<PAGE>
UNITED STATES
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 QUARTERLY PERIOD ENDED JUNE 30, 1999
[ ] 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 0-25658
Kalan Gold Corporation
(Exact name of registrant as specified in its charter)
COLORADO 84-1357927
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
No. 60A, Jalan 19/3, 46300 Petaling Jaya, Selangor, Malaysia
(Address of principal executive offices)
011 603 756-5082
(Registrant's telephone number, including area code)
Tower II, Suite 100, 12835 E. Arapahoe Road, Englewood, Colorado 80112
(Former name, former address and former fiscal
year, if changed since last report)
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
----- -----
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.
Common stock, $.00001 par value 94,990,999
Class Number of shares outstanding
at August 23, 1999
<PAGE>
FORM 10-QSB
2ND QUARTER
INDEX
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS *
Condensed consolidated balance sheet as at June 30, 1999 (Unaudited)......................... 3
Condensed consolidated statement of operations for the three months ended
June 30, 1999 and June 30, 1998 and the six month periods ended June 30, 1999
and June 30, 1998 (Unaudited) ................................................................ 4
Condensed consolidated statements of cash flows for the six months ended
June 30, 1999 and June 30, 1998 (Unaudited) .................................................. 5
Notes to condensed consolidated financial statements (Unaudited) ............................. 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS................................................. 7
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS................................................................... 11
ITEM 2. CHANGES IN SECURITIES............................................................... 12
ITEM 3. DEFAULTS UPON SENIOR SECURITIES..................................................... 12
ITEM 4. SUBMISSION OF MATTERS TO A VOTE..................................................... 12
ITEM 5. OTHER INFORMATION................................................................... 12
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.................................................... 12
SIGNATURES.................................................................................... 13
</TABLE>
* The accompanying financial statements are not covered by an independent
Certified Public Accountant's report.
2
<PAGE>
PART I. ITEM. 1. FINANCIAL INFORMATION
KALAN GOLD CORPORATION
Condensed Consolidated Balance Sheet
(Unaudited)
<TABLE>
<CAPTION>
June 30, 1999
-------------------
<S> <C>
ASSETS $
CURRENT ASSETS
Cash and cash equivalents 3,987
Accounts receivable, net 676,289
Other accounts receivable 2,303,390
Inventories 6,750
-------------------
Total current assets 2,990,416
FIXED ASSETS
Office and telecommunication equipment, net 552,626
INTANGIBLE ASSET
Goodwill on consolidation 545,834
-------------------
Total Assets 4,088,876
-------------------
-------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable 10,947
Other accounts payable 312,422
Accrued Interest/related party 34,578
Due to Directors/related party 553,269
Current portion of hire purchase payable 7,598
-------------------
Total current liabilities 918,814
LONG TERM LIABILITIES
Hire purchase payable 124,453
-------------------
Total liabilities 1,043,267
-------------------
Minority Interest 656,304
SHAREHOLDERS' EQUITY
Preferred stock, $0.10 par value, 1,000,000 shares authorized, -
-0- shares issued and outstanding
Common stock, $.00001 par value, 100,000,000 shares
authorized, 94,990,999 shares issued and outstanding 2,319,587
Retained earnings 37,680
-------------------
Total shareholders' equity 2,357,267
Cumulative translation adjustment 32,038
-------------------
Total liabilities and shareholders' equity $ 4,088,876
-------------------
-------------------
</TABLE>
See accompanying notes to condensed consolidated financial statements
3
<PAGE>
KALAN GOLD CORPORATION
Condensed Consolidated Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998
--------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
$ $ $ $
REVENUE :
Net Sales 454,670 14,389 702,756 183,422
Gain on disposal of assets - 10,527 41,522 114,369
--------------- -------------- --------------- ---------------
Total revenue 454,670 24,916 744,278 297,791
--------------- -------------- --------------- ---------------
COSTS AND EXPENSES :
Costs of sales - 9,661 86,849 56,344
Sales and marketing 6,459 2,970 7,705 9,770
Depreciation and amortization 59,946 - 71,443 -
General administration 22,537 44,013 125,763 86,237
Interest and others 34,578 184,101 34,578 186,283
--------------- -------------- --------------- ---------------
Total costs and expenses 123,520 240,745 326,338 338,634
