.
<PAGE>
FORM 10-QSB
SECURITIES AND EXCANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended: September 30, 1996 Commission File Number: 0-14910
--------------------- ----------
MPM TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Washington 81-0436060
--------------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
222 West Mission, Ste 30
Spokane, WA 99201-2261
- ------------------------- ---------------------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (509) 326-3443
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 such
filing requirements for the past 90 days.
(X) Yes ( ) No
As of November 14, 1996, the registrant had outstanding 12,926,481 shares of
common stock which is the registrant's only class of stock
.
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Financial Statements Follow on the Next Page
<PAGE>
MPM TECHNOLOGIES, INC.
AND SUBSIDIARIES
(A Development Stage Company)
Spokane, Washington
Financial Statements
September 30, 1996, And December 31, 1995
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Balance Sheet As Of
AND SUBSIDIARIES September 30, 1996, And December
(A Development Stage Company) 31, 1995
Spokane, Washington
UNAUDITED
ASSETS
SEPTEMBER DECEMBER
30, 1996 31, 1995
------------- ------------
<S> <C> <C>
CURRENT ASSETS:
Cash (Note 2) $ 121,355 $ 138,675
Prepaid Insurance 1,523 6,094
Receivables 31,594 25,440
------------- ------------
Total Current Assets 154,472 170,209
------------- ------------
PROPERTY,PLANT & EQUIPMENT (Note 2):
Land 70,000 70,000
Mining Claims (Note 3) 48,600 48,600
Mining Leases (Note 3) 5,437 5,437
Buildings 133,005 133,005
Mill Machinery 289,063 289,063
Vehicles & Equipment 117,633 114,115
Leasehold Improvements 0 0
Software 3,258 3,258
------------- ------------
Total Property, Plant & Equipment 666,996 663,478
Less Accumulated Depreciation (341,237) (332,117)
And Amortization ------------- ------------
Net Property, Plant & Equipment 325,759 331,361
------------- ------------
OTHER ASSETS:
Deferred Exploration And 1,195,465 1,195,466
Development (Note 1)
Note Receivable 275,000 275,000
Licenses, Net Of Amortization Of
$6,247 and $5,344
Respectively (Note 2) 27,841 28,745
Advance Minimum Royalties(Note 2) 50,750 50,750
Mineralized Material In Place 10 10
(Note 3) ------------- ------------
Total Other Assets 1,549,066 1,549,971
------------- ------------
TOTAL ASSETS $ 2,029,297 $ 2,051,541
============= ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Balance Sheet As Of
AND SUBSIDIARIES September 30, 1996, And December
(A Development Stage Company) 31, 1995 (Continued)
Spokane, Washington
UNAUDITED
LIABILITIES AND STOCKHOLDERS' EQUITY
SEPTEMBER DECEMBER
30, 1996 31, 1995
--------------- --------------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts Payable $ 14,356 $ 14,356
Notes Payable (Note 4) 700,991 533,951
Notes Payable To Related Parties 314,765 314,765
(Note 4)
Interest Payable -Related Parties 129,997 129,997
(Note 4)
Interest Payable 3,063 0
--------------- --------------
Total Current Liabilities 1,163,172 993,069
--------------- --------------
LONG-TERM DEBT (Net Of Current
Portion):
Notes Payable 0 0
--------------- --------------
Total Long-Term Debt 0 0
--------------- --------------
Total Liabilities 1,163,172 993,069
--------------- --------------
MINORITY INTEREST (Note 6):
Minority Interest In Consolidated (712,382) (687,185)
Entities --------------- --------------
COMMITMENTS (Note 7)
STOCKHOLDERS' EQUITY:
Common Stock, $0.001 Par Value,
50,000,000 Shares Authorized,
12,926,481 Shares, And
12,842,176 Shares Outstanding
September, 30, 1996, And
December 31, 1995, Respectively
(Notes 6 & 8) 12,926 12,842
Additional Paid-In Capital 6,082,409 5,998,967
