FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
Of the Securities Exchange Act of 1934
For Quarter Ended September 30, 1998
Commission File Number 1-7301
RENU-U INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 75-1329265
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
3809 SOUTH WEST TEMPLE, 1B
SALT LAKE CITY, UTAH 84115
(Address of principal executive offices)
Registrant's telephone number
including area code (801) 262-5052
3789 South 500 West, Salt Lake City, Utah 84115
Former Address, if changed since last report
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 such shorter period that the
registrant was required to file such reports)
Yes X No
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
9,961,241
(Number of shares of common
stock the registrant had outstand-
ing as of February 24, 1999)
PART 1
ITEM 1 - FINANCIAL STATEMENTS
The condensed financial statements included herein have been prepared by
the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that
the disclosures are adequate to make the information presented not misleading.
In the opinion of the Company, all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position of
the Company as of September 30, 1998 and the results of its operations and
changes in its financial position from January 1, 1983 through September 30,
1998 have been made. The results of its operations for such interim period is
not necessarily indicative of the results to be expected for the entire year.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Liquidity and Capital Resources. The Registrant had very little cash and
accounts receivable of $16,890 at September 30. The Registrant intends to
raise additional funds as needed through private placements or debt
financing with accredited and sophisticated investors or other private
individuals or banks.
Results of Operation. During the quarter ended September 30, 1998, the
registrant had $28,850 in clinic revenue and inventory sales. Net loss from
operations was $(2,819) compared to $(32,814) for the same period last year.
The Company has disposed of its assets from previous business ventures and
has commenced start-up procedures of operating physical wellness centers
(see Plan of Operations). The Company has had losses of $(65,622) for the
nine months ended September 30, 1998 compared to $(84,206) for the same period
last year.
Plan of Operations.
In early 1996, the Company commenced work with Dr. Jean-Francois Hibbert.
This work has resulted in the Company developing a new business opportunity
in the field of pain management and physical wellness utilizing Bio-Resonance
Therapy ("BRT"). Consequently, the Company is working towards owning and
operating pain management and physical wellness centers (hereafter "the
Centers") domestically and internationally.
The business operation of the Company will be developed in two phases.
Phase I includes the establishment of several of the treatment Centers. The
first Center was opened in Tarrytown, New York in June of 1997 (closed in
early 1998). The Salt Lake Center opened November 1998. The centers will
offer clients a complete fitness and wellness therapy package, including Bio
Resonance Therapy, flexibility training, and nutrition consultation. The
Company currently intends to open subsequent Centers in other strategically
located areas. As with the first Center, each Center will occupy
approximately 2500 sq. feet of space and will be staffed by approximately six
employees under the direction of a medical doctor. As the business develops, in
Phase II the Company intends to license and franchise these Centers.
Each Center will be equipped with Bio-Resonance Therapeutical devices.
BRT devices were first developed in the far east in the 1970s. The Company
and its consultants have modified the BRT device design (hereafter "Device")
for use in the United States. The Device operates on 110 volts to generate
an evenly heated pattern of energy field. The designers believe this field
duplicates the natural energy field generated by the human body and,
therefore, assists the human body to minimize or reduce pain and self heal.
A BRT would be categorized under FDA guidelines as a non-invasive medical
device. Some of the components for these Devices will be imported and then
assembled in the United States exclusively for the Company. Management
does not anticipate any difficulty in obtaining the necessary devices for the
Centers. The Centers will primarily compete with medical facilities that
focus on pain management and therapy. The Centers will be unique, however,
in that they will provide BRT using the equipment designed by the Company.
The Company is currently working with the manufacturer to develop a
hand-held BRT unit. This smaller unit will operate under the same principals
as the device installed in the Centers, but at significantly lower capacity.
These smaller devices will be marketed through a variety of marketing channels
for home use. The Company has sold the hand held units through 1997 and 1998.
In the summer of 1996, the Company privately raised $96,000 through the
sale of debentures which are convertible into the Company's common stock at
75% of the average bid price for the ten trading days prior to conversion.
The Registrant will need additional funding in order to pay its obligations,
file periodic reports and continue its currently planned business of owning
and operating pain management centers. The Registrant has not entered into
any agreement for the provisions of such additional funding and no
assurances can be given that such funding will be available to the Registrant
on terms acceptable to it or at all. In 1998, the Company has been able to
obtain short term financing for operations and inventory purchases but will
need to find additional short term or long term financing or equity
financing to continue to operate.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission of Matters to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
None
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.
Renu-U International, Inc.
