FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 2001
Or
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period____________to_______________
Commission file number 0-27175
ADVANCE TECHNOLOGIES, INC.
(Exact name or registrant as specified in its charter)
Nevada 95-475536
(State or other jurisdiction (I.R.S. Employer
Incorporation or organization) Identification No.)
716 Yarmouth Rd Suite 215
Palos Verdes Estates, CA 90274
(Address of principal executive offices)
Registrant's telephone number, including area code: (310) 265-7776
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 that the registrant was Required to file
such reports), and (2) has shorter period been subject to Such filing
requirements for the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO ISSUES INVOLVED IN BANKRUPTCY.
Indicate by check whether the registrant has filed all documents And report
required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities Under a plan confirmed by a
court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
As of June 30, 2001, approximately 2,572,923 shares of the Registrant's Common
Stock, $0.001 par value were outstanding.
As of June 30, 2001, approximately 50,204,102 shares of the Registrant's Class A
Preferred Non-voting Stock par value $0.001 were outstanding.
ADVANCE TECHNOLOGIES, INC.
PART I. - FINANCIAL INFORMATION
PAGE
ITEM 1. FINANCIAL STATEMENTS
Consolidated Balance Sheets as of June 30, 2001
and December 31, 2000............................................... 4
Consolidated Statements of Operations for the three-month
and nine-month periods ended June 30, 2001 and 2000................. 5
Consolidated Statements of Cash Flows for the
six-month periods ended June 30, 2001 and 2000...................... 6
Notes to the Consolidated Financial Statements...................... 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS......... 8
PART II. - OTHER INFORMATION
ITEM 6. EXHIBITS............................................................ 8
SIGNATURES.................................................................. 9
2
ADVANCE TECHNOLOGIES, INC.
(A Development Stage Company)
Consolidated Financial Statements
June 30, 2001
Chisholm & Associates, CPA
PO Box 540216
North Salt Lake, UT 84054
Tel: (801) 292-8756
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ADVANCE TECHNOLOGIES, INC.
(a Development Stage Company)
Consolidated Balance Sheets
ASSETS
June 30, December 31,
2001 2000
-------- ------------
(Unaudited)
Current Assets
Cash and Cash Equivalents $ 54 $ 1,646
Prepaid License 12,500 12,500
-------- --------
Total Current Assets 12,554 14,146
-------- --------
Property & Equipment, Net 26,835 23,835
-------- --------
Total Assets $ 39,389 $ 37,981
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ - $ 27,291
Accrued Expenses - 9,816
Note Payable - Officer 39,500 49,500
Advance Royalties 25,000 25,000
-------- --------
Total Current Liabilities 64,500 111,607
-------- --------
Long Term Liabilities
Line of Credit 90,765 79,500
Notes Payable - Joint Venture 98,000 -
-------- --------
Total Long Term Liabilities 188,765 79,500
-------- --------
Total Liabilities 253,265 191,107
-------- --------
Stockholders' Equity
Common Stock, Authorized 100,000,000
Shares of $.001 Par Value,
Issued and Outstanding 2,572,923 shares 2,573 2,573
Preferred Stock, Series A Authorized 100,000,000
Shares of $.001 Par Value,
Issued and Outstanding 50,204,102 Shares 50,204 50,204
Additional Paid in Capital 446,946 446,496
Deficit Accumulated During the Development Stage (713,149) (652,399)
-------- --------
Total Stockholders' Equity (213,426) (153,126)
-------- --------
Total Liabilities and Stockholders' Equity $ 39,839 $ 37,981
======== ========
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ADVANCE TECHNOLOGIES, INC.
(a Development Stage Company)
Consolidated Statements of Operations
(Unaudited)
For the three For the three For the nine For the nine
months ended months ended months ended months ended
June 30, June 30, June 30, June 30,
2001 2000 2001 2000
------------------- ------------------- ------------------- -------------------
Revenues $ - $ - $ 3,000 $ -
Operating Expenses
General & Administrative 4,420 21,648 63,750 21,896
------------------- ------------------- ------------------- -------------------
Total Expenses 4,420 21,648 63,750 21,896
------------------- ------------------- ------------------- -------------------
Net Income (Loss) $ (4,420) $ (21,648) $ (60,750) $ (21,896)
=================== =================== =================== ===================
Net Income (Loss) Per Share $ (0.00) $ (0.01) $ (0.02) $ (0.01)
=================== =================== =================== ===================
Weighted Average Shares Outstanding 2,572,923 2,572,923 2,572,923 2,572,923
=================== =================== =================== ===================
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ADVANCE TECHNOLOGIES, INC.
