UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-QSB
(x ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2000
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the transition period from to
Commission File Number 000-28181
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ORANCO, INC.
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(Exact name of registrant as specified in charter)
Nevada 87-0574491
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number
1981 East 4800 So, Suite 100, Salt Lake City, Utah 84117
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(Address of principal executive offices) (Zip Code)
801-272-9294
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Registrant's telephone number, including area code
_____________________________________________________________
(Former name, former address, and former fiscal year, if changed since last
report.)
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), Yes [ x ] No [ ] and (2) has been subject to
such filing requirements for the past 90 days. Yes [x ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date.
Class Outstanding as of March 31, 2000
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Common Stock, $0.001 1,394,950 shares
<PAGE>
INDEX
Page
Number
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PART I.
ITEM 1.
Balance Sheets 3
March 31, 2000 and December 31, 1999
Statements of Operations
For the three months ended March 31, 2000 and 1999 4
and the period from June 16, 1977 to March 31, 2000
Statements of Cash Flows
For the three months ended March 31, 2000 and 1999 5
and the period from June 16, 977 to March 31, 2000
Notes to Financial Statements 6
ITEM 2.
Plan of Operations 8
PART II.
Signatures 9
<PAGE>
ORANCO, INC.
( DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
MARCH 31, 2000 AND DECEMBER 31, 1999
<TABLE>
<CAPTION>
UNAUDITED
MAR 31, DEC 31,
2000 1999
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,779 $ 27,829
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Total Current Assets. . . . . . . . . . . . . . . . . $ 27,779 $ 27,829
=============== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable. . . . . . . . . . . . . . . . . . . . $ 1,174 $ 500
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Total Current Liabilities . . . . . . . . . . . . . . . 1,174 500
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STOCKHOLDERS' EQUITY
Common stock
100,000,000 shares authorized, at $0.001 par
value; 1,394,950 shares issued and outstanding. 1,395 1,395
Capital in excess of par value. . . . . . . . . . . . . 65,273 65,273
Deficit accumulated during the development stage. . (40,063) (39,339)
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Total Stockholders' Equity (deficiency) . . . . . . . . 27,779 27,829
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$ - $ -
=============== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ORANCO, INC.
( DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000, AND 1999 AND
THE PERIOD JUNE 16, 1977 (DATE OF INCEPTION) TO MARCH 31, 2000
<TABLE>
<CAPTION>
THREE MONTHS JUNE 16, 1977
MAR 31, MAR 31, (DATE OF INCEPTION) TO
2000 1999 MAR 31, 2000
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<S> <C> <C> <C>
REVENUES . . . . . . $ - $ - $ -
EXPENSES . . . . . . 724 - 40,063
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NET LOSS . . . . . . $ (724) $ - $ (40,063)
=============== ============ ========================
NET LOSS PER COMMON
SHARE
Basic. . . . . . . . $ - $ -
--------------- ------------
AVERAGE OUTSTANDING
SHARES
Basic . . . . . 985,000 694,950
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</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ORANCO, INC.
(DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000, AND 1999
AND THE PERIOD JUNE 16, 1977 (DATE OF INCEPTION) TO MARCH 31, 2000
<TABLE>
<CAPTION>
THREE MONTHS June 16, 1977
MAR 31, MAR 31, (DATE OF INCEPTION)
2000 1999 TO MAR 31, 2000
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<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES
Net loss . . . . . . . . . . . . . . . . $ (724) $ - $ (40,063)
Adjustments to reconcile net loss to
net cash provided by operating
activities
Changes in accounts payable. . . . 674 1,174
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Net Cash Used in Operations. . . . . . . (50) - (38,889)
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CASH FLOWS FROM INVESTING
ACTIVITIES . . . . . . . . . . . . . . . - - -
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CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of common stock
- - 66,668
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Net Increase (Decrease) in Cash. . . . . (50) -
Cash at Beginning of Period. . . . . . . 27,829 - -
--------------- ------------ --------------------
Cash at End of Period. . . . . . . . . . $ 27,779 $ - $ 27,779
=============== ============ ====================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ORANCO, INC.
( DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on June 16,
1977 with authorized common stock of 100,0000 shares at a par value of $0.25.