Deficit Accumulated During The
Exploration And Development
Stage (4,516,828) (4,266,152)
--------------- --------------
Total Stockholders' Equity 1,578,507 1,745,657
--------------- --------------
TOTAL LIABILITIES, MINORITY INTEREST
AND STOCKHOLDERS' EQUITY $ 2,029,297 $ 2,051,541
=============== ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Statement Of Income (Loss)
AND SUBSIDIARIES For The Quarters Ended September 30,
(A Development Stage Company) 1996 And 1995, The Nine Months Periods
Spokane, Washington Ended September 30, 1996 And 1995, And
From Inception (May 1, 1983) To Date
UNAUDITED
Quarter Ended Nine Months Ended Inception
September 30 September 30 To
1996 1995 1996 1995 Date
------------- ------------ ------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
REVENUE:
Management Fees-Related Party $ 0 $ 0 $ 0 $ 0 $ 77,000
Gain On Sale Of Equipment 0 0 0 0 200,147
------------- ------------ ------------- ------------- --------------
Total Revenues 0 0 0 0 277,147
------------- ------------ ------------- ------------- --------------
EXPENSES:
Bank Charges 10 15 37 35 2,781
Contract Services (18,605) 18,000 4,190 54,000 1,299,314
Depreciation And Amortization 3,983 3,099 10,023 9,299 532,375
Donations 0 0 250 0 250
Dues And Subscriptions 55 100 343 380 38,702
Employee Benefits 0 0 0 0 3,704
Equipment Rentals 0 0 0 0 24,056
Exploration And Development 0 0 0 0 132,829
Freight 0 0 0 0 10,553
Insurance 4,399 8,700 10,322 11,576 138,097
Legal And Accounting 44,205 3,511 77,755 23,942 381,525
Licenses, Taxes And Fees 18,273 4,374 58,933 4,637 206,201
Mine Lease Expense 3,150 0 6,750 0 6,750
Miscellaneous 0 3,116 0 8,283 112,133
Office Expense And Postage 11,898 7,197 19,555 16,931 196,270
Professional Services 27,065 26,218 45,065 56,151 1,045,611
Public Relations And Finders Fee 0 0 0 0 72,763
Rent - Office 1,875 0 5,015 0 168,953
Rent - Equipment 615 0 615 0 615
Repairs And Maintenance 0 607 0 607 51,658
Research And Development 0 0 0 0 447,111
Reimbursed Expenses (9,733) (7,880) (30,454) (18,983) (478,606)
Telephone And Utilities 584 481 1,431 1,616 56,223
Transfer Fees And Costs 769 2,472 1,588 3,752 37,702
Travel And Entertainment 7,039 3,815 23,290 7,819 257,323
Watchman 1,375 300 2,755 1,250 33,387
------------- ------------ ------------- ------------- --------------
Total Expenses 96,957 74,125 237,463 181,295 4,778,280
------------- ------------ ------------- ------------- --------------
INCOME (LOSS) BEFORE
NON-OPERATING ITEMS (96,957) (74,125) (237,463) (181,295) (4,501,133)
------------- ------------ ------------- ------------- --------------
NON-OPERATING INCOME (EXPENSES):
Interest Income 925 214 2,419 505 35,711
Interest (Expense) (13,962) (16,179) (40,829) (53,378) (1,073,500)
Forgiveness Of Debt By Related Parties 0 0 0 0 101,509
Gain On Sale Of Securities 0 0 0 0 6,160
Other 0 0 0 0 42,965
------------- ------------ ------------- ------------- --------------
Total Non-Operating Income (Loss) (13,037) (15,965) (38,410) (52,873) (887,155)
------------- ------------ ------------- ------------- --------------
INCOME (LOSS) BEFORE TAXES
AND SUBSIDIARY LOSS (109,994) (90,090) (275,873) (234,168) (5,388,288)
Minority Interest In Subsidiary Loss 7,015 6,225 25,197 23,522 884,644
Equity In Loss Of Unconsolidated
Subsidiary 0 0 0 0 (12,416)
Income Taxes 0 0 0 0 (768)
------------- ------------ ------------- ------------- --------------
NET INCOME (LOSS) $ (102,979) $ (83,865) $ (250,676) $ (210,646) $ (4,516,828)
============= ============ ============= ============= ==============
NET INCOME (LOSS) PER SHARE
(Note 2) $ (0.01) $ (0.01) $ (0.02) $ (0.02)
============= ============ ============= ============= ==============
</TABLE>
.
