SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998.
Commission File Number: 0-22520
AMTEC, INC.
Exact name of Registrant as specified in its charter
Delaware 52-1989122
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
599 Lexington Avenue, 44th Floor
New York, New York 10022
(Address of principal executive offices)
(212) 319-9160
(Registrant's telephone number)
Check 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
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 x No ____
Class Outstanding as of August 13, 1998
Common Stock, par value $.001 per share 27,200,410
Transitional Small Business Format (Check one): Yes No x .
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995.
Except for the historical information contained herein, the
matters discussed in this Quarterly Report are forward-looking statements
which involve risks and uncertainties, including but not limited to
economic, competitive, governmental, international and technological
factors affecting the Company's revenues, joint ventures, operations,
markets and prices, and other factors discussed in the Company's Annual
Report on Form 10-K, filed with the Securities and Exchange Commission on
June 30, 1998.
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
AMTEC INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
June 30, 1998 and March 31, 1998 June 30, 1998 March 31, 1998
------------- --------------
ASSETS:
Current assets
<S> <C> <C>
Cash $ 9,017,732 $ 10,442,334
Accounts Receivable 105,957 114,661
Prepaid expenses and other current assets 274,372 356,554
------------ ------------
Total current assets 9,398,061 10,913,549
------------ ------------
Property and equipment, net 876,267 897,265
Investment in GSM networks, net of amortization 28,997,493 28,461,810
Other assets 63,301 113,180
Deferred expenses 6,916
------------ ------------
TOTAL ASSETS $ 39,335,122 $ 40,392,720
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities
Accounts payable $ 408,239 $ 551,705
Accrued expenses 48,391 798,376
Loans payable - shareholders 0 1,452,553
Other current payables 10,568,017 10,234,872
------------ ------------
Total current liabilities 11,024,647 13,037,506
------------ ------------
Loans payable 20,028,602 20,028,602
Other payables 1,487,727 1,487,727
Minority interest 690,553 941,974
------------ ------------
TOTAL LIABILITIES 33,231,529 35,495,809
------------ ------------
STOCKHOLDERS' EQUITY
Preferred Stock: authorized 10,000,000 shares
Series E Convertible Preferred Stock:
$.001 par value; 68 and 73 shares issued and
outstanding in 1998 and 1997, respectively. 1 1
Common stock: $.001 par value, authorized
100,000,000 shares; 26,983,058 and 26,532,502
issued and outstanding at June 30, 1998 and
March 31, 1998, respectively. 26,983 26,533
Additional paid-in capital 36,132,620 33,148,529
Accumulated deficit (29,179,022) (27,394,590)
Cumulative foreign currency exchange loss 0 613
Non employee deferred option cost, net (1,148,438) (1,378,125)
Warrants 271,450 493,950
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 6,103,593 4,896,911
------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 39,335,122 $ 40,392,720
============ ============
</TABLE>
AMTEC INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS Quarter Ending Quarter Ending
June 30, 1998 June 30, 1997
------------- -------------
Revenues $0 $0
Expenses:
Selling, general and administrative 1,549,437 2,369,632
------------ ------------
Total expenses 1,549,437 2,369,632
------------ ------------
Loss from operations (1,549,437) (2,369,632)
------------ ------------
Other income (expense):
Amortization of stock options (229,688)
Other - net 145,760 (21,017)
------------ ------------
Total other income (expense) (83,928) (21,017)
------------ ------------
Loss before minority interest (1,633,365) (2,390,649)
Minority interest in loss of subsidiaries 364,098 798,422
------------ ------------
Net loss (1,269,267) (1,592,227)
Preferred stock dividend 402,421 108,000
------------ ------------
Loss applicable to common shares ($1,671,688) ($1,700,227)
============ ============
Basic loss per common share ($0.06) ($0.05)
============ ============
Weighted average common shares outstanding 30,382,177 31,306,876
============ ============
AMTEC INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS Quarter Ending Quarter Ending
June 30, 1998 June 30, 1998
------------- --------------
Cash flows from operating activities:
<S> <C> <C>
Net loss ($1,671,688) ($1,700,227)
Adjustments to reconcile net loss to net cash
used in operating activities:
Amortization of deferred option cost 229,687
Depreciation and amortization of GSM investment 547,342