--------------- -------------- --------------- ---------------
Income (loss) before minority interest and income 331,150 (215,829) 417,940 (40,843)
taxes
Minority interest 47,787 87,714 71,707 20,745
--------------- -------------- --------------- ---------------
Income(loss) before income taxes 283,363 (128,115) 346,233 (20,098)
Income taxes - - - -
--------------- -------------- --------------- ---------------
Net income (loss) before comprehensive income (loss) 283,363 (128,115) 346,233 (20,098)
Comprehensive income - translation adjustment - (5,692) 10,428 (893)
--------------- -------------- --------------- ---------------
Net Income 283,363 (133,807) 356,661 (20,991)
--------------- -------------- --------------- ---------------
Net income (loss) per share - Basic $ * $ (.02) $ .01 $ *
--------------- -------------- --------------- ---------------
--------------- -------------- --------------- ---------------
Average number of common shares outstanding 94,990,999 7,290,999 51,490,999 7,244,666
--------------- -------------- --------------- ---------------
--------------- -------------- --------------- ---------------
</TABLE>
* Less than $0.01 per share
See accompanying notes to condensed consolidated financial statements
4
<PAGE>
KALAN GOLD CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1999 June 30, 1998
---------------- -----------------
<S> <C> <C>
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by (used in) operating activities $ (58,649) $ (133,533)
---------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of assets - (132,694)
Proceeds from sale of assets 79,881 -
Proceeds from sale of investment - 34,737
---------------- -----------------
Net cash provided by investing activities 79,881 (97,957)
---------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES
(Payments) / Proceeds from advances from directors (7,183) 257,845
Payment to hire purchase payable (10,399) (27,133)
---------------- -----------------
Net cash provided by (used in) financing activities (3,216) 230,712
---------------- -----------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,650 (778)
Cash, beginning of period 337 112
---------------- -----------------
Cash, end of period $ 3,987 $ (666)
---------------- -----------------
---------------- -----------------
</TABLE>
See accompanying notes to condensed consolidated financial statements
5
<PAGE>
KALAN GOLD CORPORATION
NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENT
JUNE 30, 1999
(UNAUDITED)
BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statement includes
the accounts of Animated Electronic Industries Sdn. Bhd. ("AEI"), and its 60%
owned subsidiary, Perwimas Telecommunications Sdn. Bhd. ("PTSB"). All
significant intercompany accounts and transactions have been eliminated in
consolidation. As a result of the reverse acquisition of Kalan Gold
Corporation (the "Registrant") by AEI, AEI became a wholly owned subsidiary
of the Registrant. This acquisition has been treated as a recapitalization of
AEI with AEI as the acquiror (reverse acquisition). The consolidated
condensed financial statements are the financial statements of AEI.
The unaudited condensed consolidated financial statements presented herein
have been prepared in accordance with the instructions to Form 10-QSB and do
not include all the information and note disclosures required by generally
accepted accounting principles for complete financial statements. The interim
condensed consolidated financial statements should be read in conjunction
with the Consolidated Financial Statements and Notes thereto for the year
ended December 31, 1998, included in the Company's Form 8-K filed with the
Securities and Exchange Commission on July 2, 1999.
In the opinion of management, all adjustments (consisting only of normal
recurring adjustments) which are necessary to provide a fair presentation of
operating results for the interim period presented have been made. The
results of operations for the interim periods presented are not necessarily
indicative of the results to be expected for the entire year.
The financial statement has been prepared on the basis that the Registrant is
a going concern. Financial data presented herein are unaudited, pursuant to
the rules and regulations of the Securities and Exchange Commission.
ACQUISITION
On April 20, 1999, the Registrant acquired 100% of the issued and outstanding
capital stock of AEI, a private Malaysian Company, in exchange for 87,000,000
shares of the Registrant's common stock. Concurrent with the acquisition of
AEI, the Registrant has commenced operations in providing multimedia
communication services and Registrant is no longer in the development stage.
TRANSLATION OF CURRENCIES
The following exchange rates of Ringgit Malaysia (RM) into U.S. Dollars (USD)
were used in preparing the financial statements.
