UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended - September 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the transition period from ________ to ________
Commission file number 33-33042-NY
CORONADO INDUSTRIES, INC.
----------------------------------------------
(Name of small business issuer in its charter)
Nevada 22-3161629
------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
16929 E. Enterprise Drive, Suite 202, Fountain Hills, AZ 85268
--------------------------------------------------------------- ---------
(Address of Principal executive offices) (as of date of filing) (Zip Code)
Issuer's telephone number (480) 837-6810
---------------
Check whether the issuer (1) 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 such filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 35,583,120
Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
<PAGE>
CORONADO INDUSTRIES, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000
Page
----
PART I
Item 1 Financial Statements 1
Item 2. Management's Discussion and Analysis
or Plan of Operation 7
PART II
Item 1. Legal Proceedings 10
Item 2. Changes in Securities N/A
Item 3. Defaults Upon Senior Securities N/A
Item 4. Submission of Matter to a Vote of Security Holders N/A
Item 5. Other Matters N/A
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 11
<PAGE>
CORONADO INDUSTRIES, INC.
BALANCE SHEETS
SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
----------- -----------
(Unaudited) (Audited)
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 56,834 $ 3,454
Inventory 23,985 24,265
Prepaid Expenses 164,070 --
----------- -----------
Total Current Assets 244,889 27,719
Property and Equipment, net 103,613 115,767
Other Assets:
Intangible Assets, net 26,017 28,833
Deferred Loan Expense 15,833 26,000
----------- -----------
Total Assets $ 390,352 $ 198,319
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Note Payable to Related Party -
Current Portion $ 225,407 $ 79,960
Accounts Payable 42,536 94,252
Accrued Salaries 522,500 276,090
Other Liabilities 26,785 2,835
----------- -----------
Total Current Liabilities 817,228 453,137
Long-term Debt 230,000 230,000
----------- -----------
Total Liabilities 1,047,228 683,137
----------- -----------
Stockholders' Equity (Deficit):
Preferred Stock - $.0001 par value: 3,000,000 shares
authorized, none issued or outstanding -- --
Common Stock - $.001 par value; 50,000,000 shares authorized,
35,583,120 shares outstanding at September 30, 2000;
33,385,046 shares outstanding at December 31, 1999 35,583 33,385
Additional Paid-in Capital 4,585,950 3,170,378
Accumulated Deficit (5,278,409) (3,688,581)
----------- -----------
Total Stockholders' Equity (Deficit) (656,876) (484,818)
----------- -----------
Total Liabilities and Stockholders' Equity (Deficit) $ 390,352 $ 198,319
=========== ===========
</TABLE>
1
<PAGE>
CORONADO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Three Months
---------------------------- ----------------------------
2000 1999* 2000 1999*
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Product Revenues $ 12,000 $ 46,000 $ 12,000 $ 0
Patient Revenues 0 28,005 0 0
------------ ------------ ------------ ------------
Total Revenues 12,000 74,005 12,000 0
Cost of Product Revenues 280 125,150 280 0
Cost of Patient Revenues 0 67,255 0 0
------------ ------------ ------------ ------------
Total Cost of Revenues 280 192,405 280 0
------------ ------------ ------------ ------------
Gross Profit/(Loss) 11,720 (118,400) 11,720 0
General and Administrative Expenses:
Salaries and Wages 342,261 200,000 110,413 75,000
Public Relations 717,856 74,905 171,606 11,106
Legal and Professional fees 161,879 146,860 10,664 23,985
FDA expenses 145,539 35,000 48,000 30,000
Rent expense 51,081 0 8,840 0
Miscellaneous expenses 118,455 287,833 32,298 73,345
------------ ------------ ------------ ------------
Total general and administrative expenses 1,537,071 744,598 381,821 213,436
Loss from Operations (1,525,351) (862,998) (370,101) (213,436)
------------ ------------ ------------ ------------
Other Income (Expense)
Interest Expense (59,334) (16,995) (20,602) (8,100)
Deferred Loan (Expense) (10,167) -- (7,167) 0
Miscellaneous Income (Expense) 5,024 108,500 250 (1,500)
------------ ------------ ------------ ------------
(64,477) 91,505 (27,519) (9,600)
------------ ------------ ------------ ------------
Net Loss $ (1,589,828) $ (771,493) $ (397,620) $ (223,036)
============ ============ ============ ============
Basic Loss per Share $ (0.05) $ (0.02) $ (0.01) $ (0.01)
============ ============ ============ ============
Weighted Average Shares Outstanding 34,824,443 32,132,948 35,375,769 32,254,865
============ ============ ============ ============
</TABLE>
* Restated for comparative purposes only.
