U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2002
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File No. 2-76219-NY
New Environmental Technologies Corporation
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(Name of Small Business Issuer in its Charter)
NEVADA 11-2609717
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(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
9005 Cobble Canyon Lane
Sandy, Utah 84093
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(Address of Principal Executive Offices)
Issuer's Telephone Number: (801) 942-0555
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 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.
(1) Yes X No (2) Yes X No
--- --- --- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date:
March 33, 2002
2,620,326
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
The Financial Statements of the Registrant required to be filed with
this 10-QSB Quarterly Report were prepared by management, and commence on the
following page, together with Related Notes. In the opinion of management,
the Financial Statements fairly present the financial condition of the
Registrant.
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
FINANCIAL STATEMENTS
March 31, 2002 and December 31, 2001
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Balance Sheets
ASSETS
March 31, December 31,
2002 2001
(Unaudited)
CURRENT ASSETS
Cash $ - $ -
--------- ------------
TOTAL ASSETS $ - $ -
========= ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 36,176 $ 34,591
Accounts payable - related party 21,040 18,992
Accrued interest payable - related party 2,708 2,308
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Total Liabilities 59,924 55,891
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STOCKHOLDERS' EQUITY (DEFICIT)
Common stock authorized 100,000,000 shares at
$0.001 par value; 2,620,326 and 2,620,326
shares issued and outstanding, respectively 2,620 2,620
Additional paid-in capital 150,692 150,692
Deficit accumulated during the development
stage (213,236) (209,203)
--------- ----------
Total Stockholders' Equity (Deficit) (59,924) (55,891)
--------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ - $ -
========= =========
The accompanying notes are an integral part of these financial statements.
2
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Operations
(Unaudited)
From
Inception on
For the January 7,
Three Months Ended 1982 Through
March 31, March 31,
2002 2001 2002
REVENUES $ - $ - $ -
EXPENSES 4,033 8,231 213,236
-------- --------- ---------
NET LOSS $ (4,033) $ (8,231) $(213,236)
======== ========= =========
BASIC NET LOSS PER SHARE OF
COMMON STOCK $ (0.00) $ (0.00)
======== =========
BASIC WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 2,620,326 2,620,326
========= =========
The accompanying notes are an integral part of these financial statements.
3
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
Balance, January 7, 1982 - $ - $ - $ -
Common stock issued for cash
at $7.50 per share 6,000 6 45,000 -
Common stock issued for cash
at $0.39 per share 168,503 169 65,819 -
Net loss from inception on
January 7, 1982 through
December 31, 1982 - - - (39,597)
Balance, December 31, 1982 174,503 175 110,819 (39,597)
Net loss for the year ended
December 31, 1983 - - - (71,397)
Balance, December 31, 1983 174,503 175 110,819 (110,994)
Common stock issued for cash
at $25.00 per share 57 - 1,425 -
Common stock issued for cash
at $25.00 per share 3 - 75 -
Common stock issued for cash
at $0.25 per share 1,580,000 1,580 38,373 -
Net loss for the year ended
December 31, 1984 - - - -
Balance, December 31, 1984 1,754,563 1,755 150,692 (110,994)
Retired common stock, (1,296,132) (1,297) - -
Net loss for the year ended
December 31, 1985 - - - -
Balance, December 31, 1985 458,431 458 150,692 (110,994)
Net loss for the year ended
December 31, 1986 - - - -
Balance, December 31, 1986 458,431 458 150,692 (110,994)
4
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
Balance, December 31, 1986 458,431 458 150,692 (110,994)
Net loss for the year ended
December 31, 1987 - - - -
Balance, December 31, 1987 458,431 458 150,692 (110,994)
Net loss for the year ended
December 31, 1988 - - - -
Balance, December 31, 1988 458,431 458 150,692 (110,994)
Net loss for the year ended
December 31, 1989 - - - -
Balance, December 31, 1989 458,431 458 150,692 (110,994)
Net loss for the year ended
December 31, 1990 - - - -
Balance, December 31, 1990 458,431 458 150,692 (110,994)
Net loss for the year ended
December 31, 1991 - - - -
Balance, December 31, 1991 458,431 458 150,692 (110,994)
Net loss for the year ended
December 31, 1992 - - - -
Balance, December 31, 1992 458,431 458 150,692 (110,994)
Net loss for the year ended
December 31, 1993 - - - -
Balance, December 31, 1993 458,431 458 150,692 (110,994)
Canceled common stock (316,000) (316) - -
Net loss for the year ended
December 31, 1994 - - - (6,656)
Balance, December 31, 1994 142,431 142 150,692 (117,650)
5
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
Balance, December 31, 1994 142,431 142 150,692 (117,650)
Common stock issued for
services at $0.001 per
share 160,000 160 - -
Common stock issued for
services at $0.001 per
share 2,197,895 2,198 - -
Net loss for the year ended
December 31, 1995 - - - (49,097)
Balance, December 31, 1995 2,500,326 2,500 150,692 (166,747)
Common stock issued for
services at $0.001 per
share 120,000 120 - -
Net loss for the year ended
December 31, 1996 - - - (1,681)
Balance, December 31, 1996 2,620,326 2,620 150,692 (168,428)
Net loss for the year ended
December 31, 1997 - - - (3,517)
Balance, December 31, 1997 2,620,326 2,620 150,692 (171,945)
Net loss for the year ended
December 31, 1998 - - - (2,479)
Balance, December 31, 1998 2,620,326 $ 2,620 $ 150,692 $(174,424)
Net loss for the year ended
December 31, 1999 - - - (6,307)
Balance, December 31, 1999 2,620,326 $ 2,620 $ 150,692 $(180,731)
Net loss for the year
ended December 31, 2000 - - - (9,011)
Balance,
December 31, 2000 2,620,326 $ 2,620 $ 150,692 $(189,742)
The accompanying notes are an integral part of these financial statements.