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Statement Of
AND SUBSIDIARIES Stockholders' Equity For The
(A Development Stage Company) Period From Inception (May 1,
Spokane, Washington 1983) To September 30, 1996
(Continued)
UNAUDITED
Deficit
Accumulated
Additional During
Common Stock Paid-In Treasury Stock Exploration
Shares Amount Capital Shares Amount Stage Total
------------- ------------ ------------- -------- --------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balances, May 1, 1983 0 $ 0 $ 0 0 $ 0 $ 0 $ 0
Stock Issued For Cash,
July 1983, $0.01
Per Share 400,000 4,000 0 0 0 0 4,000
Stock Issued For
Mining Claims And
Leases, April 1985,
And January 1986,
$0.015 Per Share 30,130,328 471,397 0 0 0 0 471,397
4:1 Reverse Stock
Split (Note 1) (22,897,746) 0 0 0 0 0 0
Change From No-Par
To $0.001 Par 0 (467,764) 467,764 0 0 0 0
------------- ------------ ------------- -------- --------- ------------ -------------
Balances, December
31, 1983 7,632,582 7,633 467,764 0 0 0 475,397
Stock Issued For Cash
March 1984, $0.08
Per Share 937,500 938 74,062 0 0 0 75,000
Costs Of Offering 0 0 (9,081) 0 0 0 (9,081)
Net Income 0 0 0 0 0 4,349 4,349
------------- ------------ ------------- -------- --------- ------------ -------------
Balances, December
31, 1984 8,570,082 8,571 532,745 0 0 4,349 545,665
Net (Loss) 0 0 0 0 0 (115,602) (115,602)
------------- ------------ ------------- -------- --------- ------------ -------------
Balances, December
31, 1985 8,570,082 8,571 532,745 0 0 (111,253) 430,063
Stock Issued For Cash,
July 1986, $0.60
Per Share 705,211 705 422,415 0 0 0 423,120
Costs Of Offering 0 0 (9,848) 0 0 0 (9,848)
Stock Issued For Cash,
December 1986:
$0.60 Per Share 166,667 167 99,833 0 0 0 100,000
$1.00 Per Share 100,000 100 99,900 0 0 0 100,000
Net (Loss) 0 0 0 0 0 (133,173) (133,173)
------------- ------------ ------------- -------- --------- ------------ -------------
Balances, December
31, 1986 9,541,960 9,543 1,145,045 0 0 (244,426) 910,162
Prior Period Adjust-
ment (Note 9) 0 0 0 0 0 (12,416) (12,416)
------------- ------------ ------------- -------- --------- ------------ -------------
Balances, December
31, 1986 As Restated 9,541,960 $ 9,543 $ 1,145,045 0 $ 0 $ (256,842) $ 897,746
------------- ------------ ------------- -------- --------- ------------ -------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Statement Of
AND SUBSIDIARIES Stockholders' Equity For The
(A Development Stage Company) Period From Inception (May 1,
Spokane, Washington 1983) To September 30, 1996
(Continued)
UNAUDITED
Deficit
Accumulated
Additional During
Common Stock Paid-In Treasury Stock Exploration
Shares Amount Capital Shares Amount Stage Total
---------- ----------- ------------- ------------ --------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balances, December
31, 1986 As Restated 9,541,960 $ 9,543 $ 1,145,045 0 $ 0 $ (256,842) $ 897,746
Stock Issued For:
Services, February
1987, $0.60 Per
Share 21,784 22 13,048 0 0 0 13,070
Services, March
1987, $0.60 Per
Share 6,660 6 3,990 0 0 0 3,996
Cash, April-Sept 1987,
$1.40 Per Share 576,123 576 805,999 0 0 0 806,575
Services, June 1987,
$1.40 Per Share 3,699 4 5,175 0 0 0 5,179
Buildings, Land,
Equipment, Mining,
Leases, July 1987,
$1.06 Per Share 761,548 762 809,151 0 0 0 809,913
Increased Partnership
Interest, October 1,
1987, $0.10 Per
Share (Note 2) 269,167 269 (45,367) 0 0 0 (45,098)