On June 10, 1999 the authorized capital stock was increased to 100,000,000
shares with a par value of $0.001 in connection with a forward stock split of
ten new shares for each outstanding share.
This report has been prepared showing after stock split shares with a par value
of $.001 from inception. The Company is in the development stage and has been
engaged in the activity of seeking developmental mining properties and has
been inactive since 1992.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Statement Of Information Furnished
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In the opinion of management the accompanying unaudited financial statements
contain all adjustments (consisting only of normal and recurring accruals)
necessary to present fairly the financial position as of March 31, 2000, and the
results of operations and cash flows for the three month period ended March 31,
2000 and 1999. These results have been determined on the basis of generally
accepted accounting principles and practices applied consistently with those
used in the preparation of the Company's Annual Report and the Form 10 for the
fiscal year ended December 31, 1999.
Accounting Methods
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The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
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The Company has not adopted a policy regarding payment of dividends.
Income Taxes
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On March 31, 2000, the Company had a net operating loss carry forward of
$40,063. The tax benefit from the loss carry forward has been fully offset by
a valuation reserve because the use of the future tax benefit is undeterminable
since the Company has no operations. The net operating loss will expire
starting in 2007 through 2121.
Basic and Diluted Net Income (Loss) Per Share
- ----------------------------------------------------
Basic net income (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding. Diluted net income (loss) per
share amounts are computed using the weighted average number of common shares
and common equivalent shares outstanding as if shares had been issued on the
exercise of the preferred share rights unless the exercise becomes antidilutive
and then only the basic per share amounts are shown in the report.
Financial Instruments
- ----------------------
The carrying amounts of financial instruments, including accounts payable, are
considered by management to be their estimated fair values.
<PAGE>
ORANCO, INC.
( DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Estimates and Assumptions
- ---------------------------
Management uses estimates and assumptions in preparing financial statements in
accordance with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of the assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could vary from the estimates that were assumed in
preparing these financial statements.
Comprehensive Income
- ---------------------
The Company adopted Statement of Financial Accounting Standards No. 130. The
adoption of this standard had no impact on the total stockholder's equity on
February 29, 1999.
Recent Accounting Pronouncements
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The Company does not expect that the adoption of other recent accounting
pronouncements will
have a material impact on its financial statements.
3. RELATED PARTY TRANSACTIONS
The statement of changes in stockholder's equity shows 1,394,500 shares of
common stock outstanding of which 700,000 shares were issued to related
parties.
4. GOING CONCERN
The Company will need additional working capital to be successful in its planned
operations.
Continuation of the Company as a going concern is dependent upon obtaining
additional working capital for any future planned activity and the management of
the Company has developed a strategy, which it believes will accomplish this
objective through equity funding, and long term financing, which will enable
the Company to operate for the coming year.
There can be no assurance that the Company can be successful in this effort.
5. SUBSEQUENT EVENTS
On January 11, 2000 the Company adopted a Nonqualified Key Man Stock Option Plan
which provides for the granting of stock options to key employees, consultants,
officers and directors of the Company. The number of shares subject to the plan
cannot exceed 500,000 and the exercise price cannot be less than 100% of the
fair value of the shares on the option date.
On January 11, 2000 250,000 options were granted to purchase 250,000 shares of
common stock of the Company to an officer and a consultant. Additional options
were granted to purchase 125,000 shares to an individual in exchange for his
agreement to join the Board of Directors by February 10, 2000
<PAGE>
ITEM 2. PLAN OF OPERATIONS
The Company's management is seeking and intends to acquire interests in various
business opportunities which, in the opinion of management, will provide a
profit to the Company but it does not have the working capital to be successful
in this effort.
Continuation of the Company as a going concern is dependent upon obtaining the
working capital to provide working capital for its planned activity. The
management of the Company has developed a strategy, which they believe can
obtain the needed working capital through additional equity funding and long
term debt which will enable the Company to be successful in its planned efforts.
Liquidity and Capital Resources
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The Company will need additional working capital to finance its planned
activity.
Results of Operations
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The Company has had no operations during this reporting period.
PART II - SIGNATURES
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 there unto duly authorized.
ORANCO, INC.
[Registrant]
Dated May 5 , 2000 By /S/ Claudio Gianascio
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Claudio Gianacio, President