<TABLE>
<S> <C> <C> <C>
January 1, 1998 3.880 March 31, 1999 3.800
June 30, 1998 3.800 June 30, 1999 3.800
</TABLE>
6
<PAGE>
REVENUE RECOGNITION
Revenue represents the net invoiced value of goods sold or services provided,
production of multimedia programs, Intranet services, consultancy fees, and
other income earned. The Registrant recognizes revenue in the period the
services are provided or earned by the Registrant.
RELATED PARTY TRANSACTIONS
As of June 30, 1999, the Registrant owed a Director $553,269 for short-term
cash advances made to the subsidiary of the Registrant for working capital
purposes. The total $553,269 owing to a director is unsecured, with interest
accruing at a rate of 12.50% per annum and has no fixed terms of repayment
and is recorded in the financial statements as "due to directors". As of June
30, 1999, related accrued interest on the advances made by the Director
totaled $34,578 and is recorded in the financial statements as accrued
interest.
INVENTORIES
Inventories consisting primarily of telecommunication equipment and spare
parts are valued at the lower of cost or market value. In general, cost is
determined on a first-in first-out basis.
INCOME TAX
No income tax provision was made for all the periods as the Registrant
incurred a loss for the six month period ended June 30, 1998. For the six
month period ended June 30, 1999, no provision of income tax was made on any
profits earned, following a tax exemption order granted by the Government of
Malaysia to all individual and corporate taxpayers for the entire fiscal year
1999.
EARNINGS PER SHARE
Net income per share is computed by dividing net income available to common
shareholders for the period by the weighted average number of shares of
common stock outstanding for the period.
SUBSEQUENT EVENT
Following the reverse acquisition of the Registrant by AEI on April 20, 1999
the Registrant is no longer a development stage company.
The Registrant has on July 1, 1999 relocated its principal executive office
from Englewood, Colorado in the United States to Selangor, Malaysia and
terminated the rental of office space at Tower II, Suite 100, 12835 E.
Arapahoe Road, Englewood on the same date.
Mr. Sanford Altberger, the former principal shareholder and President of the
Registrant, resigned as a Director of the Registrant on July 27, 1999. On the
same date, Mr. Michael Raisch also resigned from his positions as a Director
and Treasurer of the Registrant. Registrant expects to appoint individuals to
fill these vacancies prior to the end of the next fiscal quarter.
PART I. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
THE FOLLOWING ANALYSIS OF THE OPERATIONS AND FINANCIAL CONDITION OF THE
REGISTRANT SHOULD BE READ IN CONJUNCTION WITH THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS, INCLUDING THE NOTES THERETO, OF THE REGISTRANT
CONTAINED ELSEWHERE IN THIS FORM 10-QSB.
7
<PAGE>
OVERVIEW
Kalan Gold Corporation (the "Registrant") is a Colorado corporation. The
Registrant was originally incorporated under the laws of the State of
Colorado on September 19, 1985 as a gas exploration company under the name
Knight Natural Gas Inc. On January 1, 1993, the Registrant entered into a
development stage. The Registrant had no operations and generated no revenue
from 1989 until April 1999.
On April 20, 1999 the Registrant acquired all the capital stock of Animated
Electronic Industries Sdn. Bhd., a Malaysian corporation ("AEI"). The
Registrant issued a total of 87,000,000 shares to the shareholders of AEI in
connection with the transaction.
The principal business address of the Registrant is No. 60A, Jalan 19/3,
46300 Petaling Jaya, Selangor, Malaysia.
The Registrant is involved in the provision of multimedia communications
services and has been focusing primarily on the production of interactive
multimedia content through its wholly-owned subsidiary, AEI, for its existing
customers consisting of business corporations operating their own Local Area
Networks (LANs) or Wide Area Networks (WANs). Such multimedia content are
also proposed to be marketed and delivered to the mass market via the
wireless terrestrial broadband network which is in the process of being
installed by the Registrant. The Registrant intends to launch the network's
test cell in the fourth quarter of 1999.
