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 December 31, 1999 Commission file number 000-30234
Millennium Plastics Corporation
(Exact name of registrant as specified in its charter)
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 No X
As of December 31, 1999, there were 23,850,000 shares of common stock
outstanding.
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MILLENNIUM PLASTICS CORPORATION
FOR THE QUARTER ENDED
DECEMBER 31, 1999
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheet as of December 31, 1999 3
Statement of Shareholders' Equity
ending December 31, 1999 4
Income Statement
ending December 31, 1999 5
Statement of Cash Flows
ending December 31, 1999 6
Notes to Financial Statements
Ending December 31, 1999 7-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operation 9-12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults by the Company upon its
Senior Securities 11
Item 4. Submission of Matter to a Vote of
Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports of Form 8-K 11
SIGNATURES 12
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MILLENNIUM PLASTICS CORPORATION
BALANCE SHEET
DECEMBER 31, 1999
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
December 31,
1999 March 31,
(unaudited) 1999
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Assets
Current assets:
Cash $988,131 0
------------- -------------
Total current assets 988,131 0
Other assets:
Intangible asset-product marketing rights 10,000,000 0
Intangible asset, net of accumulated
Amortization of $222 39,778 -
------------- -------------
Total Assets $11,027,909 0
=========== ==========
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Liabilities and shareholders' equity
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Current liabilities:
Note payable $300,000 0
Note payable to shareholders 8,000 0
------------- -------------
Total current liabilities 308,000 0
------------- -------------
Shareholders' Equity
Common stock, $.001 par value, 25,000,000
shares authorized; 23,850,000 at 12/31/99 and
17,000,000 at 3/31/99 shares issued and 23,850 17,000
outstanding
Paid in capital 10,716,149 0
Deficit accumulated during the development (20,090) (17,000)
stage
------------- -------------
Total shareholders' equity 10,719,909 0
------------- -------------
Total liabilities and shareholders' equity $11,027,909 0
=========== ==========
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MILLENNIUM PLASTICS CORPORATION
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
ENDING DECEMBER 31, 1999
Additional
Common Stock Paid-In Treasur Accumulated
Shares Amount Capital y Deficit
---------- ------- ----------- ------- -----------
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Inception 0 0 0 0 0
Shares issued for
Marketing 17,000,000 $17,000 0 0 0
Net loss for the
years ended April
2, 1986- March 31,
1998 0 0 0 0 ($17,000)
Net loss for the
year ended March
31, 1999 0 0 0 0 0
---------- ------- ----------- ------- -----------
Balance March 31,
1999 17,000,000 17,000 0 0 (17,000)
Shares issued for
services 100,000 100 $4,900 0 0
Shares issued for
acquisition of
Graduated Plastics,
inc. 6,750,000 6,750 1,019,249 0 0
Shares acquired
from shareholder 0 0 0 $8,000 0
Shares issued for
product marketing
rights valued at
$10,000,000 0 0 9,692,000 (8,000) 0
Net loss for the
period ended
December 31, 1999 0 0 0 0 (3,090)
---------- ------- ----------- ------- -----------
Balance December
31, 1999
23,850,000 $23,850 $10,716,149 0 ($20,090)
======== ======= ========== ======= ==========
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MILLENNIUM PLASTICS CORPORATION
INCOME STATEMENT
ENDING DECEMBER 31, 1999 AND DECEMBER 31, 1998
Three Months Three Months
Ended December Ended
31, 1999 December 31,
1998
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Revenues 0 0
--- -------
Administrative expense $5,384 0
-------------- ------------
Loss from operations (5,384) 0
Interest Income ($3,090) 0
-------------- ------------
Net loss ($3,090) 0
========= ==========
Loss Per Share (0.00) 0
========== ============
Weighted average of number of shares 21,566,667 17,000,000
outstanding
========== ============
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MILLENNIUM PLASTICS CORPORATION
STATEMENT OF CASH FLOWS
ENDING DECEMBER 31, 1999 AND DECEMBER 31, 1998
Three Three Months
Months Ended
Ended December 31,
December 1998
31, 1999
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Cash Flow from operating activities
Net loss ($3,090) 0
Adjustment to loss reconcile to cash used in
operating activities:
Amortization 222 -
----------- ------------
Net cash used in operating activities (2,868) 0
----------- ------------
Financing activities:
Stock Issued for marketing rights 0 0
Stock issued for services 5,000 0
Stock issued for acquisition 985,999 0
----------- ------------
Net cash provided form investing activities 990,999 0
----------- ------------
Increase in cash 988,131 0
Beginning cash 0 0
----------- ------------
Ending cash $988,131 0
========= =========
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<PAGE>
1. Summary of Significant Accounting Policies
Organization
Aurora Corporation was incorporated on April 2, 1986. The Company changed
its name to Millenium Plastics Corporation (MPC or Company) in December,
1999.
The Company is currently attempting to find business opportunities.
