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 March 31, 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
7,958,367
(Number of shares of common
stock the registrant had
outstanding as of May 1, 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 March 31, 2000 and the results of its operations and changes
in its financial position from September 30, 1999 through March 31, 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 March 31, 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 six month period ended March 31, 1999 and the three months ended December
31, 1999 were not audited by us and, accordingly, we do not express an
opinion on them.
Crouch, Bierwolf & Chisholm
Salt Lake City, Utah
May 19, 2000
CYTTRAN INTERNATIONAL, INC.
Balance Sheet
ASSETS
March 31, September 30,
2000 1999
(Reviewed) (Audited)
TOTAL ASSETS $ - $ -
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;
7,958,367 shares issued and outstanding 79,583 79,583
Capital in Excess of Par Value 864,941 864,941
Retained Deficit (944,724) (944,724)
Total Stockholders' Equity (200) (200)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ - $ -
CYTTRAN INTERNATIONAL, INC.
Statement of Stockholders' Equity
March 31, 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)
Loss, March 31, 2000 - - - -
Balance, March 31, 2000
(unaudited) 7,958,367 79,583 863,441 (944,724)
CYTTRAN INTERNATIONAL, INC.
Statements of Operations
For the Three For the Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
(Reviewed) (Unaudited) (Unaudited) (Unaudited)
REVENUE $ - $- $ - $-
EXPENSES - - -
-
NET INCOME (LOSS)
-Before Taxes $ - $ - $ - $-
Taxes - - - -
INCOME (LOSS) $ - $ - $-
$-
Loss Per Common Share $ - $ - $-
$ -
Average Outstanding
Shares 7,958,367 7,598,367 7,958,367 7,598,367
CYTTRAN INTERNATIONAL, INC.
Statements of Cash Flows
For the Three For the Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
(Reviewed) (Unaudited) (Unaudited) (Unaudited)
CASH FLOWS FROM
OPERATING ACTIVITIES $ - $ - $ - $-
Net Income (Loss) - - - -
- - - -
CASH FLOWS FROM
INVESTING ACTIVITIES - - - -
- - - -
CASH FLOWS FROM
FINANCING ACTIVITIES - - - -
- - - -
INCREASE (DECREASE)
IN CASH AND CASH
EQUIVALENTS - - - -
CASH AND CASH
EQUIVALENTS AT THE
BEGINNING OF PERIOD - - - -
CASH AND CASH
EQUIVALENTS AT
END OF PERIOD $ - $ - $ - $-
CASH PAID DURING
THE PERIOD FOR:
Interest $ - $ - $ - $ -
Income Taxes (Including
Penalties & Interest) $ - $ - $ - $-
CYTTRAN INTERNATIONAL, INC.
Notes to the Financial Statements
March 31, 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 and 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 efundable 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 accountingtransactions for tax and financial reporting purposes.
There were no emporary 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
March 31, 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 $(200)
as operating capital at March 31, 2000. The Registrant intends to raise
additional funds as needed through private placements with accredited and
sophisticated investors.
Results of Operation. Due to the lack of operations during the quarters
and six months ended March 31, 2000 and March 31, 1999, the registrant had no
net income.
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 be successful 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 May 1, 2000
Cyttran International, Inc.
s/s Crouch, Bierwolf & Chisholm
Salt Lake City, UT
