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 September 30, 1999
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 21tstStreet, 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 BALANCE SHEETS
ASSETS
September 30, December 31,
1999 1998
___________ ___________
CURRENT ASSETS:
Cash held by shareholder $ 6,636 $ -
___________ ___________
Total Current Assets 6,636 -
___________ ___________
OTHER ASSETS:
Organizational costs, net - 1,000
___________ ___________
Total Other Assets - 1,000
___________ ___________
$ 6,636 $ 1,000
___________ ___________
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ - $ -
___________ ___________
Total Current Liabilities - -
___________ ___________
STOCKHOLDERS' EQUITY:
Common stock, $.001 par value,
25,000,000 shares authorized,
1,015,000 and 1,000,000
shares issued and outstanding, 1,015 1,000
respectively
Capital in excess of par value 13,320 -
Deficit accumulated during the
development stage (7,699) -
___________ ___________
Total Stockholders' Equity 6,636 1,000
___________ ___________
$ 6,636 $ 1,000
___________ ___________
NOTE: The balance sheet at December 31, 1998 was taken from the audited
financial statements at that date and condensed.
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
For the Three For the Nine From Inception
Months Ended Months Ended on July 9,
September 30, September 30, 1998 Through
_________________ _________________ September 30,
1999 1998 1999 1998 1999
________ ________ ________ ________ ______________
REVENUE $ - $ - $ - $ - $ -
________ ________ ________ ________ ______________
EXPENSES:
General and administrative 5,050 - 6,699 - 6,699
________ ________ ________ ________ ______________
LOSS FROM OPERATIONS BEFORE
BEFORE INCOME TAXES (5,050) - (6,699) - (6,699)
CURRENT TAX EXPENSE - - - - -
DEFERRED TAX EXPENSE - - - - -
________ ________ ________ ________ ______________
LOSS FROM CONTINUING
OPERATIONS BEFORE
CHANGE IN ACCOUNTING
PRINCIPLE (5,050) - (6,699) - (6,699)
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
PRINCIPLE (1,000) - (1,000) - (1,000)
________ ________ ________ ________ ______________
NET LOSS $(6,050) $ - $(7,699) $ - $ (7,699)
________ ________ ________ ________ ______________
LOSS PER COMMON SHARE:
Continuing operations $ (.01) $ - $ (.01) $ - $ (.01)
Cumulative effect of
change in accounting
principle (.00) - (.00) - (.00)
________ ________ ________ ________ ______________
NET LOSS PER COMMON SHARE $ (.01) $ - $ (.01) $ - $ (.01)
________ ________ ________ ________ ______________
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
For the Nine From Inception
Months Ended on July 9,
September 30, 1998 Through
___________________ September 30,
1999 1998 1999
_________ _________ ______________
Cash Flows (Used) by Operating Activities:
Net loss $ (7,699) $ - $ (7,699)
Adjustments to reconcile net loss to
net cash used by operating activities:
Effect of change in accounting
principle 1,000 - 1,000
Changes in assets and liabilities:
- - -
_________ _________ ______________
Net Cash (Used) by Operating
Activities (6,699) - (6,699)
_________ _________ ______________
Cash Flows (Used) by Investing Activities:
Net Cash (Used) by Investing
Activities - - -
_________ _________ ______________
Cash Flows Provided by Financing Activities:
Proceeds from common stock issuance 15,000 - 15,000
Payment of stock offering costs (1,665) - (1,665)
_________ _________ ______________
Net Cash Provided by Financing
Activities 13,335 - 13,335
_________ _________ ______________
Net Increase in Cash 6,636 - 6,636
Cash at Beginning of Period - - -
_________ _________ ______________
Cash at End of Period $ 6,636 $ - $ 6,636
_________ _________ ______________
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
Supplemental Schedule of Noncash Investing and Financing Activities:
For the Period Ended September 30, 1999
The Company expensed its organizational costs of $1,000 in accordance with
Statement of Position 98-5.
For the Period Ended September 30, 1998
Incorporation expenses of $1,000 were paid by a shareholder in exchange for
1,000,000 shares of common stock.
The accompanying notes are an integral part of these financial statements.
4
<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.
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
September 30, 1999 and for all the periods presented 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, 1998
audited financial statements. The results of operations for the periods ended
September 30, 1999 are not necessarily indicative of the operating results for
the full year.
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.
Advertising Costs - The Company expenses its advertising costs as incurred.
Loss Per Share - The computation of loss per share is based on the weighted
average number of shares outstanding during the period presented in accordance
with Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings Per
Share". [See Note 7]
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.
NOTE 2 - CASH
The Company's attorney (a significant shareholder) currently holds cash in the
amount of $6,636, belonging to the Company in a non-interest bearing and non-
insured account.
5
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 3 - DEVELOPMENT STAGE COMPANY
The Company was formed with a specific business plan. However, the
possibility exists that the Company could expend virtually all of its working
capital in a relatively short time period and may not be successful in
establishing on-going profitable operations.
NOTE 4 - 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 related to the organization of the Company valued at $1,000.
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 netted against the proceeds of the offering in capital in excess of par
value.
NOTE 5 - RELATED PARTY TRANSACTIONS
Professional Services - A shareholder of the Company provides professional,
legal and managerial services to the Company.
NOTE 6- 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 September 30, 1999, the
Company has available unused operating loss carryforwards of approximately
$7,000, which may be applied against future taxable income and which expire in
2019.
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 $2,400 and $0 as
of September 30, 1999 and December 31, 1998, respectively, with an offsetting
valuation allowance at each period end of the same amount resulting in a
change in the valuation allowance of approximately $2,400 for the nine months
ended September 30, 1999.
6
<PAGE>
THE HATHAWAY CORP.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 7 - LOSS PER SHARE
The following data show the amounts used in computing loss per share for the
periods ended September 30, 1999 and 1998:
For the Nine From Inception
Months Ended on July 9,
September 30, 1998 Through
___________________ September 30,
1999 1998 1999
_________ _________ ______________
Loss from continuing operations
available to common shareholders
(numerator) $ (7,699) $ - $ (7,699)
_________ _________ ______________
Weighted average number of
common shares outstanding used
in loss per share for the period
(denominator) 1,005,000 1,000,000 1,003,047
_________ _________ ______________
7
<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 appeared in nine Brooklyn newspapers and yielded a large
number of responses, but as of September 30, 1999 the Company had no income.
However, 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. As of September 30, 1999,
it had cash assets of only $6,636, being held by its attorney (a significant
shareholder) 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. If the Company's
increased advertising fails to yield sufficient earnings, Management may
consider allowing to Company to become a public "shell" company, in which
case it would seek acquisition or merger with an existing operating 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.
8
<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.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None
(b) Reports on Form 8-K:
None.
9
<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.
By: /S/ Dzidedi Ofori
Dzidedi Ofori, President
/S/ Dzidedi Ofori President April 9, 2000
/S/ Robert Capezzano Secretary-Treas. April 9, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted
from financial statements for the nine months ended September
30, 1999 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 6,636
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 6,636
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,636
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 1,015
<OTHER-SE> 5,621
<TOTAL-LIABILITY-AND-EQUITY> 6,636
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> (6,699)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (6,699)
<INCOME-TAX> 0
<INCOME-CONTINUING> (6,699)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> (1,000)
<NET-INCOME> (7,699)
<EPS-BASIC> (.01)
<EPS-DILUTED> (.01)
</TABLE>
