UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X ] Quarterly report under Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the quarterly
period ended February 28, 1998
[ ] 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)(Zip Code)
(801) 944-0701
(Issuer's Telephone Number, Including Area Code)
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 XX No
The number of shares outstanding of Registrant's common stock
($0.001 par value) as of February 28, 1998 was 52,266. As of March
22, 1998 the number of shares outstanding of Registrant's common
stock ($0.001 par value) was 2,052,266.
Total of Sequentially Numbered Pages: 10
Exhibit Index on Page: 10
<PAGE>
TABLE OF CONTENTS
PART 1
ITEM 1. FINANCIAL STATEMENTS. . . . . . . . . . . . . . . . . .3
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION . . . . . . . . . . . . . . . . . . . . . . .3
PART II
ITEM 5. OTHER INFORMATION . . . . . . . . . . . . . . . . . . .7
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. . . . . . . . . . . .8
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . .9
INDEX TO EXHIBITS. . . . . . . . . . . . . . . . . . . . . 10
<PAGE>
HYTK INDUSTRIES, INC.
Unaudited Balance Sheet
February 28, 1998
ASSETS
Current Assets ...................... $ --
Other Assets ........................ --
-----------
TOTAL ASSETS ........................ $ --
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and
accrued expenses ............... $ 15,013
-----------
Commitments and contingencies ....... --
Stockholders' Equity
Preferred stock, par value $.001,
50,000,000 shares authorized,
no shares issued and
outstanding .................... --
Common stock, par value $.001
950,000,000 shares authorized,
52,266 issued and outstanding .. 52
Additional paid-in-capital ..... 1,108,846
Retained earnings (deficit) .... (1,123,911)
-----------
Total Stockholders' equity ..... (15,013)
-----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY ................ $ --
===========
See notes to unaudited financial statements.
F-1
<PAGE>
HYTK INDUSTRIES, INC.
Unaudited Statements of Operations
For the Quarters and the Nine Months Ended
February 28, 1998 and 1997
Quarter Ended Nine Months Ended
February 28, February 28,
1998 1997 1998 1997
---------- -------- ---------- --------
Revenues.................$ -- $ -- $ -- $ --
---------- -------- --------- --------
General and
administrative expenses.. -- -- -- 20,900
---------- --------- --------- --------
-- -- -- (20,900)
---------- --------- --------- --------
Non-Operating
Income/(Expense)
Gain on sale of
interest in
property........... -- -- -- 83,606
Interest expense .. -- -- 29 --
---------- --------- --------- --------
Total non-operating
Income/Expenses)...... -- -- 29 83,606
Net Income/Loss) ....... $ -- $ -- (29) $ 62,706
========== ========== ======== ========
Earnings/(Loss)
per share:
Net income/loss) ....... (0.00) (0.00) (0.00) 1.20
========== ========== ======== ========
Weighted-average shares
outstanding ............ 52,266 52,266 52,266 52,266
See notes to unaudited financial statements.
F-2
<PAGE>
HYTK INDUSTRIES, Inc.
Unaudited Statements of Stockholders' Equity
February 28, 1998
Common Stock
------------
Total Additional Retained Stock-
Number Par Paid In Earnings holders
of Shares Value Capital (Deficit) Equity
---------- ----- ---------- ----------- ----------
Balance,
May 31,
1996 ........ 52,266 $ 52 $1,108,846 $(1,186,588)$ (77,690)
Net Income .. -- -- -- 62,706 62,706
---------- ----- ----------- ----------- ---------
Balance,
May 31,
1997 ........ 52,266 52 1,108,846 (1,123,882) (14,984)
Net Loss .... -- -- -- (29) (29)
----------- ---- ----------- ----------- --------
Balance,
February 28
1998......... 52,266 $ 52 1,108,846 (1,123,911) (15,013)
=========== ==== =========== =========== ========
See notes to unaudited financial statements.
F-3
<PAGE>
HYTK INDUSTRIES, INC.
