EMC ENERGIES, INC. THIRD QUARTER 10QSB
U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File No. 0-5391
EMC ENERGIES, INC.
(Name of Small Business Issuer in its Charter)
NEVADA 83-0210365
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
4685 S. HIGHLAND DR, SUITE 202
SALT LAKE CITY, UT 84117
(Address of Principal Executive Offices)
Issuer's Telephone Number: (801)274-1011
Indicate by check mark whether the Registrant (1) has
filed all reports required to be filed by Sections 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 reports), and (2) has been subject to such
filing requirements for the past 90 days.
(1) Yes X No (2) Yes X No
---- ---- ---- ----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
None; not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the
number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date:
March 31, 2000
Common Voting Stock
2,069,972
March 31, 2000
Preferred Stock
-0-
PART I - FINANCIAL INFORMATION
Item 1.Financial Statements.
The Financial Statements of the Registrant required to be
filed with this 10-QSB Quarterly Report were prepared by
management and commence on the following page, together with
related Notes. In the opinion of management, the Financial
Statements fairly present the financial condition of the
Registrant.
<TABLE>
EMC ENERGIES, INC.
BALANCE SHEET
March 31, 2000 and June 30, 1999
(Unaudited)
<CAPTION>
ASSETS
3/31/00 6/30/99
<S> <C> <C>
Current Assets:
Cash $ 844 $ 1,657
Marketable Securities 0 18,875
Other Investments 0 1,575
-------- --------
Total Current Assets 844 22,107
Property & Equipment, net 0 2,500
------ ------
TOTAL ASSETS $ 844 $ 24,607
====== ======
LIABILITIES & STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts Payable $ 10,350 $ O
------ ------
Total Current Liabilities 10,350 0
Stockholders' Equity
Common stock, $.001 par value;
authorized 100,000,000 shares;
issued and outstanding: 2,069,972
at 3/31/00 and 2,423,358 at
6/30/99 2,070 2,423
Additional Paid-in Capital 1,132,554 1,424,728
Accumulated Deficit (1,144,130) (1,089,597)
Accumulated Other Comprehensive
Income (Loss) 0 (20,420)
--------- ---------
(9,506) 317,134
Less cost of treasury stock 0 (292,527)
--------- ---------
Total Stockholders' Equity (9,506) 24,607
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 844 $ 24,607
======== ========
</TABLE>
See accompanying notes to financial statements.
<TABLE>
EMC ENERGIES, INC.
STATEMENTS OF OPERATIONS
For the Three and Nine Month Periods Ended March 31, 2000 and 1999
(Unaudited)
<CAPTION>
Three Months Nine Months
Ended Ended
-------------- ------------
3/31/00 3/31/99 3/31/00 3/31/99
-------- -------- -------- --------
<S> <C> <C> <C> <C>
REVENUE $ 0 $ 0 $ 0 $ 0
General & Administrative
Expenses 4 501 31,313 1,636
Asset Impairment Charge 0 0 0 8,000
------ ----- ------ -----
Net Loss
from Operations (4) (501) (31,313) (9,636)
Other Income/Expense
Other Income 0 0 0 3
Loss on Sale of
Securities 0 0 (21,645) 0
Distribution of
Other Investments 0 0 (1,575) 0
------ ----- ------ -----
Total Other
Income/Expense 0 0 (23,220) 3
Net Loss Before Taxes (4) (501) (54,533) (9,633)
Income Taxes 0 0 0 0
------ ----- ------ -----
Net Loss $ (4) $ (501) $ (54,533) $ (9,633)
====== ====== ====== =====
Weighted Average
Shares Outstanding 2,069,972 2,423,358 2,069,972 2,423,358
</TABLE>
See accompanying notes to the financial statements.
<TABLE>
EMC ENERGIES, INC.
STATEMENTS OF CASH FLOWS
For the Nine Month Periods Ended March 31, 2000 and 1999
(Unaudited)
<CAPTION>
Nine Months Nine Months
Ended Ended
3/31/00 3/31/99
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (54,533) $ (9,633)
Adjustments to reconcile
net loss to net cash used
in operating activities:
Asset impairment charge - 8,000
Loss on sale of securities 21,645 -
Distribution of other investment 1,575 -
Increase in accounts payable 10,350 -
----- -----
Net cash used for
operating activities (20,963) (1,633)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of securities 17,650 -
Sales of property 2,500 -
----- -----
Net cash used in investing
activities 20,150 -
----- -----
CASH FLOWS FROM FINANCING ACTIVITIES: - -
----- -----
Net increase (decrease) in Cash (813) (1,633)
CASH AT BEGINNING PERIOD 1,657 3,894
----- -----
CASH AT END OF PERIOD $ 844 $2,261
===== =====
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest expense $ - $ -
===== =====
Income taxes $ - $ -
===== =====
</TABLE>
See accompanying notes to the financial statements.
