U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-KSB
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 1999
-----------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
------------- -------------
Commission File No.
-----------
0-26177
Piezo Instruments, INC.
-------------------------------------
(Name of Small Business Issuer in its Charter)
UTAH 87-0425275
-------- ------------
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
5141 S. Moormont Drive
Salt Lake City, UT 84117
---------------------------
(Address of Principal Executive Offices)
Issuer's Telephone Number: (801) 262-8844
None; Not Applicable
-------------
(Former Name or Former Address, if changed since last Report)
311 South State Street, Suite 410
Salt Lake City, Utah 84111
Securities Registered under Section 12(b) of the Exchange Act: None
Name of Each Exchange on Which Registered: None
Securities Registered under Section 12(g) of the Exchange Act:
$0.001 Par Value Common Voting Stock
- ------------------------------------
Title of Class
Check whether the Issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the Company was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
(1) Yes X No (2) Yes X No
--- --- --- ---
Check if disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of Company's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]
State Issuer's revenues for its most recent fiscal year:
December 31, 1999 - $0.
<PAGE>
State the aggregate market value of the voting stock held by non-affiliates
computed by reference to the price at which the stock was sold, or the average
bid and asked prices of such stock, as of a specified date within the past 60
days.
December 31, 1999 - $2,123.7. There are approximately 2,123,700 shares of
common voting stock of the Company held by non-affiliates. Because there has
been no "public market" for the Company's common stock during the past five
years, the Company has arbitrarily valued these shares at par value of $0.001
per share.
(ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PAST FIVE YEARS)
None, Not applicable;
Check whether the issuer has filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes X No
--- ---
(APPLICABLE ONLY TO CORPORATE ISSUERS)
State the number of shares outstanding of each of the Issuer's classes of
common equity, as of the latest practicable date:
March 15, 2000
17,500,000
DOCUMENTS INCORPORATED BY REFERENCE
A description of "Documents Incorporated by Reference" is contained in Item
13 of this Report.
Transitional Small Business Issuer Format Yes X No
--- ---
<PAGE>
PART I
Item 1. Description of Business.
------------------------
Business Development.
- ---------------------
Organization and Charter Amendments.
-----------------------------------
Piezo Instruments, Inc. (the "Company") was organized under the laws of the
State of Utah on April 10, 1984 under the name "Core-Tech, Inc.", to engage in
any lawful purpose.
The Company's initial authorized capital was $50,000.00 consisting of
50,000,000 shares of one mill ($0.001) par value common voting stock. A copy of
the Company's initial Articles of Incorporation is attached hereto and is
incorporated herein by reference. See Part III, Item 1.
On November 12, 1985, the Company's Articles of Incorporation were amended
to reflect a name change from "Core-Tech, Inc." to "Piezo Instruments, Inc." A
copy of the Articles of Amendment to the Articles of Incorporation is attached
hereto and is incorporated herein by reference. See Part III, Item 1.
On August 17, 1990 the Company was reinstated with the State of Utah after
being suspended on June 12, 1990, for failure to file an annual report.
Material Changes in Control Since Inception and Related Business History.
-------------------------------------------------------------------------
On August 31, 1985, the Company acquired 100% of the issued and outstanding
shares or subscriptions to purchase shares of common voting stock of Piezo
Instruments, Inc., a Utah Corporation, in exchange for the issuance of
14,800,000 shares of the Company's "unregistered" and "restricted" common voting
stock.
On June 14, 1984, pursuant to rule 504 of Regulation D of the Securities
and Exchange Commission, the Company commenced the offer and sale to the public
of 2,500,000 shares of its common voting stock at a price of $0.01 per share,
for the total sum of $25,000. The offering was completed on October 5, 1984.
Until 1987, the Company engaged in engineering, research, development, and
merchandising of electronic and electronic and electromechanical devices,
equipment, and accessories. The Company's activities were unsuccessful and it
ceased active operations in 1987.
<PAGE>
Business.
- ---------
Other than the above-referenced matters and seeking and investigating
potential assets, properties or businesses to acquire, the Company has had no
business operations for over 5 years. To the extent that the Company intends to
continue to seek the acquisition of assets, property or business that may
benefit the Company and its stockholders, it is essentially a "blank check"
company. Because the Company has limited assets and conducts no business,
management anticipates that any such acquisition would require it to issue
shares of its common stock as the sole consideration for the acquisition. This
may result in substantial dilution of the shares of current stockholders. The
Company's Board of Directors shall make the final determination whether to
complete any such acquisition; the approval of stockholders will not be sought
unless required by applicable laws, rules and regulations, its Articles of
Incorporation or Bylaws, or contract. The Company makes no assurance that any
future enterprise will be profitable or successful.
