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: September 30, 2000
Commission file number: 000-28169
Electrical Generation Technology Corporation
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(exact name of registrant as specified in its charter)
Utah 75-2184926
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(State of Incorporation) (IRS ID No.)
806 S. St. Paul, Dallas, Texas 75206
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: 214-742-1167
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 September 30, 2000:
12,017,670
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TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION Page Number
Item 1. Financial Statements 1 - 6
Item 2. Managements's Discussion and Analysis
of Financial Condition and Results of
Operations 7
PART II - OTHER INFORMATION 8
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<TABLE>
<CAPTION>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
BALANCE SHEETS
September 30, 2000 and December 31, 1999
ASSETS
------
June 30, 2000 Dec 31, 1999
----------------- ----------------
<S> <C> <C>
CURRENT ASSETS:
Accounts receivable $11,334 $0
Advances 2,750
----------------- ----------------
Total current assets 14,084 0
PROPERTY, PLANT & EQUIPMENT:
Furniture & fixtures 3,451
Accumulated depreciation (173)
----------------- ----------------
Total property, plant & equipment 3,278
----------------- ----------------
TOTAL ASSETS $17,362 $0
================= ================
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Cash overdraft 16,981
Accounts payable and accrued expenses 46,639 5,000
Accounts payable - related party 11,348 9,954
Short term notes payable 65,000
Advances from shareholders 228,831
----------------- ----------------
Total Current Liabilities $139,968 $243,785
STOCKHOLDERS' EQUITY:
Commonstock, $0.001 par value, 12,017,670 and 8,557,670 shares
issued and outstanding at September 30, 2000 and
December 31, 1999 respectively 12,018 8,558
Additional paid-in-capital 451,041 150,516
Accumulated Deficit (585,665) (402,859)
----------------- ----------------
Total Stockholders' Equity (122,606) (243,785)
----------------- ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 17,362 0
================= ================
</TABLE>
See accompanying notes
1
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<TABLE>
<CAPTION>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
STATEMENT OF OPERATIONS
Three Months Ended September 30, 2000 and 1999
Three months Three months
ended ended
Sept 30, 2000 Sept 30, 1999
----------------- ----------------
<S> <C> <C>
REVENUE: $11,334 $0
OPERATING EXPENSE:
Amortization 173
General & administrative 64,853
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Total Operating Expense 65,026 0
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NET LOSS ($53,692) $0
================= ================
Weighted average shares outstanding 12,017,670 8,207,670
================= ================
LOSS PER SHARE ($0.00) $0.00
================= ================
</TABLE>
See accompanying notes
2
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<TABLE>
<CAPTION>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
STATEMENT OF STOCKHOLDERS' EQUITY AND ACCUMULATED DEFICIT
Period from December 31, 1998 to September 30, 2000
Common Paid In Accumulated
Shares Amount Capital Deficit Total
------------------------------ --------------------------------- ----------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1998 8,207,670 $8,208 $143,866 ($389,333) ($237,259)
Shares issued for services
October 1, 1999 350,000 350 6,650 $7,000
Net Loss - 1999 (13,526) ($13,526)
------------------------------ --------------------------------- ----------------
Balance, December 31, 1999 8,557,670 $8,558 $150,516 ($402,859) ($243,785)
=================================================================== ================
Shares issued for services
March 31, 2000 3,260,000 3,260 61,940 $65,200
Shares issued for debt
March 31, 2000 200,000 200 238,585 $238,785
Net Loss - three months
ended March 31, 2000 (68,487) ($68,487)
Net Loss - three months
ended June 30, 2000 (60,627) ($60,627)
------------------------------ --------------------------------- ----------------
Balance, June 30, 2000 12,017,670 $12,018 $451,041 ($531,973) ($68,914)
=================================================================== ================
Net Loss - three months
ended September 30, 2000 (53,692) ($53,692)
------------------------------ --------------------------------- ----------------
Balance, September 30, 2000 12,017,670 12,018 451,041 (585,665) (122,606)
=================================================================== ================
</TABLE>
See accompanying notes
3
<PAGE>
<TABLE>
<CAPTION>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
STATEMENT OF CASH FLOWS
Three Months Ended September 30, 2000 and 1999
Three months Three months
ended ended
Sept 30, 2000 Sept 30, 1999
----------------- ----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($53,692) $0
Adjustments to reconcile net loss to net
cash (used) by operating activities:
Depreciation 173
Increase/decrease in current assets (11,334)
Increase/decrease in current liabilities 43,825
----------------- ----------------
NET CASH (USED) BY OPERATING ACTIVITIES: (21,028) 0
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets (3,451) 0
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in notes payable - short term 15,000 0
----------------- ----------------
NET INCREASE IN CASH ($9,479) $0
CASH, BEGINNING OF PERIOD (7,502) 0
----------------- ----------------
CASH, END OF PERIOD ($16,981) $0
================= ================
</TABLE>
See accompanying notes
4
<PAGE>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
Note A - Nature of Business and Summary of Significant Accounting Policies:
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History:
--------
The Company was organized under the laws of the State of Utah on August 3, 1983
under the name of Park Avenue, Inc. and on June 6, 1994 changed its name to
Electrical Generation Technology Corporation. The Company has been dormant for
the last three years but has signed two letters of intent to purchase assets of
a mortgage brokerage business and the assets of company with a fire retardant
product.