A 60% owned subsidiary of AEI, Perwimas Telecommunications Sdn Bhd ("PTSB"),
was granted an exclusive license in June 1997 from the Ministry of Energy
Communications & Multimedia of Malaysia to establish and operate a Internet
Protocol (IP) based, terrestrial wireless broadband transmission network
throughout Malaysia. The wireless broadband service, which will be operating
under the trade name, VISIONET, is expected to be officially launched in the
first quarter of year 2000. The Registrant's license permits the Company to
offer the following services: (i) high speed Internet access at a minimum
speed of 4Mbps, (ii) interactive distance learning (iii) live news coverage
(iv) emergency field services, (v) remote video surveillance for security;
and traffic management and control, (vi) on-site progress monitoring; and
(vii) energy conservation and building management such as home automation and
control.
The Registrant's revenue for the second quarter of 1999 was derived from (i)
production of interactive multimedia programs (ii) design, development and
maintenance of interactive multimedia websites, (iii) network engineering
consultancy services; and (iv) project management consultancy.
The Registrant's current business plan is to devote its resources to the
expansion of the Registrant's existing business and the proposed launch of
VISIONET's test cell in the fourth quarter of 1999 to be followed by a full
scale implementation of multiple cells in the first quarter of 2000 in the
Central Region of West Malaysia.
COMPARISON OF THE THREE MONTH PERIOD ENDED JUNE 30, 1999 TO THE THREE MONTH
PERIOD ENDED JUNE 30, 1998
Total Sales Revenue
- -------------------
Sales revenue was $454,670 for the three month period ended June 30, 1999
(the "1999 Second Quarter") compared to $14,389 for the three month period
ended June 30, 1998 (the "1998 Second Quarter"). The increase in revenue in
the 1999 Second Quarter as compared to the 1998 Second Quarter was primarily
due to income generated through the production of multimedia programs; design
and consulting services for website development and network engineering
services; and consultancy fees for project management services. No
8
<PAGE>
customer accounted for more than 10% of total revenues during the 1999 Second
Quarter and 1998 Second Quarter.
Cost of Sales
- -------------
No cost of sale was recorded in the 1999 Second Quarter compared to $9,661 in
the 1998 Second Quarter as the Registrant was performing on contracts which
were entered into in the first quarter of 1999.
Total Operating Expenses
- ------------------------
Total operating expenses were $123,520 for the 1999 Second Quarter compared
to $231,084 in the 1998 Second Quarter. The decrease was primarily
attributable to a decrease in general administration expenses from $44,013 in
the 1998 Second Quarter to $22,537 in the 1999 Second Quarter and other
miscellaneous expenses from $184,101 in the 1998 Second Quarter to $34,578 in
the 1999 Second Quarter. Operating expenses for the 1999 Second Quarter
consists of sales and marketing expenses totaling $6,459, general
administration expenses totaling $22,537, depreciation and amortization
amounting to $59,946 and interest totaling $34,578. Operating expenses for
the 1998 Second Quarter consists of sales and marketing expenses totaling
$2,970 general administration expenses totaling $44,013 and miscellaneous
expenses totaling $184,101.
Interest Expense
- ----------------
Interest expense of $34,578 was recorded during the 1999 Second Quarter. This
amount is due to a shareholder, director and officer of the Registrant for
advances totalling $553,269 at an interest rate of 12.5% per annum extended
to the Registrant. No interest expense was recorded for the 1998 Second
Quarter.
Net Income (Loss)
- -----------------
The Group recorded net income of $283,363 for the 1999 Second Quarter
compared to a net loss of $128,115 for the 1998 Second Quarter. The increase
in net income was primarily attributable to an increase in revenue and
reduction in overhead costs for the 1999 Second Quarter.
COMPARISON OF THE SIX MONTHS PERIOD ENDED JUNE 30, 1999 TO THE SIX MONTHS
PERIOD ENDED JUNE 30, 1998
Total Sales Revenue
- -------------------
Sales revenue increased from $183,422 for the six month period ended June 30,
1998 (the "1998 Period") to $702,756 for the six month period ended June 30,
1999 (the "1999 Period"), an increase of 283.14%. This increase was
attributable to income generated through the production of multimedia
programs; design and consulting services for website development and network
engineering services; and consultancy fees for project management services.
