FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
Commission file number 1-12178
InnoVet, Inc.
(Exact name of small business issuer as specified in its charter)
Florida
(State or other jurisdiction of
incorporation or organization)
P.O. Box 145
Winter Park, Florida
(Address of principal executive offices)
59-2699441
(I.R.S. Employer Identification No.)
32790
(Zip Code)
None
(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports to be filed by Section 13 or
15(d) of the Exchange Act during the past 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 No __X___
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: Common Stock, $0.001 Par Value;
18,656,881 shares outstanding as of September 3, 1998.
INDEX
INNOVET, INC.
PART I. FINANCIAL INFORMATION Page
Item 1. Financial Statements (Unaudited)
Balance Sheets
March 31, 1998 and December 31, 1997 4
Statements of Operations
Three months ended March 31, 1998 and 1997 5
Statement of Stockholders' Equity
Three months ended March 31, 1998 6
Statements of Cash Flows
Three months ended March 31, 1998 and 1997 7
Notes to Consolidated Condensed Financial
Statements 8
Item 2. Management's Discussion and Analysis of Financial Condition and 8
Results of Operations 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 9
Item 2. Changes in Securities 9
Item 3. Defaults upon Senior Securities 9
Item 4. Submission of Matters to a Vote of
Securities Holders 9
Item 5. Other Information 9
Item 6. Exhibits and Reports on Form 8-K 9
SIGNATURES 10
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
INNOVET, INC.
BALANCE SHEETS
(Unaudited)
ASSETS March 31, December 31,
1998 1997
Current assets
Cash and cash equivalents $ 20,908 $ 44,500
Total current assets 20,908 44,500
Total assets $ 20,908 $ 44,500
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 18,360 $ 40,670
Loans from stockholder 65,000 65,000
Accrued interest 6,550 4,974
Total current liabilities 89,910 110,644
Stockholders' equity
Common stock, $.001 par value,
100,000,000 shares authorized;
18,656,881 shares issued at
March 31, 1998 and at
December 31, 1997 18,657 18,657
Capital in excess of par
value 18,856,654 18,856,654
Capital representing stock
grants 5,514,990 5,514,990
Accumulated deficit (24,459,303)(24,456,445)
(69,002) (66,144)
Total liabilities and
stockholders' equity $ 20,908 $ 44,500
The accompanying notes are an integral part of these statements.
INNOVET, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
1998 1997
Revenues
Sales $ - $ -
- -
Costs and expenses
Selling, general and administrative expenses 1,282 18,930
Depreciation expense - 379
Interest expense 1,576 245
2,858 19,554
Loss from operations before income taxes (2,858) (19,554)
Provision for income taxes - -
Net loss $ (2,858) $ (19,554)
Net loss per share $ (0.00) $ (0.00)
Weighted average shares 18,656,881 18,656,881
The accompanying notes are an integral part of these statements.
INNOVET, INC.
STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
Capital in Capital Total
Common Stock Excess of Representing Accumulated Stockholders'
Shares Amount Par Value Stock Grants Deficit Equity
Balance, January 1, 1998
18,656,881 $18,657 $18,856,654 $5,514,990 $ (24,456,445) $(66,144)
Net loss - - - - (2,858) (2,858)
Balance, March 31, 1998
18,656,881 18,657 18,856,654 5,514,990 (24,459,303) (69,002)
The accompanying notes are an integral part of these statements.
INNOVET, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31
1998 1997
Cash flows from operating activities:
Net loss $ (2,858) $ (19,554)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation expense - 379
Changes in operating assets and liabilities:
(Increase)decrease in prepaid expenses - 747
Increase(decrease) in accounts payable (22,310) -
Increase(decrease) in accrued expenses 1,576 245
Net cash used for operating activities (23,592) (18,183)
Cash flows from investing activities:
Net cash used for investing activities - -
Cash flows from financing activities:
Net cash provided by financing activities - -
Increase (decrease) in cash and cash equivalents (23,592) (18,183)
Cash and cash equivalents, beginning of period 44,500 77,159
Cash and cash equivalents, end of period $ 20,908 $ 58,976
Supplemental disclosures of cash flow information
Cash paid during the year:
Interest $ - $ -
The accompanying notes are an integral part of these statements.
INNOVET, INC.
NOTES TO FINANCIAL STATEMENTS
March 31, 1998
NOTE A - BASIS OF PREPARATION
The Balance Sheets at March 31, 1998 and December 31, 1997 and the related
Statements of Operations for the three months ended March 31, 1998 and 1997,
Stockholders' Equity for the three months ended March 31, 1998 and Statements of
Cash Flows for the three months ended March 31, 1998 and 1997, have been
prepared in accordance with the instructions for Form 10-QSB and, therefore,
do not include all information and footnotes necessary for a fair
presentation of financial position, results of operations and changes in
financial position in conformity with statements, including the footnotes
thereto in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 1997. In the opinion of management, all adjustments considered
necessary for a fair presentation of the results of operations for the three
months ended March 31, 1998 have been included.
NOTE B - GOING CONCERN
The Company has sustained substantial losses from operations in past years
and has a significant accumulated deficit. The Company has sold off
substantially all of its operating businesses and in 1997 and 1998, the
Company's sole activity was to find a company to merge with or that will
acquire it. The Company believes that its public shell can be made
attractive if it is able to meet its reporting requirements under the
Exchange Act and maintain its OTC Bulletin Board listing with the National
Association of Securities Dealers, Inc.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
(a) Results of Operations.
The Company had no revenues in the quarter ended March 31, 1998 and also
for the same period in 1997.
Selling, general and administrative expenses decreased $17,648 or 93% in
1998 compared to the first quarter of 1997. The main reason for the decrease
was lower professional fees for tax preparation which were incurred in the
first quarter 1997 as compared to none in the quarter ended March 31, 1998.
Depreciation expense decreased $379 or 100% as the remaining assets are
fully depreciated.
Interest expense increased in 1998 by $1,331 due to loan from stockholder
that was issued in 1997. The quarter ended March 31, 1998 includes three
months of interest compared to only fourteen days for the same quarter in 1997.
(b) Liquidity.
At March 31, 1998, the Company had $20,908 in cash and cash equivalents.
This is the balance of the proceeds from the $65,000 loan from stockholder
issued in 1997. The note was due and payable on or before September 30, 1997
with interest at the London InterBank Offered Rate ("LIBOR") plus 4%.
Although the principal and interest on the loan has not been repaid, repayment
has not been demanded. The Company has the option to repay the principal and
interest by issuing shares of its common stock to the stockholder pursuant to
Regulation S under the Securities Act at a price of $.0025 per share.
The Company had no revenues in the quarter ended March 31, 1998 or in the
same period last year. The Company currently has no sources of revenue and
minimal cash. It is possible that the public shell may be used by an active
entity seeking public company status; however, it is uncertain if or when
such an event will occur.
If such event does not occur within a short period of time, the Company may
liquidate.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings. None
Item 2. Changes in Securities. None
Item 3. Defaults Upon Senior Securities. None
Item 4. Submission of Matters to a Vote of Security Holders. None
Item 5. Other Information. None
Item 6. Exhibits and Reports on Form 8-K. None
SIGNATURE
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.
InnoVet, Inc.
(Registrant)
/s/SCOTT P. CIELEWICH
Date: September 5, 1998 Scott P. Cielewich, Executive Vice President
and Chief Financial Officer
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