SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended Commission File Number
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September 30, 1999 33-19196
STRATEGIC VENTURES, INC.
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(Exact name of registrant as specified in its charter)
Florida 59-2919648
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(State of incorporation) (I.R.S. Employer
Identification No.)
3816 West Linebaugh Avenue, Ste 408, Tampa, Florida 33624
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (813) 960-0557
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 the filing
requirements for at least the past 90 days.
Yes ___ No X
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
4,000,000 common shares as of September 30, 1999
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<TABLE>
<CAPTION>
Part I: FINANCIAL INFORMATION
STRATEGIC VENTURES, INC.
(A Development Stage Company)
BALANCE SHEETS
UNAUDITED BALANCE SHEET FOR THE PERIOD ENDED SEPTEMPBER 30, 1999
ASSETS
<S> <C> <C>
September 30, December 31, 1998
1999
TOTAL ASSETS $ 0 $ 0
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 0 $ 0
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Total Current Liabilities $ 0 $ 0
Total Liabilities $ 0 $ 0
Stockholders' Equity
Common stock $.0001 par value; 100,000,000 shares
authorized; 400 400
4,000,000 issued at September 30,1999
and 4,000,000 issued at December 31, 1998 $ 316,625 $ 316,625
Paid in capital - -
Retained Earnings (Deficit) $ (317,025) $ (317,025)
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Total Stockholders' Equity (0) (0)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 0 $ 0
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The accompanying notes are an integral part of the financial statements.
F-1
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STRATEGIC VENTURES, INC.
(A Development Stage Company)
UNAUDITED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
1999 1998
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REVENUES
Operating Revenues 0 0
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TOTAL REVENUES 0 0
========= =========
COST OF GOODS SOLD 0 0
Cost of Sales 0 0
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TOTAL COST OF GOODS SOLD 0 0
========= =========
OPERATING COSTS 0 0
TOTAL OPERATING COSTS 0 0
========= =========
NET INCOME (LOSS) 0 0
Net Loss per Share (0.00) 0
Weighted Average Common Shares 4,000,000 4,000,000
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The accompanying notes are an integral part of the financial statements.
F-2
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STRATEGIC VENTURES, INC.
(A Development Stage Company)
UNAUDITED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30
1999 1998
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CASH FOWS FROM OPERATING ACTIVITIES
Net Loss $0 $0
Adjustments to reconcile net loss to
Cash used in operating activities:
Depreciation
(Increase) Decrease in current assets
Increase (Decrease) in current liabilities
(Increase) Decrease in other assets
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES $0 $0
CASH FLOWS FROM INVESTING ACTIVITIES 0 0
(Purchase) Sale of property and equipment 0 0
Increase (Decrease) in notes payable 0 0
Capital received 0 0
NET CASH FLOWS FROM INVESTING ACTIVITIES $0 $0
-- --
NET INCREASE (DECREASE) IN CASH $0 $0
CASH AT BEGINNING OF PERIOD $0 $0
CASH AT END OF PERIOD $0 $0
== ==
The accompanying notes are an integral part of the financial statements.
F-3
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STRATEGIC VENTURES, INC.
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
These financials have been prepared by management and are unaudited.
NOTE I ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION - Strategic Ventures, Inc. ("Company") was organized as a Florida
corporation on March 19, 1987. A statement of income (loss) is presented.
However, the Company has had no operating revenues and expenses, except expenses
for acquisition investigation administration.
Presently, the Company is in the development stage, and activities include the
arranging of an offering of common stock and warrants to the public, which was
accomplished in 1989. The Company intends to acquire interests in various
business opportunities, which in the opinion of management will provide a profit
to the Company. Presently, the Company has had no operations, planned products,
or services, and additional external financing may be required to acquire the
business interests.
DEFERRED SECURITIES OFFERING EXPENSES - The Company incurred $5,709 of costs
directly related to its public offering. Such amount was offset in 1989 against
the proceeds from the public offering.
