UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB/A-1
(Mark One)
[X] Annual report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the fiscal year ended May 31, 1991.
[ ] Transition report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 (no fee required) for the transition period from
____________________ to _______________________.
Commission file number: 0-17371
HYTK INDUSTRIES, INC.
(Name of Small Business Issuer in Its Charter)
Nevada 88-0182808
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
2133 East 9400 South, Suite 151 - Sandy, Utah 84093
(Address of Principal Executive Offices)
(801) 944-0701
(Issuer's Telephone Number, Including Area Code)
Securities Registered Under Section 12(g) of the Exchange Act:
Title of Class: Common Stock, $0.001 Par Value
Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 __ No XX
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B not contained in this form, and no disclosure will be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [ ]
The issuer had no revenues for the year ended May 31, 1992.
The aggregate market value of the voting stock held by non-affiliates computed
by reference to the average bid and asked prices of such stock, as of August 31,
1997 was $0.00, because the Company's Common Stock was not traded on a stock
market or quotation system.
The number of shares outstanding of the issuer's common stock as of August 31,
1997 was 52,266.
<PAGE>
EXPLANATORY NOTE
The following audited financial statements are hereby provided in
response to a February 23, 1994 Order Instituting Public Administrative
Proceeding Pursuant to Section 21C of the Securities Exchange Act (the "Order").
The Order was the result of the Security Exchange Commission's determination
that the Company had improperly recorded a real estate transaction as a purchase
and leaseback instead of a financing transaction. The Order required the Company
to file audited financial statements which properly account for the transaction
within 90 days of commencing operations.
<PAGE>
Sellers & Associates
CERTIFIED PUBLIC ACCOUNTANT Fax (801) 627-1639
378 Harrison Blvd. Suite 101, Ogden, Utah 84403 (801) 621-8128
INDEPENDENT PUBLIC ACCOUNTANT'S REPORT
Board of Directors
HYTK Industries, Inc. and Subsidiaries
Salt Lake City, Utah
We have audited the accompanying balance sheets of HYTK Industries, Inc. and
Subsidiaries as of May 31, 1991 and 1990 and the related statements of
operations, stockholders' equity, and cash flows for the years ended May 31,
1991, 1990 and 1989. These financial statements are the responsibilities of the
Company's Management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
As discussed in Note 6 to the financial statements, the Company transferred its
assets in a bulk sale May 20, 1992. An officer of the Company owned 40% of the
acquiring corporation. The acquiring corporation assumed the Company debts
without additional consideration as the debts were equal to or exceeded the
value of the assets transferred. The financial records of the Company were also
transferred to the acquiring corporation. Since that time, the acquiring
corporation has changed ownership and management and the financial records of
the Company through May 31, 1992 have become lost, destroyed, or otherwise made
unavailable by the corporation. Because of this, we have relied primarily on the
prior audits unaudited financial statements of the Company as previously
provided in reports filed with the Securities and Exchange Commission. Although
we have generally satisfied ourselves as to the overall reasonableness of such
financial data, we were unable to satisfy ourselves as the correctness and
accuracy of the statements of cash flows as provided in these financial
statements.
In our opinion, except as explained paragraph, the financial statements referred
to above present fairly, in all material respects, the financial position of
HYTK Industries, Inc. and Subsidiaries as of May 31, 1991 and 1990 and the
results of its operations and its cash flows for the years ended May 31, 1991
and 1990, and 1989 in conformity with generally accepted accounting principles.