6
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
Balance, December 31, 2000 2,620,326 2,620 150,692 $(189,742)
Net loss for the year
ended December 31, 2002 - - - (19,461)
Balance, December 31, 2001 2,620,326 2,620 150,692 (209,203)
Net loss for the three
months ended March 31, 2002
(unaudited) - - - (4,033)
Balance, March 31, 2002
(unaudited) 2,620,326 $ 2,620 $ 150,692 $ 213,236
The accompanying notes are an integral part of these financial statements.
7
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
From
Inception on
For the January 7,
Three Months Ended 1982 Through
March 31, March 31,
2002 2001 2002
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $ (4,033) $ (8,230) $(213,236)
Adjustments to reconcile net loss to
net cash used by operating activities:
Stock issued for services - - 2,538
Increase (decrease) in accounts payable
and accounts payable - related party 4,033 8,220 59,925
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Net Cash Used by Operating
Activities - (10) (150,773)
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CASH FLOWS FROM INVESTING
ACTIVITIES: - - -
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Issuance of common stock for cash - - 150,773
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Net Cash Provided by Financing
Activities - - 150,773
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NET INCREASE (DECREASE)
IN CASH - (10) -
CASH AT BEGINNING OF PERIOD - 10 -
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CASH AT END OF PERIOD $ - $ - $ -
============ ========== =========
CASH PAID FOR:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
SCHEDULE OF NON CASH FINANCING
ACTIVITIES
Stock issued for services $ - $ - $ 2,538
The accompanying notes are an integral part of these financial statements.
8
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2002 and December 31, 2000
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the
Company without audit. In the opinion of management, all adjustments
(which include only normal recurring adjustments) necessary to
present fairly the financial position, results of operations and cash
flows at March 31, 2002 and 2001 and for all periods presented 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 condensed financial statements be read in
conjunction with the financial statements and notes thereto included
in the Company's December 31, 2001 audited financial statements. The
results of operations for periods ended March 31, 2002 and 2001 are
not necessarily indicative of the operating results for the full
years.
NOTE 2 - GOING CONCERN
The Company's financial statements are prepared using generally
accepted accounting principles applicable to a going concern which
contemplates the realization of assets and liquidation of liabilities
in the normal course of business. The Company has not yet
established an ongoing source of revenues sufficient to cover its
operating costs and allow it to continue as a going concern. The
ability of the Company to continue as a going concern is dependent on
the Company obtaining adequate capital to fund operating losses until
it becomes profitable. If the Company is unable to obtain adequate
capital, it could be forced to cease operations.
In order to continue as a going concern, develop a reliable source of
revenues, and achieve a profitable level of operations, the Company
will need, among other things, additional capital resources.
Management's plans to continue as a going concern include raising
additional capital through sales of common stock and to seek a merger
with an existing operating Company. However, management cannot
provide any assurances that the company will be successful in
accomplishing any of its plans.
The ability of the Company to continue as a going concern is
dependent upon its ability to successfully accomplish the plans
described in the preceding paragraph and eventually secure other
sources of financing and attain profitable operations. The
accompanying financial statements do not include any adjustments that
might be necessary if the Company is unable to continue as a going
concern.
9
Item 2. Management's Discussion and Analysis or Plan of Operation.
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Plan of Operation.
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The Company has not engaged in any material operations since the
calendar year ended December 31, 1985, or during the quarterly period ended
March 31, 2002.
The Company's plan of operation for the next 12 months is to:(i)
consider guidelines of industries in which the Company may have an interest;
(ii) adopt a business plan regarding engaging in business in any selected
industry; and (iii) to commence such operations through funding and/or the
acquisition of a "going concern" engaged in any industry selected.
During the next 12 months, the Company's only foreseeable cash
requirements will relate to maintaining the Company in good standing or the
payment of expenses associated with reviewing or investigating any potential
industries as a business venture, which the Company expects to pay from its
cash resources or loans from makers of management.
Results of Operations.
----------------------
During the quarterly period ended March 31, 2002, the Company
had no business operations. During this period, the Company received total
revenues of $0 and had a net loss of ($4,033), as compared to the quarterly
period ended March 31, 2001, when the Company received total revenues of
$0 and had a net loss of ($8,231).
Liquidity.
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At March 31, 2002, the Company had $0 in current assets, with
total current liabilities of $59,924. Total stockholders' equity was
($59,924).
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
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None; not applicable.
Item 2. Changes in Securities.
--------------------------------
None; not applicable.
Item 3. Defaults Upon Senior Securities.
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None; not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
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None; not applicable.
Item 5. Other Information.
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None; not applicable.
Item 6. Exhibits and Reports on Form 8-K.
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(a) Exhibits.
None.
(b) Reports on Form 8-K.
None.
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 there unto duly authorized.
New Environmental Technologies Corporation
Date: 5/8/02 By/s/David S. Merrell
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David C. Merrell
Director and President
Date: 5/8/02 By/S/Corie Merrell
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Corie Merrell
Secretary and Treasurer