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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-QSB
[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the Quarter Ended: September 30, 1999
[ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the Transition Period from _____________ to ____________
Commission File Number: 0-26285
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AGE RESEARCH, INC.
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(Name of Small Business Issuer in its charter)
Delaware 87-0419387
- ------------------------------- -------------------------
(State or other jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
31103 Rancho Viejo Road, #2102, San Juan Capistrano, CA 92675
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(Address of principal executive offices and Zip Code)
(800) 597-1970
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(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.
(1) Yes [X] No [ ] (2) Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, Par Value $0.001 63,944,251
- ------------------------------ ----------------------------
Title of Class Number of Shares Outstanding
as of September 30, 1999
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ITEM 1. FINANCIAL STATEMENTS
AGE RESEARCH, INC.
BALANCE SHEET
September 30, 1999 and September 30, 1998
(Unaudited)
ASSETS
1999 1998
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Current Assets
Cash in bank $ 1,239 $ 3,263
Accounts Receivable 2,146 2,065
Inventory 6,460 8,007
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Total Current Assets 9,845 13,335
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Property and Equipment
Furniture & Fixtures 5,560 5,560
Machinery & Equipment 1,794 1,794
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7,354 7,354
Accumulated Depreciation (6,969) (6,611)
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Net Property and Equipment 385 743
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TOTAL ASSETS $ 10,230 $ 14,078
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The accompanying footnotes are an integral part of these financial statements.
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AGE RESEARCH, INC.
BALANCE SHEET
September 30, 1999 and September 30, 1998
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
1999 1998
----------- ----------
Current Liabilities
Accounts Payable $ 1,850 $ 6,012
Sales Taxes Payable 377 408
Interest Payable 32,220 25,341
Income Taxes Payable 800 1,600
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Total Current Liabilities 35,247 33,361
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Other Liabilities
Notes payable - Stockholders 96,602 97,602
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Total Liabilities 131,849 130,963
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Stockholders' Equity
Common stock, $.001 par value, 150,000,000
shares authorized and 63,944,251 shares
issued and outstanding in 1999 and
60,694,251 in 1998 63,944 60,644
Paid-in Capital 600,977 600,977
Stocks Subscription Receivable - (10,000)
Accumulated Deficits (786,540) (771,806)
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Total Stockholders' Equity (121,619) (116,885)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,203 $ 14,078
========== ==========
The accompanying footnotes are an integral part of these financial statements.
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AGE RESEARCH, INC.
STATEMENT OF INCOME AND ACCUMULATED DEFICIT
For the six months ended September 30, 1999 and September 30, 1998
(Unaudited)
1999 1998
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SALES $ 14,880 $ 14,062
COST OF SALES 4,342 2,125
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GROSS PROFIT 10,538 11,937
OPERATING EXPENSES 17,596 14,399
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INCOME (LOSS) FROM OPERATIONS (7,058) (2,462)
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OTHER INCOME (EXPENSES)
Other Income - 1,800
Interest Expenses (5,160) (5,322)
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Total Other Income (Expenses) (5,160) (3,522)
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INCOME (LOSS) BEFORE TAX PROVISION (12,218) (5,984)
PROVISION FOR TAX 800 800
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NET INCOME (LOSS) (13,018) (6,784)
ACCUMULATED DEFICIT - Beginning
Beginning Balance (772,210) (765,022)
Prior year adjustments (1,312) -
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ACCUMULATED DEFICIT - Ending $ (786,540) $ (771,806)
============= ================
LOSS PER SHARE $ (0.00) $ (0.00)
============= ================
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 63,944,251 60,694,251
============= ================
The accompanying notes are an integral part of these financial statements.
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AGE RESEARCH, INC.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1999 and September 30, 1998
(Unaudited)
1999 1998
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CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ (13,018) $ (6,784)
Adjustment to reconcile net income (loss)
to net cash provided by operations
Depreciation 269 279
Prior year adjustment (1,312) -
(Increase) decrease in accounts receivable 357 847
(Increase) decrease in inventory 369 (737)
(Decrease) increase in accounts payable (799) 4,105
(Decrease) increase in sales taxes payable (203) 227
(Decrease) increase in interest payable 5,160 5,322
(Decrease) increase in income taxes payable - -
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Net Cash Provided (Used) by Operating
Activities (9,177) 3,249
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CASH FLOWS FROM INVESTING ACTIVITIES
Net Cash Provided (Used) by Investing
Activities - -
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of stock 7,500 3,000
Payment of notes payable - (4,000)
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Net Cash Provided (Used) by Financing
Activities 7,500 (2,000)
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NET INCREASE IN CASH (1,677) 1,249
CASH - Beginning of Period 2,916 2,014
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CASH - End of Period $ 1,239 $ 3,263
============= ================
SUPPLEMENTARY DISCLOSURES:
Cash paid for:
Interest Paid $ 0 $ 0
============= ================
Income Taxes $ 1,600 $ 800
============= ================
The accompanying notes are an integral part of these financial statements.
