FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarterly Period Ended March 31, 2000
Commission File Number 0-27283
THE HATHAWAY CORP.
(Exact name of registrant as specified in its charter)
Nevada 11-3499177
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
c/o Maureen Abato, 2732 East 21st Street, Brooklyn, NY 11235
(Address of principal executive offices)
(Zip Code)
(718) 769-4021
(Registrant's telephone number, including area code)
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
State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding as of April 10, 1999
Common Stock 1,015,000
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
THE HATHAWAY CORP.
[A Development Stage Company]
UNAUDITED CONDENSED FINANCIAL STATEMENTS
MARCH 31, 2000
2
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
CONTENTS
PAGE
Accountants' Review Report 4
Unaudited Condensed Balance Sheets,
March 31, 2000 and December 31, 1999 5
Unaudited Condensed Statements of Operations,
for the three months ended March 31, 2000
and 1999 and from inception on July 9, 1998
through March 31, 2000 6
Unaudited Condensed Statements of Cash Flows,
for the three months ended March 31, 2000 and
1999 and from inception on July 9, 1998
through March 31, 2000 7
Notes to Unaudited Condensed Financial Statements 8 - 11
3
<PAGE>
ACCOUNTANTS' REVIEW REPORT
Board of Directors
THE HATHAWAY CORP.
Brooklyn, NY
We have reviewed the accompanying condensed balance sheet of The
Hathaway Corp. [a development stage company] as of March 31, 2000
and the related condensed statements of operations and cash flows
for the three months ended March 31, 2000 and for the period from
inception on July 9, 1998 through March 31, 2000. These
financial statements are the responsibility of the Company's
management. All information included in these financial
statements is the representation of management of The Hathaway
Corp..
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A
review consists principally of inquiries of Company personnel and
analytical procedures applied to financial data. It is
substantially less in scope than an audit in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole. Accordingly, we do not express such an
opinion.
Based on our review, we are not aware of any material
modifications that should be made to the condensed financial
statements reviewed by us, in order for them to be in conformity
with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming
that The Hathaway Corp. will continue as a going concern. As
discussed in Note 7 to the financial statements, The Hathaway
Corp. has incurred losses since its inception and has not yet
been successful in establishing profitable operations, raising
substantial doubt about its ability to continue as a going
concern. Management's plans in regards to these matters are also
described in Note 7. The financial statements do not include any
adjustments that might result from the outcome of these
uncertainties.
/S/ Pritchett, Siler & Hardy, P.C.
PRITCHETT, SILER & HARDY, P.C.
May 16, 2000
Brooklyn, NY
4
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
CONDENSED BALANCE SHEETS
[Unaudited - See Accountants' Review Report]
ASSETS
March 31, December 31,
2000 1999
___________ ___________
CURRENT ASSETS:
Cash held by shareholder $ 4,133 $ 6,946
___________ ___________
Total Current Assets $ 4,133 $ 6,946
___________ ___________
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ - $ 807
___________ ___________
Total Current Liabilities - 807
___________ ___________
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value,
1,000,000 shares authorized,
no shares issued and outstanding - -
Common stock, $.001 par value,
25,000,000 shares authorized,
1,015,000 shares issued and
outstanding 1,015 1,015
Capital in excess of par value 13,320 13,320
Deficit accumulated during the
development stage (10,202) (8,196)
___________ ___________
Total Stockholders' Equity 4,133 6,196
___________ ___________
$ 4,133 $ 6,946
___________ ___________
Note: The balance sheet at December 31, 1999 was taken from the
audited financial statements at that date and condensed.
The accompanying notes are an integral part of these unaudited
financial statements.