The accompanying financial statements have been presented assuming the Company
will continue as a going concern. As discussed in Noted 5 and 6 to the financial
statements, the Company disposed of all its assets May 20, 1992 and has not
generated revenue since. This raises substantial doubt about its ability to
continue as a going concern. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
May 20, 1997
<PAGE>
HYTK INDUSTRIES, INC. AND SUBSIDIARIES
Consolidated Balance Sheet
May 31, 1991 and 1990
May 31, 1991 May 31, 1990
---------- ----------
ASSETS
Current Assets:
Cash and cash equivalents .................... $ 5,461 $ 15,950
Accounts receivable, other ................... -- 46,568
Income tax receivable ........................ 22,250 15,100
----------- -----------
27,711 77,618
----------- -----------
Property, plant and equipment ..................... -- 4,768
Less accumulated depreciation and amortization -- 477
----------- -----------
-- 4,291
----------- -----------
Other Assets:
Investment in marketable securities .......... 12,000 118,541
Deposits ..................................... -- 2,500
Deferred registration cost ................... -- 171,464
Other assets, discontinued operations,
net of associated liabilities ............. 380,347 759,478
----------- -----------
392,347 1,051,983
----------- -----------
TOTAL ASSETS ...................................... $ 420,058 $ 1,133,892
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable ............................. $ 6,800 $ 45,685
----------- -----------
6,800 45,685
----------- -----------
Noncurrent Liabilities:
Note payable, related party .................. 25,000 --
Deferred income taxes ........................ 14,300 14,300
----------- -----------
39,300 14,300
----------- -----------
Commitments and contingencies ..................... -- --
Stockholders' Equity
Preferred stock, par value $.001,
50,000,000 shares authorized,
no share issued and outstanding .......... -- --
Common stock, par value $.001
950,000,000 shares authorized,
issued and outstanding shares
of 25,226 in 1991 and 17,860 in 1990 ...... 25 18
Additional paid-in-capital ................... 1,106,032 890,044
Retained earnings (deficit) .................. (548,529) 183,845
----------- -----------
557,528 1,073,907
Less unearned compensation ................... 183,570 --
----------- -----------
373,958 1,073,907
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY ........ $ 420,058 $ 1,133,892
=========== ===========
See notes to financial statements.
F-1
<PAGE>
<TABLE>
<CAPTION>
HYTK INDUSTRIES, INC. AND SUBSIDIARIES
Statements of Operations
For the Years Ended May 31, 1991, 1990 and 1989
May 31, May 31, May 31,
1991 1990 1989
--------- --------- -----------
<S> <C> <C> <C>
Revenues ................................................................. $ -- $ -- $ --
--------- --------- -----------
Operating Expenses
Salaries and payroll taxes .......................................... 66,218 73,608 59,465
Professional fees ................................................... 47,827 20,490 14,247
General and administrative .......................................... 18,505 13,907 17,356
Bad debt ............................................................ -- 14,740 50,000
Rent and utilities .................................................. 17,124 10,800 11,160
Insurance ........................................................... -- 930 691
Depreciation and amortization ....................................... 4,291 -- 477
Other ............................................................... 4,115 24,642 --
--------- --------- -----------
158,080 159,117 153,396
--------- --------- -----------
Non-Operating Income (Expense)
Write-off deferred registration costs ............................... (147,307) (109,331) --
Consulting income ................................................... -- -- 118,541
Interest income ..................................................... 132 672 22,253
Miscellaneous ....................................................... (500) -- --
Loss on disposition of investments .................................. (222,107) -- --
--------- --------- -----------
(369,782) (108,659) 140,794
--------- --------- -----------
Income (Loss) from continuing operations
before income taxes and extraordinary item .......................... (527,862) (267,776) (12,602)
Provision for income taxes ............................................... -- (3,900) 4,000
Gain (loss) from discontinued operations, net of income tax benefit ...... (204,512) 266,770 167,226
Gain on disposal of discontinued operations .............................. -- 2,403 --
--------- --------- -----------
(204,512) 269,173 167,226
--------- --------- -----------
Income (loss) before extraordinary item .................................. $(732,374) $ (2,503) $ 158,624
Extraordinary item, reduction of income tax arising from carryforward
of prior year operating losses ...................................... -- -- 28,100
--------- --------- -----------
Net Income (loss) ........................................................ $(732,374) $ (2,503) $ 186,724
========= ========= ===========
Earnings (loss) per share:
Loss for continuing operations ...................................... $ (26.79) $ (15.05) $ (0.87)
========= ========= ===========
Income (loss) from discontinued operations .......................... $ (10.38) $ 15.13 $ 11.00
========= ========= ===========
Net income (loss) ................................................... $ (37.17) $ (0.14) $ 12.95
========= ========= ===========
Weighted-average shares outstanding ...................................... 19,702 17,796 14,422
See notes to financial Statements.