The Company is not currently engaging in any substantive business activity
and has no plans to engage in any such activity in the foreseeable future. In
its present form, the Company may be deemed to be a vehicle to acquire or merge
with a business or company. The Company does not intend to restrict its search
to any particular business or industry, and the areas in which it will seek out
acquisitions, reorganizations or mergers may include, but will not be limited
to, the fields of high technology, manufacturing, natural resources, service,
research and development, communications, transportation, insurance, brokerage,
finance and all medically related fields, among others. The Company recognizes
that the number of suitable potential business ventures that may be available to
it may be extremely limited, and may be restricted to entities who desire to
avoid what these entities may deem to be the adverse factors related to an
initial public offering ("IPO"). The most prevalent of these factors include
substantial time requirements, legal and accounting costs, the inability to
obtain an underwriter who is willing to publicly offer and sell shares, the lack
of or the inability to obtain the required financial statements for such an
undertaking, limitations on the amount of dilution to public investors in
comparison to the stockholders of any such entities, along with other conditions
or requirements imposed by various federal and state securities laws, rules and
regulations. Any of these types of entities, regardless of their prospects,
would require the Company to issue a substantial number of shares of its common
stock to complete any such acquisition, reorganization or merger, usually
amounting to between 80 and 95 percent of the outstanding shares of the Company
following the completion of any such transaction; accordingly, investments in
any such private entity, if available, would be much more favorable than any
investment in the Company.
In the event that the Company engages in any transaction resulting in a
change of control of the Company and/or the acquisition of a business, the
Company will be required to file with the Commission a Current Report on Form
8-K within 15 days of such transaction. A filing on Form 8-K also requires the
filing of audited financial statements of the business acquired, as well as pro
forma financial information consisting of a pro forma condensed balance sheet,
pro forma statements of income and accompanying explanatory notes.
Management intends to consider a number of factors prior to making any
decision as to whether to participate in any specific business endeavor, none of
which may be determinative or provide any assurance of success. These may
include, but will not be limited to an analysis of the quality of the entity's
management personnel; the anticipated acceptability of any new products or
marketing concepts; the merit of technological changes; its present financial
condition, projected growth potential and available technical, financial and
managerial resources; its working capital, history of operations and future
prospects; the nature of its present and expected competition; the quality and
experience of its management services and the depth of its management; its
potential for further research, development or exploration; risk factors
specifically related to its business operations; its potential for growth,
expansion and profit; the perceived public recognition or acceptance of its
products, services, trademarks and name identification; and numerous other
factors which are difficult, if not impossible, to properly or accurately
analyze, let alone describe or identify, without referring to specific objective
criteria.
<PAGE>
Regardless, the results of operations of any specific entity may not
necessarily be indicative of what may occur in the future, by reason of changing
market strategies, plant or product expansion, changes in product emphasis,
future management personnel and changes in innumerable other factors. Further,
in the case of a new business venture or one that is in a research and
development mode, the risks will be substantial, and there will be no objective
criteria to examine the effectiveness or the abilities of its management or its
business objectives. Also, a firm market for its products or services may yet
need to be established, and with no past track record, the profitability of any
such entity will be unproven and cannot be predicted with any certainty.
Management will attempt to meet personally with management and key
personnel of the entity sponsoring any business opportunity afforded to the
Company, visit and inspect material facilities, obtain independent analysis or
verification of information provided and gathered, check references of
management and key personnel and conduct other reasonably prudent measures
calculated to ensure a reasonably thorough review of any particular business
opportunity; however, due to time constraints of management, these activities
may be limited.
The Company is unable to predict the time as to when and if it may actually
participate in any specific business endeavor. The Company anticipates that
proposed business ventures will be made available to it through personal
contacts of directors, executive officers and principal stockholders,
professional advisors, broker dealers in securities, venture capital personnel,
members of the financial community and others who may present unsolicited
proposals. In certain cases, the Company may agree to pay a finder's fee or to
otherwise compensate the persons who submit a potential business endeavor in
which the Company eventually participates. Such persons may include the
Company's directors, executive officers, beneficial owners or their affiliates.
In this event, such fees may become a factor in negotiations regarding a
potential acquisition and, accordingly, may present a conflict of interest for
such individuals.
Although the Company has not identified any potential acquisition target,
the possibility exists that the Company may acquire or merge with a business or
company in which the Company's executive officers, directors, beneficial owners
or their affiliates may have an ownership interest. Current Company policy does
not prohibit such transactions. Because no such transaction is currently
contemplated, it is impossible to estimate the potential pecuniary benefits to
these persons.
Further, substantial fees are often paid in connection with the completion
of these types of acquisitions, reorganizations or mergers, ranging from a small
amount to as much as $250,000. These fees are usually divided among promoters or
founders, after deduction of legal, accounting and other related expenses, and
it is not unusual for a portion of these fees to be paid to members of
management or to principal stockholders as consideration for their agreement to
retire a portion of the shares of common stock owned by them. In the event that
such fees are paid, they may become a factor in negotiations regarding any
potential acquisition by the Company and, accordingly, may present a conflict of
interest for such individuals.