Unaudited Statements of Cash Flows
For the Nine Months Ended -- February 28, 1998 and 1997
Nine Months Ended
February 28, February 28,
1998 1997
----------- -----------
Cash Flows From Operating Activities
Net income/(Loss) ............. $ (29) $ 62,706
Noncash expenses included in
net income/(Loss):
Services paid with
common stock ............... -- --
Increase/(Decrease)
in accounts payable
and accrued expenses ....... 29 (35,206)
------------ -----------
Net cash provided by (used for)
Operating Activities ............. -- 27,500
------------ -----------
Cash Flows From Investing Activities
Net cash provided by (used for)
Investing Activities ............. -- --
------------ -----------
Cash Flows From Financing Activities
Repayment of note payable,
related party ................. -- (27,500)
------------ -----------
Net cash provided by (used for)
Financing Activities ............. -- (27,500)
------------ -----------
Increase/decrease) in cash and
cash equivalents ................... -- --
Cash and cash equivalents,
Beginning of year .................. -- --
------------ ------------
Cash and cash equivalents,
End of year ........................ $ -- $ --
============ ============
Supplement Disclosures of
Cash Flow Information
Cash payments for Interest .... $ -- $ --
Cash payment for Income Taxes . $ -- $ --
See notes to unaudited financial statements.
F-4
<PAGE>
HYTK INDUSTRIES, INC.
NOTES TO CONSOLIDATED UNAUDITED CONDENSED FINANCIAL STATEMENTS
FOR THE FISCAL QUARTER ENDED FEBRUARY 28, 1998
1. Basis of Presentation
The accompanying consolidated unaudited condensed financial
statements have been prepared by management in accordance with
the instructions in Form 10-QSB and, therefore, do not include
all information and footnotes required by generally-accepted
accounting principles and should, therefore, be read in
conjunction with the Company's Annual Report to Shareholders on
Form 10-KSB for the fiscal year ended May 31,1997. These
statements do include all normal recurring adjustments which the
Company believes necessary for a fair presentation of the
statements. The interim operations results are not necessarily
indicative of the results for the full year ended May 31, 1998.
2. Additional footnotes included by reference
Except as indicated in Notes 1 above, there have been no
other material changes in the information disclosed in the notes
to the financial statements included in the Company's Annual
Report on Form 10-KSB for the year ended May 31, 1997. Therefore,
those footnotes are included herein by reference.
F-5
<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS
Unless otherwise indicated, the term "Company" refers to HYTK
Industries, Inc. and its former subsidiaries and predecessors.
Unaudited interim financial statements including a balance sheet
for the Company as of the fiscal quarter ended February 28, 1998
and statements of operations and statements of cash flows for the
interim period up to the date of such balance sheet and the
comparable period of the preceding fiscal year are attached hereto
as Pages F-1 through F-5 and are incorporated herein by this
reference.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATIONS
The Company was incorporated in 1982 under the name Digitel of
Las Vegas, Inc. From 1982 until May 1992, the Company's primary
operations involved the sale, installation, and servicing of
commercial telephone systems. In 1986, the Company transferred all
assets related to its primary operations to a newly formed
subsidiary, Digitel, Inc., a Colorado corporation ("Digitel").
Beginning in 1989, the Company made attempts to expand its
operations into other business sectors.
From January 1989 to October 1989, the Company sold and leased
voice mailbox equipment through its wholly-owned subsidiary, U.S.
Voice. These operations were unsuccessful largely as a result of
unforeseen initial start-up costs and revenues that did not meet
the Company's expectations. In October 1989, the Company
transferred all of the assets of U.S. Voice to an affiliate.
In July 1990, the Company acquired 100% of the outstanding
capital stock of Cactus Club, a manufacturer of mens sportswear.
The Company acquired Cactus Club with the intention of diversifying
its business holdings and moving away from telecommunications-
related operations. Cactus Club required an immediate cash
infusion of $500,000 which the Company had intended to provide
through the proceeds of a warrant offering which the Company was
then conducting. In September 1990, the Company's Common Stock was
delisted from the NASDAQ Small Cap Market. After the Common Stock
was delisted, the Company ceased receiving cash proceeds from the
exercise of the previously issued warrants. The Company did not
have an alternative method of financing the cash requirements of
Cactus Club. Accordingly, in October 1990, the Company transferred
all of the assets of Cactus Club to an unaffiliated third party.
<PAGE>
On May 20, 1992, the Company transferred substantially all of
the assets of Digitel to Western Communications, Inc. (n/k/a
Southwestern Communications, Inc.), an affiliated entity. The
Company sold the assets of Digitel in exchange for Southwestern's
assumption of an equivalent amount of Digitel's liabilities. At the
time of this transfer Digitel's liabilities exceeded its assets.