(a Development Stage Company)
Consolidated Statements of Cash Flows
(Unaudited)
For the six months ended
June 30,
------------------------
2001 2000
------------------------
Cash Flows from Operating Activities
Net Income (Loss) $(60,750) $(21,894)
Adjustments to Reconcile Net Loss to Net Cash
Provided by Operations:
Depreciation & Amortization 7,000 -
Change in Assets and Liabilities
Decrease in Accounts Payable
and Accrued Expenses (37,107) (1,218)
-------- ---------
Net Cash Provided(Used) by Operating Activities (90,857) (23,112)
-------- ---------
Cash Flows from Investing Activities
Purchase of Patent Rights - (11,250)
Purchase of Equipment (10,000) -
-------- ---------
Net Cash Provided (Used) by Investing Activities (10,000) (11,250)
-------- ---------
Cash Flows from Financing Activities
Proceeds from Line of Credit 11,265 -
Proceeds from Joint Venture 98,000 -
Payments to Officer for Notes Payable (10,000) -
Proceeds from Shareholders - 56,500
-------- ---------
Net Cash Provided(Used) by Financing Activities 99,265 56,500
-------- ---------
Increase (Decrease) in Cash (1,592) 22,138
-------- ---------
Cash and Cash Equivalents at Beginning of Period 1,646 555
-------- ---------
Cash and Cash Equivalents at End of Period
$ 54 $ 22,693
======== =========
Cash Paid For:
Interest $ - $ -
======== =========
Income Taxes $ - $ -
======== =========
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ADVANCE TECHNOLOGIES, INC.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
June 30, 2001
GENERAL
Advance Technologies, Inc.(the Company) has elected to omit substantially all
footnotes to the financial statements for the nine months ended June 30, 2001
since there have been no material changes (other than indicated in other
footnotes) to the information previously reported by the Company in their Annual
Report filed on Form 10-KSB for the fiscal year ended September 30, 2000.
UNAUDITED INFORMATION
The information furnished herein was taken from the books and records of the
Company without audit. However, such information reflects all adjustments which
are, in the opinion of management, necessary to properly reflect the results of
the interim period presented. The information presented is not necessarily
indicative of the results from operations expected for the full fiscal year.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS
MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS
Plan of Operation
Our plan of operation has been strongly affected by delays in the Certification
of the Enhanced Vision System by the Federal Aviation Administration. The final
flight tests are scheduled to be complete by August 2001. The granting of the
Supplemental Type Certification will allow our EVS to start production with
initial sales in 2001.
By January 2002, we shall have sufficient visibility on sales in 2002 and beyond
to make reasonable projections of our anticipated royalties from these sales.
Positive cash flow should be achieved by 3rd quarter of 2002.
The certification delays have put us three years behind our original schedule.
These delays have forced us to use a line of credit to meet operational
expenditures as well as delaying other new product ventures.
Our current line of credit is adequate for our projected operating costs. We
continue to explore other avenues of Capital infusion, but the requirement for
these funds is tied to discretionary expenditures on new product and new
markets.
The new products and markets we have been exploring are all in Infrared Camera
applications for specific applications. These applications are: Recreational
Vehicle Systems, Security Systems, and Medical System Applications.
We have engaged in a strategic partnership arrangement with Telesis Technologies
Inc., a Taiwanese private corporation. Our talents appear to be complementary,
and we are exploring many opportunities to expand our joint participation.
Currently, our partnership is limited to the Recreational Vehicle System
venture.
PART II. - OTHER INFORMATION
ITEM 6. EXHIBITS
None
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SIGNATURES
Pursuant to the requirement 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.
Date: August 9, 2001 ADVANCE TECHNOLOGIES, INC.
(Registrant)
By: /s/ GARY E. BALL
--------------------------
Gary E. Ball
President and Director
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