2
<PAGE>
CORONADO INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS'
EQUITY (DEFICIT) FOR THE NINE MONTH PERIOD
ENDED SEPTEMBER 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
Total
COMMON STOCK Stock-
--------------------- Additional Retained Holders'
Shares Paid-in Earnings Treasury Equity
Outstanding Amount Capital (Deficit) Stock (Deficit)
----------- ------ ------- --------- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1999 33,385,046 $33,385 $3,170,378 $(3,688,581) $ -- $ (484,818)
Stock issued for services 1,918,410 1,918 1,193,177 -- -- 1,195,095
Stock issued for salaries 79,664 80 82,595 -- -- 82,675
Stock options exercised 200,000 200 14,800 -- -- 15,000
Stock warrants sold and forfeited -- -- 125,000 -- -- 125,000
Net loss -- -- -- (1,589,828) -- (1,589,828)
---------- ------- ---------- ----------- ---- -----------
Balance at September 30,2000 35,583,120 $35,583 $4,585,950 $(5,278,409) $ -- $ (656,876)
========== ======= ========== =========== ==== ===========
</TABLE>
3
<PAGE>
CORONADO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
September 30, 2000 September 30, 1999
------------------ ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Cash received from customers $ 12,000 $ 0
Cash paid to suppliers and employees (34,266) (100,735)
Interest paid (12,150) 0
--------- ---------
Net cash used by operating activities (34,416) (100,735)
--------- ---------
CASH FLOW USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment (2,750) 0
--------- ---------
Net cash used by investing activities (2,750) 0
--------- ---------
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from borrowings 0 16,975
Stock warrants sold and forfeited 50,000 0
--------- ---------
Net cash provided by financing activities 50,000 16,975
--------- ---------
NET INCREASE (DECREASE) IN CASH 12,834 (83,760)
CASH, beginning of period 44,000 91,368
--------- ---------
CASH, end of period $ 56,834 $ 7,608
========= =========
RECONCILIATION OF NET LOSS TO NET CASH USED BY
OPERATING ACTIVITIES:
Net Loss $(397,620) $(223,036)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation 7,514 7,900
Amortization 8,106 2,439
Stock issued for services 396,303 43,387
Stock issued for salaries 28,412 0
Changes in Assets and Liabilities:
(Increase)/Decrease
Accounts receivable 0 16,698
Prepaid expenses (164,070) 0
Inventory 280 0
Increase/(Decrease)
Accounts payable 166 (23,123)
Accrued salaries 84,327 75,000
Accrued payroll taxes and other 2,166 0
--------- ---------
363,204 122,301
--------- ---------
Net Cash Used by Operating Activities $ (34,416) $(100,735)
========= =========
</TABLE>
4
<PAGE>
CORONADO INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
<TABLE>
<CAPTION>
September 30, 2000 September 30, 1999
------------------ ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Cash received from customers $ 16,774 $ 0
Cash paid to suppliers and employees (202,360) (357,211)
Interest paid (36,450) 0
----------- -----------
Net cash used by operating activities (222,036) (357,211)
----------- -----------
CASH FLOW USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment (10,031) 0
Sale of building 0 111,000
----------- -----------
Net cash used by investing activities (10,031) 111,000
----------- -----------
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from borrowings 239,160 216,975
Repayment of notes payable (93,713) 0
Stock warrants sold and forfeited 125,000 0
Cash received from exercise of options 15,000 0
----------- -----------
Net cash provided by financing activities 285,447 216,975
----------- -----------
NET INCREASE (DECREASE) IN CASH 53,380 (29,236)
CASH, beginning of period 3,454 36,844
----------- -----------
CASH, end of period $ 56,834 $ 7,608
=========== ===========
RECONCILIATION OF NET LOSS TO NET CASH USED BY
OPERATING ACTIVITIES:
Net Loss $(1,589,828) $ (771,493)
----------- -----------
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation 22,184 23,700
Amortization 12,984 5,317
Stock issued for services 1,195,095 239,844
Stock issued for salaries 82,675 0
(Gain) on sale of building 0 (111,000)
Changes in Assets and Liabilities:
(Increase)/Decrease
Accounts receivable 0 46,846
Prepaid expenses (164,070) 22,490
Inventory 280 600
Increase/(Decrease)
Accounts payable (51,716) (13,515)
Accrued salaries 246,410 200,000
Accrued payroll taxes and other 23,950 0
----------- -----------
1,367,792 414,282
----------- -----------
Net Cash Used by Operating Activities $ (222,036) $ (357,211)
=========== ===========
</TABLE>
5
<PAGE>
CORONADO INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF PRESENTATION:
In the opinion of management, the accompanying financial statements reflect all
adjustments (consisting of normal recurring accruals) necessary to present
fairly the Company's financial position as of September 30, 2000 and the results
of its operations for the nine and three months ended September 30, 2000.
