UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED: APRIL 30, 2000
COMMISSION FILE NUMBER: 000-29663
RADIANT ENERGY CORPORATION
(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
CANADA
(STATE OR OTHER JURISDICTION OF INCORPORATION)
N/A
(IRS EMPLOYER IDENTIFICATION NUMBER)
40 CENTRE DRIVE, ORCHARD PARK, NY 14127
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(716) 662-0022
(ISSUER'S TELEPHONE NUMBER)
STATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES
OF COMMON EQUITY, AS OF THE (LATEST PRACTICABLE DATE) MAY 16, 2000
VOTING COMMON STOCK: 13,472,401
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT: (CHECK ONE): YES___ ; NO _X_
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL INFORMATION
RADIANT ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS - UNAUDITED
APRIL 30, 2000 AND OCTOBER 31, 1999
APRIL 30, OCTOBER 31,
2000 1999
ASSETS
Current
Cash and term deposits 2,856,402 1,981,232
Accounts receivable 35,176 -
Inventory 13,912 13,912
Deposits and prepaid expenses 24,412 1,203,316
------------------------------------------------------------------------------
Total current assets 2,929,902 3,198,460
Deferred Charges 22,934 67,809
Patents 342,587 357,634
Capital 595,603 663,336
------------------------------------------------------------------------------
3,891,026 4,287,239
------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Accounts payable and accrued liabilities 619,653 815,021
Current portion of long-term debt 68,800 68,484
------------------------------------------------------------------------------
Total current liabilities 688,453 883,505
------------------------------------------------------------------------------
Deferred income taxes 4,402 4,402
Long-term debt 340,967 871,808
Shareholders' equity
Share capital 10,034,957 8,721,039
Cumulative comprehensive income 5,380 5,380
Deficit (7,183,133) (6,198,895)
------------------------------------------------------------------------------
Total shareholder's equity 2,857,204 2,527,524
------------------------------------------------------------------------------
3,891,026 4,287,239
------------------------------------------------------------------------------
<PAGE>
RADIANT ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATION - UNAUDITED
SIX MONTHS ENDED APRIL 30, 2000 AND 1999
APRIL 30, APRIL 30,
1999 2000
REVENUE
Sales 3,428,117 350
Cost of sales 3,139,668 2,439
----------------------------------------------------------------------------
288,449 (2,089)
Interest Income 66,298 -
----------------------------------------------------------------------------
354,747 (2,089)
----------------------------------------------------------------------------
EXPENSES
Marketing 419,997 154,348
General and administrative 645,134 258,298
Research and product development 152,859 82,414
Depreciation and amortization 116,260 109,806
Interest 4,735 15,846
----------------------------------------------------------------------------
1,338,985 620,712
----------------------------------------------------------------------------
Loss for the period (984,238) (622,801)
----------------------------------------------------------------------------
Basic loss per common share (0.08) (0.08)
----------------------------------------------------------------------------
Diluted loss per common share (0.08) (0.08)
----------------------------------------------------------------------------
Weighted average number of shares 12,692,351 8,161,066
----------------------------------------------------------------------------
<PAGE>
RADIANT ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED
THREE MONTHS ENDED APRIL 30, 2000 AND 1999
APRIL 30, APRIL 30,
2000 1999
REVENUE
Sales 21,857 350
Cost of sales 272,297 2,439
-----------------------------------------------------------------------------
(250,440) (2,089)
Interest income 45,422 -
-----------------------------------------------------------------------------
(205,018) (2,089)
-----------------------------------------------------------------------------
EXPENSES
Marketing 269,828 112,258
General and administrative 366,353 151,332
Research and product development 104,539 42,550
Depreciation and amortization 50,190 55,028
Interest (6,310) 9,871
-----------------------------------------------------------------------------
784,600 371,039
-----------------------------------------------------------------------------
Loss for the period (989,618) (373,128)
-----------------------------------------------------------------------------
Basic loss per common share (0.08) (0.05)
-----------------------------------------------------------------------------
Diluted loss per common share (0.08) (0.05)
-----------------------------------------------------------------------------
Weighted average number of shares 13,193,761 8,177,126
-----------------------------------------------------------------------------
<PAGE>
RADIANT ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW - UNAUDITED
SIX MONTHS ENDED APRIL 30, 2000 AND 1999
APRIL 30, APRIL 30,
2000 1999
OPERATING ACTIVITIES
Loss for the year (984,238) (622,801)
Add items not affecting cash
Depreciation and amortization 116,260 113,800
Deferred taxes - 7,902
--------------------------------------------------------------------------------
(867,978) (501,099)
Change in non-cash working capital items relating to
operation activities
Accounts receivable (35,176) 30,000
Deposits and prepaid expenses 1,178,904 23,385
Accounts payable and accrued liabilities (195,368) 135,057
--------------------------------------------------------------------------------