Treasury Stock
Acquired 0 0 0 (237,900) 0 0 0
Net (Loss) 0 0 0 0 0 (301,868) (301,868)
---------- ----------- ------------- ------------ --------- -------------- --------------
Balances, December
31, 1987 11,180,941 11,182 2,737,041 (237,900) 0 (558,710) 2,189,513
Stock Issued For:
Services, Feb 1988,
$1.40 Per Share 683 1 955 0 0 0 956
Services, Sept 1988,
$1.50 Per Share 200 0 300 0 0 0 300
Sale Of Treasury Stock 0 0 1,272 20,000 0 0 1,272
Net (Loss) 0 0 0 0 0 (446,594) (446,594)
---------- ----------- ------------- ------------ --------- -------------- --------------
Balances, December
31, 1988 11,181,824 11,183 2,739,568 (217,900) 0 (1,005,304) 1,745,447
Stock Issued For:
Assets, Sept 1989
$0.90 Per Share 1,000 1 899 0 0 0 900
Operating Expenses,
May-Dec 1989 8,200 8 6,647 0 0 0 6,655
Net (Loss) 0 0 0 0 0 (549,042) (549,042)
---------- ----------- ------------- ------------ --------- -------------- --------------
Balances, December
31, 1989 11,191,024 $ 11,192 $ 2,747,114 (217,900) $ 0 $ (1,554,346) $ 1,203,960
---------- ----------- ------------- ------------ --------- -------------- --------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Statement Of
AND SUBSIDIARIES Stockholders' Equity For The
(A Development Stage Company) Period From Inception (May 1,
Spokane, Washington 1983) To September 30, 1996
(Continued)
UNAUDITED
Deficit
Accumulated
Additional During
Common Stock Paid-In Treasury Stock Exploration
Shares Amount Capital Shares Amount Stage Total
---------- ----------- ------------- ------------ --------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balances, December
31, 1989 As Restated 11,191,024 $ 11,192 $ 2,747,114 (217,900) $ 0 $ (1,554,346) $ 1,203,960
Stock Issued For:
Services 0 0 0 1,000 0 0 0
Operating Expenses,
Jan 1990, $0.47 200 0 94 0 0 0 94
June 1990, $0.81 27,231 27 22,098 0 0 0 22,125
Oct 1990, $1.25 5,000 5 6,245 0 0 0 6,250
Patents
Oct 1990, $1.25 8,000 8 9,992 0 0 0 10,000
Cash 4th Quarter
$1.25 Per Share 188,456 189 235,319 0 0 0 235,508
Net (Loss) 0 0 0 0 0 (515,868) (515,868)
---------- ----------- ------------- ------------ --------- -------------- --------------
Balances, December
31, 1990 11,419,911 11,421 3,020,862 (216,900) 0 (2,070,214) 962,069
Stock Issued For:
Cash 1st Quarter 16,500 16 20,609 0 0 0 20,625
Operating Expenses,
Sept 1991, $1.00 1,000 1 999 0 0 0 1,000
Oct 1991, $0.905 10,000 10 9,040 0 0 0 9,050
Recision Of Treasury
Stock 2nd Quarter 0 0 0 216,900 0 0 0
Contributed Capital
From Directors 0 0 208,036 0 0 0 208,036
Net (Loss) 0 0 0 0 0 (383,578) (383,578)
---------- ----------- ------------- ------------ --------- -------------- --------------
Balances, December
31, 1991 11,447,411 11,448 3,259,546 0 0 (2,453,792) 817,202
Stock Issued For:
Reduction Of Debt
3rd Quarter 50,262 50 26,338 0 0 0 26,388
Cash 4th Quarter 40,000 40 3,960 0 0 0 4,000
Exercise Of 1990
Option 435,912 436 (436) 0 0 0 0
Options Granted
For Services 0 0 533,975 0 0 0 533,975
Contributed Capital
From Directors 0 0 467,290 0 0 0 467,290
Net (Loss) 0 0 0 0 0 (817,804) (817,804)
---------- ----------- ------------- ------------ --------- -------------- --------------
Balances, December
31, 1992 11,973,585 $ 11,974 $ 4,290,673 0 $ 0 $ (3,271,596) $ 1,031,051
---------- ----------- ------------- ------------ --------- -------------- --------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Statement Of