<PAGE>
Year 2000.
- ----------
Because the Company is not presently engaged in any substantial business
operations, management does not believe that computer problems associated with
the change of year to the year 2000 will have any material effect on its
operations. However, the possibility exists that the Company may merge with or
acquire a business that will be negatively affected by the "year 2000" problem.
The effect of such problem or the Company in the future can not be predicted
with any accuracy until such time as the Company identifies a merger or
acquisition target.
Principal Products and Services.
- --------------------------------
The limited business operations of the Company, as now contemplated,
involve those of a "blank check" company. The only activities to be conducted by
the Company are to manage its current limited assets and to seek out and
investigate the acquisition of any viable business opportunity by purchase and
exchange for securities of the Company or pursuant to a reorganization or merger
through which securities of the Company will be issued or exchanged.
Distribution Methods of the Products or Services.
- -------------------------------------------------
Management will seek out and investigate business opportunities through
every reasonably available fashion, including personal contacts, professionals,
securities broker dealers, venture capital personnel, members of the financial
community and others who may present unsolicited proposals; the Company may also
advertise its availability as a vehicle to bring a company to the public market
through a "reverse" reorganization or merger.
Status of any Publicly Announced New Product or Service.
- --------------------------------------------------------
None; not applicable.
Competitive Business Conditions.
- --------------------------------
Management believes that there are literally thousands of "blank check"
companies engaged in endeavors similar to those engaged in by the Company; many
of these companies have substantial current assets and cash reserves.
Competitors also include thousands of other publicly-held companies whose
business operations have proven unsuccessful, and whose only viable business
opportunity is that of providing a publicly-held vehicle through which a private
entity may have access to the public capital markets. There is no reasonable way
to predict the competitive position of the Company or any other entity in the
strata of these endeavors; however, the Company, having limited assets and cash
reserves, will no doubt be at a competitive disadvantage in competing with
entities which have recently completed IPO's, have significant cash resources
and have recent operating histories when compared with the complete lack of any
substantive operations by the Company for the past several years.
Sources and Availability of Raw Materials and Names of Principal Suppliers.
- --------------------------------------------------------------------------
None; not applicable.
Dependence on One or a Few Major Customers.
- -------------------------------------------
None; not applicable.
Patents, Trademarks, Licenses, Franchises, Concessions, Royalty Agreements
or Labor Contracts.
- --------------------------------------------------------------------------
None; not applicable.
Need for any Governmental Approval of Principal Products or Services.
- ---------------------------------------------------------------------
Because the Company currently produces no products or services, it is not
presently subject to any governmental regulation in this regard. However, in the
event that the Company engages in a merger or acquisition transaction with an
entity that engages in such activities, it will become subject to all
governmental approval requirements to which the merged or acquired entity is
subject.
<PAGE>
Effect of Existing or Probable Governmental Regulations on Business.
- -------------------------------------------------------------------
The integrated disclosure system for small business issuers adopted by the
Commission in Release No. 34-30968 and effective as of August 13, 1992,
substantially modified the information and financial requirements of a "Small
Business Issuer," defined to be an issuer that has revenues of less than $25
million; is a U.S. or Canadian issuer; is not an investment company; and if a
majority-owned subsidiary, the parent is also a small business issuer; provided,
however, an entity is not a small business issuer if it has a public float (the
aggregate market value of the issuer's outstanding securities held by
non-affiliates) of $25 million or more.
The Commission, state securities commissions and the North American
Securities Administrators Association, Inc. ("NASAA") have expressed an interest
in adopting policies that will streamline the registration process and make it
easier for a small business issuer to have access to the public capital markets.
The present laws, rules and regulations designed to promote availability to the
small business issuer of these capital markets and similar laws, rules and
regulations that may be adopted in the future will substantially limit the
demand for "blank check" companies like the Company, and may make the use of
these companies obsolete.
Research and Development.
- -------------------------
None; not applicable.
Cost and Effects of Compliance with Environmental Laws.
- -------------------------------------------------------
None; not applicable. However, environmental laws, rules and regulations
may have an adverse effect on any business venture viewed by the Company as an
attractive acquisition, reorganization or merger candidate, and these factors
may further limit the number of potential candidates available to the Company
for acquisition, reorganization or merger.
Number of Employees.
- --------------------
None.
Item 2. Description of Property.
-----------------------
The Company has no assets, property or business; its principal executive
office address and telephone number are the business office address and
telephone number of its majority shareholder, Duane S. Jenson, and are currently
provided at no cost. Because the Company has had no business, its activities
will be limited to keeping itself in good standing in the State of Utah, seeking
out acquisitions, reorganizations or mergers and preparing and filing the
appropriate reports with the Securities and Exchange Commission. These
activities have consumed an insubstantial amount of management's time.
Item 3. Legal Proceedings.