Digitel had experienced recurring losses and the Company's
management did not believe that it had the resources necessary to
reverse this trend. The sale of Digitel's assets was structured as
a bulk transfer under Article 6 of the Uniform Commercial Code, and
notice of the sale was delivered to Digitel's creditors, most of
whom were suppliers.
After the transfers of U.S. Voice, Cactus Club, and Digitel,
the Company's only significant asset was an interest in a parcel of
commercial real estate located at 3900 West Russell Road in Las
Vegas, Nevada (the "Russell Road Property"). The Company had title
to the property but leased the property back to a former owner
under what was intended to be a sale-leaseback arrangement. This
interest in the property was assigned to the Company by an
affiliate in exchange for the Company's issuance of Common Stock.
From May 1992 to April 1995, the lease of this property was the
only source of revenues generated by the Company.
In April 1995, the Company transferred its interest in the
property to another affiliate. At the time of this transfer, the
first mortgage holder on the property was threatening foreclosure
and the Company was in danger of not realizing the full value of
the property as a result of the impending forced sale. Therefore,
the Company transferred the Russell Road Property in exchange for
the transferee's assumption of the debt obligations on the property
and promise to distribute to the Company 50% of the first $100,000
in net proceeds realized from the eventual sale of the property and
10% of additional net proceeds realized. On July 23, 1996, the
Russell Road Property was sold. The Company received $83,606 as a
result of the sale. The cash derived from the sale was used to
reduce the Company's liabilities. The Russell Road Property was
the last substantial asset owned by the Company.
The interest in the Russell Road Property was the last
material asset of the Company. The Company has not realized any
cash inflow in the past five years, excepting the cash realized
from the April 1996 sale of the Russell Road Property.
Since the sale of the Russell Road Property, the Company has
been searching for a viable candidate for merger or acquisition.
The Company lacks any significant cash flow or assets and the
Company's intent is therefore to issue shares of its common stock
as consideration for any subsequent merger or acquisition. This
will likely result in substantial future dilution of the current
ownership interest of the Company's shareholders. If the Company
effects a future merger or acquisition, it may need financing to
satisfy the cash requirements of its merger/acquisition partner.
The nature and extent of these requirements will depend upon the
kind of business acquired by the Company. Given the Company's
<PAGE>
limited cash flow and history of operating losses, there is a
substantial risk that the Company will not be able to raise the
capital necessary to make a subsequent merger or acquisition
successful. The Company intends to raise capital primarily through
private offerings of its common stock and can provide no assurances
that it will be able to generate sufficient capital in this manner.
On September 1, 1995, the Company executed a Consulting
Agreement with Canton Financial Services Corporation, a Nevada
corporation that provides professional business consulting services
("Canton"). Pursuant to the consulting agreement, Canton assisted
the Company in restructuring its capitalization and provided
related business and accounting services. As consideration, the
Company issued 2,565 restricted shares of Common Stock to Park
Street Investments, Inc., a Utah corporation ("Park Street"), and
23,078 restricted shares of Common Stock to A-Z Professional
Consultants, Inc., a Utah corporation ("A-Z"). In the aggregate,
the Common Stock issued to Park Street and A-Z constituted 51% of
the Company's then-outstanding Common Stock. Both Park Street and
A-Z were designees of Canton who received their shares of Common
Stock as a finder's fee for introducing the Company to Canton.
A change of control in the Company occurred pursuant to the
change of ownership in the Company's Common Stock. On September 5,
1995, the board of directors appointed Ken Kurtz, Richard Surber
and Steven Christensen as additional directors of the Company.
Gordon Beckstead then resigned as the Company's president, vice
president and secretary. The board then appointed Ken Kurtz as the
Company's president, Richard Surber as the Company's vice
president, and Steven Christensen as the Company's secretary and
treasurer. Ken Kurtz is also the president, director and sole
shareholder of Park Street. Richard Surber is also the president
and sole director of A-Z and the president and a director of
Canton. Neither Mr. Kurtz nor Mr. Surber was a director of the
Company at the time the Consulting Agreement became effective and
therefore neither voted on the propriety of the Consulting
Agreement or the issuance of Common Stock pursuant to it.