Although management believes that the disclosures in these financial statements
are adequate to make the information presented not misleading, certain
information and footnote disclosures normally included in financial statements
that have been prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to the rules and regulations
of the Securities Exchange Commission.
The results of operations for the nine months ended September 30, 2000 are not
necessarily indicative of the results that may be expected for the full year
ending December 31, 2000. The accompanying consolidated financial statements
should be read in conjunction with the more detailed financial statements, and
the related footnotes thereto, filed with the Company's Annual Report on Form
10-KSB for the year ended December 31, 1999.
PRINCIPLES OF CONSOLIDATION:
The consolidated financial statements include the financial position, results of
operations, cash flows and changes in stockholders' equity of Coronado
Industries, Inc., and its wholly-owned subsidiaries. All material intercompany
transactions, accounts and balances have been eliminated.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS:
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
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
2. BASIC LOSS PER SHARE:
For the nine month period ending September 30, 2000, basic loss per share
includes no dilution and is computed by dividing income available to common
stockholders by the weighted average number of common shares outstanding for the
period. Diluted earnings per share are not presented as their affect is
antidilutive.
3. STOCK WARRANT SOLD AND FORFEITED:
Effective May 16, 2000, the Company entered into an agreement with an existing
warrant holder to modify the terms and conditions of his warrants. Pursuant to
the new agreement, the exercise price of the warrants was reduced from $2.50 per
share to $0.75 per share on 519,000 warrants, for a total exercise price of
$389,250. The Company received $125,000 in deposits against the $389,250
exercise price by August 21, 2000. The funding was to be completed by September
29, 2000 or the warrants were subject to forfeiture. The warrant holder was
unable to pay the remaining balance of $264,250 by the due date, resulting in
the forfeiture of the $125,000 deposit to the Company.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS
Except for historical information contained herein, this document contains
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities
Exchange Act of 1934, as amended (the "Exchange Act") and the Company intends
that such forward-looking statements be subject to the safe harbors created
thereby. Such forward-looking statements involve risks and uncertainties and
include, but are not limited to, statements regarding future events and the
Company's plans and expectations. The Company's actual results may differ
materially from such statements. Although the Company believes that the
assumptions underlying the forward-looking statements herein are reasonable, any
of the assumptions could prove inaccurate and, therefore, there can be no
assurance that the results contemplated in such forward-looking statements will
be realized. In addition, the business and operations of the Company are subject
to substantial risks which increase the uncertainties inherent in the
forward-looking statements included in this document. The inclusion of such
forward-looking information should not be regarded as a representation by the
Company or any other person that the future events, plans or expectations
contemplated by the Company will be achieved.
YEAR 2000 ISSUES
The Company believes its present operations are Year 2000 compliant because the
Company's current use of computers on the headquarters level is minimal and the
primary customer of the Company's treatment centers is the federal government.
At the headquarters level the Company's computers are used exclusively for word
processing, as opposed to accounting, functions. Since the Company's present and
future product sales will be done on a cash-on-delivery or pre-paid basis, the
Company will have no significant accounts receivable for product sales. All of
the Company's employee payroll functions are handled by a nationwide third-party
vendor which has advised the Company that its operations are Year 2000
compliant.
With respect to the Company's treatment centers, the Company purchased a
computer software system in December 1997 which was represented as Year 2000
compliant and the Company's computers purchased in 1997 use an operating system
which is represented as Year 2000 compliant. At this time the Company believes
the risks to its operations from a Year 2000 problem are minimal.
