UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Qtr. Ended: September 30,1999 File No.: 2-20954-NY
KBF POLLUTION MANAGEMENT, INC.
(Exact name of registrant as specified in its charter)
NEW YORK 11-2687588
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
1 JASPER STREET PATERSON NEW JERSEY 07522
(Address of principal executive offices)
(973) 942-7700
(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
requirements for the past 90 days. Yes X. No
Indicate the number of shares outstanding of each of the registrant's classes of
stock as of
November 11, 1999:
Common stock, $.00001 par value - 66,463,500 shares outstanding.
Transitional Small Business Disclosure Format:
Yes X ; No .
--- ---
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INDEX
<S> <C>
PART I - FINANCIAL INFORMATION
Item I - FINANCIAL STATEMENTS (Unaudited)
Balance Sheets -
September 30, 1999 and December 31, 1998 3-4
Statement of Income -
Nine Months Ended September 30, 1999 and 1998 5
Three Months Ended September 30, 1999 and 1998 6
Statement of Cash Flows -
Nine Months Ended September 30, 1999 and 1998 7-8
Notes to Financial Statements 9
Item II - MANAGEMENT'S DISCUSSION AND ANALYSIS 10-14
PART II - OTHER INFORMATION 15
SIGNATURES 15
</TABLE>
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
BALANCE SHEET
ASSETS
<TABLE>
<CAPTION>
9/30/99 12/31/98
Unaudited Audited
--------- --------
<S> <C> <C>
CURRENT ASSETS:
Cash $ 200,622 $ 300,213
Cash - Restricted 0 27,500
Trade Accounts Receivable (Net of
allowance for doubtful accounts
of $52,688 & $31,183) 654,237 421,411
Marketable Securities - Restricted 52,230 86,591
Inventories 17,275 12,707
Prepaid Expendable Supplies 13,821 13,821
Other Prepaid Expenses 66,580 11,854
------------ ------------
Total Current Assets 1,004,765 874,097
FIXED ASSETS:
Property, Equipment & Improvements
(Net of Accumulated Depreciation &
Amortization of $1,616,006 & $1,371,641) 3,217,503 1,923,229
Leased Property under Capital Leases
(Amortization of $301,854 & $287,226) 335,263 88,527
Non Expendable Stock, Parts & Drums 137,768 137,768
------------ ------------
Total Fixed Assets, Net 3,690,534 2,149,524
OTHER ASSETS:
Security Deposits 42,634 2,844
Other Receivables 401,956 350,820
License/Patent (Net of Accumulated Amortization
of $1,750 & $1,000) 14,345 13,922
Other Intangibles 89,943 47,279
Prepaid Financing Cost 0 47,070
------------ ------------
Total Other Assets 548,878 461,935
------------ ------------
TOTAL ASSETS $5,244,177 $3,485,556
========== ==========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
BALANCE SHEET
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
9/30/99 12/31/98
Unaudited Audited
--------- ---------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts Payable - Trade $ 591,887 $ 383,367
Accrued Expenses 66,950 191,509
Taxes Withheld & Accrued 58 5,801
Deposit Payable 0 40,000
Current Portion of Capital Lease
Obligations 111,089 67,768
------------ ------------
Total Current Liabilities 769,984 688,445
LONG-TERM LIABILITIES:
Long - Term Debt 1,275,000 0
Long - Term Lease Obligations 261,878 160,085
----------- -----------
Total Long - Term Liabilities 1,536,878 160,085
STOCKHOLDERS' EQUITY (DEFICIT) :
Com. Stock par value .00001 per sh.
