SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) of the
SECURITIES ACT OF 1934
For the Quarterly period ended September 30, 2000
Commission File Number 0-30233
MICRON SOLUTIONS, INC.
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(Exact Name of Registrant as Specified in Its Charter)
Nevada 88-0577075
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(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
8361 E. Evans Road, Suite 105, Scottsdale, AZ 85260
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (480) 607-7243
Common Stock, Par Value $0.001 Per Share
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(Title of Class)
Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
equity, as of the latest practicable date.
Common Stock, Par
Value $0.001 Per Share 1,982,600
---------------------- ---------------
( Title of Class) (Number of Shares
Outstanding on
September 30, 2000
and on Dec. 19, 2000)
Traditional Small Business Disclosure Format (Check One):
[X] Yes [ ] No
<PAGE>
ITEM 1. Financial Statements
MICRON SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2000
F-i
<PAGE>
MICRON SOLUTIONS, INC.
TABLE OF CONTENTS
Page
No.
----
ACCOUNTANT'S AUDIT REPORT 1
FINANCIAL STATEMENTS
Balance Sheets 2
Statements of Operations 3
Statements of Changes in Stockholder's Equity 4-5
Statements of Cash Flows 6
NOTES TO FINANCIAL STATEMENTS 7-8
F-ii
<PAGE>
DALE MCGHIE Town & Country Plaza
CERTIFIED PUBLIC ACCOUNTANT 1539 Vassar St. Reno, Nevada 89502
Tel: 702-332-7744
Fax: 702-332-7747
To the Board of Directors
Micron Solutions, Inc.
Reno, NV
ACCOUNTANT'S AUDIT REPORT
I have reviewed the accompanying balance sheets of Micron Solutions, Inc. (a
development stage company) for the three and nine months ended September 30,
2000, and 1999, and the related statements of operations, changes in
stockholders' equity and cash flows for the nine months then ended, in
accordance with standards established by the American Institute of Certified
Public Accountants. All information included in these financial statements is
representation of the management of Micron Solutions Inc.
A review consists principally of inquires of Company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an
audit in accordance with generally accepted auditing standards, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly I do not express such an opinion.
.
Based on my review, I am unaware of any material modifications that should be
made to the accompanying financial statements to be in conformity with generally
accepted auditing standards
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern, as discussed in Note 2 of the
financial statements. The Company is currently dormant and has no productive
assets. The financial statements do not include any adjustments that might
result in a negative outcome as a result of this uncertainty.
The financial statements for the years ended December 31, 1999, were audited by
me and I expressed an unqualified opinion on them in my report dated January 15,
2000, but I have not performed any auditing procedures since that date.
By: /s/ W. Dale Mc Ghie
-----------------------
W. Dale Mc Ghie CPA
Reno, Nevada
December 1, 2000
F-1
<PAGE>
MICRON SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND YEAR END
ASSETS
30-Sep-00 12/31/99
(UNAUDITED) AUDITED
-------- --------
CURRENT ASSETS
Cash 4,911 7,160
PROPERTY AND EQUIPMENT
Website 9,177 980
Computer 4,335 --
Less Accumulated Depreciation (1,260) --
-------- --------
$ 17,163 $ 8,140
======== ========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable -- --
-------- --------
STOCKHOLDER'S EQUITY
Common Stock; $0.001 par
value, 100,000,000 shares
authorized; issued and outstanding
1982600 Shares at Sept. 30, 2000 1,983 1,983
Paid in Capital 46,146 29,396
Deficit accumulated during
the development stage (30,966) (23,239)
-------- --------
Total equity 17,163 8,140
-------- --------
$ 17,163 $ 8,140
======== ========
The accompany notes are an integral part of these financial statements
F-2
<PAGE>
MICRON SOLUTIONS, INC.
( A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
3 months 3 mo 9 months 9 months Inception at
ended ended ended ended Development
30-Sep-00 30-Sep-99 9/30/00 9/30/99 Stage to
(Unaudited) (unaudited) (Unaudited) (Unaudited) 9/30/00
-------- ----- -------- -------- --------
<S> <C> <C> <C> <C> <C>
REVENUE $ -- $ -- $ -- $ -- $ --
-------- ----- -------- -------- --------
OPERATING COSTS AND
EXPENSES
Legal & Professional 1,206 -- 5,683 -- 16,737
Organizational Costs -- -- -- 12,026 12,026
Bank Fees 21 21 63 181 223
Credit Card Fees 75 -- 217 68 217
Depreciation 589 -- 1260 -- 1,260
Office Supplies -- -- 69 -- 69
Postage -- -- 300 -- 300
Printing -- -- 134 -- 134
-------- ----- -------- -------- --------
Net Income (Loss) $ (1,891) $ (21) $ (7,726) $(25,522) $(30,966)
======== ===== ======== ======== ========
(Loss) per share NIL NIL NIL NIL NIL
======== ===== ======== ======== ========
</TABLE>
The accompany notes are an integral part of these financial statements
F-3
<PAGE>
MICRON SOLUTIONS, INC.