------------------
The Company is not a party to any pending legal proceeding. To the
knowledge of management, no federal, state or local governmental agency is
presently contemplating any proceeding against the Company. No director,
executive officer or affiliate of the Company or owner of record or beneficially
of more than five percent of the Company's common stock is a party adverse to
the Company or has a material interest adverse to the Company in any proceeding.
Item 4. Submission of Matters to a Vote of Security Holders.
----------------------------------------------------
No matter was submitted to a vote of the Company's security holders during
the fourth quarter of the calendar year covered by this Report or during the two
previous calendar years. Further, there have been no meetings of stockholders
since before 1989.
<PAGE>
PART II
Item 5. Market for Common Equity and Related Stockholder Matters.
---------------------------------------------------------
Market Information
- ------------------
There is no "public market" for shares of common stock of the Company.
However, the Company intends to submit for quotations regarding its common stock
on the OTC Bulletin Board of the National Association of Securities Dealers
("NASD"); however, management does not expect any public market to develop
unless and until the Company completes an acquisition or merger. In any event,
no assurance can be given that any market for the Company's common stock will
develop or be maintained.
Holders
- -------
The number of record holders of the Company's common stock as of March 15,
2000, is approximately 205.
Dividends
- ---------
The Company has not declared any cash dividends with respect to its common
stock and does not intend to declare dividends in the foreseeable future. The
future dividend policy of the Company cannot be ascertained with any certainty,
and until the Company completes any acquisition, reorganization or merger, as to
which no assurance may be given, no such policy will be formulated. There are no
material restrictions limiting, or that are likely to limit, the Company's
ability to pay dividends on its common stock.
Sales of "Unregistered" and "Restricted" Securities Over The Past Three Years.
- ------------------------------------------------------------------------------
None;
Item 6. Management's Discussion and Analysis or Plan of Operation.
----------------------------------------------------------
Plan of Operation.
- ------------------
The Company has not engaged in any material operations or had any revenues
from operations during the last two calendar years. The Company's plan of
operation for the next 12 months is to continue to seek the acquisition of
assets, properties or businesses that may benefit the Company and its
stockholders. Management anticipates that to achieve any such acquisition, the
Company will issue shares of its common stock as the sole consideration for such
acquisition.
During the next 12 months, the Company's only foreseeable cash requirements
will relate to maintaining the Company in good standing or the payment of
expenses associated with reviewing or investigating any potential business
venture, which the Company expects to pay from its cash resources. As of
December 31, 1999, it had no cash or cash equivalents. If additional funds are
required during this period, such funds may be advanced by management or
stockholders as loans to the Company. Because the Company has not identified any
such venture as of the date of this Report, it is impossible to predict the
amount of any such loan. However, any such loan should not exceed $25,000 and
will be on terms no less favorable to the Company than would be available from a
commercial lender in an arm's length transaction. As of the date of this Report,
the Company is not engaged in any negotiations with any person regarding any
such venture.
Results of Operations.
- ----------------------
Other than seeking the acquisition of assets, properties or businesses that
may benefit the Company and its stockholders, the Company has had no material
business operations in the two most recent calendar years, or in the last five
years.
At December 31, 1999, the Company's had no assets. See the Index to
Financial Statements, Item 7 of this Report.
Liquidity.
- ---------
None;
<PAGE>
Item 7. Financial Statements.
---------------------
Financial Statements for the years ended
December 31, 1999 and 1998
Independent Auditors' Report
Balance Sheets - December 31, 1999
Statements of Operations for the years ended
December 31, 1999 and 1998
Statements of Stockholders' Equity for the
years ended December 31, 1999 and 1998
Statements of Cash Flows for the years ended
December 31, 1999 and 1998
Notes to the Financial Statements
Item 8. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
- ---------------------
Mantyla, McReynolds & Associates, 5872 South 900 East, Suite 250, Salt Lake
City, Utah 84121, has been retained as the Company's auditor for the past two
years.
<PAGE>
PART III
Identification of Directors and Executive Officers
- --------------------------------------------------
The following table sets forth the names of all current directors and
executive officers of the Company. These persons will serve until the next
annual meeting of the stockholders or until their successors are elected or
appointed and qualified, or their prior resignation or termination.
<TABLE>
<CAPTION>
Date of Date of
Positions Election or Termination
Name Held Designation or Resignation
- ---- ---- ----------- --------------
<S> <C> <C> <C>
Yujiro Yamamoto Director and 1984 *
President
Ralph M. Wilkerson Director and 1994 *
"Buck" Secretary/
Treasurer
Valerie S. Keating Director 1996 *
</TABLE>
* These persons presently serve in the capacities indicated.
Business Experience.
- --------------------
Yujiro Yamamoto, President and a director is 70 years of age. Mr. Yamamoto
received his Ph.D. and M.Sc. Degrees from UCLA, and his B.E.E. from Waseda
University in Japan. Mr. Yamamoto has been working with Y2 Ultra-Filter, Inc., a
Wyoming corporation since 1993.
