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FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
/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
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OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from............. to...................
Commission file number 000-26653
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BAYNON INTERNATIONAL CORPORATION
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(Exact name of registrant as specified in its charter)
Nevada 88-0285718
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
266 Cedar Street,
Cedar Grove, New Jersey 07009
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(Address of principal executive offices) (Zip Code)
(973) 239-2952
(Registrant's telephone number,
including area code)
Not applicable
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(Former name, former address and former fiscal year,
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 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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Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at August 1, 2000
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Common Stock, $.001 par value 10,532,692
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BAYNON INTERNATIONAL CORPORATION
<TABLE>
<CAPTION>
Index Page No.
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<S> <C>
Part I Financial Information
Item 1 Financial Statements:
Balance Sheets - June 30, 2000 and December 31, 1999 3
Statements of Operations - For the Three and Six Months Ended June
30, 2000 and 1999
Statements of Cash Flows - For the Three and Six Months
Ended June 30, 2000 and 1999 5
Notes to Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II Other Information
Item 1 Legal Proceedings 8
Item 2 Changes in Securities and Use of Proceeds 8
Item 3 Defaults Upon Senior Securities 8
Item 4 Submission of Matters to a Vote of Security Holders 8
Item 5 Other Information 8
Item 6 Exhibits and Reports on Form 8-K 8
Exhibit 27.1: Financial Data Schedule 10
</TABLE>
2
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BAYNON INTERNATIONAL CORPORATION
Balance Sheets
<TABLE>
<CAPTION>
June 30, 2000 December 31, 1999
(Unaudited) (Audited)
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<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 44,202 $ 53,475
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Total Current Assets 44,202 53,475
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Total Assets $ 44,202 $ 53,475
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 3,250 $ 6,105
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Total Current Liabilities 3,250 6,105
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Total Liabilities 3,250 6,105
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Stockholders' Equity:
Common stock, $.001 par value, 50,000,000
Shares authorized, 10,532,692 shares issued
and outstanding at June 30, 2000
and December 31, 1999 10,533 10,533
Additional paid-in-capital 53,000 53,000
Retained earnings (deficit) (22,581) (16,163)
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Total Stockholders' Equity 40,952 47,370
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Total Liabilities and Stockholders' Equity $ 44,202 $ 53,475
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</TABLE>
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The accompanying notes are an integral part of these financial statements.
3
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BAYNON INTERNATIONAL CORPORATION
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, 2000, June 30, 2000,
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2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Revenues $ -0- $ -0- $ -0- $ -0-
Cost of Revenues -0- -0- $ -0- $ -0-
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Gross Profit -0- -0- -0- -0-
Other Costs:
General and administrative expenses 7,163 3,330 7,794 3,910
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Total Other Costs 7,163 3,330 7,794 3,910
Other Income and Expense:
Interest income 647 700 1,376 1,391
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Net Income (Loss) before Income Taxes (6,516) (2,630) (6,418) (2,519)
Income Taxes -0- -0- -0- -0-
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Net Income (Loss) $ (6,516) $ (2,630) $ (6,418) $ (2,519)
========== ========== ========== ===========
Earnings (Loss) Per Share:
Basic Earnings (loss) per common share $ .00 $ .00 $ .00 $ .00
========== ========== ========== ===========
Diluted Earnings (loss) per common share $ .00 $ .00 $ .00 $ .00
========== ========== ========== ===========
Basic Common shares outstanding 10,532,692 9,532,692 10,532,692 9,532,692
========== ========== ========== ===========
Diluted Common shares outstanding 10,532,692 9,532,692 10,532,692 9,532,692
========== ========== ========== ===========
</TABLE>
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The accompanying notes are an integral part of these financial statements.
4
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BAYNON INTERNATIONAL CORPORATION
Statements of Cash Flows
For the Six Months Ended June 30
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30
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2000 1999
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<S> <C> <C>
Cash Flows from Operating Activities:
Net Income (Loss) $ (6,418) $ (2,519)
Adjustments to reconcile net loss to net cash used in operating
activities: Decrease in accounts payable and accrued expenses
Net Cash Used in Operating Activities (2,855) (1,285)
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(9,273) (1,234)
Cash Flows from Financing Activities:
Issuance of common stock -0- -0-
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Net Cash provided by financing activities -0- -0-
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Net Increase (Decrease) in Cash and Cash Equivalents (9,273) (1,234)
Cash and Cash Equivalents, beginning of period 53,475 50,892
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Cash and Cash Equivalents, end of period $ 44,202 $ 49,658
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</TABLE>
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The accompanying notes are an integral part of these financial statements.
