FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
Of the Securities Exchange Act of 1934
For Quarter Ended June 30, 2000
Commission File Number 2-79056
CYTTRAN INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-2325592
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6975 SOUTH 1300 EAST # 600
MIDVALE, UTAH 84047
(Address of principal executive offices)
Registrant's telephone number
including area code (801) 256-9600
Former Address, if changed since last report
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 such shorter period that the
registrant was required to file such reports)
Yes No X
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
37,958,367
(Number of shares of common
stock the registrant had
outstanding as of July 26, 2000)
PART 1
ITEM 1 - FINANCIAL STATEMENTS
The condensed financial statements included herein have been prepared by
the Company, pursuant to the rules and regulations of the Securities and
Exchange Commission.
In the opinion of the Company, all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position of
the Company as of June 30, 2000 and the results of its operations and changes
in its financial position from September 30, 1999 through June 30, 2000 have
been made. The results of its operations for such interim period is not
necessarily indicative of the results to be expected for the entire year.
INDEPENDENT AUDITOR'S REVIEW REPORT
To the Board of Directors
Cyttran International, Inc.
Salt Lake City, Utah
We have reviewed the accompanying balance sheet of Cyttran International, Inc.
as of June 30, 2000, and the related statements of income, stockholders'
equity, and cash flows for the period then ended, in accordance with
Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants. All information included
in these financial statements is the representation of the management of
Cyttran International, Inc.
A review consists principally of inquiries of Company personnel and analytical
procedures applied to financial data. It is substantially less in scope than
an audit in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements in order for them to
be in conformity with generally accepted accounting principles.
The accompanying balance sheet as of September 30, 1999 was audited by us and
we expressed an unqualified opinion on it in our report dated January 21, 2000.
The accompanying statement of operations and cash flows for the three month
and nine month periods ended June 30, 1999 were not audited by us and,
accordingly, we do not express an opinion on them.
Crouch, Bierwolf & Chisholm
Salt Lake City, Utah
July 26, 2000
CYTTRAN INTERNATIONAL, INC.
Balance Sheet
ASSETS
June 30, September 30,
2000 1999
(Reviewed) (Audited)
CURRENT ASSETS
Cash $ 20,000 $ -
TOTAL ASSETS $ 20,000 $ -
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Taxes Payable 200 200
Total Current Liabilities 200 200
STOCKHOLDERS' EQUITY
Common Stock 50,000,000 shares
authorized at $.001 par value;
37,958,367 shares issued and outstanding 109,583 79,583
Capital in Excess of Par Value 864,941 864,941
Retained Deficit (954,724) (944,724)
Total Stockholders' Equity 19,800 (200)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 20,000 -
CYTTRAN INTERNATIONAL, INC.
Statement of Stockholders' Equity
June 30, 2000
Additional
Common Common Paid -in Retained
Shares Stock Capital Deficit
Balance, September 30, 1998
(Audited) 7,958,367 79,583 863,441 (944,524)
Loss for the Year - - - (200)
Balance, September 30, 1999
(Audited) 7,958,367 79,583 863,441 (944,724)
Shares issued for services
-April 2000 10,000,000 10,000 - -
Shares issued for cash
-April 2000 20,000,000 20,000 - -
Loss, June 30, 2000 - - - (10,000)
Balance, June 30, 2000
(unaudited) 37,958,367 109,583 863,441 (954,724)
CYTTRAN INTERNATIONAL, INC.
Statements of Operations
For the Three For the Three For the Nine For the Nine
Months Ended Months Ende d Months Ended Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
(Reviewed) (Unaudited) (Reviewed) (Unaudited)
REVENUE $ - $- $ - $-
EXPENSES 10,000 - 10,000 -
NET INCOME (LOSS)
-Before Taxes $(10,000) $ - $ (10,000) $-
Taxes - - - -
INCOME (LOSS) $ (10,000) $ -
$(10,000) $-
Loss Per Common Share $ - $ - $- $ -
Average Outstanding
Shares 37,958,367 7,598,367 17,598,367 7,598,367
CYTTRAN INTERNATIONAL, INC.
