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: December 31, 1999
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 December 31, 1999, the registrant has outstanding 759,883,407 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 -
December 31, 1999 3
Consolidated Statement of Operations -
For The Three Months Ended December 31, 1999 4
Consolidated Statement of Cash Flows -
For The Three Months Ended December 31, 1999 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
December 31, 1999
<PAGE> 3
E'PRIME AEROSPACE CORPORATION AND SUBSIDIARIES
(A Development Stage Company)
Consolidated Balance Sheet
December 31, 1999
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 242,716
Other assets:
Deposits 9,336
-----------
Total assets $ 254,594
===========
Liabilities and Stockholders' Deficit
Current liabilities:
Notes payable $ 1,486,728
Due to related parties 2,086,358
Accounts payable 398,715
Accrued salaries, wage and payroll taxes 2,032,960
Accrued consultant fees 123,866
Accrued interest payable 1,434,140
------------
Total liabilities 7,562,767
------------
Stockholders' deficit:
Common stock, no par value, 900,000,000
shares authorized; issued and outstanding
759,883,407
June 30, 1999 and September 30, 1998,
respectively 7,763,160
Additional paid-in capital 212,000
Deficit accumulated during the development
period (15,283,333)
------------
Total stockholders' deficit (7,308,173)
------------
Total liabilities and
stockholders' deficit $ 254,594
============
<PAGE> 4
E'PRIME AEROSPACE CORPORATION AND SUBSIDIARIES
(A Development Stage Company)
Consolidated Statements of Operations
Three
months ended
December 31,
1999
--------------
Revenue:
Service revenue $ -
------------
Total revenue -
------------
Expenses:
General and administrative 263,016
------------
Total expenses 263,016
------------
Net loss $ (263,016)
===========
Basic EPS:
Net loss per common share $ (0.0003)
===========
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E'PRIME AEROSPACE CORPORATION AND SUBSIDIARIES
(A Development Stage Company)
Consolidated Statements of Cash Flows
Three
months ended
December 31,
1999
--------------
Cash flows from operating activities:
Net loss $ (263,016)
Adjustments to reconcile net loss to cash
provided by (used in) operating activities:
Depreciation 546
Shares issued for services rendered 19,995
Cash provided by (used for) changes in:
Other receivables -
Deposits -
Due to related parties 52,810
Accounts payable 9,907
Accrued salaries, wages and payroll taxes 37,616
Accrued interest payable 42,142
-------------
Net cash provided by (used in)
operating activities (100,000)
Cash flows from investing activities:
Equipment acquisitions -
Cash flows from financing activities:
Shares issued for repayment of debt 100,000
-------------
Net increase (decrease) in cash -
Cash at beginning of period 142
-------------
Cash at end of period $ 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
December 31, 1999, the Company has a working capital deficit of $7,308,173.
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: February 22, 1999
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: February 22, 1999
s/Betty S. Davis
Betty S. Davis, Director Date: February 22, 1999