FORM 10-QSB - QUARTERLY OR TRANSITIONAL REPORT UNDER
SECTION 13 OR 15 (d) OF
October 31, 2000 and 1999
Quarterly or Transitional Report
U.S. Securities and Exchange Commission
Washington, D.C. 20549
(Mark One)
[XX] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For quarterly period ended October 31, 2000
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 0-25024
TITAN TECHNOLOGIES, INC.
(Exact name of small business issuer as
specified in its charter)
NEW MEXICO 85-03388759
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
3206 Candelaria Road NE, Albuquerque, NM 87107
(Address of principal executive offices)
(505) 884-0272
(Issuer's telephone number)
N/A
(Former name, former address, and former
three-months, 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 Securities 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 X No
The number of shares of the registrant's common stock outstanding
as of December 6, 2000 was: No Par Value Common 33,856,560
Transitional Small Business Format: Yes No X
PART I. FINANCIAL INFORMATION
Titan Technologies, Inc.
BALANCE SHEET
October 31, 2000
UNAUDITED
ASSETS
Current Assets
Cash ................................................. $ 87,000
Property and Equipment, at cost
Furniture and fixtures ............................... 5,407
Machinery ............................................ 7,706
-----------
13,113
Less accumulated depreciation ............................... 9,877
-----------
Net property and equipment ........................... 3,236
Other Assets
Accounts receivable - stockholder .................... 609
-----------
$ 90,845
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable ..................................... $ 2,111
Other accrued liabilities ............................ 3,159
-----------
Total Current Liabilities ............................ 5,270
Stockholders' Equity
Common stock - no par value; authorized,
50,000,000 shares; issued and outstanding,
33,856,560 shares .................................... 2,363,432
Accumulated deficit .................................. (2,277,857)
-----------
85,575
-----------
$ 90,845
===========
The accompanying notes are an integral part of these statements.
Titan Technologies, Inc.
STATEMENTS OF OPERATIONS
For The Three Months Ended October 31
UNAUDITED
2000 1999
------------ ------------
REVENUES
Other income ............................ $ 9,040 $ 9,970
------------ ------------
COSTS AND EXPENSES
General and administrative .............. 57,603 55,596
Outside services ........................ 37,521 150
Depreciation ............................ 279 441
------------ ------------
95,403 56,187
Loss before income taxes ................ (86,363) (46,217)
Provision for income taxes .............. -- --
------------ ------------
Net Loss ................................ $ (86,363) $ (46,217)
============ ============
Weighted average common shares
outstanding, basic and diluted (Note 3) . 33,797,116 28,555,964
============ ============
Basic and diluted (loss) per common share $ (0.00) $ (0.00)
============ ============
The accompanying notes are an integral part of these statements.
Titan Technologies, Inc.
STATEMENTS OF CASH FLOWS
October 31, 2000 and 1999
UNAUDITED
2000 1999
--------- ---------
Cash flows from operating activities
Cash received from subcontractor ............. $ 9,040 $ 9,970
Cash paid for suppliers and employees ........ (94,720) (54,033)
--------- ---------
Net cash used in operating activities ........ (85,680) (44,063)
Cash flows from financing activities
Proceeds from sale of common stock ........... 15,500 107,400
--------- ---------
Net (decrease) increase in cash .............. (70,180) 63,337
Cash at beginning of year .................... 157,180 6,881
--------- ---------
Cash at end of period ........................ $ 87,000 $ 70,218
========= =========
Reconciliation of Net Loss to Net Cash Used
in Operating Activities
Net Loss ............................................. $ (86,363) $ (46,217)
Adjustments to reconcile net loss to net cash
used in Operating Activities:
Depreciation ................................. 279 441
Changes in assets and liabilities
Decrease in prepaid expenses ............... 1,025 5,555
(Decrease) increase in accounts payable .... (724) 5,615
Increase (decrease) in accrued liabilities . 103 (1,823)
Decrease in stockholders payables .......... -- (7,634)
--------- ---------
Net cash used in operating activities ................ $ (85,680) $ (44,063)
========= =========
The accompanying notes are an integral part of these statements.