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 amounts reported in the financial
statements and notes. Actual results could differ from those
estimates, but management does not believe such differences will
materially affect the Company's financial position, results of
operations or cash flows.
Cash Equivalents
The Company's cash equivalents consist principally of cash and money
market accounts with high quality financial institutions. The
investment policy limits the amount of credit exposure to any one
financial institution.
Accounting Method
The Company recognizes income and expense on the accrual basis of
accounting.
Earnings (Loss) Per Share
The computation of earnings per share of common stock is based on the
weighted average number of shares outstanding at the date of the
financial statements.
Provision for Income Taxes
No provision for income taxes has been recorded.
2. Development Stage Company
The Company is a development stage company. It is concentrating
substantially all of its efforts in raising capital and establishing
business operations in order to generate significant revenues.
<PAGE>
Notes to financial statements (cont'd)
3. Stock Transactions
In November 1999 MPC entered into an agreement to acquire Graduated
Plastics, Inc. (GPI) for a price equal to one share of MPC for one
share of GPI. The business combination is accounted for as a
purchase. GPI (a development stage company) held an option to
acquire marketing rights from Solplax for distribution of their
plastic material (option exercised by MPC - see below). The results
of consolidated operations are included in the financial statements
since the date of acquisition. The assets of the acquired company
totaled $1,025,999 and liabilities were zero. The value of the MPC
stock issued equaled the net assets acquired from GPI. Common stock
on MPC's books (6,750,000 shares) was recorded at $6,750 and paid in
capital recorded as $1,019,249.
Stock was issued for services in fiscal 1999 for an assigned value of
$5,000 for 100,000 shares.
Stock (8,000,000 shares) was sold to the Company by Shareholders for
its par value ($.001/share).
The Company acquired the North American rights to market plastic
products protected by patents owned by Solplax Limited, an Irish
Company, for the issuance of 8,000,000 shares of common stock and a
$300,000 note in December 1999. The plastic provides complete
biodegradability in water or buried landfill, maintaining high
strength in the unruptured state.
The value of the shares issued based on the publicly traded market
exceeded $40,000,000. The assigned value to the transaction of
$10,000,000 ($8,000 stock and $9,692,000 paid in capital) was
determined by management after discounts by determining the estimated
fair market value of minimum returns at the date of acquisition.
4. Intangible Assets
The marketing right to the Solplax plastic products acquired (see
Note 3) is being amortized over a fifteen year life. The other
intangible asset is costs associated with a stock offering that is
amortized over a fifteen-year life.
5. Note Payable
The note payable is related to the acquisition described in Note 3.
This demand unsecured note is due in the first quarter of 2000.
<PAGE>
1. Statement of Information Furnished
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-QSB instructions and in the opinion of
management contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of December
31, 1999, the results of operations ended December 31, 1999 and 1998 and the
cash flows ended December 31, 1999 and 1998. These results have been
determined on the basis of generally accepted accounting principles and
practices and applied consistently with those used in the preparation of the
Company's Audited Financials ending December 31, 1998 as filed in Form 10SB.
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 December 31, 1999
Total operating expenses from continuing operations were $5,384 for the
three months ended December 31, 1999, as compared to the operating expenses
of $0 for the three months ended December 31, 1998.
Increase operating expenses in the current period are a result of
professional fees, consulting fees and other expenses related to product
research, development and marketing.
<PAGE>
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 December 31, 1999 (Unaudited)
As of December 31, 1999, the Company's assets were $11,027,909 and its
liabilities were $308,000 resulting in an excess of assets of $10,719,909.
Cash was $988,131 at December 31, 1999.
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.
Year 2000 Issues
Certain of the Company's computer systems and software may interpret the
year 2000 as some other date. The operating system generally employed by the
Company is Windows 95, which is year 2000 compliant. The networking, general
ledger and accounts payable and facility point-of-sale and software programs
require software updates or modifications to address the year 2000 problem.
The Company is further addressing the matter by replacing certain older
computers and installing off-the-shelf and other third-party software that is
year 2000 compliant, at an estimated cost of less than $1,000. The Company
anticipates that installation of year 2000 compliant software and hardware
will be completed by the end of 1999. The Company does not believe that the
year 2000 problem will have a material affect on the Company's operations,
however, no assurance can be given that the software updates and new
computers will resolve the problem as scheduled or at all.
<PAGE>
PART II--OTHER INFORMATION
Item 1. Legal Proceedings.
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
Item 5. Other Information.
None
Item 6. Exhibits and Reports of Form 8-K.
1. 8-K filed on December 6, 1999
2. 8-K filed on December 8, 1999
<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, thereunto duly authorized.
MILLENNIUM PLASTICS CORPORATION
(Registrant)
By:/s/ Paul Branagan
Paul Branagan
President
Date: February 15,2000
<TABLE> <S> <C>
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<PERIOD-END> DEC-31-1999
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0
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