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: 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 March 31, 2000:
262,100
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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 9
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<CAPTION>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
BALANCE SHEETS
March 31, 2000 and December 31, 1999
ASSETS
Mar 31, 2000 Dec 31, 1999
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<S> <C> <C>
CURRENT ASSETS:
Cash $11,742 $0
Advances 1,000
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Total current assets 12,742 0
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TOTAL ASSETS $12,742 $0
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LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable 6,029 5,000
Accounts payable - related party 9,954
Short term notes payable 15,000
Advances from shareholders 228,831
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Total Current Liabilities $21,029 $243,785
STOCKHOLDERS' EQUITY
Common stock, $0.001 par value, 6,125,527 shares
issued and outstanding at December 31, 1999 and 1998 11,893 8,433
Additional paid-in-capital 451,041 150,516
Accumulated Deficit (471,221) (402,734)
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Total Stockholders' Equity (8,287) (243,785)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 12,742 0
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See accompanying notes
1
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<CAPTION>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
STATEMENT OF OPERATIONS
Three Months Ended March 31, 2000 and 1999
Three months Three months
ended ended
Mar 31, 2000 Mar 31, 1999
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<S> <C> <C>
REVENUE: $ -0- $ -0-
OPERATING EXPENSE:
Amortization 14
Consulting 65,200
General & administrative 3,287
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Total Operating Expense 68,487 14
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NET LOSS ($68,487) ($14)
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Weighted average shares outstanding 8,093,108 8,082,670
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LOSS PER SHARE ($0.01) ($0.00)
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See accompanying notes
2
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<CAPTION>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
STATEMENT OF STOCKHOLDERS' EQUITY AND ACCUMULATED DEFICIT
Period from December 31, 1998 to March 31, 2000
Com mon Paid In Accumulated
Shares Amount Capital Deficit Total
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<S> <C> <C> <C> <C> <C>
Balance, December 31, 1988 8,082,670 $8,083 $143,866 ($389,208) ($237,259)
Shares issued for services
October 1, 1999 350,000 350 6,650 $7,000
Net Loss - 1999 (13,526) ($13,526)
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Balance, December 31, 1989 8,432,670 $8,433 $150,516 ($402,734) ($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 (68,487) ($68,487)
ended March 31, 2000
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Balance, March 31, 2000 11,892,670 $11,893 $451,041 ($471,221) ($8,287)
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See accompanying notes
3
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<TABLE>
<CAPTION>
ELECTRICAL GENERATION TECHNOLOGY CORPORATION
STATEMENT OF CASH FLOWS
Three Months Ended March 31, 2000 and 1999
Three months Three months
ended ended
Mar 31, 2000 Mar 31, 1999
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ($68,487) ($14)
Adjustments to reconcile net loss to net
cash (used) by operating activities:
Amortization 14
Accounts payable 1,029
Stock issued for services 64,200
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NET CASH (USED) BY OPERATING ACTIVITIES: (3,258) 0
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in notes payable - short term 15,000 0
CASH FLOWS FROM FINANCING ACTIVITIES:
Sale of common stock 0
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NET INCREASE IN CASH $11,742 $0
CASH, BEGINNING OF PERIOD -0- -0-
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CASH, END OF PERIOD $11,742 $0
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See accompanying notes
4
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ELECTRICAL GENERATION TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
Note A - Nature of Business and Summary of Significant Accounting Policies:
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.
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ELECTRICAL GENERATION TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
March 31, 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 March 31,
2000 and December 31, 1999 there were 11,892,670 and 8,432,670 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 $68,487 for the three months
ended March 31, 2000 and a net operating loss of 153,474 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.
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Business:
EGT has designed and patented the Hydrogen Ignition Power Plant, a
solar powered system which produces large quantities of electrical power while
reducing the CO 2 , emissions normally found in coal-fired electrical plants,
resulting in a cleaner environment. EGT' s work in electronics and logic control
systems led to new developments in the technology now known as optoelectronics -
the marriage of light and electricity. The marketing of this technology has not
begun.
Today EGT maintains this patent and continues work on additional
designs and patents related to the Hydrogen Ignition Power Plant. Additionally,
EGT has directed its focus towards mergers and acquisitions of suitable
companies which demonstrate long term profitability and a seasoned management
team. Through consolidation and expansion of these companies EGT intends to
maximize net profits providing for a higher rate of return to stockholders.
Following are descriptions of the current acquisitions contemplated by the
Registrant:
Manage America Mortgage Services, L. L. C. will design, construct and service a
communication infrastructure, linking computer hardware and software. The
initial function of this network will be to facilitate the processing and
funding of mortgage loans by a network of associate loan officers located
throughout the county as well as direct loans made to borrowers via the
internet. Manage America's interactive virtual banker / personal banker
structure will insure uniqueness and personalized service not currently
available in today's market place of so called interactive banking.
NO FLAME, L. L. C.
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No Flame currently provides a business opportunity for applicators and
distributors of a patented flame retardant.
Last year, more than 9,000 people perished in home fires. And untold
numbers of family albums, heirlooms, original art, valuable records and
cherished pets were lost. Regrettably, every one of those fires could have been
prevented with No Flame, a patented colorless, odorless, non-toxic,
non-carcinogenic, non-allergenic, skin-safe liquid that flame-proofs any porous
surface to which it is applied. That means vulnerable areas of a home, such as
floors, ceilings, joists, framing-studs, and roofs can be sprayed with No Flame
during construction. In fact, anything treated with No Flame will not catch
fire.
FUTURE ACQUISITIONS:
In keeping with EGT's focus towards mergers and acquisitions EGT is
currently working within several industries where EGT is interested in acquiring
a presence.
EGT is currently engaged in acquisition discussions with a company who
has been in the industrial tire re-manufacturing and dismantling business. For
more than 20 years this company has perfected this process and developed a
prestigious client list. This company is a natural integration
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with EGT's patented Hydrogen Ignition Power Plant. The merger of these two
processes offers the opportunity for several new patents as well as nationwide
expansion through company or franchised operations.
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 no liquid assets. The only liquidity the Registrant will have
will be the sale of stock or from the issuance of stock for an ongoing business.
The Registrant has minimal expenses and no commitments.
Capital Resources
The Registrant's has no capital resources but is planning an offering to sell
stock to raise capital for ovehead expenses while it pursues acquiring other
companies. As of this date, the only capital the Registrant was able to generate
was through short term
The Registrant is planning a private placement offering for the second 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.
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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.
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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.
Electrical Generation Technology Corporation
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(Registrant)
BY: /s/ Gary Cain
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Gary Cain
Its: President
DATE: May 10, 2000
Rockwall, Texas
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