Depreciation 29,122 36,586
Preferred Stock dividend 402,421
Issuance of common and options stock for
compenstation, directors' 273,747
(Increase) decrease in:
Accounts receivable 8,704 (359,501)
Prepaid expenses and other current assets 82,182 37,031
Deferred Expense 6,916
Other assets 49,879
Increase (decrease) in:
Accounts payable and accrued expenses 13,037 (616,811)
Accrued interest 30,333
Other current payables 333,145
Foreign currency loss (613)
Minority interest (251,421) (696,526)
0
------------ ------------
Net cash provided by (used in) operating activities (221,287) (2,995,368)
------------ ------------
Cash flows from investing activities:
Purchase of property and equipment (8,123) (24,842)
GSM construction costs and additional investments (1,083,025) (59,954)
------------ ------------
Net cash used in investing activities (1,091,148) (84,796)
------------ ------------
Cash flows from financing activities:
Borrowings 4,429,113
Change in Minority Interest Ownership (112,167)
Proceeds from sale of Series C convertible
preferred stock 2,500,000
------------ ------------
Net cash provided by financing activities (112,167) 6,929,113
----------- ----------
Net increase (decrease) in cash and cash equivalents (1,424,602) 3,848,949
Cash and cash equivalents, beginning of period 10,442,334 5,390,871
------------ ------------
Cash and cash equivalents, end of period $ 9,017,732 $ 9,239,820
============ ============
</TABLE>
AMTEC., INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
- ---------------------------------------------------------------------------
SUPPLEMENTAL CASH INFORMATION:
No interest or income taxes were paid during the first quarter of fiscal
1999 or 1998
NON CASH FINANCING ACTIVITIES:
In the first quarter, shareholder loans payable of $1,452,553 and related
accrued interest of $906,488 were credited to Additional paid-in capital.
In the first quarter, 5 shares of Series E Convertible Preferred Stock were
converted into 450,556 shares of common stock (inclusive of conversions of
preferred dividends).
In the first quarter, warrants cancelled and valued at $222,500 were
credited to Additional paid-in capital
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements at June 30, 1998 are
unaudited and reflect all adjustments which are, in the opinion of
management, necessary for a fair presentation of the financial
position and operating results for the interim period. All of the
adjustments are of a normal recurring nature. The condensed
consolidated financial statements should be read in conjunction
with the consolidated financial statements and notes thereto
together with management's discussion and analysis of financial
condition and results of operations, contained in the Annual Report
on Form 10-K filed by the Company on June 30, 1998 for the
Company's fiscal year ended March 31, 1998. The results of
operations for the three months ended June 30, 1998 are not
necessarily indicative of the results for the entire year ending
March 31, 1999.
Basis of Presentation
The accompanying financial statements have been prepared in
conformity with generally accepted accounting principles.
Realization of a major portion of the assets in the accompanying
balance sheet is dependent upon the Company's existing projects
developing profitable operations.
Included in the financial statements are the financial statements
of the Company for the three months ended June 30, 1998 and the
financial statements of its joint venture subsidiaries for the
three months ended March 31, 1998.
NOTE 2 - PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the Company, its 70%
owned subsidiary Hebei United Telecommunications Equipment Co.,
Ltd. ("Hebei Equipment") (a 15 year life Sino-foreign joint
venture) and subsidiary, and the Company's wholly owned subsidiary,
ITV Communications, Inc. All significant intercompany accounts and
transactions are eliminated in consolidation. Hebei Equipment in
turn owns 51% of Hebei United Telecommunications Engineering
Company, Ltd. ("Hebei Engineering").
NOTE 3 - ASSETS
The consolidated balance sheet includes total current assets of
approximately $9.4 million and total assets of approximately $39.3
million. Of these amounts, approximately $5 million of cash is
reserved for parent company operations as well as additional joint
venture investments, as may be required. The Company's current cash
position is sufficient to support operations of the Company through
January 1, 2000.
The Company also reported through consolidation approximately $29
million of assets, net of amortization, associated with the
construction of the Hebei GSM Network.