Once these appointments were effective, Gordon Beckstead,
James Blyth, and F. Rex Graham all resigned as directors. The
change in control in the Company reflected the change in ownership
of the Company's capital stock resulting from the execution of the
Consulting Agreement. None of the resigning officers or directors
had any disagreements with the Company or its management.
The Company has since terminated the Consulting Agreement
with Canton and Mr. Christensen and Mr. Surber have since resigned
from their positions with the Company.
In December 1997, the Company approached Sharpe Capital (a
broker-dealer registered with the National Association of
Securities Dealers) with regard to making a market in the Company's
common stock on behalf of the Company and its shareholders. On
<PAGE>
December 16, 1997, Sharpe Capital submitted an application pursuant
to Section 15c2-11 of the Securities Exchange Act with the NASD to
trade the Company's Common Stock on the OTC Bulletin Board. This
application has been withdrawn until the Company can first engage
in a merger with an operating entity.
In an effort to expedite a successful reorganization, the
Company executed a Financial Consulting Agreement ("Agreement") with
Park Street Investments, Inc. ("Park Street") on March 5, 1998.
Park Street is a Utah corporation which specializes in assisting
clients to prepare for mergers, acquisitions or business
combinations. Ken Kurtz is the President and sole shareholder of
Park Street, as well as, the President and sole Director for the
Company.
According to the Agreement, Park Street will assist the
Company with its corporate maintenance, administration, financial
statement preparation and securities filings. In addition, the
Agreement states that Park Street will actively pursue, negotiate
and structure a merger or business combination with a third party
on behalf of the Company. Park Street also agrees to pay for all
of the costs associated with these responsibilities up until the
time the Company has been reorganized with another entity. In
return, the Company agreed to immediately issue 2,000,000
restricted shares of its Common Stock to Park Street.
Additionally, Park Street shall be entitled to additional shares of
common stock of the Company upon completion of a reorganization in
an amount whereby such issuance with give Park Street an ownership
position in the combined entity of up to 10% of the total issued
and outstanding shares of the Company after a successful
reorganization. For more information about this Agreement, see
Exhibit 10(i)(a) of this report, "Financial Consulting Agreement."
On March 5, 1998 the Company authorized the issuance of
2,000,000 restricted shares of its common stock to Park Streets
Investments, Inc. The issuance of these shares has resulted in a
change in control of the Company. Park Street currently owns
2,002,565 shares of the Company's common stock, which constitutes
97% of the shares issued and outstanding.
The Company has been able to satisfy many of its obligations
by issuing shares of its common stock. Accordingly, the Company
has been able to meet its obligations without expenditures of its
cash flows. The Company intends to continue this practice, but the
Company can provide no assurances that it will continue to be able
to satisfy its obligations in this manner. The Company does not
currently have any full or part time employees, aside from its
remaining officer and director.
<PAGE>
ITEM 5. OTHER INFORMATION
On March 5, 1998 the Company authorized the issuance of
2,000,000 restricted shares of its common stock to Park Streets
Investments, Inc. , pursuant to the Financial Consulting Agreement
between the Company and Park Street dated March 5, 1998. For more
information on this agreement, see "Item 2 - Management's
Discussion and Analysis or Plan of Operation."
The issuance of these shares has resulted in a change in
control of the Company. Current control percentages are detailed
in the table below.
Amount and
Nature of
Title of Name and Address of Beneficial % of
Class Beneficial Owner Ownership Class
-------- ----------------------- ------------ -----
Common Ken Kurtz 2,002,565 97%
Stock, 2133 East 9400 South
Par Value Suite 151
$0.001 Sandy, Utah 84093
Common Officers and Directors 2,002,565 97%
Stock, as a Group
Par Value
$0.001
These shares are owned by Park Street Investments, Inc. a
Utah corporation of which Ken Kurtz is the only officer and
director.
