Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
Quarterly report pursuant to Section 13 or 15 (d) of the
Securities and Exchange Act of 1934.
For the Quarter ended September 30, 1997
Commission File Number
0-9577
BERYLLIUM INTERNATIONAL CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
UTAH 87-0294391
(State or other jurisdiction of (IRS employer I.D. Number)
incorporation or organization)
8790 Blue Jay Lane
SALT LAKE CITY, UTAH 84121
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number
including area code: (801) 942-0895
Indicate by a check whether the registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934
during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.
YES NO X
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date:
20,936,880 common shares were outstanding as of September 30, 1997.
1 10-q Berryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
INDEX
Page Number
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
Condensed Balance Sheets 3
September 30, 1997 (unaudited)
March 31, 1997 (unaudited)
Condensed Statements of Operations and
Accumulated Deficit (unaudited) 4
Quarter Ended September 30, 1997
July 10, 1985 (Inception) to
September 30, 1997
Statements of Stockholders' Equity (Deficit) 5
Consolidated Statement of Cash Flows 13
Quarter Ended September 30, 1997
July 10, 1985 (Inception) to September 30, 1997
Notes to Condensed Financial Statements 15
Item 2.Management's Discussion and Analysis of
Financial Condition 16
Item 3.Exhibit 11: Computation of Weighted
Average Shares Outstanding 18
2 10-q Berryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Balance Sheets
ASSETS
September 30, March 31,
1997 1997
---- ----
(Unaudited)
CURRENT ASSETS
Cash ........................................ $ -- $ --
----------- -----------
Total Current Assets ...................... -- --
----------- -----------
TOTAL ASSETS .............................. $ -- $ --
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Trade payable ............................... $ -- $ --
Related party payable (Note 2) .............. -- --
----------- -----------
Total Liabilities ......................... -- --
----------- -----------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock: 50,000,000 shares
authorized of $0.01 par value,
20,936,880 shares issued and outstanding ... 209,369 209,369
Capital in excess of par value .............. 822,551 820,051
Deficit accumulated during the development
stage ....................................... (1,031,920) (1,029,420)
----------- -----------
Total Stockholders' Equity (Deficit) ...... -- --
----------- -----------
TOTAL LIABILITIES, AND STOCKHOLDERS'
EQUITY (DEFICIT) ......................... $ -- $ --
=========== ===========
3 10-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
From
Inception on
July 10,
For the Three Months Ended For the Six Months Ended 1985 Through
SEPTEMBER 30, SEPTEMBER 30, September 30,
------------- ------------- -------------
1997 1996 1997 1996 1997
----------- ----------- ----------- ----------- ----
<S> <C> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ - $ -
----------- ----------- ----------- ----------- -----
EXPENSES - - - - -
----------- ----------- ----------- ----------- -----
INCOME (LOSS) FROM
DISCONTINUED OPERATIONS (1,000) - (2,500) (1,000) (1,031,920)
----------- ----------- ----------- ----------- ----------
NET INCOME (LOSS) $ (1,000) $ - $ (2,500) $ (1,000) $(1,031,920)
=========== =========== =========== =========== ===========
INCOME (LOSS) PER SHARE $ (0.00) $ 0.00 $ (0.00) $ (0.00)
=========== =========== =========== ===========
WEIGHTED AVERAGE
NUMBER OF SHARES 20,936,880 20,936,880 20,936,880 20,837,426
=========== =========== =========== ===========
</TABLE>
410-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
<TABLE>
<CAPTION>
DEFICIT
ACCUMULATED
CAPITAL IN COMMON DURING THE
COMMON STOCK EXCESS OF STOCK DEVELOPMENT
SHARES AMOUNT PAR VALUE SUBSCRIPTIONS STAGE
------ ------ --------- ------------- -----
<S> <C> <C> <C> <C> <C> <C>
Common stock issued on date of
incorporation at approximately
$1.00 per share to officers in exchange
for natural resource properties valued
at $55,157, the cost basis to the
individuals, less the assumption of
long-term debt of $5,474 ........................... 50,000 $ 49,683 $ -- $ -- $ --
Recapitalization change resulting
from merger and acquisition of
Emery net assets on December