QUARTER ENDING SEPTEMBER 30, 2000
For the quarter ending September 30, 2000 Registrant experienced a net loss of
$397,620, which was comprised primarily of its general and administrative
expenses of $381,821. 89.2% of Registrant's 2000 third quarter corporate
expenses consisted of officers salaries and wages of $110,413 (28.9%),
professional expenses of $58,664 (15.4%) and shareholder services and media
promotion of $171,606 (44.9%). In comparison, during the third quarter of the
1999 fiscal year 65.6% of Registrant's corporate expense of $213,436 consisted
of officers salaries of $75,000 (35.1%), professional expenses of $53,985
(25.3%) and shareholder services and media promotion of $11,106 (5.2%). In April
1999 the annual salaries of Registrant's Chairman and President were increased
to $150,000 each and Dr. LiVecchi started receiving an accrued salary of $75,000
in April 2000. Registrant expects its professional expenses in 2000 to remain at
a high level as a result of its continuing costs for its FDA application
presently estimated at $18,000 per month.
7
<PAGE>
NINE MONTHS ENDING SEPTEMBER 30, 2000
OPERATIONS. Since Registrant closed its Scottsdale glaucoma treatment center on
March 2, 1999, the first three quarters of the 2000 fiscal year can not be
compared to the operations for the first three quarters of 1999.
For the nine months ending September 30, 2000 Registrant experienced a net loss
of $1,589,828, which was comprised primarily of its general and administrative
expenses incurred at the corporate level of $1,537,071 and net interest expense
of $59,334. 89.0% of Registrant's 2000 first nine months corporate expenses
consisted of officers' salaries and wages of $342,261 (22.3%), professional
expenses of $307,418 (20.0%) and shareholder services and media promotion of
$717,856 (46.7%). In comparison, during the first nine months of 1999 61.4% of
Registrant's corporate expense of $744,598 consisted of officers' salaries of
$200,000 (26.9%), professional expenses of $181,860 (24.4%) and shareholder
services and media promotion of $74,905 (10.1%). The increase in officers'
salaries for 2000 over 1999 occurred as a result of two officers' salary being
increased in April 1999 by $50,000 and Dr. LiVecchi receiving an accrued annual
salary of $75,000 in April 2000. The increase in professional expenses in 2000
over 1999 occurred as a result of Dr. Bores being involved in the FDA
application process full time in 2000 and the increased legal expenses incurred
in the FDA application process and listing Registrant's stock for trading on a
German exchange in the first quarter 2000. The increase in shareholder services
and media promotion in 2000 over 1999 resulted from an agreement with a new
shareholder relations firm being reached in 2000 and the commencement of a
European product marketing campaign in the first quarter of 2000. Approximately
80% of the corporate expenses in 2000 were paid with Registrant's common stock
in order to preserve Registrant's cash resources. Registrant expects its
management salaries to increase in the last quarter of 2000 because on April 1,
2000 Dr. LiVecchi was granted an annual salary of $75,000. Registrant expects
its professional expenses in 2000 to remain at a high level as a result of its
continuing costs for its FDA application presently estimated at $18,000 per
month. As Registrant continues its foreign marketing efforts in 2000, its
promotional expenses will likely remain high.
During the nine months ended September 30, 2000 Registrant received a total of
$125,000 as a non-refundable deposit toward the reduced exercise price of
Registrant's outstanding warrants. That option expired on September 29, 2000 and
the deposit has been retained by Registrant.
On October 21, 2000 Registrant executed a one year option agreement with CIBA
Vision AG, a Swiss corporation doing business from Atlanta, Georgia ("Ciba
Vision"). This agreement permits Ciba Vision to obtain the exclusive worldwide
license to the patent rights and technology for Registrant's PNT product. Ciba
Vision will conduct a study, at its cost, of Registrant's PNT product in Europe
in accordance with the study protocol previously agreed to by the parties. It is
anticipated that Ciba Vision will submit the study for approval in Italy before
2000 year end and the study will extend for some 120 to 150 days. Registrant
will have access to all European clinical study results and it is anticipated
Dr. Leo Bores, Registrant's medical director, will participate in the initial
patient procedures in Europe. Ciba Vision will also assist Registrant in its
discussion with the FDA in order to lead to the expeditious approval in the
United States of PNT as a first line therapy for the treatment of glaucoma.
