|
|
|
|
|
|
|
|
|
|
|
|
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934.
For the quarter ended June 30, 2000 Commission file number 000-30234
Millennium Plastics Corporation
Nevada
88-0422242
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
5631 S. Pecos Rd
Las Vegas, Nevada
89120
(Address of principal executive offices)
(Zip Code)
(702) 454-2121
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.
Yes X No
As of June 30, 2000, there were 23,978,000 shares of common stock outstanding.
INDEX
PART I - FINANCIAL INFORMATION Page No.
|
Item 1. |
Financial Statements |
|
|
Condensed Statement of Shareholders' Equity ending June 30, 2000 |
||
|
Notes to Condensed Financial Statements Ending June 30, 2000 |
||
|
Item 2. |
Management's Discussion and Analysis of Financial Condition and Results of Operation |
|
|
PART II - OTHER INFORMATION |
||
|
Item 1. |
||
|
Item 2. |
||
|
Item 3. |
||
|
Item 4. |
||
|
Item 5. |
||
|
Item 6. |
||
MILLENNIUM PLASTICS CORPORATION
CONDENSED BALANCE SHEET
JUNE 30, 2000
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
|
June 30, 2000 |
March 31, 2000 |
||||
|
ASSETS |
|||||
|
CURRENT ASSETS: |
|||||
|
Cash in bank |
$ |
369,278 |
$ |
585,854 |
|
|
Receivable from affiliate |
60,000 |
-- |
|||
|
TOTAL CURRENT ASSETS |
429,278 |
585,854 |
|||
|
PROPERTY AND EQUIPMENT |
|||||
|
Equipment |
1,589 |
1,005 |
|||
|
Less: Accumulated Depreciation |
281 |
201 |
|||
|
NET PROPERTY AND EQUIPMENT |
1,308 |
804 |
|||
|
OTHER ASSETS |
|||||
|
Intangible asset-Patent |
10,000,000 |
10,000,000 |
|||
|
Less: Accumulated Amortization-Patent |
333,334 |
166,667 |
|||
|
Patent-net of accumulated amortization |
9,666,666 |
9,833,333 |
|||
|
TOTAL OTHER ASSETS |
9,666,666 |
9,833,333 |
|||
|
TOTAL ASSETS |
$ |
10,097,252 |
$ |
10,419,991 |
|
|
|
|||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
|
CURRENT LIABILITIES |
|||||
|
Accounts Payable |
$ |
21,175 |
$ |
154,138 |
|
|
Accrued Liabilities |
3,676 |
7,672 |
|||
|
TOTAL CURRENT LIABILITIES |
24,851 |
161,810 |
|||
|
STOCKHOLDERS' EQUITY |
|||||
|
Common stock, $.001 par value; 50,000,000 shares authorized; |
|||||
|
23,978,000 shares issued and outstanding 6/30/00 |
|
23,978 |
|
|
|
|
23,900,000 shares issued and outstanding 3/31/00 |
23,900 |
||||
|
Paid in Capital |
10,834,021 |
10,736,599 |
|||
|
Deficit accumulated during the development stage |
(785,598) |
(502,318) |
|||
|
TOTAL STOCKHOLDERS' EQUITY |
10,072,401 |
10,258,181 |
|||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
10,097,252 |
$ |
10,419,991 |
|
See notes to condensed financial statements.
