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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: March 31, 2000
[ ] 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
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(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 March 31, 2000
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ITEM 1. FINANCIAL STATEMENTS
AGE RESEARCH, INC.
BALANCE SHEET
March 31, 2000 and 1999
(Unaudited)
ASSETS
2000 1999
----------- -----------
Current Assets
Cash $ 908 $ 3,353
Accounts Receivable 1,897 2,670
Inventory 6,349 5,249
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Total Current Assets 9,154 11,272
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Property and Equipment
Furniture and Fixtures 5,560 5,560
Machinery and Equipment 1,794 1,794
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7,354 7,354
Less: Accumulated Depreciation (7,148) (6,790)
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Total Property and Equipment 206 564
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TOTAL ASSETS $ 9,360 $ 11,836
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The accompanying notes are an integral part of these financial statements.
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AGE RESEARCH, INC.
BALANCE SHEET
March 31, 2000 and 1999
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
2000 1999
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Current Liabilities
Accounts Payable $ 1,798 $ 5,000
Sales Taxes Payable 89 28,908
Income Taxes Payable 800 1,000
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Total Current Liabilities 2,687 35,508
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Long-Term Liabilities
Due to Stockholders 0 96,602
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Total Liabilities 2,687 132,110
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Stockholders' Equity
Common stock, $.001 par value, 100,000,000
shares authorized and 63,944,251 shares
issued and outstanding in 1999 and
60,694,251 in 1998 63,944 60,694
Paid-in Capital 600,977 591,227
Paid-in Capital - Debt Conversion 132,602 0
Less: Stocks Subscription Receivable 0 (7,500)
Retained Earnings (Accumulated Deficits) (790,850) (777,695)
----------- -----------
Total Stockholders' Equity (Deficits) 6,673 (120,274)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,360 $ 11,836
=========== ===========
The accompanying notes are an integral part of these financial statements.
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AGE RESEARCH, INC.
STATEMENT OF INCOME AND ACCUMULATED DEFICIT
For the three months ended March 31, 2000 and 1999
(Unaudited)
2000 1999
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SALES $ 3,589 $ 5,297
COST OF SALES 603 1,580
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GROSS PROFIT 2,986 3,717
OPERATING EXPENSES 2,061 6,682
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INCOME (LOSS) FROM OPERATIONS 925 (2,965)
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OTHER INCOME (EXPENSES)
Interest Income 3 0
Other Income 151 0
Interest Expenses 0 (1,720)
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Total Other Income (Expenses) 154 (1,720)
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NET INCOME (LOSS) BEFORE TAXES 1,078 (4,685)
PROVISION FOR INCOME TAXES 800 800
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NET INCOME (LOSS) 279 (5,485)
ACCUMULATED DEFICIT - Beginning
Beginning Balance (791,129) (772,210)
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Ending Balance $ (790,850) $ (777,695)
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LOSS PER SHARE $ (0.0000) $ (0.0001)
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WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 63,944,251 60,694,251
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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 March 31, 2000 and 1999
(Unaudited)
2000 1999
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CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ 279 $ (5,485)
Adjustment to reconcile net income to
net cash provided by operating
activities
Depreciation 90 90
(Increase) Decrease in:
Accounts Receivable 1,364 (167)
Inventory 603 1,580
(Decrease) Increase in:
Accounts payable (2,818) 2,351
Accrued Expenses (425) 1,268
Income Taxes Payable 800 800
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Net Cash Provided (Used) by Operating
Activities (107) 437
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CASH FLOWS FROM INVESTING ACTIVITIES 0 0
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CASH FLOWS FROM FINANCING ACTIVITIES 0 0
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NET INCREASE (DECREASE)IN CASH (107) 437
CASH AT BEGINNING OF PERIOD 1,105 2,916
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CASH AT END OF PERIOD $ 908 $ 3,353
============= ================
SUPPLEMENTARY DISCLOSURES:
Cash paid for:
Interest Paid $ 0 $ 0
============= ================
Income Taxes $ 0 $ 0
============= ================
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 March 31, 2000 and 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Presentation of Interim Information
- -----------------------------------
In the opinion of the management of Age Research, Inc. (the "Company"), the
accompanying unaudited financial statements include all normal adjustments
considered necessary to present fairly the financial positions as of March 31,
2000 and 1999, and the results of operations and cash flows for the three
months then ended. Interim results are not necessarily indicative of results
for a full year.
The financial statements and notes are presented as permitted by Form 10-QSB,
and do not contain certain information included in the Company's audited
financial statements and notes for the fiscal year ended December 31, 1999.
Use of estimates
- ----------------
In preparing financial statements in conformity with GAAP, management is
required to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities
at the date of the financial statements and revenues and expenses during the
reporting period. Actual results could differ from these estimates.