Authorized - 500,000,000 shares
Issued & Outstanding
September 30, 1999 - 66,463,500 664 0
Dec. 31, 1998 - 64,034,660 0 640
Capital in Excess of Par Value 7,358,295 6,367,040
Unrealized Gain (Loss) on Available-for-Sale Securities (34,361) 0
Retained Earnings (Deficit) (4,387,283) (3,730,654)
----------- ----------
Total Stockholders' Equity (Deficit) 2,937,315 2,637,026
----------- ------------
TOTAL LIABILITIES
& STOCKHOLDERS' EQUITY (DEFICIT) $ 5,244,177 $ 3,485,556
=========== =============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
9/30/99 9/30/98
-------- -------
<S> <C> <C>
REVENUES $ 1,940,679 $ 2,568,115
- --------
LESS: Cost of Operations 1,573,038 992,345
- ---- -------------- ---------------
Gross Profit 367,641 1,575,770
LESS: General & Admin. Expenses 852,205 712,244
- ----
Selling Expenses 205,793 74,397
-------------- --------------
Operating Income (Loss) (690,357) 789,129
OTHER INCOME (EXPENSES):
Interest Income 53,237 24,032
Interest Expense (16,241) (20,139)
Income Tax Provision (3,267) (4,787)
--------------- ----------------
NET INCOME (LOSS) (656,628) 788,235
- -----------------
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized Holding Losses ( 34,361) (322,574)
--------------- ---------------
COMPREHENSIVE INCOME (LOSS) $ (690,989) $ 465,661
- --------------------------- ============= ==============
Number of Shares Outstanding 66,463,500 58,501,160
Earnings Per Share from Operations $ (.01) $ .01
=============== ===============
Earnings Per Share - Net Income (Loss) $ (.01) $ .01
=============== ===============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
9/30/99 9/30/98
------- --------
<S> <C> <C>
REVENUES $ 835,426 $ 623,345
- --------
LESS: Cost of Operations 648,565 339,291
- ---- -------------- --------------
Gross Profit 186,861 284,054
LESS: General & Admin. Expenses 260,691 260,076
- -----
Selling Expenses 61,556 30,600
-------------- --------------
Operating Income (Loss) (135,386) (6,622)
OTHER INCOME (EXPENSES):
Interest Income 17,491 16,806
Interest Expense (5,791) (5,966)
Income Tax Provision (1,252) (3,293)
--------------- ---------------
NET INCOME (LOSS) (124,938) 925
- ------------------
OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized Holding Losses (16,491) (250,812)
--------------- ---------------
COMPREHENSIVE INCOME (LOSS) $ ( 141,429) $ (249,887)
- --------------------------- ============= ==============
Number of Shares Outstanding 66,463,500 58,501,160
Earnings Per Share from Operations $ (.01) $ (.01)
=============== ===============
Earnings Per Share - Net Income (Loss) $ (.01) $ .01
=============== ===============
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
9/30/99 9/30/98
------ -------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash Received from Customers $ 1,628,855 $ 1,338,870
Cash Paid to Suppliers & Employees (1,948,840) (806,286)
Interest & Dividends Received 2,101 1,420
Interest Paid (16,441) (20,207)
Income Taxes Paid (6,708) (4,672)
----------------- ----------------
Net Cash Provided (Used) by
Operating Activities (341,033) 509,125
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from Sale of Equipment 24,000 0
Cash Purchases of Intangible Assets (20,741) 0
Cash Purchases of Equipment (1,681,931) (1,107,757)
------------------ -----------------
Net Cash Provided (Used) in Investing
Activities (1,678,672) (1,107,757)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Sale of Stock &
Warrants 500,000 506,670
Proceeds from Long-Term Debt 1,470,364 0
Repayment of Long-Term Debt &
Capital Lease Obligations (50,250) (44,727)
----------------- ---------------
Net Cash Provided (Used) by Financing
Activities 1,920,114 461,943
----------------- ---------------
NET INCREASE (DECREASE) IN CASH (99,591) (136,689)
CASH at Beginning of Period 300,213 224,643
----------------- ---------------
CASH at End of Period $ 200,622 $ 87,954
================= ===============
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
9/30/99 9/30/98
------- --------
<S> <C> <C>
RECONCILIATION OF NET INCOME TO NET
CASH FROM OPERATING ACTIVITIES:
NET INCOME (LOSS) $ (656,628) $ 788,235
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation 263,562 187,242
Amortization 750 897
Expenses Paid in Stock 76,350 0
Bad Debts 39,230 1,088
Interest Income (51,136) 0
Loss from Discontinued Operations 22,759 0
(Increase) Decrease in :
Restricted Cash 27,500 0
Trade Accounts Receivable (311,824) (25,882)
Other Receivables 0 (842,561)
Inventories (4,568) (10,803)
Prepaid Expenses & Deposits (47,446) 176,110
Increase (Decrease) in:
Accounts Payable 361,467 155,574
Withholding Taxes Payable (5,441) (6,584)
Deposit Payable 0 40,000
Accrued Expenses (55,608) 45,809
-------------- --------------
$ (341,033) $ 509,125
============== ==============
Supplemental schedule of non-cash
investing and financing activities:
Common Stock and Options issued for the
payment of accounts payable and accrued expenses. $ 100,833 $ 238,000
=========== =============
Common Stock issued for the payment of
underwriting costs, equipment & expenses. $ 351,220 $ 0
=========== =============
Common Stock issued for the payment of
notes payable. $ 0 $ 60,000
============ =============
Common Stock received for the
payment of other receivables. $ 500,000 $ 500,000
============= =============
Revaluation of Available-for-sale-securities. $ 34,361 $ (322,574)
============= =============
</TABLE>
See accompanying notes to financial statements.
