U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 2-93231-NY
FASHION TECH INTERNATIONAL, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 87-0395695
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
1340 East 130 North, Springville, Utah 84663
(Address of principal executive offices)
(801) 364-9262
(Issuer's telephone number)
Not Applicable
(Former name, address and fiscal year, if changed since last
report)
Check whether the issuer (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the issuer
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 ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13, or 15(d) of the
Exchange Act subsequent to the distribution of securities under
a plan confirmed by a court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
3,591,143 shares of common stock.
<PAGE>
FORM 10-QSB
FASHION TECH INTERNATIONAL, INC.
INDEX
Page
PART I. Financial Information 2
Financial Statements 3
Balance Sheets - December 31, 1999 and 3
March 31, 1999
Statements of Operations - Three and Nine Months 4
Ended December 31, 1999 and 1998, and
Beginning of Development Stage to
December 31, 1999
Statements of Cash Flows - Three and Nine Months 5
Ended December 31, 1999 and 1998, and
Beginning of Development Stage to
December 31, 1999
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of 7
Financial Condition and Results of
Operations
PART II. Other Information 8
Signatures 8
PART I.
Financial Information
In the opinion of management, the accompanying unaudited
financial statements included in this Form 10-QSB reflect all
adjustments (consisting only of normal recurring accruals)
necessary for a fair presentation of the results of operations
for the periods presented. The results of operations for the
periods presented are not necessarily indicative of the results
to be expected for the full year.
2
<PAGE>
FASHION TECH INTERNATIONAL, INC.
(A Development Stage Company)
Balance Sheets
ASSETS
December 31, March 31,
1999 1999
(Unaudited)
CURRENT ASSETS
Cash $ 4,762 $ 19,846
Total Current Assets 4,762 19,846
TOTAL ASSETS $ 4,762 $ 19,846
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accrued interest $ - $ 111
Accounts payable - 6,401
Notes payable - 22,000
Total Current Liabilities - 28,512
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock authorized: 120,000,000 common
shares at $0.005 par value; 3,591,143 and 591,143
shares issued and outstanding, respectively 3,591 591
Capital in excess of par value 550,448 531,014
Accumulated deficit prior to April 1, 1985 (413,549) (413,549)
Deficit accumulated during the development
stage (135,728) (126,722)
Total Stockholders' Equity (Deficit) 4,762 (8,666)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 4,762 $ 19,846
The accompanying notes are an integral part of these financial
statements.
3
<PAGE>
FASHION TECH INTERNATIONAL, INC.
(A Development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
From the
Beginning of
Development
Stage on
For the For the April 1,
Three Months Ended Nine Months Ended 1985 Through
December 31, December 31, December 31,
1999 1998 1999 1998 1999
<S> <C> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ - $ -
EXPENSES
General and administrative 784 2,232 8,683 6,401 136,454
Total Expenses 784 2,232 8,683 6,401 136,454
OTHER (EXPENSE) INCOME
Interest expense - (28) (323) (86) (434)
Gain on disposal of assets - - - - 1,944
Total Other (Expense) Income - (28) (323) (86) 1,510
NET LOSS $ (784) $ (2,260) $ (9,006) $ (6,487) $(135,728)
BASIC LOSS PER SHARE $ (0.00) $ (0.01) $ (0.00) $ (0.01)
WEIGHTED AVERAGE NUMBER OF
SHARES 3,591,143 591,143 3,285,688 591,143
</TABLE>
The accompanying notes are an integral part of these financial
statements.
4
<PAGE>
FASHION TECH INTERNATIONAL, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
From the
Beginning of
Development
Stage on
For the For the April 1,
Three Months Ended Nine Months Ended 1985 Through
December 31, December 31, December 31,
1999 1998 1999 1998 1999
<S>
CASH FLOWS FROM OPERATING
ACTIVITIES
<C> <C> <C> <C> <C>
Net loss $ (784) $ (2,260) $ (9,006) $ (6,487) $ (135,728)
Adjustments to reconcile net loss to
net cash used by operating activities:
Issuance of stock for services - - - - 10,000
Changes in operating assets and
liability accounts:
Increase (decrease) in accounts payable (3,950) 2,232 (6,401) 6,401 1,944
Increase (decrease) in accrued interest - 28 323 86 434
Net Cash (Used) by Operating
Activities (4,734) - (15,084) - (127,238)
CASH FLOWS FROM INVESTING
ACTIVITIES - - - - -
CASH FLOWS FROM FINANCING
ACTIVITIES
Increase in loans payable - - - - 22,000
Issuance of stock for assets - - - - 40,000
Issuance of stock for cash - - - - 70,000
Net Cash Provided by Financing
Activities - - - - 132,000
NET INCREASE (DECREASE) IN CASH (4,734) - (15,084) - 4,762
CASH AT BEGINNING OF PERIOD 9,496 - 19,846 - -
CASH AT END OF PERIOD $ 4,762 $ - $ 4,762 $ - $ 4,762
CASH PAYMENTS FOR:
Income taxes $ - $ - $ - $ - $ -
Interest $ - $ - $ - $ - $ -
SCHEDULE OF NON-CASH FINANCING ACTIVITIES:
Common stock issued for debt $ - $ $ 22,434 $ - $ 22,434
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
FASHION TECH INTERNATIONAL, INC.
