UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the quarterly period ended September 30, 2000
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[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from _________________ to _________________
Commission file number 000-30769
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TONER SYSTEMS INTERNATIONAL, INC.
--------------------------------
(Exact name of small business issuer as specified in its charter)
Nevada 87-0419231
------------------------------- --------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
4485 Abinadi Road, Salt Lake City, Utah 84107
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(Address of principal executive offices)
(801) 266-8093
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(Issuer's telephone number)
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(Former name, former address and former fiscal year, if changed since last
report)
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
As of September 30, 2000, there were 10,048,762 shares of the Registrant's
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Common Stock outstanding. No Preferred Shares have been issued.
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Transitional Small Business Disclosure Format (Check one): Yes [ ] No [x]
<PAGE>
Part I
Item I
FINANCIAL STATEMENTS
The accompanying balance sheets of Toner Systems International, Inc.
(development stage company) at September 30, 2000 and December 31, 1999, and the
related statements of operations and cash flows for the nine months ended
September 30, 2000 and the years ended December 31, 1999 and 1998 and the period
August 25, 1980 (date of inception) to September 30, 2000, and the statement of
stockholder' equity for the period August 25, 1980 to September 30, 2000, have
been prepared by the Company's management and they do not include all
information and notes to the financial statements necessary for a complete
presentation of the financial position, results of operations, and cash flows in
conformity with generally accepted accounting principles. In the opinion of
management, all adjustments considered necessary for a fair presentation of the
results of operations and financial position have been included and all such
adjustments are of a normal recurring nature.
Operating results for the nine months ended September 30, 2000, are not
necessarily indicative of the results that can be expected for the year ending
December 31, 2000.
<PAGE>
TONER SYSTEMS INTERNATIONAL, INC.
(Development Stage Company)
BALANCE SHEETS
September 30, 2000 and December 31, 1999
Sept 30, Dec 31,
2000 1999
--------- ---------
ASSETS
CURRENT ASSETS
Cash $ - $ -
--------- ---------
Total Current Assets $ - $ -
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 2,560 $ 2,560
--------- ---------
Total Current Liabilities 2,560 2,560
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STOCKHOLDERS' EQUITY
Preferred stock
10,000,000 shares authorized at $0.001 par value: - -
none outstanding
Common stock
50,000,000 shares authorized at $0.001 par value;
10,048,762 shares issued and outstanding 10,049 10,049
Capital in excess of par value 425,872 425,872
Deficit accumulated during the development stage (438,481) (438,481)
--------- ---------
Total Stockholders' Deficiency (2,560) (2,560)
--------- ---------
$ - $ -
========= =========
<PAGE>
<TABLE>
<CAPTION>
TONER SYSTEMS INTERNATIONAL, INC.
(Development Stage Company)
STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30, 2000 and the Years Ended December 31, 1999,
and 1998 and the period August 25, 1980 (Date of Inception) to September 30, 2000
Aug 25, 1980
Sept 30, Dec 31, Dec 31, (Date ofinception)
2000 1999 1998 to Sept 30, 2000
------------- ------------- ------------- ------------------
<S> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ 156,948
EXPENSES - 10,355 14,000 (595,429)
------------- ------------- ------------- ------------------
NET LOSS $ - $ (10,355) $ (14,000) $ (438,481)
============= ============= ============= =================
NET LOSS PER COMMON SHARE
Basic $ - $ (.21) $ (.30)
------------- ------------- -------------
Average Outstanding Shares
Basic 10,048,762 48,762 47,012
------------- ------------- -------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TONER SYSTEMS INTERNATIONAL, INC.
(Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Period August 25, 1980 (Date of Inception) to September 30, 2000
Common Stock Capital in
------------ Excess of Accumulated
Shares Amount Par Value Deficit
--------- --------- ----------- ------------
<S> <C> <C> <C> <C>
Balance August 25, 1980 (Date of Inception) - $ - $ - $ -
Issuance of common stock for cash, less costs
at $ 33.33 -1980 - 1981 1,912 2 63,748
Net income for the period ended December 31, 1982 - - - 13,591
Issuance of common stock for all stock of
Cherry Creek Gold Corporation at
$30.90-August 18, 1983 10,550 11 325,590 -
Net income for the year ended December 31, 1983 - - - 2,764
Net loss for the year ended December 31, 1984 - - - (101,655)
Issuance of common stock for expenses and
Services at $1.00-January 24, 1985 1,400 1 1,399 -
Net loss for the year ended December 31,1985 - - - (64,383)
Net loss for the year ended December 31, 1986 - - - (251,126)
Issuance of common stock for expenses
and services at $ 1.00 - November 7, 1988 35 - 35 -
Net income for the year ended December 31, 1988 - - - 10,023
Issuance of common stock for expenses and
services at $1.00-November30, 1994 15,800 16 15,784 -
Net loss for the year ended December 31, 1994 - - - (15,800)
Issuance of common stock for services
at $1.00-March 21, 1995 5,000 5 4,995 -
Net loss for the year ended December 31, 1995 - - - (7,560)
Issuance of shares resulting from reverse split 65 - - -
Issuance of common stock for services
At $1.00-February 18, 1998 14,000 14 13,986 -
Net loss for the year ended December 31, 1998 - - - (14,000)
Issuance of common stock for expenses and
services at $.001 - December 31, 1999 10,000,000 10,000 - -
Contributions to capital - expenses -1999 - - 335 -
Net loss for the year ended December 31, 1999 - - - (10,335)
--------- ------- --------- ----------
Balance December 31, 1999 10,048,762 10,049 425,872 (438,481)
Net loss for the nine months ended Sept 30, 2000 - - - -
Balance September 30, 2000 10,048,762 $ 10,049 $ 425,872 $(438,481)
========== ======== ========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TONER SYSTEMS INTERNATIONAL, INC.