F-2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
HYTK INDUSTRIES AND SUBSIDIARIES
Statements of Stockholders' Equity
Years Ended May 31, 1991, 1990 and 1989
Common Stock Treasury Stock
---------------------------------- ----------------------------------
Retained
Additional Earnings Total
Number of Paid In Number of (Deficit) Deferred Stockholders'
Shares Par Value Capital Shares Par value Accumulated Compensation Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balances, May 31, 1988 ........................... $ 14,304 $14 $ 818,829 67 $(375) $ (376) $ -- $ 818,092
Issuance of common stock
under stock bonus plan ...................... 6 -- 182 -- -- -- -- 182
Issuance of common stock ......................... 2,679 3 (3) -- -- -- -- 0
Issuance of common stock
to profit sharing plan ...................... 152 -- 30,336 (67) 375 -- -- 30,711
Issuance of common stock
for cash .................................... -- -- 1 -- -- -- -- 1
Net Income ....................................... -- -- -- -- -- 186,724 -- 186,724
---- --- ---------- --- ----- --------- --------- -----------
Balances, May 31, 1989 ........................... $ 17,141 $17 $ 849,345 -- $-- $ 186,348 $ -- $ 1,035,710
Issuance of common stock
under stock bonus plan ...................... 5 -- 700 -- -- -- -- 700
Issuance of common stock
to profit sharing plan ...................... 714 1 39,999 -- -- -- -- 40,000
Net Loss ......................................... -- -- -- -- -- (2,503) -- (2,503)
-------- --- ----------- --- ----- --------- --------- -----------
Balances, May 31, 1990 ........................... 17,860 $18 $ 890,044 -- $-- $ 183,845 $ -- $ 1,073,907
Exercise of common stock warrants ................ 466 -- 104,382 -- -- -- -- 104,382
Deferred offering costs .......................... -- -- (104,382) -- -- -- -- (104,382)
Issuance of common stock
under stock compensation plan ............... 6,982 7 218,416 -- -- -- (186,215) 32,208
Issuance of common stock
under stock bonus plan ...................... 7 -- 217 -- -- -- -- 217
Shares surrendered and canceled .................. (89) -- (2,645) -- -- -- 2,645 --
Net Loss ......................................... -- -- -- -- -- (732,374) -- (732,374)
-------- --- ----------- --- ----- --------- --------- -----------
Balances, May 31, 1991 ........................... $ 25,226 $25 $ 1,106,032 -- $-- $(548,529) $(183,570) $ 373,958
======== === =========== === ===== ========= ========= ===========
See notes to financial statements.
</TABLE>
F-3
<PAGE>
<TABLE>
<CAPTION>
HYTK INDUSTRIES, INC. AND SUBSIDIARIES
Statements of Cash Flows
For the Years Ended May 31, 1991, 1990 and 1989
May 31, May 31, May 31,
1991 1990 1989
-------------- -------------- ---------------
Cash Flows From Operating Activities
<S> <C> <C> <C>
Net income (loss) .......................................................... $(732,374) $ (2,503) $ 186,724
Noncash expenses (income) included in net income:
Loss on disposition of investments ...................................... 222,107 -- --
Write-off of deferred registration cost ................................. 147,307 -- --
Depreciation and amortization ........................................... 4,291 -- 477
Equipment provision for loss on note receivable ......................... -- 14,740 --
Issuance of common stock for services ................................... 32,425 700 182
Acquisition of marketable securities for consulting services ............ -- -- (118,541)
Issuance of stock to profit-sharing and stock bonus plan ................ -- 40,000 30,711
Change in assets and liabilities:
(Increase) decrease in account receivable, other ........................ 46,568 (46,063) (505)
(Increase) decrease in income tax receivable ............................ (7,150) (15,100) --
Decrease in other current assets ........................................ -- -- 40,100
(Increase) decrease in other assets, discontinued operations ............ 379,131 (83,730) 126,092
(Increase) decrease in other assets ..................................... 2,500 (2,500) --
Increase (decrease) in accounts payable and accrued expenses ............ (38,885) 26,934 (6,249)
Increase (decrease) in income taxes payable ............................. -- (28,500) 42,800
--------- --------- ---------
Net cash provided by (used for) operating activities ............................ 55,920 (96,022) 301,791
--------- --------- ---------
Cash Flows From Investing Activities
Repayment (payment) of note receivable, related party ...................... -- 200,000 (200,000)
Purchase of investment in marketable securities ............................ (115,566) -- --
Purchase of equipment ...................................................... -- -- (4,768)
--------- --------- ---------
Net cash provided by (used for) investing activities ............................ (115,566) 200,000 (204,768)
--------- --------- ---------
Cash Flows From Financing Activities
Payment received on notes receivable ....................................... -- 10,260 --
Increase in deferred registration costs .................................... (80,225) (100,468) (70,995)
Proceeds from note payable, related party .................................. 25,000 -- --
Payment of note payable, related party ..................................... -- -- (25,000)
Capitalization of deferred registration costs .............................. 104,382 -- --
--------- --------- ---------
Net cash provided by (used for) financing activities ............................ 49,157 (90,208) (95,995)
--------- --------- ---------
Increase (decrease) in cash and cash equivalents ................................ (10,489) 13,770 1,028
Cash and cash equivalents, beginning of year .................................... 15,950 2,180 1,152
--------- --------- ---------
Cash and cash equivalents, end of year .......................................... $ 5,461 $ 15,950 $ 2,180
========= ========= =========
Supplement Disclosures Of Cash Flow Information
Cash payments for Interest ................................................. $ 106,854 $ 104,231 $ 8,576
Cash payment for Income Taxes .............................................. $ -- $ -- $ 3,000
See notes to financial statements.
