<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[xx] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1994
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 33-25647-D
Advanced Biological Systems, Inc.
(Exact name of registrant as specified in its charter)
Delaware 87-0462198
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2936 Sierra Point Place, Salt Lake City, Utah 84198
(Address of principal executive offices) (Zip Code)
(801) 521-8000
(Registrant's telephone number, including area code)
(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 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.
[ ] Yes [ x] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's class of
common stock, as of the latest practicable date.
The number of shares outstanding of each of the registrant's classes of common
stock, as of July 8, 1996 is 27,781,234 shares, all of one class of $.001 par
value common stock.
1
<PAGE> 2
TABLE OF CONTENTS
Page No.
--------
PART I
Item 1. Financial Statements F1-F13
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations and Plan of Operations 3-5
PART II
Item 1. Legal Proceedings 6
Item 2. Changes in Securities 6
Item 3. Defaults Upon Senior Securities 6
Item 4. Submission of Matters to a
Vote of Security Holders 6
Item 5. Other Information 6
Item 6. Exhibits and Reports on Form 8-K 6
Signatures 7
2
<PAGE> 3
[JONES, JENSEN & COMPANY Letterhead]
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Advanced Biological Systems, Inc.
Salt Lake City, Utah
The accompanying balance sheet of Advanced Biological Systems, Inc. (a
development stage company) as of September 30, 1994 and the related statements
of operations, stockholders' equity (deficit), and cash flows for the three
months and nine months ended September 30, 1994 and 1993 and from inception on
October 3, 1988 through September 30, 1994 were not audited by us and,
accordingly, we do not express an opinion on them. The accompanying balance
sheet as of December 31, 1993 was audited by us and we expressed an unqualified
opinion on it in our report dated April 4, 1996.
/s/ Jones, Jensen & Company
Jones, Jensen & Company
April 8, 1996
F1
<PAGE> 4
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
September 30, December 31,
1994 1993
------------- ------------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash $ 2,606 $ 30
----------- -----------
TOTAL ASSETS $ 2,606 $ 30
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable - trade $ 78,112 $ 78,112
Loan payable - related party 97,398 32,798
----------- -----------
Total Current Liabilities 175,510 110,910
----------- -----------
COMMITMENTS AND CONTINGENCIES (Note 5) - -
----------- -----------
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock, $0.001 par value,
50,000,000 shares authorized,
no shares issued and outstanding - -
Common stock, $0.001 par value,
30,000,000 shares authorized,
9,311,234 and 9,311,234 shares
issued and outstanding,
respectively 9,311 9,311
Capital in excess of par value 8,072,306 8,072,306
Deficit accumulated during
the development stage (8,254,521) (8,192,497)
----------- -----------
Total Stockholders' Equity (Deficit) (172,904) (110,880)
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) $ 2,606 $ 30
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F2
<PAGE> 5
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
From Inception
For the Three Months Ended For the Nine Months Ended on October 3,
September 30, September 30, 1988 Through
-------------------------- -------------------------- September 30,
1994 1993 1994 1993 1994
----------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
REVENUE $ - $ - $ - $ - $ -
----------- ----------- ----------- ----------- -----------
OPERATING EXPENSES - - - - -
----------- ----------- ----------- ----------- -----------
OPERATING LOSS - - - - -
----------- ----------- ----------- ----------- -----------
OTHER INCOME AND
(EXPENSES)
Loss on discontinued
operations (19,042) (31,356) (62,024) (89,857) (8,254,521)
----------- ----------- ----------- ----------- -----------
NET LOSS $ (19,042) $ (31,356) $ (62,024) $ (89,857) $(8,254,521)
=========== =========== =========== =========== ===========
Loss Per Share $ (0.00) $ (0.00) $ (0.01) $ (0.01) $ (1.36)
=========== =========== =========== =========== ===========
Weighted Average Number
of Shares Outstanding 9,311,234 8,950,359 9,311,234 8,757,026 6,089,166
=========== =========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F3
<PAGE> 6
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(Unaudited)
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Capital in During the