Cash provided by (used in) operating activities 80,382 (312,657)
--------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of capital assets (28,034) (15,443)
--------------------------------------------------------------------------------
Cash used in investing activities (28,034) (15,443)
--------------------------------------------------------------------------------
FINANCING ACTIVITIES
Issuance (repayment) of long-term debt (59,175) 276,876
Conversion of convertible secured debentures (471,350) -
Decrease in deferred charges 39,429 -
Issuance of common shares 1,313,918 119,218
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Cash provided by financing activities 822,822 396,094
--------------------------------------------------------------------------------
Effect of exchange rate changes on cash and equivalents - (52,175)
--------------------------------------------------------------------------------
Net increase in cash and term deposits 875,170 15,819
Cash (overdraft) and term deposits, beginning of period 1,981,232 (4,578)
--------------------------------------------------------------------------------
Cash and term deposits, end of period 2,856,402 11,241
--------------------------------------------------------------------------------
Cash interest paid 27,089 300
--------------------------------------------------------------------------------
<PAGE>
RADIANT ENERGY CORPORATION AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW - UNAUDITED
THREE MONTHS ENDED APRIL 30, 2000 AND 1999
<TABLE>
<CAPTION>
APRIL 30, APRIL 30,
2000 2000
<S> <C> <C>
OPERATING ACTIVITIES
Loss for the year (989,618) (373,128)
Add items not affecting cash
Depreciation and amortization 50,190 58,485
Deferred taxes - 4,522
-------------------------------------------------------------------------------------
(939,428) (310,121)
Change in non-cash working capital items relating to
operation activities
Accounts receivable (35,176) -
Inventory - (29)
Deposits and prepaid expenses 11,945 8,967
Accounts payable and accrued liabilities (314,514) 91,002
-------------------------------------------------------------------------------------
Cash used in operating activities (1,277,173) (210,181)
-------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of capital assets (15,116) (14,634)
-------------------------------------------------------------------------------------
Cash used in investing activities (15,116) (14,634)
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FINANCING ACTIVITIES
Issuance (repayment) of long-term debt (4,604) 197,960
Conversion of convertible secured debentures (296,606) -
Decrease in deferred charges 25,958 -
Issuance of common shares 515,661 65,494
-------------------------------------------------------------------------------------
Cash provided by financing activities 240,409 263,454
-------------------------------------------------------------------------------------
Effect of exchange rate changes on cash and equivalents - (34,185)
-------------------------------------------------------------------------------------
Net increase (decrease) in cash and term deposits (1,051,880) 4,454
Cash and term deposits, beginning of period 3,908,282 6,787
-------------------------------------------------------------------------------------
Cash and term deposits, end of period 2,856,402 11,241
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Cash interest paid 278 102
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</TABLE>
<PAGE>
RADIANT ENERGY CORPORATION AND SUBSIDIARY
Consolidated Statements of Stockholders' Equity
<TABLE>
<CAPTION>
Common Comprehensive Accumulated Retained Total
stock income other earnings $
$ $ comprehensive $
income
$
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
Balance, October 31, 1998 5,243,320 9,922 (4,827,339) 425,903
------------------------------------------------------------------------------------------------------
Net loss - (1,371,556) - (1,371,556) (1,371,556)
Foreign currency translation, net
of tax - (4,542) (4,542) - (4,542)
Comprehensive income - (1,376,098) - - -
Proceeds on issue of shares 3,477,719 - - - 3,477,719
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Balance, October 31, 1999 8,721,039 5,380 (6,198,895) 2,527,524
------------------------------------------------------------------------------------------------------
Net loss - (984,238) - (984,238) (984,238)
Foreign currency translation, net
of tax - - - - -
Comprehensive income - (984,238) - - -
Proceeds on issue of shares 1,313,918 - - - 1,313,918
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Balance, April 30, 2000 10,034,957 5,380 (7,183,133) 2,857,204
------------------------------------------------------------------------------------------------------
</TABLE>
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
The accompanying unaudited consolidated condensed financial statements of
Radiant Energy Corporation (the "Company") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting only of normal recurring accruals) considered necessary
for a fair presentation of the results for the interim period ended April 30,
2000, have been included. Operating results for the six-month period ended April
30, 2000, are not necessarily indicative of the results that may be expected for
the full year. All capitalized terms used in these notes to consolidated
condensed financial statements that are not defined herein have the meanings
given to them in such consolidated condensed financial statements and notes to
consolidated condensed financial statements.