F-4
</TABLE>
<PAGE>
HYTK INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Years ended May 31, 1991, 1990 and 1989
Note 1. Nature of Business and Significant Accounting Policies
The Company's operations were in the telecommunications industry
specializing in the sales, installations and maintenance of telephone systems.
A summary of the Company's significant accounting policies follows:
Principles of consolidation:
HYTK Industries, Inc. was formerly known as Digitel of Las Vegas, Inc.
As of June 1, 1987, the Company's interconnect operations were
transferred to a wholly-owned subsidiary formed by the Company,
Digitel, Inc. , and the Company operates under the Digitel, Inc. name.
HYTK Industries Inc. acts only as a holding company for its subsidiary.
The consolidated financial statements include the accounts of HYTK
Industries Inc. and its wholly-owned subsidiary, Digitel, Inc. and US
Voice Corporation (fiscal 1989 only). All significant intercompany
accounts and transactions have been eliminated.
US Voice Corporation, a wholly-owned subsidiary of the Company, was
incorporated on January 12, 1989 to sell voice mail equipment and to
lease voice mail boxes on a monthly basis. On October 1, 1989,
operations of US Voice Corporation were discontinued.
Ditigel, Inc. operated in the telecommunications industry, specializing
in the sales, installation and maintenance of telephone and voice mail
systems. On June 30, 1992, operations of Ditigel, Inc. were
discontinued.
Inventories:
Inventories, consisting of supplies, telephone equipment and parts, are
stated at lower of cost (first-in, first-out method) or market.
Equipment and leasehold improvements:
Equipment and leasehold improvements, including assets acquired under
capital leases, are recorded at cost, and depreciation and amortization
are computed primarily using accelerated methods over the following
estimated useful lives of the assets: Years Equipment 5-10 Vehicles 5
Leasehold improvement 5 Furniture and fixtures 7
Recognition of revenue:
The Company recognizes sale and installation revenue upon the
completion of the installation. Maintenance revenue is recognized
ratably over the term of the maintenance contract.
<PAGE>
Earnings per share data:
Earnings per share have been computed on the basis of the weighted
average number of shares of common stock outstanding during the year.
Outstanding warrants have not been included in the computation of
income per share as the effect of such would be anti-dilutive.
Reclassifications:
Certain items in the financial statements were reclassified to be
consistent with the classifications adopted for prior years. This
reclassification has no effect on net income or stockholders' equity.
Deferred registration costs:
Deferred registration costs have been incurred in connection with a
proposed public offering of preferred stock and warrant offering. Costs
incurred in connection with the warrant offering were offset against
the proceeds of that offering. The preferred stock offering has been
abandoned and, as such, the deferred registration costs associated with
that offering have been expensed.
Cash equivalents:
The Company considers all certificates of deposits with maturities of
three months or less as of year end to be cash equivalents.
Note 2. Investments in Marketable Securities
During the fiscal year ended May 31, 1989, the Company advanced
$200,000 to an unrelated third party to finance the acquisition of
Above Technologies. Inc. As consideration for advancing Above
Technologies, Inc. working capital funding, and as consideration for
consulting services rendered to Above Technologies, Inc. by the
Company, the Company received a total of 480,588 shares of Above
Technologies, Inc. common stock. Please see the Company's 10-KSB/A for
the fiscal year ended May 31, 1989 for more detail on this transaction.
The market value of Above Technologies, Inc. stock as of May 31, 1991
and 1990 was $12,000 and $148,177, respectively.
Note 3. Notes Payable, Related Party
During the year ended May 31, 1991, an officer/director of the Company
advanced the Company $25,000. The advance accrued interest at the rate
of 10 percent per annum and principal and interest are due November 30,
1992.