AND SUBSIDIARIES Stockholders' Equity For The
(A Development Stage Company) Period From Inception (May 1,
Spokane, Washington 1983) To September 30, 1996
(Continued)
UNAUDITED
Deficit
Accumulated
Additional During
Common Stock Paid-In Treasury Stock Exploration
Shares Amount Capital Shares Amount Stage Total
---------- ----------- ------------- --------- --------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balances, December
31, 1992 As Restated 11,973,585 $ 11,974 $ 4,290,673 0 $ 0 $ (3,271,596) $ 1,031,051
Stock Issued For:
Cash
1st Qtr, $0.10 90,000 90 8,910 0 0 0 9,000
2nd Qtr, $1.25 1,000 1 1,249 0 0 0 1,250
3rd Qtr, $0.10 10,000 10 990 0 0 0 1,000
Operating Expenses 10,000 10 12,690 0 0 0 12,700
Exercise Of 1990
Options 2,000 2 (2) 0 0 0 0
Contributed Capital
From Directors 0 0 816,124 0 0 0 816,124
Contributed Capital
Other 0 0 1,250 0 0 0 1,250
Net (Loss) 0 0 0 0 0 (495,513) (495,513)
---------- ----------- ------------- --------- --------- -------------- --------------
Balances, December
31, 1993 12,086,585 $ 12,087 $ 5,131,884 0 $ 0 $ (3,767,109) $ 1,376,862
Stock Issued For:
Cash
$.0.97 50,000 50 48,550 0 0 0 48,600
$0.88 30,000 30 26,430 0 0 0 26,460
$0.97 65,574 66 63,574 0 0 0 63,640
Operating Expenses 12,800 13 39,987 0 0 0 40,000
Prepaid Expenses 12,800 13 39,987 0 0 0 40,000
Reduction Of Debt 8,380 8 29,992 0 0 0 30,000
Operating Expenses 9,120 9 32,706 0 0 0 32,715
Options 110,000 110 10,890 0 0 0 11,000
Contributed Capital
From Directors 0 0 176,108 0 0 0 176,108
Net (Loss) 0 0 0 0 0 (227,991) (227,991)
---------- ----------- ------------- --------- --------- -------------- --------------
Balances, December
31, 1994 12,385,259 $ 12,386 $ 5,600,108 0 $ 0 $ (3,995,100) $ 1,617,394
---------- ----------- ------------- --------- --------- -------------- --------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Statement Of
AND SUBSIDIARIES Stockholders' Equity For The
(A Development Stage Company) Period From Inception (May 1,
Spokane, Washington 1983) To September 30, 1996
(Continued)
UNAUDITED
Deficit
Accumulated
Additional During
Common Stock Paid-In Treasury Stock Exploration
Shares Amount Capital Shares Amount Stage Total
----------- ----------- ------------- --------- --------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balances, December
31, 1994 As Restated 12,385,259 $ 12,386 $ 5,600,108 0 $ 0 $ (3,995,100) $ 1,617,394
Contributed Capital
From Directors 0 0 190,752 0 0 0 190,752
Stock Issued For:
Cash
July $0.97 82,580 83 79,917 0 0 0 80,000
Sept $0.87 115,077 115 99,885 0 0 0 100,000
Oct $0.95 159,260 159 151,804 0 0 0 151,963
Investment: NuPower 100,000 100 (119,349) 0 0 0 (119,249)
Stock Registration Fees 0 0 (4,151) 0 0 0 (4,151)
Net (Loss) 0 0 0 0 0 (271,052) (271,052)
----------- ----------- ------------- --------- --------- ------------- --------------
Balances, December
31, 1995 12,842,176 12,843 5,998,966 0 0 (4,266,152) 1,745,657
Exercise Of 1990
Options 50,000 50 4,950 0 0 0 5,000
Contributed Capital
From Directors 0 0 55,526 0 0 0 55,526
Stock Issued For:
Reduction Of Debt 34,305 33 24,967 0 0 0 25,000
Stock Registration Fees 0 0 (2,000) 0 0 0 (2,000)
Net (Loss) 9 Months
Ended Sept 30, 1996 0 0 0 0 0 (250,676) (250,676)
----------- ----------- ------------- --------- --------- ------------- --------------
Balances, September
30, 1996 12,926,481 $ 12,926 $ 6,082,409 0 $ 0 $ (4,516,828) $ 1,578,507