NOTE 4 - LIABILITIES
The consolidated balance sheet includes total liabilities of
approximately $33.2 million. Of this amount, approximately $32
million are liabilities of AmTec's subsidiaries, which are
guaranteed by NTTI with no recourse to AmTec. AmTec's direct
liabilities amount to approximately $0.5 million. The decrease in
consolidated liabilities primarily relates to the elimination of
shareholder loans and related accrued expenses of ITV, Inc., a
wholly-owned subsidiary.
NOTE 5 - CHANGES TO EQUITY
The increase in Stockholders' Equity of approximately $1.2 million
for the quarter ended June 30, 1998 was primarily the result of an
increase in Additional paid-in capital of approximately $3 million
due to the elimination of approximately $2.4 million of
shareholders' loans and related accrued interest, amortization of
the discount on the Series E Preferred Stock of approximately $0.4
milion and the cancellation of 300,000 warrants valued at $0.2
million. These increases were offset by a loss for the quarter of
approximately $1.7 million and an increase in Accumulated deficit
of approximately $0.1 million related to AmTec's increase in the
ownership of its Sino-Foreign Joint Venture from 60.8% to 70%.
Also, during the quarter the Company issued 450,556 shares of its
Common Stock upon the conversion of 5 shares of its Series E
Convertible Preferred Stock.
NOTE 6 - SUBSEQUENT EVENTS
The Company cancelled a Common Stock Investment Agreement, as
permitted by the Agreement, with Promethean Investment Group. It is
the Company's intention to cancel the 1,019,465 shares held in
escrow that were designated for issuance under terms of the
agreement.
On August 6, 1998 the Company signed an agreement with UIH
Asia/Pacific Communications, Inc ("UAP"), a wholly-owned subsidiary
of United International Holdings, Inc. ("UIH"), under which AmTec
will issue to UAP $12 million of preferred stock convertible into
9.6 million AmTec shares at a price of $1.25 per share, subject to
certain anti-dilution provisions, in exchange for 100% of the
common stock of UIH Hunan, Inc. ("UIHH"). UIHH holds a 49% interest
in a Sino-foreign joint venture with the Broadcasting Bureau of
Hunan, the monopoly cable television operator in Hunan Province,
People's Republic of China. The agreement, which is subject to
satisfactory completion of due diligence, approval of AmTec's
shareholders and approvals of appropriate regulatory authorities in
China, provides UAP with an option to increase its holdings in
AmTec to 25% of AmTec's fully diluted common shares and with rights
of co-investment with AmTec in China.
On August 9, 1998 a fourth GSM network began operations in the city
of Baoding, which has a metropolitan area population of 9.54
million people.
NOTE 7 - NEW ACCOUNTING PRONOUNCEMENTS
Comprehensive Income - In June 1997, the Financial Accounting
Standards Board ("FASB") issued SFAS No. 130, "Reporting
Comprehensive Income". This statement is effective for financial
statements issued for periods beginning after December 31, 1997.
Management has evaluated the effect on its financial reporting of
the adoption of this statement and has found the majority of
required disclosures not to be applicable and the remainder not to
be significant.
Segments of an Enterprise and Related Information - In June 1997,
the FASB issued SFAS No. 131, "Disclosure about Segments of an
Enterprise and Related Information." This statement is effective
for fiscal years beginning after December 15, 1997. SFAS No. 131
requires the reporting of profit and loss, specific revenue and
expense items, and assets for reportable segments. It also requires
the reconciliation of total segment revenues, total segment profit
or loss, total segment assets, and other amounts disclosed for
segments, in each case to the corresponding amounts in the general
purpose financial statements. Management has evaluated the effect
on its financial reporting of the adoption of this statement and
has found the majority of required disclosures not to be applicable
and the remainder not to be applicable.