(A DEVELOPMENTAL STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
AND FROM INCEPTION TO SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
Deficit
Accumulation
Common Stocks Paid in Retained through
Issued Amount Capital Earnings 9/30/00
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Balance December 31, 1995 4,908,002 24,540 1,921,691 (2,486,325) --
Write off Liabilities
note 1 -- -- -- 540,094 --
Reverse stock split of
five shares surrendered
for one share issued (3,925,402) (23,559) 23,559 -- --
Quasi - reorganization -
note 1 -- -- (1,946,231) 1,946,231 --
Net (Loss) for the year
ending December 31, 1996 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Balance December 31 1996 982,600 981 (981) -- --
Issue of shares in Micron 1,000 1 9,175 -- --
Solutions, Inc for cost
Issue of shares in
Shillelagh for services,
no value 1,000,000 1,000 (1,000) -- --
Net (Loss) for the year
ending December 31, 1997 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Balance December 31, 1997 1,983,600 1,983 7194 -- --
Contributed Capital -- -- 4649 -- --
Net (loss) for the year
ending December 31 1998 -- -- -- -- (68)
----------- ----------- ----------- ----------- -----------
Balance December 31, 1998 1,983,600 $ 1,983 $ 12,043 $ -- $ (68)
----------- ----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements
F-4
<PAGE>
MICRON SOLUTIONS, INC.
(A DEVELOPMENTS STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
AND FROM INCEPTION TO SEPTEMBER 30, 2000
CONTINUED
<TABLE>
<CAPTION>
Deficit
Accumulation
Common Stocks Paid ion Retained sincer inception
Issued Amount Capital Earnings to 6/30/00
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Contributed Capital -- -- 17,353 -- --
Net (loss) for the
Year Ended December 31
1999 -- -- -- -- (23,171)
--------- --------- --------- --------- ---------
Balance December 31
1999 1,982,600 $ 1,983 29,396 -- $ (23,239)
--------- --------- --------- --------- ---------
Contributed Capital -- -- 16,750 -- --
Net (loss) for the
9 months ended 9/30/00 -- -- -- -- $ (7,727)
--------- --------- --------- --------- ---------
Baalance September 2000
(Unaudited) 1,982,600 $ 1,983 $ 46,146 $-- $ (30,966)
========= ========= ========= ========= =========
</TABLE>
The accompanying Notes are an integral paret of these financial statements
F-5
<PAGE>
MICRON SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
AND FROM INCEPTION TO SEPTEMBER 30, 2000
Inception at
development
30-Sep 30-Sep stage to
2000 1999 30-Sep-00
-------- -------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (7,727) $ (63) $(30,966)
Adjustments to reconcile net loss
to net cash used by operating
activities:-
Depreciation 1,260 -- $ 1,260
Net (Increase) Decrease in
Organizational Costs - Note 1
Purchases of Equipmemnt (12,532) -- (13,512)
Increase (Decrease)
in Accounts Payable -- -- --
-------- -------- --------
Net Cash provided (used) by
operating Activities (18,999) (63) (43,218)
-------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Sale of Capital Stock and -- -- 1,983
amounts contributed to capital 16,750 -- 46,146
-------- -------- --------
Net cash provided by
Financing Activities 16,750 -- 48,129
-------- -------- --------
Increase in Cash (2,249) -- 4,911
Cash and Cash Equivalents,
beginning of year 7,160 (68) --
-------- -------- --------
Cash and Cash Equivalents,
end of year $ 4,911 $ (131) $ 4,911
======== ======== ========
The accompanying notes are an integral part of these financial statements
F-6
<PAGE>
MICRON SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION AND HISTORY:
Micron Solutions Inc., (Micron) was formed on September 5, 1997 as a Nevada
corporation in order to complete a merger with Shillelagh Ventures, Chartered
(Shillelagh), both corporations have been inactive except for spending on
reorganization costs during 1997 and 1998. Micron Solutions Inc., is the
surviving company. Shillelagh Ventures, Chartered was an active holding company
until 1991 at which time they ceased operations on August 31, 1991 Shillelagh
showed liabilities totaling $340,031. Management believes these liabilities no
longer are valid and the statute of limitations have caused them to be
uncollectable and they were written off.
On the ninth of September, 1997, the shareholders of Shillelagh exchanged five
shares of its $.005 par value common stock for each one share of Micron $.001
par value common stock. The shareholders then voted to reorganize and through a
Quasi-reorganization eliminated its deficit retained earnings of $1,976,231.
There were no adjustments to Assets or Liabilities.
NATURE OF BUSINESS:
The Company provides specialized services directed to the investment community,
(such as researching stock as to value and name changes) and also to the general
public through the internet..
ASSETS AND LIABILITIES:
To the best of management's knowledge, there are no assets or liabilities within
the company, except those acquired between 1997, and 2000 in order to affect the
reorganization.