------------------------- Excess of Development
Shares Amount Par Value Stage
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Balance, October 3, 1988 - $ - $ - $ -
Shares issued to incorporators
for $0.0012 per share 3,306,668 3,307 693 -
Net loss for the year ended
December 31, 1988 - - - (164)
----------- ----------- ----------- -----------
Balance, December 31, 1988 3,306,668 3,307 693 (164)
Shares issued to the public for
$0.0375 per share on
August 22, 1989 1,733,332 1,733 63,267 -
Costs of public offering - - (29,265) -
Net loss for the year ended
December 31, 1989 - - - (28,341)
----------- ----------- ----------- -----------
Balance, December 31, 1989 5,040,000 5,040 34,695 (28,505)
Shares of restricted common
stock issued for $6.00 per share 416,667 417 2,499,583 -
Net loss for the year ended
December 31, 1990 - - - (129,598)
----------- ----------- ----------- -----------
Balance, December 31, 1990 5,456,667 $ 5,457 $ 2,534,278 $ (158,103)
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
F4
<PAGE> 7
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Continued)
(Unaudited)
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Capital in During the
------------------------- Excess of Development
Shares Amount Par Value Stage
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1990 5,456,667 $ 5,457 $ 2,534,278 $ (158,103)
Shares issued in private
transactions at an average price
of approximately $4.59 per share 113,917 114 523,636 -
Shares issued in private
placement at $3.00 per share 668,333 668 2,004,332 -
Shares issued in exchange for
product and marketing rights
at $3.00 per share 400,000 400 1,199,600 -
Costs of private placement - - (218,523) -
Contribution of assets by an
officer and director - - 1,350 -
Net loss for the year ended
December 31, 1991 - - - (2,245,287)
----------- ----------- ----------- -----------
Balance, December 31, 1991 6,638,917 6,639 6,044,673 (2,403,390)
Shares issued on March 31, 1992
in private placement at
$3.75 per share 66,667 67 249,933 -
Shares issued on March 31, 1992
in settlement of debt at
approximately $1.00 per share 150,000 150 150,200 -
Shares issued on April 15, 1992 in
private placement at an average price
of approximately $4.49 per share 38,333 38 172,012 -
----------- ----------- ----------- -----------
Balance forward 6,893,917 $ 6,894 $ 6,616,818 $(2,403,390)
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
F5
<PAGE> 8
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Continued)
(Unaudited)
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Capital in During the
-------------------------- Excess of Development
Shares Amount Par Value Stage
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Balance forward 6,893,917 $ 6,894 $ 6,616,818 $(2,403,390)
Shares issued on July 23, 1992
upon exercise of options at
$0.003 per share 83,333 83 167 -
Adjustment for fractional shares
due to stock split
on August 25, 1992 (12) - - -
Shares issued on
October 23, 1992 in settlement
of debt at $1.00 per share 100,000 100 99,900 -
Shares issued on
October 23, 1992 in settlement
of debt at $0.30 per share 350,000 350 104,650 -
Shares issued on
November 24, 1992 in private
placement at $2.00 per share 25,000 25 49,975 -
Shares issued on November
25, 1992 in private placement
at approximately $0.38 per share 134,360 134 50,551 -
Shares issued during
December 1992 in settlement
of debt at $1.00 per share 837,095 837 836,258 -
Costs of private placements - - (9,250) -
Net loss for the year ended
December 31, 1992 - - - (5,540,971)
----------- ----------- ----------- -----------
Balance, December 31, 1992 8,423,693 $ 8,423 $ 7,749,069 $(7,944,361)
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
F6
<PAGE> 9
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Continued)
(Unaudited)
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Capital in During the
------------------------- Excess of Development
Shares Amount Par Value Stage
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1992 8,423,693 $ 8,423 $ 7,749,069 $(7,944,361)
Shares issued on
January 6, 1993 in private
placement at $0.375 per share 53,333 53 19,947 -
Shares issued on
January 6, 1993 upon exercise
of options at $0.003 per share 83,333 84 166 -
Shares issued on May 26, 1993
in private placement at $0.20
per share 50,000 50 9,950 -
Shares issued on May 26, 1993
in private placement at $0.20
per share 200,000 200 39,800 -
Shares issued on July 9, 1993
in private placement at $0.15
per share 100,000 100 14,900 -
Shares issued on August 18,
1993 in private placement at
$0.10 per share 180,000 180 17,820 -
Shares issued during December