Before the March 5, 1998 issuance, control of the company was as
follows:
Amount and
Nature of
Title of Name and Address of Beneficial % of
Class Beneficial Owner Ownership Class
-------- ----------------------- ------------ -----
Common Wendell Hall 23,078 44.2%
Stock, Trustee
Par Value 5519 Rawls Road
$0.001 Tampa, Florida 33625
<PAGE>
Common Alexander Senkovski 11,539 22.1%
Stock, Irrevocable Trust
Par Value 5519 Rawls Road
$0.001 Tampa, Florida 33625
Common David Michael 11,539 22.1%
Stock, Irrevocable Trust
Par Value 5519 Rawls Road
$0.001 Tampa, Florida 33625
Common Gordon Beckstead 5,373 10.3%
Stock, 6244 Elmira Cir
Par Value Englewood, Colorado 80111
$0.001
Common Ken Kurtz 2,565 4.9%
Stock, 2133 East 9400 South
Par Value Suite 151
$0.001 Sandy, Utah 84093
Common Officers and Directors 2,565 4.9%
Stock, as a Group
Par Value
$0.001
Wendell Hall and BonnieJean C. Tippetts are co-trustees of both
the David Michael Irrevocable Trust and the Alexander Senkovski
Irrevocable Trust. Neither Wendell Hall nor BonnieJean C. Tippetts
has a beneficial interest in either trust.
These shares are owned by Park Street Investments, Inc., a Utah
corporation of which Ken Kurtz is the only officer and director.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Index to Exhibits. Exhibits required to be attached by Item
601 of Regulation S-B are listed in the Index to Exhibits
beginning on page 10 of this Form 10-QSB. The Index to
Exhibits is incorporated herein by this reference.
(b) Reports on Form 8-K. The Company did not file any reports
on Form 8-K during the quarter ended February 28, 1998.
<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 28TH day of August 1998.
HYTK Industries, Inc.
/s/
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
/s/
______________________ President and Director August 28,1998
Ken Kurtz
<PAGE>
INDEX TO EXHIBITS
Exhibit Page Description
No. No.
3(i) * The Company's Articles of Incorporation
(incorporated herein by reference to the Exhibits
to the Company's Registration Statement on Form
S-18, Registration No. 2-99737-LA ).
3(ii) * The Company's Bylaws, as amended (incorporated
herein by reference to the Exhibits to the
Company's Registration Statement on Form S-18,
Registration No. 2-99737-LA).
MATERIAL CONTRACTS
10(i)(a) * March 5, 1998 Consulting Agreement executed by
and between the Company and Park Street
Investments, Inc.(incorporated herein by
reference to the Company's Form 10-QSB for
quarter ended November 30, 1998).
10(i)(b) * September 1, 1995 Consulting Agreement executed
by and between the Company and Canton Financial
Services Corporation (incorporated herein by
reference to the Company's Form 10-KSB for fiscal
year ended May 31, 1992).
10(i)(c) * April 22, 1995 Deed of Trust executed by
BeckWork, LLC. for the benefit of the Company
(incorporated herein by reference to the
Company's Form 10-KSB for fiscal year ended May
31, 1992).
10(i)(d) * May 20, 1992 Asset Purchase Agreement executed by
and between the Company and Western
Communications (incorporated herein by reference
to the Company's Form 10-KSB for fiscal year
ended May 31, 1992).
10(i)(e) 11 April 1, 1997 Mutual Agreement to Terminate
Consulting Agreement executed by and between the
Company and Canton Financial Services
Corporation.
FINANCIAL DATA SCHEDULE
27(i) 14 Financial Date Sechedule (submitted
electronically to the Securities and Exchange
Commission for its information.)
MUTUAL AGREEMENT TO TERMINATE
THIS MUTUAL AGREEMENT TO TERMINATE ("Termination") is
effective the 1ST day of April 1997 by and between HYTK
Industries, Inc., a Nevada corporation with principal offices at
2133 East 9400 South, Suite 151 ("HYTK"), and Canton Financial
Services Corporation, a Nevada corporation with its principal
offices at 268 West 400 South, Suite 300, Salt Lake City, Utah
84101 ("CFSC").
PREMISES
WHEREAS, on September 1, 1995, HYTK and CFSC (hereinafter
collectively referred to as the "Parties") executed a Consulting
Agreement("Agreement") pursuant to which HYTK was to receive
financial consulting services for a period of one year (which has
since been renewed on a month-to-month basis) from CFSC in
exchange for monthly consulting fees;
WHEREAS, the Parties agreed to mutually terminate the
Agreement to the full extent that it is still binding on either
party on the 1ST day of April 1997;
WHEREAS, the Parties have not yet executed a document
necessary to evidence the termination of the Agreement and wish
this Termination to serve that purpose;
AGREEMENT
1. Termination. The Parties hereby agree that CFSC shall
immediately cease providing any and all consulting services or
other performance required or implied under the terms of the
Agreement and HYTK shall cease making any payments or providing
any other future performance required under the Agreement.