Ralph M. Wilkerson, Secretary/Treasurer and a director is 67 years of age.
Mr. Wilkerson is a retired U.S. Army Lt. Colonel. Since retirement, Mr.
Wilkerson has engaged in investment banking and real-estate in Cody Wyoming. Mr.
Wilkerson has studied at the University of Maryland, Georgetown University,
University of North Carolina, and the Foreign Service Institute of the U.S.
State Department.
Valerie Keating, a director is 35 years of age. Mrs. Keating has been
employed by Alliant Techsystems, an aerospace company in Utah for the past
fourteen years. She has held various positions at Alliant Techsystems, including
Manufacturing/Process Engineer, Hazards Analyst, Science and Technology
Engineer, and Project Engineer. She has a Bachelor of Science degree in Chemical
Engineering from Montana State University.
Significant Employees.
- ----------------------
The Company has no employees who are not executive officers, but who are
expected to make a significant contribution to the Company's business.
Family Relationships.
- ---------------------
There are no family relationships between any current directors or
executive officers of the Company, either by blood or by marriage.
<PAGE>
Involvement in Certain Legal Proceedings.
- -----------------------------------------
Except as stated above, during the past five years, no director, person
nominated to become a director, executive officer, promoter or control person of
the Company:
(1) was a general partner or executive officer of any business against
which any bankruptcy petition was filed, either at the time of the
bankruptcy or two years prior to that time;
(2) was convicted in a criminal proceeding or named subject to a
pending criminal proceeding (excluding traffic violations and other minor
offenses);
(3) was subject to any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining, barring, suspending or otherwise
limiting his involvement in any type of business, securities or banking
activities; or
(4) was found by a court of competent jurisdiction (in a civil
action), the Securities and Exchange Commission or the Commodity Futures
Trading Commission to have violated a federal or state securities or
commodities law, and the judgment has not been reversed, suspended or
vacated.
Compliance with Section 16(a) of the Exchange Act
- -------------------------------------------------
Form 3's have been filed for the Officers and Directors as well as the 10%
shareholder of the Company.
<PAGE>
Item 10. Executive Compensation.
-----------------------
The following table sets forth the aggregate compensation paid by the Company
for services rendered during the periods indicated:
<TABLE>
<CAPTION>
SUMMARY COMPENSATION TABLE
Long Term Compensation
Annual Compensation Awards Payouts
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Secur-
ities All
Name and Year or Other Rest- Under- LTIP Other
Principal Period Salary Bonus Annual ricte dlying Pay- Comp-
Position Ended ($) ($) Compen- Stock Options outs ensat'n
- -----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Yujiro
Yamamoto 12/31/99 0 0 0 0 0 0 0
President,
Director
Buck
Wilkerson 12/31/99 0 0 0 0 0 0 0
Secretary
Treasurer,
Director
Valerie 12/31/99 0 0 0 0 0 0 0
Keating,
Director
</TABLE>
No cash compensation, deferred compensation or long-term incentive plan
awards were issued or granted to the Company's management during the calendar
years ending December 31, 1999, 1998, or 1997, or the period ending on the date
of this Report.
Compensation of Directors.
- --------------------------
There are no standard arrangements pursuant to which the Company's
directors are compensated for any services provided as director. No additional
amounts are payable to the Company's directors for committee participation or
special assignments.
There are no arrangements pursuant to which any of the Company's directors
was compensated during the Company's last completed calendar year for any
service provided as director.
<PAGE>
Employment Contracts and Termination of Employment and
Change-in-Control Arrangements.
- -------------------------------
There are no employment contracts, compensatory plans or arrangements,
including payments to be received from the Company, with respect to any director
or executive officer of the Company which would in any way result in payments to
any such person because of his or her resignation, retirement or other
termination of employment with the Company or any subsidiary, any change in
control of the Company, or a change in the person's responsibilities following a
change in control of the Company.
Item 11. Security Ownership of Certain Beneficial Owners and Management.
---------------------------------------------------------------
Security Ownership of Certain Beneficial Owners.
- ------------------------------------------------
The following table sets forth the shareholdings of those persons who
beneficially own more than five percent of the Company's common stock as of the
date of February 15, 2000, with the computations being based upon 17,500,000
shares of common stock being outstanding.
<TABLE>
<CAPTION>
Number of Shares Percentage
Name Beneficially Owned of Class (1)
- ---------------- ------------------ --------
<S> <C> <C>
Yujiro Yamamoto 10,155,500 58%
1201 Via La Jolla
San Clements, CA 92672
Ralph M. Wilkerson* 3,871,000 22%
45 Dale Drive
Cody, WY 82414
Charles Taggart** 1,349,800 7.7%
P.O. Drawer 777
Salt Lake City, UT 84110
------- -----
15,376,300 87.7%
* Includes shares beneficially held by Mr. Wilkerson in the name of "W-Group" a
corporation in which Mr. Wilkerson is the majority shareholder, and Shirley
Wilkinson, his wife.