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and Article 10 of
Regulation S-X. Accordingly, they do not include all of the
information and footnotes required for complete financial
statements. In the opinion of management, all adjustments
necessary for a fair presentation of the results for the interim
periods presented have been included.
These results have been determined on the basis of generally
accepted accounting principles and practices applied consistently
with those used in the preparation of our audited Financial
Statements for the year ended June 30, 1999.
NOTE 2 - PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
March 31 June 30,
2000 1999
---------- ---------
Land $ 0 $ 10,500
Proved Leasehold 0 250
Well equipment 0 670
-------- -------
Less accumulated
depletion & impairment 0 8,920
-------- -------
$ 0 $ 2,500
======== =======
NOTE 3 - STOCKHOLDERS' EQUITY
We have adopted SFAS 130 which requires presentation of
comprehensive income (net income plus all other changes in net
assets from non owner sources) and its components in the financial
statements. We have changed the format of its statements of
stockholders' equity (deficit) to present comprehensive income.
Accumulated other comprehensive income or loss shown in the
statements of stockholders' equity at March 31, 2000 and June
30, 1999, is solely comprised of the accumulated change in
unrealized gains and losses on marketable securities.
NOTE 4 - RELATED PARTY TRANSACTIONS
During the nine months ended March 31, 2000 and the year ended
June 30, 1999 we paid our Officers and Directors $9,366 and $728
respectively for services rendered to us. In addition, we sold our
property to an officer and director for $2,500 and distributed the
$1,575 in other investments to directors as appreciation for past
services.
NOTE 5 - CAPITALIZATION
On January 28, 2000 the Company, through a majority shareholder
vote, changed its domicile to Nevada. In addition, the Company
changed its par value to $.001 and authorized common stock to
100,000,000 shares. No preferred shares were authorized. The
financial statements have been retroactively adjusted to reflect
these changes.
Item 2.Management's Discussion and Analysis or Plan of Operation.
Plan of Operation.
The Company has not engaged in any material operations in the
period ending March 31, 2000, or since June 30, 1990. The Company
is actively seeking a merger/acquisition candidate. As of the date
hereof, the parties have not executed any definitive,
binding Plan of merger or reorganization, and there can be no
assurance that such a Plan will ever be executed or that, if
executed, such a transaction will be completed.
During the period ending March 31, 2000, the company changed its
domicile, by a majority vote of its shareholders, to the state of
Nevada through a merger with EMC Energies, Inc. of Nevada which
was created solely for the purpose of changing domicile. The Plan
of Merger provided for the dissenting shareholders to be paid the
amount, if any, to which they would be entitled under the Wyoming
Corporation Statues with respect to the rights of dissenting
shareholders. The company then changed its par value to $.001 and
the amount of authorized common stock to 100,000,000 shares.
Management deemed it in the Company's best interest to cancel all
of the outstanding treasury stock during the period ended March
31, 2000.
All of the officers and directors intend to continue to seek out
the acquisition of assets, property or businesses that may be
beneficial to the Company and its stockholders. The Company's
foreseeable cash requirements during the next 12 months will
relate to maintaining the Company in good standing, keeping its
reports "current" with the Securities and Exchange Commission, and
costs related to locating and reorganizing with a going-concern
merger candidate. Management anticipates that it will have to
raise or borrow additional funds during the next 12 months to this
end.
Results of Operations. The Company has had no operations since
June 1990. At March 31, 2000, the Company had $844 in assets and
$10,350 in liabilities.
The Company had a net loss for the nine months ended March 31,
2000 of $(54,533) compared to a net loss of $(9,633) for the same
period last year. The Company has a net operating loss
carryforward of $(1,144,130) since inception.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None; not applicable.
Item 2. Changes in Securities.
None; not applicable.
Item 3. Defaults Upon Senior Securities.
None; not applicable.
Item 4. Submission of matters to a Vote of Security Holders.
None; not applicable
Item 5. Other Information.
None; not applicable
Item 6. Exhibits and Reports on Form 8-K.
Exhibit Number Description
- - -------------- -----------
(27) Financial Date Schedule
* Exhibits incorporated by reference.
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.
EMC ENERGIES, INC.
Date: 5-16-00 By /S/ Jennifer Ngo
President and Director
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> MAR-31-2000
<CASH> 844
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 844
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 844
<CURRENT-LIABILITIES> 10,350
<BONDS> 0
0
0
<COMMON> 2,070
<OTHER-SE> (11,576)
<TOTAL-LIABILITY-AND-EQUITY> 844
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 54,533
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (54,533)
<INCOME-TAX> 0
<INCOME-CONTINUING> (54,533)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (54,533)
<EPS-BASIC> (.0)
<EPS-DILUTED> (.0)
</TABLE>
