U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-KSB
[X[ ANNUAL REPORT PURSUANT TO SECTION 13
OF THE SECURITIES EXCHANGE ACT
For the Fiscal Year Ended December 31, 1994
Commission file No. 33-22175
SAFETEK INTERNATIONAL, INC.
(Name of Small Business Issuer as specified in its Charter)
<TABLE>
<S> <C>
Delaware 1075 American Pacific Drive, Suite A, Henderson, NV 75-2226896
(State or Other Jurisdiction (Address of Principal Executive Office, (IRS Employer
of incorporation ) including Zip Code) Identification No.)
</TABLE>
(702) 558-8202
(Registrant's telephone number, including area code)
Securities Registered under Section 12(b) of the Exchange Act:
Title of each Class Name of Each Exchange on which Registered
------------------- -----------------------------------------
None None
Securities registered Under Section 12(g) of the exchange Act: Common Stock,
$0.00001 Par Value
Check whether the issuer (1) has filed all reports required 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
--- ---
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of management's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this form 10-K. [ X ]
State issuer's revenues for its most recent fiscal year: $255,941
The aggregate market value of voting stock held by non-affiliates computed by
reference to the average of the bid and asked prices for such stock as of
December 31, 1994 $1,976,000
As of April 3, 2000 the issuer had 36,145,694 shares of common stock issued and
outstanding.
<PAGE>
PART I
Item 1. Description of Business.
General
The Company was incorporated in April 1988 under the name of Theoretics, Inc. In
January 1989 the Company changed its name to Safetek International, Inc. The
Company has two subsidiaries, Safety Technologies, Inc., and SenTex, Inc., both
Florida corporations.
The Company and its subsidiaries are engaged primarily in the development and
marketing of safety products for the health care, medical, industrial,
commercial, hotel, home building, boating and recreational markets.
Item 2. Description of Property.
The Company has no properties.
Item 3. Legal Proceedings.
The Company is not a party to any material pending litigation nor is it
aware of any threatened legal proceeding.
Item 4. Submission of Matters to a Vote of Security Holders.
No matters were submitted to securities holders during the year ended
December 31, 1994.
PART II
Item 5. Market for Common Equity and Related Stockholder Matters.
Market Information
The Company's common stock is traded on the over-the-counter market and
quoted on the NASD Electronic Bulletin Board under the symbol "SFKI". As of
December 31, 1994, there were approximately 900 holders of record of the
Company's common stock, holding a total of 25,193,545 shares.
Dividend Policy
The Company has never paid any dividends on its common stock and does
not have any current plan to pay any dividends in the foreseeable future.
Item 6. Management's Discussion and Analysis of Financial Condition and Plan of
Operation.
2
<PAGE>
Discussion of Financial Condition
The Company currently has only minimal revenues and assets. The liquidity of the
Company has been adversely affected by significant losses from operations. The
Company reported a net loss of $453,374 for the year ended December 31, 1994 and
cumulative losses for the past three years of $1,866,053. In addition, as of
December 31, 1994, the current liabilities exceed current assets by $1,642,716.
In addition, the Company is in default with respect to certain liabilities.
Management's plans are to continue to raise cash through the sale of common and
preferred stock. In addition, management anticipates that sales will increase as
customers become aware of the need to be in compliance with the American
Disability Act, which requires certain buildings to utilize the type of product
the Company has available. There can be no assurance that the Company will be
successful in accomplishing its objectives.
Item 7. Financial Statements.
Page
Report of Independent Certified Public Accountants 1
Balance Sheets as of December 31, 1994 and 1993 2
Statements of Operations 4
For the years ended December 31, 1994, 1993 and 1992
Statements of Stockholders' Deficit
For the years ended December 31, 1994, 1993 and 1992 5
Statements of Cash Flows 6
For the years ended December 31, 1994, 1993 and 1992
Notes to Financial Statement 7
3
<PAGE>
Item 8. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosures.
None
PART III
Item 9. Directors. Executive Officers, Promoters and Control Persons; Compliance
With Section 16(a) of the Exchange Act.
The following table sets forth the officers and directors of the Company.
Name Position Age
Jack Fawcett President, Treasurer and Director 59
Paul Fawcett. Secretary and Director 32
Set forth below is a description of the backgrounds of each of the officers and
directors of the Company.
Jack Fawcett has served as President, Treasurer and Chief Executive Officer of
the Company since August 1988. He has been actively involved in the health care
market for the past thirty-five years. During this period, he has held senior
management positions with some of the nation's largest health care companies,
including Johnson and Johnson, American Hospital Supply and Allied Chemical
Corp. Mr. Fawcett is the father of Paul Fawcett.