5
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BAYNON INTERNATIONAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
March 31, 2000 and 1999
(Unaudited)
1. Baynon International Corporation (formerly known as Technology
Associates Corporation and hereinafter referred to as the "Company"),
was originally incorporated on February 29, 1968 under the laws of the
Commonwealth of Massachusetts to engage in any lawful corporate
undertaking. On December 28, 1989, the Company reincorporated under
the laws of the State of Nevada. The Company was formerly engaged in
the technology marketing business and its securities were traded on
the National Association of Securities Dealers OTC Bulletin Board. The
Company has not operated for at least the last two years and has no
operations to date.
2. The December 31, 1999 balance sheet data was derived from audited
financial statements but does not include all disclosures required by
generally accepted accounting principles. In the opinion of management, the
accompanying unaudited financial statements contain all adjustments
necessary to present fairly the financial position as of June 30, 2000 and
the statements of operations and the statements of cash flows for the three
and six months ended June 30, 2000 and 1999.
The statements of operations for the three and six months ended June
30, 2000 and 1999 are not necessarily indicative of results for the full
year.
While the Company believes that the disclosures presented are adequate
to make the information not misleading, these financial statements should be
read in conjunction with the financial statements and accompanying notes
included in the Company's Annual Report on Form 10-KSB for the fiscal year
ended December 31, 1999.
3. Earnings per share are based on the weighted average number of common
shares outstanding including common stock equivalents.
6
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BAYNON INTERNATIONAL CORPORATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
At June 30, 2000, the Company had a cash balance of $44,202, which
represents a $9,273 decrease from the $53,475 balance at December 31, 1999. This
$9,273 decrease results entirely from cash used in operations. The Company's
working capital position at June 30, 2000 was $40,952 as compared to a December
31, 1999 balance of $47,370.
The focus of the Company's efforts is to acquire or develop an
operating business. Despite no active operations at this time, management
intends to continue in business and has no intention to liquidate the Company.
The Company has considered various business alternatives including the possible
acquisition of an existing business, but to date has found possible
opportunities unsuitable or excessively priced. The Company does not contemplate
limiting the scope of its search to any particular industry. Management has
considered the risk of possible opportunities as well as their potential
rewards. Management has invested time evaluating several proposals for possible
acquisition or combination, however, none of these opportunities were pursued.
The Company presently owns no real property and at this time has no intention of
acquiring any such property.
Results of Operations
Three Months Ended June 30, 2000 compared to Three Months Ended June 30, 1999
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Net income (loss)
The Company incurred a loss of $6,516 in the current quarterly period,
which represents a $3,886 increase in Net Loss compared to the prior quarterly
period. Interest income decreased $53 to $647 primarily due to lower interest
rates and a reduced amount of invested cash. General and administrative expenses
of $7,163 were incurred in the current quarterly period compared to $3,330 in
the prior quarterly period. The increase of $3,833 was due primarily to an
increase in professional fees incurred in connection with filing requirements.
Six Months Ended June 30, 2000 compared to Six Months Ended June 30, 1999
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Net income (loss)
The Company incurred a loss of $6,418 in the current six-month period,
which represents a $3,899 increase in Net Loss compared to the prior quarterly
period. Interest income decreased $15 to $1,376 primarily due to lower interest
rates and a reduced amount of invested cash. General and administrative expenses
of $7,794 were incurred in the current sixth-month period compared to $3,910 in
the prior quarterly period. The increase of $3,884 was due primarily to an
increase in professional fees incurred in connection with filing requirements.
During the current and prior year quarter the Company had not recorded
an income tax provision/benefit due to its tax carryforward position at that
time.
7
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BAYNON INTERNATIONAL CORPORATION
PART II. Other Information
Item 1. Legal Proceedings
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Not Applicable.
Item 2. Change in Securities and Use of Proceeds
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Not Applicable.
Item 3. Defaults Upon Senior Securities
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Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders
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Not Applicable.
Item 5. Other Information
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Not Applicable.
Item 6. Exhibits and Reports on Form 8-K
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(a) Exhibits: See Financial Data Schedule,
attached hereto as Exhibit 27.1
(b) Reports on Form 8-K - None
8
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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.
BAYNON INTERNATIONAL CORPORATION
Registrant
Date: August 10, 2000 By: /s/ Pasquale Catizone
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Pasquale Catizone, Chairman
(on behalf of the registrant)