=========== =========== ============= ========= ========= ============= ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Statement Of Cash Flows
AND SUBSIDIARIES For The Nine Month Periods Ended
(A Development Stage Company) September 30, 1996 And 1995, And
Spokane, Washington From Inception (May 1, 1983 To Date
UNAUDITED
Nine Months Ended Inception
September 30 To
1996 1995 Date
------------ ------------ --------------
<S> <C> <C> <C>
NET CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ (250,676) $ (210,646) $ (4,516,828)
Noncash Expenses, Revenues, Losses And Gains
Included In Income:
Depreciation And Amortization 9,120 9,299 538,717
Forgiveness Of Debt 0 0 (101,509)
Minority (25,197) (23,522) (872,226)
Loss (Gain) On Sale Of Equipment 0 0 (199,220)
Stock Granted For Operating Expenses 0 0 154,090
Stock Issued For Services 0 0 533,975
Accrued Interest Payable
Converted To Debt 1,014 0 57,645
Net (Increase)/Decrease In:
Accounts Receivable (6,154) (8,433) (19,492)
Prepaid Insurance 4,571 0 (1,522)
Stock For Prepaid Expenses 0 0 40,000
Net Increase/(Decrease In:
Accounts Payable 0 (6,000) 17,330
Interest Payable 3,063 (6,571) 133,060
------------ ------------ --------------
Net Cash Flows From Operating Activities (264,259) (245,873) (4,235,980)
------------ ------------ --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions To:
Mining Claims 0 0 (10,728)
Deferred Exploration And Development Costs 0 0 (485,000)
Property, Plant And Equipment (3,518) (3,500) (299,455)
Mining Leases 0 0 (8,848)
Leasehold Improvements 0 0 (9,357)
Patents And Licenses 904 (259) (71,952)
Deposits And Advance
Minimum Royalties 0 0 (52,591)
Partnership Investment 0 0 90,749
Organization Costs 0 0 (1,296)
Proceeds From:
Sale Of Equipment 0 0 296,876
Redemption Of Bonds And Deposits 0 0 4,933
Loans Made 0 0 (395,456)
Less Repayments 0 0 108,354
------------ ------------ --------------
Net Cash Used By Investing Activities $ (2,614) $ (3,759) $ (833,771)
------------ ------------ --------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MPM TECHNOLOGIES, INC. Consolidated Statement Cash Flows
AND SUBSIDIARIES For The Nine Month Period Ended
(A Development Stage Company) September 30, 1996 And 1995, And
Spokane, Washington From Inception (May 1, 1983) To Date
(Continued)
UNAUDITED
Nine Months Ended Inception
September 30 To
1996 1995 Date
------------ ------------ --------------
<S> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds Of Short-Term Debt $ 275,000 $ 69,651 $ 2,558,112
Payments To Settle Debt (108,973) (169,889) (1,718,960)
Issuance Of Long-Term Debt 0 0 288,184
Sale of Treasury Stock 0 0 1,272
Contributed Capital 83,442 187,115 1,943,002
Issuance Of Common Stock 84 180,000 2,119,496
------------ ------------ --------------
Net Cash Provided By Financing Activities 249,553 266,877 5,191,106
------------ ------------ --------------
Net Increase/(Decrease) In Cash (17,320) 17,245 121,355
Beginning Cash Balance 138,675 102,322 0
------------ ------------ --------------
Ending Cash Balance $ 121,355 $ 119,567 $ 121,355
============ ============ ==============
</TABLE>
<PAGE>
MPM TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS
AND SUBSIDIARIES
(A Development Stage Company)
Spokane, Washington
NOTE 1 - UNAUDITIED FINANCIAL STATEMENTS
These financial statements should be read in conjunction with the audited