(A Development Stage Company)
Notes to the Financial Statements
December 31, 1999 and March 31, 1999
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared
by the Company without audit. In the opinion of
management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the
financial position, results of operations and cash flows
at December 31, 1999 and 1998 and for all periods
presented have been made.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance
with generally accepted accounting principles have been
condensed or omitted. It is suggested that these
condensed financial statements be read in conjunction
with the financial statements and notes thereto included
in the Company's March 31, 1999 audited financial
statements. The results of operations for periods ended
December 31, 1999 and 1998 are not necessarily indicative
of the operating results for the full years.
NOTE 2 - GOING CONCERN
The Company's financial statements are prepared using
generally accepted accounting principles applicable to a
going concern which contemplates the realization of
assets and liquidation of liabilities in the normal
course of business. However, the Company does not have
significant cash or other material assets, nor does it
have an established source of revenues sufficient to
cover its operating costs and to allow it to continue as
a going concern. It is the intent of the Company to seek
a merger with an existing, operating company. In the
interim, shareholders of the Company have committed to
meeting its minimal operating expenses.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Three and Nine Month periods Ended December 31, 1999 and 1998
The Company had no revenue from continuing operations for the
nine-month periods ended December 31, 1999 and 1998.
General and administrative expenses for the nine month periods
ended December 31, 1999 and 1998, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs. These expenses were $8,683 and $6,401 for
the Nine-month periods ended December 31, 1999 and 1998,
respectively.
Interest expense in the nine-month periods ended December 31,
1999 and 1998, was $323 and $86, respectively.
As a result of the foregoing factors, the Company realized a net
loss of $9,006 for the nine months ended December 31, 1999, as
compared to a net loss of $6,487 for the same period in 1998.
Liquidity and Capital Resources
At December 31, 1999, the Company had working capital of
approximately $4,762, as compared to a working capital deficit of
$8,666 at March 31, 1999. Although this is an improvement from
March 31, 1999, it is lower than the working capital at September
30, 1999, of approximately $5,546. This is attributable to a net
decrease in cash, primarily due to a net increase of cash used in
operating activities.
Management believes that the Company has sufficient cash to meet
the anticipated needs of the Company's operations through at
least the next 12 months. However, there can be no assurances to
that effect, as the Company has no significant revenues and the
Company's need for capital may change dramatically if it acquires
an interest in a business opportunity during that period.
The Company's current operating plan is to (i) handle the
administrative and reporting requirements of a public company,
and (ii) search for potential businesses, products, technologies
and companies for acquisition. At present, the Company has no
understandings, commitments or agreements with respect to the
acquisition of any business venture, and there can be no
assurance that the Company will identify a business venture
suitable for acquisition in the future. Further, there can be no
assurance that the Company would be successful in consummating
any acquisition on favorable terms or that it will be able to
profitably manage any business venture it acquires.
7
<PAGE>
PART II. OTHER INFORMATION
EXHIBITS AND REPORTS ON FORM 8-K
EXHIBITS: Included only with the electronic filing of this
report is the Financial Data Schedule for the three-month period
ended December 31, 1999 (Exhibit Ref. No. 27).
REPORTS ON FORM 8-K: None
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FASHION TECH INTERNATIONAL, INC.
Date: February 10, 2000 By: /s/ Pam Jowett, President
8
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> DEC-31-1999
<CASH> 4,762
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,762
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,762
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 3,591
<OTHER-SE> 550,448
<TOTAL-LIABILITY-AND-EQUITY> 4,762
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 8,683
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 323
<INCOME-PRETAX> (9,006)
<INCOME-TAX> 0
<INCOME-CONTINUING> (9,006)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,006)
<EPS-BASIC> (0)
<EPS-DILUTED> (0)
</TABLE>