Statements of Cash Flows
For the Three For the Three For the Nine For the Nine
Months Ended Months Ended Months Ended Months Ended
June 30, June 30, June 30, June 30,
2000 1999 2000 1999
(Reviewed) (Unaudited) (Reviewed) (Unaudited)
CASH FLOWS FROM
OPERATING ACTIVITIES
Net Income
(Loss) $ (10,000) $ - $(10,000) $-
Increase (decrease) in
Taxes payable - - - (1,500)
Expenses paid by stock
Issuance 10,000 - 10,000 -
- - - (1,500)
CASH FLOWS FROM
INVESTING ACTIVITIES - - - -
CASH FLOWS FROM
FINANCING ACTIVITIES
Issuance of common
stock for cash 20,000 - 20,000 1,500
20,000 - 20,000 1,500
INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS 20,000 - 20,000 -
CASH AND CASH
EQUIVALENTS AT THE
BEGINNING OF PERIOD - - - -
CASH AND CASH
EQUIVALENTS AT
END OF PERIOD $ 20,000 $ - $ 20,000 $-
CASH PAID DURING
THE PERIOD FOR:
Interest $ - $ - $ - $ -
Income Taxes (Including
Penalties & Interest) $ - $ - $ - $1,500
CYTTRAN INTERNATIONAL, INC.
Notes to the Financial Statements
June 30, 2000
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Background and History Cyttran International, Inc. was incorporated in
the state of New Jersey on October 20, 1980 and was formerly in the business
of designing, developing, manufacturing, and marketing advanced ceramic
cutting tools used by industrial manufacturers. The Company sold off or
abandoned all of its assets related to that industry in 1990 and has had no
operations since that time.
Cash and Cash Equivalents The Company considers all highly liquid
investments with maturities of three months or less to be cash equivalents.
NOTE 2 -INCOME TAXES
The Company adopted Statement of Financial Standards No. 109 "Accounting
for Income taxes" in the fiscal year ended September 30, 1999 which was applied
retroactively.
Statement of Financial Accounting Standards No. 109 " Accounting for
Income Taxes" requires an asset and liability approach for financial
accounting and reporting for income tax purposes. This statement recognizes
(a) the amount of taxes payable or refundable for the current year and (b)
deferred tax liabilities and assets for future tax consequences of events
that have been recognized in the financial statements or tax returns.
Deferred income taxes result from temporary differences in the
recognition of accounting transactions for tax and financial reporting
purposes. There were no temporary differences at September 30, 1999 and
earlier years; accordingly, no deferred tax liabilities have been recognized
for all years.
The Company has cumulative net operating loss carryforwards of
approximately $1,500 at September 30, 1999. No effect has been shown in the
financial statements for the net operating loss carryforwards as the
likelihood of future tax benefit from such net operating loss carryforwards is
not presently determinable. Accordingly, the potential tax benefits of
the net operating loss carryforwards, estimated based upon current tax
rates at September 30, 1998 have been offset by valuation reserves of the same
amount.
The Company has available approximately $1,500 in net operating loss
carryforwards that will begin to expire in the year 2010. The Company has
accrued $200 per year minimum state income taxes.
CYTTRAN INTERNATIONAL, INC.
Notes to the Financial Statements
June 30, 2000
NOTE 3 - USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements and revenues and expenses during the reporting period. In these
financial statements, assets, liabilities and earnings involve extensive
reliance on management's estimates. Actual results could differ from those
estimates.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources. The Registrant has approximately
$19,800 as operating capital at June 30, 2000. The Registrant intends to raise
additional funds as needed through private placements with accredited and
sophisticated investors.
Results of Operation. During the quarter and nine months ended June 30,
2000 the registrant had a net loss of $10,000. During the same time periods
of the previous year, the Company had no net income due to a lack of operations.
Plan of Operations. The Company is currently in the process of looking
for business opportunities to acquire or merge with. There is no guarantee
that management will besuccessful in finding such an opportunity. The Company
is also in the process of bringing all of its periodic reports current for
filing with the Securities and Exchange Commission. During this process, the
Company intends to raise operational capital through private placements.
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
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 authorized officer.
Dated July 26, 2000
Cyttran International, Inc.
/s/ Robert Wallace
We hereby consent to the use of our review report of Cyttran International,
Inc. dated July 26, 2000
for the period ended June 30, 2000 in the Form 10QSB Report for the period
then ended.
s/s Crouch, Bierwolf & Chisholm
Salt Lake City, UT