Paul Fawcett has served as Director and Secretary since 1989. Previously he was
employed by Digital Corporation as a Financial Marketing Analyst. He is the son
of Jack Fawcett.
Item 10. Executive Compensation.
Jack Fawcett has an employment contract with the Company which ends
July 31, 2000, under which he is to receive approximately $150,000 per year. As
of December 31, 1994, accrued wages payable to Mr. Fawcett amounted to $384,765.
4
<PAGE>
Item 11. Security Ownership of Certain Beneficial Owners and Management.
The following table set forth the names and addresses of each of the
persons known by the Company to own beneficially 10% or more of the common stock
of the Company, as well as the common stock ownership of each of the officers
and directors of the Company as of December 31, 1994.
Name and Address Number of Shares Percentage of Ownership
Jack Fawcett 16,500,000 65.5%
1075 American Pacific Drive
Suite A
Henderson, NV 89014
Paul Fawcett 1,604,508 4.6%
1075 American Pacific Drive
Suite A
Henderson, NV 89014
All officers and directors as
a group (2 persons) 18,104,508 70.1%
Item 12. Certain Relationships and Related Transactions.
None
Item 13. Exhibits and Reports on Form 8-K.
Exhibits
None
Reports on Form 8-K
No Current Report on Form 8-K was filed during the year ended December 31, 1994.
5
<PAGE>
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated: April 4, 2000
SAFETEK INTERNATIONAL, INC.
By: /s/ Jack Fawcett
----------------------------------
Jack Fawcett
President, Treasurer and Director
(Principal Executive Officer)
In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
/s/ Jack Fawcett April 4, 2000
- ----------------
Jack Fawcett, President, Treasurer & Director
(Principal Executive & Financial Officer)
/s/ Paul Fawcett April 4, 2000
- ----------------
Paul Fawcett
Secretary and Director
<PAGE>
SAFETEK INTERNATIONAL, INC.
AND SUBSIDIARIES
Consolidated Financial Statements
December 31, 1993 and 1992
<PAGE>
Safetek International, Inc.
And Subsidiaries
Consolidated Financial Statements
December 31, 1993 and 1992
(With Independent Auditor's Report Thereon)
<PAGE>
SAFETEK INTERNATIONAL, INC.
AND SUBSIDIARIES
Table of Contents
Independent Auditors' Report............................................1
Financial Statements:
Consolidated Balance Sheets............................................2
Consolidated Statements of Operations..................................4
Consolidated Statements of Stockholders' Deficit.......................5
Consolidated Statements of Cash Flows..................................6
Notes to Financial Statements...........................................7
<PAGE>
Independent Auditors' Report
The Board of Directors
Safetek International, Inc. and Subsidiaries
We have audited the accompanying consolidated balance sheets of Safetek
International, Inc. and Subsidiaries as of December 31, 1993 and the related
consolidated statements of operations, stockholders' (deficit), and cash flows
for the year then ended. These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit. The
accompanying consolidated financial statements of Safetek International, Inc.
and Subsidiaries as of December 31, 1992 and 1991, and for the years then ended
were audited by other auditors whose report thereon dated June 3, 1999, except
for one footnote dated September 30, 1993, expressed a disclaimer of opinion on
those statements.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statements presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above, present
fairly, in all material respects, the financial position of Safetek
International, Inc. and Subsidiaries as of December 31, 1993 and the results of
their operations and their cash flows for the year then ended in conformity with
generally accepted accounting principles.
/s/ Parks, Tschopp, Whitcomb & or, P.A.
----------------------------------------
Parks, Tschopp, Whitcomb & or, P.A.