5
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
CONDENSED STATEMENTS OF OPERATIONS
[Unaudited - See Accountants' Review Report]
From
For the Three Inception on
Months Ended July 9, 1998,
March 31, Through
_______________________ March 31,
2000 1999 2000
___________ __________ ___________
REVENUE, net $ - $ - $ 310
___________ __________ ___________
EXPENSES:
General and administrative 2,006 - 9,512
___________ __________ ___________
LOSS FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES (2,006) - (9,202)
CURRENT TAX EXPENSE - - -
DEFERRED TAX EXPENSE - - -
___________ __________ ___________
LOSS FROM CONTINUING
OPERATIONS BEFORE
CHANGE IN ACCOUNTING
PRINCIPLE (2,006) - (9,202)
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE - - (1,000)
__________ __________ ___________
NET LOSS $ (2,006) $ - $ (10,202)
__________ __________ ___________
LOSS PER COMMON SHARE:
Continuing operations $ (.00) $ - $ (.01)
Cumulative effect of change
in accounting principle - - (.00)
__________ __________ ___________
Net (Loss) Per Common Share $ (.00) $ - $ (.01)
__________ __________ ___________
The accompanying notes are an integral part of these unaudited
financial statements.
6
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
CONDENSED STATEMENTS OF CASH FLOWS
[Unaudited - See Accountants' Review Report]
For the Three From Inception
Months Ended on July 9,
March 31, 1998 Through
___________________ March 31,
2000 1999 2000
__________ _________ ___________
Cash Flows From Operating
Activities:
Net loss $ (2,006) $ - $ (10,202)
Adjustments to reconcile net
loss to net cash used by
operating activities:
Effect of change in
accounting principle - - 1,000
Change in assets and
liabilities:
(Decrease) in accounts
payable (807) - -
__________ _________ ___________
Net Cash (Used) by
Operating Activities (2,813) - (9,202)
__________ _________ ___________
Cash Flows From Investing
Activities:
Net Cash (Used) by
Investing Activities - - -
__________ _________ ___________
Cash Flows From Financing
Activities:
Proceeds from common stock issuance - - 15,000
Payment of stock offering costs - - (1,665)
__________ _________ ___________
Net Cash Provided by
Financing Activities - - 13,335
__________ _________ ___________
Net Increase (Decrease) in Cash (2,813) - 4,133
Cash at Beginning of Period 6,946 - -
__________ _________ ___________
Cash at End of Period $ 4,133 $ - $ 4,133
__________ _________ ___________
Supplemental Disclosures of
Cash Flow Information:
Cash paid during the
periods for:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
Supplemental Schedule of Noncash Investing and Financing
Activities:
For the three months ended March 31, 2000:
None.
For the three months ended March 31, 1999:
None
The accompanying notes are an integral part of these unaudited
financial statements.
7
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization - The Hathaway Corp. (the Company) was organized
under the laws of the State of Nevada on July 9,1998. It intends
to develop and operate a handyman business. The services will
include home repair, light construction, carpentry, furniture
moving, picture and mirror hanging, yard work, and other related
services. The Company has, at the present time, not paid any
dividends and any dividends that may be paid in the future will
depend upon the financial requirements of the Company and other
relevant factors. The Company has not generated significant
revenues and is considered a development stage company as defined
in Statement of Financial Accounting Standards (SFAS) No. 7.
Organization Costs - The Company has expensed its organization
costs, which reflect amounts expended to organize the Company, in
accordance with the Financial Accounting Standards Board's
Statement of Position 98-5.
Condensed Financial Statements - The accompanying financial
statements have been prepared by the Company without audit. In
the opinion of management, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the
financial position, results of operations and cash flows at March
31, 2000 and 1999 and for the periods then ended have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these condensed financial statements be read
in conjunction with the financial statements and notes thereto
included in the Company's December 31, 1999 audited financial
statements. The results of operations for the periods ended
March 31, 2000 are not necessarily indicative of the operating
results for the full year.
Income Taxes - The Company accounts for income taxes in
accordance with Statement of Financial Accounting Standards
(SFAS) No. 109, "Accounting for Income Taxes." This statement
requires an asset and liability approach for income taxes.
Advertising Costs - The Company expenses its advertising costs as
incurred. There were no advertising costs for the three months
ended March 31, 2000 and 1999.