Titan Technologies, Inc.
NOTES TO FINANCIAL STATEMENTS
October 31, 2000 and 1999
1) BASIS OF PRESENTATION
The balance sheet at October 31, 2000 and the statements of operations for the
three months ended October 31, 2000, and 1999 and statements of operations for
the three months ended October 31, 2000 and 1999 and statements of cash flows
for the three months ended October 31, 2000 and 1999 have been prepared without
audit. In the opinion of management, all adjustments including normal recurring
adjustments necessary to present fairly the financial position, results of
operations and cash flows, have been made. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted. It
is suggested that these financial statements be read in conjunction with the
Company's audited financial statements at July 31, 2000. The results of
operations for the three months ended October 31, 2000 are not necessarily
indicative of operating results for the full year.
2) ISSUANCE OF COMMON STOCK
During the three months ended October 31, 1999 the Company sold 1,080,000 shares
of common stock for which it received $107,400.
During the three months ended October 31, 2000 the Company sold 119,999 shares
of common stock for which it received $15,500.
3) NET LOSS PER COMMON SHARE
Net loss per common share is calculated using the weighted average number of
shares outstanding during the period. Basic and diluted earnings per share are
the same because the inclusion of options to purchase additional shares of stock
are antidilutive.
4) MANAGEMENT'S PLANS FOR OPERATIONS
The company has experienced significant losses from operations in recent years
and the Company has used rather than provided cash in its operations.
The Company's ability to continue as a going concern is contingent upon its
ability to maintain adequate financing or obtain capital from other sources and
to attain profitable operations. The financial statements do not include any
adjustments relating to the recoverability and classification of recorded asset
amounts that might be necessary should the Company be unable to continue in
existence.
Management has taken the following steps to address the financial and operating
condition of the Company which it believes will be sufficient to provide the
Company with the ability to continue in existence.
Improve marketing efforts for recycling plants and bring plastics recycling
technology to a marketable product.
Reduce operating and administrative expenses, and issue stock and notes payable
where possible for payment of expenses.
Defer payment of officer salaries if required.
Management believes that these steps will allow the Registrant to continue as a
going concern in the immediate future, together with results of on going efforts
to raise working capital through licensing of agreements, joint ventures or
sales of additional equity securities in private placements. However, there are
significant risks associated with the Registrants business development and there
can be no assurance that its efforts will be successful or that it will be able
to raise sufficient working capital to survive as a going concern.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Results of Operations
During the three months ended October 31, 2000, the Company had no licensing
revenue. No plants are scheduled for construction at October 31, 2000.
Marketing agreements with current marketers for North America and Asian rights
require, among other things, the marketers to sell certain numbers of plants per
year, and require payment to the Company, by the owner of the plant of a 7.5%
royalty on the net sales of by-products. Unless other arrangements are
negotiated, the plants will be constructed by the Company and sold to the
marketer at cost of the plant, plus a one-third markup on plant and installation
cost.
As a result of activities by management general and administrative expenses
increased $2,007 to $57,603 and outside services increased $37,371 to $37,521
for the three months ended October 31, 2000 compared to the three months ended
October 31, 1999.
Financial Condition
The Company's liquidity decreased n the three months ended October 31, 2000 as
cash decreased by $70,180 since July 31, 2000. Operations used $85,680 compared
to the same period of the prior year in which operations used $44,063.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
At the date of this report there are no known legal proceedings pending or
judgments against the Registrant or against any director or officer of the
Registrant in their capacity as such.
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS IN SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) There are no exhibits required by Item 601 of Regulation S-K
(b) Reports on Form 8-K. State whether any reports on Form 8-K have been filed
during the quarter for which this report is filed, listing the items
reported, any financial statements filed, and the dates of any reports.
NONE
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant has
caused" "this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
TITAN TECHNOLOGIES, INC.
December 6, 2000 Ronald L. Wilder
--------------------------------------------
Ronald L. Wilder, President, Chief Executive
Officer, Chief Financial Officer and Chief
Accounting Officer.