March 28, 2000
Maitland, FL
<PAGE>
<TABLE>
<CAPTION>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 1993 and 1992
Assets
1993 1992
------------------ -----------------
<S> <C> <C>
Current assets:
Cash $ 693 4,471
Accounts receivable - 41,257
Inventory
Raw materials - 52,449
Finished goods 2,106 20,800
Other current assets - 8,651
------------------ -----------------
Total current assets 2,799 127,628
------------------ -----------------
Property and equipment (notes 2):
Property and equipment, at cost 153,346 150,085
Less: accumulated depreciation 90,401 61,578
------------------ -----------------
Net property and equipment 62,945 88,507
------------------ -----------------
Other assets, net - 29,609
------------------ -----------------
$ 65,744 245,744
================== =================
</TABLE>
(Continued)
See accompanying notes to consolidated financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 1993 and 1992
Liabilities and Stockholder's Equity
1993 1992
------------------ -----------------
<S> <C> <C>
Current liabilities:
Accounts payable $ 83,120 124,661
Accrued expenses (note 4) 142,235 330,005
Due to stockholders (note 5) 523,304 400,731
Notes payable current portion (note 4) 675,792 345,561
------------------ -----------------
Total current liablities 1,424,451 1,200,958
------------------ -----------------
Notes payable, long-term portion - 15,000
------------------ -----------------
Total liabilities 1,424,451 1,215,958
------------------ -----------------
Redeemable convertible preferred shares (1,057,732 and 871,732
shares, par value $.00001, redeemable prior to February 21, 2002
at $1 per share, 10,000,000 shares authorized) (note 8) 562,300 562,300
Common stock subject to recission - 944,801
Stockholders' deficit:
Common stock, $.00001 par value authorized 50,000,000 shares,
issued and oustanding10,911,470 and 3,360,742 shares
at December 31, 1993 and 1992, respectively (note 8) 109 34
Additional paid-in capital 1,373,050 329,453
Accumulated deficit (3,269,543) (2,782,179)
Treasury stock, 11,110 shares at cost (24,623) (24,623)
------------------ -----------------
Total stockholders' deficit (1,921,007) (2,477,315)
------------------ -----------------
Commitments and contingencies - -
------------------ -----------------
$ 65,744 245,744
================== =================
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
SAFETEK INTERNATIONAL, INC.. AND SUBSIDIARIES
Consolidated Statements of Operations
Years Ended December 31, 1993, 1992 and 1991
1993 1992 1991
------------------ ------------------- -------------------
<S> <C> <C> <C>
Net sales $ 220,745 349,271 266,275
Cost of sales 193,313 245,768 206,018
------------------ ------------------- -------------------
Gross profit 27,432 103,503 60,257
------------------ ------------------- -------------------
Expenses
Depreciation 29,270 28,122 17,483
General and administrative 705,813 679,015 791,655
------------------ ------------------- -------------------
Total expenses 735,083 707,137 809,138
------------------ ------------------- -------------------
Net operating loss (707,651) (603,634) (748,881)
Other (income) expense
Other (income) expense (11,340) 35,859 -
Interest expense (notes 4 and 5) 68,009 285,822 92,202
Interest income (276,956) - -
------------------ ------------------- -------------------
Net loss $ (1,041,276) (925,315) (841,083)
================== =================== ===================
Loss per share of common stock (note 7) $ (0.086) (0.217) (0.025)
================== =================== ===================
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Statements of Stockholders' (Deficit)
Years Ended December 31, 1993, 1992 and 1991
Treasury Stock Common Stock
------------------------------------- -----------------------------------
Number of Number of
Shares Total cost Shares Par Value
---------------- ------------------- ----------------- ----------------
<S> <C> <C> <C> <C>
Balances at December 31, 1990 - $ - 3,360,742 34
Net loss for the year ended
December 31, 1991 - - - -
---------------- ------------------- ----------------- ----------------
Balance at December 31, 1991 - - 3,360,742 34
Net loss for the year ended
December 31, 1992 - - - -
Additional contribution for shares
previously issued - - - -
Treasury stock purchase, previously
stock subject to recission 11,100 (24,623) - -
---------------- ------------------- ----------------- ----------------
Balance at December 31, 1992 11,100 (24,623) 3,360,742 34
Net loss for the year ended
December 31, 1993 - - -
Reversal of common stock
subject to recission - - 2,623,718 26
Shares issued for cash - - 367,010 3
Shares issued to employees in
exchange for services (note 8) - - 4,560,000 46
---------------- ------------------- ----------------- ----------------
Balances at December 31, 1993 11,100 $ (24,623) 10,911,470 109
================ =================== ================= ================
Additional
Paid-in Accumulated Stockholders'
Capital Deficit Deficit
---------------- ----------------- ------------------
Balances at December 31, 1990 310,565 (1,015,781) $ (705,182)
Net loss for the year ended
December 31, 1991 - (841,083) (841,083)
---------------- ----------------- ------------------
Balance at December 31, 1991 310,565 (1,856,864) (1,546,265)