MILLENNIUM PLASTICS CORPORATION
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
|
Common Stock |
Paid In |
Treasury |
Deficit |
|||
|
Per |
Shares |
Amount |
||||
|
$ |
$ |
$ |
$ |
$ |
$ |
|
|
Inception-Shares issued for marketing |
0.001 |
17,000,000 |
17,000 |
-- |
-- |
-- |
|
Net loss for the years ended March 31, 1987 |
-- |
-- |
-- |
-- |
(17,000) |
|
|
Balance March 31, 1987 |
17,000,000 |
17,000 |
-- |
-- |
(17,000) |
|
|
Activity to March 31, 1998 |
-- |
-- |
-- |
-- |
-- |
|
|
Balance March 31, 1998 |
17,000,000 |
17,000 |
-- |
-- |
(17,000) |
|
|
Activity to March 31, 1999 |
-- |
-- |
-- |
-- |
-- |
|
|
Balance March 31, 1999 |
17,000,000 |
17,000 |
-- |
-- |
(17,000) |
|
|
Shares issued for services |
0.050 |
100,000 |
100 |
4,900 |
-- |
-- |
|
Shares issued for acquisition of Graduated Plastics, inc. |
0.152 |
6,750,000 |
6,750 |
1,019,249 |
-- |
-- |
|
Shares contributed by a shareholder |
-- |
-- |
8,000 |
(8,000) |
-- |
|
|
Shares issued for patent |
1.213 |
-- |
-- |
9,692,000 |
8,000 |
-- |
|
Shares issued for services |
0.250 |
50,000 |
50 |
12,450 |
-- |
-- |
|
Net loss for the year ended March 31, 2000 |
-- |
-- |
-- |
-- |
(485,318) |
|
|
Balance March 31, 2000 |
23,900,000 |
23,900 |
10,736,599 |
-- |
(502,318) |
|
|
Unaudited after March 31, 2000 |
||||||
|
Shares issued for services |
1.250 |
78,000 |
78 |
97,422 |
-- |
-- |
|
Net loss for the quarter ended June 30, 2000 |
-- |
-- |
-- |
-- |
(283,280) |
|
|
Balance June 30, 2000 |
23,978,000 |
$ 23,978 |
$ 10,834,021 |
$ -- |
$ (785,598) |
|
See notes to condensed financial statements.
MILLENNIUM PLASTICS CORPORATION
CONDENSED STATEMENT OF OPERATIONS
UNAUDITED
|
Three Months Ended |
From |
|||||
|
2000 |
1999 |
|||||
|
Revenues |
$ |
-- |
$ |
-- |
$ |
-- |
|
Amortization of patent |
166,667 |
-- |
333,334 |
|||
|
Wages |
29,509 |
-- |
45,509 |
|||
|
Professional fees |
43,031 |
-- |
242,733 |
|||
|
Travel |
11,556 |
-- |
63,739 |
|||
|
Administrative expenses |
40,876 |
-- |
119,915 |
|||
|
Loss from operations |
(291,639) |
-- |
(805,230) |
|||
|
Interest income |
8,359 |
-- |
19,632 |
|||
|
Net loss |
$ |
(283,280) |
$ |
-- |
$ |
(785,598) |
|
Net loss per share of common |
||||||
|
Stock-based and diluted |
$ |
(0.01) |
$ |
-- |
$ |
(0.04) |
|
Weighted average shares outstanding |
23,939,000 |
17,000,000 |
17,925,000 |
|||
See notes to condensed financial statements.
MILLENNIUM PLASTICS CORPORATION
CONDENSED STATEMENT OF CASH FLOWS
UNAUDITED
|
Three Months Ended |
From |
|||||
|
2000 |
1999 |
|||||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
$ |
(283,280) |
$ |
-- |
$ |
(785,598) |
|
Net Loss |
||||||
|
Adjustments to reconcile net income to net cash |
||||||
|
provided by operating activities: |
||||||
|
Depreciation and Amortization |
166,747 |
-- |
350,615 |
|||
|
Issuance of stock for services |
97,500 |
-- |
115,000 |
|||
|
Changes in assets and liabilities: |
||||||
|
Receivable from affiliate |
(60,000) |
-- |
(60,000) |
|||
|
Accounts payable |
(132,963) |
-- |
21,175 |
|||
|
Accrued liabilities |
(3,996) |
-- |
3,676 |
|||
|
Cash used in operating activities |
(215,992) |
-- |
(355,132) |
|||
|
Investing activities: |
||||||
|
Purchase of equipment |
(584) |
-- |
(1,589) |
|||
|
Financing activities: |
||||||
|
Payments on acquired patent |
-- |
-- |
(300,000) |
|||
|
Stock issued for acquisition |
-- |
-- |
1,025,999 |
|||
|
Cash provided from financing activities |
-- |
-- |
725,999 |
|||
|
Increase (decrease) in cash and cash equivalents |
(216,576) |
-- |
369,278 |
|||
|
Cash and cash equivalents, beginning |
585,854 |
-- |
-- |
|||
|
Cash and cash equivalents, ending |
$ |
369,278 |
$ |
-- |
$ |
369,278 |
See notes to condensed financial statements.