financial statements included in the Annual Report on Form 10-KSB for the year
ended December 31, 1995. Since certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting standards have been omitted pursuant to the rules and
regulations of the Securities and Exchange Commission, these financial
statements specifically incorporate by reference the footnotes to the
consolidated financial statements of the Company as of December 31, 1995. In
the opinion of management, these unaudited interim financial statements reflect
all adjustments necessary for a fair presentation of the financial position and
results of operations and cash flows of the Company. Such adjustments
consisted only of those of a normal recurring nature. Results of operations
for the period ended September 30, 1996, should not necessarily be taken as
indicative of the results of operations that my be expected for the entire year
1996.
(The Remainder of This Page Intentionally Left Blank)
<PAGE>
PART I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
(a) Review of Operations
MINING
The Company owns or controls 45 patented and unpatented lode claims amounting
to approximately 750 acres in the heart of the historical Emery Mining
District, Powell County, Montana. The 45 claims include: eight patented
claims and sixteen unpatented claims owned by the Company and eight patented
claims and thirteen unpatented claims leased by the Company.
To date the Company has expended over $1.3 million on exploration and
development, lease payments and claims. Additionally, over $532,000 has been
expended by the Company on buildings, mill machinery, vehicles and equipment.
Management is currently negotiating with several mining companies for a joint
venture to further explore and develop the properties.
WASTE-TO-ENERGY
During the Third Quarter of 1996, the Company's venture partner USF Smogless
moved forward with permitting, site evaluation and selection pursuant to the
agreement entered with a consortium of European companies during the First
Quarter of 1996. The agreement calls for utilization of the Skygas technology
along with USF Smogless' proprietary Flotherm technology for the destruction of
selected wastes and for the creation of fuel gas. The project is estimated to
be in excess of $10 million of capital investment.
On August 1, 1996, the Company announced USF Smogless had signed a cooperation
agreement with Tecnoparco Valbasento to install in the Pisticci Scalo area
(Matera, Italy) a Skygas system for the gasification of organic materials.
The Company is currently in negotiations for Skygas installations in Taiwan,
South Korea, Thailand, China, Europe and North America.
The Skygas process is a two reactor system (primary and secondary) for the
disposal of carbonaceous wastes by converting these wastes into a clean burning
medium BTU fuel gas. In March of 1990, NuPower, a Montana general partnership,
in which NuPower, Inc., a wholly owned subsidiary of MPM Technologies, Inc.,
owns a 58.21% interest, entered into an agreement with Smogless S.p.A., Milan,
Italy, and Xytel Technologies, Inc., of Mt. Prospect, IL, for the purpose of
commercializing the Skygas process. Smogless agreed to finance, engineer,
build, test and operate a commercial demonstration facility. Xytel agreed to
handle all promotional work, public relations, advertising and marketing of the
process.