Net loss for the year ended
December 31, 1992 - (925,315) (925,315)
Additional contribution for shares
previously issued 16,138 - 16,138
Treasury stock purchase, previousl
stock subject to recission 2,750 - (21,873)
---------------- ----------------- ------------------
Balance at December 31, 1992 329,453 (2,782,179) (2,477,315)
Net loss for the year ended
December 31, 1993 - (487,364) (487,364)
Reversal of common stock
subject to recission 944,775 - 944,801
Shares issued for cash 28,868 - 28,871
Shares issued to employees in
exchange for services (note 8) 69,954 - 70,000
---------------- ----------------- ------------------
Balances at December 31, 1993 1,373,050 (3,269,543) $ (1,921,007)
================ ================= ==================
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Years Ended December 31, 1993, 1992 and 1991
Year Ended Year Ended Year Ended
December December December
31, 1993 31, 1992 31, 1991
----------------- ----------------- -----------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (487,364) (925,315) (841,083)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation and amortization 29,270 28,136 22,017
Issuance of common stock for services 70,000 162,610 32,831
Issuance of preferred stock for services - - -
Noncash capital contributions - 16,138 -
Cash provided by (used for) changes in:
Accounts receivable 41,257 (33,035) 29,235
Inventory 71,143 (3,723) (16,480)
Accounts payable (41,541) (76,010) 134,841
Accrued expenses (187,770) 124,520 102,375
Advances to/from stockholders 122,573 93,553 148,311
Other assets 34,552 (8,651) (233)
----------------- ----------------- -----------------
Net cash used by operating activities (347,880) (621,777) (388,186)
----------------- ----------------- -----------------
Cash flows from investing activities:
Equipment acquistions - (48,825) (22,319)
----------------- ----------------- -----------------
Cash flows for financing activities:
Patent costs - (245) -
Treasury stock purchase - (6,000) -
Proceeds from issuance of common stock 28,871 90,750 214,950
Refund due to fractional shares - - (695)
Proceeds from issuance of preferred stock - 231,600 169,700
Proceeds from issuance of notes payable 315,231 341,938 -
----------------- ----------------- -----------------
Net cash provided by financing activities 344,102 658,043 383,955
----------------- ----------------- -----------------
Net increase (decrease) in cash (3,778) (12,559) (26,550)
Cash at beginning of year 4,471 17,030 43,580
----------------- ----------------- -----------------
Cash at end of year $ 693 4,471 17,030
================= ================= =================
Supplemental disclosures:
Cash paid during the year for:
Interest $ - - -
================= ================= =================
Income taxes $ - - -
================= ================= =================
</TABLE>
See accompanying notes to consolidated financial statements.
6
<PAGE>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1993 and 1992
(1) Summary of Significant Accounting Policies
(a) Principles of Consolidation
The consolidated financial statements include the financial statements of
Safetek International, Inc. ("Safetek" or the "Company") and its wholly
owned subsidiaries, Safety Technologies, Inc. ("STI") and Sentex, Inc.
("Sentex"). All significant intercompany balances and transactions have
been eliminated in consolidation.
(b) Corporate Organization
Safetek International, Inc. (formerly known as Theoretics, Inc.) was
incorporated in April 1988. STI was in the development stage since its
incorporation in December 1986 through December 31, 1990. Sentex has had
no significant operations since its incorporation in December 1988. The
Company is engaged primarily in the development and marketing of safety
products for the health care, medical, industrial, commercial, hotel,
home building, boating, and recreational markets.
(c) Depreciation
Depreciation is computed using the straight-line method over the estimated
useful lives of the assets as follows:
Furniture and fixtures 5-7 years
Computer equipment 5 years
Manufacturing equipment 5 years
(d) Inventories
Inventories consist primarily of safety grab bars and are stated at the
lower of cost or market. Cost is determined using the first-in first-out
method and includes all direct and indirect costs.
(Continued)
7
<PAGE>
<TABLE>
<CAPTION>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(1) Summary of Significant Accounting Policies
(e) Income Taxes
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to temporary differences between the financial
statements carrying amounts of existing assets and liabilities and their
respective tax bases and operating loss and tax credit carryforwards.
Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. Changes in tax rates
are recognized in the period that includes the enactment date.
(f) Revenue Recognition
Revenue is recognized as the Company's products are provided or upon sale
and/or installation. The Company is presently operating in this one
business segment within the United States and has generated minimal
revenues through December 31, 1993.
(g) Advertising Costs
Advertising expenditures related to product presentation material and
marketing efforts are expended as incurred.
