SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended: June 30, 2000
Commission File No.: 33-9472-D
E'PRIME AEROSPACE CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 59-2802081
(State of Incorporation) IRS Employer Identification No.
320 Indian River Avenue, Titusville, FL 32796
(Address of principal executive offices)
407-269-0900
(Registrant's telephone number, including area code)
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 for the past 90 days. Yes_X_No__
As of June 30, 2000, the registrant has outstanding 770,305,061 shares
of common stock and 12,471,800 "B" Stock Purchase Warrants.
<PAGE> 2
E'PRIME AEROSPACE CORPORATION AND SUBSIDIARIES
(A Development Stage Company)
INDEX
Page
Part I - Financial Information
Item 1. Financial Statements
Consolidated Balance Sheet -
June 30, 2000 3
Consolidated Statement of Operations -
For The Three Months And Nine Months Ended June 30, 2000 4
Consolidated Statement of Cash Flows -
For The Three Months And Nine Months Ended June 30, 2000 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II
Item 6. Exhibits and Reports on Form 8-K
No exhibits are filed as a part of this Form 10QSB
No reports on Form 8-K have been filed during the quarter ended
June 30, 2000
<PAGE> 3
E'PRIME AEROSPACE CORPORATION AND SUBSIDIARIES
(A Development Stage Company)
Consolidated Balance Sheet
June 30, 2000
Assets
Current assets:
Cash and cash equivalents $ 142
Other receivables -
Prepaid expenses 2,400
-------------
Total current assets 2,542
-------------
Property and equipment, at cost, net
of accumulated depreciation 241,624
-------------
Total assets $ 244,166
=============
Liabilities and Stockholders' Deficit
Current liabilities:
Notes payable $ 1,486,728
Due to related parties 2,447,293
Accounts payable 374,814
Accrued salaries, wage and payroll taxes 2,071,654
Accrued consultant fees 123,866
Accrued interest payable 1,519,186
------------
Total liabilities 8,023,541
------------
Stockholders' deficit:
Common stock, no par value, 900,000,000
shares authorized; issued and outstanding
770,305,061 9,241,241
Additional paid-in capital 212,000
Deficit accumulated during the development
period (17,232,616)
------------
Total stockholders' deficit (7,779,375)
------------
Total liabilities and
stockholders' deficit $ 244,166
============
<PAGE> 4
E'PRIME AEROSPACE CORPORATION AND SUBSIDIARIES
(A Development Stage Company)
Consolidated Statements of Operations
Three Nine
Months Ended Months Ended
June 30, June 30,
2000 2000
------------ ------------
Revenue:
Service revenue $ - -
------------ ------------
Total revenue - -
------------ ------------
Expenses:
General and administrative 1,682,044 2,212,299
------------ ------------
Total expenses 1,682,044 2,212,299
------------ ------------
Net loss $(1,682,044) (2,212,299)
============ ============
Basic EPS:
Net loss per common share $ (0.0022) (0.0029)
============ ============
<PAGE> 5
E'PRIME AEROSPACE CORPORATION AND SUBSIDIARIES
(A Development Stage Company)
Consolidated Statements of Cash Flows
Three Nine
Months Ended Months Ended
June 30, June 30,
2000 2000
------------ ------------
Cash flows from operating activities:
Net loss $(1,682,044) (2,212,299)
Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
Depreciation 546 1,638
Shares issued for services rendered 1,463,770 1,498,076
Shares issued for repayment of debt 100,000
Cash provided by (used for) changes in:
Other receivables - -
Deposits 9,336 9,336
Due to related parties 152,335 413,745
Accounts payable (6,629) (13,994)
Accrued salaries, wages and payroll taxes 19,605 76,310
Accrued interest payable 43,081 127,188
------------ ------------
Net cash provided by (used in)
operating activities - -
Cash flows from investing activities: - -
Cash flows from financing activities: - -
------------ ------------
Net increase (decrease) in cash - -
Cash at beginning of period 142 142
------------ ------------
Cash at end of period $ 142 142
============ ============
<PAGE> 6
Notes to Consolidated Financial Statements
The Notes to Consolidated Financial Statements are essentially the same as
those stated in the Company's 10KSB for the year ended September 30, 1999.
<PAGE> 7
Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and capital resources
Over the past several years, the Company has expended substantial funds in the
development of its business. Sources of capital during this time have included
stock sales, advances from shareholders and short term funding. As of
June 30, 2000, the Company has a working capital deficit of $8,020,999.
In order to complete its development and reach full operational capability
and, in order to satisfy existing liabilities, the Company will need to obtain
substantial additional capital. Management is currently engaged in
negotiations to secure the necessary funds to complete implementation of its
launch technology, repay existing liabilities and fund facility construction.
Results of Operations
Since its inception, the Company has been in the development stage.
Accordingly, the Company has not generated any revenues from operations and
has not projected significant revenues until its development stage is
completed and financing can be obtained for its operations. Through the year
ended September 30, 1999, the Company has incurred an accumulated deficit of
$15,020,317.
<PAGE> 8
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, E'Prime Aerospace Corporation has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized:
E' PRIME AEROSPACE CORPORATION
s/B. G. Davis
By: B. G. Davis, President Date: July 11, 2000
Pursuant to the requirements of the Securities Exchange Act of 1934, this
Report has been signed by the following persons on behalf of the Company and
in the capacities and on the dates indicated:
s/B. G. Davis
B. G. Davis, Director Date: July 11, 2000
s/Betty S. Davis
Betty S. Davis, Director Date: July 11, 2000