1993 in settlement of debt at
$1.00 per share 220,875 221 220,654 -
Net loss for the year ended
December 31, 1993 - - - (248,136)
----------- ----------- ----------- -----------
Balance, December 31, 1993 9,311,234 $ 9,311 $ 8,072,306 $(8,192,497)
----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
F7
<PAGE> 10
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Continued)
(Unaudited)
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Capital in During the
------------------------- Excess of Development
Shares Amount Par Value Stage
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Balance, December 31, 1993 9,311,234 $ 9,311 $ 8,072,306 $(8,192,497)
Net loss for the nine months
ended September 30,1994 - - - (62,024)
----------- ----------- ----------- -----------
Balance, September 30, 1994 9,311,234 $ 9,311 $ 8,072,306 $(8,254,521)
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F8
<PAGE> 11
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
From Inception
For the Three Months Ended For the Nine Months Ended on October 3,
September 30, September 30, 1988 Through
-------------------------- -------------------------- September 30,
1994 1993 1994 1993 1994
----------- ----------- ----------- ----------- --------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES
Net loss from discontinued
operations $ (19,042) $ (31,356) $ (62,024) $ (89,857) $(8,254,521)
Adjustments to reconcile net loss
to net cash used by operating
activities
Depreciation and amortization - - - - 3,043
Stock issued in settlement of
debt - - - - 1,413,320
Loss on disposition of assets - - - 9,411 3,206,791
Increase (decrease) in cash
overdraft - - - (64) -
Increase (decrease)
in accounts payable
and accrued expenses - - - - 78,112
----------- ----------- ----------- ----------- -----------
Net Cash (Used) by
Operating Activities (19,042) (31,356) (62,024) (80,510) (3,553,255)
----------- ----------- ----------- ----------- -----------
CASH FLOWS FROM
INVESTING ACTIVITIES
Purchase of fixed assets - - - - (10,784)
Purchase of product marketing
rights - - - - (1,250)
Purchase of promotional video - - - - (50,000)
----------- ----------- ----------- ----------- -----------
Net Cash Provided (Used)
by Investing Activities $ - $ - $ - $ - $ (62,034)
----------- ----------- ----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
F9
<PAGE> 12
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended on October 3,
September 30, September 30, 1988 Through
-------------------------- ------------------------- September 30,
1994 1993 1994 1993 1994
---------- ---------- ---------- ---------- --------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from loans $ 18,600 $ - $ 64,600 $ - $ 350,140
Proceeds from sale of common
stock - 33,000 - 103,250 3,267,755
---------- ---------- ---------- ---------- ----------
Net Cash Provided by
Financing Activities 18,600 33,000 64,600 103,250 3,617,895
---------- ---------- ---------- ---------- ----------
NET INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS (442) 1,644 2,576 22,740 2,606
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 3,048 21,096 30 - -
---------- ---------- ---------- ---------- ----------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 2,606 $ 22,740 $ 2,606 $ 22,740 $ 2,606
========== ========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
F10
<PAGE> 13
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
From Inception
For the Three Months Ended For the Nine Months Ended on October 3,
September 30, September 30, 1988 Through
-------------------------- --------------------------- September 30,
1994 1993 1994 1993 1994
---------- ---------- ------------ ----------- --------------
<S> <C> <C> <C> <C> <C>
Supplemental Cash Flow
Disclosures
Interest paid $ - $ - $ - $ - $ -
Income taxes paid $ - $ - $ - $ - $ -
Non-Cash Financing Activities
Stock issued for note $ - $ - $ - $ - $ 2,498,750
Stock issued in settlement of
debt $ - $ - $ - $ - $ 1,413,320
Purchase of Bioreactor through
assignment of note $ - $ - $ - $ - $ 2,150,000
Acquisition of product marketing
rights through issuance of
notes and stock $ - $ - $ - $ - $ 2,200,000
</TABLE>
The accompanying notes are an integral part of these financial statements.
F11
<PAGE> 14
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS
September 30, 1994 and December 31, 1993
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Organization
The financial statements presented are those of Advanced Biological
Systems, Inc. (A Development Stage Company) (the Company). The
Company was incorporated in the State of Delaware on October 3, 1988.