8
<PAGE>
KBF POLLUTION MANAGEMENT, INC.
AND SUBSIDIARIES
SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1 -BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions and item 310(b) of Regulations S-B. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for fair presentation have been included. Operating results
for the nine months ended September 30, 1999 are not necessarily indicative of
the results that may be expected for the year ended December 31, 1999. For
further information, refer to the financial statements and footnotes thereto
included in the Company's 1998 annual report filed on Form 10-K and Form 10-SB.
NOTE 2 - INVENTORIES
Inventories are comprised of the following major categories:
9/30/99 12/31/98
-------- ---------
Shipping Supplies $ 2,857 $ 2,857
Reagents 14,418 9,850
------ -----
$ 17,275 $ 12,707
======== ========
NOTE 3 - NOTES PAYABLE
As of the date of this report, the Company concluded $1,325,000 of debt
financing through AMR, Inc., its wholly owned subsidiary, with twelve (12)
private individuals, of which $1,275,000 has been collected as of September 30,
1999. An additional $50,000 was collected in October, 1999. The terms of the
obligations call for repayment over 24 months, beginning the date AMR, Inc.
commences operations, utilizing 41% of the net pre-tax revenues of the
subsidiary to make said repayments, with interest computed at 6.5%. The note
also provides for a conversion feature into KBF Pollution Management common
stock, converting at market value on the conversion date (of restricted stock
less a 25% lack of marketability discount), should any of the obligations remain
at the end of the second year. The packages include a business-unit-specific
profit participation component for the lender, after the note has been
satisfied, which totals 26% of the business-unit-specific profit.
9
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE FOLLOWING DISCUSSION SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES SET FORTH ELSEWHERE IN THIS REPORT.
RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 1999
AS COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 1998
Total revenues for the nine months September 30, 1999 decreased to $1,940,679 as
compared to $2,568,115 for the same period in 1998, a decrease of 25%. The
Company attributes the decrease predominately to the non-recurring initial
license fee of $500,000 received during the first quarter of 1998 and royalty
income of $321,123, relating to the terminated Solucorp Industries agreement
(see 10KSB 12/31/98). Total revenues for the nine months ended September 30,
1999 as compared to the adjusted revenues for the same period in 1998, without
regard to the licensing fee and royalty income, increased by 10%. This increase
in revenues is due to the Company's move to New Jersey where there are increased
business opportunities, along with the Company's expansion of both internal and
external sales efforts, increased market penetration and the expansion of the
SST processing capabilities.
Trade accounts receivable has increased 38% over the past three months, most of
which is 0-30 days. Current trade accounts receivable are as follows:
0 -30 days $480,844
30-45 days 125,002
45-60 days 17,292
60-90 days 16,147
90-120 days 10,660
120 + days 56,980
--------
$706,925
========
An allowance for doubtful accounts in the amount of $52,688 has been provided
against the foregoing receivables, which are presented on the balance sheet net
of said allowance. Based upon the Company's collection history, management
believes this allowance is adequate.
Trade accounts receivable collected in cash subsequently through November
10,1999 was $473,821.
Long-term accounts receivable (other receivable) represents minimum royalties
due from Solucorp relating to the licensing agreement terminated in 1998. These
amounts are due December 31, 1999 and are presented at present value, net of an
allowance for uncollectability as follows:
Minimum Royalty $ 750,000
Discount to Present Value (107,753)
--------
Present Value of Minimum Royalty 642,247
Interest Earned through September 30, 1999 80,833
--------
Total Other Receivable & Revenue
Before Allowance 723,080
Allowance for Doubtful Accounts (321,124)
----------
Total Other Receivable Presented
And Revenue Reflected Herein $ 401,956
==========
10
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 1999
AS COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 1998 (continued)
Cost of sales for the nine months ended September 30, 1999 increased to 81% of
revenues from 39% of revenues for the same period in 1998. This increase is
primarily the result of the non-recurring license fee of $500,000 and royalty
income of $321,123 relating to the terminated Solucorp Industries agreement
included in sales in the first nine months of 1998. The percentage cost of sales
without regard to this income in 1998 was 57% of sales. The increase from 57% in
1998 to 81% in 1999 is primarily related to increased facility overhead costs
associated with the significantly larger facility in New Jersey, and
depreciation expenses related to newly acquired equipment.
