SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2000
COMMISSION FILE NUMBER 0-25632
GUINNESS TELLI*PHONE CORPORATION
(Exact name of Registrant as specified in its charter)
Nevada 68-0310550
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
655 Redwood Highway #111, Mill Valley, CA 94941
Registrant's Telephone Number, including area code (415) 389-
9442
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 twelve months, and (2) has
been subject to such filing requirements for the past 90 days.
YES X NO
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the close of the period covered by this
report: 26,495,320 shares.
<PAGE>2
GUINNESS TELLI*PHONE CORPORATION
INDEX
PART I. - Financial Information Page No.
Item 1. Financial Statements
Consolidated Balance Sheet
March 31, 2000 and December 31, 1999 3
Consolidated Statement of Operations -
Three Months Ended March 31, 2000 and 1999
and Cumulative During Development Stage 4
Consolidated Statement of Cash Flows -
Three Months Ended March 31, 2000 and 1999
and Cumulative During Development Stage 5
Note to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Part II. - None
Signatures 8
<PAGE>3
GUINNESS TELLI*PHONE CORPORATION AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
March 31,
2000 December 31,
(Unaudited) 1999
----------- ------------
<S> <C> <C>
ASSETS
CURRENT:
Cash $ 96,786 $ 233,689
Prepaid expenses and other
current assets 20,653
------------ -----------
TOTAL CURRENT ASSETS $ 117,439 233,689
------------ -----------
PROPERTY AND EQUIPMENT, at cost:
Equipment 132,490 118,364
Office furniture 29,157 13,824
Software 23,112 4,850
Leasehold improvements 8,236
------------ ----------
Totals 192,995 137,038
Less accumulated depreciation 69,463 63,970
------------ -----------
NET PROPERTY AND EQUIPMENT 123,532 73,068
------------ ----------
OTHER:
Lease deposits 6,709 6,709
----------- -----------
$ 247,680 $ 313,466
=========== ===========
LIABILITIES
CURRENT:
Notes payable $ 435,000 $ 435,000
Stockholder advances 27,029
Accounts payable 62,650 42,953
Deferred royalty income 125,000 125,000
Accrued interest 767,329 738,004
Accrued payroll taxes 144,400 144,400
Accrued salaries and wages 35,000
------------ -----------
TOTAL LIABILITIES 1,533,979 1,547,386
------------ -----------
STOCKHOLDERS' DEFICIT
COMMON STOCK, $.001 par value;
shares authorized 100,000,000;
issued and outstanding
26,495,320 and 26,294,610 shares 26,495 26,295
Additional paid-in capital 11,148,048 10,882,148
Deficit accumulated during
development stage (12,460,842) (12,142,363)
------------ -----------
TOTAL STOCKHOLDERS' DEFICIT (1,286,299) (1,233,920)
------------ -----------
$ 247,680 $ 313,466
============ ===========
</TABLE>
See accompanying notes.
<PAGE>4
GUINNESS TELLI*PHONE CORPORATION AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Cumulative During Three Months Ended
Development March 31,
Stage 2000 1999
<S> <C> <C> <C>
OPERATING EXPENSES:
Research and development $ 4,551,152
Interest expense 4,492,048 $ 29,325 $ 26,658
Officers' salaries 1,032,965 58,525 9,500
Rent 422,267 15,427 5,934
Other administrative expenses 2,478,075 215,202 98,853
------------ ---------- ----------
LOSS FROM OPERATIONS (12,976,507) (318,479) (140,945)
WRITE-OFF OF EXPIRED
LIABILITIES 515,665
------------ --------- ---------
NET LOSS $(12,460,842) $ (318,479) $ (140,945)
============ ========== ==========
LOSS PER SHARE $ (.01) $ (.01)
========== ==========
WEIGHTED AVERAGE
SHARES OUTSTANDING 26,394,965 17,998,244
</TABLE>
See accompanying notes.
<PAGE>5
GUINNESS TELLI*PHONE CORPORATION AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Cumulative
During Three Months Ended
Development March 31,
Stage 2000 1999
----------- ----- ------
<S> <C> <C> <C>
CASH USED IN OPERATIONS:
Net loss $(12,344,478) $(318,479) $ (140,945)
Adjustments to reconcile net loss
to cash used in operations:
Depreciation 69,463 5,493 2,649
Decrease (increase) in prepaid expenses (20,653) (20,653) 25,000
Increase (decrease) in accounts payable 239,427 19,297 (20,196)
Increase in accrued interest 826,729 29,325 26,658
Stock issues for consulting services 398,300 4,500
Deferred royalty income 125,000
Increase in accrued liabilities from
prior period adjustment (116,364)
Accrued payroll (35,000) (35,000) (34,053)
------------ --------- ----------
(10,857,576) (320,017) (136,387)
------------ --------- ----------
CASH USED IN INVESTING ACTIVITIES:
Deposits (6,709)
Additions to fixed assets (180,995) (55,957) (1,600)
------------ --------- ---------
(187,704) (55,957) (1,600)
------------ --------- ---------
CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES:
Contributed capital 7,543,938
Sale of stock 2,859,725 266,100
Notes payable 435,000
Stockholder advances 146,223 (27,029) 32,827
Collection of stock subscriptions
Receivable 157,180
----------- --------- --------
11,142,066 239,071 32,827
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS 96,786 (136,903) (105,160)
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 233,689 105,913
----------- --------- --------
CASH AND CASH EQUIVALENTS,
END OF YEAR $ 96,786 $ 96,786 $ 753
============ ========== ========
</TABLE>
See accompanying notes.
<PAGE>6
GUINNESS TELLI*PHONE CORPORATION AND SUBSIDIARY
(A DEVELOPMENT COMPANY)
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. In the opinion of the management of Guinness Telli*Phone
Corporation and Subsidiary, the unaudited financial statements of
Guinness Telli*Phone Corporation and Subsidiary for the interim
periods shown include all adjustments, consisting only of normal
recurring accruals, necessary for a fair presentation of the financial
position at March 31, 2000, and the results of operations and cash
flows for the periods then ended. The results of operations for the
interim periods shown may not be indicative of the results that may be
expected for the fiscal year. These statements should be read in
conjunction with the financial statements and notes thereto included
in the Company's Form 10-K for the year December 31, 1999.
<PAGE>7
GUINNESS TELLI*PHONE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MARCH 31, 2000
Liquidity and Capital Resources:
Since filing its annual report on Form 10-K for the year ended
December 31, 1999, the Company has obtained a $30 million equity line
from Swartz Private Equity LLC, subject to registration with the SEC
and governed by a percentage of the Company's trading volume.
<PAGE>8
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 hereunto duly authorized.
GUINNESS TELLI*PHONE CORPORATION
By: /s/ Lawrence A. Guinness
------------------------
Lawrence A. Guinness, President
Date: May 14, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 96,786
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 117,439
<PP&E> 192,995
<DEPRECIATION> 69,463
<TOTAL-ASSETS> 247,680
<CURRENT-LIABILITIES> 1,533,979
<BONDS> 0
<COMMON> 26,495
0
0
<OTHER-SE> (1,312,794)
<TOTAL-LIABILITY-AND-EQUITY> 247,680
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 12,860,143
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (12,344,478)
<INCOME-TAX> 0
<INCOME-CONTINUING> (12,344,478)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (12,344,478)
<EPS-BASIC> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
