UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
[ ] 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. 33-55254-42
QUANTITATIVE METHODS CORPORATION
(Exact name of Registrant as specified in its charter)
NEVADA 87-0485310
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
3098 SO. HIGHLAND DRIVE, SUITE 460
SALT LAKE CITY, UTAH 84106
(Address of principal executive offices) (Zip Code)
|
Registrant's telephone number, including area code (801) 485-7775
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 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. [X] Yes [ ] No
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
Class Outstanding as of August, 1996
- - ------------------------------------ -------------------------------
$.001 PAR VALUE CLASS A COMMON STOCK 1,150,000 SHARES
|
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
BASIS OF REPRESENTATION
General
The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations, cash flows and stockholders' equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature. Operating results for the quarter ended June 30, 1996, are not necessarily indicative of the results that can be expected for the year ending December 31, 1996.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Current assets at June 30, 1996 were $75,000 as compared to net current assets at June 30, 1995 of $0.00. The increase in current assets was due to an increase in cash of $75,000 from the sale of 150,000 shares of the Company's common stock at $.50 per share.
The Company has not received any income nor incurred any expenses as of the quarter ended June 30, 1996, and has limited operational history. Since the acquisition of the cash, the Company has entered into the business of marketing and promoting products and services of companies specializing in new patent technologies. The Company has entered into discussions and negotiations with various parties to acquire and promote new patent technologies; however, the Company has not concluded any transactions, entered into any agreements, letters of intent, or any other arrangements with respect to any change in control or status of the Company. All risks inherent in new and inexperienced enterprises are inherent in the Company's business. The Company has not made a formal study of the economic potential of this venture.
The Company will continue to expand through its proposed business operations and through acquisitions and will be extremely limited in its attempts to locate potential business situations for investigation. However, the Company's officers, directors and major shareholder believe that the present amount of capital contributed recently is sufficient to enable it to satisfy its reporting and other obligations as a public company for the foreseeable future. The Company plans to continue on a limited basis, the process of investigating possible merger and acquisition candidates, and believes that the Company's status as a publicly-held corporation will enhance its ability to locate such potential business ventures.
Management anticipates that due to the limited amount of its resources, the Company may be restricted to participation in only one potential business venture. This lack of diversification should be considered a substantial risk because it will not permit the Company to offset potential losses from one venture against gains from another.
QUANTITATIVE METHODS CORPORATION
(A Development Stage Company)
BALANCE SHEETS
6/30/96 12/31/95
Unaudited Audited
----------- -----------
ASSETS
CURRENT ASSETS
Cash in bank $ 75,000 $ 75,000
----------- -----------
TOTAL CURRENT ASSETS 75,000 75,000
----------- -----------
$ 75,000 $ 75,000
=========== ===========
LIABILITIES & EQUITY
CURRENT LIABILITIES
Accounts payable $ - 0 - $ - 0 -
----------- -----------
TOTAL CURRENT LIABILITIES - 0 - - 0 -
STOCKHOLDERS' EQUITY Common Stock $.001 par value:
Authorized - 25,000,000 shares
Issued and outstanding
1,150,000 shares 1,150 1,150
Additional paid-in capital 74,850 74,850
Deficit accumulated during
the development stage (1,000) (1,000)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 75,000 75,000
----------- -----------
$ 75,000 $ 75,000
=========== ===========
|
QUANTITATIVE METHODS CORPORATION
(A Development Stage Company)
STATEMENTS OF OPERATIONS
7/26/90
For the three months For the six months (Date of
ended June 30, ended June 30 inception) to
1996 1995 1996 1995 6/30/96
Unaudited Unaudited Unaudited Unaudited Unaudited
------------ ------------ ------------- ------------ ------------
Net sales $ -0- $ -0- $ -0- $ -0- $ -0-
Cost of sales -0- -0- -0- -0- -0-
------------ ------------ ------------- ------------ ------------
GROSS PROFIT (LOSS) -0- -0- -0- -0- -0-
General and
administrative expenses -0- -0- -0- -0- 1,000
------------ ------------ ------------- ------------ ------------
NET INCOME (LOSS) $ -0- $ -0- $ -0- $ -0- $ (1,000)
============ ============= ============= ============ ============
Net income (loss) per weighted
average common shares $ .00 $ .00 $ .00 $ .00
============ ============= ============= ============
Weighted average number of
common shares used to compute
net income (loss) 1,150,000 1,000,000 1,150,000 1,000,000
============ ============ ============= ============
|
QUANTITATIVE METHODS CORPORATION