ELIMINATION OF INTERCOMPANY BALANCES
All material intercompany balances and transactions have been eliminated.
CHANGES IN FUNCTIONAL CURRENCY
The company has historically measured and presented its financial statements in
Canadian dollars. Effective October 31, 1999, as a result of the company's
increased economic activity in the U.S. as demonstrated by its increasingly high
level of sales activity in U.S. dollars and significance of U.S. dollar
denominated assets to the company's operations, the U.S. dollar has become the
functional currency of the company's operations. Effective the same date, the
U.S. dollar has been adopted as the reporting currency.
U.S. GAAP
These financial statements have been prepared in accordance with U.S. "generally
accepted accounting principles."
MATERIAL CONTRACT
On December 20, 1999 the Company sold it's Newark Facility to a wholly owned
subsidiary of Boeing Capital, MDFC, for $3,383,700. The facility cost $2,911,905
to construct. Contemporaneously with the sale, the Company leased the Facility
for a period of eight years at a monthly rental of approximately $49,000 plus
10% of the monthly deicing revenue.
SHARE CAPITAL
<TABLE>
<CAPTION>
Shares authorized
Unlimited number of common shares
-------------------------------------------------------------------------------------------------------------
Issued and outstanding Number Stated
of shares capital
$
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Outstanding at October 31, 1999 12,027,934 8,721,039
-------------------------------------------------------------------------------------------------------------
Issued upon conversion of 7% debentures - net of costs 603,060 431,922
Issued upon conversion of stock options 509,625 600,909
Issued upon conversion of stock options - Boeing Capital Services Corporation 304,739 281,087
-------------------------------------------------------------------------------------------------------------
1,417,424 1,313,918
-------------------------------------------------------------------------------------------------------------
Outstanding at April 30, 2000 13,445,358 10,034,957
-------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Following is information about the computation of earnings per share data for
the periods ended April 30, 2000 and April 30, 1999.
<TABLE>
<CAPTION>
Per-Share
Numerator Denominator Amounts
Six months Ended April 30, 2000
<S> <C> <C> <C>
Net loss $ (984,238)
Basic earnings per share, income available to
common shareholders $ (984,238) 12,692,351 $ (0.08)
----------- ---------- --------
Six months Ended April 30, 1999
Net loss $ (622,801)
Basic earnings per share, income available to
common shareholders $ (622,801) 8,161,066 $ (0.08)
----------- --------- --------
</TABLE>
At April 30, 2000 options for the purchase of 1,116,551 shares were outstanding
and at April 30, 2000 the Company had 7% secured convertible debentures
outstanding that were convertible to 349,492 shares. At April 30, 1999 options
to purchase 995,883 were outstanding and at April 30, 1999 the Company had 6%
secured convertible debentures outstanding that were convertible to 105,840
shares. The options and shares to be issued on conversion of convertible
debentures were not included in the computations of diluted earnings per share
for April 30, 2000 and April 30, 1999 as their inclusion would have an
anti-dilutive impact as a result of losses being reported for these periods.
