U. S. 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 quarterly period ended March 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from________to________.
Commission File No. 0-6456
REACT SYSTEMS, INC.
----------------------------------------------
(Name of Small Business Issuer in its Charter)
Nevada 87-0287034
- --------------------------------- ------------------------------------
(State or Other Jurisdiction
of incorporation or organization) (I.R.S. Employer Identification No.)
1787 East Ft. Union Blvd., #106
Salt Lake City, Utah 84121
----------------------------------------
(Address of Principal Executive Offices)
(801) 942-7722
---------------------------
(Issuer's Telephone Number)
- -----------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 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 No X
----- -----
As of August 30, 1996, 524,227 shares of common stock of the issuer were
outstanding.
<PAGE>
REACT SYSTEMS, INC.
INDEX
Page
Number
------
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets - March 31, 1996 and December 31, 1995.... 3
Statements of Operations - For the three
months ended March 31, 1996 and 1995..................... 4
Statements of Cash Flows - For the three
months ended March 31, 1996 and 1995..................... 5
Notes to Condensed Financial Statements.................. 6
Item 2. Management's Discussion and Analysis or Plan
of Operation............................................. 7
SIGNATURES.............................................................8
<PAGE>
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements.
REACT SYSTEMS, INC
BALANCE SHEETS
March 31, 1996 and December 31, 1995
(Unaudited)
<TABLE>
<CAPTION>
3/31/96 12/31/95
------------ ------------
<S> <C> <C>
ASSETS
Total Current Assets $ 0 $ 0
------------ ------------
TOTAL ASSETS $ 0 $ 0
============ ============
LIABILITIES & EQUITY
LIABILITIES
Current Liabilities
Notes Payable $ 94,300 $ 94,300
Loans from stockholders 1,290 0
----------- ------------
Total Current Liabilities 95,590 94,300
----------- ------------
TOTAL LIABILITIES 95,590 94,300
EQUITY
Common Stock 149,206 149,206
Paid-in Capital 344,600 344,600
Accumulated Deficit (589,396) (588,106)
----------- ------------
TOTAL EQUITY (95,590) (94,300)
----------- ------------
TOTAL LIABILITIES & EQUITY $ 0 $ 0
=========== ============
</TABLE>
See accompanying notes to condensed financial statements.
- 3 -
<PAGE>
REACT SYSTEMS, INC.
STATEMENTS OF OPERATIONS
For the Three-Month Periods Ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
3/31/96 3/31/95
------------ ------------
<S> <C> <C>
REVENUE
Income $ 0 $ 0
------------ ------------
NET REVENUE 0 0
OPERATING EXPENSES
Filing Fees 1,290 0
------------ ------------
TOTAL OPERATING EXPENSES 1,290 0
------------ ------------
NET INCOME/(LOSS) $ (1,290) $ 0
============ ============
NET LOSS PER SHARE $ (0.01) $ 0.00
============ ============
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 2,984,118 2,984,118
============ ============
</TABLE>
See accompanying notes to condensed financial statements.
- 4 -
<PAGE>
REACT SYSTEMS, INC.
STATEMENTS OF CASH FLOWS For the Three-Month Periods
Ended March 31, 1996 and 1995
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
3/31/96 3/31/95
------------ ------------
<S> <C> <C>
Cash Flows Used For Operating Activities
Net Loss $ (1,290) $ 0
---------- -------------
Adjustments to reconcile net loss to net
cash used in operating activities:
Net Cash Used For Operating Activities (1,290) 0
----------- -------------
Cash Flows Provided by Financing
Activities
Loan from shareholder 1,290 0
----------- -------------
Net Cash Provided by Financing
Activities 1,290 0
----------- -------------
Net Increase In Cash 0 0
Beginning Cash Balance 0 0
----------- -------------
Ending Cash Balance $ 0 $ 0
=========== =============
</TABLE>
See accompanying notes to condensed financial statements.
- 5 -
<PAGE>
REACT SYSTEMS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 1996
(Unaudited)
1. Interim Financial Presentation
The interim financial statements are prepared pursuant to the requirements
for reporting on Form 10-QSB. The December 31, 1995 balance sheet data was
derived from audited financial statements but does not include all
disclosures required by generally accepted accounting principles. The
interim financial statements and footnotes thereto should be read in
conjunction with the financial statements and footnotes included in the
Company's report on Form 10-KSB for the year ended December 31, 1995. In
the opinion of management, the interim financial statements reflect all
adjustments of a normal recurring nature necessary for a fair statement of
the results for the interim periods presented.
2. Shareholder Loan
During the three months ended March 31, 1996, the Company's principal
shareholder loaned $1,290 to the Company to pay costs associated with
maintenance of the Company. Such loan is non-interest bearing and has no
definite repayment terms.
3. Subsequent Event
On August 30, 1996, the Company effected at one-for-thirty reverse stock
split.
- 6 -
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
Plan of Operation.
The Company has not engaged in any material operations in the period ending
March 31, 1996, or since December 31, 1974. The Company intends to continue to
seek out the acquisition of assets, property or business that may be beneficial
to the Company and its stockholders.
The Company's only foreseeable cash requirements during the next 12 months
will relate to maintaining the Company in good standing in the State of Nevada
and keeping its reports "current" with the Securities and Exchange Commission.
During the current period, such costs were funded by loans from the Company's
principal shareholder totaling $1,290. Such loans are non-interest bearing and
have no definite repayment terms. The Company anticipates that its principal
shareholder will continue to fund such costs for the foreseeable future. There
is no assurance, however, that such shareholder will continue to fund the
Company's cash requirements.
Results of Operations.
The Company has had no operations since December, 1974. During the period
covered by this Report, the Company received no revenue and had expenses of
$1,290 relating to the basic maintenance of the Company.
- 7 -
<PAGE>
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 hereunto duly authorized.
REACT SYSTEMS, INC
Date: September 3, 1996 By: /s/ Thomas J. Howells
----------------------------------
Thomas J. Howells, President
Date: September 3, 1996 By: /s/ Stacie H. Jenson
----------------------------------
Stacie H. Jenson, Treasurer
- 8 -
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 95,590
<BONDS> 0
0
0
<COMMON> 149,206
<OTHER-SE> (244,796)
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,290
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,290)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,290)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,290)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