Note 4. Lease Commitments and Related Party Transaction
The Company leased office space from a related party on a
month-to-month basis for $900 per month, which included secretarial
services through 1991.
Ditigel, a subsidiary of the Company, leased office space under two
operating leases expiring in October 1991 and March 1994 for $1,532 and
$4,608 per month, respectively.
<PAGE>
Note 5. Going Concern
The Company has ceased operations and disposed of most of its assets
and is now inactive. Consequently, it is not a going concern. Unless
additional funds and business activity come into the Company, it will
remain inactive.
Note 6. Explanation of Financial Statement Presentation
Pursuant to a May 20, 1992 Asset Purchase Agreement, the Company
transferred nearly all of the assets then owned by Digitel to
Southwestern Communications, Inc., a Nevada corporation f/k/a Western
Communications, Inc. ("Southwestern"). By means of this Agreement, the
Company sold all of Digitel's machinery, equipment, tangible personal
property, inventory, and accounts receivable to Southwestern. The only
asset not transferred to Southwestern was a Honda automobile encumbered
by a lease contract with Honda Leasing. As consideration for the
transfer, Southwestern assumed approximately $675,000 worth of
Digitel's debts. No additional consideration was paid because the debts
to be assumed were equal to or exceeded the value of the assets
transferred. Southwestern provided notice of this bulk sale pursuant to
the provisions of Article 6 of the Uniform Commercial Code. Prior
management indicated that the decision to sell Digitel was based on the
fact that Digitel had experienced net losses in the prior two years and
Digitel's liabilities exceeded its assets at the time of the transfer.
Gordon Beckstead, then the Company's president and director, was a 40%
owner of Southwestern at the time of this transaction.
During fiscal year 1994, Digitel's articles of incorporation were
suspended by the State of Colorado for failure to file its 1993 annual
report. The Company has no current intentions to revive Digitel's
charter and will likely seek to voluntarily dissolve Digitel in the
near future. Accordingly, the Company has not included Digitel as a
consolidated subsidiary on the attached financial statements. Rather,
such activity is reported as "other assets, discontinued operations,
net of associated liabilities " or "other liabilities, discontinued
operations, net of associated assets." Since the bulk sale occurred
just prior to the May 31, 1992 year end, the response to notifications
of assumption of debt of Southwestern extended into the year ended May
31, 1993. Accordingly, the final disposal of "Other assets,
discontinued operations, net of associated liabilities " and "other
liabilities, discontinued operations, net of associated assets" also
extended into the year ended May 31, 1993. Consequently, there are no
liabilities dealing with the bulk transfer subsequent to May 31, 1993.
Prior to the transfer of Digitel, the Company also had made transfers
of its other subsidiaries and interests in U.S. Voice and Cactus Club.
As with Digitel, these activities are also reported as "discontinued
operations" in the financial statements through May 31, 1991.
Note 7. Income Taxes
The provision for income taxes included in the accompanying
consolidated statements of operations differs form the statutory amount
for the following:
Years Ended May 31,
1991 1990 1989
Income tax expense
at statutory federal tax rate $ - $ 10,300 $ 79,100
Graduated tax rates - (6,400) (5,200)
--------- -------- --------
$ - $ 3,900 $ 73,900
===============================
<PAGE>
The provision for income taxes of $3,900 at May 31, 1990 was offset by
the net tax benefit of $19,000 form the loss from discontinued
operations. A net operating loss of approximately $44,000 generated in
the current year was carried back to prior years resulting in a net
income tax receivable at May 31, 1990 of $15,100.
The credits arising from the utilization of net operating loss carry
forwards have been reflected, in the accompanying consolidated
statement of operations, as an extraordinary item.
As of May 31, 1991, the Company had a net operating loss carryforward
of approximately $540,000 potentially available to offset future
taxable income. However, the Company's ability to utilize such losses
to offset future taxable income is subject to various limitations
imposed by the rules and regulations of the Internal Revenue Service.
Note 8. Stock Option Plan
The Company adopted a qualified stock option plan under which 179
shares of its $0.001 par value common stock were reserved for options
to employees. Option prices would be the fair market value (110% of
fair market value if the optionee had more than 10% voting control) of
the common stock on the date the options are granted. The term of an
option shall be for a period of no longer than ten years from the date
of the grant of the option. The Plan expired May 20, 1995. No options
have been granted to date.
