<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 10-QSB
Quarterly or Transitional Report
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 2-29987
UPWARD TECHNOLOGY CORPORATION
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
NEW YORK 11-1714403
-------- ----------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
301 CITY AVENUE, BALA CYNWYD, PA 19004
- -------------------------------- -----
(Address of principal executive offices) (Zip Code)
</TABLE>
215 667-8225
------------
(Issuer's telephone number)
Check whether the issuer (1) 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 reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--------- ---------
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares outstanding of the issuer's common stock as of
September 30, 1997 was 8,100,000.
Transitional Small Business Disclosure Format (check one): Yes No X
--- ---
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<S> <C>
PART I - FINANCIAL INFORMATION: PAGE NO.
ITEM 1. Balance Sheets as of September 30, 1997
and September 30, 1996 3
Statements of Operations
Nine Months Ended September 30, 1997
and September 30, 1996 4
Statement of Cash Flows
Nine Months Ended September 30, 1997
and September 30, 1996 5
Notes to Financial Statements 6
ITEM 2. Management's Discussion and
Analysis of Financial Condition
and Results of Operations 7
PART II - OTHER INFORMATION:
ITEM 1. Legal Proceedings 8
ITEM 2. Changes in Securities 8
ITEM 3. Defaults Upon Senior Securities 8
ITEM 4. Submission of Matters to a Vote 8
of Security Holders
ITEM 5. Other Information 8
ITEM 6. Exhibits and Reports on Form 8-K 8
Signatures 9
</TABLE>
2
<PAGE> 3
UPWARD TECHNOLOGY CORPORATION
CONTENTS
================================================================================
<TABLE>
<S> <C>
FINANCIAL STATEMENTS
Statements of assets, liabilities and stockholder's equity 3
Statements of revenue, expenses and (deficit) 5
Statements of cash flows 5
NOTE TO FINANCIAL STATEMENTS 6
</TABLE>
2
<PAGE> 4
UPWARD TECHNOLOGY CORPORATION
STATEMENTS OF ASSETS, LIABILITIES AND STOCKHOLDER'S EQUITY
================================================================================
<TABLE>
<CAPTION>
September 30, 1997 1996
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 198,849 $ 204,760
Prepaid expenses 422 422
- -------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 199,271 $ 205,182
=============================================================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accrued liabilities $ -- $ 4,321
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES -- 4,321
- -------------------------------------------------------------------------------------------------------------
STOCKHOLDER'S EQUITY
Common stock, par value $.02 per share
Authorized 24,000,000 shares
Issued and outstanding 8,100,000 shares 162,000 162,000
Additional paid-in capital 1,983,208 1,983,208
(Deficit) (1,945,937) (1,944,347)
- -------------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDER'S EQUITY 199,271 200,861
- -------------------------------------------------------------------------------------------------------------
$ 199,271 $ 205,182
=============================================================================================================
</TABLE>
See accompanying independent accountants' compilation report and note to
financial statements.
3
<PAGE> 5
UPWARD TECHNOLOGY CORPORATION
STATEMENTS OF REVENUE, EXPENSES AND (DEFICIT)
================================================================================
<TABLE>
<CAPTION>
Nine months ended September 30, 1997 1996
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
REVENUE
Interest income $ 6,493 $ 7,291
- -------------------------------------------------------------------------------------------------------------
EXPENSES
Administrative 6,365 4,795
- -------------------------------------------------------------------------------------------------------------
NET INCOME 128 2,496
(DEFICIT), at beginning of period (1,946,065) (1,946,843)
- -------------------------------------------------------------------------------------------------------------
(DEFICIT), at end of period $ (1,945,937) (1,944,347)
=============================================================================================================
GAIN (LOSS) PER SHARE $ .00 $ .00
=============================================================================================================
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 8,100,000 8,100,000
=============================================================================================================
</TABLE>
See accompanying independent accountants' compilation report and note to
financial statements.
4
<PAGE> 6
UPWARD TECHNOLOGY CORPORATION
STATEMENTS OF CASH FLOWS
================================================================================
<TABLE>
<CAPTION>
Nine months ended September 30, 1997 1996
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 128 $ 2,496
(Decrease) in accrued liabilities (7,546) (3,679)
- -------------------------------------------------------------------------------------------------------------
NET CASH (USED IN) OPERATING ACTIVITIES (7,418) (1,183)
CASH AND CASH EQUIVALENTS, at beginning of period 206,267 205,943
- -------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, at end of period $ 198,849 $ 204,760
=============================================================================================================
</TABLE>
See accompanying independent accountants' compilation report and note to
financial statements.
5
<PAGE> 7
UPWARD TECHNOLOGY CORPORATION
NOTE TO FINANCIAL STATEMENTS
================================================================================
1. BASIS OF The accompanying unaudited financial statements
PRESENTATION have been prepared in accordance with generally
accepted accounting principles for interim
financial reporting and instructions to Form
10-QSB and of Regulation S-B (including Item
310(b) thereof). These statements do not include
all of the information and footnotes required by
generally accepted accounting principles for
complete financial statements. These statements
should be read in conjunction with the audited
financial statements for 1996 included in the
Company's Form 10-KSB Annual Report to the
Securities and Exchange Commission. In the
opinion of management, all adjustments necessary
(consisting only of normal recurring accruals)
for a fair presentation have been made to the
accompanying financial statements for the
interim periods.
The results of operations for the nine months
ended September 30, 1997 are not necessarily
indicative of results to be expected for the
entire year ending December 31, 1997.
See accompanying independent accountants' compilation report.
6
<PAGE> 8
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis provides information which the
Company's management believes is relevant to an assessment and understanding of
the Company's results of operations and financial condition. This discussion
should be read in conjunction with the financial statements and notes thereto
included elsewhere herein.
RESULTS OF OPERATIONS
The Company, having sold its operating assets in 1989, had no
operations for the quarter ending September 30, 1997. Although the Company is
spending only minimum amounts to keep current with required Exchange Act
filings and stock transfers, declining interest rates continue to erode the
Company's principal asset, cash and cash equivalents.
Management is continuing to search for a suitable merger partner that
can utilize our public vehicle. There is no assurance that a suitable partner
will be found in the near future, although management continues to review
business plans of companies seeking such a combination.
LIQUIDITY AND CAPITAL RESOURCES
All assets are cash or cash equivalents. The Company's working
capital and cash position at September 30, 1997 is approximately $199,000.
Because the regulatory and accounting expenses for maintaining the corporate
structure exceeds the low interest yield on the Company's cash deposits,
liquidity can be expected to diminish.
7
<PAGE> 9
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None
8
<PAGE> 10
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, duly authorized at Bala Cynwyd, Pennsylvania on the 13th day of
November, 1997.
UPWARD TECHNOLOGY CORPORATION
BY: /s/ ALBERT M. ZLOTNICK
----------------------------
Albert M. Zlotnick, President
and Chief Executive Officer
BY: /s/ IRVING I. LASSOFF
---------------------
Irving I. Lassoff, Secretary, Treasurer
and Principal Financial Officer
9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 198,849
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 422
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 199,271
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 162,000
<OTHER-SE> 37,271
<TOTAL-LIABILITY-AND-EQUITY> 199,271
<SALES> 0
<TOTAL-REVENUES> 6,493
<CGS> 0
<TOTAL-COSTS> 6,365
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 128
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 128
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