9
<PAGE>
Cost of Sales
- -------------
Cost of sales increased from $56,344 in the 1998 Period to $86,849 in the
1999 Period, an increase of 54.14%. The increase in cost of sales was
primarily due to an increase in cost of producing multimedia programs in the
1999 Period.
Total Operating Expenses
- ------------------------
Total operating expenses decreased 15.16% from $282,290 in the 1998 Period to
$239,489 in the 1999 Period. The decrease was primarily attributable to
measures taken by the Registrant to reduce its overhead expenditure.
Interest Expense
- ----------------
Interest expenses increased from $2,522 in the 1998 Period to $34,578 in the
1999 Period. The increase was due to additional advances extended to the
Registrant by a shareholder, director and officer of the Registrant.
Net Income (Loss)
- -----------------
The Group recorded net income of $346,233 for the 1999 Period compared to a
net loss of $20,098 for the 1998 Period. The increase in net income was
primarily attributable to an increase in revenue in the 1999 Second Quarter.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1999, the Registrant had cash and cash equivalents of $3,987
and working capital of $2,071,602. All operations were funded from internally
generated funds and working capital advanced by the principal shareholder,
director and officer of the Registrant.
For the six months ended June 30, 1999 cash used in operating activities of
$58,649 was mainly due to the net increase in account receivables of
$676,289. Other accounts receivable amounting to $2,303,390 as at June 30,
1999 relates to sales proceeds arising from the disposal of investments and
fixed assets. The entire amount of $2,303,390 is expected to be realized
before the end of the current fiscal year.
Cash received from investing activities was $79,881. This was primarily
attributable to the disposal of assets of the Registrant.
On April 21, 1999, the Registrant entered into an agreement with Gilt
Guaranty Trust Ltd. of London, UK for a private placement of the Registrant's
securities which transaction was subsequently abandoned.
The Registrant's working capital requirements for the remainder of 1999 will
be funded through internally generated funds. The Registrant expects to make
capital expenditures ranging from $10.0 million to $15.0 million during 2000
in connection with the official launch and build-out of VISIONET. The
Registrant intends to finance all or a portion of such capital expenditures
with additional debt or equity financing. There is, however, no assurance
that financing will be available or, if available, that it would be offered
to the Registrant on acceptable terms.
The Registrant will continuously evaluate financing available to it and may
decide to consider various modes of debt and/or equity financing.
10
<PAGE>
YEAR 2000 COMPLIANCE
The Year 2000 issue (Y2K) is the result of computer programs written using
two digits rather than four digit to define the applicable year. Any of the
Company's computer and telecommunications programs that have date sensitive
software may recognize a date using "00" as the year 1900 instead of 2000.
This could result in system failure or miscalculations causing disruptions in
operations, including the ability to process transactions, send invoices or
engage in similar normal business activities.
The Registrant, with the help of outside specialists and consultants, has (i)
completed its assessment of potential Y2K issues in its non-information
systems (eg. its multimedia content production and communications system), as
well as in those information systems that were not replaced by the new
enterprise wide system, and (ii) substantially completed the remediation and
testing of all systems. The Registrant has contingency plans for certain
applications in the event the Y2K readiness is delayed and is currently
developing contingency plans for certain other applications. The Registrant
also intends to continue testing and re-testing during the remainder of 1999.
The Registrant's evaluation of potential Y2K exposure related to key
suppliers and customers is also in process and will continue throughout 1999.
In this regard, the Registrant is considering a temporary shutdown of certain
sensitive multimedia production operations for a few days around the turn of
the millennium as an additional safeguard against the unexpected loss of
utilities service. The Registrant expects to schedule production to provide
for such temporary shutdowns.
Although the Registrant believes its key information and non-information
systems will be Y2K ready before the end of 1999, it cannot predict whether
it will find additional problems that would result in unplanned upgrades of
applications during the rest of 1999 or even after December 1999. As a result
of these uncertainties, the Registrant cannot predict the impact on its
financial condition, results of operations or cash flows resulting from Y2K
failures in systems that the Registrant directly or indirectly relies upon.
Should the Registrant's Y2K readiness plans not be successful or be delayed
beyond December 1999, the consequences to the Registrant could be far
reaching and material, including an inability to produce multimedia programs
and provide a continuous transmission service to VISIONET's subscribers,
which could lead to an indeterminate amount of lost revenue.