(h) Cash Flows
For purposes of reporting cash flows, the Company considers all highly
liquid debt instruments with original maturities of three months or less
to be cash equivalents.
(2) Property and Equipment
Property and equipment consists of the following at December 31, 1993 and 1992:
1993 1992
--------------------------------------- ---------------------------------------
Accumulated Accumulated
Cost Depreciation Cost Depreciation
---------------- -------------------- ---------------- -------------------
<S> <C> <C> <C> <C>
Furniture and
fixtures $ 29,305 (16,594) 29,305 (10,733)
Equipment 118,530 (73,256) 120,780 (50,845)
Leasehold
improvements 5,511 (551) - -
---------------- -------------------- ---------------- -------------------
$153,346 (90,401) 150,085 (61,578)
================ ==================== ================ ===================
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(3) Lease Obligation
The Company leases its office and warehouse space under an operating lease
agreement that expires in 2003. Rent expense for these facilities was
approximately $27,000, $27,000 and $27,000 for the years ended December 31,
1993, 1992 and 1991, respectively.
Future minimum lease payments under noncancellable operating leases are as
follows:
Year ending December 31,
-----------------------
1994 $ 27,000
1995 27,000
1996 27,000
1997 27,000
-----------
$ 108,000
==========
(4) Notes Payable
Notes payable consist of the following at December 31:
1993 1992
----------------- -----------------
<S> <C> <C>
Unsecured note payable to individual:
Interest accrues at 10%. Principal was due through February 11, 1993.
$640,000 290,000
Unsecured note payable to individual:
Interest is at 10%. Principal was due November 10, 1992. 5,000 5,000
Unsecured note payable to individual:
Interest is at 18%. Principal was due November 10, 1992 10,000 10,000
Unsecured note payable to individual:
Interest is at 18%. Principal was due November 10, 1992 5,000 5,000
Unsecured note payable to individual:
Interest is at 18%. Principal was due November 10, 1992 5,000 5,000
Unsecured note payable to individual:
Interest is payable annually on February 3, at 8%. Principal
is due February 3, 1997 - 15,000
Unsecured notes payable to vendors:
Interest is payable monthly at 12%. Principal was payable monthly
through December 31, 1993. 10,792 30,561
----------------- -----------------
Total $ 675,792 360,561
================= =================
</TABLE>
9
<PAGE>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(4) Notes Payable - (Continued)
All of the notes described herein are past due. Interest at the stated rates
within the note agreements has been accrued through December 31, 1993 and 1992
and is included in accrued expenses in the accompanying balance sheets.
(5) Related Party Transactions
Related party transactions described as advances to shareholders and due to
shareholders in the accompanying consolidated balance sheets are comprised of
the following:
<TABLE>
1993 1992
---------- ---------
<S> <C> <C>
Accrued wages resulting from an
employment contract with a shareholder
which ends July 31, 2000 350,841 228,268
Non-interest bearing demand loan from a
shareholder 172,463 172,463
---------- ---------
$ 523,304 400,731
========== =========
</TABLE>
(6) Income Taxes
At December 31, 1993, the Company had net operating loss carryforwards of
approximately $3,269,000 for financial statement and income tax purposes which
will expire in varying amounts commencing in 2001 through 2018. A valuation
allowable equal to the tax benefit of the net operating losses has been
established since it is uncertain that future taxable income will be realized
during the carryforward period. Accordingly, no income tax provision has been
recognized in the accompanying financial statements.
(7) Loss per Share of Common Stock
Loss per share of common stock in 1993, 1992 and 1991 was based on the weighted
average number of shares outstanding of 8,447,965, 3,360,742 and 3,360,742 in
1993, 1992 and 1991, respectively.
10
<PAGE>
SAFETEK INTERNATIONAL, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(8) Redeemable Convertible Preferred Stock - (Continued)
The redeemable convertible preferred stock (preferred) may be converted to
common shares at a rate of five common shares for each preferred share. In
addition, the Company is required to redeem the preferred shares at $1 per share
on February 21, 2002. During the years 1993, 1992 and 1991, no preferred stock
has been converted.
The redeemable convertible preferred stock (preferred) may be converted to
common shares at a rate of five common shares for each preferred share. In
addition, the Company is required to redeem the preferred shares at $1 per share
on February 21, 2002. To date, no preferred shares have been redeemed.
The preferred stock issuance is not considered a part of stockholders' equity in
the accompanying balance sheets because of the redeemable feature associated
with the stock. As the preferred stock is converted, the resulting common stock
and paid capital is included in stockholders' equity.
11