MILLENNIUM PLASTICS CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
Note 1 Basis of Presentation
The accompanying unaudited condensed financial statements at June 30, 2000 have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of financial position as of June 30, 2000 and results of operations and cash flows for the three months ended June 30, 2000. All such adjustments are of a normal recurring nature. The results of operations for the interim period are not necessarily indicative of the results to be expected for a full year. Certain amounts in the 2000 financial statements have been reclassified to conform to the 2001 presentations. The statements should be read in conjunction with the financial statements and footnotes thereto included in the Company's Form 10-KSB for the year ended March 31, 2000.
Note 2 Stock Transactions
Pursuant to an agreement in December 1999, MPCO placed in escrow 120,000 shares of stock to be issued to a Company performing investment relations. The agreement called for the immediate vesting of 36,000 shares and 7,000 shares each month for 12 month to be issued based on the performance of services. At June 30, 2000 78,000 shares were earned and issued. The services were assigned a value equal to $1.25 per share.
Note 3 Subsequent Events
On April 30, 2000 MPCO entered into an agreement with SCAC Holdings Corp. (SCAC) to acquire all of the outstanding stock of Solplax Limited, a wholly owned subsidiary of SCAC. MPCO will receive back the 8,000,000 restricted shares they issued to SCAC in December 1999 and will issue 12,000,000 unrestricted shares to SCAC. It is anticipated the merger will be consummated in the second quarter of fiscal year 2001.
The Company has a receivable of $60,000 from SCAC as of June 30, 2000 for advances made by SCAC to Solplax.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis should be read in conjunction with the Company's financial statements and the notes thereto contained elsewhere in this filing.
Overview
Millennium Plastics Corporation ("Millennium" or the "Company") was incorporated in the State of Nevada. Millennium, through its merger with Graduated Plastics Corporation, acquired the United States patent rights to new and innovative polymer and coating technology invented in 1995 by Solplax Ltd. of Ireland. International patent attorneys in Europe and the United States have confirmed that the patent is comprehensive and durable, having been written by the developers of the technology and a scientific team with specialization in PVA polymers. Independent evaluations carried out in London, and Trinity College of Dublin have also endorsed these conclusions.
The plastics which have been developed have the unique and very marketable characteristic of dissolving in water and leaving only non-toxic water and atmospheric gases. Public perception and governmental pressures for plastics which are environmentally friendly are projected to propel the commercial demand for this product.
Results of Operations for the three months ended June 30, 2000
Total operating expenses from continuing operations were $283,280 for the three months ended June 30, 2000. Increase operating expenses in the current period are a result of professional fees, administrative expenses and other expenses related to product research, development and marketing.
Forward-Looking Statements and Associated Risks
This Quarterly Report on Form 10-QSB contains forward-looking statements made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These forward looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties, many of which are beyond the Company's control, including, but not limited to, economic, competitive and other factors affecting the Company's operations, markets, products and services, expansion strategies and other factors discussed elsewhere in this report and the documents filed by the Company with the Securities and Exchange Commission. Actual results could differ materially from these forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this report will in fact prove accurate. The Company does not undertake any obligation to revise these forward-looking statements to reflect future events or circumstances.
Liquidity and Capital Reserves
As of June 30, 2000 (Unaudited)
As of June 30, 2000, the Company's assets were $10,097,252 and its liabilities were $24,851 resulting in an excess of assets of $10,072,401. Cash was $369,278 at June 30, 2000.
The Company has continued to fund its deficit cash flow from private placements of the Company's common stock. It is anticipated that loans and the sale of the Company's stock will continue until such time as the Company generates sufficient revenues from its operations to cover operating expenses.
PART II--OTHER INFORMATION
None
Item 2. Changes in Securities.
None.
Item 3. Defaults by the Company upon its Senior Securities.
None.
Item 4. Submission of Matter to a Vote of Security Holders.
None
None
Item 6. Exhibits and Reports of Form 8-K.
None
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.
MILLENNIUM PLASTICS CORPORATION
(Registrant)
By: /s/ Paul Branagan
Paul Branagan
President
Date: December 5, 2000
|
|