SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended Commission File Number
----------------- ----------------------
June 30, 2000 000-26855
GENUS INTERNATIONAL CORPORATION
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(Exact name of registrant as specified in its charter)
Wyoming 74-2960356
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(State of incorporation) (I.R.S. Employer
Identification No.)
1237 South Val Vista Drive, Mesa, Arizona 85204
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (480)807-1235
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 the filing
requirements for at least the past 90 days.
Yes X No
----- ------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
1,632,971 common shares as of June 30, 2000
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<TABLE>
<CAPTION>
GENUS INTERNATIONAL CORPORATION
(A Development Stage Company)
BALANCE SHEET
(UNAUDITED)
June 30, 2000 December 31, 1999
<S> <C> <C>
CURRENT ASSETS:
TOTAL CURRENT ASSETS - -
TOTAL ASSETS --------------- -----------
0 0
=============== ===========
LIABILITIES AND STOCKHOLDERS EQUITY
LIABILITIES:
Accounts Payable and Accrued Expenses 411
Loans Payable 30,120 30,120
--------------- -----------
TOTAL LIABILITIES 30,531 30,120
STOCKHOLDERS EQUITY:
Common stock - no par value, 50,000,000 shares
authorized, 1,632,971 shares issued & outstanding 0 0
Accumulated Deficit (30,531) (30,120)
--------------- -----------
TOTAL STOCKHOLDERS EQUITY (30,531) (30,120)
--------------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 0 0
=============== ===========
</TABLE>
F-1
<PAGE>
<TABLE>
<CAPTION>
GENUS INTERNATIONAL CORPORATION
(A Development Stage Company)
INCOME STATEMENT
(UNAUDITED)
Six months ended Three months ended
June 30, June 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Sales
Cost of Sales
--------- ---------- ---------- ----------
Gross Profit 0 0 0 0
Selling and Administrative 411 25 0 0
Other Income (Expenses) Net
--------- ---------- ---------- ----------
Net Income (Loss) Before Taxes (411) 0 0
Provision for Income Taxes
--------- ---------- ---------- ----------
Net Income (Loss) (411) 25 0 0
========= ========== ========== ==========
Net Income (Loss) Per Share (.00) ($.00) 0 0
=========== ========== ========== ==========
Average Number of Shares Outstanding 1,278,480 1,278,480 1,632,971 1,278,480
------------ ---------- ---------- ----------
</TABLE>
F-2
<PAGE>
<TABLE>
<CAPTION>
GENUS INTERNATIONAL CORPORATION
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(UNAUDITED)
Six months ended Three months ended
June 30, June 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income (Loss) (411) (25) 0 0
Changes in assets and liabilities
Increase (Decrease) in accounts payable (411) (25) 0 0
--------------- ----------- ---------- -----------
CASH PROVIDED (USED) BY OPERATING ACTIVITIES 0 0 0 0
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CASH FLOW FROM FINANCING ACTIVITIES:
Issuance of Common Stock - - - -
Additional Paid in Capital - - - -
--------------- ----------- ---------- ----------
CASH PROVIDED (USED) BY FINANCING ACTIVITIES - - - -
NET INCREASE (DECREASE) IN CASH - - - -
CASH AT BEGINNING OF YEAR - - - -
--------------- ----------- ---------- ----------
CASH AT END OF YEAR - - - -
=============== =========== ========== ==========
</TABLE>
F-3
<PAGE>
GENUS INTERNATIONAL CORPORATION
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES TO STOCKHOLDERS' EQUITY
JUNE 30, 1999
Common stock
Number of Accumulated
Shares Amount (deficit) Total
Balance-January 1, 1999 1,278,480 - $ (28,477) $(28,477)
Net Loss - - ( 1,643) ( 1,643)
Shares issued - - - -
---------- --------- ----------- ----------
Balance-December 31, 1999 1,278,480 $ - $ (30,120) $(30,120)
========== ========= =========== ==========
Shares issued
June 20, 2000 354,491 - - -
Net Loss at June 30, 2000 - - (411) (411)
---------- --------- ----------- ----------
Balance-June 30, 2000 1,632,971 $ 0.00 (30,531) (30,531)
F-4
<PAGE>
GENUS INTERNATIONAL CORP.
(A Development Stage Company)
June 30, 2000
(Unaudited)
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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Organization
------------
The Company was incorporated on April 17, 1997, in the state of
Wyoming. The Company is in the development stages and was organized for the
purpose of general investing. The Company's fiscal year end is December 31. The
financial statements are presented on the accrual basis of accounting.
In the second quarter of 2000, the Company acquired 100% of the issued and
outstanding common stock of Phillips 44, Inc., a Wyoming corporation, and
thereby redomiciled the company but retained the name Genus International
Corporation.
The accompanying financial statements have been prepared on the going
concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The company's continuation as a
going concern is dependent on its ability to generate sufficient cash flows to
meet its obligation on a timely basis, to raise additional capital as may be
required, and ultimately to attain successful operations. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
Basis of Presentation
---------------------
The Company is primarily engaged in computer technology, emphasizing smart
card technology. The authorized capital stock of the corporation is 50,000,000
shares of common stock at $.001 par value. There are no preferred stock
authorized or issued.
Cash and Cash Equivalent
------------------------
The Company considers all highly-liquid debt instruments, purchased with an
original maturity of three months or less, to be cash equivalents.
Revenue Recognition
-------------------
Revenue is recognized when earned and expenses are recognized when they
occur.
Use of Estimates
----------------
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 revenue and expenses during the reporting
period. Actual results could differ from those estimates.
<PAGE>
GENUS INTERNATIONAL CORPORATION
(A Development Stage Company)
June 30, 2000
(Unaudited)
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
-------------------------------------------------
Net Loss Per Share
------------------
Net loss per share is based on the weighted average number of common
shares and common shares equivalents outstanding during the period.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2000 COMPARED TO
SAME PERIOD ENDED JUNE 30, 1999.
The Company had no revenues in the period in 2000 or 1999. The Company was
developing its business plan during the period and completing a merger with
Phillips 44, Inc. The Company had expenses of $411 in the period in 2000 and $25
in 1999. The net loss was ($411) in 2000 and ($25) in 1999.
The loss per share was negligible for the period in 2000 and 1999.
RESULTS OF OPERATIONS FOR THE QUARTER ENDED JUNE 30, 2000 COMPARED TO THE SAME
QUARTER IN 1999.
The Company had no revenues in the quarter in 2000 or 1999. The company
incurred no expenses in the quarter in 2000 or 1999 and had no profit or loss.
There was not profit or loss per share for the quarter in 2000 or 1999.
The Company expects to generate losses in the future quarters as it
attempts to start up and develop its business plan. Those losses could be
significant and may exceed several hundred thousand dollars per quarter. There
is no assurance that a profitable business may ever be achieved by the Company.
LIQUIDITY AND CAPITAL RESOURCES
The Company has no liquid assets or cash. Its sole capital resources are it
shares of stock with which to make private placements.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Reports on Form 8-K were made for the period for which
this report is filed. June 22, 2000.
<PAGE>
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.
Date: August 22, 2000
GENUS INTERNATIONAL CORPORATION
/s/ William A. Young, Sr.
-----------------------------
William A. Young, Sr., President