Note 9. Stockholders' Equity
On September 1, 1991 the Company effected a 1-for-140 reverse stock
split of its common stock and on November 1, 1995 the Company effected
a 1-for-40 reverse stock split of its common stock. All reference to
quantities of common stock have been adjusted to reflect both the 1991
and 1995 reverse stock splits.
During the year ended May 31, 1988 the Company approved a stock bonus
plan for its employees. The plan approved 90 shares to be set aside,
20% to be issued in the current year, and 10% yearly for eight years.
During the years ended May 31, 1991, 1990 and 1989, the Company
distributed under this plan, 7, 5 and 6 shares, respectively amounting
to $217, $700, and $182 each.
On May 26, 1989, the Company issued 2,679 restricted shares of common
stock to the Workman Family Partnership (WFP), a general partnership
controlled by William Workman, then a director of the Company, in
exchange for its interest in an office and warehouse complex.
Note 10. Profit-Sharing Trust
During the year ended May 31, 1988, the Company established a
profit-sharing trust for its employees who meet eligibility
requirements set forth in the Plan. The annual contributions to the
Plan were to be determined by the board of Directors, with a maximum
amount equal to 15 percent of gross salaries. The amount of the
contribution for the years ended May 31, 1989 and 1988 were $40,000 and
$30,712, respectively.
During the year ended May 31, 1989, the Plan settled the May 31, 1988
accrued profit sharing contribution of $ 30,711 by issuing 152 shares
of the Company's $.001 par value common stock and 67 shares of its
treasury stock.
During the year ended May 31, 1990, the Plan settled the May 31, 1989
accrued profit sharing contribution of $40,000 by issuing 714 shares of
the Company's $.001 par value common stock.
<PAGE>
On February 8, 1991, Digitel adopted a 401(k) Profit Sharing Plan and
Trust, which became effective on January 1, 1991. All employees of
Digitel are eligible to participate, after having satisfied certain
eligibility requirements. A Plan participant may contribute up to 10
percent of his salary to the Plan (subject to Internal Revenue Code
limits), with Digitel making a matching contribution initially equal to
25 percent of the amount contributed by the participant.
Note 11. Supplemental data to consolidated statement of cash flows
Excluded from the consolidated statement of cash flows for the years
ended May 31, 1990 and 1989 were the effects of certain noncash
investing and financing activities as follows: (1991) Issuance of
common stock for compensation for $32,425, Issuance of common stock for
deferred stock compensation for $218,423; (1990) Issuance of common
stock for compensation for $700; (1989) Acquisition of marketable
securities for consulting services for $118,541.
Note 12. Discontinued operations
During the year ended May 31, 1989, the Company commenced operations of
one of its wholly-owned subsidiaries, US Voice Corporation, which
provided voice mail equipment and leasing of voice mail boxes. US Voice
Corporation incurred a considerable loss during its start-up, and on
October 1, 1989, management decided to discontinue its operations. The
company disposed of its net assets relating to the operations of US
Voice Corporation, resulting in a gain of $2,403. The Company incurred
a loss from discontinued operations of US Voice Corporation of $50,511
net of an income tax benefit of $22,704 for the year ended May 31,
1990.
Note 13. Subsequent Events
On September 1, 1991 the Company effected a 1-for-140 reverse stock
split of its common stock and on November 1, 1995 the Company effected
a 1-for-40 reverse stock split of its common stock. All reference to
quantities of common stock have been adjusted to reflect both the 1991
and 1995 reverse stock splits.
<PAGE>
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized, this 12TH day of September 1997.
HYTK Industries, Inc.
/s/Ken Kurtz
-----------------
Ken Kurtz, President
In accordance with the Exchange Act, this report has been signed below
by the following persons on behalf of the Registrant and in the capacities and
on the dates indicated.
Signature Title Date
President and Director September 12, 1997
/s/Ken Kurtz
------------
Ken Kurtz
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
AUDITED CONDENSED FINANCIAL STATEMENTS FILED WITH THE COMPANY'S MAY 31, 1991
ANNUAL REPORT ON FORM 10-KSB AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000775351
<NAME> HYTK INDUSTRIES INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLAR
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAY-31-1991
<PERIOD-START> JUN-01-1990
<PERIOD-END> MAY-31-1991
<EXCHANGE-RATE> 1
<CASH> 5,461
<SECURITIES> 12,000
<RECEIVABLES> 22,250
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 27,711
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 420,058
<CURRENT-LIABILITIES> 6,800
<BONDS> 0
0
25
<COMMON> 373,933
<OTHER-SE> 420,058
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</TABLE>