Loss Per Share - The computation of loss per share is based on
the weighted average number of shares outstanding during the
periods presented in accordance with Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings Per Share". [See
Note 6]
Revenue Recognition - The Company recognizes revenue at the
completion of services performed.
Cash and Cash Equivalents - For purposes of the financial
statements, the Company considers all highly liquid debt
investments purchased with a maturity of three months or less to
be cash equivalents.
Accounting 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, the disclosures of
contingent assets and liabilities at the date of the financial
statements, and the reported amount of revenues and expenses
during the reported period. Actual results could differ from
those estimated.
8
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [CONTINUED]
Recently Enacted Accounting Standards - Statement of Financial
Accounting Standards (SFAS) No. 132, "Employer's Disclosure about
Pensions and Other Postretirement Benefits", SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities",
SFAS No. 134, "Accounting for Mortgage-Backed Securities.", SFAS
No. 135, "Rescission of FASB Statement No. 75 and Technical
Corrections" were SFAS No. 136, "Transfers of Assets to a not
for profit organization or charitable trust that raises or hold
contributions for others", and SFAS No. 137, "Accounting for
Derivative Instruments and Hedging Activities - deferral of the
effective date of FASB statement No. 133 ( an amendment of FASB
Statement No. 133.), " were recently issued. SFAS No. 132, 133,
134, 135, 136 and 137 have no current applicability to the Company
or their effect on the financial statements would not have
been significant.
NOTE 2 - CASH
The Company's attorney, who is also a shareholder, currently
holds cash belonging to the Company in the amount of $4,133, in a
non-interest bearing and non-insured account.
NOTE 3 - CAPITAL STOCK
Common Stock - On July 9, 1998, the Company issued 1,000,000
shares of its previously authorized, but unissued common stock to
its attorney for providing services valued at $1,000 related to
organizing the Company.
In July 1999, the Company issued 15,000 shares of its previously
authorized, but unissued common stock. Total proceeds from the
sale of stock amounted to $15,000 (or $1.00 per share). Offering
costs in the amount of $1,665 have been charged to additional
paid in capital.
NOTE 4 - RELATED PARTY TRANSACTIONS
Professional Services - A shareholder of the Company provides
professional, legal and managerial services to the Company.
Cash - A shareholder holds cash in the amount of $4,133
belonging to the Company in a non-interest-baring and non-insured
account.
NOTE 5- INCOME TAXES
The Company accounts for income taxes in accordance with
Statement of Financial Accounting Standards No. 109 "Accounting
for Income Taxes". SFAS No. 109 requires the Company to provide
a net deferred tax asset/liability equal to the expected future
tax benefit/expense of temporary reporting differences between
book and tax accounting methods and any available operating loss
or tax credit carryforwards. At March 31, 2000 the Company has
available unused operating loss carryforwards of approximately
$9,600, which may be applied against future taxable income and
which expire in various years through 2019.
9
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 5- INCOME TAXES [CONTINUED]
The amount of and ultimate realization of the benefits from the
operating loss carryforwards for income tax purposes is
dependent, in part, upon the tax laws in effect, the future
earnings of the Company, and other future events, the effects of
which cannot be determined. Because of the uncertainty
surrounding the realization of the loss carryforwards the Company
has established a valuation allowance equal to the tax effect of
the loss carryforwards and, therefore, no deferred tax asset has
been recognized for the loss carryforwards. The net deferred tax
assets are approximately $3,200 and $2,500 as of March 31, 2000
and December 31, 1999, respectively, with an offsetting valuation
allowance at each period end of the same amount resulting in a
change in the valuation allowance of approximately $700 for the
three months ended March 31, 2000.
