SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 ending March 31, 2000
Commission File No. 0000-28901
Geneti Corp.
A Nevada corporation 86-0972845
(I.R.S. Employer Identification Number)
2102 N. Donner Ave., Tucson, Arizona 85749
Registrant's telephone number, including area code:
(520) 577-1516
Check whether the issuer (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. [X]Yes [ ] No
State the number of shares outstanding of each of the
issuer's classes of common equity, as of the latest
practicable date:
Class Outstanding as of August 1, 2000
$.001 Par Value Common Stock 1,000,000 SHARES
PART I
This Report may contain certain "forward-looking" statements
as such term is defined in the Private Securities Litigation
Reform Act of 1995 or by the Securities and Exchange
Commission in its rules, regulations and/or releases, which
represent our expectations or beliefs, including but not
limited to, statements concerning our operations, economic
performance, financial condition, growth and acquisition
strategies, investments, and future operational plans. For
this purpose, any statements contained herein that are not
statements of historical fact may be deemed to be forward-
looking statements. Without limiting the generality of the
foregoing, words such as "may," "will," "expect," "believe,"
"anticipate," "intend," "could," "estimate," "might," or
"continue" or the negative or other variations thereof or
comparable terminology are intended to identify forward-
looking statements. These statements by their nature
involve substantial risks and uncertainties, certain of
which are beyond our control, and actual results may differ
materially depending on a variety of important facts,
including but not limited to those risk factors discussed
herein below.
Item 1. FINANCIAL STATEMENTS.
INDEPENDENT ACCOUNTANT'S REPORT
Geneti Corp.
(A Development Stage Company)
We have reviewed the accompanying balance sheets of
Geneti Corp. (a development stage company) as of March 31,
2000 and December 31, 1999, and the related statements of
operations for the three months, and cash flows for the
three month period ended March 31, 2000 and 1999. These
financial statements are the responsibility of the Company's
management.
We conducted our review in accordance with standards
established by the American Institute of Certified Public
Accountants. A review of interim financial information
consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially
less in scope than an audit conducted in accordance with
generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the
financial statement 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 accompanying
financial statements for them to be in conformity with
generally accepted accounting principles.
Respectfully submitted
/s/ Robison, Hill & Co.
Certified Public Accountants
Salt Lake City, Utah
September 7, 2000
F-1
<TABLE>
GENETI CORP.
(A Development Stage Company)
BALANCE SHEETS
<CAPTION>
March 31 December 31
2000 1999
<S> <C> <C>
Assets: $ - $ -
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ - $ -
Total Liabilities $ - $ -
Shareholders' Equity:
Common Stock, Par Value $.001
Authorized 100,000,000 shares
Issued 1,000,000 shares at March 31, 2000
and December 31, 1999 1,000 1,000
Paid-In Capital 450 450
Retained Deficit (1,300) (1,300)
Deficit Accumulated During the
Development State (150) (150)
Total Stockholders' Equity $ - $ -
Total Liabilities and
Shareholders' Equity $ - $ -
</TABLE>
F-2
See accompanying notes and accountants' report.
<TABLE>
GENETI CORP.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
<CAPTION>
Cumulative
since October
20, 1999
For the three months ended inception of
ended March 31, development
2000 1999 stage
<S> <C> <C> <C>
Revenues $ - $ - $ -
Expenses
General & Administrative - - (150)
Net Loss $ - $ - $ (150)
Basic & Diluted loss per share
$ - $ -
</TABLE>
F-3
See accompanying notes and accountants' report.
<TABLE>
GENETI CORP.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
<CAPTION>
Cumulative
Since October 20
1999
For the three months ended Inception of
ended March 31, Development
2000 1999 Stage
<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net Loss $ - $ - $ (150)
Increase (Decrease) in
Accounts Payable - - (300)
Net Cash Used in
Operating activities - - (450)
CASH FLOWS FROM
INVESTING ACTIVITIES:
Net Cash provided by
Investing activities - - -
CASH FLOWS FROM
FINANCING ACTIVITIES:
Capital contributed
By shareholder - - 450
Net Cash provided by
Financing activities - - 450
Net (Decrease) in
Cash and Cash Equivalents - - -
Cash and Cash Equivalents
At Beginning of Period - - -
Cash and Cash Equivalents
At End of Period $ - $ - $ -
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest $ - $ - $ -
Franchise and income taxes $ - $ - $400
</TABLE>
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AN
FINANCING ACTIVIITES: None
F-4
See accompanying notes and accountants' report.
GENETI CORP.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
This summary of accounting policies for Geneti
Corp. (a development stage company) is presented to
assist in understanding the Company's financial
statements. The accounting policies conform to
generally accepted accounting principles and have been
consistently applied in the preparation of the
financial statements.
The unaudited financial statements as of March 31,
2000 and for the three months then ended reflect, in
the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to
fairly state the financial position and results of
operations for the three months. Operating results for
interim periods are not necessarily indicative of the
results which can be expected for full years.
Organization and Basis of Presentation
The Company was incorporated under the laws of the
State of Nevada on July 11, 1996. The Company ceased
all operating activities during the period from July
22, 1996 to October 20, 1999 and was considered
dormant. Since October 20, 1999, the Company is in the
development stage, and has not commenced planned
principal operations.
Nature of Business
The company has no products or services as of
March 31, 2000. The Company was organized as a vehicle
to seek merger or acquisition candidates. The Company
intends to acquire interests in various business
opportunities, which in the opinion of management will
provide a profit to the Company
Cash and Cash Equivalents
For purposes of the statement of cash flows, the
Company considers all highly liquid debt instruments
purchased with a maturity of three months or less to be
cash equivalents to the extent the funds are not being
held for investment purposes.