2. Mutual Releases. The Parties agree to hold one another
harmless from, cease any and all claims against one another
stemming from, and indemnify one another with respect to any and
all obligations arising pursuant to or stemming from the
termination of the Agreement.
3. Mutual Representations and Warranties of CFSC and HYTK. The
Parties hereby represent, warrant and covenant that each of the
following are true and complete as of the date of this
Termination:
A. The execution and performance of this Termination have
been duly authorized by all requisite corporate action.
This Termination constitutes a valid and binding obligation
of the Parties. This Termination will not violate or result
in a breach of, or constitute a default in any agreement,
instrument, judgment, order or decree to which either party
is subject.
B. Each party shall execute such other documents and take
such other and further action to effect the Termination
including effecting corporate action in the form of
appropriate resolutions to terminate such Agreement.
<PAGE>
C. Neither party will suffer damages, either direct or
indirect, as a result of this Termination.
D. Each party, in making its decision to execute this
Termination relied solely on the advice of its principals,
or its financial advisors and not on the advice given by the
agents, principals, consultants or employees of the other
party.
4. Miscellaneous.
A. Entire Agreement. This Termination sets forth the
entire agreement between the Parties as of the date of this
Termination. No prior written or oral statement or
agreement contrary to this Termination shall be recognized
or enforced.
B. Effect of Partial Invalidity. In the event that nay
one or more of the provisions contained in this Termination
shall for any reason be held to be invalid, illegal or
enforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of
this Agreement.
C. Controlling Law. The validity, interpretation and
performance of this Termination shall be governed by the
laws of the State of Utah without regard to its law on the
conflict of laws. Any dispute arising out of this
Termination shall be brought in a court of competent
jurisdiction in Salt Lake Count, State of Utah. The Parties
exclude any and all statutes, laws and treaties which would
allow or require any dispute to be decided in another forum
or by other rules of decision than provided in this
Termination.
D. Attorney's Fees. If any action at law or in equity,
including an action for declaratory relief, is brought to
enforce or interpret the provisions of this Agreement, the
prevailing party shall be entitled to recover actual
attorney's fees, court costs or other costs incurred in
proceeding with the action from the other party. The
attorney's fees, court costs or other costs may be ordered
by the court in its decision of any action described in the
Paragraph or may be enforced in a separate action brought
for determining attorney's fees, court costs or other costs.
Should either party be represented by in-house counsel, such
party may recover attorney's fees incurred by that in-house
counsel in an amount equal to that attorney's normal fees
for similar matters, or, should that attorney not normally
charge a fee, by the prevailing rate charged by attorneys
with similar backgrounds in that legal community.
<PAGE>
E. Time is of the Essence. Time is of the essence of this
Termination and of each and every provision.
F. Mutual Cooperation. The Parties agree to cooperate
with each other to achieve the purpose of this Termination
and shall execute such other and further documents and take
such other and further actions as may be necessary or
convenient to effect the purpose of this Termination.
G. No Third Party Beneficiary. Nothing in this
Termination, expressed or implied is intended to confer upon
any person, other than the Parties hereto and their
successors, any rights or remedies under or by reason of
this Termination.
H. Facsimile Counterparts. If a party signs this
Termination and transmits an electronic facsimile of the
signature page to the other party, the party who receives
the transmission may rely upon this electronic facsimile as
a signed original of this Termination.
IN WITNESS WHEREOF, the Parties have executed this Termination
Agreement this 13TH day of June 1997.
CFSC
Canton Financial Services Corporation
/S Richard Surber
Richard Surber, President
HYTK Industries, Inc.
/S Ken Kurtz
Ken Kurtz, President
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
UNAUDITED CONDENSED FINANCIAL STATEMENTS FILED WITH THE COMPANY'S FEBRUARY 28,
1998 QUARTERLY REPORT ON FORM 10-QSB AND IS 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> 9-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> DEC-01-1998
<PERIOD-END> FEB-28-1998
<EXCHANGE-RATE> 1
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 15,013
<BONDS> 0
0
0
<COMMON> 52
<OTHER-SE> (15,065)
<TOTAL-LIABILITY-AND-EQUITY> 0
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<CGS> 0
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<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