20, 1985 .......................................... 3,450,000 (14,683) 14,683 -- --
Change resulting from merger and
acquisition of Emery net assets on December 20,
1985 - outstanding
shares of Emery ................................... 3,467,720 34,677 63,054 -- --
Common stock issued for cash
between February and March,
1986 at $0.25 per share ........................... 200,000 2,000 48,000 -- --
Issuance of common stock sub-
scriptions in March, 1986, 400,000
shares at $0.25 per share ......................... -- -- -- 100,000 --
Acquisition and cancellation of
treasury stock ................................... (80,000) (800) (49,200) -- --
Net (loss) for the period ended
March 31, 1986 .................................... -- -- -- -- (128,232)
-------- --------- -------- -------- ---------
Balance, March 31, 1986 ............................. 7,087,720 $ 70,877 $ 76,537 $100,000 $(128,232)
-------- --------- -------- -------- ---------
</TABLE>
510-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)(Continued)
<TABLE>
<CAPTION>
DEFICIT
ACCUMULATED
CAPITAL IN COMMON DURING THE
COMMON STOCK EXCESS OF STOCK DEVELOPMENT
SHARES AMOUNT PAR VALUE SUBSCRIPTIONS STAGE
------ ------ --------- ------------- -----
<S> <C> <C> <C>
Balance, March 31, 1986 ................................ 7,087,720 $ 70,877 $ 76,537 $ 100,000 $(128,232)
Common stock subscriptions issued
for cash between April and May,
1986 at $0.25 per share .............................. 400,000 4,000 96,000 (100,000) --
Common stock issued in settlement
of long-term debt and accrued
interest in August, 1986 valued at
$0.38 per share ..................................... 57,142 571 21,262 -- --
Common stock issued for cash between
July and September, 1986 at prices
ranging from $0.33 to $0.50 less
costs of issuance .................................... 190,000 1,900 67,900 -- --
Adjustment to liability to shareholder
representing changes in net assets of
Emery Energy, Inc. from March 31, 1986
to August 1, 1986 (the date such assets
were returned to the principal shareholder
of Emery Energy, Inc.) ............................... -- -- 11,920 -- --
Common stock issued for services
in March, 1987 valued at $0.08
per share ............................................ 40,000 400 2,933 -- --
Common stock issued to the former
shareholders of Moody Beryllium Corporation
resulting from the acquisition and
realignment of Beryllium international
Corporation (formerly Emery Energy, Inc.) ............ 10,370,880 103,709 (103,709) -- --
Net (loss) for the year ended
March 31, 1987 ....................................... -- -- -- -- (229,183)
Balance, March 31, 1987 ................................ 18,145,742 181,457 172,843 -- (357,415)
Common stock issued for cash in
July, 1987 at $0.25 per share ........................ 80,000 800 19,200 -- --
Common stock issued for services
between July, 1987 and March,
1988 at $0.25 per share .............................. 21,600 216 5,184 -- --
6 10-Q Beryllium April 20, 1998
<PAGE>
Net (loss) for the year ended
March 31, 1988 ............................ -- -- -- -- (364,957)
---------- -------- -------- ------ ---------
Balance, March 31, 1988 ..................... 18,247,342 $182,473 $197,227 $ -- $(722,372)
---------- -------- -------- ------ ---------
</TABLE>
7 10-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)(Continued)
<TABLE>
<CAPTION>
DEFICIT
ACCUMULATED
CAPITAL IN COMMON DURING THE
COMMON STOCK EXCESS OF STOCK DEVELOPMENT
SHARES AMOUNT PAR VALUE SUBSCRIPTIONS STAGE
------ ------ --------- ------------- -----
<S> <C> <C> <C> <C> <C>
Balance, March 31, 1988 ............................... 18,247,342 $182,473 $197,227 $ -- $(722,372)
Common stock issued for cash
between May and June, 1988 at
$0.25 per share ..................................... 40,000 400 9,600 -- --
Common stock issued for services
in June, 1988 at $0.25 per share .................... 10,000 100 2,400 -- --
Common stock issued in settlement
of payable to officers and directors
in November, 1988 at $0.25 per
share ............................................... 1,315,485 13,155 315,717 -- --
Net (loss) for the year ended
March 31, 1989 ...................................... -- -- -- -- (49,217)
---------- -------- -------- ------ ---------
Balance, March 31, 1989 ............................... 19,612,827 196,128 524,944 -- (771,589)
Common stock issued for cash
between June and August,
1989 at $0.10 per share ............................. 150,000 1,500 13,500 -- --