Pervasiveness of Estimates
The preparation of financial statements in
conformity with generally accepted accounting
principles required 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 revenues and expenses during
the reporting period. Actual results could differ from
those estimates.
Loss per Share
The reconciliations of the numerators and
denominators of the basic loss per share computations
are as follows:
<TABLE>
<CAPTION>
Per-Share
Income Shares Amount
(Numerator) (Denominator)
For the three months ended March 31, 2000:
<S> <C> <C> <C>
Basic Loss per Share
Loss to common shareholders
$ - 1,000,000 $ -
For the three months ended March 31, 1999:
Basic Loss per Share
Loss to common shareholders
$ - 1,000,000 $ -
</TABLE>
The effect of outstanding common stock equivalents
would be anti-dilutive for March 31, 2000 and 1999 and
are thus not considered.
Reclassification
Certain reclassifications have been made in the
2000 and 1999 financial statements to conform with the
March 31, 2000 presentation.
NOTE 2 - INCOME TAXES
As of March 31, 2000, the Company had a net
operating loss carryforward for income tax reporting
purposes of approximately $2,000 that may be offset
against future taxable income through 2011. Current
tax laws limit the amount of loss available to be
offset against future income when a substantial change
in ownership occurs. Therefore, the amount available
to offset future taxable income will be limited. No
tax benefit has been reported in the financial
statements, because the Company believes there is a 50%
or greater chance the carryforwards will expire unused.
Accordingly, the potential tax benefits of the loss
carryforwards are offset by a valuation allowance of
the same amount.
NOTE 3 - DEVELOPMENT STAGE COMPANY
The Company has not begun principal operations and
as is common with a development stage company, the
Company has had recurring losses during its development
stage.
NOTE 4 - COMMITMENTS
As of March 31, 2000 all activities of the Company
have been conducted by corporate officers from either
their homes or business offices. Currently, there are
no outstanding debts owed by the Company for the use of
these facilities and there are no commitments for
future use of the facilitates.
NOTE 5 - STOCK SPLIT
On October 20, 1999 the Board of Directors
authorized 1,000 to 1 stock split, changes the
authorized number of shares to 100,000,000 shares and
the par value to $.001 for the Company's common stock.
As a result of the split, 999,000 shares were issued.
All references in the accompanying financial statements
to the number of common stock and per-share amounts for
1999 and 1998 have been restated to reflect the stock
split.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION.
This Quarterly Report contains certain forward-looking
statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, which
are intended to be covered by the safe harbors created
thereby. Investors are cautioned that all forward-
looking statements involve risks and uncertainty,
including without limitation, the ability of the
Company to continue its expansion strategy, changes in
costs of raw materials, labor, and employee benefits,
as well as general market conditions, competition and
pricing. Although the Company believes that the
assumptions underlying the forward-looking statements
contained herein are reasonable, any of the assumptions
could be inaccurate, and therefore, there can be no
assurance that the forward-looking statements included
in this Quarterly Report will prove to be accurate. In
light of the significant uncertainties inherent in the
forward-looking statements including herein, the
inclusion of such information should not be regarded as
are presentation by the Company or any other person
that the objectives and plans of the Company will be
achieved.
As used herein the term "Company" refers to Geneti
Corp., a Nevada corporation and its predecessors,
unless the context indicates otherwise. The Company is
currently a shell company whose purpose is to acquire
operations through an acquisition or merger or to begin
its own start-up business.
The Company is in the process of attempting to identify
and acquire a favorable business opportunity. The
Company has reviewed and evaluated a number of business
ventures for possible acquisition or participation by
the Company. The Company has not entered into any
agreement, nor does it have any commitment or
understanding to enter into or become engaged in a
transaction as of the date of this filing. The Company
continues to investigate, review, and evaluate business
opportunities as they become available and will seek to
acquire or become engaged in business opportunities at
such time as specific opportunities warrant.
RESULTS OF OPERATIONS
The Company had no sales or sales revenues for the
period ended March 31, 2000 or 1999 because it is a
shell company that has not had any business operations
for the past three years.
The Company had no costs of sales revenues for the
period ended March 31, 2000 or 1999 because it is a
shell company that has not had any business operations
for the past three years. The Company had no general
and administrative expenses for the period ended March
31, 2000.
The Company recorded net income loss of $0 for the
three months ended March 31, 2000 compared to $0 loss
for the comparable period in 1999.
CAPITAL RESOURCES AND LIQUIDITY
At March 31, 2000, the Company had total current assets
of $0 and total assets of $0 as compared to $0 current
assets and $0 total assets at December 31, 1999. The
Company had a net working capital deficit of $0 at
March 31, 2000 with a net working capital deficit of $0
at December 31, 1999.
PART II
Item 1. LEGAL PROCEEDINGS.
Not Applicable.
Item 2. CHANGES IN SECURITIES.
Not Applicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
Not Applicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS.
There have been no matter submitted to a vote of security
holders for the period covered by this report.
Item 5. OTHER INFORMATION
Not Applicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits. Exhibits required to be attached by Item 601
of Regulation S-B are listed in the following index to
Exhibits.
Index to Exhibits.
Exhibit 27 Financial Data Schedule
______
(b) Reports on Form 8-K. No reports on Form 8-K were filed
during the period covered by this Form 10-QSB.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Geneti Corp.
DATE: September 18, 2000
Daniel L. Hodges, President and Director
On behalf of the Board of Directors.
Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities
and on the dates indicated.
Date: September 18, 2000 By:
/s/
Daniel L. Hodges, President, Secretary and Sole Director
GENETI CORP.
2
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