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 September 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. 0-26059
COMET TECHNOLOGIES, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 87-0430322
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
10 West 100 South, Suite 610, Salt Lake City, Utah 84101
(Address of principal executive offices)
(801) 532-7851
(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:
3,598,000 shares of common stock.
<PAGE>
FORM 10-QSB
COMET TECHNOLOGIES, INC.
INDEX
Page
PART I. Financial Information
Item 1. Financial Statements
Balance Sheets - September 30, 1999 and
December 31, 1998 3
Statements of Operations - Three and Nine
Months Ended September 30, 1999 and 1998,
and Inception to September 30, 1999 4
Statements of Cash Flows - Three and Nine
Months Ended September 30, 1999 and 1998,
and Inception to September 30, 1999 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition or Plan of Operation 8
PART II. Other Information 9
Signatures 9
PART I.
Financial Information
Item 1. Financial Statements
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>
COMET TECHNOLOGIES, INC.
(A Development Stage Company)
Balance Sheets
ASSETS
September 30, December 31,
1999 1998
(Unaudited)
CURRENT ASSETS
Cash $ 198,474 $201,075
Prepaid expenses 2,000 101
Total Current Assets 200,474 201,176
TOTAL ASSETS $ 200,474 $201,176
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 925 $ 2,246
Taxes payable - 100
Total Current Liabilities 925 2,346
TOTAL LIABILITIES 925 2,346
STOCKHOLDERS' EQUITY
Common stock: 20,000,000 shares
authorized of $0.001 par value,
3,598,000 shares issued
and outstanding 3,598 3,598
Additional paid-in capital 238,561 238,561
Deficit accumulated during
the development stage (42,610) (43,329)
Total Stockholders' Equity 199,549 198,830
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 200,474 $201,176
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
COMET TECHNOLOGIES, INC.
(A Development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
From
Inception on
For the For the February 7,
Three Months Ended Nine Months Ended 1986 Through
September 30, September 30, September 30,
1999 1998 1999 1998 1999
<S> <C> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ - $ -
EXPENSES
General and administrative 1,150 818 4,135 6,416 167,868
Total Expenses 1,150 818 4,135 6,416 167,868
LOSS FROM OPERATIONS (1,150) (818) (4,135) (6,416) (167,868)
OTHER INCOME (LOSS)
Dividend income - - - - 5,493
Interest income 2,113 1,866 4,854 5,598 126,415
Unrealized loss from
marketable securities - - - - (6,650)
Total Other Income (Loss) 2,113 1,866 4,854 5,598 125,258
NET INCOME (LOSS) $ 963 $ 1,048 $ 719 $ (818) $ (42,610)
BASIC INCOME (LOSS)
PER SHARE $ 0.00 $ 0.00 $ 0.00 $ (0.00)
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
COMET TECHNOLOGIES, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
From
Inception on
For the For the February 7,
Three Months Ended Nine Months Ended 1986 Through
September 30, September 30, September 30,
1999 1998 1999 1998 1999
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss) $ 963 $ 1,048 $ 719 $ (818) $ (42,610)
Adjustments to reconcile net income
(loss) to net cash used by
operating activities:
Amortization - - - - 301
Changes in operating assets and
liabilities:
Increase in prepaid expenses - - (1,899) - (2,000)
Increase (decrease) in taxes
payable (100) - (100) - 200
Increase (decrease) in accounts
payable (2,643) - (1,321) - 724
Net Cash Used by Operating
Activities (1,780) 1,048 (2,601) (818) (43,385)
CASH FLOWS FROM INVESTING
ACTIVITIES: - - - - -
CASH FLOWS FROM FINANCING
ACTIVITIES:
Organizational costs - - - - (300)
Net stock offering proceeds - - - - 242,159
Net Cash Provided by Financing
Activities - - - - 241,859
NET INCREASE (DECREASE)
IN CASH (1,780) 1,048 (2,601) (818) 198,474
CASH AT BEGINNING OF PERIOD 200,254 198,941 201,075 200,807 -
CASH AT END OF PERIOD $ 198,474 $ 199,989 $ 198,474 $ 199,989 $ 198,474
CASH PAID FOR:
Interest $ - $ - $ - $ - $ -
Income taxes $ - $ - $ - $ - $ -
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
COMET TECHNOLOGIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 1999 and December 31, 1998
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 September 30, 1999 and 1998 and for all periods
presented have been made.
Certain information and footnote disclosures normally
included in consolidated financial statements prepared in
accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that
these condensed consolidated financial statements be read
in conjunction with the financial statements and notes
thereto included in the Company's December 31, 1998
audited consolidated financial statements. The results
of operations for the periods ended September 30, 1999
and 1998 are not necessarily indicative of the operating
results for the full years.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION OR PLAN OF OPERATION
Results of Operations
Nine Month periods Ended September 30, 1999 and 1998
The Company had no revenue from continuing operations for the
periods ended September 30, 1999 and 1998.
General and administrative expenses for the nine month periods
ended September 30, 1999 and 1998, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs. These expenses were $4,135 and $6,416 for
the nine month periods ended September 30, 1999 and 1998,
respectively.
The Company's cash is invested in short-term, liquid cash
equivalents. Interest income in the nine month periods ended
September 30, 1999 and 1998, was $4,854 and $5,598, respectively.
As a result of the foregoing factors, the Company realized a net
gain of $719 for the nine months ended September 30, 1999, as
compared to a net loss of $818 for the same period in 1998.
Liquidity and Capital Resources
At September 30, 1999, the Company had working capital of
approximately $199,549, as compared to $198,830 at December 31,
1998. Working capital as of both dates consisted substantially
of short-term investments, and cash and cash equivalents.
Although the Company's most significant assets consist largely of
cash and cash equivalents, the Company has no intent to become,
or hold itself out to be, engaged primarily in the business of
investing, reinvesting, or trading in securities. Accordingly,
the Company does not anticipate being required to register
pursuant to the Investment Company Act of 1940 and expects to be
limited in its ability to invest in securities, other than cash
equivalents and government securities, in the aggregate amount of
over 40% of its assets. There can be no assurances that any
investment made by the Company will not result in losses.
Management believes that the Company has sufficient cash and
short-term investments 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 nine-month period
ended September 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.
COMET TECHNOLOGIES, INC.
Date: November 12, 1999 By: /s/ Jack Gertino, Secretary/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 198,474
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 200,474
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 200,474
<CURRENT-LIABILITIES> 925
<BONDS> 0
0
0
<COMMON> 3,598
<OTHER-SE> 238,561
<TOTAL-LIABILITY-AND-EQUITY> 200,474
<SALES> 0
<TOTAL-REVENUES> 4,854
<CGS> 0
<TOTAL-COSTS> 4,135
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 719
<INCOME-TAX> 0
<INCOME-CONTINUING> 719
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 719
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