Revenue Recognition
- -------------------
Revenue from sales is recognized when the products are delivered and accepted
by the customers.
Accounts Receivable
- -------------------
The Company has not established an allowance for doubtful accounts and does
not use reserve method for recognizing bad debts. Bad debts are treated as
direct write-offs in the period management determines that collection is not
probable. There was no bad debt expense for the three months ended March 31,
2000 and 1999.
Inventories
- -----------
Inventories consist of products already packaged and ready for shipments to
customers, and are stated at cost, using the first-in, first-out method.
Property and Equipment
- ----------------------
Property and Equipment are stated at cost. Depreciation is computed over their
estimated useful lives using straight-line method for financial reporting, and
accelerated methods for tax reporting, therefore, temporary differences exist.
Expenditures for major renewals and betterment that extend the useful lives of
the assets are capitalized. Expenditures for maintenance and repairs are
charged to expense as incurred.
Depreciation expense was $90 each for the three months ended March 31, 2000
and 1999, respectively.
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AGE RESEARCH, INC.
NOTES OF FINANCIAL STATEMENTS
For The Nine Months Ended March 31, 2000 and 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Statement of Cash Flows
- -----------------------
The Company prepares its statement of cash flows using the indirect method as
defined under Financial Accounting Standards Board Statement No. 95. For
purposes of the statements of cash flows, the Company considers all highly
liquid investments with a maturity of three months or less to be cash
equivalents.
Income Taxes
- ------------
The Company accounts income taxes in accordance with Financial Accounting
standards Board Statement No. 109. "Accounting For Income Taxes" (SFAS No.
109). SFAS No. 109 requires a company to recognize deferred tax liabilities
and assets for the expected future income tax consequences of events that have
been recognized in the Company's financial statements. Under this method,
deferred tax assets and liabilities are determined based on temporary
differences between the financial carrying amounts and the tax bases of assets
and liabilities using the enacted tax rates in effect in the years in which
the temporary differences are expected to reverse.
NOTE 2 - SUBSIDIARY
The Company has a wholly-owned subsidiary, Evergreen Skin Care Centers of
America, Inc. which is inactive with no assets and liabilities, and has no
activity either in 2000 or 1999.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
Results of Operations
- ---------------------
Since December 1987, the Company 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 Company 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 Company
reduced its office expenses to a minimum and eliminated its advertising and
salary expenses.
Three Month Period Ended March 31, 2000 compared to 1999
- --------------------------------------------------------
Revenues and Costs of Sales. For the three month period ended March 31, 2000,
the Registrant had revenues of $3,589 with cost of sales of $603, or
approximately 16.8% of revenues, for a gross profit of $2,986, compared to the
prior year's revenues of $5,297 with cost of sales of $1,580, or
approximately 29.8% of revenues, for a gross profit of $3,717.
General and Administrative Expense. Total operating expenses for three month
period ended March 31, 2000 were $2,061 compared to $6,682 for 1999. The
reduction in general and administrative expenses during the recent period is
attributed to a reduction in legal and professional fees expensed in the prior
year period associated the preparing and filing its general form of
Registration Statement on Form 10SB with the Securities and Exchange
Commission. The net gain from operations for the three month period ended
March 31, 2000 was $925 compared to net loss of $2,965 for the same period in
1999.
Liquidity and Capital Resources
- -------------------------------
Historically, the Company has financed its operations through a combination of
cash flow derived from operations and debt and equity financing. At March 31,
2000, the Company had a working capital of $6,467 based on current assets of
$9,154 and current liabilities of $2,687.
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 Company does not have any significant
working capital to expand its marketing efforts. The Company 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 Company 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 Company would be the private sale of its
securities. There can be no assurance that the Company will be able to obtain
such additional funding as needed, or that such funding, if available, can be
obtained on terms acceptable to the Company.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
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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.
Dated: May 10, 2000 By:/S/Richard F. Holt, President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 908
<SECURITIES> 0
<RECEIVABLES> 1,897
<ALLOWANCES> 0
<INVENTORY> 6,349
<CURRENT-ASSETS> 9,154
<PP&E> 7,354
<DEPRECIATION> (7,148)
<TOTAL-ASSETS> 9,360
<CURRENT-LIABILITIES> 2,687
<BONDS> 0
0
0
<COMMON> 797,523
<OTHER-SE> (790,850)
<TOTAL-LIABILITY-AND-EQUITY> 9,360
<SALES> 3,589
<TOTAL-REVENUES> 3,743
<CGS> 603
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,078
<INCOME-TAX> 800
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 279
<EPS-BASIC> 0.00
<EPS-DILUTED> 0.00
</TABLE>