The Company was organized to develop and operate centers for the
treatment of diseases of the immune system. The Company discontinued
operations in 1992 and is now seeking new business opportunities.
b. Accounting Method
The Company's financial statements are prepared using the accrual
method of accounting. The Company has elected a calendar year end.
c. Loss Per Share
The computation of loss per share of common stock is based on the
weighted average number of shares outstanding during the period.
d. Deferred Offering Costs
In connection with the public offering of the Company's common stock,
all costs were accumulated as deferred charges. The deferred charges
were offset against capital in excess of par value upon successful
completion of the offering.
e. Cash Equivalents
The Company considers all highly liquid investments with a maturity
of three months or less when purchased to be cash equivalents.
f. Income Taxes
No provision for income taxes has been accrued because the Company
has net operating losses from inception. The net operating loss
carryforwards totalling approximately $8,200,000 at December 31,
1993, expire in 2008. No tax benefit has been reported in the
financial statements because the Company is uncertain if the
carryforwards will expire unused. Accordingly, the potential tax
benefits are offset by a valuation account of the same amount.
F12
<PAGE> 15
ADVANCED BIOLOGICAL SYSTEMS, INC.
(A Development Stage Company)
NOTES TO THE FINANCIAL STATEMENTS (Continued)
September 30, 1994 and December 31, 1993
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
g. Stock Split
On November 15, 1989, the Company effected a forward split of its
common shares outstanding on a 4-for-1 basis in the form of a stock
dividend. On June 29, 1992, the Company effected a reverse stock
split of its common shares outstanding on a 1-for-3 basis. The
financial statements have been restated retroactively to reflect the
effects to these stock splits.
NOTE 2 - STOCK ISSUANCES
During the three months ended September 30, 1994, there were no stock
issuances.
NOTE 3 - DISCONTINUED OPERATIONS
In 1992, the Company discontinued all operations due to a lack of
working capital. The Company is currently inactive and is seeking
other business opportunities.
NOTE 4 - GOING CONCERN
The Company's financial statements are prepared using generally
accepted accounting principles applicable to a going concern.
However, the Company has experienced operating losses and no longer
has a source of revenues. The Company is seeking new business
opportunities through merger or purchase of existing, operating
companies. Until that time, the Company's operating expenses may be
financed by advances from a major shareholder. Due to the limited
assets of the Company, no assurance can be given that the Company
will continue as a going concern.
NOTE 5 - COMMITMENTS AND CONTINGENCIES
For the year ended, December 31, 1992, the Company wrote off certain
accounts payable which were either disputed or never paid. The
statute of limitations has run for most of the undisputed payables,
but has not run for the disputed payables. As of the date of issuance
of these financial statements, no attempt has been made to collect
these amounts from the Company. The disputed amounts totalled
$179,999 at December 31, 1992. The Company's management believes that
the risk that the Company will be required to pay any of the disputed
amounts is remote.
F13
<PAGE> 16
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS AND PLAN OF OPERATIONS
The Company is subject to the reporting requirements under the
Securities Exchange Act of 1934. Notwithstanding such requirements, the last
report filed by the Company (exclusive of a Form 8-K with date of report of
December 18, 1994, filed December 28, 1994) was a Form 10-Q for its quarter year
ended September 30, 1992. The Company, during the first six months of 1996
embarked upon an effort to bring itself "current" with respect to its reporting
requirements and in that regard has prepared and filed (or is in the process of
filing) the following reports as indicated:
Form 10-KSB for calendar year ended December 31, 1992
Forms 10-QSB for quarters ended March 31, 1993, June 30, 1993 and September 30,
1993
Form 10-KSB for calendar year ended December 31, 1993
Forms 10-QSB for quarters ended March 31, 1994, June 30, 1994 and September 30,
1994
Form 10-KSB for calendar year ended December 31, 1994
Forms 10-QSB for quarters ended March 31, 1995, June 30, 1995 and September 30,
1995
Form 10-KSB for calendar year ended December 31, 1995 and
Form 10-QSB for quarter ended March 31, 1996
Each of the above referenced reports were basically prepared at or
around the same time and forwarded for filing purposes on or about the same
date.
