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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 AND EXCHANGE ACT OF 1934
For the Quarter ended June 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period to
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Commission file number - 000-28787
Micro Laboratories, Inc.
Exact name of Registrant as specified in its charter)
NEVADA 05-049-4587
(State or other (Primary Standard Industrial (I.R.S. Employer
jurisdictions Classification Code Number) Identification number)
of incorporation
or organization
29 Lakeside Drive, Johnston, Rhode Island 02919
(Address of principal executive offices) (Zip Code)
Telephone: (401) 949-3562
(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 and Exchange
Act of 1934 during the preceding twelve months (or such shorter period that
the Registrant was required to file such reports), and (2) has been subject
to file such filing requirements for the past thirty days.
Yes x No
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Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report:
11,338,000 Shares of Common Stock ($.001 par value)
(Title of Class)
Transitional Small Business Disclosure Format (check one):
Yes No x
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Micro Laboratories, Inc.
PART I: Financial Information
ITEM 1 - Financial statements
ITEM 2 - Management's' discussion and analysis of
financial condition and results of operations
PART II: Other Information
ITEM 6 - Exhibits and Reports on Form 8-K
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PART I
Item 1. Financial Statements:
MICRO LABORATORIES, INC.
(A Development Stage Company)
Balance Sheet
June 30, 2000 and 1999
ASSETS
2000 1999
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Current Assets
Cash $ 0 $65,628
Investory 27,040 4,375
Prepaid expenses 20,033 21,539
Loans and exchanges 27,665 3,215
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Total Current Assets 74,737 94,757
Property and Equipment
Machinery and equipment 47,070 44,524
Computer software 11,723 140,755
Furniture and fixtures 3,664 3,664
Leasehold improvements 2,357 2,357
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Less accumulated depreciation (17,791) 14,070)
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Net Property and Equipment 47,023 177,230
Other Assets
Deposits 600 600
Formulas and trademarks
(net of accum. Amort.) 60,600 75,921
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Total Other Assets 61,200 76,521
Total Assets $182,960 $348,508
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LIABILITIES AND EQUITY
Current Liabilities
Accounts payable-trade $261,562 $12,667
Due to related parties 141,296 45,000
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Total Current Liabilities 402,858 57,667
Stockholders' Equity
Common Stock 11,338 5,553
Additional paid-in
-capital 1,531,345 1,170,600
Accumulated deficit (1,762,581) (885,312)
Total Stockholders
Equity (219,898) 290,841
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Total Liabilities and Equity $182,960 $348,508
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MICRO LABORATORIES INC.
(A Development Stage Company)
Statement of Income
For the Tree Months Ended June 30, 2000 and 1999
2000 1999
Revenue
Sales $ 0 $ 172
Operating Expenses
Purchases 0 4,941
Freight 0 0
Advertising 0 26,886
Depreciation expense 1,559 0
Insurance expense 1,264 0
Amortization expense 0 0
Auto 528 1,434
Bank service charge 0 870
Bookkeeping service 2,000 3,301
Consulting 0 52,767
Education and training 0 0
Legal and accounting 10,000 13,791
Fullfilment expenses 0 50,000
Office expense 0 0
Dues and subscription 0 925
Postage 0 295
Printing 686 0
Professional fees 0 4,365
Rent 0 15,300
Meal and entertainment 0 630
Repairs and maintenance 0 1,759
Research and development expense 0 88,897
Office supplies 0 3,077
Service expense 0 250
Telephone 1,663 7,934
Travel 0 100
Utilities 125 936
Miscellaneous 0 0
Payroll and payroll taxes 0 0
Licenses 200 0
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Total Operating Expenses 18,025 278,458
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Loss from Operations (18,025) 278,458
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Other Income
Gain on sale of assets 0 0
Interest income 0 0
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Total Other Income 0 0
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Loss before Income Taxes (18,025) (276,605)
Provision for Income Taxes
Provision for state
income taxes 0 0
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Total Provision for
Income Taxes 0 0
Net Loss $(18,025) $(276,605)
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Net Loss per common share ($.001)
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MICRO LABORATORIES, INC.
(A Development State Company)
Statement of Cash Flows
For the Three Months Ended June 30, 2000
<TABLE>
<CAPTION>
2000 1999
<S> <C> <C>
Cash flows from operating activities:
Net loss $(18,025) $(276,605)
Adjustments to reconcile net income to
Net cash used for operating activities:
Depreciation and amortization 1,559 0
(Increase) decrease in assets
Deposits 0 4,000
Prepaid expenses 0 3,939
Inventory 0 7,779
Loans/exchanges 0 23,860
Increase (decrease in liabilities:
Accounts payable 0 (33,079)
Notes payable 16,466 (64,030)
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Net cash used by operating activities 18,025 (57,531)
Investing activities:
Acquisition of intangible assets 0 (10,271)
Gain on sale of asset 0 8,653
Acquisition of property and equipment (net) 0 (11,517)
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Net cash used for investing
activities 0 (13,135)
Net increase (decrease) in cash during the period 0 (347,271)
Cash balance, beginning of period 0 412,899
Cash balance, end of period $ 0 $65,628
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</TABLE>
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Note 1. In the opinion of management of Micro Laboratories, Inc.,
the unaudited financial statements of Micro Laboratories, Inc. for the
interim period shown, include all adjustments, necessary for a fair
presentation of the financial position at June 30, 2000, and the
results of operations and cash flows for the period then ended. The
results of operations for the interim periods shown may not be
indicative of the results that may be expected for the fiscal year.
These statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Form 10-K for
the year March 31, 2000.
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Micro Laboratories, Inc.
PART I (cont.)
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations:
Trends and Uncertainties. Demand for Micro's products will be
dependent on, among other things, general economic conditions, which
are cyclical in nature. Inasmuch as a major portion of the
Corporation's activities is the receipt of revenues from the sale of
its products, Micro's business operations may be adversely affected by
its competitors and prolonged recessionary periods.
Micro is entering a phase of conversion from a Development Stage
Corporation to an Operational Corporation. Agreements have been
reached to provide key personnel in the areas of marketing and sales.
An agreement has been reached with three large distributors to include
the west coast, mid west and New England. Preliminary market research
was conducted to arrive at the flavorings for the Micro SprayT product
line. Micro sent a representative to the National Association of
Chain Drug Stores (NACDS) trade convention in Philadelphia, PA also
the packaging show in Chicago Ill. The Corporation plans to use a
"target" marketing approach for the distribution of its Micro SprayT
product line.
Capital and Source of Liquidity. Micro currently has no material
commitments for capital expenditures.
For the three months ended June 30, 2000, Micro did not pursue any
investing activities.
For the three months ended June 30, 1999, Micro acquired property and
equipment (net) of $11,517, a gain on the sale of asset of $7,653 and
acquired intangible assets of $10,271. For the three months ended
June 30, 1999, Micro had net cash used for investing activities of
$(13,135).
For the three months ended June 30, 2000 and 1999, Micro did not
pursue any financing activities.
On a long term basis, liquidity is dependent on commencement of
operations as discussed above, receipt of revenues, additional
infusions of capital and debt financing. Micro believes that
additional capital and debt financing in the short term will allow
Micro to increase its marketing and sales efforts and become a fully
operational Corporation thereafter resulting in increased revenue and
greater liquidity in the long term. However, there can be no
assurance that Micro will be able to obtain additional equity or debt
financing in the future, if at all.
Results of Operations.
Micro is accurately classified as a "development stage Corporation"
and as such has conducted startup and development operations that
include:
completed photo shoots, created Corporation logos, brochures, sales
literature, product labels and packaging design, UPCs
prepared the product line of six items for distribution roll out
completed negotiations with three large distributors to include
west coast, mid west, and New England to represent and sell the
companies product lines to national chains
Micro has not received any material revenues since inception.
For the three months ended June 30, 2000, Micro had a net loss of
$18,025. Operating expenses for the three months ended June 2000
were $18,025 and consisted of insurance of $1,559, amortization
expense of $1,264, bank service charge of $528, bookkeeping service of
$2,000, fullfilment expenses of $10,000, professional fees of $686,
telephone of $1,663, utilities of 125 and licenses of $200.
For the three months ended June 30, 1999, Micro had a net loss of
$278,458 which consisted of purchases of $4,941, advertising of
$26,886, auto of $1,434, bank service charge of $870, bookkeeping
service of 3,301, consulting of $52,767, legal and accounting of
$13,791, fullfilment expenses of $50,000, dues and subscription of
$925, postage of $295, professional fees of $4,365, rent of $15,300,
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meal and entertainment of $630, repairs and maintenance of $1,759,
research and development of $88,897, office supplies of $3,077,
service expense of $250, telephone of $7,934, travel of $100 and
utilities of $936.
Plan of Operation. Micro is in the development stage and has not
conducted any significant operations to date or received any material
operating revenues. Micro may experience problems; delays, expenses
and difficulties sometimes encountered by an enterprise in Micro's
stage of development, many of which are beyond Micro's control. These
include, but are not limited to, unanticipated problems relating to
additional costs and expenses that may exceed current estimates and
competition.
Micro is not delinquent in any of its obligations even though Micro
has generated limited operating revenues. The Corporation intends to
market its products and services utilizing cash made available from
the private sale of its securities and operations. Micro's management
is of the opinion that the proceeds of the sales of its securities and
future revenues will be sufficient to pay its expenses for the next
twelve months.
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MICRO LABORATORIES, INC.
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits (numbered in accordance with Item 601 of
Regulation S-K)
None
(b) Reports on Form 8-K
None
SIGNATURE
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.
/s/ Robert Thistle
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Robert Thistle, President
August 28, 2000
