SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1998
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 No. 1-12293
NATURAL WAY TECHNOLOGIES, INC.
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(Exact name of small business issuer as specified in its charter)
Nevada 87-0394313
- --------------------------------- -------------------------------
(State or other jurisdiction of (IRS Employer Identification No)
incorporation or organization)
Rm. 2211-2215, Science and Technology Building, No. 1001
Shangbuzhong Road, Fution District Shenzhen, PRC
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(Address of principal executive offices)
011-07-55-369-9588
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(Issuer's telephone number)
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(Former name, former address and former fiscal year,
if changed since last report)
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 to such filing requirements for the past 90 days. Yes No X
As of February 1, 2000, 3,500,000 shares of Common Stock of the issuer were
outstanding.
<PAGE>
NATURAL WAY TECHNOLOGIES, INC.
INDEX
Page
Number
------
PART I - FINANCIAL INFORMATION
Item 1.Financial Statements
Consolidated Balance Sheets - March 31, 1998 and
December 31, 1997.........................................3
Consolidated Statements of Operations - For the three
month periods ended March 31, 1998 and 1997...............4
Consolidated Statements of Cash Flows - For the three
month periods ended March 31, 1998 and 1997...............5
Notes to Consolidated Financial Statements................6
Item 2.Management's Discussion and Analysis of Financial Condition
and Results of Operations.................................6
PART II - OTHER INFORMATION.................................................7
SIGNATURES..................................................................8
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NATURAL WAY TECHNOLOGIES, INC. AND SUBSIDIARIES
Balance Sheets
(Amounts expressed in United States $000)
March 31, December 31,
ASSETS 1998 1997
---------- ----------
Total assets - -
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Total liabilities - -
========== ==========
Common stock, par value US$0.001; issued and
outstanding - 3,500,000 shares as of December
31, 1997 and March 31, 1998
3 3
Additional paid in capital 5,929 5,929
Accumulated deficit (5,932) (5,932)
---------- ----------
Stockholders' equity 0 0
---------- ----------
Total liabilities and stockholders' equity - -
========== ==========
See accompanying notes to condensed consolidated financial statements
3
<PAGE>
NATURAL WAY TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Amounts expressed in United States $`000)
Three Months Ended March 31,
1998 1997 *
------ ------
Net Sales $ 0 $ 0
Cost of Goods Sold 0 0
----- -----
Gross Profit 0 0
----- -----
Selling, General and Administrative Expenses 0 0
Other Income, net 0 3
----- -----
Income Before Taxes 0 3
Provisions for Income Taxes 0 0
----- -----
Net income 0 3
===== =====
Net Income Per Common Share $ 0 $ 0
===== =====
Weighted Average Number of
Shares Outstanding 3,500,000 10,500,000
========= ==========
* Restated to give retroactive effect to the Termination Agreement
See accompanying notes to condensed consolidated financial statements
4
<PAGE>
NATURAL WAY TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Amounts Expressed in United States $`000)
Three Months Ended March 31,
1998 1997 *
------ -------
Cash flows from operating activities:
Net Income $ 3
Decrease in accrued expenses $ 0 $ (2)
------- --------
Net cash provided by (used in) operating activities 0 1
------- --------
Cash flows from investing activities:
Effect of translation adjustments - (3)
------- --------
Net cash provided by (used in) investing activities 0 (3)
------- --------
Cash flows from financing activities:
Diminution of cash due to disposal of subsidiary - (1,204)
------- --------
Net cash provided by (used in) financing activities 0 (1,204)
------- --------
Net increase (decrease) in cash 0 (1,206)
Cash as of beginning of period 0 1,206
------- --------
Cash as of end of period $ 0 $ 0
======= ========
* Restated to give retroactive effect to the Termination Agreement
See accompanying notes to condensed consolidated financial statements
5
<PAGE>
NATURAL WAY TECHNOLOGIES, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
March 31, 1998
1. Interim Financial Presentation
The interim financial statements are prepared pursuant to the requirements
for reporting on Form 10-QSB. The December 31, 1997 balance sheet data was
derived from audited financial statements and may not include all disclosures
required by generally accepted accounting principles. The interim financial
statements and notes thereto should be read in conjunction with the financial
statements and notes included in the Company's Form 10-KSB dated December 31,
1997. In the opinion of management, the interim financial statements reflect all
adjustments of a normal recurring nature necessary for a fair presentation of
the results for the interim periods presented.
2. Currency Presentation and Foreign Currency Translation
The Company's financial information is presented in U.S. dollars. The
translation of the financial statements of foreign subsidiaries into United
States dollars is performed for balance sheet accounts using closing exchange
rates in effect at the balance sheet date and for revenue and expense accounts
using an average exchange rate during each reporting period. The gains or losses
resulting from translation are included in shareholders' equity separately as
cumulative translation adjustments.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Material Changes in Results of Operations
The Company reported no revenue or expenses for either the three month
periods ended March 31, 1998 or 1997 but did have a foreign currency gain of
3,000 for the three months ended March 31, 1997. There were no expenses for
either the three months ended March 31, 1997 or 1998. The 1997 figures were
adjusted to give retroactive effect to the Termination Agreement which ended the
Company's affiliation with China Medical Development Ltd. retroactive to January
1, 1997.
Although the Company has no assets or operations, the Company believes that
it will be able to find a suitable candidate with which to merge or acquire.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
1. 27.1 Financial Data Schedule
b) Reports on Form 8-K
None
7
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
NATURAL WAY TECHNOLOGIES, INC.
Date: February 9, 2000 By: /s/ Yiu Yat On
------------------------------------
Yiu Yat On, President and Principal
Executive Officer
Date: February 9, 2000 By: /s/ Ma Ding Jie
------------------------------------
Ma Ding Jie, Treasurer and Principal
Financial Officer
8
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