General and administrative expenses increased by 20% to $852,205 for the nine
months ended September 30, 1999 from $712,244 for 1998. This increase is
primarily due to the increase in legal fees related to the on-going legal action
with Solucorp Industries, increases in management personnel, and additional
administrative staffing.
Selling expenses increased by 176% to $205,793 for the nine months ended
September 30, 1999 as compared to $74,397 for the comparable period in 1998.
This increase is due to the increased sales effort undertaken by management in
1999.
The anticipated savings in moving the Company's facility have predominately been
realized, even though costs, as described above, have increased. Facility
overhead for 1999, which is predominately rent, is being compared to a period in
1998 when the Company, under a temporary agreement, was paying reduced rent.
Further, additional equipment, increasing the Company's capacity, has resulted
in increased utility costs, which exceed the 1998 costs. Had capacity remained
stable, utility costs would have declined. Depreciation relating to this
equipment has also increased costs. The Company's sales efforts and management
personnel costs are also greater than they were in 1998, again distorting the
comparison. Other cost savings, such as telephone, administrative and facility
labor, insurance, etc. are, in fact, lower in New Jersey. Management believes
the Company will continue to derive cost saving benefits relating to its move to
New Jersey, and that these savings may not be readily apparent as the Company
continues to expand its physical capabilities, increase its sales efforts,
employ management and generally grow the Company.
The Company incurred a net loss of -$690,989 for the first nine months of 1999,
a 248% decrease from the net profit of $465,661 for the same period in 1998, due
to the increase in other costs mentioned above.
11
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 1999
AS COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 1998 (continued)
LIQUIDITY AND CAPITAL RESOURCES
The Company has working capital of $234,781 at September 30, 1999 as compared to
$185,652 at December 31, 1998.
As disclosed in Note 3, the Company borrowed an additional $50,000 in the fourth
quarter of 1999. Further, the Company expects to receive $157,000 from the
exercise of stock options, which would have been called by the Company. $137,000
has been received to date. These funds will be used for working capital and to
finance additional expansion.
The Company experienced negative cash flows of $99,591 during the period. This
is due predominately to changes in receivables, payables and equipment
purchases.
Management believes that its current cash position and current operations, and
the funds discussed above will provide adequate cash flow to meet current
obligations.
LONG ISLAND FACILITY
KBF has ceased operations at the Long Island, New York facility, and anticipates
no further costs related to it.
YEAR 2000
The Company's State of Readiness
The Company's information technology systems are presently year 2000 compliant.
All internal programs were written by Company's management with the year 2000
issue incorporated into the initial writing of the programs. The programs have
been tested and management is satisfied that they are working properly.
Year 2000 compliance of the Company's non-information technology system has been
addressed and management feels that systems in place are year 2000 compliant.
Management has received verbal confirmation from many of the third parties that
provide services or products to the Company, and have been assured that they are
year 2000 compliant. The Company is presently developing questionnaires to be
answered by the third parties regarding their level of year 2000 compliance, so
that management has written confirmation as to their status before 1999 is
complete.
12
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS - NINE MONTHS ENDED SEPTEMBER 30, 1999
AS COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 1998 (continued)
YEAR 2000 (continued)
The Costs to Address the Company's Year 2000 Issues
Management believes the estimated costs in connection with the third party
compliance will not be significant.
The Risks of the Company's Year 2000 Issues
Given the nature of the business, management does not believe there is any
significant risk, nor will there be any negative impact on their operations from
any source relating to Year 2000 readiness.
The Company's Contingent Plans
Due to management's comfort with internal control over the information
technology and non-information technology, the Company does not have a
contingency plan. Regarding third parties, management believes any potential
problems or losses arising from the unknown should be minimal.
SOLUCORP LITIGATION
Judge Susan Reisner, of the Superior Court of New Jersey, who is managing the
case, referred the parties to non-binding mediation with the Office of Dispute
Resolution of the State of New Jersey. The parties engaged in mediation, but
were unsuccessful in resolving the case. Judge Reisner had conducted a case
management conference and entered a case management order. The parties are
conducting discovery pursuant to the order.
FORWARD-LOOKING STATEMENTS
When used herein, the terms "expect, plan, anticipate, believe" or similar
expressions, as they relate to the Company or its management, are intended to
identify forward-looking statements.
