock
-------------------------------------------
Number
of shares Amount
Deficiency
---------- ------
----------
Balance December 31, 1998 1,077,100 1,077
( 1,262)
Net (loss) during development stage
---------- ------
----------
Balance March 31, 2000 708,648 709
(894)
============ =========
=============
</TABLE>
[CAPTION]
MERCURY SOFTWARE
(a Development stage company)
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 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 three months ended March 31, 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 March 31, 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 March 31, 2000, the Company redeemed 455,000 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 not yet commenced
operations, but is in the process of developing its web site at
www.internetsoftwaresales.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.
Mercury Software
Dated: March 31, 2000 By: Jeffrey Volpe
---------------------------
Jeffrey Volpe, President
Dated: March 31, 2000 By: Agata Gotova
-------------------------------------
Agata Gotova, Chief Financial
Officer
[TYPE]EX-27
<SEQUENCE>2
[DESCRIPTION]FINANCIAL DATA SCHEDULE
[ARTICLE] 5
[MULTIPLIER] 1
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-1999
[PERIOD-START] JAN-01-2000
[PERIOD-END] MAR-31-2000
[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)