During 1995, Smogless was purchased by United States Filter Corp. (NYSE: USF)
and renamed USF Smogless. During the First Quarter of 1996, Xytel announced
it had changed its name to Unitel Technologies, Inc. Percentage of interest in
the Skygas Venture is as follows: NuPower - 70%; USF Smogless - 15%; and
Unitel Technologies, Inc. - 15%.
(b) Liquidity
During the Third Quarter of 1996, the sole source of revenue was from nominal
interest on bank accounts. Funds for operations were provided by cash
reserves, reimbursement of expenses from Unitel Technologies and USF Smogless
and from the sale of company stock.
<PAGE>
(c) Capital Resources
The Company utilized funds received primarily for general operational expenses.
Minimal activity was spent by the Company on the mining properties during the
Third Quarter of 1996. Management is negotiating with various mining companies
for a joint venture which would reduce mining expenses. Management believes
that further development costs relating to the Skygas process will be minimal
due to the venture now in place.
QUARTER ENDED 9/30/96 COMPARED TO QUARTER ENDED 9/30/95
Results of Operations
1996 1995 Inc/(Dec) % of Change
----------- ---------- ---------- -----------
Working Capital (Deficit) (1,008,700) (910,819) (97,881) ( 10.7)
Total Operating Expenses 96,957 74,125 22,832 30.8
Interest Expenses 13,962 16,179 ( 2,217) ( 13.7)
Contract Services ( 18,605) 18,000 (36,605) ( 203.4)
Insurance 4,399 8,700 ( 4,301) ( 49.4)
Legal and Accounting 44,205 3,511 40,694 1,159.0
Office and Postage 11,898 7,197 4,701 65.3
Reimbursed Expenses 9,733 7,880 1,853 23.5
Travel and Entertainment 7,039 3,815 3,224 84.5
Net Income (Loss) ( 102,979) ( 83,865) (19,114) ( 22.8)
<PAGE>
PART II
ITEM 1. LEGAL PROCEEDING
The Company knows of no litigation present, threatened or contemplated or
unsatisfied judgment against the Company, its officers or directors or any
proceedings in which the Company, its officers or directors are a party.
ITEM 2. CHANGES IN SECURITIES
The rights of the holders of the Company's securities have not been modified
nor have the rights evidenced by the securities been limited or qualified by
the issuance or modification of any other class of securities.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
There are no senior securities issued by the Company.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of the Stockholders of the Company was held on September 9,
1996, with the following results:
1. Election of Directors
Myron Katz For: 9,919,486 Withhold: 79,420
Daniel D. Smozanek For: 9,920,486 Withhold: 78,420
2. To approve the appointment of Terrence J. Dunne, CPA, PS, as independent
auditors for the corporation for 1996.
For: 9,914,136 Against: 70,450 Abstain: 14,320
The total voted shares, 9,998,906, represents 76.78% of the common stock
outstanding. At record date July 26, 1996, the stock outstanding was
13,022,376.
ITEM 5. OTHER INFORMATION
There is no other information to report under this item.
8-K Filings
- -----------
There were no 8-K filings during the Third Quarter of 1996.
<PAGE>
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.
MPM TECHNOLOGIES, INC.
11/13/1996 /s/Robert D. Little
--------------------- -------------------------
(Date) Robert D. Little
Secretary
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 121355
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 154472
<PP&E> 666996
<DEPRECIATION> 341237
<TOTAL-ASSETS> 2029297
<CURRENT-LIABILITIES> 1163172
<BONDS> 0
0
0
<COMMON> 12926
<OTHER-SE> 1565581
<TOTAL-LIABILITY-AND-EQUITY> 2029297
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 237463
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 40829
<INCOME-PRETAX> (275873)
<INCOME-TAX> 0
<INCOME-CONTINUING> (250676)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (250676)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
