SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended Commission File Number
December 31, 1999 33-5203-D
The Entity, Inc.
(Exact name of registrant as specified in its charter)
Colorado 84-0953839
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(State of incorporation) (I.R.S. Employer
Identification No.)
10200 W. 44th Avenue, Suite 400, Wheat Ridge, CO 80033
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(303) 422-8127
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 for such shorter period that the registrant was
required to file such reports), and (2) has been subject to the filing
requirements for at least the past 90 days.
Yes ____ No X
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
81,400,000 as of December 31, 1999
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<CAPTION>
THE ENTITY, INC.
(A Development Stage Company)
BALANCE SHEET
(unaudited)
December 31, September 30,
1999 1999
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<S> <C> <C>
Current Assets:
Cash and cash equivalents $0 $0
TOTAL ASSETS $0 $0
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, related parties $9,624 $9,624
Retained Earnings (deficit) (71,374) (71,374)
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $(0) $(0)
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The accompanying notes are an integral part of the financial statements.
F-1
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<CAPTION>
THE ENTITY, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
(unaudited)
Three Months Ending Dec. Three Months Ending Dec.
31, 1999 31, 1998
<S> <C> <C>
Revenue & interest $0 $0
Rent & Office $0 $0
Travel $0 $0
Weighted average number of 81,400,000 81,400,000
common shares
The accompanying notes are an integral part of the financial statements.
F-2
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<TABLE>
<CAPTION>
THE ENTITY, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(unaudited)
Three Months Three Months Ending
Ending Dec. 31, 1998
Dec. 31, 1999
<S> <C> <C>
Cash flows from operating
activities:
Cash provided (used) by operating $0 $0
activities
Cash at beginning of period $0 $0
Cash at end of period $0 $0
The accompanying notes are an integral part of the financial statements.
F-3
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THE ENTITY, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE QUARTER ENDED DECEMBER 31, 1999
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of The Entity, Inc. (Company)
significant accounting policies:
Organizations
The Company was incorporated July 7, 1983 under the laws of
Colorado under the name of Moonstone, Inc. for the primary
purpose of seeking acquisitions of business or properties,
without limitation as to geographic location or type of business.
Moonstone, Inc., a publicly traded entity, merged with The
Entity, Inc. Moonstone, Inc., the surviving entity after the
merger, changed its name to The Entity, Inc.
On December 23, 1997, an application for Reinstatement and
Corporate Report was approved and submitted after a special
stockholders' meeting. Many of the corporate records have been
lost or destroyed. Since the completion of the initial offering,
the Company has not engaged in any operations nor has it
generated any revenue. The Company has been engaged in the
identification and evaluation of target business entities or
assets for possible acquisition.
Cash and Cash Equivalents
For purpose of the statement of cash flows, cash and cash
equivalents include cash in banks and money market accounts. The
Company has no cash accounts at the present time.
Deferred Organization Expenses
Cost incurred in connection with the organization were charged to
expenses using the straight-line method over 60 months.
Income Taxes
The Financial Accounting Standards Board (FASB) has issued
Statement of Financial Accounting Standards Number 109 ("SFAS
109"), "Accounting for Income Taxes," which requires a change
from the deferred method to the assets and liability method,
deferred income taxes are recognized for the tax consequences of
"temporary differences" by applying enacted statutory tax rates
applicable to future years to differences between the financial
statement carrying amounts and the tax basis of existing assets
and liabilities.
At September 30, 1999, the Company had net operating loss
carryforwards of approximately $71,370 for federal income tax
purposes. These carryforwards, if not utilized to offset taxable
income, will expire at the end of 2002. There is no provision or
benefit for income taxes in fiscal 1999.
F-4
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THE ENTITY, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE QUARTER ENDED DECEMBER 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
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 the reported amount of
assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
NOTE 2 - GOING CONCERN
The accompanying financial statements have been prepared in
conformity with generally accepted accounting principles, which
contemplates continuation of the Company as a going concern.
However, the Company has sustained an operation loss this year.
As shown in the financial statements, the Company incurred a net
loss of $3,000 for 1999 and had incurred net losses in the prior
years. At December 31, 1999, current liabilities exceed current
assets by $9,624. These factors indicate that the Company has
substantial doubt about its ability to continue as a going
concern. The financial statements do not include any adjustments
relating to the recoverability and classification of recorded
assets, or the amounts and classification of liabilities that
might be necessary in the event the Company cannot continue in
existence.
In view of these matters, realization of a major portion of the
assets in the accompanying balance sheet is dependent upon
continued operations of the Company, which in turn is dependent
upon the Company's ability to meet its financial requirements,
and the success of its future operations.
F-5
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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
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RESULTS OF OPERATIONS
The Company has experienced no expenses for the three month period in 1999 and
1998. The Company had no revenues for the period in 1999 or 1998. The Company
had no profit or loss for the period in 1999 or 1998. The Company will continue
to have no income and losses until income can be achieved. While the company is
seeking capital sources for investment; there is no assurance that sources can
be found.
LIQUIDITY AND CAPITAL RESOURCES
The Company had no cash capital at the end of the period and no assets. The
Company will be forced to either borrow or make private placements of stock in
order to fund operations. No assurance exists as to the ability to achieve loans
or make private placements of stock.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULT 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
No reports on Form 8-K were made for the period for which this report
is filed.
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THE ENTITY, INC.
(A Development Stage Company)
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 thereunto duly authorized.
THE ENTITY, INC.
Date: June 11, 2000 /s/Larry Carr
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Larry Carr, President
