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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 JUNE 30, 1996
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)
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NEW YORK 11-1714403
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
301 CITY AVENUE, BALA CYNWYD, PA 19004
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(Address of principal executive offices) (Zip Code)
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610 667-8225
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(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
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APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares outstanding of the issuer's common stock as of
July 31, 1996 was 8,100,000.
Transitional Small Business Disclosure Format (check one): Yes No X
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TABLE OF CONTENTS
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PART I - FINANCIAL INFORMATION: PAGE NO.
ITEM 1. Balance Sheets as of December 31, 1995
and September 30, 1996 3
Statements of Operations
Nine Months Ended September 30, 1996 4
Statement of Cash Flows
Nine Months Ended 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
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UPWARD TECHNOLOGY CORPORATION
STATEMENTS OF ASSETS, LIABILITIES AND STOCKHOLDER'S EQUITY
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<CAPTION>
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June 30, December 31,
1996 1995
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ASSETS
CURRENT
Cash and cash equivalents $ 202,751 $ 205,943
Prepaid expenses 422 422
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TOTAL ASSETS $ 203,173 $ 206,365
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LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT
Accrued liabilities $ 4,221 $ 8,000
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TOTAL CURRENT LIABILITIES 4,221 8,000
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STOCKHOLDER'S EQUITY
Common stock, par value $.02 per share
Authorized 24,000,000 shares
Issued and outstanding 8,100,000 shares 162,000 162,000
Additional paid-in capital 1,983,208 1,983,208
(Deficit) (1,946,256) (1,946,843)
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TOTAL STOCKHOLDER'S EQUITY 198,952 198,365
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$ 203,173 $ 206,365
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UPWARD TECHNOLOGY CORPORATION
STATEMENTS OF REVENUE, EXPENSES AND (DEFICIT)
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<CAPTION>
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Six months Year
ended ended
June 30, December 31,
1996 1995
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REVENUE
Interest income $ 4,855 $ 11,012
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EXPENSES
Administrative 4,268 19,677
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NET INCOME (LOSS) 587 (8,665)
(DEFICIT), at beginning of period/year (1,946,843) (1,938,178)
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(DEFICIT), at end of period/year $(1,946,256) $(1,946,843)
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GAIN (LOSS) PER SHARE $ .00 $ .00
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WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 8,100,000 8,100,000
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UPWARD TECHNOLOGY CORPORATION
STATEMENTS OF CASH FLOWS
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<CAPTION>
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Six months Year
ended ended
June 30, December 31,
1996 1995
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CASH FLOWS FROM OPERATING ACTIVITIES
Income (loss) $ 587 $ (4,831)
(Decrease) increase in accrued liabilities (3,779) 3,260
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NET CASH (USED) IN OPERATING ACTIVITIES (3,192) (1,571)
CASH AND CASH EQUIVALENTS, at beginning of
period/year 205,943 208,618
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CASH AND CASH EQUIVALENTS, at end of
period/year $ 202,751 $ 207,047
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UPWARD TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. BASIS OF The accompanying unaudited financial statements have been
PRESENTATION 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
1994 included in the Company's Form 10-KSB. Effective
January 1, 1993, the Company adopted Statement of
Financial Accounting Standards No. 109, "Accounting for
Income Taxes." Under SFAS No. 109, deferred income taxes
are recognized for the tax consequences in future years
of differences between the tax bases of assets and
liabilities and their financial reporting amounts at each
year-end based on enacted tax laws and statutory tax
rates applicable to the periods in which the differences
are expected to affect taxable income. The adoption of
SFAS No. 109 has not had a material impact on the
financial position of the Company. Due to the uncertainty
of future earnings, the Company fully reserved for any
assets relating to net operating loss carryforwards. 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.
It is suggested that these financial statements be read
in conjunction with the financial statements and the
notes thereto for the six months ended June 30, 1996,
included in the Upward Technology Corporation Form 10-KSB
Annual Report to the Securities and Exchange Commission.
The results of operations for the six months ended June
30, 1996 are not necessarily indicative of results to be
expected for the entire year ending December 31, 1996.
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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 June 30, 1996. Although the Company is
spending only minimum amounts to keep current with required Exchange Act
filings and stock transfers, declining interest rates being paid by Government
Bond Funds continue to erode the Company's principal asset, 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 invested in a liquid U.S. Government
securities fund. The Company's working capital and cash position at June 30,
1996 is approximately $200,000. 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.
5
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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
6
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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 Hauppauge, New York on the 15th day of February,
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
7
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<ARTICLE> 5
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<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 203,173
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 203,173
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 203,173
<CURRENT-LIABILITIES> 4,221
<BONDS> 0
0
0
<COMMON> 162,000
<OTHER-SE> 36,952
<TOTAL-LIABILITY-AND-EQUITY> 203,173
<SALES> 0
<TOTAL-REVENUES> 4,855
<CGS> 0
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<OTHER-EXPENSES> 4,268
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 587
<INCOME-TAX> 0
<INCOME-CONTINUING> 587
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<NET-INCOME> 587
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