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATION
AmTec, Inc. ("AmTec" or "the Company") is a telecommunications company with
operations in the People's Republic of China ( the "PRC" or "China"). The
Company has focused its operations on China because of China's large and
rapidly growing need for telecommunications services, China's requirement
for foreign capital and technology to meet that need, and the opportunity
to obtain cash flow sharing and technical services agreements with
operators who hold exclusive or semi-exclusive communications licenses. The
Company has established majority ownership in joint ventures with Chinese
and other partners to provide financing, network construction and
operational consulting services to licensed China network operators. The
Company's current operations primarily are focused on a series of cellular
telephone networks in the northeastern province of Hebei, which has 11
major cities and a population of approximately 65 million people. In
addition, the Company has interests in other projects and networks in
various stages of development, including a multimedia network for cable
television programming transmission. Developing existing network interests
and obtaining additional interests in communications networks in China in
the future are key components of the Company's business strategy.
CHINA TELECOMMUNICATIONS MARKET
Through the Company's interest in cellular telephone networks in Hebei
Province and relationships that the Company has developed with key policy
makers and decision makers in Chinese governmental agencies, AmTec has
focused its business to capitalize on the growth of the Chinese
telecommunications market, which is among the world's largest, fastest
growing, and most under-serviced telecommunications markets. Due to the
importance of a well-developed communications infrastructure to China's
continuing economic development, the PRC government has targeted
communications network development as a high priority in the country's
economic reform program. It is expected that before the year 2000, China
will surpass the United States as both the largest cellular telephone and
cable television markets in the world.
Since the establishment of China United Telecommunications, Incorporated
("UNICOM") in 1994, China has had only two licensed competitors for
cellular, fixed wire and long-distance telephony. The cable television
market in China is a monopoly run by the Ministry of Information Industry,
which also regulates telecommunications in China. While other
communications markets in China have experienced greater competition, most
notably paging and value-added services, communications licenses have
generally been limited to a small number of competitors relative to markets
in the United States. The Company believes that both the overall market
size and the environment of limited competition are attractive aspects of
the Chinese communications market.
Although Chinese regulations currently prohibit direct foreign ownership or
operation of communications networks, the regulatory environment has shown
recent indications of continuing a policy of partial deregulation. And
while there can be no assurance that this policy of partial deregulation
will continue, the Company believes that it is well-positioned to benefit
from deregulation permitting direct foreign ownership and operation of
communications networks, if such deregulation were to occur in the future.
JOINT VENTURES IN CHINA
AmTec holds a 70% interest in Hebei United Telecommunications Equipment
Company Limited ("Hebei Equipment"), a Sino-foreign joint venture with a
wholly-owned subsidiary of the Electronics Industry Department of Hebei
Province. Hebei Equipment, in turn, holds a 51% interest in Hebei United
Telecommunications Engineering Company Limited ("Hebei Engineering"), a
joint venture with NTT International ("NTTI") and Itochu Corp. Both Hebei
Equipment and Hebei Engineering are organized as Sino-foreign equity joint
ventures under the laws of China and are headquartered in Shijiazhuang, the
capital of Hebei Province.
CELLULAR TELEPHONE NETWORKS
Currently, legal restrictions in China prohibit foreign participation in
the operation and ownership of communications networks. Therefore, the
Company has established majority ownership in joint ventures with Chinese
and other partners to provide financing, network construction and
operational consulting services to licensed Chinese network operators.
Substantially all of the Company's revenues are derived from contractual
arrangements for the sharing of cash flow generated from network operations
rather than from ownership or operation of the networks. Until regulations
in China change to permit direct foreign ownership and operations of
communications networks, all future revenues of the Company will continue
to be derived from these contractual arrangements.
Through Hebei Engineering, AmTec entered into an agreement (the "Unicom
Agreement") on February 9, 1996 with Unicom to (i) finance and assist
Unicom in the construction of cellular networks (the "GSM Networks" or "GSM
Project") in the ten largest cities in Hebei Province and (ii) provide
consulting and management support services to Unicom in its operation of
the GSM Networks in the 10 largest cities of Hebei Province. This GSM
Project will have a capacity of up to 70,000 subscribers. Hebei Engineering
is entitled to 78% of the distributable cash flow (defined as activation
charges plus depreciation plus net income) from the GSM Networks for a
15-year period commencing February 9, 1996.
