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 June 30, 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 [ ]
No [ X]
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.
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FORM 10-QSB
FASHION TECH INTERNATIONAL, INC.
INDEX
Page
PART I. Financial Information
Financial Statements
Balance Sheets - June 30, 1999 and
March 31, 1999 3
Statements of Operations - Three Months
Ended June 30, 1999 and 1998, and
Beginning of Development Stage to June 4
30, 1999
Statements of Cash Flows - Three Months
Ended June 30, 1999 and 1998, and
Beginning of Development Stage to June 5
30, 1999
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
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
June 30, March 31,
1999 1999
(Unaudited)
CURRENT ASSETS
Cash $ 10,934 $ 19,846
Total Current Assets 10,934 19,846
TOTAL ASSETS $ 10,934 $ 19,846
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Accrued interest $ - $ 111
Accounts payable 5,224 6,401
Notes payable - 22,000
Total Current Liabilities 5,224 28,512
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock authorized: 120,000,000
common shares at $0.001 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 (134,780) (126,722)
Total Stockholders' Equity (Deficit) 5,710 (8,666)
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 10,934 $ 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)
From the
Beginning of
Development
Stage on
For the April 1,
Three Months Ended 1985 Through
June 30, June 30,
1999 1998 1999
REVENUES $ - $ - $ -
EXPENSES
General and administrative 7,735 2,147 136,290
Total Expenses 7,735 2,147 136,290
OTHER (EXPENSE) INCOME
Interest expense (323) (29) (434)
Gain on disposal of assets - - 1,944
Total Other (Expense) Income (323) (29) 1,510
NET LOSS $ (8,058) $ (2,176) $ (134,780)
BASIC LOSS PER SHARE $ (0.01) $ (0.00)
WEIGHTED AVERAGE NUMBER OF
SHARES 2,668,066 591,143
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)
From the
Beginning of
Development
Stage on
For the April 1,
Three Months Ended 1985 Through
June 30, June 30,
1999 1998 1999
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss $ (8,058) $ (2,176) $ (134,780)
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 (1,177) 2,147 3,280
Increase (decrease) in accrued interest 323 29 434
Net Cash (Used) by Operating
Activities (8,912) - (121,066)
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 (8,912) - 10,934
CASH AT BEGINNING OF PERIOD 19,846 - -
CASH AT END OF PERIOD $ 10,934 $ - $ 10,934
CASH PAYMENTS FOR:
Income taxes $ - $ - $ -
Interest $ - $ - $ -
NON-CASH FINANCING ACTIVITIES:
Common stock issued for debt $ 22,434 $ - $ 22,434
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
June 30, 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 June 30, 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
June 30, 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 Month periods Ended June 30, 1999 and 1998
The Company had no revenue from continuing operations for the
three-month periods ended June 30, 1999 and 1998.
General and administrative expenses for the three month periods
ended June 30, 1999 and 1998, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs. These expenses were $7,735 and $2,147 for
the three-month periods ended June 30, 1999 and 1998,
respectively.
Interest expense in the three-month periods ended June 30, 1999
and 1998, was $323 and $29, respectively.
As a result of the foregoing factors, the Company realized a net
loss of $8,058 for the three months ended June 30, 1999, as
compared to a net loss of $2,176 for the same period in 1998.
Liquidity and Capital Resources
In April 1999, the stockholders approved a 100 to 1 reverse split
of the Company's outstanding common stock, reducing the number of
outstanding shares to 591,143. Upon conversion of an outstanding
debt, the Company issued an additional 3,000,000 shares in June
1999.
At June 30, 1999, the Company had working capital of
approximately $5,710, as compared to a working capital deficit of
$8,666 at March 31, 1998. The improvement in working capital is
attributable to the conversion of $22,000 in debt to 3,000,000
shares of common stock. 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 June 30, 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: January 20, 2000 By: /s/ Pam Jowett, President
8
<PAGE>
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<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> JUN-30-1999
<CASH> 10,934
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
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0
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<CHANGES> 0
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