(Development Stage Company)
STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 2000 and the
Years Ended December 31, 1999, and 1998, and the
Period August 25, 1980 (Date of Inception) to September 30, 2000
August 25,1980
(Date of Inception)
2000 1999 1998 to Sept 30, 2000
--------- -------- -------- ----------------
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $ - $ (10,335) $ (14,000) $ (438,481)
Adjustments to reconcile net loss to
net cash provided by operating
activities
Capital contributions and stock issued
for expenses and services 10,335 14,000 46,570
Changes in accounts payable - - - 2,560
Loss of assets - - - 325,601
--------- ---------- ----------- ----------------
Net Cash Used by Operations - - - (63,750)
--------- ---------- ----------- ----------------
CASH FLOWS FROM INVESTING
ACTIVITIES - - - -
--------- ---------- ----------- ----------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of common
stock - - - 63,750
--------- ---------- ----------- ----------------
Net Increase (Decrease) in Cash - - - -
Cash Beginning of Period - - - -
--------- ---------- ----------- ----------------
Cash End of Period $ - $ - $ - $ -
--------- ---------- ----------- ----------------
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Issuance of 10,550 common shares for merger -1983 $325,601
--------
Issuance of 1,400 common shares for expenses -1985 1,400
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Issuance of 35 common shares for expenses -1988 35
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Issuance of 15,800 common shares for expenses - 1994 15,800
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Issuance of 5,000 common shares for expenses -1995 5,000
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Issuance of 14,000 common shares for expenses -1998 14,000
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Issuance of 10,000,000 common shares for expenses -1999 10,000
------
Contributions to capital - expenses -1999 335
---
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
TONER SYSTEMS INTERNATIONAL, INC.
(Development Stage Company)
Notes to Financial Statements
1. ORGANIZATION
The company was incorporated under the laws of the State of Utah on August 25,
1980 with authorized capital stock of 5,000,000 shares at $0.001 par value with
the name of "Business Ventures Corporation". The Company's name was later
changed to Cherry Creek Gold Corporation in connection with a merger with a
company of the same name on August 18, 1983. As part of the merger the Company
increased the authorized common stock to 50,000,000 shares with the same par
value. On December 30, 1994 the Company changed its name to Toner Systems
International, Inc. and on February 9, 1998 changed its domicile to the State of
Nevada.
On March 2, 1998 the Company completed a reverse stock split of one share for
1,000 shares of common stock outstanding. This report has been prepared showing
after stock split shares from inception.
On March 29, 2000 the Company filed amended articles authorizing 10,000,000
shares of preferred stock at a par value of $.001.
Since its inception the Company has been engaged in the development of mining
properties and became inactive after 1988. The Company has been in the
development stage since inception.
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
------------------
The Company recognizes income and expenses based on the accrual method of
accounting.
Dividend Policy
---------------
The Company has not yet adopted a policy regarding payment of dividends.
Income Taxes
------------
On September 30, 2000 the Company had a net operating loss carry forward of
$438,481. 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 doubtful since
the Company has no operations. The net operating loss will expire starting in
1998 through 2022.
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 are considered by management to be
their estimated fair values.
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.
Recent Accounting Pronouncements
--------------------------------
The Company does not expect that the adoption of other recent accounting
pronouncements will have a material impact on its financial statements.
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.
3. RELATED PARTY TRANSACTIONS
Related parties have acquired 99.7 % of the outstanding common stock.
4. GOING CONCERN
Continuation of the Company as a going concern is dependent upon obtaining
additional working capital and the management of the Company has developed a
strategy, which it believes will accomplish this objective through additional
equity, and long term financing which will enable the Company to continue
operations into the coming year.
There can be no assurance that management will be successful in this effort.
<PAGE>
Item II. Management's discussion and analysis of financial condition and results
of operations.
The Company is currently seeking potential business acquisitions or
opportunities to enter into, in an effort to commence business operations. The
Company does not propose to restrict its search for a business opportunity to
any particular industry or geographical area and may, therefore, engage in
essentially any business in any industry.
The Company has no significant operating costs or capital obligations.
SIGNATURES
In accordance with the requirements of the Securities Exchange Act , the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TONER SYSTEMS INTERNATIONAL, INC.
/s/
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Date: November 3, 2000 By Gerald Walton
Secretary & Director
/s/
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By Laura Olson
President