The construction and operational plan for the GSM Networks consists of a
"roll-out" across Hebei Province on a city-by-city basis. As of August 13,
1998 four cities were providing commercial service with approximately
13,000 subscribers; construction in three additional cities was
substantially completed, with commercial launch dates scheduled during 1998
for these additional three cities.
As of June 30, 1998, construction of the GSM Networks had been financed by
Hebei Engineering with $3 million of equity capital, approximately $11
million of vendor financing guaranteed by NTTI, and a $20 million Term Loan
facility from Bank of Tokyo Mitsubishi also guaranteed by NTTI and Itochu.
Of the $3 million of equity raised by Hebei Engineering, $1.17 million was
contributed by Hebei Equipment.
Achievement of the Company's business objectives is dependent upon Unicom's
operation of the GSM Networks, among other factors. The implementation of
the GSM Networks involves systems design, site procurement, construction,
electronics installation, initial systems optimization and receipt of
necessary permits and business licenses prior to commencing commercial
service. Each stage can involve various risks and contingencies, the
outcome of which cannot be predicted with a high degree of assurance as
interconnection of the GSM Networks with the public switched telephone
network is sometimes difficult and time consuming, and the successful
completion of all planned sites of the GSM Networks will be dependent, to a
significant degree, upon the ability of the parties to lease or acquire
sites for the location of their base station equipment. While no major
difficulties have been encountered to date in procuring such sites, future
site acquisition can not be assured.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 1998 AS COMPARED TO
THE THREE MONTHS ENDED JUNE 30, 1997.
The Company did not recognize revenues from the GSM operations during the
quarters ended June 30, 1998 and 1997 because it has adopted a policy of
recognizing revenues only upon the receipt of cash from UNICOM. As the
agreement with UNICOM calls for annual cash distributions, the Company does
not expect to recognize revenues from its GSM networks until the third
fiscal quarter. At June 30, 1998 there were three networks operating with a
subscriber base of approximately 11,000.
The Company did not recognize any revenues from the Hebei Multimedia
Network which is still in the early stages of development.
Selling, general and administrative expenses decreased from approximately
$2.4 million during the three months ended June 30, 1997 to approximately
$1.6 million during the three months ended June 30, 1998. The decrease
primarily related to a reduction in the startup costs of the joint ventures
of approximately $1.5 million offset primarily by increases in the
amortization of the investment in GSM network of approximately $0.5 million
and salaries and fringe benefits of approximately $0.2 million related to
the hiring of a Chief Financial Officer and General Counsel in June, 1997.
The Company reported assets of approximately $39.3 million at June 30,
1998, a decrease of 2.6% or $1.1 million from March 31, 1998. This decrease
primarily related to the amortization of the GSM network of approximately
$0.5 million and the funding of current operations of approximately $0.6
million using cash and other accounts payable.
The consolidated balance sheet of the Company includes total liabilities of
approximately $33.2 million. Of this amount, approximately $32.5 million
are liabilities of AmTec's Sino-foreign joint venture subsidiaries, with no
recourse to AmTec. AmTec's direct liabilities amount to approximately $0.5
million. The decrease in consolidated liabilities primarily relates to the
elimination of shareholder loans and related accrued expenses.
The Company's loss before dividends decreased from $1.6 million during the
three months ended June 30, 1997 to $1.3 million during the three months
ended June 30, 1998. The decrease in net loss primarily relates to a
decrease in general and administrative expenses, partially offset by $0.2
million amortization of Non-employee deferred option costs .
Stockholders' Equity increased by $1.2 million from March 31, 1998 to June
30, 1998, as a result of an increase in Additional paid-in capital of
approximately $3 million due to the elimination of approximately $2.4
million of shareholders' loans and related accrued interest, amortization
of the discount on the Series E Preferred Stock of approximately $0.4
milion and the cancellation of 300,000 warrants valued at $0.2 million.
These increases were offset by a loss for the quarter of approximately $1.7
million and an increase in Accumulated deficit of approximately $0.1
million related to AmTec's increase in the ownership of its Sino-Foreign
Joint Venture from 60.8% to 70%.