Common stock issued for cash in
June, 1989 at $0.25 per share ....................... 5,442 54 1,306 -- --
Common stock issued in settlement
of trade accounts payable in
November, 1989 at $0.25 per share ................... 3,254 33 781 -- --
Common stock issued for services in
November, 1989 at between $0.10
and $0.25 per share ................................. 55,357 554 8,005 -- --
Common stock issued for natural
resource properties in January,
1990 at $0.25 per share ............................. 150,000 1,500 36,000 -- --
Net (loss) for the year ended
March 31, 1990 ...................................... -- -- -- -- (53,269)
---------- -------- -------- ------ ---------
Balance, March 31, 1990 ............................... 19,976,880 199,769 584,536 -- (824,858)
Common stock issued in settlement
of trade accounts payable in
October, 1990 at $0.10 per share .................... 50,000 500 4,500 -- --
8 10-Q Beryllium April 20, 1998
<PAGE>
Net (loss) for the year ended
March 31, 1991 ............................ -- -- -- -- (56,875)
---------- -------- -------- ------ ---------
Balance, March 31, 1991 ..................... 20,026,880 $200,269 $589,036 $ -- $(881,733)
---------- -------- -------- ------ ---------
</TABLE>
9 10-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)(Continued)
<TABLE>
<CAPTION>
DEFICIT
ACCUMULATED
CAPITAL IN COMMON DURING THE
COMMON STOCK EXCESS OF STOCK DEVELOPMENT
SHARES AMOUNT PAR VALUE SUBSCRIPTIONS STAGE
------ ------ --------- ------------- -----
<S> <C> <C> <C> <C> <C>
Balance, March 31, 1991 ............................. 20,026,880 $200,269 $589,036 $ -- $ (881,733)
Net (loss) for the year ended
March 31, 1992 .................................... -- -- -- -- (45,995)
Balance, March 31, 1992 ............................. 20,026,880 200,269 589,036 -- (927,728)
Expenses paid on behalf of the
Company by the shareholders ....................... -- -- 76,209 -- --
Payable to officers and directors
reclassified as contributed capital
in excess of par value ............................ -- -- 73,564 -- --
Net (loss) for the year ended
March 31, 1993 .................................... -- -- -- -- (101,663)
---------- -------- -------- ------ -----------
Balance, March 31, 1993 ............................. 20,026,880 200,269 738,809 -- (1,029,391)
Note payable and accrued interest
paid on behalf of the Company by
one of the shareholders ........................... -- -- 18,688 -- --
Expenses paid on behalf of the
Company by the shareholders ....................... -- -- 6,618 -- --
Net (loss) for the year ended
March 31, 1997 .................................... -- -- -- -- (19,771)
---------- -------- -------- ------ -----------
Balance, March 31, 1997 ............................. 20,026,880 200,269 764,115 -- (1,049,162)
Common stock issued for services
valued at $0.10 per share ......................... 120,000 1,200 10,800 -- --
Common stock issued for trade
payables at $0.10 per share ........................ 380,000 3,800 34,200 -- --
Common stock issued for trade
payables in August, 1997 at par ................... 10,000 100 -- -- --
Common stock issued for services
in August, 1997 at par ............................ 200,000 2,000 -- -- --
Expenses paid on behalf of the
Company by the shareholders ....................... -- -- 1,506 -- --
</TABLE>
10 10-Q Beryllium April 20, 1998
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Net (loss) for the year ended
March 31, 1995 ......................... -- -- -- -- (15,506)
---------- -------- -------- ------ -----------
Balance, March 31, 1995 ................... 20,736,880 $207,369 $810,621 $ -- $(1,064,668)
---------- -------- -------- ------ -----------
</TABLE>
11 10-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)(Continued)
<TABLE>
<CAPTION>
DEFICIT
ACCUMULATED
CAPITAL IN COMMON DURING THE
COMMON STOCK EXCESS OF STOCK DEVELOPMENT
SHARES AMOUNT PAR VALUE SUBSCRIPTIONS STAGE
------ ------ --------- ------------- -----
<S> <C> <C> <C> <C> <C>
Balance, March 31, 1995 ............................. 20,736,880 $207,369 $810,621 $ -- $(1,064,668)
Common stock issued in settlement
of trade accounts payable in
March, 1996 at approximately
$0.02 per share ................................... 100,000 1,000 930 -- --
Expenses paid on behalf of the
Company by the shareholders ....................... -- -- 1,000 -- --
Net income for the year ended