Date: April 21, 1999 /s/ Frank Nelson
President and Principal Financial Officer
RENU-U INTERNATIONAL, INC.
(A Development Stage Company)
Balance Sheets
ASSETS
September 30,
1998 December 31,
(Unaudited) 1997
Current Assets
Cash $ 1,160 $ 1,695
Accounts Receivable 16,890 -
Inventory 18,363 -
36,413 1,695
Fixed Assets
Office equipment 41,674 18,167
Other Assets
Medical equipment 7,207 7,207
Deposits 350 25,350
$ 85,644 $52,419
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses $97,845 $ 78,656
Accounts payable - related party 74,538 58,236
Deferred Revenue 5,000 -
Short term notes 30,050 -
Current portion - long term debt 17,301 25,300
224,734 162,192
Long term debt (Note 5) 157,305 121,000
Stockholders' Equity
Preferred stock, $.10 par value 1,000,000 shares
authorized, no shares issued or outstanding - -
Common stock $.001 par value, 100,000,000
shares authorized, 9,961,241 shares issued
and outstanding 9,961 9,961
Capital in excess of par 753,342 753,342
Retained (deficit) accumulated during
development stage (1,056,023) (990,401)
Treasury stock (3,675) (3,675)
(296,395) (230,773)
$ 85,644 $52,419
RENU-U INTERNATIONAL, INC.
(A Development Stage Company)
Statements of Operations
(Unaudited)
For the Period
During the
Development
Stage from
January 1, 1983
For the Three Months For the Nine Months Through
Ended September 30, Ended September 30, September 30,
1998 1997 1998 1997 1998
REVENUE
Sales & Service $28,850 $ 16,946 $ 83,447 $17,946 $ 103,876
Franchise fees 5,000 320 10,000 702 10,000
33,850 17,266 93,447 18,648 113,876
Cost of Sales 8,425 - 22,036 - 22,036
Gross Margin 25,425 17,266 71,411 18,648 91,840
EXPENSES
Selling, General &
Administrative Expenses 28,244 50,080 101,032 102,674 572,013
Loss from Abandonment
Of Leasehold - - 36,000 - 36,000
TOTAL EXPENSES 28,244 50,080 137,032 102,674 608,013
Other Income (Expense)
Interest Income - - - - 4,533
NET LOSS $(2,819) $(32,814) $(65,622) $(84,026) $ (511,640)
NET LOSS PER SHARE $ - $ - $ (0.01) $ (.01)
AVERAGE SHARES
OUTSTANDING 9,961,241 9,961,241 9,961,241 9,961,241
RENU-U INTERNATIONAL, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
For the Period
During the
Development
Stage from
January 1, 1983
For the Nine Months Through
Ended September 30, September 30,
1998 1997 1998
Cash Flow Used for Operations:
Net loss from operations $(65,622) $ (84,026) $(511,640)
Items not requiring cash flow
during the current period:
Depreciation 4,742 3,367 8,328
Issuance of stock for services - - 28,795
Bad debts - - 18,000
Increase in accounts receivable (16,890) - (16,890)
Increase in inventory & prepaid expenses (18,363) - (18,363)
Decrease in notes receivable - (1,750) (3,000)
Decrease in deposits 25,000 - -
Increase / decrease in accounts payable 18,695 44,325 190,554
Increase in deferred revenue 5,000 - 5,000
Expenses paid by an officer - - 85,050
Net Cash Flow Used for Operations (47,438) (38,084 ) (214,166)
Cash Flow Provided From Financing
Activities:
Issuance of capital stock for cash - - 175,000
Issuance of notes payable 74,658 23,837 195,658
Net Cash Flow Provided
From Financing Activities 74,658 23,837 370,658
Cash Flow Used for Investing
Activities:
Cash invested in subsidiary - - (105,000)
Cash paid for fixed assets (27,755) (35,307) (46,657)
Cash paid for treasury stock - (3,675) (3,675)
Net Cash Flow Used for Investing
Activities (27,755) (38,982) (155,332)
Net Cash Flow (535) (53,229) 1,160
Cash - Beginning of Period 1,695 53,229 -
Cash - End of Period $ 1,160 $ - $1,160
RENU-U INTERNATIONAL, INC.
(A Development Stage Company)
Notes to Financial Statements
September 30, 1998
NOTE 1 - INTERIM FINANCIAL STATEMENTS
Management has elected to omit all of the disclosures for the
interim financial statements ended January 31, 1998 but has made all the
necessary adjustments to present an accurate financial statements for the
three months presented.
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