Registrant and Ciba Vision are required by this agreement to negotiate in good
faith the exclusive license agreement during the option period. Registrant is
hopeful a license agreement will be executed with Ciba Vision in the first half
of 2001; however, at this time there is no assurance any definitve license
agreement with Ciba Vision will ever by executed by Registrant.
8
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES. On a short-term and long-term basis Registrant
requires only minimal capital to sustain its manufacturing of the patented
equipment, because of Registrant's current inventory levels. Because of the
Registrant's cash position at year-end and general and administrative cash
expenses totaling approximately $187,620, Registrant suffered from a liquidity
shortage during the first half of 2000. Registrant was required to borrow a
total of $225,407 through June 30, 2000 from its two officers, Richard and Gary
Smith. Unless substantial product sales are achieved in the near future,
Registrant will continue to experience a liquidity shortage. There can be no
assurance as to when Registrant's product will be approved for sale in the
United States by the FDA or when foreign sales will commence in a substantial
manner. Registrant will likely be forced to borrow additional funding from its
management throughout the remainder of 2000; however, there is no assurance
Registrant will be able to obtain any financing in the future.
On October 21, 2000 Registrant executed a one year option agreement with CIBA
Vision AG, a Swiss corporation doing business from Atlanta, Georgia ("Ciba
Vision"). This agreement permits Ciba Vision to obtain the exclusive worldwide
license to the patent rights and technology for Registrant's PNT product. Ciba
Vision will conduct a study, at its cost, of Registrant's PNT product in Europe
in accordance with the study protocol previously agreed to by the parties. It is
anticipated that Ciba Vision will submit the study for approval in Italy before
2000 year end and the study will extend for some 120 to 150 days. Registrant
will have access to all European clinical study results and it is anticipated
Dr. Leo Bores, Registrant's medical director, will participate in the initial
patient procedures in Europe. Ciba Vision will also assist Registrant in its
discussion with the FDA in order to lead to the expeditious approval in the
United States of PNT as a first line therapy for the treatment of glaucoma.
Registrant and Ciba Vision are required by this agreement to negotiate in good
faith the exclusive license agreement during the option period. Registrant is
hopefull a license agreement will be executed with Ciba Vision in the first half
of 2001; however, at this time there is no assurance any definitive license
agreement with Ciba Vision will ever be executed by Registrant
During the nine months ended September 30, 2000, Registrant received a total of
$125,000 as a non-refundable deposit toward the reduced exercise price of
Registrant's outstanding warrants. That option expired on September 30, 2000 and
the deposit has been retained by Registrant.
Registrant is hopeful it can acquire one or more assets or companies in 2000
which can provide Registrant with cashflow with which to fund its operations.
Registrant would attempt to finance such acquisitions with cash from the
exercise of outstanding warrants or its common stock. However, there is no
assurance that Registrant will be able to complete any acquisition in the
future. Additionally, compliance with state and federal securities laws may make
any attempted acquisitions time-consuming and expensive.
On a long-term basis, Registrant anticipates, without assurances, that the sale
of its product in the U.S. and internationally will provide sufficient liquidity
to the Registrant.
Through September 30, 2000 the Registrant received loans of approximately
$112,500 from each of G. Richard Smith and Gary R. Smith, the Registrant's
Chairman and President, respectively. These loans accrue annual interest at the
rate of 15%.
9
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
On October 2, 2000 a hearing was held in Irvine, California before an
arbitrator appointed by the American Arbitration Association on the contract
claim filed by Market Pathways Financial Relations, Inc., a former public
relations firm of Registrant ("Market Pathways"). On October 18, 2000 the
arbitrator ordered $23,643 of fees and costs be paid by Registrant to Market
Pathways, as well as 300,000 shares of Registrant's common stock. Registrant
believes the arbitrator made an egregious error in his ruling concerning the
common stock. Registrant has commenced an appeal to overturn this award;
however, there can be no assurance Registrant will be successful with this
appeal.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
27 - Financial Data Schedule
(b) REPORTS ON FORM 8-K
There were no Reports on Form 8-K filed during the quarter ended
September 30, 2000.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto authorized.
CORONADO INDUSTRIES, INC.
Date: November 13, 2000 By: /s/ Gary R. Smith
----------------- ----------------------------------------
Gary R. Smith, President (Chief
Executive Officer) and Treasurer
(Chief Financial and Accounting Officer)
11
