FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: March 31, 2000
Commission file number: 333-80429
Asset Servicing Corporation
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(exact name of registrant as specified in its charter)
Nevada 75-2823489
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(State of Incorporation) (IRS ID No.)
709-B West Rusk, Suite 580, Rockwall, Texas 75087
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: 214-212-2307
Check whether the registrant 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 [ ] No [ ].
Shares of common stock outstanding at March 31, 2000:
262,100
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TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION Page Number
Item 1. Financial Statements 1 - 4
Item 2. Managements's Discussion and Analysis
of Financial Condition and Results of
Operations 5
PART II - OTHER INFORMATION 6
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<TABLE>
<CAPTION>
ASSET SERVICING CORPORATION
BALANCE SHEETS
March 31, 2000 and December 31, 1999
ASSETS
March 31, 1999 Dec 31, 1999
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<S> <C> <C>
CURRENT ASSETS:
Cash $30,485 $116
PROPERTY AND EQUIPMENT:
Leased equipment (net of accumulated depreciation of $208) 9,791
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TOTAL ASSETS $40,276 $116
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable $1,073 $2,636
Advances from affiliate 2,234 2,991
Lease deposits 416
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TOTAL CURRENT LIABILITIES 3,723 5,627
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value 262 200
Additional paid-in-capital 64,338 2,300
Accumulated Deficit (28,047) (8,011)
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Total Stockholders' Equity 36,553 (5,511)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $40,276 $116
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1
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<CAPTION>
ASSET SERVICING CORPORATION
STATEMENT OF OPERATIONS
Three months ended March 31, 2000 and 1999
Three months Three months
ended ended
March 31, 2000 March 31, 1999
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<S> <C> <C>
REVENUE: $416 $0
OPERATING EXPENSE:
Filing fees 5,760 0
Professional fees 8,600 0
Promotion 5,000 0
General and administrative 1,092 0
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Total Operating Expense 20,452 0
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NET LOSS ($20,036) $0
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Weighted average shares outstanding 200,000 200,000
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LOSS PER SHARE ($0.10) $0.00
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2
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<CAPTION>
ASSET SERVICING CORPORATION
STATEMENT OF STOCKHOLDERS' EQUITY AND ACCUMULATED DEFICIT
Period from inception (May 27, 1998) to March 31, 2000
Common Paid In Accumulated
Shares Amount Capital Deficit Total
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<S> <C> <C> <C> <C> <C>
Balance,
May 27, 1998
(date of inception) -0- -0- -0- -0- -0-
Shares issued on May 29, 1998 for:
Services 160,000 160 1,840 2,000
Cash 40,000 40 460 500
Net Loss (2,323) (2,323)
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Balance
December 31, 1998 200,000 $200 $2,300 ($2,323) $177
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Net Loss (5,688)
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Balance
December 31, 1999 200,000 200 2,300 (2,323) (5,511)
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Sale of common stock 62,100 62 62,038 62,100
Net Loss (20,036)
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Balance
March 31, 2000 200,000 62,300 2,362 59,715 36,553
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3
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<TABLE>
<CAPTION>
ASSET SERVICING CORPORATION
STATEMENT OF CASH FLOWS
Three months ended March 31, 2000 and 1999
Three months Three months
ended ended
March 31, 2000 March 31, 1999
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($20,036) $0
Adjustments to reconcile net loss to net
cash (used) by operating activities:
Items not requiring cash - depreciation 208
Decrease in current liabilities (1,904)
Rounding 1
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NET CASH (USED) BY OPERATING ACTIVITIES: (21,731) 0
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of assets to lease (10,000) 0
CASH FLOWS FROM FINANCING ACTIVITIES:
Sale of common stock 62,100 0
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NET INCREASE IN CASH $30,369 $0
CASH, BEGINNING OF PERIOD 116 177
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CASH, END OF PERIOD $30,485 $177
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4
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Results of Operations
The Registrant filed a registration statement on Form SB-1 with the Securities
and Excahgne Commission which became effective on January 24, 2000. The
Registrant has been raising funds under that registration statement and as of
March 31, 2000 has sold 62,100 shares at $1.00 per share. As of May 8, 2000, the
Registrant had sold 87,425 shares. Under this offering, the Registrant was
authorized to sell a minimum of 50,000 shares and a maximum of 1,000,000 shares
at $1.00 per share.
In March 2000, the Registrant raised the minimum amount under its registration
statement and broke escrow. Also in March 2000, the Registrant entered into its
first lease whereby its operations according to its initial public offering
commenced. The terms of the lease effectively give a 32% return on the monies
put out. The Registrant is engaged in the leasing of manufacturing and
transportation equipment to businesses. The focus is on businesses who in our
judgement are financially sound but who might have a difficult time getting
financing at a bank or other traditional sources. The Registrant leases to these
type of businesses since a higher lease rate can be charged than to businesses
with unblemished credit histories. We will concentrate on equipment and vehicles
that are an integral part of the business which will help further to secure our
financial position and secure our payment stream.
The Registrant is also seeking to obtain a line of credit or guarantee on a line
of credit in order to increase the amount of capital available to it to make
leases and provide a greater return on its equity and therefore a greater return
to its shareholders.
There have been no economic events or changes that have affected the Registrant,
for better or worse, to attract capital and there are no economic trends or
uncertainties that the Registrant expects will have a material impact on whether
it can attract capital in the future. The market for lease financing still is
strong and there are not signs that the economy is slowing to affect that
market.
Liquidity
The Registrant has liquid assets of $30,485 which it has left from the monies
raised under its registration statement. The Registrant is in a liquid position
and will continue to raise monies under its registration statement in order to
make additional leases and for return on its capital.
The Registrant has minimal expenses and no commitments.
Capital Resources
The Registrant's capital resources have been generated from the sale of stock
under its registration statement that became effective January 24, 2000, and
from the lease of equipment according to its plan of business.
5
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The Registrant is in the middle of a stock offering under its SB-1 registration
statement which became effective during the quarter.
There were no plans or requirements for purchase of capital items during the
quarter for company purposes. The Registrant does not foresee any material
capital purchase in the coming twelve months.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
The Company is not involved in any legal proceedings.
Item 2. Changes in Securities.
Registrant has made no changes in its securities.
Item 3. Defaults Upon Senior Securities.
Registrant has no senior securities and accordingly no
defaults.
Item 4. Submission of Matters to a Vote of Security Holders.
Registrant submitted no matters to a vote of security holders.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
None.
6
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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.
Asset Servicing Corporation
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(Registrant)
BY: /s/ Charles Smith
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Charles Smith
Its: Secretary
DATE: May 9, 2000
Rockwall, Texas
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