March 31, 1996 ..................................... -- -- -- -- 36,248
---------- -------- -------- ------ -----------
Balance, March 31, 1996 ............................. 20,836,880 208,369 812,551 -- (1,028,420)
Common stock issued in settlement
of trade accounts payable in June,
1996 at par ....................................... 100,000 1,000 -- -- --
Trade payables paid on behalf of the
Company by the shareholders ....................... -- -- 6,500 -- --
Expenses paid on behalf of the
Company by the shareholders ....................... -- -- 1,000 -- --
Net (loss) for the year ended
March 31, 1997 .................................... -- -- -- -- (1,000)
---------- -------- -------- ------ -----------
Balance, March 31, 1997 ............................. 20,936,880 209,369 820,051 -- (1,029,420)
Expenses paid on behalf of the
Company by the shareholders
(unaudited) ....................................... -- -- 2,500 -- --
Net (loss) for the six months
ended September 30, 1997
(unaudited) ....................................... -- -- -- -- (2,500)
---------- -------- -------- ------ -----------
Balance, September 30, 1997
(unaudited) ....................................... 20,936,880 $209,369 $822,551 $ -- $(1,031,920)
========== ======== ======== ====== ===========
</TABLE>
12 10-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
From
Inception on
July 10,
For the Three Months Ended For the Six Months Ended 1985 Through
SEPTEMBER 30, SEPTEMBER 30, September 30,
1997 1996 1997 1996 1997
----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) .................................... $(1,000) $ -- $(2,500) $ (1,000) $(1,031,920)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization ........................ -- -- -- -- 1,273
Expenses paid by shareholders ........................ 1,000 -- 2,500 1,000 88,833
Common stock issued for services ..................... -- -- -- -- 33,792
Organization costs ................................... -- -- -- -- (200)
Loss on disposal of real estate ...................... -- -- -- -- 52,000
Loss on disposition of assets ........................ -- -- -- -- 6,823
Gain on forgiveness of debt .......................... -- -- -- -- (37,248)
Changes in operating assets and liabilities:
Increase (decrease) in trade payables ................ -- -- -- -- 90,592
Increase (decrease) in payable to
officers and directors ............................. -- -- -- -- 402,436
Increase (decrease) in accrued expenses- ............. -- -- -- 3,688
------- ------ ------- ----------- -----------
Cash Provided (Used) by
Operating Activities .............................. -- -- -- -- (389,931)
------- ------ ------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of natural resource properties- ............. -- -- -- (1,140,803)
Proceeds from disposal of real estate ................ -- -- -- -- 668,000
Claims and development costs ......................... -- -- -- -- (18,942)
Proceeds from Gold Fields joint venture
agreement .......................................... -- -- -- -- 25,000
------- ------ ------- ----------- -----------
Cash Provided (Used) by
Investing Activities .............................. -- -- -- -- (466,745)
------- ------ ------- ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Common stock issued for cash ......................... -- -- -- -- 266,160
Proceeds from long-term debt ......................... -- -- -- -- 1,268,138
Payments on long-term debt ........................... -- -- -- -- (642,622)
Reacquisition and cancellation of
common stock ........................................ -- -- -- -- (50,000)
Proceeds from note payable ........................... -- -- -- -- 15,000
------- ------ ------- ----------- -----------
Cash Provided (Used) by Financing
Activities ........................................ -- -- -- -- 856,676
------- ------ ------- ----------- -----------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ................................. -- -- -- -- --
CASH AT BEGINNING OF PERIOD ............................ -- -- -- -- --
------- ------ ------- ----------- -----------
CASH AT END OF PERIOD .................................. $ -- $ -- $ -- $ -- $ --
======= ====== ======= =========== ===========
</TABLE>
13 10-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Statements of Cash Flows (Continued)
(Unaudited)
<TABLE>
<CAPTION>
From
Inception on
July 10,
For the Three Months Ended For the Six Months Ended 1985 Through