The Company has included certain forward-looking statements in this Management's
Discussion and Analysis of Results of Operations, Cash Flow and Financial
Condition. These statements are based on current expectations, estimates and
projections about the industries in which the Company operates, and management's
beliefs and various assumptions made by management, which are difficult to
predict. Among the factors that could affect the outcome of the statements are
general industry and market conditions, and growth rates. Therefore, actual
outcomes and their impact on the Company may differ materially from what is
expressed or forecasted. The Company undertakes no obligation to update publicly
any forward-looking statements, whether as a result of new information, future
events, or otherwise.
13
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS - THREE MONTHS ENDED SEPTEMBER 30,1999
AS COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30,1998
Total revenues for the three months ended September 30, 1999 increased to
$835,426 as compared to $623,345 for the same period in 1998, an increase of
34%. This increase in revenue is due to the Company's move to New Jersey where
there are increased business opportunities, along with the Company's expansion
of both internal and external sales efforts, increased market penetration and
the expansion of the SST processing capabilities.
Cost of sales for the three months ended September 30, 1999 increased to 78% of
revenues from 54% of revenues for the same period in 1998. This increase is
primarily due to increased facility overhead costs associated with the
significantly larger facility in New Jersey and depreciation expenses related to
newly acquired equipment.
General and administrative expenses remained relatively unchanged for the three
months ended September 30, 1999 as compared to the same period in 1998.
Management notes that legal costs associated with the Solucorp litigation were
relatively insignificant during the third quarter of 1999. Management believes
that in subsequent periods there will be increased costs associated with this
litigation.
Selling Expenses increased 100% to $61,556 in the third quarter of 1999 from
$30,600 for 1998. This increase is due primarily to the additional sales effort
undertaken by management in 1999.
The Company incurred a net loss of -$124,938 for the third quarter of 1999, a
13,607% decrease from the net income of $925 for the same period in 1998, due to
the increased costs mentioned above.
14
<PAGE>
KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
SEPTEMBER 30, 1999
PART II - OTHER INFORMATION
Item II Part (c) - Sale of Securities not Registered
(a) The Company sold 1,750,000 shares of unregistered common stock in July of
1999 which were exempt from registration under Section 4(2).
(b) There were no underwriters relating to this sale. The stock was sold to an
accredited individual investor.
(c) The stock was sold for $350,000, all of which was received by the
registrant.
The Company issued 1,178,840 shares of stock for payment of accounts
payable, underwriting costs, equipment and expenses.
Item VI - Exhibits and Reports on Form 8-K
Exhibits No. Description
---------- ------------
27 Financial Data Schedule
Reports on Form 8-K for the nine months ended September 30,1999, there
were no reports filed on Form 8-K.
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.
KBF POLLUTION MANAGEMENT, INC.
Dated: November 11, 1999 LARRY KREISLER
-------------------------------
LARRY KREISLER - PRESIDENT
Dated: November 11, 1999 KATHI KREISLER
--------------------------------
KATHI KREISLER - SECRETARY /
TREASURER
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
unaudited financial statements dated September 30, 1999 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000810162
<NAME> KBF POLLUTION MANAGEMENT, INC. AND SUBSIDIARIES
<MULTIPLIER> 1
<CURRENCY> US Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-START> Sep-30-1999
<PERIOD-END> Sep-30-1999
<EXCHANGE-RATE> 1
<CASH> 200,622
<SECURITIES> 52,230
<RECEIVABLES> 706,925
<ALLOWANCES> (52,688)
<INVENTORY> 17,275
<CURRENT-ASSETS> 1,004,765
<PP&E> 5,470,626
<DEPRECIATION> (1,917,860)
<TOTAL-ASSETS> 5,244,177
<CURRENT-LIABILITIES> 769,984
<BONDS> 0
0
0
<COMMON> 664
<OTHER-SE> 2,936,651
<TOTAL-LIABILITY-AND-EQUITY> 5,244,177
<SALES> 1,940,679
<TOTAL-REVENUES> 1,940,679
<CGS> 1,573,038
<TOTAL-COSTS> 1,573,038
<OTHER-EXPENSES> 1,057,998
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 16,241
<INCOME-PRETAX> (653,361)
<INCOME-TAX> 3,267
<INCOME-CONTINUING> (656,628)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (656,628)
<EPS-BASIC> (.01)
<EPS-DILUTED> (.01)
</TABLE>