USE OF ESTIMATES:
The preparation of financial statements in conformity with general accepted
accounting principals require management to make estimates and assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from these estimates.
ORGANIZATION COSTS:
The Company has adopted Statement of Position (SOP) 98-5, "Reporting on the
Costs of Start-UP Activities" issued in April 1998 by the Accounting Standards
Executive Committee of the American Institute of Certified Public Accountants.
Pursuant to SOP 98-5, Organizational costs were expensed in 1999. For Federal
Income tax reporting, organization costs are capitalized and amortized over a
5-year period after commencement of operations.
EARNINGS PER SHARE:
The earnings per share calculation are based on the weighted average number of
shares outstanding during the period, 1,982,600 in 2000,
INCOME TAX:
Due to no earnings as of September 30, 2000, no provision for Federal income
taxes has been made.
DIVIDEND POLICY:
The Company has not paid any dividends and any dividends that may be paid in the
future will depend upon the financial requirements of the Company and other
relevant factors.
F-7
<PAGE>
MICRON SOLUTIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
(CONTINUED)
DEPRECIATION - Depreciation o f assets is based on a useful life of 5 years
using a s straight-line method
NOTE 2 - GOING CONCERN
As discussed in Note 1, the company has been in a dormant stage since 1991. The
company has no productive asset and may have prior unknown liabilities. The
company plans include infusing capital. The financial statements do not include
any adjustments that might result from the outcome of these uncertainties. These
factors raise concern about the company's ability to continue as a going
concern.
NOTE 3 - NET OPERATING LOSS CARRY FORWARD
Because of the change in ownership and the value of Shillelagh the net operating
loss carry forward prior to 1997 will be negligible. Net operating losses
occurring after 1997 can be carried forward to be used against future earnings
for a 15-year period as follows:
Y/E 12/31/98 expires 2013
Y/E 12/31/99 expires 2014
Y/E 12/31/00 expires 2015
F-8
<PAGE>
ITEM 2: Management's Discussion and Analysis or Plan of Operation
Statements contained herein that are not historical facts are
forward-looking statements as that term is defined by the Private Securities
Litigation Reform Act of 1995. Although the Company believes that the
expectations reflected in such forward-looking statements are reasonable, the
forward-looking statements are subject to risks and uncertainties that could
cause actual results to differ from those projected. The Company cautions
investors that any forward-looking statements made by the Company are not
guarantees of future performance and that actual results may differ materially
from those in the forward-looking statements. Such risks and uncertainties
include, without limitation: well established competitors who have substantially
greater financial resources and longer operating histories, regulatory delays or
denials, the Company's ability to compete as a start-up company in a highly
competitive market, and access to sources of capital.
The Company has not had revenues in the last two (2) years.
Accordingly, management's plan of operations is as follows:
Plan of Operation
During the fourth quarter of 2000 and the first quarter of 2001,
management intends to continue to expand the Company's operations. The company
has created its website for the promotion of the company's business. The
website, located at www.loststockholders.com, provides a portal for clients to
the company's services of obtaning unclaimed shares of stock for individuals
entitled to such shares but have not claimed such shares as the result of a
recent move, divorce or death in the family.
Management operates out of its facilities located at 8361 East Evens
Road, Suite 105, Scottsdale, Arizona 85260. The Company's office equipment
continues to be minimal, but is sufficient for the Company's initial operating
needs.
During the next six (6) months, management intends to continue to
contact potential clients and otherwise advertise and promote the Company's
services. The company has begun to build its base of clients and intends to
expand that base in the next six months.
Management does not anticipate revenues which will fully support the
Company's expense needs for the next six (6) months of its operations. During
that time, the Company's officers and directors intend to use personal funds to
cover the Company's expenses. In this regard, management anticipates that the
Company's operating expenses for the first full year of operations will be
compensated either through the issuance of stock or through the execution of
promissory notes.
2
<PAGE>
PART II
OTHER INFORMATION
ITEM 1: Legal Proceedings
The Company is not party to, and none of the Company's property is
subject to, any pending or threatened legal, governmental, administrative or
judicial proceedings.
ITEM 2: Changes in Securities and Use of Proceeds
None.
ITEM 3: Defaults Upon Senior Securities
None
ITEM 4: Submission of Matters to a Vote of Security Holders
No matters have been submitted to a vote of the security holders during
the period covered by this report through the solicitation of proxies or
otherwise.
ITEM 5: Other Information
None.
ITEM 6: Exhibits and Reports on Form 8-K
A. Exhibits
(2) Plan of acquisition, reorganization, liquidation or succession:
NONE.
(3) (i) Articles of Incorporation *
(ii) By-laws *
* Incorporated by reference from the Registrant's Form 10-SB.
B. Reports on Form 8-K.
The Registrant did not file reports on Form 8-K during the quarter
covered by this report.
3
<PAGE>
Signatures
In accordance with Section 13 or 15(d) of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Dated: December 19, 2000.
MICRON SOLUTIONS, INC.
By: /s/ Mark Riddle
-------------------
Mark Riddle
President
4