NOTE 6 - LOSS PER SHARE
The following data show the amounts used in computing loss per
share for the periods:
For the Three From Inception
Months Ended on July 9,
March 31, 1998 Through
____________________ March 31,
2000 1999 2000
__________ _________ ___________
Loss from continuing
operations available
to common shareholders
(numerator) $ (2,006) $ - $ (9,202)
__________ _________ ___________
Cumulative effect of
change in accounting
principle (numerator) $ - $ - $ (1,000)
__________ _________ ___________
Weighted average number
of common shares outstanding
used in loss per share for
the period (denominator) 1,015,000 1,000,000 1,005,824
__________ _________ ___________
Dilutive loss per share was not presented, as the Company had no
common equivalent shares for all periods presented that would
affect the computation of diluted loss per share.
During 1999, the Company adopted Statement of Position 98-5 and
accordingly expensed its organization costs of $1,000. This has
been reflected as a cumulative effect of change in accounting
principle.
10
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 7 - GOING CONCERN
The accompanying financial statements have been prepared in
conformity with generally accepted accounting principles, which
contemplate continuation of the Company as a going concern.
However, the Company has incurred losses since its inception, and
has not yet been successful in establishing profitable
operations. These factors raise substantial doubt about the
ability of the Company to continue as a going concern. In this
regard, management is proposing to raise any necessary additional
funds not provided by operations through loans and/or through
additional sales of its common stock. There is no assurance that
the Company will be successful in raising this additional capital
or in achieving profitable operations. The financial statements
do not include any adjustments that might result from the outcome
of these uncertainties.
11
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
The Hathaway Corp. is a new company in the startup phase, engaged in the
business of performing handyman-type services for homes and businesses. Its
first advertisement yielded a large number or responses, but only $310 in
actual income. The Company believes that additional advertising in a larger
number of local papers may yield more business, so it intends to purchase
advertising in The Brooklyn Skyline and a related series of newspapers.
Management is also presently contemplating other possible ways to advertise
its services, including perhaps tabloid newspapers, but no decision has yet
been made in this regard. The Company has very limited assets. On the date
of this Report, it had assets of only $4,133, in the form of cash being held
by its attorney on the Company's behalf. The Company is also presently
contemplating a second offering of securities in order to raise additional
funds, but no decision has yet been made in this regard. In the meantime,
the Company will rely upon loans from its officers and principal shareholders
in order to keep its expenses paid until such time as it has achieved
sufficient income, or until such time as Management should decide to abandon
the Company's original business plan and seek merger or acquistion with an
existing business.
Forward-Looking Statements
When used in this Form 10-Q or other filings by the Company with the
Securities and Exchange Commission, in the Company's press releases or other
public or shareholder communications, or in oral statements made with the
approval of an authorized officer of the Company's executive officers, the
words or phrases "would be", "will allow", "intends to", "will likely result",
"are expected to", "will continue", "is anticipated", "estimate", "project",
or similar expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
The Company cautions readers not to place undue reliance on any forward-
looking statements, which speak only as of the date made, and advises readers
that forward-looking statements involve various risks and uncertainties. The
Company does not undertake, and specifically disclaims any obligation to
update any forward-looking statements to reflect occurrences or unanticipated
events or circumstances after the date of such statement.
12
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities and Use of Proceeds.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission of Matters to Vote of Securityholders.
None
Item 5. Other Information.
During May, 2000, all 15,000 free-trading shares were purchased
from the investors by Tim Abato, a shareholder. Subsequently, during May,
2000, the shares were purchased by Maureen Abato, who is a principal
shareholder of the Company. All transactions were made pursuant to Stock
Purchase Agreements, at a price of $1.00 per share.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None
(b) Reports on Form 8-K:
None
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed by the undersigned
thereunto duly authorized.
THE HATHAWAY CORP.
By: /S/ Dzidedi Ofori
Dzidedi Ofori, President
/S/ Dzidedi Ofori President May 15, 2000
/S/ Robert Capezzano Secretary-Treasurer May 15, 2000
13
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
financial statements for the three months ended March 31, 2000 and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 4,133
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,133
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,133
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 1,015
<OTHER-SE> 3,118
<TOTAL-LIABILITY-AND-EQUITY> 4,133
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,006
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,006)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,006)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,006)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