* Includes shares beneficially held by Mr. Taggart in the name of "Wind River
Trust".
</TABLE>
<PAGE>
Security Ownership of Management.
- ---------------------------------
The following table sets forth the shareholdings of the Company's directors
and executive officers as of the January 7, 2000:
<TABLE>
<CAPTION>
Number of Percentage of
Name and Address Shares Beneficially Owned of Class *
- ---------------- ------------------------- --------
<S> <C> <C>
Yujiro Yamamoto 10,155,500 58%
1201 Via La Jolla
San Clements, CA 92672
Ralph M. Wilkerson 3,871,000 22%
45 Dale Drive
Cody, WY 82414
Valerie S. Keating 0 0
5141 S. Moormont Dr.
Salt Lake City, UT 84117
------- ------
All directors and
executive officers 14,026,500 70%
as a group (3 persons)
</TABLE>
Changes in Control.
- -------------------
There are no present arrangements or pledges of the Company's securities
which may result in a change in control of the Company.
Item 12. Certain Relationships and Related Transactions.
-----------------------------------------------
Transactions with Management and Others.
- ----------------------------------------
For a description of transactions between members of management, five
percent stockholders, "affiliates", promoters and finders, see the caption
"Sales of 'Unregistered' and 'Restricted' Securities Over the Past Three Years"
of Item I.
<PAGE>
Item 13. Exhibits and Reports on Form 8-K.
---------------------------------
Reports on Form 8-K
- -------------------
None; Not Applicable
<PAGE>
Exhibits
- --------
<TABLE>
<CAPTION>
Exhibit
Number Description*
- ------ -----------
<S> <C>
3.1 Initial Articles of Incorporation*
3.2 Articles of Amendment to the
Articles of Incorporation*
3.3 By-Laws*
27 Financial Data Schedule
</TABLE>
DOCUMENTS INCORPORATED BY REFERENCE
*The exhibits are hereby incorporated by reference and have been filed with
the Securities and Exchange Commission and are attached to the Company's
Registration Statement on Form 10-SB, in there entirety.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Piezo Instruments, Inc.
Date: 3-28-00 /S/ YUJIRO YAMAMOTO
Yujiro Yamamoto
President and Director
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this Report has been signed below by the following persons on behalf of
the Company and in the capacities and on the dates indicated:
Piezo Instruments, Inc.
Date: 3-28-00 /S/ YUJIRO YAMAMOTO
Yujiro Yamamoto
President and Director
Date: 3-28-00 /S/ RALPH WILKERSON
Ralph Wilkerson
Vice President and Director
<PAGE>
PIEZO INSTRUMENTS, INC.
[A Development Stage Company]
FINANCIAL STATEMENTS
December 31, 1999
[WITH INDEPENDENT AUDITORS REPORT]
<PAGE>
<TABLE>
<CAPTION>
PIEZO INSTRUMENTS, INC.
[A Development Stage Company]
Table of Contents
Page
<S> <C>
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Balance Sheet - December 31, 1999 . . . . . . . . . . . . . . . . . . . . . . .. 2
Statements of Stockholders' Equity/(Deficit) for the Period from
Reinstatement [August 17, 1990] through December 31, 1999 . . . . . . . . . . . 3
Statements of Operations for the Years Ended December 31, 1999
and December 31, 1998, and for the Period from Reinstatement [August 17, 1990]
through December 31, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Statements of Cash Flows for the Years Ended December 31, 1999
and December 31, 1998, and for the Period from Reinstatement [August 17, 1990]
through December 31, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . .. 6 - 7
</TABLE>
<PAGE>
Board of Directors and Stockholders
PIEZO INSTRUMENTS, INC.
Salt Lake City, Utah
We have audited the accompanying balance sheets of Piezo Instruments, Inc. [a
development stage company] as of December 31, 1999, and the related statements
of stockholders' equity/(deficit), operations, and cash flows for the years
ended December 31, 1999 and 1998, and for the period from reinstatement [August
17, 1990] through December 31, 1999. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Piezo Instruments, Inc. as of
December 31, 1999, and the results of its operations and its cash flows for the
years ended December 31, 1999 and 1998, and for the period from reinstatement
[August 17, 1990] through December 31, 1999, in conformity with generally
accepted accounting principles.
The accompanying financial statements have been prepared assuming that Piezo
Instruments, Inc. will continue as a going concern. As discussed in Note D to
the financial statements, the Company has accumulated losses from reinstatement
and presently has no prospects for commencing operations or generating revenue.
These issues raise substantial doubt about its ability to continue as a going
concern. Management's plans in regard to these matters are also described in
Note D. The financial statements do not include any adjustment that might result
from the outcome of this uncertainty.
_______________________________________
Mantyla McReynolds
January 20, 2000
Salt Lake City, Utah
<PAGE>
<TABLE>
<CAPTION>
PIEZO INSTRUMENTS, INC.