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AGE RESEARCH, INC.
NOTES OF FINANCIAL STATEMENTS
For The Nine Months Ended September 30, 1999 and 1998
NOTE 1 - GENERAL
In the opinion of the Company's management, the accompanying unaudited
financial statements contain all normal recurring adjustments necessary to
present fairly the Company's financial position for the interim period.
Results of operations for the nine months ended September 30, 1999 and 1998,
are not necessarily indicative of results to be expected for the full fiscal
year ending December 31, 1999.
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for annual financial
statements. Although the Company believes that the disclosures in these
unaudited financial statements are adequate to make the information present
for the interim periods not misleading, certain information and footnote
information normally included in annual financial statements prepared in
accordance with generally accepted accounting principles have been condensed
or omitted pursuant to the rules and regulations of the Securities and
Exchange Commission.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
Results of Operations
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General
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Since December 1987, the Registrant has marketed its RejuvenAge products
to physicians practicing skin therapy medical specialities. The RejuvenAge
products are non-prescription skin care products that do not contain Retin-A
or any other precription drug. In addition to the RejuvenAge products, the
Registrant sells a proprietary moisturizing shaving cream for sensitive or
irritated beard conditions called Bladium.
The Registrant owns the formulations for both the RejuvenAge and Bladium
products. The products are manufactured by independent contractors. In order
to increase its profitability and reduce expenses, in fiscal 1998 the
Registrant reduced its office expenses to a minimum and eliminated its
advertising and salary expenses.
Nine Month Period Ended September 30, 1999 compared to 1998
- -----------------------------------------------------------
Revenues and Costs of Sales. For the nine month period ended September
30, 1999, the Registrant had revenues of $14,880 with cost of sales of $4,342,
or approximately 29% of revenues, for a gross profit of $10,538, compared to
the prior year's revenues of $14,062 with cost of sales of $2,125, or
approximately 15% of revenues, for a gross profit of $11,937.
General and Administrative Expense. Total operating expenses for nine
month period ended September 30, 1999 were $17,596 compared to $14,399 for
1998. The Company has incurred additional legal and professional fees during
the period associated the preparing and filing its general form of
Registration Statement on Form 10SB with the Securities and Exchange
Commission during the reporting period in 1999 and responding to the
Commissions comments related to such filing. The loss from operations for the
nine month period ended September 30, 1999 was $(7,058) compared to $(2,462)
for the same period in 1998. Net loss before taxes was $(12,218) for the nine
month period ended September 30, 1999, after taking into account interest
expense of $5,160. Net loss before taxes was $(3,522) for the same period in
1998, after taking into account other income of $1,800 and interest expenses
of $5,322. Net loss after taxes was $(13,018) and $(6,784), for the
respective periods in 1999 and 1998.
Liquidity and Capital Resources
- -------------------------------
Historically, the Registrant has financed its operations through a
combination of cash flow derived from operations and debt and equity
financing. At September 30, 1999, the Registrant had a working capital of
$(25,402) based on current assets of $9,845 and current liabilities of
$35,247.
Based on its current marketing program and sales, it is clear that the
Company will have to increase its sales volume significantly in order to
continue operations. At this time, however, the Registrant does not have any
working capital to expand its marketing efforts.
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The Registrant proposes to finance its needs for additional working
capital through some combination of debt and equity financing. Given its
current financial condition, it is unlikely that the Registrant could make a
public sale of securities or be able to borrow any significant sum from either
a commercial or private lender. The most likely method available to the
Registrant would be the private sale of its securities. There can be no
assurance that the Registrant will be able to obtain such additional funding
as needed, or that such funding, if available, can be obtained on terms
acceptable to the Registrant.
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
(a) Exhibits.
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Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K.
--------------------
None.
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.
Age Research, Inc.
[Registrant]
Dated: November 5, 1999 By:/S/Richard F. Holt, President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 1,239
<SECURITIES> 0
<RECEIVABLES> 2,146
<ALLOWANCES> 0
<INVENTORY> 6,460
<CURRENT-ASSETS> 9,845
<PP&E> 7,354
<DEPRECIATION> (6,969)
<TOTAL-ASSETS> 10,230
<CURRENT-LIABILITIES> 35,247
<BONDS> 0
0
0
<COMMON> 664,921
<OTHER-SE> (786,540)
<TOTAL-LIABILITY-AND-EQUITY> 10,203
<SALES> 14,880
<TOTAL-REVENUES> 14,880
<CGS> 4,342
<TOTAL-COSTS> 17,596
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (5,160)
<INCOME-PRETAX> (12,218)
<INCOME-TAX> 800
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (13,018)
<EPS-BASIC> (0.00)
<EPS-DILUTED> (0.00)
</TABLE>