Although not anticipated, the most reasonably likely worst case scenario of
failure by the Registrant or its equipment suppliers or subscribers to become
Y2K ready would be a short-term slowdown or cessation of production of
multimedia programs and transmission service to subcribers in a timely manner.
SAFE HARBOR STATEMENT
This Form 10-QSB and other reports filed by the Registrant from time to time
with the Securities and Exchange Commission, as well as the Registrant's
press releases, contain or may contain forward-looking statements and
information that are based upon beliefs of, and information currently
available to, the Registrant's management, as well as estimates and
assumptions made by the Registrant's management. Forward-looking statements
can be identified by the use of forward-looking terminology such as
"believes", "may", "should", "anticipates", "estimates", "expects", "future",
"intends", "plans" or the negative thereof. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors that could
cause actual results of the Registrant to vary materially from historical
results or from any future results expressed or implied in such
forward-looking statements.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
No legal proceedings of a material nature to which the
Registrant is a party were pending during the reporting period, and
the Registrant knows of no legal proceedings of a material nature
pending or threatened or judgments entered against any director or
officer of the Registrant in his or her capacity as such.
11
<PAGE>
ITEM 2. CHANGES IN SECURITIES
On April 20, 1999 the Registrant issued an aggregate of
87,000,000 shares of its common stock to stockholders of Animated
Electronic Industries Sdn Bhd, a Malaysian corporation ("AEI"), in
exchange for all the issued and outstanding capital stock of AEI.
The shares were issued in reliance on the exemption from
registration under Section 4(2) of the Securities Act of 1933, as
amended. Appropriate legends were affixed to the share certificates
and all of the recipients had access to information regarding the
Registrant.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K:
(i) On April 7, 1999 the Registrant filed a report on Form
8-K pursuant to item 4 reporting the rescission of previous
acquisition of four properties located in Burkina Faso, West
Africa and cancellation of 1,300,000 restricted common
shares of the Registrant issued by the Registrant for the
acquisition of the said properties.
(ii) On April 21, 1999 the Registrant filed a report on Form 8-K
pursuant to item 1 reporting the acquisition of all of the
common stock of Animated Electronic Industries Sdn Bhd, a
Malaysian corporation, related change in control of the
Registrant, change in directors and execution of an
Agreement with Gilt Guaranty Trust Ltd. of London, England
for a private placement of $20 million US of the
Registrant's securities.
(iii) On May 14, 1999 the Registrant filed a report on Form 8-K
pursuant to item 1 reporting that the Registrant has signed
a revised agreement with Gilt Guaranty Trust Ltd., of
London, England for a private placement of not less than $50
million US of the Registrant's securities with a combination
of common stock and convertible bonds at a face value to be
determined.
(iv) On July 2, 1999 the Registrant filed a report on Form 8-K/A
pursuant to item 7 containing the financial statements
required in connection with the acquisition described in
item (ii) above.
12
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities and Exchange Act of
1934, the Registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KALAN GOLD CORPORATION
(Registrant)
DATE: August 23, 1999 BY : /s/ Patrick Soon-Hock Lim
-----------------------------------
Patrick Soon-Hock Lim
President, Chief Executive Officer
and interim Chief Financial Officer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM KALAN GOLD
CORP. UNAUDITED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 1999 AND THE RELATED
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS THEN ENDED
AND IS QUALIFIED IN ITS ENTIRETY BE REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 3,987
<SECURITIES> 0
<RECEIVABLES> 2,979,679
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,990,416
<PP&E> 942,491
<DEPRECIATION> 389,865
<TOTAL-ASSETS> 4,088,876
<CURRENT-LIABILITIES> 918,814
<BONDS> 0
0
0
<COMMON> 950
<OTHER-SE> 2,356,317
<TOTAL-LIABILITY-AND-EQUITY> 4,088,876
<SALES> 702,756
<TOTAL-REVENUES> 744,278
<CGS> 0
<TOTAL-COSTS> 291,760
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 34,578
<INCOME-PRETAX> 346,233
<INCOME-TAX> 0
<INCOME-CONTINUING> 346,233
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 346,233
<EPS-BASIC> .01
<EPS-DILUTED> .01
</TABLE>