[A Development Stage Company]
Balance Sheet
December 31, 1999
<S> <C> <C>
ASSETS
Current Assets
Cash - Note B ...................................... $ -0-
Total Current Assets ...................................... -0-
TOTAL ASSETS .............................................. $ -0-
LIABILITIES AND STOCKHOLDERS' DEFICIT
LIABILITIES
Current Liabilities
Accounts payable ................................... $ -0-
Stockholder loan - Note E .......................... 19,904
Income taxes payable - Notes A & C ................. 100
Total Current Liabilities ................................. 20,004
TOTAL LIABILITIES ................................................. 20,004
STOCKHOLDERS' DEFICIT
Capital stock - 50,000,000 shares authorized at $0.001 par;
17,500,000 shares issued and outstanding ............... 17,500
Additional paid-in capital ................................ 109,200
Deficit accumulated during development stage .............. (146,704)
TOTAL STOCKHOLDERS' DEFICIT ....................................... (20,004)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT ....................... $ -0-
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
<TABLE>
<CAPTION>
PIEZO INSTRUMENTS, INC.
[A Development Stage Company]
Statements of Stockholders' Equity/(Deficit)
For the Period from Reinstatement [August 17, 1990] through December 31, 1999
Deficit
Accumulated
Additional During Total
Number of Common Paid-in Development Stockholders'
Shares Stock Capital Stage Equity/(Deficit)
--------------- -------------- -------------- ---------------- -------------------
<S> <C> <C> <C> <C> <C>
Balance, August 17, 1990 ............... 18,500,000 18,500 108,200 (126,700) $ -0-
Net loss for the year ended December 31,
1990 (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1990 ............. 18,500,000 18,500 108,200 (126,810) (110)
Net loss for the year ended December 31,
1991 (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1991 ............. 18,500,000 18,500 108,200 (126,920) (220)
Net loss for the year ended December 31,
1992 (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1992 ............. 18,500,000 18,500 108,200 (127,030) (330)
Net loss for the year ended
December 31, 1993 ...................... (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1993 ............. 18,500,000 18,500 108,200 (127,140) (440)
Net loss for the year ended
December 31, 1994 ...................... (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1994 ............. 18,500,000 18,500 108,200 (127,250) (550)
Net loss for the year ended
December 31, 1995 ...................... (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1995 ............. 18,500,000 18,500 108,200 (127,360) (660)
Net loss for the year ended
December 31, 1996 ...................... (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1996 ............. 18,500,000 18,500 108,200 (127,470) (770)
Net loss for the year ended
December 31, 1997 ...................... (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1997 ............. 18,500,000 18,500 108,200 (127,580) (880)
Net loss for the year ended
December 31, 1998 ...................... (110) (110)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1998 ............. 18,500,000 18,500 108,200 (127,690) (990)
Cancellation of shares ................. (1,000,000) (1,000) 1,000
Net loss for the year ended
December 31, 1999 ...................... (19,014) (19,014)
----------- ----------- ----------- ----------- ---------------
Balance, December 31, 1999 ............. 17,500,000 $ 17,500 $ 109,200 $ (146,704) $ (20,004)
=========== =========== =========== =========== ===============
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
<TABLE>
<CAPTION>
PIEZO INSTRUMENTS, INC.
[A Development Stage Company]
Statements of Operations
For the Years Ended December 31, 1999 and 1998, and
for the Period from Reinstatement [August 17, 1990] through December 31, 1999
For the Period
For the Year Ended For the Year Ended from Reinstatement to
December 31, 1999 December 31, 1998 December 31, 1999
<S> <C> <C> <C> <C> <C> <C>
Revenues ................ $ -0- $ -0- $ -0-
Expenses ................ 18,914 10 19,004
Loss Before Income Tax .. (18,914) (10) (19,004)
Income taxes- Notes A & C 100 100 1,000
Net Loss ................ $ (19,014) $ (110) $ (20,004)
Net Loss Per Share ...... $ (.01) $ (.01) $ (.01)
Weighted Average
Shares Outstanding .... 17,500,000 17,500,000 17,500,000
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
<TABLE>
<CAPTION>
PIEZO INSTRUMENTS, INC.
[A Development Stage Company]
Statements of Cash Flows
For the Years Ended December 31, 1999 and 1998, and
for the Period from Reinstatement [August 17, 1990] through December 31, 1999
For the Period from
For the Year Ended For the Year Ended Reinstatement to
December 31, 1999 December 31, 1998 December 31, 1999
<S> <C> <C> <C>
Cash Flows From Operating Activities
Net Loss ........................................ $ (19,014) $ (110) $ (20,004)
Adjustments to reconcile net income to net
cash provided by operating activities:
Increase/(decrease) in:
Income taxes payable ............. -0- 100 100
Shareholder loan ................. 19,014 10 19,904
Net Cash Used For Operating Activities .......... -0- -0- -0-
Net Increase (Decrease) in Cash ................ -0- -0- -0-
Beginning Cash Balance .......................... -0- -0- -0-
Ending Cash Balance ............................. $ -0- $ -0- $ -0-
Supplemental Disclosure of Cash Flow Information:
Cash paid for the period for interest$ .......... $ -0- $ -0- $ -0-
Cash paid for the period for income taxes ....... -0- -0- -0-
</TABLE>
See accompanying notes to financial statements
5
<PAGE>
PIEZO INSTRUMENTS, INC.