CASH FLOWS - For the purposes of cash flows, the Company considers all highly
liquid debt instruments purchased with a maturity of three months or less to be
cash equivalents.
EARNINGS (LOSS) PER SHARE - Earnings (loss) per share are based on the weighted
average number of common shares outstanding during the period starting from the
date of inception. All insider stock issued is deemed to have been issued on
that date for all periods presented.
INCOME TAXES - The provision (benefit) for income taxes, if any, is based on the
pre-tax earnings (loss) reported in the financial statements, adjusted for
transactions that may never enter into the computation of income taxes payable.
A deferred tax liability or asset is recognized for the estimated future tax
effect attributable to temporary differences in the recognition of income and
expenses for financial statement and income tax purposes.
USE OF ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
NOTE 2 PUBLIC OFFERING
The Company offered 250 units to the public at an offering price of $1,000 per
unit. Each unit consisted of 10,000 shares of the Company's common stock, and
10,000 warrants, each entitling the warrant holder to purchase one share of the
Company's common stock at $0.50 each, and a U.S. Treasury- backed Zero Coupon
Obligations. Each U.S. Treasury-backed Zero Coupon Obligation will be purchased
from the
<PAGE>
offering proceeds at an estimated cost of $200 by the underwriter of the
proposed public offering, in the name of the unit holder. The offering was on a
best efforts basis and resulted in the issuance of 1,090,000 common shares.
NOTE 3 INCOME TAXES
The Company has incurred losses to date and as a result no provision for income
taxes has been made.
On December 31, 1998 the Company had $317,000 of accumulated loss carry
forwards. In addition, the Company had deferred tax assets of approximately
$117,000 as a result of the loss carryforwards, against which a valuation
allowance of $117,000 has been recognized due to the uncertainty with respect to
recoverability of the deferred tax asset. Due to the absence of operations,
certain portions of the accumulated net operating loss may not be immediately
deductible.
The net operating losses expire as shown below.
2003 $ 2,020 2008 $19,454
2004 $ 13,582 2009 $ 1,910
2005 $ 20,891 2010 $ 1,360
2006 $222,516 2011 $ 1,871
2007 $ 27,194 2012 $ 2,742
2013 $ 3,485
NOTE 4 RELATED PARTY TRANSACTIONS:
The Company uses certain office space, telephones, and related facilities of its
president under an informal arrangement.
NOTE 5 PREFERRED AND COMMON STOCK
PREFERRED STOCK
The Company has authorized 25,000,000 shares of preferred stock at $0.01 par
value. The stock is non-designated and none of the shares has been issued.
COMMONSTOCK
The Company has authorized 100,000,000 shares of common stock at $0.0001 par
value. There are 4,000,000 shares of common stock issued and outstanding as of
September 30, 1999.
<PAGE>
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS FOR THREE MONTH PERIOD IN 1999 COMPARED TO THE SAME PERIOD
IN 1998
The Company had no operations in the period in 1999 or in 1998.
The Company had no expenses for the three-month period in 1999 or 1998. The
Company had no profit or loss for the period in 1999 or 1998. The Company may
have losses until income can be achieved. While the Company is seeking capital
sources for investment: there is no assurance that sources can be found.
RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 COMPARED TO
THE SAME PERIOD IN 1998
For the nine-month period in 1999 or 1998, the Company incurred no expenses or
income. The profit or loss for the period in 1999 and 1998 was none.
LIQUIDITY AND CAPITAL RESOURCES
The Company had nominal cash capital at the end of the period. The Company will
be forced to either borrow or make private placements of stock in order to fund
operations. No assurance exists as to the ability to achieve loans or make
private placements of stock.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULT 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
Reports on Form 8-K were made for the period for which this report is
filed as follows:
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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.
Date: January 15, 2000
STRATEGIC VENTURES, INC.
/s/Thomas McCrimmion
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Thomas McCrimmon, President
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