SEPTEMBER 30, SEPTEMBER 30, September 30,
1997 1996 1997 1996 1997
----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Cash Payments For:
Income taxes ............................................. $ -- $ -- $ -- $ -- $ 764
Interest ................................................. $ -- $ -- $ -- $ -- $ 77,927
Non-Cash Financing Activities:
Common stock issued in settlement of
long-term debt ........................................ $ -- $ -- $ -- $ -- $ 21,833
Common stock issued in exchange for
natural resource properties ............................ $ -- $ -- $ -- $ -- $ 37,500
Common stock issued in settlement of
trade payables ......................................... $ -- $ -- $ -- $1,000 $ 46,844
Trade payables paid on behalf of the
Company by the shareholders ............................ $ -- $ -- $ -- $ -- $ 6,500
Common stock issued in settlement of
payables to officers and director $s ................... -- $ -- $ -- $ -- $328,872
Forgiveness of debt by officers an
directors of the company ............................... $ -- $ -- $ -- $ -- $ 73,564
Note payable and accrued interest paid
by a director of the Company ........................... $ -- $ -- $ -- $ -- $ 15,000
</TABLE>
14 10-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Notes to the Financial Statements
September 30, 1997 and March 31, 1997
(Unaudited)
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the
Company without audit. In the opinion of management, all adjustments
(which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and
cash flows at December 31, 1997 and for all periods presented have
been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with general accepted
accounting principles have been condensed or omitted. It is
suggested that these condensed financial statements be read in
conjunction with the financial statements and notes thereto included
in the Company's March 31, 1997 audited financial statements. The
results of operations for the periods ended December 31, 1997 and
1996 are not necessarily indicative of the operating results for the
full year.
NOTE 2 - SUBSEQUENT EVENTS
In February, 1998, Beryllium International Corporation and RHAJ,
Inc. completed an Agreement and Plan of Reorganization whereby
Beryllium issued 397,800,720 shares of its common stock in exchange
for all of the outstanding common stock of RHAJ, Inc., making RHAJ,
Inc. a wholly owned subsidiary of Beryllium International
Corporation. Immediately prior to the Agreement and Plan of
Reorganization, RHAJ, Inc. had 2,390,000 shares of common stock
issued and outstanding. It is the intention of the companies that
this transaction qualify as a tax-free reorganization.
RHAJ, Inc. runs a subsidiary, Green Gas Generator PTE, Ltd., a
corporation organized under the laws of Singapore.
15 10-Q Beryllium April 20, 1998
<PAGE>
BERYLLIUM INTERNATIONAL CORPORATION
(A Development Stage Company)
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION, LIQUIDITY, AND CAPITAL RESOURCES
The Company is still in the development stage and as such has no
income. It relies completely on private placement sales of stock for spending
capital.
The company has entered into a reorganization agreement with RHAJ,
Inc., on February of 1998. RHAJ, Inc. owns a subsidiary, Green Gas Generator
PTE, Ltd., located in Singapore that has a patented process for producing
hydrogen and oxygen (Green Gas) through the electrolysis of water. Their first
product, Green Gas Generator, is a generator that produces the gas and is to be
used in the welding and steel cutting industries. The product has received
overwhelming responses from the industry and has been featured on several
television specials overseas. It is the management's opinion that this patented
process and products has a tremendous potential for sales globally.
16 10-Q Beryllium April 20, 1998
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
Beryllium International Corporation
----------------------------------------
Registrant
- ------------------------- -----------------------------
September 30, 1997 Gerald M. Park
Vice-President
17 10-Q Beryllium April 20, 1998
<PAGE>
EXHIBIT II
BERYLLIUM INTERNATIONAL CORPORATION
EXHIBIT OF COMPUTATION OF WEIGHTED AVERAGE SHARES OUTSTANDING
Quarter Ended September 30, 1997.
Balances at Shares Balances at Weighted
Beginning Issued end of period average for period
Shares 20,936,880 -0- 20,936,880 20,936,880
18 10-Q Beryllium April 20, 1998