Notes to Financial Statements
December 31, 1999
NOTE A Summary of Significant Accounting Policies
Company Background
The Company originally incorporated under the laws of the State of Utah on
April 10, 1984 using the name Core-Tech, Inc., to engage in various
activities in the natural resources industry. On October 15, 1985 the
Company entered into an agreement and plan of reorganization whereby
Core-Tech, Inc. would acquire 100% of all outstanding shares of Piezo
Instruments, Inc., a Utah Corporation. Core-Tech, Inc. issued 14,800,000
shares of $.001 par value stock to the shareholders of Piezo Instruments,
Inc. The acquisition of Piezo Instruments, Inc. by Core-Tech, Inc. was
considered a "pooling of interests." At the annual meeting held on November
12, 1985, the stockholders of Core-Tech, Inc. voted to change the name of
the Company to Piezo Instruments, Inc. and expanded the purpose of the
Company to include the design, development, and marketing of electrical and
other devises. The Company was not successful in beginning its planned
principal operations through 1987 and eventually ceased all attempts. In
1990, the Company was reinstated but remained dormant.
Piezo Instruments, Inc., still a development stage company, has yet to
commence its planned principal operations and has been in an essentially
dormant status for the last eleven years.
Income Taxes
In February 1992, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standard (SFAS) No. 109, "Accounting For
Income Taxes," which is effective for fiscal years beginning after December
15, 1992. SFAS No. 109 requires the asset and liability method of
accounting for income taxes. The asset and liability method requires that
the current or deferred tax consequences of all events recognized in the
financial statements are measured by applying the provisions of enacted tax
laws to determine the amount of taxes payable or refundable currently or in
future years. The Company adopted SFAS No. 109 for financial reporting
purposes in 1993. See Note C below.
Net Loss Per Common Share
Net loss per common share is based on the weighted average number of shares
outstanding.
Use of Estimates in Preparation of Financial Statements
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 B Cash
Cash is comprised of cash on hand or on deposit in banks. The Company has
no cash as of December 31, 1999.
6
<PAGE>
PIEZO INSTRUMENTS, INC.
Notes to Financial Statements
December 31, 1999
NOTE C Change in Accounting Principle -- Accounting for Income Taxes
During 1993, the Company adopted Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes." The cumulative effect of
this change in accounting for income taxes as of January 1, 1993 is $0, due
to operating losses carried forward from prior years and unlikely nature of
future earnings. For the years ended December 31, 1999 and 1998, the
Company had no significant income tax expenses due to no operations during
those periods. Any deferred tax benefit arising from the operating losses
carried forward, the benefits of which will expire in various amounts
through 2015, would be offset entirely by a valuation allowance since it is
not likely that the Company will be sufficiently profitable in the future
to take advantage of the losses. The Company has no timing differences.
The amount shown on the balance sheet for income taxes payable represents
the annual minimum amount due to the State of Utah.
NOTE D Liquidity
The Company has accumulated losses since reinstatement totaling $20,004, no
assets and no operations at December 31, 1999. Financing for the Company's
limited activities to date has been primarily provided by borrowing from a
stockholder. The Company's ability to achieve a level of profitable
operations and/or additional financing impacts the Company's ability to
continue as it is presently organized. Management is currently seeking a
well-capitalized merger candidate in order to commence its operations.
Should management be unsuccessful in its merger activities, it will have a
material adverse effect on the Company.
NOTE E Stockholder Loan
A stockholder has paid expenses and taxes on behalf of the Company in the
amount of $18,914 during the year ended December 31, 1999, $110 during the
year ended December 31, 1998, and $880 in prior years. The Company has
recorded a liability for these expenses to the stockholder. The unsecured
loan bears no interest and is due on demand.
NOTE F Cancellation of Shares
In May, 1999, the Company canceled 1,000,000 shares of common stock that
had been issued as part of an exchange of securities with another
corporation in 1986. The original transaction was voided when planned
operations never materialized and the shares were returned to the Company.
All weighted average number of shares values presented in this report have
been restated to reflect the cancellation of these shares retroactive to
the reinstatement date.
7
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001085402
<NAME> PIEZO INSTRUMENTS, INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 20,004
<BONDS> 0
0
0
<COMMON> 17,500
<OTHER-SE> (37,504)
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 18,914
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (19,014)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (19,014)
<EPS-BASIC> (.01)
<EPS-DILUTED> (.01)
</TABLE>
