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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.
March 31, 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.)
6365 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 preceding 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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<TABLE>
THERMAL ENERGY STORAGE, INC.
BALANCE SHEETS
(Unaudited)
ASSETS
<CAPTION>
March 31, December 31,
1997 1997
-------------------
- -------------------
CURRENT ASSETS:
<S> <C> <C>
Cash $ 36,247 $ 37,396
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 39,258 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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- -------------------
$ 39,258 $ 58,557
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</TABLE>
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<PAGE>
<TABLE>
THERMAL ENERGY STORAGE, INC.
BALANCE SHEETS
(Unaudited)
LIABILITIES AND SHAREHOLDERS' DEFICIT
<CAPTION>
March 31, December 31,
1997 1996
------------ -------------
CURRENT LIABILITIES:
<S> <C> <C>
Accounts payable $ 33,732 $ 106,585
Accrued payroll 101,326 101,326
Payable to officers and affiliates 501,665 490,160
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Total current liabilities 636,723 698,071
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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 $.001 per
share; 110,000,000 shares author-
ized; 58,931,289 shares issued
and outstanding at March 31, 1997
and December 31, 1996 58,931 58,931
Additional paid-in capital 4,040,281 4,040,281
Accumulated deficit (4,696,677) (4,738,726)
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Total shareholders' deficit (597,465) (639,514)
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$ 39,258 $ 58,557
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</TABLE>
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<TABLE>
THERMAL ENERGY STORAGE, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarter Ended Quarter Ended
March 31, 1997 March 31, 1996
---------------- --------------
REVENUES:
<S> <C> <C>
Contract services $ 101,914 $ 11,535
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Total revenues 101,914 11,535
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COST OF REVENUES:
Contract services 59,610 9,061
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Total cost of revenues 59,610 9,061
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Gross profit 42,304 2,474
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OPERATING EXPENSES:
Research and development 0 0
Selling, general and administrative 2,080 7,328
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Total operating expenses 2,080 7,328
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Income (Loss) from operations 40,224 (4,854)
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OTHER INCOME (EXPENSE):
Transfer fees 1,825 1,120
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NET INCOME (LOSS) $ 42,049 $ (3,734)
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NET INCOME (LOSS) per common share $ 0 $ 0
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</TABLE>
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<TABLE>
THERMAL ENERGY STORAGE, INC.
STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(Unaudited)
Quarter Ended Quarter Ended
March 31, 1997 March 31, 1996
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CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Cash received from customers $ 83,764 $ 11,535
Cash paid to suppliers (84,913) (11,073)
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Net cash provided (used) by
operating activities (1,149) 462
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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 (1,149) 462
Cash and cash equivalents at
beginning of year 37,396 1,840
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Cash and cash equivalents at
end of period $ 36,247 $ 2,302
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</TABLE>
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<PAGE>
<TABLE>
THERMAL ENERGY STORAGE, INC.
STATEMENTS OF CASH FLOWS
RECONCILIATION OF NET INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
<CAPTION>
Quarter Ended Quarter Ended
March 31, 1997 March 31, 1996
------------------- -------------------
<S> <C> <C>
Net Income (Loss) $ 42,049 $ (3,734)
Adjustments to reconcile net
income (loss) to net cash
provided (used) by operating
activities:
Depreciation 0 0
DECREASE (INCREASE) -
Accounts receivable 18,150 0
Prepaid expenses and deposits 0 0
INCREASE (DECREASE) -
Accounts payable (72,853) (6,550)
Payable to officers and affiliates 11,505 10,746
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Net cash provided (used) by
operating activities $ (1,149) $ 462
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</TABLE>
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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 March 31, 1997 cash and cash equivalents amounted to $36,247 as
compared to $37,396 as of December 31, 1996. The decrease since December 31,
1996 was primarily attributable an decrease in accounts receivable of
$18,150, a decrease in accounts payable of $72,853 and an increase in
payable to affiliates of $11,505 and a net income for the quarter ended
March 31, 1996 of $42,049.
As of March 31, 1997 total shareholders' deficit amounted to $(597,465)
as compared to ($639,514) as of December 31, 1996. The decrease since
December 31, 1996 was attributable to income of $42,049.
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