Basis of Accounting:
--------------------
It is the Company's policy to prepare its financial statements on the accrual
basis of accounting in conformity with generally accepted accounting principles.
Sales are recorded as income in the period in which they are earned and expenses
are recognized in the period in which the related liability is incurred.
Revenue Recognition:
--------------------
Revenue is recognized when work is performed and amount invoiced.
Cash and Cash Equivalents:
--------------------------
For purposes of the statement of cash flows, the Company considers all highly
liquid debt instruments with a maturity of three months or less to be cash
equivalents.
Loss per Common Share:
----------------------
Loss applicable to common share is based on the weighted average number of
shares of common stock outstanding during the year.
Accounting Estimates:
---------------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make certain estimates and
assumptions that affect the amount reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
Income Tax:
-----------
The Company is subject to the greater of federal income taxes computed under the
regular system or the alternative minimum tax (ATM) system. The Company uses an
asset and liability approach for the accounting and financial reporting of
income tax. Under this method, deferred tax assets and liabilities are
determined based on temporary differences between the financial carrying amounts
and the tax bases of assets and liabilities using enacted tax rates in effect in
the years in which the temporary differences are expected to reverse.
5
<PAGE>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2000
Note B - Stockholders' Equity:
------------------------------
Common Stock:
-------------
The Company is authorized to issue 50,000,000 common shares of stock at a par
value of $0.001 per share. These shares have full voting rights. At September
30, 2000 and December 31, 1999 there were 12,017,670 and 8,557,670 shares
outstanding respectively.
The Company has not paid a dividend to its shareholders.
Preferred Stock:
----------------
The Company is authorized to issue 20,000,000 preferred shares of stock at a par
value of $1.00. No preferred stock is outstanding.
Note C - Income Taxes:
----------------------
The Company had net operating losses totaling of $53,692 for the three months
ended September 30, 2000 and a net operating loss of $267,793 to carryforward
against operating income. No deferred tax asset has been recognized for the
operating loss as any valuation allowance would reduce the benefit to zero.
Note D - Going Concern:
-----------------------
The Company has minimal capital resources available to meet obligations expected
to be incurred given that it is a start up enterprise. Accordingly, the
Company's continued existence is dependent upon the successful operation of the
Company's plan of operations, selling common stock in the Company, or obtaining
financing. Unless these conditions among others are met, the Company may be
unable to continue as a going concern.
6
<PAGE>
Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
The Company has been trying to capitalize after laying the groundwork
for acquisitions as outlined in previous reports and filings.
Currently, the Company has a negative cash balance of compared with no
cash the same period the prior year. The prior year there were no operations and
the Company is raising capital by issuing convertible notes through a private
placement it started in April of 2000. The notes accrue interest at ten percent.
The Company believes that the money it raises in this private placement will
give it sufficient capital to allow it to start its plan of operations and get
into a revenue generating position and a positive cash flow.
The Company has started operations of its health personnel placement
service and has started to bill customers for these services. As of September
30, 2000, the Company employed three paid employees in its health personnel
placement division, with other employees paid as they perform work for the
customers of the Company. The Company believes that the foundation that has been
laid will provide the framework for a profitable operations from its health
personnel placement service.
7
<PAGE>
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.
8
<PAGE>
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 hereunto duly authorized.
Electrical Generation Technology Corporation
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(Registrant)
BY: /s/ Gary L. Cain
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Gary L. Cain
Its: President
DATE: November 13, 2000
Dallas, Texas
9