Each of the above referenced reports clearly indicate that the Company
has not had any revenues from operations since its inception in 1988. Such
reports further indicate that in 1992 the Company discontinued all operations
due to lack of working capital and that the Company has been inactive and
remained inactive through March 31, 1996.
Such reports further indicate that from time to time, and as management
felt the need arose, the Company utilized sale of its securities for purposes of
obtaining operating capital and/or in order to settle certain outstanding
indebtedness. For a complete summarization of all shares of Company common stock
issued from inception through December 31, 1995, reference is herewith made to
the audited statement of stockholders' equity as same appears in the Company's
Form 10-KSB for calendar year ended December 31, 1995.
Such statement of stockholders' equity (taken in conjunction with those
prior audited statements of stockholders' equity for calendar years ended
December 31, 1992, 1993 and 1994) indicates, in part, as follows:
3
<PAGE> 17
Calendar year ended December 31,
A) 1992 - the Company issued 1,437,095 shares of its common stock
in settlement of debt in the amount of $1,192,445. During
such time period the Company also issued 347,693 shares of its
common stock in private placements for net proceeds of
$513,735.
B) 1993 - the Company issued 220,875 shares of its common stock
in settlement of debt in the amount of $220,875. During such
time period the Company also issued 666,666 shares of its
common stock in private placements for net proceeds of
$103,250.
C) 1994 - no new shares of common stock were issued.
D) 1995 - the Company issued 14,000,000 shares of its common
stock in settlement of debt in the amount of $140,398. During
such time period the Company also issued 3,400,000 shares of
its common stock in private placements for net proceeds of
$100,000.
No shares of common stock were issued during the first quarter of 1996.
As can be seen from the above, from January 1, 1992 through March 31,
1996 an aggregate of 15,657,970 shares of Company common stock were issued for
purposes of retiring debt in the amount of $1,553,718. Accordingly, as a direct
result of the above (and taking into consideration debt retirement in exchange
for securities) Company liabilities (which consists of accounts payable - trade)
were reduced to $55,327 as of March 31, 1996.
Subsequent to March 31, 1996 and during the first two weeks of April,
1996, the Company issued an additional 1,000,000 shares of its common stock for
cash consideration in the amount of $35,000.
The Company further authorized issuance of an additional 70,000 shares of its
common stock in settlement, on May 8, 1996, of a claim by a former officer for
use of his name on stock certificates subsequent to his resignation.
Accordingly, as of July 8, 1996 the total number of shares of common stock
issued and outstanding amounted to 27,781,234.
Once each of the above referenced Forms 10-QSB and 10-KSB have been
filed the Company will be current with respect to its reporting requirements and
will be in a position so as to pursue its current business objectives, i.e., to
seek potential business opportunities which in the opinion of management may
provide a profit to the Company. Such involvement may be either in the form of
an acquisition of existing business(s) and/or the acquisition of assets in order
to establish subsidiary business(es) for the Company. These plans remain in
their formative stages and are, accordingly, subject to change if and when
alternative business
4
<PAGE> 18
opportunities arise. At the present time management considers the Company's
principal asset to be the fact that the Company is a "public" company trading on
the electronic over-the-counter bulletin board, thereby creating a "value" for
the Company which might not otherwise exist if it were not a public company. An
example of such "value" relates directly to the Company's ability to, as
aforesaid, retire a substantial amount of outstanding indebtedness in exchange
for issuance of its securities, thereby creating a relatively broad base of
interested stockholders, many of whom were former creditors of the Company.
5
<PAGE> 19
PART II
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. (a) Exhibits - None
(b) Reports on Form 8-K None
6
<PAGE> 20
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.
ADVANCED BIOLOGICAL SYSTEMS, INC.
By /Emanuel A. Floor/
--------------------------------
Emanuel A. Floor, President
Dated: June 30, 1996
7
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> SEP-30-1994
<CASH> 2,606
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,606
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,606
<CURRENT-LIABILITIES> 175,510
<BONDS> 0
0
0
<COMMON> 9,311
<OTHER-SE> (182,215)
<TOTAL-LIABILITY-AND-EQUITY> 2,606
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> (62,024)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (62,024)
<EPS-PRIMARY> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