LIQUIDITY AND CAPITAL RESOURCES
While the Company reported $216,348 of revenue during the year ended March
31, 1998, the Company did not report revenues for the quarter ended June
30, 1998 because it reports revenues from its investment in the GSM network
as received, which in the normal course of business for the Company's joint
venture, occurs once per year, in the Company's third fiscal quarter. As a
result, the Company generated an operating loss of $1.6 million and a loss
applicable to common shares of $1.7 million during this period. While the
Company expects to achieve profitable operations within several years,
there can be no assurances that the Company will achieve this goal. As a
result, the Company has financed its current activities primarily through
private equity placements.
During the three months ended June 30, 1998, the Company's cash decreased
by approximately $1.4 million, primarily due to additional investment in
the GSM network of approximately $1.1 million and to cash used to fund
current operations of approximately $0.3 million. The Company's direct cash
position is expected to be sufficient to support operations of the Company
though January 1, 2000.
EQUITY ISSUANCES
The Company issued 450,556 shares of its Common Stock during its first
quarter upon conversion of 5 shares of the Company's Series E Convertible
Preferred Shares (the "Series E Shares") by certain holders of the Series E
Shares.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not applicable.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
Not applicable.
Item 2. Changes in Securities
Not applicable.
Item 3. Default Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of stockholders during the
Quarter ended June 30, 1998.
Item 5. Other Information
Agreement with UIH Asia/Pacific Communications, Inc.
On August 6, 1998 the Company signed an agreement with UIH
Asia/Pacific Communications, Inc ("UAP"), a wholly-owned subsidiary
of United International Holdings, Inc. ("UIH"), under which AmTec
will issue to UAP $12 million of preferred stock convertible into
9.6 million AmTec common shares at a price of $1.25 per share,
subject to certain anti-dilution provisions in exchange for 100% of
the common stock of UIH Hunan, Inc. UIH intends, through its
ownership in AmTec, to make AmTec its key operation in the China
telecommunications market. The transaction, which is subject to
satisfactory completion of due diligence, approval of AmTec's
shareholders, approvals of appropriate regulatory authorities in
China and execution of a definitive agreement, will result in UAP
becoming AmTec's largest shareholder and hold the right to nominate 2
members to AmTec's Board of Directors. In addition, UAP will receive
co-investment rights with AmTec in China and an option to purchase
additional AmTec common stock at $3.00 per share to increase its stake
in AmTec to 25 % on a fully diluted basis.
UIHH holds a 49% interest in a Sino-foreign joint venture with the
Broadcasting Bureau of Hunan, the monopoly cable television
operator in Hunan Province, People's Republic of China. The
operator is currently delivering video services to 13 cities and
over 255,000 subscribers. The joint venture currently receives fees
for transmission services and participates in the network's
advertising revenue. It is currently profitable and will add
revenues to AmTec in the first quarter after closing, which is
anticipated to take place in the third quarter.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
27. Financial Data Schedule
(b) Reports on Form 8-K.
The Company filed no reports on Form 8-K during the Quarter
ended June 30, 1998.
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.
Dated: August 13, 1998 AmTec, Inc.
By: /s/ Joseph R. Wright, Jr.
----------------------------
Joseph R. Wright, Jr.
Chief Executive Officer
By: /s/ Albert G. Pastino
----------------------------
Albert G. Pastino
Principal Financial and
Accounting Officer
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.
Dated: August 13, 1998 AmTec, Inc.
By:_________________________
Joseph R. Wright, Jr.
Chief Executive Officer
By:_________________________
Albert G. Pastino
Principal Financial and
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM AMTEC, INC.'S FORM 10Q ENDING JUNE 30, 1998.
IT IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 9,017,732
<SECURITIES> 0
<RECEIVABLES> 105,957
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,398,061
<PP&E> 876,266
<DEPRECIATION> 29,122
<TOTAL-ASSETS> 39,335,121
<CURRENT-LIABILITIES> 11,024,646
<BONDS> 0
0
1
<COMMON> 26,983
<OTHER-SE> 6,076,610
<TOTAL-LIABILITY-AND-EQUITY> 39,335,121
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 1,549,437
<OTHER-EXPENSES> 83,928
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,671,688)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,671,688)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,671,688)
<EPS-PRIMARY> (0.06)
<EPS-DILUTED> 0.00
</TABLE>
