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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File No.
June 30, 1997 0-9180
THERMAL ENERGY STORAGE, INC.
(Exact name of the registrant as specified in its charter)
COLORADO
(State of other jurisdiction of incorporation or organization)
95-3333931
(I.R.S. Employer Identification No.)
6335 Ferris Square, Suite E
San Diego, California 92121
Registrant's telephone number, including area code: (619) 453-1395
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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 Exchange Act of
1934 during the preceeding 12 months (or for such shorter period that the
registrant was required to file such report(s), and (2) has been subject to
such filing requirements for the past 90 days.
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common shares, as of the close of the period covered by this report:
58,931,289 Common Shares, par value $.001 per share.
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PART I
FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Please refer to succeeding pages for the financial statements.
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THERMAL ENERGY STORAGE, INC.
BALANCE SHEETS
(Unaudited)
ASSETS
June 30, December 31,
1997 1996
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CURRENT ASSETS:
Cash $ 20,844 $ 36,396
Accounts receivable 0 18,150
Inventories 1,000 1,000
Prepaid expenses and deposits 2,011 2,011
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Total current assets 23,854 58,557
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PROPERTY AND EQUIPMENT, at cost
Machinery and equipment 55,946 55,946
Furniture and fixtures 53,677 53,677
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109,623 109,623
Less - Accumulated depreciation (109,623) (109,623)
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0 0
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$ 23,854 $ 58,557
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THERMAL ENERGY STORAGE, INC.
BALANCE SHEETS
(Unaudited)
LIABILITIES AND SHAREHOLDERS' DEFICIT
June 30, December 31,
1997 1996
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CURRENT LIABILITIES:
Accounts payable $ 33,732 $106,585
Accrued payroll 101,326 101,326
Payable to officers and affiliates 504,864 490,160
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Total current liabilities 639,922 698,071
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COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' DEFICIT
Preferred stock, par value $.10
per share; 30,000,000 shares
authorized; none issued -- --
Common stock, par value $.001 per
share; 110,000,000 shares author-
ized; 58,931,289 shares issued
and outstanding at June 30, 1997
and December 31, 1996 58,931 58,931
Additional paid-in capital 4,040,281 4,040,281
Accumulated deficit (4,715,280) (4,738,726)
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Total Shareholders' Deficit (616,068) (639,514)
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$ 23,854 $ 58,557
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THERMAL ENERGY STORAGE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
-------- ---------- --------- -------
REVENUES:
Contract services $ 62,443 $ 32,932 $164,357 $ 44,467
-------- -------- --------- --------
Total revenues 62,443 32,932 164,357 44,467
-------- -------- --------- ---------
COST OF REVENUES:
Contract services 78,845 40,458 138,455 49,519
-------- -------- --------- ---------
78,845 40,458 138,455 49,519
-------- -------- --------- ---------
Gross profit (loss) (16,402) (7,526) 25,902 (5,052)
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OPERATING EXPENSES:
Research and development 0 0 0 0
Selling, general and
administrative expenses 3,078 8,158 5,158 15,486
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Total operating expenses 3,078 8,158 5,158 15,486
-------- -------- --------- ---------
Income (loss) from operations (19,480) (15,684) 20,744 (20,538)
-------- -------- --------- ----------
OTHER INCOME (EXPENSE):
Transfer fees 875 1,105 2,700 2,225
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NET PROFIT OR (LOSS) $(18,605) $(14,579) $ 23,444 $(18,313)
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NET PROFIT OR (LOSS)
PER COMMON SHARE $ (0) $ (0) $ 0 $ (0)
========= ========== ========= =========
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THERMAL ENERGY STORAGE, INC.
STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Unaudited)
Six Months Ended Six Months Ended
June 30, 1997 June 30, 1996
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CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $146,207 $ 44,467
Cash paid to suppliers (162,759) (41,387)
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Net cash provided (used) by
operating activities (16,552) 3,080
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NET DECREASE IN CASH AND CASH EQUIVALENTS
FROM FINANCING ACTIVITIES 0 0
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NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (16,552) 3,080
Cash and cash equivalents at
beginning of year 37,396 1,840
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Cash and cash equivalents at
end of period $ 20,844 $ 4,920
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THERMAL ENERGY STORAGE, INC.
STATEMENTS OF CASH FLOWS
RECONCILIATION OF NET INCOME (LOSS)
TO NET CASH (USED) BY OPERATING ACTIVITIES
Six Months Ended Six Months Ended
June 30, 1997 June 30, 1996
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Net income (loss) $ 23,444 $ (18,313)
Adjustments to reconcile net
loss to net cash used by
operating activities:
Depreciation 0 0
DECREASE (INCREASE) -
Accounts receivable 18,150 0
Prepaid expenses and deposits 0 0
INCREASE (DECREASE) -
Accounts payable (72,850) (6,550)
Other accrued liabilities 0 0
Payable to officers and affiliates 14,704 27,943
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Net cash used by operating activities $ (16,552) $ 3,080
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Material Changes in Financial Condition
As of June 30, 1997 cash and cash equivalents amounted to $20,844 as
compared to $37,396 as of December 31, 1996. The decrease since December 31,
1996 was primarily attributable to an decrease in accounts payable of $72,850
and an increase in payable to affiliates of $14,704 and a net income for the
six months ended June 30, 1997 of $23,444.
As of June 30, 1997 total shareholders' deficit amounted to $(616,068)
as compared to ($639,514) as of December 31, 1996. The decrease since December
31, 1996 was attributable to an income of $23,444.
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