(A Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Deficit
Accumulated
Common Stock Additional During
Par Value $.001 Paid-in Development
Shares Amount Capital Stage
---------- ---------- ----------- -----------
Balances at 7/26/90
(Date of inception) -0- $ -0- $ -0- $ -0-
Issuance of common stock (restricted)
at $.002 per share at 7/26/90 1,000,000 1,000 1,000 -0-
Net loss for period (1,000)
--------- --------- ---------- -----------
Balances at 12/31/90 1,000,000 1,000 1,000 (1,000)
Net loss for year -0-
--------- --------- ---------- -----------
Balances at 12/31/91 1,000,000 1,000 1,000 (1,000)
Net loss for year -0-
--------- --------- ---------- -----------
Balances at 12/31/92 1,000,000 1,000 1,000 (1,000)
Net loss for year -0-
--------- --------- ---------- -----------
Balances at 12/31/93 1,000,000 1,000 1,000 (1,000)
Net loss for year -0-
--------- --------- ---------- -----------
Balances at 12/31/94 1,000,000 1,000 1,000 (1,000)
Issuance of common stock (restricted)
at $.50 per share at 11/17/95 150,000 150 74,850
Net income for year -0-
--------- --------- ---------- -----------
Balances at 12/31/95 1,150,000 1,150 74,850 (1,000)
Net income for period -0-
--------- --------- ---------- -----------
Balances at 6/30/96 1,150,000 $ 1,150 $ 74,850 $ (1,000)
========= ========= ========== ===========
|
QUANTITATIVE METHODS CORPORATION
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
7/26/90
For the six months (Date of
ended June 30, inception) to
1996 1995 6/30/96
Unaudited Unaudited Unaudited
------------- ------------- -------------
OPERATING ACTIVITIES
Net income (loss) $ -0- $ -0- $ (1,000)
Adjustments to reconcile
net income (loss) to cash
used by operating activities:
Amortization -0- -0- -0-
------------- ------------- -------------
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES -0- -0- (1,000)
INVESTING ACTIVITIES
Organization Costs -0- -0- -0-
------------- ------------- -------------
NET CASH USED BY
INVESTING ACTIVITIES -0- -0- -0-
FINANCING ACTIVITIES
Proceeds from sale of
common stock -0- -0- 76,000
------------- ------------- -------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES -0- -0- 76,000
------------- ------------- -------------
INCREASE IN CASH
AND CASH EQUIVALENTS -0- -0- 75,000
Cash and cash equivalents
at beginning of year 75,000 -0- -0-
------------- ------------- -------------
CASH & CASH EQUIVALENTS
AT END OF PERIOD $ 75,000 $ -0- $ 75,000
============= ============= =============
|
QUANTITATIVE METHODS CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
Accounting Methods
The Company recognizes income and expenses based on the accrual method
of accounting.
Dividend Policy:
The Company has not yet adopted any policy regarding payment of
dividends.
Income Taxes:
The Company records the income tax effect of transactions in the same
year that the transactions enter into the determination of income,
regardless of when the transactions are recognized for tax purposes. Tax
credits are recorded in the year realized. Since the Company has not yet
realized income as of the date of this report, no provision for income
taxes has been made.
In February, 1992, the Financial Accounting Standards Board adopted Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes, which supersedes substantially all existing authoritative literature for accounting for income taxes and requires deferred tax balances to be adjusted to reflect the tax rates in effect when those amounts are expected to become payable or refundable. The Statement is required to be applied in the Company's financial statements for the fiscal year commencing January 1, 1993. The Company has elected to recognize the cumulative effect of the change in 1993. At December 31, 1995 a deferred tax asset has not been recorded due to the Company's lack of operations to provide income to use the net operating loss carryover of $2,000 which will expire December 31, 2006.
NOTE 2: DEVELOPMENT STAGE COMPANY
The Company was incorporated under the laws of the State of Nevada on
July 26, 1990 and has been in the development stage since incorporation.
NOTE 3: CAPITALIZATION
On the date of incorporation, the Company sold 1,000,000 shares of its
common stock to Capital General Corporation for $1,000 cash for an
average consideration of $.001 per share. On November 17, 1995, the
Company sold 150,000 shares of its common stock for $75,000 cash for an
average consideration of $.50 per share. The Company's authorized stock
includes 25,000,000 shares of common stock at $.001 par value.
NOTE 4: RELATED PARTY TRANSACTIONS
The Company neither owns or leases any real property. Office services
are provided, without charge, by Capital General Corporation. Such costs
are immaterial to the financial statements, and, accordingly, have not
been reflected therein. The officers and directors of the Company are
involved in other business activities and may, in the future, become
involved in other business opportunities. If a specific business
opportunity becomes available, such persons may face a conflict in
selecting between the Company and their other business interests. The
Company has not formulated a policy for the resolution of such
conflicts.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
QUANTITATIVE METHODS CORPORATION